*****
S= Q r ( modified)
S= Q r ( modified)
Success , S, is equal to the product of Ability to Execute, Q, and rate of return of the opportunity, r.
Q is a product of Knowledge, K and Personality/ Character ,C.
Thus, the modified version of the above success formula is
S = KC X r
While knowledge can be gained by effort, personality/ character and talent are innate.
C determines your preferred methodology. ….whether short term or long term, focused or diversified, high beta or low beta, value investor or growth investor, got grit or no grit, speculator or investor. Trying to change strategies without changing C is an exercise in futility., and sub optima.
Its wiser to know thyself and fit the strategy to the C then to try to change C to fit the popular strategies. Wiser to perfect the tactics required to fit the optima strategy than to act against your innate Nature.
Knowledge is not skill. Skill comes from repetitions, practise, talent and having the right temperaments . In the modified formula, we have replaced Q with KC in order to examine what makes Q work.
KC stands for knowledge and character. One without the other is insufficient. Not enough to make a difference. Having expert knowledge is not enough to make a difference. You also need the right character/ personality for the right market.
Success in stock market , as every business man knows, you also need grit, tenacity, fiecesomeness, different from the other 99%, stubbornness, never say never, optimism, can do attitude, focused, concentrated, clarity, keep it simple as simple as possible. You need a bulldog quality, bite and don’t let go.easily.
"people want to invest, they want to be successful.......they need to have big dreams, and grit....and of course, knowledge and mind set."
Take Koon YEWYIN for instance. A lot of people admire him, a lot of people in i3 laugh at him. Admire or laugh at, the same qualities that people laugh at are the same qualities that others admire. Not easy being the 1% especially if the 1% come from the stock market and not from creating stuffs that people want.
Success and failure are close cousins. Its yin yang. You cannot get one without the other. No risk no reward. Its a personality thing.
One thing people can admire in KYY, he uses his own capital. Not just talk, put his money where his mouth is. Got skin in the game. Willing to take risk. Focused and concentrated.
RE-EXAMINING THE ROLE OF R
Perfect stock picking requires us to pick the one with the highest r in the time allocated and then allocate as much capital into it as is available. Absolutely the most intelligent way to trade the market. No need many ideas a year. A few will do to make it a fruitful year. Too many ideas, too many trades, some lose, some make money, at end of the year, feed the remisiers only.
Act and act big , focus and concentrated when the target price gives a huge possible return. ….like when Dayang is $ 1 and quarter profit X 4 X 10 is $ 4 and already 2 previous quarters of 5 sen each.
Or when Jaks is 50 sen because of forced selling of substantial shareholder with 33 % stake.
TYPICAL DURATION OF MAJOR TRENDS
From the lows to the highs, major trends are measured in years, not just days. And typically, uptrends are slow and gradual. Takes a long time to climb against a wall of worries. Down trends are fast and sharp. As traders and participants in the stock market, our objective should be to profit from the up trends ( takes time) and avoid the down trends ( as much as possible).
Traders have to find a way to benefit from the uptrends by staying in the market and to do it naturally according to their personality/ character. I mean, if you are managing a $ 100 million portfolio, you cannot be as fleet footed as one managing a $ 100,000 portfolio.
DARE TO BE DIFFERENT?
Dare to strike out on your own?
Dare to find what suits you?
Can we talk about best strategies without talking about personality, character, talent, risk tolerance?
I can define investing as participating in the growth of excellent companies…...and everything else as trading / speculations.
Definitions are important. Definitions focus the mind and help to make money, avoid losses.
UNCERTAINTIES
The future has many possibilities but only one will come to pass. Just because a certain possibility come to pass in 6 months, in 6 years, it was not the only possibility back then. No need to be too arrogant if make money or too humiliated if lose money. The future enfolds by quantum theory, many uncertainties, and probabilistic in nature. They say Hope for the best, prepare for the worse.
Our job is look at stuffs probabilistically and to lead a happy, relaxed life.
Ego, praises, criticisms have no role to play in leading a happy relaxed life.........
or trying to change the world, or trying to help other people make money from stock market ( or guarantee other people at $ 1.50 per share) also got no role to play in leading a happy relaxed life.............( KYY's mistake )
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Discussions
4 people like this. Showing 50 of 76 comments
This is actually a very very well written article. I like it! I totally agree.
