Posted by kcchongnz > 2015-06-21 06:55 | Report Abuse

Words of wisdom.


Posted by paperplane2 > Jun 21, 2015 01:16 AM | Report Abuse

Using margin will not help you double, triple! Good stock picking skill will!

Posted by Ooi Teik Bee > 2015-06-21 20:42 |

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Posted by Ooi Teik Bee > 2015-06-21 21:00 |

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Posted by F22Raptor > 2015-06-21 21:24 | Report Abuse

Both Mr Ooi and Mr Chong are excellent investors,however Mr Ooi definitely can stomach more risk when the opportunity arises.There is more than one right way to invest.
Since both of you have different risk profiles there is no point arguing any further whose method is best.
How do we compare a grade a orange with a grade a apple anyway?

Posted by Mongkokking > 2015-06-21 23:30 |

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Posted by Mongkokking > 2015-06-21 23:34 |

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Posted by Mongkokking > 2015-06-21 23:36 |

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Posted by Myojoking > 2015-06-21 23:42 |

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Posted by calvintaneng > 2015-06-21 23:51 | Report Abuse

Very good,

3 Claps to i3 Forum Team!

To all here!

Both KcChongNz & OTB are sharing differing views.

There is a lot you all can learn here. Please be respectful & keep to the presentation of convictions. Ultimately the best course of action will prevail. What is the ultimate truth? The ultimate good?
That all must decide carefully.

Posted by kcchongnz > 2015-06-22 02:38 | Report Abuse

Charles Munger on Arrogance

On the morning of the battle of Waterloo, Napoleon Bonaparte smugly assured his generals, “I tell you Wellington is a bad general, the English are bad soldiers; we will settle this matter by lunch time.” Don’t be blinded by arrogance. A little humility can help you steer clear of disaster.

Just before the Titanic was about to embark on its maiden journey in 1912, one passenger asked a ship’s agent for extra insurance on some valuables in her luggage. The agent replied, “Ridiculous. This boat’s unsinkable.”

Captain Smith himself was asked about the safety of the Titanic. He answered – “I cannot imagine any condition which would cause a ship to founder. I cannot conceive of any vital disaster happening to this vessel. Modern shipbuilding has gone beyond that.”

Then, after the ship had struck the iceberg, a passenger asked her employer if they should do something about it. He replied, “Go back to bed. This ship is unsinkable.”

In 1997, the KLSE go go years. The SBI ran up by 156% from 256 points in November 1995 to 656 points at the end of March 1997, in just 16 months.Soon after that, as a result of the Asian Financial Crisis which started in Thailand and spreading to other Asian countries, both the KLCI dropped by close to 60% in about just half a year. The markets did recover substantially by about 35% between one to three months. That was the most dangerous part, as those who thought Jaw 1 had ended without knowing the appearance of Jaw 2. The markets plummeted by another 60% in another half a year later when KLCI and SBI closed at 303 points and 77 points respectively on 28 August 1998.

http://klse.i3investor.com/blogs/kcchongnz/73675.jsp

These events repeated in the Dot Com Bubbles in 2001, and the US sub-prime housing Crisis in 2008.

Will it happen to the Shanghai Market with the euphoria going on? Of course not. This were the statement made 2 weeks ago, and Shanghai Index has dropped by 11% since then.

"You tell the investors in China now, using margin financing is very bad, I believe many investors will scold you that you are a stupid investor."

The same statement was made again yesterday.

"The Chinese investors will scold you stupid fool not to use margin account, otherwise, you will be laughing all the way to the bank."

And more statement

"I am sorry ... I repeat ... I am sorry to say that a small investor like you will not use margin account, it does not mean that big investors will not use margin account to win big. May be I had spoken to all big investors only. "

Sure, i am a small investor,and you are a big timer, no doubt about it. And you win big, congratulations!

But the issue we are debating about is

"Should one encourage the general public in a public forum like this to use margin finance in investing?"

Posted by kcchongnz > 2015-06-26 18:21 | Report Abuse

HONG KONG (AP) -- Chinese stocks plunged on Friday as panicked investors rushed to sell over fears that an extended bull market was coming to an end. Other world benchmarks fell as a standoff between Greece and its international creditors threatened to drag into the weekend.

SHANGHAI SLUMP: After a sizzling rally that more than doubled Shanghai's benchmark index over the past year, investors are now heading for the exit. One factor appears to be authorities tightening rules on margin financing, which involves using borrowed money to buy stocks. The market's drop may also be exacerbated by the herd mentality of retail investors, who play an outsize role in China's markets, or by margin investors being forced to sell off to meet margin calls.

ANALYST INSIGHT: "Although I continue to be optimistic about the longer-term trend of the China markets, it's clear that we are in a sharp correction phase," said Bernard Aw of IG Markets in Singapore. He said up until Thursday, $1.2 trillion had been wiped off of China's equity markets since they peaked June 14 at $10 trillion.

ASIA SCORECARD: The Shanghai Composite Index in mainland China plunged 7.4 percent to close at 4,192.87, bringing its losses for the week to 12.4 percent. The smaller Shenzhen Composite Index tumbled 7.9 percent to 2,502.96. Hong Kong's Hang Seng dropped 1.8 percent to 26,663.87. Asian benchmarks outside of China were more muted.