Posted by observatory > 2024-01-31 22:58 | Report Abuse

What happened in 2020, besides Covid?

Could it be the innocuous single sentence mentioning RM6.68m dual listing expenses slipped into page 14 of 2020 Q4 report?

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3073067

Posted by observatory > 2024-01-31 22:58 | Report Abuse

This time round, will more directors leave due to “other commitments” or “personal health issues”?

Posted by FastMoney666 > 2024-01-31 23:59 | Report Abuse

Need some buy some Amway products to purify the toxic air in the office....even though they met only a couple of times a year 🤐🤐

Posted by FastMoney666 > 2024-02-01 00:02 | Report Abuse

Rare! Iconic! Irony!

Posted by dumbMoney > 2024-02-01 00:48 | Report Abuse

Under the notice/announcement on a director's resignation to Bursa, there are these two other check boxes to be filled: "Details of any disagreement that
he/she has with the Board of
Directors
Whether there are any matters
that need to be brought to the
attention of shareholders" These are not there for show only, as ticking no indicate that the director is in agreement with the rest of the Board and there are no matters that need to be brought to the attention of the shareholders during their tenure for the record. That is why the ex Chairman needed an amendment to his resignation notice for the record, from "No" to "yes" for the first question.

Posted by Patient Investor > 2024-02-01 21:08 | Report Abuse

@observatory How about buy one shares so can ask the BOD on upcoming EGM / AGM? Would be good if more active shareholders questioning the BOD.


For iCap shareholders who want to sell, take advantage of the situation by queuing at high price as close as possible to NAV, or even at a premium.

Why?
1. Despite being redflagged on governance and lousy fund management/policy in i3 forum on daily basis, COL is still buying.
2. Since COL keeps buying even the row with the fund manner, it means they need to buy, so take advantage when demand is there.
3. If someone is bidding for the rights to slaughter our goose and if lucky we get a fair portion of the egg but none after that, wont you want a premium to it? So never sell at a discount price.

Posted by observatory > 2024-02-01 21:35 | Report Abuse

For most people, the string of resignations is sufficient to raise an alarm bell. For those who choose to look the other way, no amount of evidence will be sufficient.

I’m not so naive as to expect I can get a straight answer from AGMs, regardless of whether I hold one share or > 20% of shares.

As said before, I continue to stay away from value traps. No, not even a single share.

Good luck to whoever hoping to sell close to or even higher than NAV.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-02-01 21:39 | Report Abuse

iCap is a value trap. Has been for many years already. For those wishing to cash out of this fund, it will be at a huge discount.

Maybe convert this closed end fund to a mutual fund. ;-)

Posted by dumbMoney > 2024-02-02 12:24 | Report Abuse

@Integrity You mean something like this? https://www.dropbox.com/scl/fi/av6ts3njg607yxqmyjc8a/OUS-1990-news-cutting.pdf?rlkey=wdzqbxk4mqhjhaqthi5rzn0l1&dl=0 Been there, done that, and OUS is history already.

Posted by JohnD0ugh > 2024-02-04 19:32 | Report Abuse

In this 2023 annual report, we are pleased to feature an interview with Mr Yee Kwok Leung from Johor Bahru, one of the individuals whom we managed to attract back in 2005. He now is the most senior shareowner of icapital.biz Berhad and intends to own his shares forever.

Introduction
Mr Yee: 1 am now 89+ years old already. I live in Taman Nong Chik, Johor Bahru. I am very happy to be able to meet all of you especially Mr Tan Teng Boo whom I always admire as the Great Thinker of the East. You know, people compare him to Warren Buffett of the West, but I call him the 'Great Thinker of The East".

Q1 What were you doing before you retired?
Mr Yee: I was a civil engineer.

Q2 How long have you been investing in the stock market?
Mr Yee: More than 60 years. Like Mr Tan, he was involved in investment, very very long. Same.

