bsngpg

SOS talked fact, at least it reflects the fact of my investment records in both unit trust and Bursa. Thks.

2014-05-23 07:24

sosfinance

Over a long run (more than 10-20 years), whichever method(s) makes you a high return (15%-20%) is a good method.

I notice, a lot of reference is made to super investors like, Benjamin, Warren Buffett, Munger, Walter Schloss, and many other gurus. Some investors like to imitate their "method" or "style" of investing. Please be careful, they are referring at NYSE which market cap of about USD15 trillion and stocks that has 50 to 100 years history and also global while in Malaysia, our Bursa market cap say around RM1.5 trillion, or USD0.5 trillion, most of them either tightly held by major shareholders or GLCs, kampung champions, limited float (easily being cornered), M&As rules that is different (doesn't not encourage hostile takeovers).

So, one have to "improvise" the method drastically to suit our BURSA. Mr Koon method of investment is very BUSINESS LIKE way, and their thoughts are very different from other investors. He look at bigger picture, and bet heavily on what he "felt" are the undervalued stocks. He likes plantations stocks, comparing selling price say RM3000 per tonnes vs cost of productions of RM1300 per tonnes, he does not refer to plantations' ROE much, because, lots of them are below 10%. He prefer under research stocks. He bets heavily on a FEW stocks. And I am sure he donates lots of his profits to the unfortunate.

Generally, a lot of new investors pay lots of tuition fee for the stock markets. Just imagine, assume the unit trust market NAV is RM400billion, and 90% are making loss, i.e. RM360 billion is not performing, and being charged 1.5% disregard their performance, RM5.4billion is paid yearly to feed the agents, fund managers, analysts, stock brokers, etc. DON'T we think it is BIG biz out there?

2014-05-23 09:25

oopstikus

I agree with what you've said and you definitely has a point there but regarding the choices that you've mentioned.

It seems like one will never learn if everything pass it to the fund manager, or sifu? Do you think so? I believe one will need to make some mistaken along the investment journey so that one can learn which technique or style that suit them best.

Are you a fund mananger?

2014-05-23 16:19

sosfinance

I treat is like a game, sometimes you win sometimes you lose. For fun, just like badminton. But over the decades, your skills will improve. It is the process that I enjoy. Will have great fun telling my kids, how I nearly lost his/her education funds and came back with a big bang. But today, the newbies have an advantage, Internet. Learning curve is definitely faster.

On a more serious note, based on the statistics I have seen, an average investor is better off to search for a good FUND MANAGER, or buy an ETF on stock index. This is good for people who are busy and doesn't enjoy playing the game or have no time for the game.

2014-05-23 18:37

bsngpg

Even though I made up just one of the many data points among the 95%, my gut feeling told me that the published statistic is true.

In the current hot bull market, many inexperience investors would disagree with the statistic as money is not difficult to be earned from Mr. Bull. However over the long term, most of the quick profit will be returned and very likely plus a big cut on own capital as an heavy interest and learning fee. "

Same vote to unit trust but on bright side. I am a very naïve and passive investor with progressive withdrawal from EPF into Public Mutual and Prudential (east spring) for the last 10 years. I have never sold a single cent and my current paper return is 101% return. Does this 101% return outperforms KLCI ?

On another point – “choices”, I agree that one of the very effective ways to make an outstanding return is by following great Sifu likes Len Yan(Fong SiLing). However he seldom teaches or let you know his movements in Bursa.

Where to find another super investor SIFU?

2014-05-23 22:31

sosfinance

Dear readers, please pardon my typo and grammatical errors. @bsngpg, using Rule of 72, if you double your money in 10 years, your average return per year is 7.2% (72/10). You will have to benchmark with KLCI during the same period.

Well, remember 1993, they said, just throw a dart, and you sure gonna make money. But most gave it back in 1994. All newbies need to pay tuition fees. But, with Internet, hopefully, they will pay less fees. There is another one in 1998 and a few more later on, every time new stories. Many of my peers gave up. Few survives.

Even with the statistics pile against them, most still think they can out perform the KLCI. Just like casino, why gamblers still visit it knowing the probability of winning in a long run is very slim. The participants these days are different, due to the internet, it attracted a lot of day traders and many clubs involved in technical analysis (just like property clubs). The temptation is there. Those who haven't experience the few crashes, do not know the meaning of being burnt.

Frankly, the good unit trusts that makes around 9-12% p.a. for long term, I believe is less than 10%. The platform will change over time, when in future, we are exposed to ETFs, with no upfront fee or very low management fee will eventually wipe out some of the unit trusts that do not perform.

Some of the investors sound so confident, as if they are the operator of the stocks. Some even said financial never lies, so funny. Always remember, the information we get today is sometime not second hand, sometime it is third hand. At least fund managers or analysts is slightly better than an average investors.

Instead of looking for SIFU, either we become our own SIFU. Enjoy the game.

2014-05-23 23:59