Posted by Choivo Capital > 2019-02-23 11:14 | Report Abuse

Fantastic book

I still go back to it every other month.

Posted by 3iii > 2019-02-23 12:43 | Report Abuse

An excellent book with worldly wisdom for good living and rewarding investing.

Posted by Sslee > 2019-02-23 15:19 | Report Abuse

Dear all,
I am not a very keen reader on Investment books as I prefer to read books on spirituality and biography.
I can recommend below book to you so that you can live a happy and balance life.
https://en.wikipedia.org/wiki/The_Power_of_Now
The Power of Now: A Guide to Spiritual Enlightenment
By: Eckhart Tolle
The book draws from a variety of "spiritual traditions",[5] and has been described by one reviewer as "Buddhism mixed with mysticism and a few references to Jesus Christ, a sort of New Age re-working of Zen."[6] It uses these traditions to describe a "belief system based on living in the present moment".[7] Its core message is that people's emotional problems are rooted in their identification with their minds.[8] The author writes that an individual should be aware of their "present moment" instead of losing themselves in worry and anxiety about the past or future.[2]
According to the book, only the present moment is important,[5] and both an individual's past and future is created by their thoughts.[6] The author maintains that people's insistence that they have control of their life is an illusion "that only brings pain".[5] The book also describes methods of relaxation and meditation to aid readers in anchoring themselves in the present.[5] These suggestions include slowing down life by avoiding multi-tasking, spending time in nature, and letting go of worries about the future.[9] Some of the concepts contained in The Power of Now, such as the human ego and its negative effects on happiness, are further elaborated in the author's later books, in particular A New Earth: Awakening to Your Life's Purpose (2005).[7]

To make the journey into The Power of Now we will need to leave our analytical mind and its false created self, the ego, behind. Although the journey is challenging, Eckhart Tolle offers simple language and a question and answer format to show us how to silence our thoughts and create a liberated life.

Surrender to the present moment, where problems do not exist. It is here we find our joy, are able to embrace our true selves and discover that we are already complete and perfect. If we are able to be fully present and take each step in the Now we will be opening ourselves to the transforming experience of The Power of Now.

Thank you

Posted by PureBULL . > 2019-02-23 15:31 | Report Abuse

Dear Sslee,
My fellow in engineering,
HERE's to make easy MONEY in stocks EVERY YR in Msia, mostly from plc by those bosses from boh.tak.chet university.

Tis Msia not U.S.A. where talents r proven definitely only from IVY league biz school UNI.


KEY:
there r few STOCKS will fly like crazzzy every yr in KLSE.

WE in i3, must make MONEY in those
TOGETHER n MORE ...

Posted by KLCI Going Heaven > 2019-02-23 20:12 | Report Abuse

Casino Bursa Malaysia, no place for books. Just make your bet, pick popular counter, buy it, pray it goes up. Repeat

Posted by (S = Qr) Philip > 2019-02-23 21:01 | Report Abuse

Sslee if you are not a keen reader or intent in widening your investing knowledge, why do you even bother buying stocks? It will lose you money in the long run if you have no idea what you are doing.

I would advise you to just put your money in the fixed deposit and pick a quiet temple somewhere you no longer need money.

Posted by (S = Qr) Philip > 2019-02-23 21:02 | Report Abuse

I thought i3 was an investing forum? It is funny how word information gets passed around.

Posted by hollandking > 2019-02-23 21:14 | Report Abuse

I like KLCI Going Heaven forthrightness

Posted by hollandking > 2019-02-23 21:21 | Report Abuse

In some religion, there's something called creating your own world, something like that, u redefine certain things, that way it takes away lots of problems by defining what is what,what should be, what shouldn't be. But this is what is called bcoz u can't find an answer, so you create or redefine certain things. Is it the truth, I can't be sure, but based on what I've seen they redefine or define certain things thus eliminating the obstacles by cutting it off.

