Posted by Terry Tan > 2016-03-10 23:59 | Report Abuse

Very good sharing Mr KcChong. Keep up with the good work!

Posted by PlsGiveBonus > 2016-03-11 00:27 | Report Abuse

Too bad the house return is far exceeding klse performance
Klse perform 100-200% over the 20 years, but house price increase over 1000%
Can you imagine 50k banglow house compouding to 5-10millions in value?

Posted by PlsGiveBonus > 2016-03-11 00:32 | Report Abuse

And the risk is house is too low compare to diversify in portfolio
Why need to create multiple portfolio and betting one of the portfolio actually perform well?
You don't need to pick so many house just to make over 1000% return

Posted by PlsGiveBonus > 2016-03-11 00:37 | Report Abuse

The return of the equity market is too low, it doesn't worth the effort to do it, of course high dividend yield is another story but how many pick actually can give better dividend compare to house? One of the best performing is hapseng if you bought it since last subprime crisis, it will also giving a dividend yield of 12% annual, but at the same time the house price already increase multiple times, and it is the best of all penny stock.

Posted by spectre007 > 2016-03-11 00:43 | Report Abuse

Dow Jones down... klse tomorrow how ahh?

Posted by PlsGiveBonus > 2016-03-11 00:44 | Report Abuse

Any house can outperform the best performing stock in Klse, investing is no brainer decision

Posted by PlsGiveBonus > 2016-03-11 00:50 | Report Abuse

Of course it is not easy to buy house when you are poor
But what I see now more and more youngster are readily to afford their first house once they finish their school
Buying house is like shopping for them it is simply affordable.

Posted by PlsGiveBonus > 2016-03-11 00:53 | Report Abuse

How many penny stock can actually outperform hapseng?
Basically none of them can do it even if you included MyEG or ifca and any high speculating penny stock cannot come close to it.

Posted by PlsGiveBonus > 2016-03-11 00:59 | Report Abuse

We can have Top glove karex supermx Kossan Hartalega to compete but their dividend yield is pathetic as well, if you bought it since subprime crisis it will reward you handsomely

Posted by PlsGiveBonus > 2016-03-11 01:05 | Report Abuse

You can only be rewarded handsomely if you can predict the crisis correctly or most of the time a waste of effort to invest.

Posted by PlsGiveBonus > 2016-03-11 01:13 | Report Abuse

Why need to learn value investing when the market is always overvalued and only a 1998/2008 can bring them to a fundamentally worth to buy?
Learnt to short this market so the 1998/2008 could repeat itself.
The junk investment is flooding the market now, why not give it a massive cleansing.

Posted by PlsGiveBonus > 2016-03-11 01:49 | Report Abuse

Market is about to crash when more quantitative easing and print money couldn't save it, bank will get to taste their own junk strategy, and start to collapse, when the bank start to fall, we would see plenty of junk rate company to be wipe out by the reality.

Posted by PureBULL . > 2016-03-11 02:06 | Report Abuse

Hi Guru kcchongnz ,
Wow u quoted my name.
That means u also peek into my stuff. TQ GURU.
Fully agreed with u, stick to whatever u know that works, esp for yourself.

All sport coaches' famous lecture :
Know your weak pts n turn them into your strong pts.
Your own Strong pt will take care of itself.

My advice to a newbie who asked me;
PureBULL . > Mar 9, 2016 10:21 AM | Report Abuse X

Dear Yen Leng,
U r not my sis-in-law. r u?
I strongly believe for somebody new or old to stock mkt to have a good foundation n grounding on FA.
U must know what drives up stock prices.
We have a few FA taiko on board i3.
I recommend u seek knowledge with Guru kcchongnz. He's very hard working n a great teacher. Highly qualified financial pro with 2 uni degrees n more n also graduate from school of hard knocks.
Best, He will never MIA. U'll learn abt IV, intrinsic value of co. Pls teach me after that.
11/03/2016 01:32

I was FA 1st of course. A true FA indeed. Out of BCT University, I was a Corporate Planning Officer with the most aggressive chinaman banking conglo. as my 1st job n last job. I did many projects on M&A, detail financial n biz feasibility studies, operational audits to advise mgmt co. to increase installed plant capacity n to enhance mkt development n penetration. I do know the very importance of FA to biz future prospect. To do well all stock players need to know.

