Posted by calvintaneng > 2016-04-07 20:43 | Report Abuse

I like wonderful companies.

I like to search and find them more BEFORE they turn wonderful.

Public Finance was a wonderful company at Rm2.20 long ago. Today Public Bank is well known.

I like TASEK, LAFARGE & CMSB When they were penny stocks. Today all are blue chips

And since they are SO WONDERFUL TODAY THEY ARE NO LONGER CHEAP ANY MORE.

The secret is to find "other good wonderful companies" still in their embryonic stage.

Posted by CFTrader > 2016-04-07 20:50 | Report Abuse

Look at TMCLIFE then. Calvin.

Posted by calvintaneng > 2016-04-07 21:01 | Report Abuse

Posted by CFTrader > Apr 7, 2016 08:50 PM | Report Abuse

Look at TMCLIFE then. Calvin.


Ok, thanks.

I will study it

Posted by stockraider > 2016-04-07 21:46 | Report Abuse

Warren Buffett's 4 Tenets:

1. Know the business you wish to own (Circle of Competence Tenet)...Raider agree...if u r a banker...u should concentrate on banking stocks loh....!! But raider is a margin of safety investor....thus should concentrate on margin of safety stocks...this is what raider has been doing...!! And been doing well mah...!!
2. Business must have economic moat (Durable Competitive Advantage Tenet). Of course business which had moat has advantage....but do not overpay loh....!!
3. Management must be hardworking, intelligent and above all, honest (Integrity Tenet)...Yes the corporate governance is very important
4. Buy at fair price (Quantitative Margin of Safety Tenet)...Yes Raider agree.....but paying Pe 30x....for Nestle, D Lady and Pet Dag is useless loh....!! Why leh ?? Bcos no margin of safety mah....!!

Qualitative Margin of Safety Tenets = 1 + 2 + 3
Qualitative Margin of Safety first, then Quantitative Margin of Safety.
Raider says get the margin of safety 1st.(QUANTITATIVE) ...then u talk about qualitative loh....!!

BTW......It is very difficult to talk about Qualitative margin of safety loh....Usually....those who preach qualitative margin of safety...is talk 3...talk 4 only....like justifying high PE of 30x....!!

MARGIN OF SAFETY CORRECT INTERPRETATION IS QUANTITATIVE....WHERE U CAN CALCULATE REAL VALUE AND SUBTRACT THE SHARE PRICE TO GET THE MARGIN OF SAFETY LOH....!!

Posted by calvintaneng > 2016-04-07 21:55 | Report Abuse

Posted by stockraider > Apr 7, 2016 09:46 PM | Report Abuse

4. Buy at fair price (Quantitative Margin of Safety Tenet)...Yes Raider agree.....but paying Pe 30x....for Nestle, D Lady and Pet Dag is useless loh....!! Why leh ?? Bcos no margin of safety mah....!

Yes, there is a price for every stock, house, car or even gold.

We can grossly overpay for gold (like US$2,000an ounce)

So we can also Grossly Overpay for a Blue Chip Stock P/E 30 to P/E 100 is a definite no no UNLESS it is a Cyclical Stock.

Everybody knows the price of a thing BUT NOT ITS VALUE.

Posted by 3iii > 2016-04-07 22:41 | Report Abuse

raider has been asking investors to sell DLady and Nestle for so many years. Either the market is wrong or raider is wrong. raider has yet to admit he is wrong!!!! (sad)

Posted by 3iii > 2016-04-07 22:44 | Report Abuse

Can you identify the 10 stocks in Screen 1 to Screen 10 in the above post?

Posted by 3iii > 2016-04-07 22:46 | Report Abuse

Stock in screen 10 is LPI. Great company.

Posted by moneySIFU > 2016-04-08 09:49 | Report Abuse

Hi Calvintaneng, you have been actively writing articles recommending some good stocks & share your findings to us way before 2015.

Any reason to withhold you back from participate stock pick 2016?

And even you did not manage to participate, why not create a portfolio to share with you how great you are in selecting good stocks?

Posted by 3iii > 2016-04-08 11:50 |

Post removed.Why?

Posted by 007 > 2016-04-08 15:13 | Report Abuse

It is wasting time to quote warren buffet phil. by almost all writers, i think is BS

Posted by 007 > 2016-04-08 15:41 | Report Abuse

market price movement base on supply and demand, it is impossible to know this company human is hardworking or intelligent as human is dynamic, company stay but human move around. A fair company at wonderful price will be the lousy company at disastrous price as time move on or vice versa. So is Warren Buffet hold or not. If this simple question cannot be answered, please don't quote your great warren buffet

Posted by 3iii > 2016-04-08 15:54 | Report Abuse

>>>007 It is wasting time to quote warren buffet phil. by almost all writers, i think is BS
08/04/2016 15:13

007 market price movement base on supply and demand, it is impossible to know this company human is hardworking or intelligent as human is dynamic, company stay but human move around. A fair company at wonderful price will be the lousy company at disastrous price as time move on or vice versa. So is Warren Buffet hold or not. If this simple question cannot be answered, please don't quote your great warren buffet<<<

