Posted by qqq47660 > 3 weeks ago | Report Abuse

CONSUMER brands including Nestle and Procter & Gamble (P&G) said they conducted investigations after an environmental group said palm oil sourced from an illegally cleared wildlife reserve in Indonesia may have found its way into their supply chains.
=========

mike
with all the fiasco involving similar organisations, u still believe their nonsense bs stuffs?

even america , Trump america has gone against DEI stuffs. Trump america is just a natural reaction of the lies over decades long. ....DEI, stuffs, neo liberalism, LB.GT stuffs, over zealous liberalism....all are discredited stuffs.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

In his 2022 Berkshire Hathaway Annual Letter, Warren Buffett reflects on his mistakes and successes over 58 years of managing Berkshire Hathaway. He acknowledges that most of his capital-allocation decisions have been average, with a few standout successes and some bad decisions salvaged by luck.

Buffett highlights the dual nature of capitalism, where creative destruction creates both winners and losers. He emphasizes the occasional opportunity in publicly traded stocks to buy great businesses at attractive prices, while noting that controlled businesses are rarely available at bargain prices.

Buffett attributes Berkshire’s success to a few key decisions and a long-term investment advantage.


Here’s an excerpt from the letter:

Over the years, I have made many mistakes. Consequently, our extensive collection of businesses currently consists of a few enterprises that have truly extraordinary economics, many that enjoy very good economic characteristics, and a large group that are marginal.

Along the way, other businesses in which I have invested have died, their products unwanted by the public. Capitalism has two sides: The system creates an ever-growing pile of losers while concurrently delivering a gusher of improved goods and services. Schumpeter called this phenomenon “creative destruction.”

One advantage of our publicly-traded segment is that — episodically — it becomes easy to buy pieces of wonderful businesses at wonderful prices.

It’s crucial to understand that stocks often trade at truly foolish prices, both high and low. “Efficient” markets exist only in textbooks. In truth, marketable stocks and bonds are baffling, their behavior usually understandable only in retrospect.
Controlled businesses are a different breed. They sometimes command ridiculously higher prices than justified but are almost never available at bargain valuations. Unless under duress, the owner of a controlled business gives no thought to selling at a panic-type valuation.

At this point, a report card from me is appropriate: In 58 years of Berkshire management, most of my capital-allocation decisions have been no better than so-so. In some cases, also, bad moves by me have been rescued by very large doses of luck. (Remember our escapes from near-disasters at USAir and Salomon? I certainly do.)

Our satisfactory results have been the product of about a dozen truly good decisions — that would be about one every five years — and a sometimes-forgotten advantage that favors long-term investors such as Berkshire.

👉 Read the full letter here: https://acquirersmultiple.com/.../warren-buffett-most-of.../

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

PLANTATION STOCKS (VALUATION)

UTDPLT ROE 25.4% P/B 4.29 NTA 6.950 P/E 16.90
KMLOONG ROE 18.00% P/B 2.79 NTA 0.920 P/E 15.52
RSAWIT ROE 16.37% P/B 1.29 NTA 0.19 P/E 7.88
IOI ROE 12.63% P/B 2.02 NTA 1.910 P/E 15.96
SOP ROE 10.78% P/B 0.82 NTA 4.09 P/E 7.65

JTIASA ROE 9.38% P/B 0.78 NTA 1.60 P/E 8.27
THPLANT ROE 7.81% P/B 0.80 NTA 0.830 P/E 10.26

TSH ROE 5.06% P/B 0.84 NTA 1.420 P/E 16.57
CEPAT ROE 4.49% P/B 0.55 NTA 1.300 P/E 12.24
KLK ROE 4.30% P/B 1.64 NTA 12.5 P/E 38.13
UMCCA ROE 4.25% P/B 0.75 NTA 6.880 P/E 17.70
NSOP ROE 4.20% P/B 0.46 NTA 8.950 P/E 11.03

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Great Good Gruesome

It is better to buy a great company at a good price than to buy a good company at a great price. Avoid the gruesome company.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