2019-04-11 21:08
Heavenly PUNTER he made enough expenses from Gkent leh just few days ago.. don't doubt qqq3 you know
===========
Its true u know. I figured I can get $ 1.30 before next results with Philips involved.
2019-04-12 10:12
Hahhahahaha unker you so many years in Bursa liaoo... But now bull market, very difficult to judge who's really good.. because anyone can make money in a bull market... But if you lose money in a bull market i really speechless lah HAHAHA
2019-04-12 10:15
( BNF trader losses ) Philip This is actually a very very well written article. I like it! I totally agree.
============
like Icon says, it evolves over the years. The basic ideas are with me before i3 but i3 time gives life and form to it.
When I first come here, i3 seems to be dominated by people who thinks being an accountant is the only requirement for stock market success.....they call me a fake accountant for challenging the status quo.
My contribution and your arrival means investment can now be defined as participating in the growth of excellent companies.
2019-04-12 10:20
Icon8888 They should give you a Nobel price
========
no Prizes because non i3 members cannot relate to half of it.
2019-04-12 10:26
3iii qqq3
From your own assessment, which faculty you excel in:
==========
me? Before i3, I don't have the C for it........Now, trying very hard and confident I will do very well before I am 80....I have to catch up with KYY, u know.
2019-04-12 10:34
actually being an accountant doesn't make you a good investor... it certainly helps... But it's not the most important criteria... Until today I have problem making the statement of cash flow... But as long as I can read it, understand it and pass my exam I think it's good enough
Hahahahhaa
Let the accountants do what they are best at doing hahahaha
2019-04-12 10:37
I buta buta pick one lah.... no insider info, no special insight, no feel of industry...
I just dumb dumb hold... you better go follow some real sifus and punt some good quality stocks, I am just an amateur
2019-04-12 10:55
>>>
Heavenly PUNTER actually being an accountant doesn't make you a good investor... it certainly helps... But it's not the most important criteria... Until today I have problem making the statement of cash flow... But as long as I can read it, understand it and pass my exam I think it's good enough
Hahahahhaa
Let the accountants do what they are best at doing hahahaha
>>>>
The few accountants I know are not good investors.
Many of them speculate. One doesn't believe in fundamentals, and rely on charting.
To understand their behaviour, you need to analyse their past investing journey.
2019-04-12 11:01
Heavenly PUNTER > Apr 12, 2019 10:37 AM | Report Abuse
actually being an accountant doesn't make you a good investor.
==========
accountants are prudent and conservative and like to consider themselves as having value for money. Not bad traits.
But, stock market and businesses have to venture beyond that.
2019-04-12 11:08
3iii > Apr 12, 2019 11:04 AM | Report Abuse
Philip is the catalyst to qqq3 as Charlie Munger is to Buffett. :-)
========
I am no wallen the bufalo, never was and never can be....but Philips arrival has helped me in many ways.
2019-04-12 11:11
3iii > Apr 12, 2019 11:01 AM | Report Abuse
The few accountants I know are not good investors.
=======
Professional hazard. Accountants know too much about fudging figures so in their after hours play with charts.
2019-04-12 11:22
Correct correct accountant sometimes too careful liao! It's not a bad thing but you might miss out a lot of good returns! And they focus too much too much on numbers!
2019-04-12 11:34
Dear 3iii,
I am disappointed with your judgement. Of all the people you still unable to see who quack quack quack is?
Quack, quack, quack,
From your own assessment, which faculty you excel in:
K: Knowledge
C: Character
R: Rate of return
G: Grit ‘Sailang”
Allow me to answer your question. He had none, He only good in PLP, sweet talking, hoodwinked and backstabbing his targeted victim. You should ask him:
1. How many different ID he had used before? What knowledge did he impart except keep bad mouth KCCHong? And even used a deceased man (Optimus) to slander OTB (Just because OTB stands in his way to sell his JAKS Vision 2020 IPP to Mr. Koon)?
2. What character expected from him? Rigid is dead, flexibility is life: Me? I am a trader.I stay flexible, bends with the wind. With business sense, I look for theme plays. Look for the latest themes.......Stay the trend .....Life. Trade....learn to trade....plenty of opportunities to trade.......stock market is a Game...games people play.....it is not a maths puzzle for mathematicians to solve......... (Compliment from Icon8888, qqq3 is like cockroach. You cannot destroy him. They should give you a Nobel price)
3. Rate of return??? “me? Before i3, I don't have the C for it........Now, trying very hard and confident I will do very well before I am 80....I have to catch up with KYY, u know.” Please tell him what is the CAGR he needs to grow his small little sausage to be comparable to Mr. Koon?
