Posted by eagleis > 2012-05-26 10:21 | Report Abuse

1. Avoid company which doesn't pay dividend after announcing huge profits for a couple of years. Buy only company which pays good part of the profits as dividend because hard $ needs to be credited into the shareholders' account. 2. Don't fall in love with any company. 3. Spread your risk. Don't buy more than 5 or 10% of your cash in 1 company depending on your financial standing. In my case. not more than 5% in 1 company. Megan made an aggregate about RM1 in 03 and 04 but no dividend. Transmile earned 66 sen/share in 06, no dividend was proposed yet the 'cash and bank balances' showed it had RM418 million.$FILE/TGB%20-%204Q06%20announcement.pdf Sam E & E earned an aggregate of 50 sen in 2011 and 2012 but no dividend. Beware!

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13 comment(s). Last comment by aunloke 2012-05-28 08:49


146 posts

Posted by eagleis > 2012-05-26 10:31 | Report Abuse

Sam E & E made 37 sen/share in 2010. no dividend. Upgraded to AVOID from beware.


499 posts

Posted by jacklew > 2012-05-27 15:36 | Report Abuse

eagleis: thanks for your reminder....


45 posts

Posted by mhafizan > 2012-05-27 15:44 | Report Abuse

but the current value investing sifus like buffett and lynch said that 3-5 shares is enough diversification for individual investor.lynch said that in his book and if u check buffett's portfolios, it is more focused on few companies. the ideas is put ur eggs in few basket's and watch your basket

Posted by Fat Cat Tim Buddy > 2012-05-27 15:45 | Report Abuse

but berkshrine hathaway never pay dividend before?

apple din't pay any dividend for 15 years until recently?


146 posts

Posted by eagleis > 2012-05-27 20:45 | Report Abuse

Warren Buffet can walk into any company to check its account and talk to the management but we as retail investors can't. It has happened so many times already in Malaysia where companies announced fake results. I'd rather trust the financial results of Singapore companies than those of Malaysia companies simply because LKY doesn't allow corruption to happen in Singapore. Has any retail investor ever sued Transmile and Megan? The directors of these 2 companies are big time con men.


146 posts

Posted by eagleis > 2012-05-27 20:48 | Report Abuse

I invest not more than 5% of my cash in 1 company simply because I still believe there are at least 20 excellent dividend-paying listed companies.


146 posts

Posted by eagleis > 2012-05-27 20:56 | Report Abuse

Comes July, half of my cash will be in Singapore Exchange companies.

Posted by Fat Cat Tim Buddy > 2012-05-27 21:05 | Report Abuse

erm.. can you teach me how to invest in singapore exchange?

do they have T3 like malaysia? etc etc..


388 posts

Posted by tptan45 > 2012-05-27 23:10 | Report Abuse

It is difficult to Invest less than 5% in one company because there are so few that investors can really invest with peace of mind. Less than 5 actually.


146 posts

Posted by eagleis > 2012-05-27 23:56 | Report Abuse

tptan45. You mean there are less than 5 good listed companies in Malaysia. I don't agree with you. Please tell me which 4 companies you put your trust in.


45 posts

Posted by mhafizan > 2012-05-28 00:05 | Report Abuse

i dont think there's only 5, but if u keep your portfolio smaller u can spend more time to study the business and management of the company in the sense of qualitative factor as quantitavitely, first year accounting can do the end of the day, the essence of value investing is:

1) buy company as a business, the simpler thr business the better
2) look for good and honest management
3) find company with wide moats

if u do enough homework to find company this 3, no matter in malaysia or singapore, or
any other place in the world, it will be a good investment. and the end of the day, figures in financial report is not the main thing to look at, it's just something that give jobs to accountant

plus, u really believe no corruption in singapore?


45 posts

Posted by mhafizan > 2012-05-28 00:10 | Report Abuse

nestle, dlady, parkson, kpj, padini, petdag definately satisfy this strict value investing criteria and will be good long term investment if bought at correct price. so definately more than 5


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Posted by aunloke > 2012-05-28 08:49 | Report Abuse

I like the 2nd condition most, comp. with good management ,can make money; honest, can take care of the profit well such as keeping some for the growth and giving some back to the shares holders as dividend which is more as an assurance that the management handles the profit properly. Some CEO keep all the profit in its coffer and manipulate it to their advantage
that is why we have to look for companies with PROPER payout ratio, not because we must have the dividend but as an indication to the good and honest management.

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