My assessment (caveat emptor: please make your own analysis and decision)

UTDPLT and KMLOONG are trading at fair prices.
JTIASA is trading at fair price / slightly underpriced (by not much).
TSH is overpriced.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

UNITED PLANTATION

The investor’s total return from 2014 to 2023, combining capital appreciation and dividends, would be approximately 142.7% if dividends were not reinvested. If dividends were reinvested, the return would likely be higher due to compounding effects.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Banking Sector

PBB ROE 11.99% P/B 1.53 NTA 2.90 P/E 12.79
MBB ROE 10.97% P/B 1.36 NTA 7.51 P/E 12.35
CIMB ROE 10.79 % P/B 1.3 NTA 5.449 P/E 12.01
HLBANK ROE 10.50% P/B 1.13 NTA 18.19 P/E 10.64
HLFG ROE 10.50% P/B 0.70 NTA 26.53 P/E 6.64
AMBANK ROE 10.11% P/B 0.9 NTA 6.03 P/E 8.91
ABMB ROE 10% P/B 1.06 NTA 4.630 P/E 10.61

RHB ROE 8.49% P/B 0.92 NTA 7.265 P/E 10.7
BIMB ROE 7.44% P/B 0.81 NTA 3.350 P/E 10.87
AFFIN ROE 3.59% P/B 0.61 NTA 4.80 P/E 16.93

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

There is little to choose between PBB, MBB, CIMB and HLB.
However, today, one of these four is relatively a better value amongst them.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Reviewing my decades of experience in investing in stocks.

Everyone approach investing in stocks in different ways, much influenced by their learning, past and on-going experiences. They are also affected by personal knowledges of what affected their parents, friends and others in their investments.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Short term versus long term

The first stock I bought was interesting. I cannot even remember the name already. It was the beginning of the bull run of the 1990s. I was reacting to its share price rise and big volumes. I don't even know what business it was doing, although I had some idea, but not enough to be a safe investor. Anyway, it was a "beginners luck". It went up maybe 50% of so in a very short time, maybe weeks. I sold. My remisier congratulated me. :-) But it was the absolutely wrong way to invest.

In the 1990s, there were few good investment books in the bookshop. The internet was in its infancy. I bought and read many books, but they were the wrong ones on accounting, economics and some personal finance.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Short term versus long term

Always audit your investment journey and returns. You will learn a lot from this activity too.
My investment is sloth like. I bought in big amount, generally held for long time and hardly ever sell.
This must have been influenced by my experience in the first decade of my investment.
How you behave during the market fluctuations can only be learned through experiencing them! :-)

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

Despite the massive drop in share prices in the Asian Financial Crisis in the late 1990s, and no good knowledge of investing, my portfolio survived. Luck was on my side. My advisor on stock was a very capable senior person. He had recommended stocks to me at various times, perhaps, 3 or 4 times per year. My portfolio was in the negative (showed losses) in the Asian Financial Crisis in 1997. But I was well placed, with also a lot of cash, as from 1994 to 1997, I was fearful of the market due to its exuberance. When the crash came in 1997, I invested more money but the prices continued to fall (painful for the short term players but on hindsight and experience, the short term pain turned out to be a great teacher for those wishing to play long term).

By 2002, my portfolio showed significant gains. Dividends accumulated contributed significantly also to the total gain. Many of the shares that crashed, recovered, as least back to my buying prices. I realised that when the price returned back to your initial buying price, you would have made a positive return given the dividends received. This also meant all the returns were due to dividends received from this particular stock in 2002.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

What I learned in post 1997?

A housewife had a portfolio of penny stocks. They were all down 90% or so. They were all gruesome companies except one. Holding onto these stocks made here felt comfortable but actually was costly, in terms of opportunity costs. She was advised to sell and cut her losses, except one. She was advised not to indulge in stocks in future without guidance. Luckily for her, she had only about less than RM20,000 invested.

Another man willing shared that he lost everything in 1997. Everything meant including his savings in the Asian Financial Crisis. I could see his mental state was much affected, though he had come to term with his loss. At his early 50s or so, it was financial disaster. He shared that he was totally staying away from stocks. His grown up children, early in their careers, are helping out with his household expenses.

