In my view Owning a good piece of Business knowing that its value will grow over times even at fair price is a good investment.

Dear friend,

yap.

In my mind Now however is to have A good check list to Avoid catastrophic and Very expensive Mistake in future since you mentioned.

i think it is quite common among us. It can be either one of them:

1) Highly priced popular tech due to High growth expectation;
2) Long years of unabated profit and growth starts crumbling down;
3) Not understanding its Business Nature and Business Model Only knows the figures;
4) Chasing the price;

The above is Not the Mistakes If we manage the small losses. The above will Only become an expensive mistake if We don't admit our ignorance and double down and triple down on Our losses.

Am I right, my friend?

Well at the same time we are so good to invest in bad times and i always wait for the moments to double down and triple down. So what do we do Now?

It is the moments of truth of Break and Make. Let's see what we made of. Let's see if we can understand that moment and the moments.

Well, all and bsngpg

In our course of portfolio investment and building long term wealth, we will tumble along for sure. Along the way, we will weed and tender to our portfolio like a patient gardener and like a patient gardener, we will pull the weeds, apply fertilizer and wait patiently for fruits in years to come.

Surely we try to learn something out of Zhulian.

In hindsight we should learn more about its business model, without such knowledge, we cant say whether it is good price to invest even Now.

What happens to Zhulian will happen to any stocks that we hold. It wont be luck alone to invest or not at this price.

Dear bsngpg

I think it is time to let Zhulian go. If it is Only Zhulian, then you are making less mistakes than me, than Warren, than whoever is.

I think you are totally doing fine, good and fantastic. But most of the time we are too critical of ourselves instead of patting ourselves on the back. So what do we do? We change course and method all the time. End of the day we are not going anywhere again.

You are with me all the time in my every counter. If you are wrong then i am wrong also.

During Bull, stocks reach the Top at different time. If you are good then you can opt for Rotation and Re-Balancing every quarter.

During Bear, almost all reach Bottom at the same time.

share Outstanding 200 mil FCF 18 mil. Good Enough.

A bit speculative I think. Good Job anyway. Always wish Investors and company Good returns.

Thanks for sharing KC. Keep it up.

Good good. But is it a misconception that higher DY will sacrifice the growth? Or higher DY will Only means Good business Good ROE Good margin and strong cash flow and organic growth?

Well, you might be Right as well ya.

if you are looking for CAGR of 15% then i would suggest DY of 5% and Growth of 10%. If you are comfortable with its Business model, then study its pricing.

you have a good mind set to build wealth for next ten years so if you have a single doubt about a company then don't do it. If not you are wasting your next ten years.

You must have total confidence in this company for the next ten years ya and keep investing in it for next ten years ya.

I always admire KC. Honest and truthful. This writing is quite relax and enjoyable. TQ

With due respect and knowing that KC skill is few level above, i cant say i agree on punting as this is one thing that if you go wrong, you have no hope of recoup your capital, fair?

Surely KC just allocates a tiny portion of capital in doing so to boost the overall return. Still KC does not need to it.

I am very happy and proud to see KC portfolio good return. Another testimony of good Business Value and demonstration of High value asset selection.

Wake up please. Trade what? What is that to trade?

company should focus on their core Business operation.

Should not involve especially in share investment and so much cash holding and buying up so much non core resort and hotel and giving up pittance div.

I really try to review this company from different perspective But i cant do it anymore.

I read Ckwan reply and have to concur with that. Ckwan even gives us the example of GAB price ten years ago. The fair value at that time is Rm1.65 and price at that time is Rm1.80. He did not buy. Ten years later now is Rm13 plus.

My dear friends, I have to stress that it does not matter to me what is the price today or tomorrow. Whether it drops 20-30% next year or not.

It Only matters to us the price after ten years. Most importantly is how much shares that i hold at that point of time.

Remember this is wealth Creation process. Stock picks and Margin of Safety is Only part of the process ya. No doubt is the most important part But not more important than the process itself.

TQ

Property sector is Not an easy valuation. Anyway, congratulation to KC on KSL and Scientex. Wonderful job.

IS the Up trending LINE of KLSE still supportive?

good you always want to be at efficient frontier.

Ha Ha What AyamTua saying is this is Market. Nothing to do with Individual Luck.

Good I wish you can be very successful after ten years ya. I really have high hope of you.

anyway, Credit should be given II for the effort and i can see tremendous progress over past two months.

Congratulations.

What is that to trade? Justin. Think what am i actually doing? Trade what?

WEll, having said that it is always Best to have 3 pricing in mind:

1. Fairly Priced
2. Lower Priced
3. Highly priced

Be conscious of what is happening and reasons behind those price.

Price is given by the market. Be receptive first before judging.

Try to use EPV model more often as we should minimize to assume so much factors and engage in academic debate.

And we should not assume Growth as well. Look at Haio and GAB and Kfima recent disappointing results. It is normal for any company having poor results even for straight two years.