Q3 When and how did you discover icapital.biz Berhad?
Mr Yee: When did I discover? Maybe 15 years ago? From the very beginning, from the inception of icapital biz Berhad (in 2005).

Q4 How did you discover it? Your friends? Your family?
Mr Yee: All by myself. I am quite interested in stocks and shares since very young.

Q5 So, is it because of the IPO?
Mr Yee: Yes, yes.

Q6 What attracted you to icapital.biz Berhad?
Mr Yee: The company. Although I invest in other things but I still think long term investment is also important and as Mr Tan always says "value investing is very important" and that is how I landed.

Q7 When you first invested in icapital biz Berhad in 2005, you were already 73 years old. What was your reason for buying shares of icapital.biz Berhad?
Mr Yee: I have full faith in i Capital, Capital Dynamics managed by Mr Tan.

Posted by JohnD0ugh > 2024-02-04 19:33 | Report Abuse

Q8 Did you get to know Teng Boo much earlier on already?
Mr Yee: Yes.

Q9 How did you come to know about Teng Boo?
Mr Yee: From the i Capital newsletter. As a matter of fact, I even talked to Mr Tan long long ago. I was in trouble with shares, and I rang up i Capital office and it so happened that he was not overseas or anywhere, and he spent time to advise me. And because of the advice, I managed to get out of it at least in a small way.

Q10 Why did you want to invest for the long term when you were already in your 70s?
Mr Yee: Actually, I keep it because I have other investments so l can afford to keep it and I can pass it on to my children and grandchildren. And as Mr Tan says, it's for long term. It's not for the short term. Long term means as he says in decades: It is not a few years, not three days. So, it is okay and I think US financial, economic problems are overdue, you know. The Big Depression that will come in 2025 or even earlier I don't know. But what I know, even now, i Capital is doing fine and as the time comes, and when it comes it will be quick and sudden. And I'm sure Mr Tan and the team will definitely know how to pick up undervalued stocks and will pass them to my children, and no problem. It's a good time. It's a bad time for certain people. It's a good time for closed-end fund, for icapital.biz Berhad.

Q11 What makes you believe in i Capital and Tan Teng Boo?
Mr Yee: I admire Teng Boo as "The Thinker of The East", and another thing I admire him is, I don't know where he gets his energy, he doesn't seem to sleep! I don't know, I don't know his private life but from what I know, from what I read, he is full of energy. And the thing that impressed me is he is a very enlightened person; he knows so many things. Not only is he an investment guru but sometimes he throws a little bit of philosophy, you know and the world culture, political system, not everything that one can think of, especially on China. People like us even in my age I also don't know enough about China but he knows so much about China. Not many people have knowledge of that. So, that alone really is enough for me to admire Mr Tan Teng Boo.

Q12 What would you tell someone who is considering investing in icapital.biz Berhad?
Mr Yee: For the young people, yes, I will tell them. I will say, this is the opportunity of a lifetime. Yes. And this depression coming maybe even worse than 1930, it is a historic epic decline you know, a collapse. It's going to be very bad. The young people like you, need to prepare and hope for the best.

TTB: As another senior citizen, what is the hope for the future of Malaysia? You didn't migrate, I didn't migrate.
Mr Yee: If Anwar can continue, and they take 5-10 years maybe, 2-3 more elections maybe will be okay. If Anwar is in charge maybe yes, I hope. There is some hope for everybody.
TTB: I asked you that question that is not investment related but because sometimes, obviously, you love the country, I love the country, that's why. So, sometimes when we look for all kinds of directions, we look for all kinds of clues.
Despite our age, sometimes, I have no answer.
Mr Yee: Despite your knowledge ......
TTB: I am not a religious person, I am not a Christian, I'm not a Buddhist and so on, I'm more.. in terms of philosophy, I am more of a Taoist. The thing is if we look through history, if we looked through all the philosophy and so on, what is going to be the future of Malaysia?
Mr Yee: Well, Malaysians may have some hope if there is a shift from the west to the east. As I remember, Xi Jinping mentioned "history will prove that we are right, on the right side of history" So if that come to path and as you know, and you wrote a lot about Anwar going to China, he should know where he should go to, so it should be okay. Long term of course maybe 10 or 20 years, maybe the next century for your children, your grandchildren maybe. For us...
TTB: At our age, it is not about dollar and cent anymore. At our age we have got enough whatever it is already. But more importantly is, what we leave behind. What sort of society, what sort of country we leave behind. Thank you.