Posted by hollandking > 2019-02-23 21:23 | Report Abuse

after the first person created the definition, others follow, things became easier for them but they may lose the understanding of the first person and something different might be experience is the first, thet truth or the later is the truth, is hard to say, right can become wrong, wrong can become right.

Posted by hollandking > 2019-02-23 21:24 | Report Abuse

so if like that, what should u do, u have to experience and learn for yourself and not believe 100% what others tell you what should be. If you don't experience for yourself, u can't say is the truth bcoz others say so.

Posted by hollandking > 2019-02-23 21:25 | Report Abuse

the most dangerous part is when u believe in something 100%, u already created a fence, this fence will isolate you from outside.

Posted by hollandking > 2019-02-23 21:27 | Report Abuse

believe in something 100% without experiencing is what is called defining something regardless of whether if it is the truth or not. Take it as is.

Posted by hollandking > 2019-02-23 21:29 | Report Abuse

U can see this happened to many, and they are trapped. A person if he find spiritual development, he will changed, he will not do bad things, if otherwise, those are fakes, he is deceiving himself or being deceived

Posted by hollandking > 2019-02-23 21:34 | Report Abuse

Now we talk about faith, faith isn't something u can say I'm strong in faith, Im' 100% strong, faith comes from within, faith is slowly build up through experience in life, is like 1 step at a time, multipe events in your life, each piling up building that faith. U think u have faith, but you don't if you don't have this building process. Is all fake faith without this experiencing and learning processes, one step at all time all add up together building up that faith. Anyone who say got faith, ask yourself, did this building up process happened to you? Please, I'm not saying U pray to god, kena 4d, so yeah I experienced God. I'm talking about the things that happened in your life, what took place and things that happened later on, that were arranged to changed you.

Posted by Sslee > 2019-02-23 22:08 | Report Abuse

Dear Philip,
No a very keen reader of investment books and not reading investment books is totally two different things. Similarly spirituality and religion are totally two different things. https://klse.i3investor.com/blogs/Sslee_blog/188217.jsp
So thank you for your book recommendation. Learning how to invest is very useful to train your brain to think beyond hard figures but also deeper into business competitive advantage. I am learning investing in preparation for my life after retirement in doing something useful and interesting that can bring benefit to self and all.

Thank you
P/S: I3investor is not solely about investment but it also about social interaction, exchange of idea and for better future thus all are welcome to discuss anything under the sun.

Posted by PureBULL . > 2019-02-24 05:26 | Report Abuse

(S = Qr) Philip is a great talent in i3.
So good to have him on board.
Philip's stock selection for investing is simply superb.
I think he knows how biz works n how it can work BETTER.

BUT keep holding stocks long term without paying attention to price cycle n right timing for exit n entry can be BORING.

Every Q after QR, few select stocks will fly.
We must make those money n usually the price increase is v v explosive !

Posted by (S = Qr) Philip > 2019-02-24 07:23 | Report Abuse

Hi purebull,

That is the essence of true investing.

Investing is supposed to be boring, slow and watching paint dry.

The bigger the sums you invest, the less action you need to do, the more reading you need to have.

Action needs to be decisive, because majority of stocks will not give you good returns long term.

One of the mental models I use for stocks is the 80/20 rule. In business, 20% of the population control the other 80%. Therefore in this case, I operate on the assumption that 80% of the stocks in bursa are crap, and only 20% above average.

It makes it easy for me to just skip through a lot of financial report and start applying other mental models on the 20% to define my opportunity costs.

*****

I guess if we wanted more excitement I'd go to the casino instead.

Posted by stockraider > 2019-02-24 11:06 | Report Abuse

Using this theory....Growth investment in quality stock hard to come by mah....!!

Example u have about 200 stock for selection....!!

Then 80/20 criteria for affordable price loh...use are left with 40 stock universe loh...!!

