Author: Koon Yew Yin | Publish date: Fri, 2 Dec 2016, 11:29 AM
As much as I hate to break KC Chong’s rice bowl, I need to respond to all the bad things he said about me especially in his article in i3investor under the title “Another Lesson from Gadang” in which he quoted my opinion as below.
A Super Investor: The super investor will study the case carefully and he sets a realistic target price after taking into consideration of its 40.7 sen EPS, the bonus shares, bonus warrants and its future profit growth in the construction business. Moreover, Gadang was awarded the contract to develop 24.5 acres of Kwasa Land within 20 years. Although property market is currently not so good, Gadang did not pay for the land. Gadang can wait while the land value appreciates. Can you imagine how much the land appreciates in 10 or 20 years?
All regular readers would know that I wrote this as soon as I saw Gadang’s annual profit of 40.7 sen per share.
All regular readers would also know that I openly wrote to advise shareholders to dump their holdings before I started to sell when I saw its 1st quarter EPS of 5sen. Even my wife and relatives scolded me for telling the whole world to sell Gadang before they could sell.
I told them that I can afford to lose some money but not all these small investors. Moreover, my recommendation which was based on its annual EPS of 40.7 sen. might have misled many people and it was only right to tell them to sell first at a better price.
Why KC Chong wants to say bad things about me?
He wants to show that I am not an accountant and investors should follow his teaching. He is selling his teaching FA program as show below his quote:
“For the record, I have been right for every of the stocks mentioned there written 4 years ago.
FA practitioners are not stupid. Financial statement analysis is very useful as it is the language of business, and FA is more intuitive than any “Golden rule”, in my opinion.
That is why I have been advocating FA all the time in a public forum like i3investor. I have been promoting my course in FA in i3investor all the time.
For anyone is convinced and wishing to learn FA in a structured manner to avoid any pitfall in investing, you may contact me at ckc13invest@gmail.com”
As much as I do not wish to break his rice bowl, I must tell you that about 4 years ago, I engaged him to look after my Rm 10 million account with CIMB. I am not sure what was the agreed fees for his work.
He started off by selling all my Latitude Tree and Lii Hen and bought Homeritz. He provided a complete financial analysis of all the furniture companies such as Latitude, Lii Hen, Poh Huat, Hevea and Homeritz.
He considered Homeritz was the best because it had the best return of equity.
As all investors know Latitude went up from Rm 1.00 to above Rm 8.00 within 30 months and Lii Hen went up more than 500% and it is still going up because 100% of its products are exported in US$.
I sacked him because he has no business sense at all. I am not telling you a fairy tale because many people in CIMB know this episode.
My Comment: Kantoi lah kc chong! Now the whole world knows kc chong's beef with Mr Koon. Looks like Mr Koon hurt kc's pride for sacking him as a money manager!
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83 comment(s).Last comment by paperplane2016 2016-12-04 01:37
Haha. No wonder kc chong sounds so salty when writing articles about the old man. As much as I respect kc chong's teaching prowess, he is never a good investor to me as most of his recommendations were made few years back where market was less choppy.
But KC indeed has no business sense. Our beloved kc chong extrapolates past earnings into the future without assessing the industry dynamics. That is not a good investor to me.
No matter how good you are in FA or TA or Both most IMPORTANT is making money for investor. If good can't made money for investor then GO GO to become a teacher or lecturer in Institution or University
He made good money from managing funds as well as teaching course. He also planned his game properly by giving free advice for years and started to charge for course.
Once he has few people to help him to do research, he further monetises by creating his own funds and charging fees to manage it (with the help of students who look out for great undervalued stocks as he alone cannot screen every stocks in the world).
He is a living example of how online business works.
1. You give good and niche advice for free 2. Once you have a number of followers, you monetise them by selling them products related to your knowledge (they will buy it cause they trust you) 3. Profit
Basically, provide advice > readers trust him > sell them his products > profit.
On top of that, he also does what other speakers in the market does, by flying to Malaysia every once in a while and organises talks and meetup. True enough, many people attended. He did all this so well like how the other financial market speakers did it.
Soon he will be doing it to other countries and slowly bringing it around to Singapore etc..
Flintstones, to be honest, his way of investment is more defensive rather than aggressive as he always preaches about "take care of the downside and the upside will take care of it for you"
fact of the matter, when u engage a fund manager to manage your funds, there are a lot of Investment Policy Statements that needs to be clarified first. Namely, your risk criteria and your expected returns within a frame of time.
once agreed upon and signed, your funds are at the fund manager's perogative to invest in and according to the signed contractual policies.
When you invest 10mil with someone, i am sure you will go thru this contractual basis. if you dun, its definately foolhardy.
The fund manager will also encourage this contract to protect the client-manager relationship. the client may sue the company u know. lol
of course not all clients are happy with the fund manager's investment ways n they all like to meddle n influence the investment process one way or the other.
of course if the client does not feel the manager is performing to his standards, he can let the manager go. moral of the story is have they looked at the investment policy statements throughly first before giving the 10mil? i am pretty sure they do.
if your style is speculative n within a short term type of horizon, you should be looking at hedge fund managers with an active investment style....i believe kc's is a passive type which follows the FA.
in other words, choose your managers wisely before giving them a huge sum of money.
btw even best managers make mistakes and even the best intentioned clients likes to meddle in the affairs. lol
The dun know both the gentlemen.....so far u folks heard Mr Koon's side of the story oni. Let Mr KC Chong hv a chance to aso brief his side of the story before commenting. Be fair if u folks love to comment wait till both sides of the story is out.