i Capital.biz Berhad 2023 Annual Report

Posted by Sslee > 2024-02-04 19:41 |

Post removed.Why?

Posted by Sslee > 2024-02-04 19:54 | Report Abuse

TTB: At our age, it is not about dollar and cent anymore. At our age we have got enough whatever it is already. But more importantly is, what we leave behind. What sort of society, what sort of country we leave behind. Thank you.

Can someone in the next AGM ask TTB "At our age, it is not about dollar and cent anymore. At our age we have got enough whatever it is already"

Will TTB work for free?

Posted by Sslee > 2024-02-05 08:37 | Report Abuse

INDIVIDUAL QUARTER: CUMULATIVE QUARTER
30/11/2023 : 30/11/2022: 30/11/2023: 30/11/2022
RM’000 RM’000 RM’000 RM’000
Professional fees and other operating expenses
(2,735) (2,046) (5,031) (4,054)

Posted by Sslee > 2024-02-05 10:55 | Report Abuse

1.00 US Dollar =
4.7558657 Malaysian Ringgits
1 MYR = 0.210267 USD

View transfer quote
US Dollar to Malaysian Ringgit conversion — Last updated Feb 5, 2024, 02:46 UTC

But more importantly is, what we leave behind. What sort of society, what sort of country we leave behind.

So tell me again do we leave this world a little better than we found it???

Posted by Patient Investor > 2024-02-06 10:39 | Report Abuse

@Sslee want me to proxy you with one share to post those questions during EGM/AGM?

For iCap shareholders who want to sell, take advantage of the situation by queuing at high price as close as possible to NAV, or even at a premium.

Why?
1. Despite being redflagged on governance and lousy fund management/policy in i3 forum on daily basis, COL is still buying.
2. Since COL keeps buying even the row with the fund manner, it means they need to buy, so take advantage when demand is there.
3. If someone is bidding for the rights to slaughter our goose and if lucky we get a fair portion of the egg but none after that, wont you want a premium to it? So never sell at a discount price.

Posted by dumbMoney > 2024-02-07 11:27 | Report Abuse

Haha, why some company directors resign for health reason. Being one can be bad for one's financial health. https://www.straitstimes.com/business/directors-in-breach-of-fiduciary-duties-can-face-severe-liabilities

Posted by JohnD0ugh > 2024-02-11 17:09 | Report Abuse

Should we still think and focus long term? A short answer is yes. The experience of a still sprightly Mr Yee is very enlightening and inspiring. He was already more than 70 when he first invested in icapital.biz Berhad, at an age where others would have quit.

Before one knows it, almost 19 years have whisked by. I am now 69 and by the time I reach 89, icapital.biz Berhad will have been around for another 20 years. As your Fund's Designated Person, I see a very attractive future ahead for icapital.biz Berhad.

First, after its 2005 inception, icapital.biz Berhad was for many years enjoying a nice premium to NAV as it attracted the right quality of share owners. As I have explained before, share owners, existing and future ones, ultimately bear the responsibility of determining the market price of a listed company especially one such as icapital.biz Berhad.

The type and quality of share owners matter. To be sure, Mr Yee is not the only long-term individual share owner of icapital.biz Berhad shares; there are many others like him with a similar mindset and there are many more out there whom we can appeal to.