Then of these stock...u need to stay on your competence...or your research do not cover so wide that means u left with 8 stocks loh..!!

The limitation of margin of safety stock investment are less constraints and more opportunity loh...!!

Posted by (S = Qr) Philip > 2019-02-24 11:28 | Report Abuse

Just because you end up buying 5 stocks doesn't mean you don't research and read in the other 2000. Oversimplification is silly.

If you run on the assumption that you can only buy 20 stocks in your lifetime, you better make sure that your investment is rock solid.

But if you are right, and it is easier to be right if you stop buying everything and choose only the wonderful companies, you will be rewarded for more than you can believe.

Put it this way, when you were in school you had like 30-40 students in class. If you could bet on which students would do well in the next exam, would you bet on the top 5 students with the best results during the last exam? Those who were the hardest working and dedicated ones?

Or would you pick all the students to do well and diversify your risks?

Or would pick the top half of the students who did reasonably well with a margin of safety?

That is what Charlie is advocating and changed the mind of Warren buffet from pure margin of safety or buying fair companies at wonderful prices to buying wonderful companies at fair prices.

Yes wonderful companies are hard to come buy, no one day it is not.

But consider this, when you do find one, you can invest big capital into that one great idea ( all your money into that one top student who did well during the last exam), knowing the chances he will do well is much higher than sharing your betting money on the middle half ( fairly smart students who can do ok).

When you have 80-99% of a sure thing, you can afford to sailang and make big money at low risk. I'm not taking free hundred ringgit, I'm talking hundreds of thousands into millions of dollars.

When you are not so sure of your investment, you will never dare to put big sums of money into a stock idea.

Just think about it: if you were sure INSAS was a wonderful company, and it will definitely go to rm3(because you think fair value is rm3), why are you buying sapura and jcy and other companies with lower opportunities? Just put all of it into INSAS and get 500% gain( from 0.60 to rm3) over 2 years.

But because you are not sure what to value, and you don't know your stock well enough, you choose to "diversify". Into sapura, etc etc etc.

Charlie munger-" diversification is a protection against ignorance.

I fully agree.

Posted by qqq3 > 2019-02-24 11:47 | Report Abuse

Posted by (S = Qr) Philip > Feb 24, 2019 11:28 AM | Report Abuse

Charlie munger-" diversification is a protection against ignorance.
===========

the academic approach is random walk theory, anyway.

and members of investing public lives in ignorance anyway......mostly.

they talk for the majority...when I talk about sailang and margin....everybody starts deleting my posts........

I guess who is more important than what ( is written)

Posted by qqq3 > 2019-02-24 12:01 | Report Abuse

branding and growth limits....

in America, u can have See and unlimited growth....

in Malaysia, how?

Posted by (S = Qr) Philip > 2019-02-24 12:06 | Report Abuse

Topglove is 25% of world glove market.

Posted by qqq3 > 2019-02-24 12:24 | Report Abuse

fund managers priority is not to lose to peers....they don't need to win...

Posted by Shinnzaii > 2019-02-24 12:33 | Report Abuse

Posted by qqq3 > Feb 24, 2019 12:22 PM | Report Abuse

In Malaysia....you have

-the Philips
-the rubbish collectors and their margin of safety
-the cigar butters ( research houses )
- the National service guys ( PNB and Khazanah)
-the Index funds ( most fund managers)
- the KYYs

- those who never make it
-those who are destined to fail.....

who u want to be? which group u rather be?

That is not important...important is what you learn from them...everyone invest differently...got people like increased profit each quarter, got people like NTA, got people like business sense...

Posted by qqq3 > 2019-02-24 12:36 | Report Abuse

In Malaysia....you have

-the Philips
-the rubbish collectors and their margin of safety
-the cigar butters ( research houses )
- the National service guys ( PNB and Khazanah)
-the Index funds ( most fund managers)
- the KYYs

- those who never make it
-those who are destined to fail.....

who u want to be? which group u rather be?

