Posted by stockraider > 2019-02-04 00:40 | Report Abuse

Raider can explain why this is not done early...!!

Growth investment at fair value is a rare commodity...based on raider experience if u look into 50 maybe u can find potential 1.
With limited supply, u cannot get enough if u find one loh...!!

Thats the reason, why it seldom appear loh....this is unlike margin of safety stock u can find plenty maybe 8 to 1 ratio loh...!!

LIKE BELOW MARGIN OF SAFETY VALUE STOCKS ;
Posted by calvintaneng > Feb 4, 2019 12:09 AM | Report Abuse

These are 8 sure buys

1) TA ENTERPRIZE
2) INSAS
3) DUTALAND
4) EKSONS
5) ANNJOO
6) SASBADI
7) JAYA TIASA (Giant Treasure)
8) GUH. Rm2.6 billions investment (commercial) will boost GUH landbanks nearbyhttps://www.edgeprop.my/content/1468471/aspen-ikea-jv-invests-rm26b-wo...

THIS MEANS MARGIN OF SAFETY VALUE INVESTMENT GIVE U MUCH MORE OPPORTUNITY TO EXPLOIT LOH....!!

Posted by 3iii > 2019-02-04 07:23 | Report Abuse

STRATEGY SANITY

Any investing plan for individuals should meet certain minimum standards.

A great portfolio has:

- Small losses

- Great returns

- Requires only simple mathematics.

- Minimal turnover.

- Little time per month for maintenance.

- Same fully disclosed formulas at all time.

- No shorting or borrowing.

- Long term investing time horizon.

Posted by 3iii > 2019-02-04 07:45 | Report Abuse

Financial freedom means the opportunity to do whatever you want with the rest of your life.


Financial Independence Retire Early (FIRE)

Early Retirement Extreme (ERE)

Posted by 3iii > 2019-02-04 08:07 | Report Abuse

Don't assume that a fee of "only" 1% per year is trivial.

IT ISN'T.

Paying 1% per year, plus other commissions and expenses, is a big deal.

Over time, it picks your pocket.

IT IS FAR BETTER TO MANAGE YOUR MONEY YOURSELF AND PAY VERY LOW ANNUAL FEES - OR NONE AT ALL.

Posted by 3iii > 2019-02-04 08:15 | Report Abuse

Manage your own money.

No one will ever care as much about your savings as you do.

Posted by 3iii > 2019-02-04 15:36 |

Post removed.Why?

Posted by 3iii > 2019-02-04 15:38 | Report Abuse

If you think the pros have a crystal ball, you are all set to take a fall.

They are just guessing.

Brokers work like palm readers and fortune-tellers: they tell you what you want to hear.

Posted by stockraider > 2019-02-04 15:40 | Report Abuse

It is not crystral ball ??

If the stock is overvalue, the 1st sign of trouble...the answer is run loh...!!

No dilly dallah....my cost is rm 1.00 as a sign of seeking solace loh..!!

Posted by 3iii > Feb 4, 2019 03:36 PM | Report Abuse

No one has a crystal ball.

Experts project the market with enormous confidence, but even the most expensive advisers cannot predict the coming year.

To attract client money, the big firms constantly tout the quality of their expertise. But their predictions are worthless, unable to alert you when a major market move is coming - even to warn you of a bear market that is already underway.

Posted by 3iii > 2019-02-04 15:50 |

Post removed.Why?

Posted by 3iii > 2019-02-04 15:52 | Report Abuse

Your willpower to stay invested weakens every time the market dives.

The behavioural pain point: Losses of more than 25% compel individuals to sell securities and switch to cash, harming their long-term performance.

Posted by 3iii > 2019-02-04 15:59 | Report Abuse

If you liquidate during a bear market, you risk missing the bull-market bounce.

The first few months of a new bull market include a bounce you must not miss. Big bargains occur in the first year bounce.

Stay fully invested so you reap the bull-market surge.

Posted by 3iii > 2019-02-04 16:02 | Report Abuse

This bull-market bounce averages a 51% gain in 10 months.

Posted by stockraider > 2019-02-04 16:05 | Report Abuse

Can always make a comeback, just like raider bought insas back recently mah...!!

U must learn the art of driving fwd, brake and reverse mah....!!


Posted by 3iii > Feb 4, 2019 03:59 PM | Report Abuse

If you liquidate during a bear market, you risk missing the bull-market bounce.

