Buying fundamentally good stocks are very important for consistent returns . Warren Buffet;s first rule is not to lose money in the first place . Good stocks with good records should be the key selections for first timers as the risk is very small. I started investing in 1998 during the once in a life time big crash when the CI index was between 250 to 600 .I started with RM 170 k using my housing overdraft . Stock investment had given me an average of 18 % ( inclusive of dividend ) annually compounded return . I bought Public Finance , Public bank,Malakoff , KMLoong , WCT , MOX , Maybank, Supermax , Elsoft , Inari ,Penta ,Airasia , Superln . I do not keep the stocks forever . I had sold most of them when it hit my targets or when the quarterly result turn negative . Some stocks gave a return of more than 20 % if you had hold it for more than 10 years . Stocks like Elsoft, Inari, Public Bank, Penta ,Top Glove , Supermx, Kossans , Hartalega ,JHM are good examples .
3iii, I do have my fair share of buying wrong stocks like Megan Media and Protasco . I lost more than 60k on Megan media alone . These stocks appear to make huge profits with low PE . When their cash started to go down unreasonably , we need to cut loss quickly. Fortunately ,such stocks are a small percentage of what I bought . THe other stock which was my favourite for the last 15 years was Uchitech which has consistently deliver good dividend .
Thanks KC Chong . The young investors tend to underestimate the annual return of 18 % .They want super fast return like those in the money games ( promise of 20 % return per month ). More than 90 % of investors got burned due to unrealistic promise of such returns . Many are inpatient and can't see the power of compounding . USing the rule of 72 , it takes 4 years ( 4x18 = 72) for the initial capital to double . Take RM 170k as initial capital , 4 years later the RM 170k becomes RM 340 k. A 20 years of consistent 18% return per year compounding will yield 32 x ( 2 to the power of 5 ) of original capital . It is a solid RM 5.44 million after 20 years of investment with RM 170 k initial capital . If you select good stocks ( slim chance of losing money ) to invest with an average 4 % dividend yield , what it takes is for you to make a 14 % capital gain only to get a cumulative 18 % . If you study the records of last 15 to 20 years for Dutch Lady , Nestle , Panamy , Public Banks , the top 4 gloves companies and the few electronic and semiconductor companies , they had such returns . The key words are "dont lose money "and be patience . The Malay saying " Sedikit sedikit , lama lama jadi bukit " is the best proverb to describe such investment .
sendai would always be used as an example in your article when its share price surge on a sudden... what a strange coincidence... by the way, still agree with what it is written in the article..
DickyMe "Eversendai Corp Bhd's first completed liftboat Vahana Aryan will be delivered by the first week of June, and will be fully commissioned by mid-June." This means they will get payment for that delivery and
"Nathan said its second liftboat is at 35% completion but currently put on hold. We expect to restart the work by next three to six months," he added," With payment coming in, no need to source for funding.
Currently, the group is tendering for about RM20 billion worth of contracts, split equally between structure steel and oil and gas segments. The group foresees a more sizeable contracts going forward. Year to date, the group has secured about RM716 million worth of job wins."
TENDERING FOR RM20 Billion worth of contracts. Dapat 10%, sudah RM2 Billion. Apa lagi mau? 06/06/2018 09:51 ===============
what did I tell you? That this kcchong got lousy sense of timing.
sendai up 2 sen to $ 1.07...and this is only the beginning.
KYY said to KC "comes polish my shoe, I give u 1 millions rupee" KC replied " Oh brother, no need I do for free " KYY said " very kind of you, but you cannot do for free, I give you one tip, go buy eversendai " KC " Oh my thousand thank you boss, i will be rich by just polish shoe, next lesson, the effective ways of shoe polish "
Mahathir has great sense of timing....Think he will do equally well in stock market as in politics.
Mahathir has great sense of timing....wrote his Malay Dilemma just at right time., resigned as PM just at right time, resigned from UMNO just at right time....comes back to politics just at the right time.
Mahathir has great sense of timing......born or cultivated? or just lucky? mathematically it is difficult to tell luck from born and cultivated.
the reason why people say stock market is about FA and TA is because these are teachable skills. But , if that is necessary and sufficient , all the finance professors in the world would be highly successful. But we already know that is not true.
so, there are myths...and there are realities.
business sense and the ability to tell whether cup is half full or half empty....that would be the real necessary and sufficient conditions for success. ...but very difficult to teach.
Everyday, every transaction, sellers are negative and think it is half empty , buyers are positive and think it is half full and only one of the them is correct. The dilemma every one faces everyday, every transaction is ....whether it is really cup half full or half empty?
Wouldn't you want to be the one making the correct decisions?
Two highly trained fund managers , each with full knowledge of the situation and the said invested companies....one can be a seller, the other a buyer. But only one can be right.
Is it an innate skill or a cultivable skill? Nature or nurture?
Difficult questions.
More research is needed. Suffice to say, it is a thinking man's game. A thinking man's game in which luck plays a big and important part, yet a thinking man must try to improve his odds through constant practise and experiments.
when people says stock market is about FA and TA vs when people says stock market is about business sense, about cup half full or cup half empty, about the great sense of timing
there is a great difference in the approach, in the thought process, and in the final outcome.
when people says stock market is about FA and TA....the tendency is to be too mathematical, the question becomes what PE or NTA should I sell/buy....the tendency is to take the human out of the equation, the tendency is to be too static and predictable, the tendency is to be inflexible, a portfolio full of shares sharing the same characteristics.
when people says stock market is about business sense....it is placing business sense at the top of the priority. The question then becomes what is the business sense of owning this particular share at this particular point in time. Its a great filter.
when people says stock market is about cup half full or cup half empty...it is recognising the dual nature of the stock market, that there are always pros and cons, the yin yang of the market, and that ultimately stock market is about choices and decisions....and the ability to make decisions based on imperfect information. Some people can make decisions , others cannot.
when people says stock market is about the great sense of timing, it emphasis that the sense of timing can be developed. That it is easier to swim down stream, easier to go with the flow than to swim upstream...that prices go up slowly and can drop quickly. That it is tough to go against the prevailing trend. They call this trend analysis.
In business, in politics and in stock market, some people have highly developed sense of timing.
In stock selection it is business sense first then followed by management quality and finally to review the available records and projections....not the other way round.
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
abang_misai
2,516 posts
Posted by abang_misai > 2018-06-16 21:06 | Report Abuse
Mau cari gaduh kah? Write like a professor but Hevea promoted is dying.