The bull run of the 1990s made a lot of people behave differently. The greed for short term money and easy money, resulted in many to give up a stable but reasonable career for the short term opportunities at that time. The mee seller spent her time in the stock broker's place, the teacher gave up teaching to do multilevel selling and the accountants became remisiers. When the crashed came, these people lost a great deal.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

The Dot-Com crash in US in 2000 affected the American investors severely. Buffett was not caught in the exuberance and though underperforming during the Dot-Com bubble, not only survived but outrun the returns of all the other investors post Dot-Com.

Post Dot-Com crash, value investing (as practised by Buffett) became fashionable again. Many books and internet articles appear on this topic. These books were also available in our local bookshops.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 3 weeks ago | Report Abuse

How good has been my stock selections?

Reviewing my portfolio over the decades, how do I grade myself as a stock picker?
Probably average (maybe even slightly below average), this would be my humble assessment.

I did have a few losers in my portfolio. Thankfully, the losses are small in comparison to the overall.
There are also many non-performers. Some, I have probably held on for too long.
Thankfully, I did pick some stocks that have given the majority of the total returns of the portfolio. They have grown and are multi-baggers. An element of luck is definitely in play too.

Yes, temperament is more important than intelligence. You need some intelligence but more importantly, you should have very sound investing philosophy and reasonable emotional approach to the stock market.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Most of the gains are made in only a few stocks which I had the conviction to buy and held on for a very long time. These are the true compounders that gave the majority of the returns over the decades. The power of compounding its truly amazing. Another doubling and it is a very huge sum at the end of a long compounding period.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

You only need to invest into 3 very good stocks long term to be comfortably rich.

My good friend is a very good investor. He is receiving dividends yearly from from the stock market that is equivalent to about RM 5,000 daily.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Warren Buffett

Avoid investing in companies with low ROE.

It is extremely difficult to get rich by being an owner of a business with low ROE.

Always look at a business by examining its return on capital. You want to be in good businesses which will be better businesses 10 years from now and you want ot buy them at a reasonable price.

If you have a business with low ROE of 5% or 6% for a long time, you are not going to do well in investing even if you buy it cheap to start with.

Time is the enemy of the poor business and it is the friend of the great business.

If you have a business that it earning 20 % or 25% on equity and it does that for a long time, time is your friend but time is your enemy if you have money in a low return business.

You may be lucky enough to pick the exact moment when it gets taken over by someone else, but when you buy a stock to own for a very long time, you have to stay away from businesses that have low ROEs. 🤔

Charlie Munger

It is not much fun to buy a business where you really hope this sucker liquidates before goes broke. 😄

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

You Don't Understand Compound Growth

Einstein once (supposedly) said:

Compound interest is the most powerful force in the universe

Of compound interest, Warren Buffet proclaims:

Over time it accomplishes extraordinary things

Compound interest, or growth, is one of the, if not the most, powerful and impactful forces in nature.

And yet, it is also one of the most consistently misunderstood in the world of business.

How so?

Simply, we misapply the term "compound growth" to things that do not actually grow in compound fashion.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Compound growth
1) implies constant growth
) is exceedingly rare and
3) is incredibly important to building a large, valuable business.

The fact is, very few objects, organisms or organizations can sustain truly compounding growth over any extended period.

From an observer's or investor's perspective, it's quite easy to fool yourself into thinking compound, exponential growth is much more common than it really is. And it's understandable given how often the term is thrown around. Firms in fleeting phases of fast growth can visually demonstrate their breakneck pace with the ubiquitous, infamous "hockey stick" chart.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Most businesses see their revenue growth rate tick down over time. This is even more true for companies that are growing quickly today.

On the other hand, some exceptional businesses have managed to drive truly compound growth over long periods.

Amazon has grown at a nearly constant rate over almost two decades, despite increasing scale by 64x over the period.
Amazon is an exceptional business that has evidently identified a way to grow at a nearly constant rate over many years.
By leveraging on the core infrastructure the company's built up over time has enabled it to grow in bacteria-like fashion.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Growth functions: Are you adding or multiplying?