The first few months of a new bull market include a bounce you must not miss. Big bargains occur in the first year bounce.

Stay fully invested so you reap the bull-market surge.

Posted by 3iii > 2019-02-04 16:11 | Report Abuse

Crashes of 30%, 40% or 50% trigger the survival instinct (amygdala), pushing investors to liquidate their holdings and lock in huge losses.

"We cannot take any more pain - let's liquidate NOW to prevent an even bigger decline."

Selling near the bottom of a bear market locks in your losses. And that kills your lifetime rate of return.

When you throw in the towel, you don't feel like you're panicking. Your brain tells you you're doing the only logical thing to protect your family's life savings. Your survival instinct (amygdala) runs the show.




*****

Posted by 3iii > 2019-02-04 16:16 | Report Abuse

Individual investors need discipline to succeed.

Investors who try to beat the market every year and jump from one strategy to another, tend to badly under-perform the market.

Do you have enough patience to judge a strategy's performance only over the long term - one complete market cycle?

Do you have enough discipline to give your portfolio a tune-up for 15 minutes every month?

If so, you can improve on your ending balance over the course of a working career compared with the average, jittery investor.

Posted by stockraider > 2019-02-04 16:17 | Report Abuse

U need to understand systematic crash or actual crash due to the inherent poor performance of the existing business & its over rated share price leh ??

U need to assess Is padini crash a or b leh ??


Posted by 3iii > Feb 4, 2019 04:11 PM | Report Abuse

Crashes of 30%, 40% or 50% trigger the survival instinct (amygdala), pushing investors to liquidate their holdings and lock in huge losses.

"We cannot take any more pain - let's liquidate NOW to prevent an even bigger decline."

Selling near the bottom of a bear market locks in your losses. And that kills your lifetime rate of return.

When you throw in the towel, you don't feel like you're panicking. Your brain tells you you're doing the only logical thing to protect your family's life savings. Your survival instinct (amygdala) runs the show.

Posted by 3iii > 2019-02-04 16:26 |

Post removed.Why?

Posted by 3iii > 2019-02-04 16:30 | Report Abuse

An indicator is a ratio of two or more market metrics.

Here is some bad news for the engineering-minded. The market cannot be reduced to a simple equation. It is a lot more complicated than that.

That doesn't stop people from trying. The more things you test, the more likely it is that one indicator or another will seem to work the best, completely by random chance.

"If you torture the data long enough, it will tell you what you want to hear."

Posted by stockraider > 2019-02-04 16:31 | Report Abuse

It is not complex but must have common sense n understand the risk & not simply fall in love loh...!!

U can fall in love with your wife & not ur many share loh...!!

Posted by 3iii > Feb 4, 2019 04:26 PM | Report Abuse

Complex systems fail.

In investing, simpler is better.

Long-Term Capital Management

Founded in 1994, it boasted the Nobel Prize-winning economists Myron Scholes and Robert C. Merton, well known traders like Salomon Brothers' John Meriwether, and many other notables.

By 1998, the fund had grown to an equity level of $4 billion.

None of these smart guys thought Russia would default on its bonds in August 1998.

When it did, the fund plummeted so much that the Federal Reserve had to organize a consortium of financial institutions to over 90% of the firm.

All the market experience and fancy titles in the world couldn't prevent the fund from losing nine-tenths of its value within four weeks.

These professionals had biases and blind spots that contributed to their downfall. Behavioural biases affected them, and they affect you too. No one of us is exempt.

Posted by 3iii > 2019-02-04 16:37 | Report Abuse

Data-mining bias

If you test hundreds or thousands of strategies, by random chance one will seem best, but it won't work in the future.

Posted by 3iii > 2019-02-04 16:40 | Report Abuse

The market price of an asset may not always match its "intrinsic value," but that doesn't matter.

An asset's price is "the sum total of all investor fear and greed, both historical and real time, at that moment."

That doesn't mean the price is rational or efficient.

Posted by stockraider > 2019-02-04 16:45 | Report Abuse

Why Hitler and Napoloen lost the war with russia ?...bcos they are hard headed & stubborn....the 1st sign of trouble they did not retreat & save their forces mah...!!

Why China communist and vietnam communist won the war with bigger & stronger forces ??....bcos they are flexible n they know how to hit & run many many time mah...!!

Samething we must look at our investment based on military perspective loh.....!!

Posted by 3iii > 2019-02-04 16:48 | Report Abuse

Informed investors are patient and disciplined.