I have also explained elsewhere that we have started a long-term strategy/campaign to improve the type and quality of your Fund's share owners and voting structure with a view of getting back to as close as we possibly can to the initial years (I shared some of these ideas in last year's AGM).

There are many components in this exciting strategy, which includes the recently announced innovative dividend policy, the launch of an ICAP Fan Club, increasing individual ownership of your Fund, and having a much fairer voting structure for a collective investment scheme like icapital.biz Berhad and many more.

Throughout the last 20 years, icapital.biz Berhad has undergone a unique journey albeit one with a clear public mission. The next 20 years will see more of these.

To be sure, it is going to be a long haul and to eventually succeed, we will need the support and co-operation of all like-minded individual share owners. Unfortunately, there are a few large voters/ parties who do not think like long-term share or business owners, who are focused on stock prices and act more like your Fund's wrecking ball.

A member of this group joined a forum in 2019 and has since then posted 475 comments, 92% of them of which are on icapital.biz Berhad and are negative. It is useful to repeat what Warren Buffett advised in his 1985 Berkshire Letter :

"Over the long term, there has been a more consistent relationship between Berkshire's market value and business value than has existed for any other publicly-traded equity with which I am familiar. This is a tribute to you. Because you have been rational, interested, and investment-oriented, the market price for Berkshire stock has almost always been sensible. This unusual result has been achieved by a shareholder group with unusual demographics: virtually all of our shareholders are individuals, not institutions."

We will work hard and with our heart to attract and maintain appropriate high quality ownership in icapital.biz Berhad. Your Fund can go back to a premium or close to one as we continue with this next exciting phase of your Fund's unique mission.


i Capital.biz Berhad 2023 Annual Report

Posted by Sslee > 2024-02-11 17:36 | Report Abuse

First, after its 2005 inception, icapital.biz Berhad was for many years enjoying a nice premium to NAV as it attracted the right quality of share owners. As I have explained before, share owners, existing and future ones, ultimately bear the responsibility of determining the market price of a listed company especially one such as icapital.biz Berhad.

Can't believe my eye that icapital actually put the ultimate responsible of icapital market price to shareholders and not the fund manager performance in increasing the book value/NAV of icapital.

Know how many mutibaggers stocks in Berkshire portfolio?
And how many are there in icapital portfolio?

Posted by Sslee > 2024-02-11 17:43 | Report Abuse

We will work hard and with our heart to attract and maintain appropriate high quality ownership in icapital.biz Berhad. Your Fund can go back to a premium or close to one as we continue with this next exciting phase of your Fund's unique mission.

By the way it is none of icapital business to attact and maintain so called high quality or low/poor quality shareholders.

Icapital is ultimately bear the responsibility to grow Icapital Book value/NAV at faster rate as it can. Please work hard and with your soul to get more multibaggers stocks into icapital portfolio. Full stop

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-02-12 11:53 | Report Abuse

>>>

Posted by Sslee > 18 hours ago | Report Abuse

We will work hard and with our heart to attract and maintain appropriate high quality ownership in icapital.biz Berhad. Your Fund can go back to a premium or close to one as we continue with this next exciting phase of your Fund's unique mission.

By the way it is none of icapital business to attact and maintain so called high quality or low/poor quality shareholders.

Icapital is ultimately bear the responsibility to grow Icapital Book value/NAV at faster rate as it can. Please work hard and with your soul to get more multibaggers stocks into icapital portfolio. Full stop
>>>

Yes, stay focus on the most important.

Posted by stockraider > 2024-02-12 12:19 | Report Abuse

This yr icap has improved alot with its improve div matrix balancing the needs of the co, shareholders and the fund manager mah!

Thats why Icap share price had improved loh!

Posted by i3gambler > 2024-02-12 15:39 | Report Abuse

Dividend with DRIP is useless, nothing good at all.
Just like a mini scale of bonus issue, at the end no Cash flow out from the fund, total size or NAV remain the the same.
Anyway most investors like it, I don't know like it for what.