Every growing business needs an honest answer to this question: Is your business growing through multiplication, like the Amazonian bacteria, or addition, like the brick wall?

Businesses that simply "add" must necessarily slow down. Scale begins to work against you, making it harder and harder to maintain a rapid growth pace. Eventually, you will, figuratively, hit a wall.

An example of an additive growth function is paid customer acquisition through a channel like Google Adwords.
Spending $100 on Adwords is going to generate some number of users. Spending another $100 is probably going to generate a similar number of users, and so on.
There's no "magic" here. This is "buying growth" in the most direct manner.

On the other hand, businesses that "multiply" can grow indefinitely. Their "growth functions" are inherently multiplicative. Users beget more users. Revenue begets more revenue.
The classic exponential, multiplicative growth function is the viral word-of-mouth (WOM) or referral program.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Whatever the approach, it is vitally important that every business vigorously search for and identify exponential growth opportunities. It is mathematically inevitable that an additive, linear growth engine that does not compound on itself will eventually peter out, or even collapse like a wall built too high.

Likewise, investors must diligently sift through the noise to find the few bacteria-in-a-hay-stack that will drive true, long-term value creation. Ignore the steep trajectory in the short-run. Instead, focus on the curvature of the horizon.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Bacteria and Bricklayers
https://myinvestingnotes.blogspot.com/2024/12/bacteria-and-bricklayers.html

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

When to buy?
... at time of maximum pessimism
... when there is "blood in the street"

Posted by xiaoeh > 2 weeks ago | Report Abuse

Dear 3i
when to sell?

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

How to maximise returns?

1. First, ensure that there is safety of your capital. Remember not to lose your capital. By ensuring that you do not lose money and aiming for moderate returns, you can maximise total returns too with low risk. Don't be greedy for high returns by taking unnecessarily high risks.

2. Stick to the few high quality stocks you are familiar with. This is the circle of competence mentioned by Buffett. Stay within your circle of competence and never, never, never, never, get out of this circle. :-) If your circle of competence is only 6 stocks, stick to these 6 stocks.

3. Only buy high quality stocks at bargain price. At a certain price, the stock is a bargain and at another price, it is trading at a fair price. Never, never, never buy these high quality stocks when it is trading at high price. By buying these good quality stocks at a bargain price, one is buying with a margin of safety to minimise loss to your capital in the event you got it wrong. At the same time, if the event turned out to be as you expected, your return will be greater.

4. Also do not over-diversify. According to Buffett, adding the 7th stock into your portfolio reduces the overall return of your portfolio. Bet big if you are very certain of your selection.

5. Allow the wonder of compounding to grow your return over a long period of time.

Investing can be very safe. Keep it simple and safe. (K.I.S.S.)

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2 weeks ago | Report Abuse

Is buy and hold, a safe strategy?

The recent severe downturn in the market brought this strategy into question once again. It is very safe for those who employs this strategy using certain criterias. It is safe for selected stocks. These stocks should be of the highest quality (QVM). These stocks should be bought at a bargain price with a margin of safety. The only time you may have to sell the stock urgently is when there is a fundamental deterioration in the business of the company. Other than this, you have the leisure of selling.

The market is cyclical. The bull-bear-bull-bear cycles ensure that the bull will always follows a bear and vice-versa. Here are a selection of Malaysian stocks that have stood the test of time over at least 3 severe bear markets: Nestle, DLady, Petdag, Guinness, Petgas, PBB, PPB, Resorts. There are also others too. At certain short period of time, each of these stocks may underperform but if assessed over a longer period of time, the returns have ALL been positive. By minimising the downside and aiming only for modest returns, investing can be surprisingly rewarding for a large number of investors and with little effort.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Keep it simple and safe

The intrinsic value of an asset is and always will be, the sum of its discounted future cash flows.