You need both market volatility and a lot of patience to win long term.

Keeping losses small generates out-performance over the long term.

Informed investors know enough to judge their portfolios only over complete bear/bull cycles.

The goal is to watch your portfolio grow to meet your needs. Informed investors don't get jealous during bull markets. They patiently wait to see their balances top the index at the end of every bear market.

Posted by stockraider > 2019-02-04 16:52 | Report Abuse

Tan Teng Boo icap was very patient with Parkson mah....!!

Posted by 3iii > Feb 4, 2019 04:48 PM | Report Abuse

Informed investors are patient and disciplined.

You need both market volatility and a lot of patience to win long term.

Keeping losses small generates out-performance over the long term.

Informed investors know enough to judge their portfolios only over complete bear/bull cycles.

The goal is to watch your portfolio grow to meet your needs. Informed investors don't get jealous during bull markets. They patiently wait to see their balances top the index at the end of every bear market.

Posted by 3iii > 2019-02-04 16:57 | Report Abuse

The volatility of stocks generates higher returns over time than so-called "risk-free" assets.


Volatile assets don't always produce higher returns but there is no question that treasury bills pay you less.

Volatility is not to be avoided. Volatility is not risk.

Financial risk means a portfolio's likelihood of subjecting you to an intolerable loss. If a loss is intolerable, you don't tolerate it.

After a bone-crushing draw-down, even some of the toughest investors can no longer take the pain. The loss compels them to liquidate near the bottom, stunting their performance.

Financial risk is intolerable loss. Avoid investment losses so great that they compel you to liquidate.



Summary:

Risk is the likelihood of an intolerable loss. Investors don't tolerate the market's periodic crashes of 30%, 40% and 50% - nor should they.

Volatility is not risk. Volatility is an opportunity for profit.

Posted by 3iii > 2019-02-04 17:02 | Report Abuse

The past performance of investment advisers does not predict their future performance. This is especially true over short periods such as 1, 3, and 5 years.

The sooner you make yourself ignore all this, the better.

Posted by 3iii > 2019-02-04 17:11 | Report Abuse

The world's best investors are billion-dollar university endowment managers.

In a 17 year period, their annualized returns averaged 8.4%.

The highest Yale, was 12.3%.

Even the slowest-growing college - Cornell, with a 6.8% return - beat the S&P 500's mere 5.5%.

Posted by 3iii > 2019-02-04 17:14 | Report Abuse

Ivy League endowment funds
July 1, 1998 - June 30, 2015

Yale 12.3%
Princeton 11.8%
Duke 11.7%
Stanford 11.6%
MIT 11.2%
Columbia 9.7%
Harvard 9.7%
Average of 97 endowments over $1 billion 8.4%
Penn 7.3%
Cornell 6.8%
S&P 500 5.5%

Posted by 3iii > 2019-02-04 17:25 | Report Abuse

Fads and fashions come and go in finance, just like, the fashion industry.

Models that lost their usefulness.
- Modern Portfolio Theory
- The Efficient Frontier theorem
- The Capital Asset Pricing Model
- The Efficient Markets Hypothesis
- Arbitrage Pricing Theory
- Static asset allocations


Still useful:

- Behavioural finance
- Asset allocation Theory
- The four-factor model by Fama, French and Carhart
- Global tactical asset allocation

Posted by 3iii > 2019-02-04 17:30 | Report Abuse

The truth is that investors earn good returns by lowering risk, not increasing it.

Individual investors don't have to take a greater risk of loss to achieve a higher return.

Risk is not always rewarded.

Posted by 3iii > 2019-02-04 17:36 | Report Abuse

There is no Santa Claus: The small-cap factor probably doesn't actually exist. Large caps beat small caps about half the time.

Posted by 3iii > 2019-02-04 17:40 | Report Abuse

Over long periods of time - generations - it is certainly true that value stocks rise in price more than growth stocks.

"The risk of the value strategy is that although value outperforms over the long run, value stocks can under-perform growth stocks during certain periods ...."

So, the small-cap factor may be an illusion, and the value factor disappears for longer than people can tolerate.

Stocks that merely have a good value may disappoint you.

Most people want securities that are a good value and are going up in price.

Posted by stockraider > 2019-02-04 17:47 |

Post removed.Why?

Posted by stockraider > 2019-02-04 17:59 |

Post removed.Why?