4. Grit or “Sailang”. DK66’s TP on one of his heavily promoted JAKS is RM7.00. So ask him dare to sailing and margin finance into JAKS now.
I rest my case
Thank you.
P/S: Be principled.
“Boys, be ambitious!” Be ambitious not for money or for selfish aggrandizement, nor for that evanescent thing which men call fame.
Be ambitious for knowledge, for righteousness, and for the uplift of your people.
Be ambitious for the attainment all that a man ought to be.
2019-04-12 11:37
Icon8888 I buta buta pick one lah
==============
U call to buy Canone is a cun cun call....Early birds many worms already. On a strategic level, KJ shareholders can and should swap their cash into Canone.
As I said, these Canone people are grand masters and for genuine investors, what is better than investing in Grand Masters.
I also bought some Canone.
2019-04-12 11:45
BNF trader losses ) Philip This is actually a very very well written article. I like it! I totally agree.
===========
of course u like it. I use u as model.
2019-04-12 13:54
myongcc5 Skill= K + E.
=========
they always work better as a multiplication , not sum of parts because there is a positive feedback loop., one reinforcing the other. S = KE.
2019-04-12 14:06
>>>
qqq3 BNF trader losses ) Philip This is actually a very very well written article. I like it! I totally agree.
===========
of course u like it. I use u as model.
>>>
:-)
:-)
2019-04-12 15:09
S = KC X r
what about K?
what about the knowledge part?
not all knowledge are the same.
2019-04-13 17:42
there are the good knowledge and the bad knowledge.
there are :
- prepackaged knowledge ( like from seminars and TV shows )
- opinions disguised as facts
- knowledge that are spoon fed and self taught knowledge
the best knowledge are self taught. This is the internet age after all.
2019-04-13 17:47
what about knowledge provided by KC Chong?
Is it good knowledge or just one man's opinion?
Is it knowledge or opinions disguised as knowledge?
2019-04-14 00:54
true knowledge is how far u dig.............
BNF trader losses ) Philip > Mar 15, 2019 6:17 AM | Report Abuse
That is why I don't understand investors who are able to buy 30 stocks, when they can't even name the top 5 management team, their track record and all of the above at the top of their head.
You read the report many many times I assume. Can you name me the top 5 managers without referring back to the report? ( Warren buffet remembers all the managers of his companies by name). If you can do that can you name all the metrics I just put out above as it is all interrelated.
If you can't, I suggest you read the reports a few more times and memorize the details, or stick to companies you are familiar with.
2019-04-14 00:57
True knowledge is how far u dig....and how much thoughts you have brought into it.......not how many seminars u have attended.
2019-04-14 01:02
Posted by qqq3 > Apr 14, 2019 12:54 AM | Report Abuse
what about knowledge provided by KC Chong?
Is it good knowledge or just one man's opinion?
Is it knowledge or opinions disguised as knowledge?
In the last two years, quack quack quack aka Desa6769, Stockmanny, Brightsmart, Loneranger, etc. conning newbies and his master to continuously shouting to them sailang and margin Jaks and Sendai at RM1.80+ and RM1.40+ respectively. In the process, he made tons of money, and those newbies who lost their underwear when Jaks and Sendai dropped below 50 sen in just months are just stupid. So he said. Even his master who lost more than RM100m is stupid as quack quack quack was able to bite the hands which fed him, so he said.
kcchongnz wrote many articles to warn newbies about this conman who changed his id numerous time so as to continue conning newbies. You can find some of the threads here,
https://klse.i3investor.com/blogs/kcchongnz/123266.jsp
https://klse.i3investor.com/blogs/kcchongnz/167283.jsp
https://klse.i3investor.com/blogs/kcchongnz/168850.jsp
https://klse.i3investor.com/blogs/kcchongnz/176384.jsp
https://klse.i3investor.com/blogs/kcchongnz/186378.jsp
https://klse.i3investor.com/blogs/kcchongnz/151263.jsp
https://klse.i3investor.com/blogs/kcchongnz/134621.jsp
https://klse.i3investor.com/blogs/kcchongnz/133708.jsp
https://klse.i3investor.com/blogs/kcchongnz/132084.jsp
Those newbies who listened to me saved their underwear. If someone knew how to judge the credibility of others, and just gave a thought of what my opinions were, and he would have saved more than RM100m,from getting conned.
