But it would be difficult for you to diversify into other asset class right? Like real property and gold or commodity. I am like that years ago. It takes time and pain to admit my own mistake.

KC can the efficient frontier be a pool of different asset class? Like Property, bond, gold, commodity together with stocks?

Very Educational.

Should not premium or discount of RNAV applied according to managemnet capabilities, track record, branding, etc. Now we have concept of university campus, why should there be a discount of 55% on Paramount branding?

RNAV Rm4.18 discount 55%=RM1.88 Why discount 55%? What does it mean?

The new business model is auguring well for company business prospect. I always like education business.

I like the story of Acquiring Consolidation internal Restructuring Replanting and being Ambitious with National Interest at stake. We are here to learn the business evolution. It is going to be a Good case study.

wah, 8.85 i wonder what will happen to those 99.9% of people who wont be able to sell at 8.85?

Guess what is the year end price? Make a promise yourself each new year that you must see the year end price.

Bonia is abit under researched than Padini. Personal wear preferance is Bonia.

Syiok ya. Rugi then investment for 10-20 years lo.

Can anybody doing investment and trading at the same time?

if you just own 45% of the company while other 55% how can you incorporate the profit into your accounts even though the joint company and its projects are doing good?

Is it very unusual activity for Kimlun to buy Shah alam land Or is part of usual Business activities for its ongoing core business operating nature?

Help and Inti being privatized due to low valuation. Specialized Education business is a good business.

Choose the company with your answer NO=I wont sell this one even when the figures are bad. this is our investment baptism. And keep doing what you are good at.

With the trust in the Business Perspective itself dont you think you can Buy when price is reasonable, even when it is top priced? Or lower priced when market is bad. Even depressedly priced when company is in crisis/trouble.

You start to have doubts over your company selection right? Or your answer is certain business Yes. Certain business No. Why our answer to certain business is No and in fact we are glad that price falls 20%. Our trust is like a religion pilgrimage.

You said it well when you advocate 1)High DY/Net cash/FCF over Revenue as I believe Business is War time and Cash is War Chest for defense and attack. 2)Conservative Growth projection and Growth is a Bonus. Especially when you keep faith on Fima/Kfima business and remains unfazed while its cyclical plantation profit is on decline for past 2 years as you believe in its Business. 3) High return over Asset/Capital employed to prove that this is a high margin business.

So when time is bad figure is bad and business perspective is bad and market down 20% You have to exit the market right?

Fair enough that is your systemic approach. you keep on Buying undervalued stocks and sell it when it reached your intrinsic value and repeat that over. Fair enough. One question, how do you know when you are wrong? When the figure turns bad? Any exit strategy?

This investment game is best played out like this=Minority/A few have high confidence and majority have low confidence. Since majority have low confidence so the price would be stagnant for years while minority keeps accumulation. At the meantime company is growing from strength to strength until One day there is re-rating.

If we can ascertain with confidence and high percentage of accuracy of discounted future cash flow of certain durable business for the next 20-30 years we will know with more confidence then it is top priced or lower priced compared with other alternative investment/savings.

As you said earning yield 12% DY 5% retained earning/shareholder funds 7% good company/growth in near future/long term depends how business evolve, not bad not excellence either ya.

Mr Koon is a prominent businessman. Surely He is few level above each of us and his foresight is few years ahead of us. Who are we to analyse his company right? Our analytical standard is far below HIs foresight right?
Well having said, could he be wrong about his own company? Surely, everybody could be wrong Even the founder could chart the wrong course for the company future. Lets be fair ok. This is not criticism right?
At the moment we appreciate Mr Koon continued to share his Business Insight with us. I hope each one of us are humble enough to learn.

dividend plus stock performance could be 10% return company as its business is as such.

As i advised instead of saying i am right and market is wrong, respect the price as the way it is. Understand why it is lower priced first.

There are at least 3 things that we could not understand/estimate:

1. The magnitude of forces that keeps price at low range; How Big is the forces behind that would be able to keep price at lower range? Can you fight it?

2. The amount of effort of past 10 years that has been put in to push up the price But fail, dont you know everyday people has been trying for the past ten years by all means?

3. What is the right catalyst for the situation? If you dont know the diagnosis, how do you know the medicine right?

The above company business model are not going to change for a Long period of time. Your rate of return over a Long period of time is determined by the Price you pay Nowadays. If you pay a High price then your rate of return would be lower. So i strongly disagree with the saying that you will lose out even you invest in the Best Company in the World by paying high price.

Most of KC counter has been shooting to the moon. Ironically the counter that i like kfima/particularly fima has not really moved yet.

I try to get some Fima but lack of volumn it further confirm my conviction that it is a good counter that nobody is selling to me at lower price.

IF nobody can be a saint then be a good man faithful to the family right? If nobody can be a Great investor, then be more professional speculators. Right? So we better list down all comprehensive risk associated with this Business and more importantly our capital downside risk as at times price moves before fundamental changes=insider trading.For example below Rm2 we cut loss that is 10% downside. Well nowadays there is 20% gap down then you lose 20% at market open and you still need to cut...

so there is different mindset and approach in investment and speculation by asking ourselves few questions below:

1. Have I ever Hold any stock more than 10 years?
2. Do I read the market price on daily basis OR only on MONTHEND closing price? Well sometimes I reckon that price might drop 20% in a month right?
3. Do i always calculate my profit and loss or stock performance even on yearly basis?
4. Do i welcome stock drop more than 20%?
5. Do I always look for undervalue stocks instead of Great Business? Well now we know that all good company has fetched higher price, so we have no alternative But to look for undervalued company?

So I guess most of us are just speculators. BE a professional one then. Be sure to know when you are wrong and when to get out.

