Posted by calvintaneng > 2016-01-09 13:41 | Report Abuse

One wise Value Investing Author wrote this:

"Value investors look for bargains among under-priced stocks. they buy them and patiently wait for their fair value to be realised. Opposite Value investors are the so-called growth investors. Growth investors are more aggressive. They focus on businesses that are booming, usually due to high demand for their products.

Growth investors look for stocks selling for one dollar now but expected to double in price in the future; value investors look for shares currently worth one dollar but selling for 50 cents now".

But The Best of All If You Can Find Those Real Gems of Both VALUE PLUS GROWTH.

Then the portfolio will grow exponentially!

Posted by leno > 2016-01-09 13:58 | Report Abuse

hey ! dun forget about the innoculation part ... inoculation hor .. not ejaculation hor ... http://klse.i3investor.com/blogs/LFB/89274.jsp

Posted by Icon8888 > 2016-01-09 14:00 | Report Abuse

Thanks KC, 如雷灌頂

Value Investing is a huge topic. Like I always said, contains 100 years of works and wisdom by the brightest mind in the West

I am merely scratching the surface. Clash of the Titans is my baby step towards learning more. For me, the journey of learning has just begun

Look forward to reading more articles from you

Have a nice day

Posted by mmkopis > 2016-01-09 14:41 | Report Abuse

Dear Mr. KC Chong,
Can you let me know how much a small fee for your online investment course.
May be others also interested if affordable.
Thank you very much.

sfwong

Posted by kcchongnz > 2016-01-09 16:24 | Report Abuse

Posted by mmkopis > Jan 9, 2016 02:41 PM | Report Abuse
Dear Mr. KC Chong,
Can you let me know how much a small fee for your online investment course.
May be others also interested if affordable.
Thank you very much.
sfwong

This is what the market price for just a couple of days of seminar on fundamental investing.

[Posted by Ooi Teik Bee > Jun 24, 2015 08:53 AM | Report Abuse
I was called up by a company which provide TA and FA teaching in the market, this company charged the fee > Rm 10,000 for the full course.
Mr Ooi, since you are a good friend of KC Chong, please tell him not to spoilt the market to charge so cheap in his course.
Likewise, Mr Ooi, you also should not spoilt the market too.


This is what one of my course participants said,

Posted by Atarah > Jun 5, 2015 12:30 PM | Report Abuse
I normally do not comment much now a day. Why because i have humbled myself and have start looking at the reality of myself. I have been trading for last 25 years and i look at where I am today. I did not even make more than RM 5 ringit in other Is in negative stage of return -1000% . I ask myself why ? The answers is Failure to invest in myself in especially "investment knowledge".
When KC Chong offers to teach us (me) for just a mamak nasi lemak and one teh price a day... I almost fall down off my chair. I have seek around and ask for the same teaching or guidance how much I will have to pay ? The price range from RM400 to RM2999 for two days course ok plus weekend just say 5 days course.
I am with him now for one month and the PDF teaching he sent us with assignment which I always fail to submit is so enriching. Every weeks I learns new thing and I will learns this for next 7 months before I graduate.
To cut the story short.... INVEST IN YOURSELF while you still can....
I am not promoting KC.. I am saying do not be like me .. naive and still searching .. I hope I can learns from a good guru here.... Now I have shown you and do not say I did not tell you.
All the best.
Atarah

Posted by soojinhou > 2016-01-09 22:39 | Report Abuse

KC, I enjoyed this write up very much. Love the quotes. I currently have close to 20 stocks and am overwhelmed with the amount of work needed to monitor them. Having 30 stocks will indeed be a challenge.

Posted by Law81 > 2016-01-10 08:57 | Report Abuse

Good morning mr kc, if I also interested and wish to participate in your online course? How to contact you. I am a newbie here!

Posted by Newbhere > 2016-01-10 09:17 | Report Abuse

Your write-up is recycled based on your previous writings. But nevertheless thank you Mr Chong. It is a timely reminder for everyone especially since there has been a lot of new write-ups and perceptions on what constitutes a value trader and value investor. There are too many gungho people still buying expensive stocks in hopes for the prices to get higher and too many aiming for penny stocks or warrants to make a quick buck. Many punting on cyclical stocks advocating those are a “sure win” in the long term.

