Posted by probability > 2016-12-25 18:54 | Report Abuse

wonderful write up....thanks for the summary KC. Just wished we have a few more people like KC who talks so much sense with substance (or common sense) in i3... it would really be a wonderful place-rich in information.

Would extent my thanks for 2016 & best wishes on 2017 to itsjustaboutheprofit, WealthWizard, Icon, Jay, OTB, Bone, RicheHo, enning22 , TanKW, CharlesT and all those who maintained a single long term id with logical comments..:)

Posted by calvintaneng > 2016-12-25 19:22 | Report Abuse

12 Christmas carols by Jim Reeves

https://www.youtube.com/watch?v=z7KG5_EUxZg

Posted by Abismail > 2016-12-25 19:26 | Report Abuse

Tq kcchong...

Posted by kkanagasg > 2016-12-25 19:42 | Report Abuse

Bellicose beggar

Posted by Mr. M > 2016-12-25 20:47 | Report Abuse

Merry Christmas, KC!

Posted by MoneyFace88 > 2016-12-25 20:58 | Report Abuse

I would say KC is the best writer in I3, and KYY is the moray arrogant cock.

Posted by aidwiz > 2016-12-25 21:54 | Report Abuse

merry xmas kc. have a good holiday.

Posted by shortinvestor77 > 2016-12-25 23:21 | Report Abuse

You are forgiven, KC. Do not simply attack others. Keep peace in i3, pls. God bless you.

Posted by einvest88 > 2016-12-25 23:43 | Report Abuse

It is always gd to put up a lot of articles using whatever basis u like...To me most the this book theory and approach just to create more jobs for ppl otherwise many will be jobless and economy will not grow if all choose to make money from stock market. However, to make big money the simplest approach always the best. If anyone had read what KYY put down how he made big in Supermax and the HK real estate company, obviously u can c he dare to hoot big during crisis. So, what it counts here is "Volume" and "Timing". Basically u just have to be patience wait for right timing to come...When it comes...must have confidence to load up even with margin...If u r mentally not prepare, no matter how well u master FA or TA, u r not going to be super investor.

Posted by Chi Fei > 2016-12-26 00:37 | Report Abuse

Very good summary of your articles from the past. Thank you for your generous sharing all this while in i3. Merry Christmas!

Posted by supersaiyan3 > 2016-12-26 00:45 | Report Abuse

Wow, you almost cover everything! Great work!

You don't have to be sorry for doing the right thing, i know why you write those passages, just to tell what is right/wrong.

The stock market is a complex adaptive system, everything changes with information flows and the acts of participants influence each other simultaneously too. Your hard work brings more logic and positive energy to the system.

Posted by ccmeow > 2016-12-26 03:20 | Report Abuse

Thanks kc for your great effort in the compilation of articles related to investment.I came across your blog a month ago,and was very impressed by your articles. I will take my time, slowly, to read through all the articles you have posted in i3 and also your own blog.I wish you a very happy and prosperous , Christmas and 2017 New Year.From:Ir. Chong Chin Meow 26/12/2016 03.19am.

Posted by kcchongnz > 2016-12-26 08:06 | Report Abuse

Posted by ccmeow > Dec 26, 2016 03:20 AM | Report Abuse
Thanks kc for your great effort in the compilation of articles related to investment.I came across your blog a month ago,and was very impressed by your articles. I will take my time, slowly, to read through all the articles you have posted in i3 and also your own blog.I wish you a very happy and prosperous , Christmas and 2017 New Year.From:Ir. Chong Chin Meow 26/12/2016 03.19am.


Hi Chin Meow,

What a small world and the power of social media. You are two years my senior in MU Engineering. If I am not mistaken, a senior in Drainage and Irrigation Department too.

Great to hear from you, and merry Christmas.

Posted by 3iii > 2016-12-26 10:46 |

Post removed.Why?

Posted by geary > 2016-12-26 11:55 | Report Abuse

Merry Xmas!!!.Well said 'einvest88'! Just follow Uncle Munger sitting on your 'ASS' investing. Uncle Buffett was changed by his right-hand man also. Buy a wonderful business at a fair price n Not a fair business at a wonderful price! Buy wz conviction, cause it takes only one opportunity to make u really Rich. D best is just buy 10 wonderful business wz full conviction n let d compounding rate of return do its job. Look for company wz double digits ROIC N ROE, net profit margin above 10% even recession, owner earnings growth n free cash flow growth average 7.2 %, EY more than 2X average AAA bond Yield, Dividend Yield of average AAA bond Yield. Zero debt or little liabilities below 5X owner earnings. Capex below 33% of owner earnings. Insiders are buying, plus company been buying back its shares. Gd luck!