Should we pay a Billion in market value for a Billion in valuation? Some are very very happy to pay a Billion for a Billion.

Better still when they know the value is Rm 1 billion and market is selling them at half price.

What happens if you know that the company is Only earning Rm 10 million and most asset are in receivable?

Do we even want to know why a Billion asset is only earning Rm 10 million a year?

I think before we think of paying a Billion in market value for A Billion in valuation, we should examine the followings:

1) Quality of asset such as Balance sheet;
2) Quality of earning power and cash flow;
3) Quality of management such as operational margin;

Not Doubt. Some of them will perform very well thereafter.Some of them will not.

Just be more Conscious of knowing what happens.

Any company can grow their profit by Borrowing. There is No problem as well.

Any company can grow their profits by acquisition. What is the problem?

Ya right Nothing cheap in the market. Does it mean you should sell it? Where on earth have you seen any Businessman selling their business year in and year out?

Funny ya Tom. Sometimes articles are taken Out of Context.

So what is Warren actually saying?

AyamTua, you see what happens after reading earlier articles?? Warren hears us.

You are right. Trust yourself.

AyamTua, good to hear you say that and i truthfully believe you can make it through in good times and bad times.

If your investment and portfolio can survive 2008-2009, i believe you can survive forever.

Surely i am holding partly cash and some fixed income as part of portfolio in good times and bad times.

Well, Bear Bear just come and get me asap and i want to take a Long break.

As you are not coming today, please come tomorrow. Why takes so Long ya?

Let all my stock pick get a fire testing in the furnace.

Well, If i gain 40% i am always prepared to give back 20% back to the market. That is why it works. Gain more lose less.

Ha, if you are the person who likes to Worry. Please worry about our economy. You will never run out of Worry from Day One until your last Day.

I am Not saying yours and mine and our worry is Not valid. But lets leave it to Nobel Prize winner and professor as the whole economics has always remained as Academic.

BUT our job as Investor as well as Shareholder is CLEAR that is to make MONEY in good times and Bad times. As lots of Super investors also made Money during bad times and seldom elapse in their records of positive yearly returns, lets emulate their success as well.

So friends, lets focus on our jobs of successful investment year in and year out.

Lets take the above Articles as a bit of Encouragement.

Ha, if I survive Long enough I will have all lucks factors at my side.

It is not surprising this company goes on financing again or share issuance or placement based on High share prices again.

Sometimes i would think that too much emphasize on the market returns year to year until we forget about the survivalship issue.

Stock Diversification?
Portfolio management? Cash level?
Stock picks for Long term?
These are Right things to do to sacrifice for Market return BUT in exchange for survivalship.

Why survivalship? Yes compounding for Long term. Yes i survive this year. I can compound for this year.

Luck is like Betting. In market we are Betting on Mispricing. Investment is about Mispricing. SO INVESTMENT is equal to LUCK ??

I would say In short term, market is a voting machine. Long term is a weighing machine. All luck factors/noise will be smoothed out/filtered out.

Common sense and statistic says that you cant be lucky for 30 years.

I would say High share price would boost company profile and ease investor concerns and boost bankers'confidence and thus company have easier access to financing needs and can also leverage further on financing needs.

it is seen as last resort of company to turnaround their fundamentals. I remember Mr Koon has written the importance of share price in the capital market in relates to its fundamental and investors' confidence and further financing needs not too long ago.

If you are old, good, learn something New like me.
If you are engineer, better still, you are already good in figures.

Ha, most i envy is the young, please start early.

Yape any young and old regardless of education background and profession who are serious about investing can always benefit from KC articles.

TQ KC. I think it can be a good case study.

I sold off earlier as not agreeing with their management style. You know stupid egoistic people like me always think that we have higher value than others.

But after converse in this forum and reflecting, I think i can accept so many different style of management, opinion, investment style and so on. At least respect the way they do business and other people opinion.

Why not the best of both world?

An balanced approach in between, Company which is cash rich and asset rich, Good Business Value and business earning prospect, at fair value preferably slight discount.

Having said this, I thought of Keck Seng again.

Calvin, nothing is good nor bad. If you are good, then do it 10-20 rounds.

Stock turnover can also be different companies due to different strategies.

Ultimately, It might lead to trading and bad market timing.

Ha, Looks like KC wants to sapu the market in good times and bad times.

Beware of stocks turnover ya.

well i have no doubt that market will always prove who is swimming naked, who is lying and who is hypocrite.

Good. I really like EPV model as there is No assumption.

EPV model always gives quite a minimum value and the Model itself is Margin of Safety. You can even Buy at slight premium for some stable company.

Remember MOS is an Art. Don't be too meticulous and academic about MOS.

Why is that a rule of 30% MOS? Well, does Appollo needs 30% MOS? Probably yes probably No. That is why it is an Art.

I read that there would be toll rate hike in 2015 and 2016.

One of the most stable Business and earning in market i think.