Posted by Patient Investor > 2024-02-12 23:43 | Report Abuse

For iCap shareholders who want to sell, take advantage of the situation by queuing at high price as close as possible to NAV, or even at a premium.

Why?
1. Despite being redflagged on governance and lousy fund management/policy in i3 forum on daily basis, COL is still buying.
2. Since COL keeps buying even the row with the fund manner, it means they need to buy, so take advantage when demand is there.
3. If someone is bidding for the rights to slaughter our goose and if lucky we get a fair portion of the egg but none after that, wont you want a premium to it? So never sell at a discount price.

Posted by EngineeringProfit > 2024-02-13 13:59 | Report Abuse

I'll just keep for now

Posted by JohnD0ugh > 2024-02-18 20:24 | Report Abuse

The Malaysian stock market has not been performing for a long time (incidentally, based on my 50 plus years of experience, there has been only one sustained Malaysian bull run, from end 1974 to June 1981).

For example, when measured from 2002 to 2022, the Jakarta stock market recorded an impressive 14.58% annual compounded gain. In that same period, Malaysia generated only 3.71%, just a tad ahead of Singapore. If measured from 2009 to 2022, Jakarta stock market still clocked in an impressive annual 12.26% compound gain.

In that same period, Malaysia generated a pathetic 3.88%, even lower than Singapore. The stock markets of Thailand, the Philippines and Vietnam also generate much higher returns than Malaysia. Is Malaysia doomed for more of the same ?

From a macro viewpoint, Malaysia's domestic political development has entered a new stage, one which I think promises a better and stable government and hence a better Malaysia. Many Malaysians do not realise that Malaysia's 4th/7th prime minister has had a devastating impact on the country, even when he was not prime minister.

For example, he incessantly attacked prime minister Abdullah Badawi's policies even though most of them made good socio-economic sense to Malaysia and should have been implemented instead of being blocked. Now, thankfully, this extremely wasteful and irresponsible era is coming to an end.

With Malaysia blessed as a country with great and plentiful human talents, the anticipated new era will give birth to a country which will once again be on the right path of fulfilling her potential. I expect the Malaysian stock market to be a beneficiary.


i Capital.biz Berhad 2023 Annual Report

Posted by Patient Investor > 2024-02-19 08:50 | Report Abuse

Bill ackman fund also trades at a NAV discount for long period of time. I’ll put some money into it.

https://seekingalpha.com/article/4612912-pershing-square-holdings-unloved-deeply-discounted-value-proposition

Posted by JohnD0ugh > 2024-02-25 22:02 | Report Abuse

From Oct 2005 to 6 Sep 2023, the MSCI Malaysia index gained 1.84% annually. In the same period, the NAV of icapital.biz Berhad jumped 7.90% annually and its share price compounded 6.61%. This strong performance of your Fund hides many important truths.

To uncover them, let me break this overall performance down into two distinct phases: one with a higher cash level and another with a lower cash level.

From Oct 2005 to Dec 2013 when the cash level of icapital.biz Berhad was lower (it fell to as low at 10.5% in 2009), the NAV of icapital.biz Berhad jumped 14.85% annually and its share price compounded impressively at 11.67% per annum.

In comparison, from Jan 2014 to Dec 2019 when the cash level of your Fund was much higher (it rose to an average of 63.4%), its NAV gained only 0.71% per annum and its share price was essentially flat, even though these were still much better than the MSCI Malaysia index.

Then, from Jan 2020 to Sep 2023 when the cash level of your Fund was falling again, (by Sep 2023, it has fallen to 26.4% from over 63% in end 2019), the NAV of icapital.biz Berhad is once again rising at a higher annual compound rate of 5.06%.