Posted by PureBULL . > 2016-03-11 05:00 | Report Abuse

Mar 11, 2016 03:22 AM | Report Abuse X

Dear PlsGiveBonus ,
U r feeling the heat of the mkt now.
Mkt primary cycle completes n repeats every 6-9 yrs. The last 2 yrs in that giant cycle, stocks never fail to crush then crash.
Signs are clear that next 12 months r hard to go by.
Sifu Icon8888 said he can't understand what I'm writing abt.
I think he's very 'gungho', can still go up one.
But his AIRASIA call is ok, am awaiting at 156.

1 successful financial Jew I learned from, by the name of ____berg.
all berg r Jews, so is kukubird.

He said recently in the net:
2 top lines to drive 2 bottom lines of stocks.

2 TOP
i. Economy, #s
ii. FED, fiscal n monetary policies, also a bit of ECB
r catalysts to
2 BOTTOM
i. Profits, growth then recession of stocks
ii. Cash flow, final problem of many stocks
Any good reports must comprise of combination of the above 4 items. If not then it's for sure a BS report.

Posted by PlsGiveBonus > 2016-03-11 11:18 | Report Abuse

Some people need to earn money very urgently
They want to earn until the last day (month) before the market finally fall

Posted by PlsGiveBonus > 2016-03-11 11:19 | Report Abuse

May be their commitment is high?
They want to sponsor hundreds of student to enjoy honey moon

Posted by kcchongnz > 2016-03-11 13:20 | Report Abuse

Posted by PureBULL . > Mar 11, 2016 02:06 AM | Report Abuse
Hi Guru kcchongnz ,
Wow u quoted my name.
That means u also peek into my stuff. TQ GURU.
Fully agreed with u, stick to whatever u know that works, esp for yourself.
All sport coaches' famous lecture :
Know your weak pts n turn them into your strong pts.
Your own Strong pt will take care of itself.


PureBULL,

I quote you because you are one of the few more respectable gurus here in your own right, although we differ in investment strategy.

It is good to play in our own game. It is good to have a say 58 degree wedge in our golf bad, but it is really not a must and yet still can play a good round of golf.

Thanks for your recommendation for other to learn from me an FA. I never know teaching finance and investment is such a joyful thing to do, besides earning some money.

Posted by PlsGiveBonus > 2016-03-11 13:25 | Report Abuse

The problem with the quantitative easing is

1. Market is always illiquid for big stakeholder to move their cash around
2. When quantitative easing kick in, they finally found their hope to dump large quantities of paper asset at the bank
3. Finally the market throw all their junk into the bank
4. Bank cannot afford to give the loan with negative interest rate
5. Market start to crash, the riches has already moved all their stake into money while the poor getting trapped into the market

Posted by PlsGiveBonus > 2016-03-11 13:27 | Report Abuse

Every quantitative easing is making more bankruptcy than ever.
The term "easing" only valid to te rich, while the poorer get the taste of the side effect of the easing

Posted by PlsGiveBonus > 2016-03-11 13:40 | Report Abuse

What will the rich do with their money?
Park their money on safe heaven asset like
1. Property
2. Gold
3. Food and drink
4. Necessary item

Posted by PlsGiveBonus > 2016-03-11 13:52 | Report Abuse

Only the poor go investing in falling market
Why ask the poor get poorer?

Posted by 3iii > 2016-03-11 15:25 |

Post removed.Why?

