Koon Yew Yin's Blog
CRASH PROFITS - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 13 Feb 2016, 05:46 PM
Koon Yew Yin
0 1,446
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
As you know the stock market has been falling recently and many investors are losing money. Of course those who have lost money feel miserable and do not know what to do. Some have margin calls and are forced to sell.
I hope this article will give you a glimpse of the light. I wish to share with you my experience of making money when stocks sink and soar. Remember after every crash the market will soar again. It is not the end of the world.
As I said before, no share can go up or down indefinitely for whatever reason. What goes down will come up again. What comes down rapidly will also rebound rapidly.
In 1983 when China gave notice to the British Government to take back Hong Kong, the Hang Seng index dropped below 1,000. Almost all the investors rushed to sell their shares and properties.
This was the first time I started share investment seriously. I identified a few really undervalued stocks. For example, Hong Kong Reality and Trust Ltd (HKRT) which fell from $ 13.50 to $ 3.50 and each share had a cash value of about $ 10.00.
I traded with Kaiser Stocks and Shares Ltd which offered me margin finance at 5% interest rate. When China gave an extension of 50 years lease, the market rebounded and HKRT jumped up to $ 13.50 overnight. Within a year I made enough money to buy I bought 46% of Kaiser Sticks and Shares Ltd. Today the Hang Seng Index is 18,318.
You can learn the following lessons:
- Never fall in love with the shares you have bought. You must sell as profit is not a dirty word. Unless you sell, you have no money to buy back.
- Never buy up to maximum margin limit. Always allow room for safety.
- Do not be afraid to buy when people are rushing to sell.
- I recommend you to read ‘Crash Profits’ by Martin Weiss PhD who was Chairman of Weiss Ratings Inc. in Palm Beach Florida.
Best of luck and wishes for the Chines New Year.
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Discussions
15 people like this. Showing 50 of 57 comments
You never heard any thing lol.
youlee > Feb 13, 2016 06:23 PM | Report Abuse
I never heard china gives 50 years lease extension. Please dont....
2016-02-13 18:24
100% agree.
Posted by murali > Feb 13, 2016 06:14 PM | Report Abuse
If u dont get yrself killed when market crash, u shall become stronger...
2016-02-13 18:25
But not enough to make a person rich.....to be a super investor.
To be rich and super investor, one needs Conviction. , needs stock picking skills, needs stock discovery skills.
Conviction of course, must come from experience, from knowledge, from habits and from following the companies that you wish to invest in....Knowing every thing you need to know about the investee companies.
I believe Mr Koon has all these in abundance.
Conviction is a personalized commitment.
stubborn and right makes big profits
stubborn and wrong big losses.
2016-02-13 20:16
The market only reward those with money and coincidentally are generally people with good holding power
2016-02-13 20:34
"many investors are losing money" becos they listen to too many buy calls?maybe?
2016-02-13 20:45
youlee is right ,there was no "50 years lease extension",but was promised 50 years ,no change of system of rule and governance.五十年不变，一国两制 , now known as " one country two systems".
13/02/2016 20:41
2016-02-13 20:46
What is your take on Xinquan, Mr. Koon? Should an investor subscribe to the Rights Issue, after losing so much money in this lame stock, including yourself. Are you subscribing?
2016-02-13 21:45
those past history ( HIS VERY OWN VERSION OF HIS STORY ) can boast of his successful stories BUT can he repeat or forecast the future?????????? damn boasting!!!!!
2016-02-13 22:11
The best time to buy good shares is in a downturn
FL bhd - net cash 85m , no debt , 9month eps 20c. Potential eps 30c in 12 month ending dec 15. Share price 2.06 minus 85c net cash = 1.21. If the coming quarter end dec 15 shows a good profit , the pe can be as low as 4.0 minus cash component
2016-02-13 22:20
commit to memory if you want to be rich like KYY.
I see lots of very smart people never made it because they lack Conviction in the shares they bot.
tony89 > Feb 14, 2016 07:53 AM | Report Abuse
lol desa. I really like you. like your mindset!
2016-02-14 11:09
" You must sell as profit is not a dirty word. Unless you sell, you have no money to buy back."
You know what is the beautiful mindset here?
It is that KYY still intends to play within the universe he is already familiar . You have to sell to take advantage of market movements. IF you don't sell, you cannot take advantage of your temporary bearishness. But successful people always prefers to play within the universe they already familiar with...........I notice a lot of newbies jump here jump always looking for the next miracle.
A list of favorite shares and play within this list..............this is another habit of successful traders. of course the list can be amended as the need arises.
2016-02-14 11:45
KYY is a very smart investor but is like a firecracker, big bang, but Chua Ma Yu is smarter than him as he knows when to quit.
2016-02-14 13:00
Hmm what's the point of comparing? Peter Lim of sg would even be better. So is Bill Gates. Lol
2016-02-14 13:07
KYY you are right only if you invest at the right time... if you invest slightly early when market still had place to drop... small player are drying out with margin call.
take profit or cut loss is the best way... dont hold on stock and hope for it..
always remember money in the pocket is your.. others than that is others.
2016-02-14 13:15
Did Mr.Koon buy Public Bank in 1998 (when Anwar was arrested)the share price
was just 1.00 and today it's 18.00 after 17 years!!! Plus all the bonus and dividend. Hope he bought some too and keep until today.