What is even more interesting is that its share price has been rising at an even faster pace of 6.73% compounded annually. At this rate of increase, not only will NAV parity appear, but there could hopefully be a premium again. A lot depends on the Fund having the right quality of share owners and the performance of its future NAV.

From day one, icapital. biz Berhad has been very consistent and disciplined with its value investing approach and therefore its asset allocation. When your Fund sees attractive value, it will invest.

Otherwise it will wait even though the Designated Person has been persistently and publicly harassed by a few certain large investors, parties who are not even share owners of your Fund, for strictly sticking to your Fund's value investing philosophy.

In 1985, Buffett has already cautioned:

"You might think that institutions, with their large staffs of highly-paid and experienced investment professionals, would be a force for stability and reason in financial markets. They are not: stocks heavily owned and constantly monitored by institutions have often been among the most inappropriately valued."


i Capital.biz Berhad 2023 Annual Report

Posted by dumbMoney > 2024-02-25 22:45 | Report Abuse

Sure, if the share price ever goes back to parity, COL will be long gone already, win win for every one.

Posted by Sslee > 2024-02-26 07:01 | Report Abuse

In comparison, from Jan 2014 to Dec 2019 when the cash level of your Fund was much higher (it rose to an average of 63.4%), its NAV gained only 0.71% per annum and its share price was essentially flat, even though these were still much better than the MSCI Malaysia index.

A question that begs to be answered, Why wasted 6 long years from Jan 2014 to Dec 2019 in keeping 63.4% in cash?

Will any investors pay you so much yearly fees just for you to keep the money in the bank?

Posted by Sslee > 2024-02-26 07:04 | Report Abuse

If you have invested in Inari in 2014 what will be your ROI?

Posted by Patient Investor > 2024-02-26 15:43 | Report Abuse

instead of looking at stock price, I rather follow NAV growth and the performance of the holdings company.

SAM, one of Icap largest holdings announced good qtr results, share price rises 30% for past one month (though it has drop significantly over past few months) anyone bought any?

Posted by Patient Investor > 2024-02-26 15:44 | Report Abuse

Looking towards qtr results from Capital A, Padini and KGB.

Posted by ZhugeLiang88 > 2024-02-27 23:11 | Report Abuse

"Bill ackman fund also trades at a NAV discount for long period of time. I’ll put some money into it."

Bill Ackman does sharebuybacks. He understands that when the fund is selling at a discount to its NAV, buybacks benefits everyone (except himself as the fund manager).

Posted by Patient Investor > 2024-02-28 10:32 | Report Abuse

@zhugeliang88

Bill Ackman case illustrates share buy back doesnt narrow NAV discount :p
There's also a so called performance fee charges on the fund :p

You love buy back? invest in berkshire hathaway.

Posted by Sslee > 2024-02-28 17:32 | Report Abuse

Repost:
No wonder today we have waterfall day.
HK got The Ting Hai effect and here we have The TTB effect.

KUALA LUMPUR (Feb 27): The ringgit is expected to hit 4.20-4.40 against the US dollar by year-end in view of the US Federal Reserve’s (Fed) likely interest rate cut decision in anticipation of an economic recession in the US this year, said Capital Dynamics Asset Management Sdn Bhd managing director Tan Teng Boo.

Tan was speaking at a media briefing on the stock market entitled “Is Investing in Malaysia Still Attractive Now?” here on Tuesday

Posted by kukubird27 > 2024-02-29 11:36 | Report Abuse

When discount above 30%, better share buyback, use at lest 10-20% from remaining current cash pool, consider it as invest a counter with guarantee 30% profit per year. If so, ICAP will not miss opportunity if market no crash and can keep hold cash, NAV will also increase. I don't think new dividend system will works. As long term investor, I will not emphasize discounted price because don't want to sell. So far TTB too focus on narrowing discounted price. What long term invstor emphasize is good performance of NAV. Best solution is share buy back if market no crash. TTB is waiting market crash like 2008/09, which already wait for 15 years, actually 2020 is another opportunity, but he didn't take advantage of this opportunity. If you go back 2012 and use 30% share buyback strategy I mentioned above, and assume next 30% discounted price will appear again in every 2 or 3 years, means you have opportunity to share buyback every 2-3 years using 10 or 20% cash, how much current NAV now? I think amazing NAV will cause the discount price range to automatically narrow. Not sure whether TTB learn Kelly Strategy?