Posted by qqq3 > 2019-02-07 14:01 | Report Abuse

Success formula.

For the 20+, they should invest, not trade.
Stock picking should limit to the 1%, the best of the best in terms of reputation nnd growth stories, the people and the business…..Understand the business fully…..


only good management stocks
...very low turnover of portfolio
....learn to say NO....

and if want to make a real difference, have not more than 5 stocks at a time.

Trading should only be done by the very experienced….The retired ones and the full time traders.

Then, there is the third category. Lets just call them the Contrarians. This can only be done well by very experienced people.

S = Q r

Success, S is a function of ability to execute , Q and potential gains , r, from the idea/ the investee company

The ability of the investee company to execute as well as the ability of the investor to execute. are both crucial.

Posted by qqq3 > 2019-02-07 14:01 | Report Abuse

what is role of investment seminars and subscription service? .....none......more likely to be negative,

Posted by DickyMe > 2019-02-07 14:19 | Report Abuse

"Posted by qqq3 > Feb 7, 2019 02:01 PM | Report Abuse
what is role of investment seminars and subscription service? .....none......more likely to be negative, "
==================================================

It is an educated way to "rob" fools who believe Ph.D and finance related degree holders with their hard earned money. When tips or investment goes sour and wrong, they protect themselves with "fine prints" printed in virus scale fonts.

Posted by qqq3 > 2019-02-07 15:29 | Report Abuse

If the Q of the student/ investor is zero .....

zero multiplied by any thing also zero.

Posted by qqq3 > 2019-02-07 15:36 | Report Abuse

Posted by deMusangking > Feb 7, 2019 03:34 PM | Report Abuse

rubbish talk!
===========

If the Q of the student/ investor is zero .....

zero multiplied by any thing also zero.

which part u disagree?

Posted by qqq3 > 2019-02-07 15:51 | Report Abuse

Q is the talent , the ability to execute....if the Q is zero or negative, better run away, far far away from subscription service and investment seminars.....

Its an unbalanced relationship, an asymmetric relationship, its like JJJPTR all over again......

too bad people always over estimate themselves. Everybody judges himself to be a better than average driver.....

Posted by 3iii > 2019-02-07 18:12 | Report Abuse

I have posted 2 checklists for selecting stocks using value investing approach.


1. This is for growth stocks.

https://klse.i3investor.com/servlets/forum/905009575.jsp


2. This is for undervalued stocks.
https://klse.i3investor.com/servlets/forum/905009887.jsp



Personally I prefer investing into high quality growth stocks for the long term. On occasions, I chose undervalued stocks.

Posted by 3iii > 2019-02-08 07:44 |

Post removed.Why?

Posted by probability > 2019-02-08 15:04 | Report Abuse

3ii sifu...i finally figure out one positive aspect of your investment strategy....

the power of stocks selection with very simple valuation (easy to value)...giving higher certainty of correctness on intrinsic valuation (lesser deviation level)...though this strategy does not give you much edge over the market at large....

but...by at least following the herd...the market (controlled by institutional investors)...ensures you obtain a reasonable return at cost of equity...

so its a great investment strategy

......................

hope the above helps to express your strategy to others much easily...instead of debating without an end with raider...

perhaps its also enlightening to you 'why it works' (your own strategy)

Posted by qqq3 > 2019-02-08 15:09 | Report Abuse

probability > Feb 8, 2019 03:04 PM | Report Abuse

but...by at least following the herd
============

the herd is in Hibiscus and Carimin.....not good quality shares.

Posted by probability > 2019-02-08 15:21 | Report Abuse

not the wrong minority herd...i am talking about the institutional investors herd...

Posted by probability > 2019-02-08 15:22 | Report Abuse

who buys blue chip stocks

Posted by qqq3 > 2019-02-08 15:24 | Report Abuse

Even God Couldn’t Beat Dollar-Cost Averaging

https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averagi...

when u find a quality share and commit your salary and bonus to it........even God cannot beat you........

Posted by qqq3 > 2019-02-08 15:29 | Report Abuse

probability > Feb 8, 2019 03:21 PM | Report Abuse

not the wrong minority herd...i am talking about the institutional investors herd...
==========

big institutions are so diversified it is no different from the index.

Posted by probability > 2019-02-08 15:32 | Report Abuse

''index + dividend yield'' might closely approximate cost of equity..

Posted by stockraider > 2019-02-08 19:12 |

Post removed.Why?