EXACTLY! YOU FOLLOW his advise, buy up those stocks and push up prices! proof him right loh. With KYY money sure he can push up few stocks easily. then he will go around to boast and charge ppl money. then earn his money and continue push again
my past experience tells me that investing with policy-restricted fund managers are always nonsense. They have many restrictions and mandates which disallow them to make proper judgement affecting their overall return. Nonsense if u ask me to invest in a strict environment. I will be better off putting my money into ETFs.
Posted by Bizfuneng > Dec 2, 2016 12:06 PM | Report Abuse
The dun know both the gentlemen.....so far u folks heard Mr Koon's side of the story oni. Let Mr KC Chong hv a chance to aso brief his side of the story before commenting. Be fair if u folks love to comment wait till both sides of the story is out.
on KC, he is teaching FA & he is teaching a method where you can get a reasonable return - so that yo dont become like the majority retailers who neither have FA,TA nor business knowledge.
Meaning he wants to equip you with something at least 'better'. He never claim he can beat KYY with his powerful contacts or that his technique is the ultimate best investment method.
He views himself like driving teacher who teaches one how the car functions....its upto to the students to be a Schumacher or Rosmah ma! KC is only teaching not die in car acccident in the road by driving safely....he never said you will be Arton Senna!
Now...that does not give anyone any rights to kutuk him la! What intelligence or business knowledge KYY has better than KC...if not coz of his contacts & OTB's help?
“For the record, I have been right for every of the stocks mentioned there written 4 years ago. " Ah Koon really delusional...you want to see how right he? Check this out. http://klse.i3investor.com/servlets/pfs/53120.jsp
he is no body in front of KYY. KYY billionaire, dia ada apa? If he is billionaire, wonder why he still charge ppl for training. Must well give free advise, ideas like KYY
Posted by CharlesT > Dec 2, 2016 12:16 PM | Report Abuse
To be fair to Mr. Koon or KYY, his recommendation never failed to make a stock goes up. People who curse him are either people who didnt a) take profit or b) cut loss
Posted by Flintstones > Dec 2, 2016 12:17 PM | Report Abuse
To be fair to Mr. Koon or KYY, his recommendation never failed to make a stock goes up. People who curse him are either people who didnt a) take profit or b) cut loss
Koon will normally push up 10-20% after he comes out to promote....then tok tok chiang
are you interested on the 'person' or what you can get from the 'person'?
If one is gaining more from KYY than KC...it all boils down to if you are a crook (1) or an innocent retailer(2)..who gains more depends on which category u fall.
Posted by paperplane2016 > Dec 2, 2016 12:15 PM | Report Abuse
he is no body in front of KYY. KYY billionaire, dia ada apa? If he is billionaire, wonder why he still charge ppl for training. Must well give free advise, ideas like KYY
Then I followed Ah Koon buy Xinquan, his nephew certified the account...also lost my capital, 84.96%
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Posted by Flintstones > 2016-12-02 11:48 | Report Abuse
Author: Koon Yew Yin | Publish date: Fri, 2 Dec 2016, 11:29 AM As much as I hate to break KC Chong’s rice bowl, I need to respond to all the bad things he said about me especially in his article in i3investor under the title “Another Lesson from Gadang” in which he quoted my opinion as below. A Super Investor: The super investor will study the case carefully and he sets a realistic target price after taking into consideration of its 40.7 sen EPS, the bonus shares, bonus warrants and its future profit growth in the construction business. Moreover, Gadang was awarded the contract to develop 24.5 acres of Kwasa Land within 20 years. Although property market is currently not so good, Gadang did not pay for the land. Gadang can wait while the land value appreciates. Can you imagine how much the land appreciates in 10 or 20 years? All regular readers would know that I wrote this as soon as I saw Gadang’s annual profit of 40.7 sen per share. All regular readers would also know that I openly wrote to advise shareholders to dump their holdings before I started to sell when I saw its 1st quarter EPS of 5sen. Even my wife and relatives scolded me for telling the whole world to sell Gadang before they could sell. I told them that I can afford to lose some money but not all these small investors. Moreover, my recommendation which was based on its annual EPS of 40.7 sen. might have misled many people and it was only right to tell them to sell first at a better price. Why KC Chong wants to say bad things about me? He wants to show that I am not an accountant and investors should follow his teaching. He is selling his teaching FA program as show below his quote: “For the record, I have been right for every of the stocks mentioned there written 4 years ago. FA practitioners are not stupid. Financial statement analysis is very useful as it is the language of business, and FA is more intuitive than any “Golden rule”, in my opinion. That is why I have been advocating FA all the time in a public forum like i3investor. I have been promoting my course in FA in i3investor all the time. For anyone is convinced and wishing to learn FA in a structured manner to avoid any pitfall in investing, you may contact me at ckc13invest@gmail.com” As much as I do not wish to break his rice bowl, I must tell you that about 4 years ago, I engaged him to look after my Rm 10 million account with CIMB. I am not sure what was the agreed fees for his work. He started off by selling all my Latitude Tree and Lii Hen and bought Homeritz. He provided a complete financial analysis of all the furniture companies such as Latitude, Lii Hen, Poh Huat, Hevea and Homeritz. He considered Homeritz was the best because it had the best return of equity. As all investors know Latitude went up from Rm 1.00 to above Rm 8.00 within 30 months and Lii Hen went up more than 500% and it is still going up because 100% of its products are exported in US$. I sacked him because he has no business sense at all. I am not telling you a fairy tale because many people in CIMB know this episode. My Comment: Kantoi lah kc chong! Now the whole world knows kc chong's beef with Mr Koon. Looks like Mr Koon hurt kc's pride for sacking him as a money manager!