Posted by Patient Investor > 2024-02-29 15:40 | Report Abuse

NAV hit 3.80. Thanks Mr. Tan.

For iCap shareholders who want to sell, take advantage of the situation by queuing at high price as close as possible to NAV, or even at a premium.

Why?
1. Despite being redflagged on governance and lousy fund management/policy in i3 forum on daily basis, COL is still buying.
2. Since COL keeps buying even the row with the fund manner, it means they need to buy, so take advantage when demand is there.
3. If someone is bidding for the rights to slaughter our goose and if lucky we get a fair portion of the egg but none after that, wont you want a premium to it? So never sell at a discount price.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-03-01 22:00 | Report Abuse

NAV 3.80
Price 2.81
P/NAV = 0.74

Posted by ZhugeLiang88 > 2024-03-02 01:52 | Report Abuse

@Patient Investor

Buybacks at a discount increases the NAV per share. Do you have problems understanding that?

Posted by Kevin Tam > 2024-03-03 20:26 | Report Abuse

If more retail investor know the gap of NAV of Icap n its share price is more than 20%, with more existed shareholders intro to their friends, the gap can be narrowed within 1-2 years. Many investors still not that familiar with closed end fund. Share buy back can lift the share prices but doesnt really create value. But if the top management n board of directors first priority is to fight COL maybe some share buy back policy ( doesnt need to be aggressive ) can reduce the gap of NAV toward the share price.

Posted by JohnD0ugh > 2024-03-03 20:30 | Report Abuse

At the beginning, I asked a very vital question - should we still think and focus on the long term. It is very easy to sell an investment. You are told it is never wrong to take a profit or do not get emotional with your investment. Charlie Munger has a simple answer for this question.

"The first rule of compounding: Never interrupt it unnecessarily" - Charlie Munger

Munger's advice is one of the most important principles of compounding and a principle that few investors are aware of. Everyone acknowledges the power of compounding.

If you earn 15% per year for 35 years, you will end up with 133 times your money. Unfortunately, investors forget the arithmetic of this is heavily back-end loaded. After 35 years, you have 133 times; after 20, about 16 times and after 10 years, you have about 4 times. So, you do not want to interrupt that compounding unnecessarily.

You better have a compelling reason to sell a winning investment just because the stock has risen 50% for example. Otherwise, your sale is going to look really expensive years later.

A willingness to see your portfolio value rise, fall, and rise anew is required. You cannot get blown out or abandon ship every time the market has a correction. Otherwise, you interrupt the compounding of your investment, which in this case is icapital.biz Berhad.

The combination of Malaysia entering a new and better era, icapital.biz Berhad being able to hold more investments (although this is a function of stock valuation) and a high quality share ownership structure can produce an exciting future for your Fund's NAV and share price.

In the process, let us build and leave behind an icapital.biz Berhad that will be a role model for Malaysian individual investors, and other listed companies to emulate. This way, we can also do our part to contribute to a better Malaysia.


i Capital.biz Berhad 2023 Annual Report

Posted by Sslee > 2024-03-03 21:13 | Report Abuse

The question did icapital NAV growth at 15% per year?

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-03-03 21:19 | Report Abuse

>>>>

Posted by JohnD0ugh > 43 minutes ago | Report Abuse

At the beginning, I asked a very vital question - should we still think and focus on the long term. It is very easy to sell an investment. You are told it is never wrong to take a profit or do not get emotional with your investment. Charlie Munger has a simple answer for this question.