Posted by kcchongnz > 2016-03-11 16:12 | Report Abuse

Posted by 3iii > Mar 11, 2016 03:25 PM | Report Abuse
KCChong, Thanks for sharing your portfolio and Joel Greenblatt strategy. I noticed your portfolio is concentrated and has been held for 3 years. If I recall Joel Greenblatt's book, he advocated for a diversified portfolio which he rebalanced every year using his strategy. He creamed the stocks in the market (the top 10%) that satisfied his screening criteria of high ROIC (quality) and high EBIT/EV (low priced). Joel Greenblatt might have mentioned that his strategy is based on betting on the overall market and not specific stocks. Would you like to comment to guide our learning? Thanks again.


Greenblatt use his Magic Formula investing (not betting) on stocks (not market) meeting the two criteria. Yes, he was doing quantitative investing in scores of stocks with the top scores in Magic Formula, and as you said, re-balanced them based on the criteria.

This style is more suitable for those harvesters with a lot of money such as fund managers.

As a retail investors with limited financial resources, I am not exactly doing what Greenblatt is doing with his Magic Formula, rather using his principles of the Magic Formula to hunt for some good buys, ie buying good company (with high ROIC)at cheap (high EY) price.

In fact I will add another essential criterion on top of it later.

Posted by PlsGiveBonus > 2016-03-11 17:21 | Report Abuse

Any fundamentalist will never tell you anything about market crash,
Because they need to exit it before anyone else.
And they will start to promote their fundamental views while unloading their stakes
Sound like common corporate exercise?
You bet it.
Insider trading is very famous in klse it is proven by sc, it is not my finding.

Posted by Ah Gan > 2016-03-12 18:26 | Report Abuse

Kcchong, when you add these stocks into your portfolio, will you consider other factors like forex? oil price? sectors?
or just base on the roic & ev/ebit?
thank you!

Posted by kcchongnz > 2016-03-12 19:00 | Report Abuse

Posted by Ah Gan > Mar 12, 2016 06:26 PM | Report Abuse
Kcchong, when you add these stocks into your portfolio, will you consider other factors like forex? oil price? sectors?
or just base on the roic & ev/ebit?
thank you!


Focus on what one can control. Nobody knows exactly what will happen to all those macro thingies next year.

Posted by PlsGiveBonus > 2016-03-12 23:28 | Report Abuse

When market is heading for crash
Any fundamental views cannot even worth a penny

Posted by PlsGiveBonus > 2016-03-13 05:52 | Report Abuse

Many fundamentalist try to ignore macro econonics views
They are vulnerable to failure
Quantitative easing is the key factor that kill all the fundamental of investment
The riches always can outsmart the poor

The quantitative easing is once introduced to stimulate the market slow down activities, it is first print a lot of money and inject into the market, the injection itself had ruined the market fundamental by destroying it is fair trade principal, it is rigged trades, and the riches find the loophole in this quantitative easing before the poor can realize, they (the riches) can be the first to know when to dispose off their junk investment paper asset at the poor.
What will the riches do with their money after they sold all their stake holding? They can always make another new company and issues more shares, list on the security is very easy to get rich, and the public listing didn't take much effort for the riches, they buy property asset, and flip them like a boss,

Posted by PlsGiveBonus > 2016-03-13 05:58 | Report Abuse

If you follow the trend carefully
The property you bought 8 years back now is rewarding you at least 300%
1 milllion property now is being inflated into 3 milllions worth, it is the problem with quantitative easing, they didn't fix the main problem and thus creating another problem, now they still insisted on issuing more of this failure to fix the market, the more quantitative easing, the more likely the rich will withdraw themself from the market, they like to park their cash on safe heaven asset, the poor who still think fundamental works will never get riches.

Posted by PlsGiveBonus > 2016-03-13 06:06 | Report Abuse

I found commercial building is the highly inflated of all investment
One commercial property bought at 4 years back now can sell for 300% price marked up, I am calling the flipper to be crazy, but what can you do with them? They are riches and they hire professonal to manipulate this property market, and they got all the fundamental to support their reasonable price marked up.