007 You are neither the first nor the last to say that Warren Buffett's philosophy doesn't work in the Bursa. I certainly have heard from those who attended various free stock trading presentations when the speaker started by saying Warren Buffett's method does not work in our stock market. :-)

Posted by 007 > 2016-04-08 17:33 | Report Abuse

3iii>>> Use Warren Buffet is an old but effective trick by most self proclaim sifu. We are small or I would say minute invest has nothing in comparison with warren buffet. Those gigantic super power and influence of warren buffet to move the whole world market, may I ask in Malaysia who has it ????
As a small investor, we jump into a bandwagon with a little and limited knowledge about the driver or drivers (malay, indian, chinese, xxx) and hopefully the drivers are honest and make the money for you

Is two totally difference scenario my friends

Posted by 3iii > 2016-04-08 17:51 | Report Abuse

007 Yes, another favourite line of argument is Buffett has a lot of capital to invest and those with small amount of money to invest cannot hope to make money using Buffett's method. I have heard this statement often too.

Posted by 3iii > 2016-04-08 22:24 | Report Abuse

Over the last 12 years, the prices of these stocks have shown the following gains:

Screen 1: 200% (3 bagger)
Screen 2: 200% (3 bagger)
Screen 3: 100% (2 bagger)
Screen 4: 900% (10 bagger)
Screen 5: 100% (2 bagger)
Screen 6: 200% (3 bagger)
Screen 7: 900% (10 bagger)
Screen 8: 200% (3 bagger)
Screen 9: 900% (10 bagger)
Screen 10: 500% (6 bagger)

Posted by 3iii > 2016-04-08 22:33 | Report Abuse

In general, using the strategy I employ, for every 5 selected stocks - 3 perform to expectation, 1 underperforms and 1 overperforms.

Posted by 3iii > 2016-04-09 12:49 | Report Abuse

Low risk high return strategy.

Posted by 3iii > 2016-04-09 20:04 | Report Abuse

A Wonderful Company to Invest for the Long Term (Screen 1)...

This stock is Public Bank Berhad.

Posted by 3iii > 2016-04-09 20:29 | Report Abuse

Historical PE of DLady

Date adj HPE adj LPE
23/02/2016 23.7 21.7
17/11/2015 20.5 20.3
24/08/2015 23.6 22.9
26/05/2015 28.4 27.7
24/02/2015 28.0 27.2
25/11/2014 27.4 23.9
26/08/2014 24.6 24.1
27/05/2014 22.8 22.4
25/02/2014 22.2 21.8
26/11/2013 22.4 21.5
27/08/2013 23.5 22.7
28/05/2013 24.7 23.2
26/02/2013 24.7 23.6
27/11/2012 26.2 24.5
28/08/2012 25.4 24.5
24/05/2012 21.8 19.0
24/02/2012 22.4 17.2
15/11/2011 21.9 16.3
18/08/2011 15.8 13.7
18/05/2011 16.7 16.1
25/02/2011 16.4 15.5
29/11/2010 17.4 15.4
18/08/2010 14.3 12.3
18/05/2010 11.6 10.6
18/02/2010 12.9 12.6
24/11/2009 14.3 12.8
25/08/2009 14.5 13.7
26/05/2009 15.6 14.6
20/02/2009 14.1 13.3
18/11/2008 15.4 14.7
28/08/2008 22.1 19.7
26/05/2008 21.3 20.3
27/02/2008 17.5 16.5
20/11/2007 17.4 15.8
27/08/2007 14.8 14.4
21/05/2007 15.5 14.8
15/02/2007 17.5 14.9
28/11/2006 22.4 19.0
08/08/2006 20.0 18.1
23/05/2006 19.3 17.1
15/02/2006 19.6 17.2
25/11/2005 15.5 14.3
24/08/2005 15.9 15.5
25/05/2005 16.5 14.4
28/02/2005 18.7 16.2
30/11/2004 21.5 20.4
25/08/2004 21.7 20.7
20/04/2004 30.6 28.7
19/03/2004 26.3 25.2

For raider's benefit. raider has difficulty with calculating intrinsic value.

Posted by 3iii > 2016-04-09 20:49 |

Post removed.Why?

Posted by 3iii > 2016-04-09 22:07 | Report Abuse

Company XYZ EPSGR 0%
Years Earnings P/E Shr Pr
0 40 25.0 1000
1 42 25.0 1040
2 43 25.0 1082
3 45 25.0 1125
4 47 25.0 1170
5 49 25.0 1217
6 51 25.0 1265
7 53 25.0 1316
8 55 25.0 1369
9 57 25.0 1423
10 59 25.0 1480
11 62 25.0 1539



Company ABC EPSGR 7%
Years Earnings P/E Shr Pr
0 33.0 30.3 1000
1 35.3 30.3 1070
2 37.8 30.3 1145
3 40.4 30.3 1225
4 43.3 30.3 1311
5 46.3 30.3 1403
6 49.5 30.3 1501
7 53.0 30.3 1606
8 56.7 30.3 1718
9 60.7 30.3 1838
10 64.9 30.3 1967
11 69.5 30.3 2105