On WB emphasizing a lot on MoS may not be entirely true, especially with Charlie Munger encouraging him to buy stocks at their fair value like Coca Cola and others. They knew of the future potential of this stocks and the qualitative moats available which cannot be easily replicated. No fundamental ratios or even valuations will be able to detect or indicate such things especially since they are subjective in nature.

If everything is fully dependent on MoS or even a price being lower than the IV to be attractive, there will be a lot of opportunities foregone and we will not discover similar investments like what WB and CM did.

Posted by kcchongnz > 2016-01-10 11:30 | Report Abuse

Posted by Newbhere > Jan 10, 2016 09:17 AM | Report Abuse

On WB emphasizing a lot on MoS may not be entirely true, especially with Charlie Munger encouraging him to buy stocks at their fair value like Coca Cola and others. They knew of the future potential of this stocks and the qualitative moats available which cannot be easily replicated. No fundamental ratios or even valuations will be able to detect or indicate such things especially since they are subjective in nature.

If everything is fully dependent on MoS or even a price being lower than the IV to be attractive, there will be a lot of opportunities foregone and we will not discover similar investments like what WB and CM did.


Whether you are buying a stock with future potential or not, the valuation is the same. It is based on the value of a stock depends on all future cash flows discounted to the present value, or intrinsic value.

In Coca Cola case, Munger and Buffett were able to have more accurate projection of future cash flows, which were much more than the historical cash flows at that time.

With the optimistic, but correctly done, estimate of future cash flows,the intrinsic value was high with respect to the share price then, and the MOS was high.

The basic principle is the same. But the accuracy of your projection matters. Not everyone is Buffett though.

Posted by PlsGiveBonus > 2016-01-10 11:32 | Report Abuse

Value is made by rule and rule is made by human, new generation will create their own rule why should they pick up the mess left by older generation?

Posted by PlsGiveBonus > 2016-01-10 11:36 | Report Abuse

Value investing is a rule made by older generation
the new rule now is very different from the past
the economic change rapidly unlike the ancient time
the good company couldn't last forever a climate change will change its fate

Posted by PlsGiveBonus > 2016-01-10 11:37 | Report Abuse

Can you see any value investing in crude oil related counter?
Absolutely nothing even if it has been dipping far away from its peak

Posted by PlsGiveBonus > 2016-01-10 11:45 | Report Abuse

I always wonder why should many newb wanna bet all their saving into crude oil because they believe everything has value and the value of crude oil is far too low and then they end up losing their pant, eat egg soy sauce add some rice, and some miso soup

Posted by PlsGiveBonus > 2016-01-10 11:46 | Report Abuse

Crude oil will rebound to its value
You must be mad

Posted by PlsGiveBonus > 2016-01-10 11:49 | Report Abuse

Perhaps the value of crude oil is far below a glass of evian mineral water

Posted by kcchongnz > 2016-01-11 13:11 | Report Abuse

Posted by soojinhou > Jan 9, 2016 10:39 PM | Report Abuse
KC, I enjoyed this write up very much. Love the quotes. I currently have close to 20 stocks and am overwhelmed with the amount of work needed to monitor them. Having 30 stocks will indeed be a challenge.


"In his deep value strategies Graham recommended owning a portfolio of 30 bargain stocks to minimize the impact of single stocks falling into bankruptcy or distress, while Joel Greenblatt recommends a similar level of diversification when following his Magic Formula strategy."

Deep value strategy used by Graham and his nearest-to-pin disciple Walter Schloss were doing fund management invested in cheap stocks, mainly based on balance sheet investing. Joel Greenblatt uses quantitative investing for his funds too. They, as value farmers, do need a broad diversification imo as they do not go too deep into their analysis, but merely based on some quantitative metrics.

For us, we are retail investors with less money but more time to go into deeper individual analysis. Hence for most of us, diversify into say about 10 stocks in different industry will enjoy that free lunch in investing.