Posted by PlsGiveBonus > 2016-03-13 06:14 | Report Abuse

300% return within four years
It is equal to 30% CAGR for four consecutive year!
Now tell me what is the reason you want to invest in paper asset when you can get high return at almost no risk?
Paper asset has become too expensive to invest!
You need at least 100k to be a starter investor, but you can also use this 100k to buy your first house and get rich like no one else, which idiot in this world will choose the lesser option?

Posted by PlsGiveBonus > 2016-03-13 11:44 | Report Abuse

That is why youngster had no idea what is investment
They are delusional about investment
It can't be help since they are too obesed with their fantasy
The only way to help them is teach them with lesson

And for complement, most fundamentalist will also included a list of successful story and chart showing their return from investment "undervalue" paper asset, it is amusing to deal with them, sound like mlm to me.

Posted by PlsGiveBonus > 2016-03-13 11:45 | Report Abuse

Well their operandi is as usual quote some famous person with impressive wealth, and tell you must follow them, copy and paste their quote, and boom! Profit!

Posted by PlsGiveBonus > 2016-03-13 12:30 | Report Abuse

To teach youngster about investment
I think it should best start with convincing them house is the most rewarding investment in the universe, next will be education and follow by junk paper investment, most of them can easily accumulate 100k in their youth after working for several years, but they had tendency to spend all their wealth on junk that is assumed by someone else as "investment", buy car with cash is the most typical result from youngster, next will be buy phone and another tangible and intangible asset, their investment knowledge is only limited to very small sources, they never believe house is investment, because their friend told them so. Too bad they may end up spending their money on something else more useless when their knowledge is so limited, may be out of 1% of them actually get lucky and treat house as investment? Who know.

Posted by PlsGiveBonus > 2016-03-13 12:39 | Report Abuse

Youngster had tendency to contradict themselve as well
They don't like to manage their wealth carefully but depend on someone else to do so
They hire financial planner who is guiding their with their junk products that they don't even understand well, and the planner will use any trick to push their sales so they will convince youngster how can house is not a good investment and their junk is far superior and they even give example of house from poor location and type of property bank value testimonial from their selected few life failures, and then it work like a charm, youngster get into their get rich quick scheme. Once they get into the trap, they keep telling thenselve they can make good money from it, they even try to convince other people into their scam as well, that is irritating to see them doing all this non sense. Why no they just follow the rules?

Posted by Equityengineer > 2016-03-13 12:57 | Report Abuse

As if the past generations so called baby boomers never indulge themselves. Baby boomers created all those nonsense to make everything commercial and and make it a business, but claiming that they have done great deed and expect the next gen to follow their footsteps.
Baby Boomers always insulting and self-righteous articles complaining about how “pampered,” “entitled,” and even “narcissistic” they perceive Millennials to be.

Posted by stockmanmy > 2016-03-13 16:04 | Report Abuse

they call it the art of investing for a reason.


nobody ever calls it the maths of investing.

Posted by PlsGiveBonus > 2016-03-13 21:13 | Report Abuse

Food price increased, flour price increased, milo iced price increased, roti canai price increased, car price increased, and stupid financial planner tell me house price is overvalued and need to be drop. They can only cheat youngster with their unreliable chart, data, info, as long as you have this information, youngster is readily to get cheated.

Posted by PlsGiveBonus > 2016-03-13 21:20 | Report Abuse

But they can give some overvalued paper asset at unreasonable high expectation,
Biased analysis existed in every corporate world, the planner themself has no idea how to plan their life, and they only work for their daily pay check, will they care about your life when they are more worried about theirs?
Of course planner is trained to be sweet mouth and talk only what entice their potential client, most of them like to despise property because it is what their client like to heard