Posted by xiaoeh > 1 week ago | Report Abuse

Dear 3i
let's analyze which trading/investing style suite different trader/investor profile:
1) little capital say RM10k + low risk taker + with little time
2) little capital say RM10k + high risk taker + with little time
3) little capital say RM10k + low risk taker + with plenty of time
4) little capital say RM10k + high risk taker + with plenty of time
5) more capital say >RM1mil + low risk taker + with little time
6) more capital say >RM1mil + high risk taker + with little time
7) more capital say >RM1mil + low risk taker + with plenty of time
8) more capital say >RM1mil + high risk taker + with plenty of time

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

CPO

CPO prices fell at the beginning of the pandemic to a low of around RM 2,000 per tonne in May 2020.
It rebounded from this low to as high as RM 7,757 per tonne in April 2022.
Prices were driven by a confluence of factors, including supply shortage and logistic disruptions.
In 2023, CPO prices had fallen back from the peak.
In recent months, CPO prices has risen.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

>>>
Posted by xiaoeh > 1 hour ago | Report Abuse

Dear 3i
let's analyze which trading/investing style suite different trader/investor profile:
1) little capital say RM10k + low risk taker + with little time
2) little capital say RM10k + high risk taker + with little time
3) little capital say RM10k + low risk taker + with plenty of time
4) little capital say RM10k + high risk taker + with plenty of time
5) more capital say >RM1mil + low risk taker + with little time
6) more capital say >RM1mil + high risk taker + with little time
7) more capital say >RM1mil + low risk taker + with plenty of time
8) more capital say >RM1mil + high risk taker + with plenty of time
>>>

If you are young and has a long term time horizon:
1. Invest early
2. Invest regularly
3. Stay long term
4. Have an investment philosophy based on your investment objective and your risk tolerance
5. Reinvest all dividends.
6. Aim for low risk, high return.

Posted by nicholas99 > 1 week ago | Report Abuse

BEAR is coming

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Are you ready for the BEAR? Will you survive a BEAR?
Never be fearful of a BEAR market. It is probably the best time for your investing. :-)
But be aware of RISKS. Make sure you are always a survival and not be caught by unforeseen RISKS leading to your financial RUIN.

Posted by xiaoeh > 1 week ago | Report Abuse

noted and thanks 3i

Posted by BLee > 1 week ago | Report Abuse

“Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > Are you ready for the BEAR? Will you survive a BEAR?
Never be fearful of a BEAR market. It is probably the best time for your investing..”

Yes, the best time for investing with Spare Cash. Recently, there are shouts of ‘cherry picking’; join for fun and pick JAG at 22.5sen. Reason, a rare chance of price adjustment of 2 bonuses issue i.e. adjustment close to 37sen to 28sen; and drop further below 22sen. Few days ago, sold half of my ‘cherry’; making close to 50% gain in less than half a year holding..Happy Trading and TradeAtYourOwnRisk

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Plantation stocks
Net Income of Plantation Stocks (millions MYR)

Year...2018...2019...2020...2021...2022...2023...2024...2025
KMLoong...99.1...52.1...40.8...94.9...137...163...148...89 (2Q, 2025)
IOI ...3.1B...632...601...1.4B...1.7B...1.1B...1.1B...711(1Q, 2025)
UtdPlt...372...283...400...518...602...708...534 (3Q,2024)
KLK...753...618...773...2.3B...2.2B...834...591 (2024)
TSH...40.1...44...79.1...169...463...95...73.8 (2024)
JTiasa...-26.8...-276...-73.5...31...136...154...141...72.3 (1Q,2025)

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

CPO price MYR ,000 per metric tonne
Jan
2018 2.49
2019 1.83
2020 2.81
2021 3.42
2022 5.34 (April 2022 CPO price peaked at 7.0+)
2023 4.09
2024 3.72

Dec 2024 5.146

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

CPO prices rose steadily afater falling at the beginning of the pandemic.
It rebounded from the lows of around RM 2,000 per tonne in May 2020 to as high as RM 7,757 per tonne in April 2022.
Prices were driven by a confluence of factors, including supply shortage and logistic disruptions.