Dont believe me. Look at everyday volumn it is amazing. Everyday there are people selling Nestle, Public, LPI. It is amazing.

There is why there is always Buyer and Seller. Because always one side say Boom One side say Bust. No mater at what price One side would say sell and the other side would say Buy. Once everybody understands this, there is no need to be angry and argue.

KC has been genuine and has contributed so much in this forum and has provided us with so much insight and learning curve. Anyway a person preference in stock selection is much various than food selection or music preference. It is amazingly different taste.

It is not that difficult to identify good Business that yields good visible earning 5-10 years and beyond in following areas and IF you agree on that remember your insistence to pay a good price for that as well as good management and market leadership for its product premium/differentiation:

Only when the company has ability to grow in size and economy of scale and has pricing power and under good hand of management, then the company valuation will grow.

1.Plantation=It is not that difficult to envisage that price of crops and land value will appreciate over Long period of time as well as production; I like United Plant;
2. Food and Beverage=It is equivalent easy to envisage people are still drinking coffee, eating ice cream over the next 20-30 years and beyond and population is growing and their demands and expectation is growing as well; Focus on premium branding; I like Nestle, Dutch Lady
3. REITS- Holding on with Premium Property and good rental income over Long Period of Time; I like AEON if you think it is REIT.
4. Clothing and Jewellery and electronics consumer products=Increasing trend for Premium Brand; Surely population is growing; I like Padini and Bonia and panamy
5. Insurance=Its compulsory to Buy Car insurance and fire insurance. and more awareness on life planning and protection and retirement plan. I like LPI
6. Financial= You will like Public if you think it is the Biggest consumer products financing company;
7. Manufacturing=Our country is rich in rubber and palm oil and oil and gas. HAVE we took advantage of that? We are monopoly in manufacturing in this sector. Look at Harta and Pchem and Petgas
8. Servicing= You would like POS if you think it is a warehouse or wholesale business.

So it is going to be a professional speculation again whereby lots of investor betting on lower priced and hoping for Big gain. That is nothing wrong if You are professional and risk-controlled and more importantly you are not addicted and knows when to take profit and get out. SINCE very few great company around nowadays and very few people interested in investing anyway.

Probably tc2012 comments will shed some light on the so-called lower priced issue. Also, anybody knows about china power plant contract? Any favourable term or bad term on its expiry? Any risk associated with this kind of foreign investment? Who knows right?

Whether it is market efficient or not, learn to respect the market first. Dont trade or invest like we own the company or we are market maker.

I don't like to say it is undervalued or overvalued. We have to respect market as the way it is priced.

We always respect the market as its price has discounted future cash flow for next 20 years. Price is as such for a good reasons. We have to respect it if it is Top price as it is top priced for good reason. We also respected it if it is lower priced, it is lower priced for good reasons as well.

Sometimes there is still no great company around. So the investment house has no alternative but to comes up with THEME play. So if suddenly there is a theme play on Power sector, what can i say? Good for market liquidity.

Lots of analyst like KC, like me, like everybody else is looking for great NEW company. But we simply dont know where to find a great NEW one. Sometimes we have no alternative but to read all paper reports and analyse half-tinted reports. And even hope for upcoming Bonus issues. BUT In everybody hearts we know the great company is NOT coming through analysing of its data/reports.Yes Reports is confirming your belief. BUT YOU DONT IT THE OTHER WAY ROUND. But it is so hard to look for great company right? So we do it the other round.

If it is a great Business, you know it is a great Business. You know you have just come across a great business that will come through test of time stronger and stronger. If you dont know, then you just dont know. If you know then you really really know. Appreciation is a Gift from above.

So it is a power business, the regulated business. Are we going to benchmark it against market leader like MMC, TNB or YTL Power? Or KC has concluded that it has better cash management and efficiency than those mentioned? Is this regulated business still going to get higher margin like before? As at the moment, YTL Power share perfomance for past 10 years is languishing. If your business model is so much regulated even comes to begging for contract/price revision/better terms, the owner might always boast about their business model. I just shake my head in disbelief.

It is still a very good habit to ask before i invest if there is any better alternative. If there is no better alternative we cant force ourselves to diversify just to diversify. That is why Warren portfolio is so concentrated.

After privatised, where can you find this kind of Business cash cow?

I really like this printing Oligopoly Business and Plantation Business of Fima. I hope it wont be privatised.

I would be much more comfortable if I could befriend with directors and visit their office and know their products and More importantly what competitors talks about them than just knowing the company from reports. What I mean is we really need to spend a lot of time to think about their business As if you want to Buy then dont sell. If you want to sell for profit Dont Buy.

I would say minimum net profit of Rm100mil with net cash as a good criteria and you must know your company like your neighbourhood. To understand their competitive edge and monopoly business. Why min Rm100mil net profit and net cash? As I believe in Economy of Scale and Ruthlessness in the Cut throat Business and No Funding of Growth by Debt and Cash is King and Business could be wiped out Overnight.

Dear KC, i admire your fundamental selection. Having said that, we cant really know the real economy strength of company until the recession/crisis Hit. Who is swimming naked until the pool is empty right? Nowadays, the figure of your company selection is too rosy due to its small-sized? While You can be right with High risk appetite.

I am really looking at company with more than 20 years of records like Nestle,Dutch Lady, LPI, United Plantation, Public Bank,AEON, Mflour, Panamy, QL and all those company with tested Business model. Having said that, I like your Kfima, Fimacorp and jobstreet. I dare not touch construction and technology sector due to its volatile nature.

The world will never one day run out of economy woes and big news. It is not quite fruitful to predict the market. It is much better to study about business model and how business evolves.

We should know the odds if it is short term bull fighting long term bear.