2016-02-14 13:54
whether money made from Public Bank or from VS.....you still need Conviction...still need the virtues KYY have in abundance....
To be rich and super investor, one needs Conviction. , needs stock picking skills, needs stock discovery skills.
Conviction of course, must come from experience, from knowledge, from habits and from following the companies that you wish to invest in....Knowing every thing you need to know about the investee companies.
I believe Mr Koon has all these in abundance.
Conviction is a personalized commitment.
stubborn and right makes big profits
stubborn and wrong big losses.
2016-02-14 15:49
Conviction in vs brings koon koon to banks...
Conviction in xinquan brings koon koon to holland..
2016-02-14 15:51
stubborn and right makes big profits
stubborn and wrong big losses.
you still need stubborn to be successful.
2016-02-14 15:52
There is a very big drama going on, just because majority of the news is pointing towards the recovery of ringgit, many of the analyst started pumping in positive news on the ringgit recovery.. they tried their level best in changing the theme play, but did not told the truth that the recovery is limitted or just a pin size recovery.. foreign fund started buying our counters but not in a big way. If ringgit is at 3.50 to 4 it still will benefit export counters
2016-02-14 16:15
So why everybody is getting panic, just some few negative blips in their datas, why everybody is getting panic.. purposely they the government raise the levys, government dirty hands are also in this play, trying to change the theme play, export counters to other sectors, that will benefit from ringgit recovery.. becarefull our government is a very corrupted one, their play is quite dirty
2016-02-14 16:23
Many dirty parties tried their level best in changing the theme play, but it is not working at all. Just wait n see what their next move will be, in giving blows to export counters, levy is put on hold now. So just wait n see
2016-02-14 16:27
---->>>>desa, when u say conviction, is it stick to the reasons why you buy the counters initially and install bullshit filter ignore there noises??
You know what is the beautiful mindset here?
It is that KYY still intends to play within the universe he is already familiar . You have to sell to take advantage of market movements. IF you don't sell, you cannot take advantage of your temporary bearishness. But successful people always prefers to play within the universe they already familiar with...........I notice a lot of newbies jump here jump always looking for the next miracle.
---> if you ignore the noises, why/how you gonna lock the profit since you know that drop of the price is just temporary and swinging of the markets are just due to others's emotion. first they deny, den comes the capitulation.
2016-02-14 19:26
tony
Conviction does not come as easy as you think. The market is full of uncertainties...where does the Conviction come from?
It can form the basis of a book, I think.
a good summary ..."Conviction of course, must come from experience, from knowledge, from habits and from following the companies that you wish to invest in....Knowing every thing you need to know about the investee companies. "
I know lots of very smart people who cannot develop Conviction and so cannot make money from shares.
perhaps the smarter one becomes, he develops less Conviction and more skepticism. but there must be a good balance between Conviction and Skepticism.
2016-02-14 20:11
Tony
But successful people always prefers to play within the universe (shares) they already familiar with...........I notice a lot of newbies jump here jump there always looking for the next miracle.
A list of favorite shares and play within this list..............this is another habit of successful traders. of course the list can be amended as the need arises.
2016-02-14 20:24
i don't know what is conviction in investment,but i know of value-investment, i stick with those stocks , that i consider have intrinsic value, and bright future prospect; and stay far away from those "goring stock";and stocks ,whose management that can't perform,ie, not making good moneyfor the company
14/02/2016 20:38
2016-02-14 20:42
i see what you mean. I agree with ur CONVICTION. Other than those knowledges from the text book we require experience. One to be successful in investing we must know how to master our emotion which separate those 20% from the remaining 80% of investor.
GOod. hope to see more post from you :)
2016-02-14 23:35
no Conviction means sell too early. Fall in love with the winners means cannot sell at the top....tough balance.....lol.
<i don't know what is conviction in investment,but i know of value-investment, i stick with those stocks , that i consider have intrinsic value, and bright future prospect; and stay far away from those "goring stock";and stocks ,whose management that can't perform,ie, not making good moneyfor the company >
2016-02-15 00:05
no Conviction means sell too early. Fall in love with the winners means cannot sell at the top....tough balance.....lol.
I wished there is a differential equation where we can find the turning point, the optimum point, but there is none....even IMB's Deep Blue cannot get an answer.
2016-02-15 00:24
Food for thought
Reading enriches the mind....no doubt about that....but the habits of a winner?
That is some thing else.
Some people just naturally have better instincts than others......you will not find this hypothesis discussed any where.
On making money from stockmarket
Is it advanced Math? Advanced accounting? Advanced algorithm ? Advanced cash flow methods that allow KYY to benefit handsomely from the HK crash?
...or just plain old businessman instincts for risks and of risks?
Weren't there armies of accountants, economists, professors and valuers and CFAs in HK at that time?
2016-02-15 08:05
thx for info sir koon yew yin , still need to learn more from you , god bless
2016-02-15 18:23
there is a danger in margin financing... when worldwide stock market plunge,all shares will be affected... with margin financing stocks , it will drop even more cos force selling... have to be careful ...
2016-02-15 21:09
when times r good.. margin financing definitely a good way... but seems like times gonna be real tough worldwide, it's better to buy shares with only extra money in hand that can be lost...
2016-02-15 21:16
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hahahahaha
Posted by murali > Feb 13, 2016 06:14 PM | Report Abuse
If u dont get yrself killed when market crash, u shall become stronger...
2016-02-13 18:23