Posted by 3iii > 2016-12-26 12:06 | Report Abuse

Geary

This strategy is the best I have encountered.

It is strange that not more people are using this.


Cheers.

Posted by 3iii > 2016-12-26 13:13 | Report Abuse

Fast growers, stalwarts, slow growers
Cyclicals
Asset Plays
Turnarounds

These are the 6 types of companies of Peter Lynch.

Are you wired to capture the investing opportunities of all these 6 groups of companies?

Price is what you pay, value is what you get.

Growers

Slow growers: Growth high single digits annually FCF +++ Dividends +++
Stalwarts: Growth 10% - 20% per year FCF +/++ Dividends +/++
Fast Growers: Growth >20% per year FCF -/+ Dividends minimal to nil
Don't we love the growers?
The danger here is the growth did not materialise.
Or the growth was short lived (short-lived growth).
The danger is overpaying for this growth.
Your better bet is to stay with businesses with durable (long term) competitive advantage.


Cyclicals
Do you know the business cycle of these companies?
These companies are to be bought and sold, not held for long term, usually.
Needs to have certain skill.
Not for the not so initiated.


Asset Plays
Can you value the assets?
Can you spot the undervalued assets before the other investors reprice them?


Turnarounds
These companies have fallen on hard time.
Slowly they are crawling out.
Can you spot them before the other investors do?
Many companies do not turnaround.


Unless you are very familiar with the industry, avoid cyclicals.
Investing in asset plays and turnarounds are challenging too.
Those invested in these may find their investments may remain in the rut longer than they can themselves remain solvent.
The reason being the other investors have not re-priced the stock in the manner of your thinking immediately or it maybe years before this repricing occurs.

Posted by malaysiaku > 2016-12-27 00:37 | Report Abuse

kcchong, keep it up....teruskan usaha kamu..your articles help a lot...terima kasih, bro....

Posted by paperplane2016 > 2016-12-27 01:23 | Report Abuse

Kcchongnz.althought some times I don't agree with you,but I think you make sense mostof the time. Merry Xmas and happy new yr

Posted by John Lu > 2016-12-27 01:24 | Report Abuse

Paper sifu...what is your 2017 pick?

Posted by paperplane2016 > 2016-12-27 01:30 | Report Abuse

You will know yr end mah

Posted by John Lu > 2016-12-27 01:31 | Report Abuse

Very excited to know from a 2016 champion mah

Posted by geary > 2016-12-27 01:59 | Report Abuse

Uncle Munger quote,' Our methodology is too simple, only arithmetic n lower algebra is enough. No need higher algebra or rocket science! That why it's not famous. Uncle Buffett talk about valuation using DCF method, but his right-hand man, never saw him did it actually. Too many variables involved. The two famous investors have strong understanding of its business, they use business common sense to value a business model. The company product or service must has a durable competitive advantage over its competitors, wide economic MOAT! Gd luck!

Posted by malaysiaku > 2016-12-27 02:24 | Report Abuse

kc chong, i only invest in dividend stock type since 2016...memang dapat rezeki tahun ini....http://klse.i3investor.com/blogs/kcchongnz/103906.jsp

Posted by king36 > 2016-12-27 02:35 | Report Abuse

3iii 
When is yr Pt 2 "Common sense approach to selecting a business. " ready?
Pls share.

Posted by malaysiaku > 2016-12-27 02:43 | Report Abuse

yes...aku pun sedang tunggu pt2...3iii, bila lagi nak share dengan kira orang???

Posted by 3iii > 2016-12-27 14:01 | Report Abuse

<<<
king36 3iii
When is yr Pt 2 "Common sense approach to selecting a business. " ready?
Pls share.
27/12/2016 02:35

malaysiaku yes...aku pun sedang tunggu pt2...3iii, bila lagi nak share dengan kira orang???
27/12/2016 02:43>>>


Common sense part 2 was published a while back.