Company DEF EPSGR 10%
Years Earnings P/E Shr Pr
0 40.0 25.0 1000
1 44.0 25.0 1100
2 48.4 25.0 1210
3 53.2 25.0 1331
4 58.6 25.0 1464
5 64.4 25.0 1611
6 70.9 25.0 1772
7 77.9 25.0 1949
8 85.7 25.0 2144
9 94.3 25.0 2358
10 103.7 25.0 2594
11 114.1 25.0 2853

Posted by 3iii > 2016-04-09 22:18 | Report Abuse

Company XYZ EPSGR 0%
Years Earnings P/E Shr Pr
0 40 25.0 1000
1 42 25.0 1040
2 43 25.0 1082
3 45 25.0 1125
4 47 25.0 1170
5 49 25.0 1217
6 51 25.0 1265
7 53 25.0 1316
8 55 25.0 1369
9 57 25.0 1423
10 59 25.0 1480
11 62 25.0 1539 #

A fair company at wonderful price

---------------------------------

Company ABC EPSGR 7%
Years Earnings P/E Shr Pr
0 33.0 30.3 1000
1 35.3 30.3 1070
2 37.8 30.3 1145
3 40.4 30.3 1225
4 43.3 30.3 1311
5 46.3 30.3 1403
6 49.5 30.3 1501
7 53.0 30.3 1606 #
8 56.7 30.3 1718
9 60.7 30.3 1838
10 64.9 30.3 1967
11 69.5 30.3 2105


A wonderful company at fair price

---------------------------------




Company DEF EPSGR 10%
Years Earnings P/E Shr Pr
0 40.0 25.0 1000
1 44.0 25.0 1100
2 48.4 25.0 1210
3 53.2 25.0 1331
4 58.6 25.0 1464
5 64.4 25.0 1611 #
6 70.9 25.0 1772
7 77.9 25.0 1949
8 85.7 25.0 2144
9 94.3 25.0 2358
10 103.7 25.0 2594
11 114.1 25.0 2853

A wonderful company at wonderful price

--------------------------------------


It takes 10 years for company XYZ to reach price of 1539.
It takes 7 years for company ABC to reach price of 1606.
It takes 5 years for company DEF to reach price of 1611.

Time is money.

It is better to buy a wonderful company at fair price than to buy a fair company at wonderful price.

Of course, you should be very elated if you can buy a wonderful company at bargain wonderful price too.

Posted by 3iii > 2016-04-09 22:23 | Report Abuse

Compounding is the 8th wonder of the world (quoting Einstein).

The wonderful compamy is your vehicle to compound your money over many years.

Posted by 3iii > 2016-04-10 16:43 | Report Abuse

It is actually not difficult to work out what are the stocks in the screens 2 to 9.

Posted by 3iii > 2016-04-10 16:46 | Report Abuse

For example, share price of stock in screen 8 is MYR 20+.

Posted by 3iii > 2016-04-10 16:48 | Report Abuse

Stock price in screen 2 is > MYR 70 per share.

Posted by 3iii > 2016-04-10 16:54 | Report Abuse

Do you have the ability to put together a portfolio of less than 10 stocks, which can provide safety of your capital (low risk of loss) and which promises a return of > 15% per year for the long term (> 5 years or > 10 years).

Posted by 007 > 2016-04-11 11:08 | Report Abuse

The first counter you stride my brain is you mentioned about public bank, I hold public bank/hong and shanghai bank since 1998 (with recommendation from my late badminton kaki))and i put every year 5% of my income into it. I totally non active in share market. Of cause the old day i did not have intelligent people like you 3iii and all my saving is in the bank.
If you can recommend 2 to 3 counters beside the above with no risk, you will the mr.wonderful if 10% is achieved

Posted by wooddragon > 2016-04-12 22:42 | Report Abuse

Nestle and PetDag lor hahaha, I knew most of your favourite picks already, PBBANK, LPI, Nestle, Petdag, GAB, AeonCr, TopGlov, Padini, Dlady, Harta, GAB and Dlady may appeared among the screens

Posted by 3iii > 2016-04-13 06:25 |

Post removed.Why?

Posted by 3iii > 2016-04-13 08:03 | Report Abuse

I know from experience that nobody (except one very good friend who is a fantastic investor himself over the long run) can give me a tip or a series of tips that will make more money for me than my own judgement.

It has taken many years to learn to invest intelligently enough to make big money when I am right.

Posted by 3iii > 2016-04-13 20:40 | Report Abuse

Why staying with wonderful company is the better way to make money in the stock market?

Look at any of these 10 stocks mentioned.

If you have bought any of these stocks in the beginning of the 13 years period and held onto them until today, they have given you positive returns. (How wonderful. What more do you want?)

You don't even have to sell.

Assuming you are very lousy in your stock picking. At the time of buying , you bought the stocks at the highest price and at the time of selling out (5 or 10 years later), you sold at the lowest price of that period, your return on your investment will still be positive. (How wonderful. What more do you want?)

Of course, to be able to do so, you have to have the right investing philosophy and be wired appropriately.