As the market did not believe the record high CPO prices were sustainable, the share prices of the plantation counters did not significantly outperform.
The market did not believe the record high CPO prices were sustainable.
Also, investors in plantation companies are more institutional and longer term.
As can be seen and sure enough, CPO prices have since fallen back from the peak.
Prices are currently still higher than pre-pandemic levels.
The share prices of the plantation companies have not collapsed along with falling CPO prices.
Since Oct 2024, the CPO prices have trended upwards again.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Investing in plantation stocks, you can expect dividends on a regular basis and occasionally when the prices of CPO are really good, special dividends on top of these.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

CPO price for 2025
Projected to be between RM 4000 to RM 5000 per tonne

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Share prices of Plantation stocks

Price at 1st Jan of each year (MYR)
Year...2018...2019...2020...2021...2022...2023...2024...Latest(9/12/2024)
KMLoong...0.89...0.85...0.90...1.00...1.34...1.53....1.89...2.63
IOI ....3.91...4.01...3.98...3.77...3.48...3.63...3.89...3.91
UtdPlt...10.59...10.04...10.54...12.03...12.21...14.44...19.23...31.80
KLK...20.96...20.64...19.42...20.22...19.28...19.90...21.61...21.44
TSH...1.33...0.95...0.99...0.86...0.95...1.03...0.98...1.21
JTiasa...0.92...0.50...0.63...0.65...0.58...0.56...1.08...1.49

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

CPO prices rose steadily afater falling at the beginning of the pandemic.
It rebounded from the lows of around RM 2,000 per tonne in May 2020 to as high as RM 7,757 per tonne in April 2022.

All these plantation counters reached these highest prices in April 2022.

KMLoong 2.12
IOI 4.67
UtdPlt 16.53
KLK 29.47
TSH 1.80
JTiasa 1.67

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Net Profit Margins of Plantation companies based on TTM Revenue and TTM Net Profit

KMLoong 10.1%
IOI 15.1%
UtdPlt 34.8%
KLK 2.7%
TSH 10.0%
JTiasa 14.1%


KLK: The impairment of investment in Synthomer of RM180.0 million and the inventory writedown are one-off. These exceptional losses of RM366.5 million are non-cash items.

Posted by qqq47660 > 1 week ago | Report Abuse

What shares to buy in china?

It's X peng and Geely

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

The intrinsic value (price) for both stocks and bonds is equal to their discounted future cash flows (DCF).

The cash flows for stocks are derived from sales and expenses, which in turn are dependent on economic conditions.

The cash flows of bonds are the fixed coupon payments based on the coupon rate.

The discount rate takes into account the risk-free interest rate, risk premium and in the case of stocks, growth.

Interest rate is the price of money and is a major factor in determining the valuations for stocks and bonds.

Posted by xiaoeh > 1 week ago | Report Abuse

Dear 3i
in regards to discount rate
would you mind elaborate more with example?
and what discounted rate u normally used?
and the duration u use for calculating your intrinsic value, 10yrs? 15yrs?etc

Posted by qqq47660 > 1 week ago | Report Abuse

Xpeng geely/ zeekr

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 1 week ago | Report Abuse

Keep valuation simple.

You do not need to do complicated DCF, just apply its concepts in a conservative manner.

By staying with great companies (those growing revenues, healthy earnings that translate into strong growing cash flows), projecting their future cash flows is EASIER.

As for discount rates, even using the risk free interest rate (without adding ant risk premium., since these are great companies), you can derive your intrinsic value with a huge margin of safety. Where is the margin of safety? Your confidence that its business will grow and delivers higher healthy earnings and FCFs in the future.

Of course, at times, during market corrections, you have the opportunity to acquire more at lower prices with bigger margin of safety and with higher upside/ downside risk in your favour.

A caveat: many great companies are priced at high valuations. Be patient.

Do you need to sell these companies? If you can hold for the long term, just study the Coca Cola investments story of Buffett to learn more.

Posted by xiaoeh > 1 week ago | Report Abuse

Noted and Thanks 3i