Posted by king36 > 2016-12-27 16:23 | Report Abuse

3iii,
can u be specific, I only got Pt 1 in search.
TQ.

Posted by 3iii > 2016-12-27 17:02 |

Post removed.Why?

Posted by Amdi Hamzah > 2016-12-27 17:09 | Report Abuse

Merry Xmas KC!!! thanks for your generosity of sharing your knowledge through your articles, it is really benefited me as a TA person that also love to learn about FA.

Posted by kcchongnz > 2016-12-27 21:50 | Report Abuse

Posted by einvest88 > Dec 25, 2016 11:43 PM | Report Abuse
It is always gd to put up a lot of articles using whatever basis u like...To me most the this book theory and approach just to create more jobs for ppl otherwise many will be jobless and economy will not grow if all choose to make money from stock market. However, to make big money the simplest approach always the best. If anyone had read what KYY put down how he made big in Supermax and the HK real estate company, obviously u can c he dare to hoot big during crisis. So, what it counts here is "Volume" and "Timing". Basically u just have to be patience wait for right timing to come...When it comes...must have confidence to load up even with margin...If u r mentally not prepare, no matter how well u master FA or TA, u r not going to be super investor.


Good luck to you. anyway, thanks for your comment.

Posted by kcchongnz > 2016-12-27 21:53 | Report Abuse

Posted by R3D3 > Dec 26, 2016 12:08 AM | Report Abuse
Chong: i3 is but a mere reflection of the market and the market being a complex voting machine, just consists of far too many complex personality. Which is why you cannot and should not expect others to follow and agree with your investment principals. In fact, there are those who will strongly disagree with you. As you know, you have strong conviction in your believes in stock investment principals, which is good but then, because of your sttong believes, some might find you arrogant and they would certainly be offended with what you write. It's just life. You cannot change this.


You are right that the market is a complex voting machine. I am just trying to tell my story that maybe it is good to treat it as a weighing machine eventually. Strange that people can get offended.

No, I never expect people to agree with me. That is not my problem.

Thanks for your comments.

Posted by kcchongnz > 2016-12-27 21:56 | Report Abuse

Posted by supersaiyan3 > Dec 26, 2016 12:45 AM | Report Abuse
Wow, you almost cover everything! Great work!
You don't have to be sorry for doing the right thing, i know why you write those passages, just to tell what is right/wrong.
The stock market is a complex adaptive system, everything changes with information flows and the acts of participants influence each other simultaneously too. Your hard work brings more logic and positive energy to the system.


Thank you very much for your comment. You know as a writer in this kind of forum, I always ponder whether it is worthwhile to spend time here here. But each time I read a comment like yours, it keeps me going again.

Thanks again.

Posted by kcchongnz > 2016-12-27 22:00 | Report Abuse

3iii,

Thank you very much for summarizing what I was trying to convey in a long winded article. Very good summary, including that part of "business sense".

Merry Christmas and Happy New year.

Posted by kcchongnz > 2016-12-27 22:03 | Report Abuse

Posted by malaysiaku > Dec 27, 2016 12:37 AM | Report Abuse
kcchong, keep it up....teruskan usaha kamu..your articles help a lot...terima kasih, bro....

Terima kasih malaysiaku. Kamu selalu meberi saya semangat yang diperlui untuk berterus manulis.

Posted by ttwong > 2016-12-27 22:06 | Report Abuse

keep up the good works KC. Btw, your bahasa sxcks... :)

Posted by kcchongnz > 2016-12-27 22:19 | Report Abuse

Posted by Amdi Hamzah > Dec 27, 2016 05:09 PM | Report Abuse
Merry Xmas KC!!! thanks for your generosity of sharing your knowledge through your articles, it is really benefited me as a TA person that also love to learn about FA.


Terima kasih banyak banyak. You have great future.

Posted by 3iii > 2016-12-28 09:03 | Report Abuse

You do not have to be super-intelligent to do value investing. You need common sense and good judgement. Also, you require a refined intellectual framework that helps you resist your emotionak twmptation. You should adopt and incorporate the framework to meet your particular invesring needs.

Posted by king36 > 2016-12-28 14:19 | Report Abuse

TQVM 3iii.
Merry Christmas and a Happy New Year to you ALL.

Posted by bracoli > 2016-12-29 00:00 | Report Abuse

Hi kc for new year at least write a theme for 2017?