"The first rule of compounding: Never interrupt it unnecessarily" - Charlie Munger

Munger's advice is one of the most important principles of compounding and a principle that few investors are aware of. Everyone acknowledges the power of compounding.

If you earn 15% per year for 35 years, you will end up with 133 times your money. Unfortunately, investors forget the arithmetic of this is heavily back-end loaded. After 35 years, you have 133 times; after 20, about 16 times and after 10 years, you have about 4 times. So, you do not want to interrupt that compounding unnecessarily.

You better have a compelling reason to sell a winning investment just because the stock has risen 50% for example. Otherwise, your sale is going to look really expensive years later.

A willingness to see your portfolio value rise, fall, and rise anew is required. You cannot get blown out or abandon ship every time the market has a correction. Otherwise, you interrupt the compounding of your investment, which in this case is icapital.biz Berhad.

The combination of Malaysia entering a new and better era, icapital.biz Berhad being able to hold more investments (although this is a function of stock valuation) and a high quality share ownership structure can produce an exciting future for your Fund's NAV and share price.

In the process, let us build and leave behind an icapital.biz Berhad that will be a role model for Malaysian individual investors, and other listed companies to emulate. This way, we can also do our part to contribute to a better Malaysia.


i Capital.biz Berhad 2023 Annual Report

>>>>

The power of compounding is truly magical at the end of a long period. Everytime the value of your portfolio doubled, the incremental value is greater than sum of all the values of all the previous period doublings added together.

Posted by ZhugeLiang88 > 2024-03-04 11:23 | Report Abuse

"Share buy back can lift the share prices but doesnt really create value."

Share buyback at a discount to NAV, creates value for BOTH departing and retaining shareholders. For retaining shareholder, the NAV per share immediately rise.

@Kevin Tam, do you need example to understand this basic maths?

Posted by Patient Investor > 2024-03-05 09:41 | Report Abuse

@zhuge

Doing share buy back increase overall fund exposure to portfolio holdings. fund managers has their own strategy in managing exposure, else he would have bought more of certain stocks with all the idle cash.

If you believe a CEF should do buy back whenever its trading below NAV, go set up a CEF togather with Dumbmoney, and in the prospectus state whenever the fund is trading NAV, the manager is obligated to do buy back. Then we can compare your fund performance in shareholder equity vs icap.
0 seconds ago

Posted by ZhugeLiang88 > 2024-03-05 13:32 | Report Abuse

@patient

"Doing share buy back increase overall fund exposure to portfolio holdings."

Might not be so. The fund manager can sell all stock holdings and cash proportionately. Not necessarily just use Cash. And by selling proportionately all the stocks in the portfolio and cash,
1) The NAV per share rises, and
2) The fund manager still have cash (in the same proportion) as before share buyback.

As for performance, can compare with Icap with Berkshire.

Posted by Patient Investor > 2024-03-05 14:57 | Report Abuse

@zhuge I dont think fair to compare icap with berkshire, berkshire has the whole world to invest. Warren is also another level compare to icap.

What the fund manager want to buy sell is according to his investment style. There are hundreds of funds in malaysia, you tell me how many funds can keep 50% cash for so long yet grow the NAV at this rate.

Posted by Patient Investor > 2024-03-05 14:57 | Report Abuse

For iCap shareholders who want to sell, take advantage of the situation by queuing at high price as close as possible to NAV, or even at a premium.

Why?
1. Despite being redflagged on governance and lousy fund management/policy in i3 forum on daily basis, COL is still buying.
2. Since COL keeps buying even the row with the fund manner, it means they need to buy, so take advantage when demand is there.
3. If someone is bidding for the rights to slaughter our goose and if lucky we get a fair portion of the egg but none after that, wont you want a premium to it? So never sell at a discount price.

Posted by EngineeringProfit > 2024-03-05 15:37 | Report Abuse

I still parking 1 mil here (from below 2.00)