Posted by Apabagus > 2019-02-24 12:40 | Report Abuse

qqq3,you miss out of one more catepory....the PLP's....wakaka

Posted by qqq3 > 2019-02-24 12:48 | Report Abuse

what's wrong with the PLPs?

never wrong to be smart

Posted by Apabagus > 2019-02-24 12:52 | Report Abuse

qqq3,i now have to crown you the title "PLP King of i3".You seem to enjoy plp n you seem to be proud of it.

Posted by qqq3 > 2019-02-24 12:53 | Report Abuse

bagus.....not that I am proud of title....but what other people say don't bother me.....I am a Zen trader.....

Posted by qqq3 > 2019-02-24 12:54 | Report Abuse

ok....I add one more category...the zen traders.

Posted by qqq3 > 2019-02-24 12:54 | Report Abuse

In Malaysia....you have

-the Philips
-the rubbish collectors and their margin of safety
-the cigar butters ( research houses )
- the National service guys ( PNB and Khazanah)
-the Index funds ( most fund managers)
- the KYYs
-the Zen traders

- those who never make it
-those who are destined to fail.....

who u want to be? which group u rather be?

Posted by qqq3 > 2019-02-24 13:20 | Report Abuse

and then, there are the DYFs and people attracted to DYFs........


https://www.fa-mag.com/news/a-mysterious-8-500--stock-gain-attracts-big-funds--big-questions-43441.html

Posted by qqq3 > 2019-02-24 13:22 | Report Abuse

I am sure there are people creative enough to know why DYF is a good buy at this price.........

Posted by qqq3 > 2019-02-24 13:25 | Report Abuse

He retired in 2000 to devote himself to the study of integrating Eastern traditional wisdom and modern investment, and the techniques of capital operation and game theory. Leveraging his new insight, he developed the ‘Zen & I-Ching Investment Theory,’ becoming another innovative way of investment following in the footsteps of Warren Buffet’s (sic) value investing and George Soros’s hedge fund investing.

Posted by Sslee > 2019-02-24 14:16 | Report Abuse

Repost from other forum:
Dear Philip,
From Warren own word: My cigar-butt strategy worked very well while I was managing small sums. Indeed, the many dozens of free puffs I obtained in the 1950s made that decade by far the best of my life for both relative and absolute investment performance
Most of my gains in those early years, though, came from investments in mediocre companies that traded at bargain prices. Ben Graham had taught me that technique, and it worked. But a major weakness in this approach gradually became apparent: Cigar-butt investing was scalable only to a point. With large sums, it would never work well.
Many of the retail investors in i3 are small sum investor thus nothing wrong if they follow Ben Graham’s investments in mediocre companies that traded at bargain prices.

For my-self I only put 1/3 of my cash worth in stocks investment and I divided my stocks selection into deep value stocks, dividend stocks, trading stocks (theme play) and lately following your advice growth + dividend stock.

https://www.nytimes.com/2019/02/23/business/dealbook/buffett-annual-letter-berkshire.html
The conglomerate controlled by Warren E. Buffett suffered losses of $25.4 billion in the fourth quarter, according to Berkshire’s annual report that was released on Saturday.
Problems at Kraft Heinz, which on Thursday reported weak fourth-quarter earnings and a $15.4 billion write-down, also weighed on Berkshire, which owns a nearly 27 percent stake in the food company.

A word of caution keeping cash is also a form of prudent and conservative investment. Remember during the past market crash many people wish he/she had hold cash and spoil for choice to buy wonderful companies at the fraction of its price.

Thank you.
P/S: Growth is only good if it is above the cost of capital. By chasing growth with borrowing money is a risk. By assuming the success story can be duplicated and scaled up in foreign countries is a dangerous thought especially bread and butter business as many countries will give priority to their own local companies for self interest and food security.