So what do you think the knowledge, or ""one-man's opinion"" I have been providing for?
2019-04-14 06:50
kc
two years already, u are so obsessed with Jaks and Sendai......
yet, u cannot see Jaks is a great investment at 85 sen today.
what is the use of your knowledge and experience?
2019-04-14 11:44
on Jaks...............
qqq3 Philips...go buy some Jaks.
Its not gambling. Its still investing even thought Jaks is not historically an exemplary company.
Its still investing in a company with great growth prospects., managed by CPEEC , the largest electricity contractor in China....and Jaks is only a passive investor with minority stakes. Once the thing is switched on, don't need Jaks to be genius to see money coming in. Its an IPP after all.
<$ 500 milion market cap, the market has not given much value to the IPP with income stream of $ 150 m pa.
2019-04-14 11:45
kc
knowledge does not require u to buy every Jaks out there.
but good knowledge suggest u can make some money with your knowledge.....your Insas can make money meh?
2019-04-14 12:06
kc, anyway I am dead serious when I write...........
Stock: [JAKS]: JAKS RESOURCES BHD
Apr 13, 2019 11:46 PM | Report Abuse
KC
Actually I am the least likely person to hard sell any stock., or for that matter, hard self myself.
I do not feel comfortable if people trust me too much or praise me too much like in this article.
https://klse.i3investor.com/blogs/qqq3/201987.jsp
I cannot bear the burden of responsibility for others....
I am happiest and most comfortable if people sees me for what I truly am............just a small time trader in Bursa.
2019-04-14 12:13
Posted by qqq3 > Apr 14, 2019 12:13 PM | Report Abuse
KC
Actually I am the least likely person to hard sell any stock., or for that matter, hard self myself.
You didn't hard sell Jaks and Sendai? What have you been doing the last two years shouting relentlessly everyday sailang and margin jaks and Sendai at RM1.80+ and RM1.40+ respectively? It is all over i3investor.
You hard so much and made so many newbies lost their underwear, and your master lost more than R100m!
And at the back you claimed you had make killings on Jaks and Sendai.
2019-04-14 13:01
Posted by qqq3 > Apr 14, 2019 12:13 PM | Report Abuse
kc, anyway I am dead serious when I write...........
I do not feel comfortable if people trust me too much or praise me too much like in this article.
https://klse.i3investor.com/blogs/qqq3/201987.jsp
I cannot bear the burden of responsibility for others....
I am happiest and most comfortable if people sees me for what I truly am............just a small time trader in Bursa.
Wow, people made a couple of comments and you construed them as praising you.
You know what, this is another opinion here.
You wrote nonsense, nothing useful for investment, but just quack quack quack for nothing.
2019-04-14 13:04
kcchongnz Posted by qqq3 > Apr 14, 2019 12:13 PM | Report Abuse
You wrote nonsense, nothing useful for investment, but just quack quack quack for nothing.
=============
but u don't have what it takes to appreciate my works. Anyway, Insas people will not appreciate my work.
2019-04-14 14:24
kc...to put it bluntly, u belong to the era of dinosaurs.
My Golden Rule of Investing
Apr 14, 2019 1:58 PM | Report Abuse
in the algorithm between between quality and your margin of safety and assets and low quality earnings...........raider...u belong to the dinosaur era never to see light again.
2019-04-14 14:26
Posted by qqq3 > Apr 14, 2019 2:24 PM | Report Abuse
kcchongnz Posted by qqq3 > Apr 14, 2019 12:13 PM | Report Abuse
You wrote nonsense, nothing useful for investment, but just quack quack quack for nothing.
=============
but u don't have what it takes to appreciate my works. Anyway, Insas people will not appreciate my work.
Appreciate your work? What work?
You made my toes laugh.
By the way, why do you link Insas with me non-stop? Did I promote it like what you have been doing for the last two years, causing your master to lose more than RM100m, and newbies their underwear?
2019-04-14 15:19
Posted by qqq3 > Apr 14, 2019 2:26 PM | Report Abuse
in the algorithm between between quality and your margin of safety and assets and low quality earnings...........raider...u belong to the dinosaur era never to see light again.
What the F*** is that? ""Algorithm between quality and margin of safety""?
This is pure garbage-eating cockroach.