Posted by (S = Qr) Philip > 2019-02-24 14:25 | Report Abuse

There is no such thing as big sums and small sums in investing. The risk is the same with either amount.

Buying a rm0.20 cent share is the same as buying a rm20 one.

If it drops by half you lose both ways.

I would argue due to the concept of compounding long term of gains, it is far more important to invest properly with small sums where you cannot afford mistakes or loss of capital, than it is to invest large sums where you would already have more than enough to live a comfortable life.

But to each his own.

Losing 200k when you can ill afford it is more difficult than losing 2 million when you have millions to spare.

I speak from bitter experience.

Posted by Apabagus > 2019-02-24 15:37 | Report Abuse

Aiyoh every time i see you phil you are so serious.Loose up,investing can be fun too.Come crack some jokes.

Posted by Apabagus > 2019-02-24 15:45 | Report Abuse

By the way phil buying a 20 sen share is different than buying a 20 ringgit share in tthat every 2 sen gain is a gain of 10 %,which is far easier to achieve than a 2 ringgit gain for the 20 ringgit share.Of course you will never know this given your fascination with high priced stocks.

Posted by (S = Qr) Philip > 2019-02-24 22:24 | Report Abuse

That is where you are oh so wrong.

I have bought cheap penny shares for many years during the 90's.

And if you think that 2 dollar gain from 20 dollars is harder to get than 2 cents from 20 cents, then you really have much to learn about buying stocks.

Posted by Apabagus > 2019-02-25 12:58 | Report Abuse

Not really phil,cos you dunno who i am,actually i did it quite often,not 10%,but 20% or more within days.Yes it is days,not years.

Posted by (S = Qr) Philip > 2019-02-26 00:59 | Report Abuse

Sure thing. I have done gains of 50-100% back then in 90's as well. But let's not talk percentages, how much is the sums? Small sums? A few thousand? Tens of thousands? How long could you keep it up? 1 month? 1 year? Sooner or later those kind of investing method sure will come back to bite the ass... I know this from bitter experience.

In the end, you know how I made big money? 10 year holdings and every quarter top up like clockwork. In QL and topglove. Never sold a single share for 10 years. Then with PBB, then with YINSON, now with PCHEM. And the biggest earner do far, STNE ( NYSE). You know how many times I cut loss? Zero.

Trust me. Anyone who tells you they can average 10-20% in days, consistently for years, reinvesting larger and larger sums, compounding all retained gains for more than 10 years all by trading short term? I call bullshit.

I try to stay away from "those" kind of people.

It just can't be done. If you could compound 20% gains in days( or even months) in larger and larger amounts day after day, year after year. Warren Buffett will hire you as the new successor to Berkshire. No questions asked.

5-50k sure, can believe. You try investing 1-10 million. Can get 20% gains in days? Do the math. In 10 years, if you could compound your gains and get your 20% in days consistently for 6 months in a year, and do it without cut loss for 10 years, you would have turned 50,000 into around 100m... Yes doubling your equity position every year. Wow.

If so, I humbly ask you to show me your portfolio and 5 year annual statements, I will hand over my entire topglove portfolio to you to invest (2 million shares reinvested since 2009 till 2019 starting from rm500k) QL stock, STNE (500k units), PCHEM. l will give it all to you, you can name any profit margin you want. Escrow account. Losses I bear. Profits you earn. I take 10% per year.

Deal? Bernie Madoff also kalah to Malaysian maestro.

Posted by (S = Qr) Philip > 2019-02-26 01:01 | Report Abuse

Btw I am interested in knowing what plp means. What does PLP stand for?

Posted by sich > 2019-03-08 20:51 | Report Abuse

PLP stands for Po Lan Pa.
It means carry balls...to flatter someone. It's hokkien dialect.

-------
Posted by (S = Qr) Philip > Feb 26, 2019 01:01 AM | Report Abuse
Btw I am interested in knowing what plp means. What does PLP stand for?