2019-04-14 15:22
Posted by kcchongnz > Apr 14, 2019 3:22 PM | Report Abuse
Posted by qqq3 > Apr 14, 2019 2:26 PM | Report Abuse
in the algorithm between between quality and your margin of safety and assets and low quality earnings...........raider...u belong to the dinosaur era never to see light again.
What the F*** is that? ""Algorithm between quality and margin of safety""?
=====================
KC...share market is always about striking the right balance. And choose the better option.
yes...there is this ever present conflict between quality and your margin of safety and assets and low quality earnings..and your so called cash cows.........
Who is that Benjamin Graham guy? I think the world has passed him by......Even your fellow value investor Tan Teng Boo Icap admits the world has changed. I call BG a dinosaur too.
and your cash cows can become very moody cows indeed.
https://klse.i3investor.com/servlets/forum/600202164.jsp
Uber admits yesterday, shareholders may never see profits in Uber, yet Uber is still a very sought after share.
go figure.
2019-04-14 15:33
In this era... it's no longer like Benjamin Graham days! Nowadays we look at earning quality and consistency and earnings growth too! You don't just look at assets! If a firm needs to have a lot of asset to maintain it's earnings, very likely it's capital expenditure intensive..
That's why you see MYEG can have PE way above most of the companies you see, their profit margin is strong and they don't need 1 dollar of asset to generate 1 dollar of sales!
2019-04-14 16:02
kc....the power of the internet and the millennial generation, their tastes, their wants and desires means the world has passed Benjamin by.
I officially classify u and that raider as belonging to the dinosaurs.
2019-04-14 16:17
Safety 1st loh....!!
The 1st strategy is not to lose monies mah....!!
The 2nd strategy is remember the 1st strategy loh...!!
In a nutshell it is all about margin of safety mah....!!
Thats why insas will beat QL loh.....!!
Btw Tan teong boo is not a margin of safety investor, nor a quality stock investor , he is just a market timer loh...!
Posted by qqq3 > Apr 14, 2019 3:33 PM | Report Abuse
Posted by kcchongnz > Apr 14, 2019 3:22 PM | Report Abuse
Posted by qqq3 > Apr 14, 2019 2:26 PM | Report Abuse
in the algorithm between between quality and your margin of safety and assets and low quality earnings...........raider...u belong to the dinosaur era never to see light again.
What the F*** is that? ""Algorithm between quality and margin of safety""?
=====================
KC...share market is always about striking the right balance. And choose the better option.
yes...there is this ever present conflict between quality and your margin of safety and assets and low quality earnings..and your so called cash cows.........
Who is that Benjamin Graham guy? I think the world has passed him by......Even your fellow value investor Tan Teng Boo Icap admits the world has changed. I call BG a dinosaur too.
and your cash cows can become very moody cows indeed.
https://klse.i3investor.com/servlets/forum/600202164.jsp
Uber admits yesterday, shareholders may never see profits in Uber, yet Uber is still a very sought after share.
go figure.
Heavenly PUNTER
Posted by Heavenly PUNTER > Apr 14, 2019 4:02 PM | Report Abuse
In this era... it's no longer like Benjamin Graham days! Nowadays we look at earning quality and consistency and earnings growth too! You don't just look at assets! If a firm needs to have a lot of asset to maintain it's earnings, very likely it's capital expenditure intensive..
That's why you see MYEG can have PE way above most of the companies you see, their profit margin is strong and they don't need 1 dollar of asset to generate 1 dollar of sales!
2019-04-14 16:23
Posted by stockraider > Apr 14, 2019 4:23 PM | Report Abuse
Btw Tan teong boo is not a margin of safety investor, nor a quality stock investor , he is just a market timer loh...!
==========
what market timer? He has not timed any thing for 10 years. I was at his seminar yesterday.
2019-04-14 16:26
He time mkt will crash to get in but mkt has not yet loh....!!
Thats why hold so much cash mah.....!!
Posted by qqq3 > Apr 14, 2019 4:26 PM | Report Abuse
Posted by stockraider > Apr 14, 2019 4:23 PM | Report Abuse
Btw Tan teong boo is not a margin of safety investor, nor a quality stock investor , he is just a market timer loh...!
==========
what market timer? He has not timed any thing for 10 years. I was at his seminar yesterday.
2019-04-14 16:29
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
3iii
qqq3
From your own assessment, which faculty you excel in:
1. K
2. C
3. r
Your answers:
1 only
2 only
3 only
1 & 2 only
1 & 3 only
2 & 3 only
All (1,2 & 3)
:-)
2019-04-11 20:34