Posted by kcchongnz > 2015-02-08 23:51 | Report Abuse

This is the type of articles investors should read and learn from it.

Look for companies with high return on capital, in ROE and ROIC, and not chasing revenue and profit growth without ROE or ROIC higher than the cost of capitals.

Look for companies with little debts as economic downturn can cause misery to the companies and their investors. Companies shouldn't have high debts, what more to say about individual investors. Investors with high leverage and margin financing are certainly looking for trouble.

Cash flow is very important. Good cash flow can meet any challenge, as the article said. How many individual investors pay any attention to cash flow? I am afraid very few do. Ignore cash flow at your own peril.

Yes, dividend. Earnings can be faked, but not real and consistent good dividend.

Last but not least, do not put all your eggs in one basket. This is a good maxim in investing. It is the only free lunch in investing.

A friend of mine ignored all the above. Unfortunately it is like a perfect storm. He was unlucky in a sense as he lost quite badly in a concentrated portfolio of a few major stocks with heavy margin financing. Those few stocks were selected mainly based on some high revenue and profit growth expectations and disregard on return of capitals which were very low and little cash flow.

Coincidentally the share prices of all of those stocks lost heavily when the general market was actually up in the last few years. It was a double whammy as the shares were bought at a high valuation with high growth expectations which did not materialize. The problem was accentuated the last few months when the market fell abruptly.

This is no bullshit story.

Posted by AyamTua > 2015-02-09 00:03 | Report Abuse

kcchongnz .. happy new year bro.

Posted by growthinvestor > 2015-02-09 00:04 | Report Abuse

bs talk kcchongnz!do not belittle investors on revenue and growth school because you are terrible in it.respect others and stop harping on this school is better than the rest.the best investos, warren buffett and charlie munger are growth investors that practice compounding!

Posted by kcchongnz > 2015-02-09 09:44 | Report Abuse

Posted by growthinvestor > Feb 9, 2015 12:04 AM | Report Abuse
bs talk kcchongnz!do not belittle investors on revenue and growth school because you are terrible in it.respect others and stop harping on this school is better than the rest.the best investos, warren buffett and charlie munger are growth investors that practice compounding!

1) Which part of my statement bs as alleged by you?

2)Which part of my comments did I "belittle investors on revenue and growth school"

3)I do have quite a number of growth stocks in my portfolio here:

http://klse.i3investor.com/blogs/kcchongnz/67547.jsp

Pintaras, Prestariang, SKP Resources, Jobstreet, NTPM, CBIP, Homeritz, Willow, Datasonic, Magni, Latitude, Scientex, Tasco. In fact more than half of them are growth stocks. But they were bought not at high valuation.

So which stock here that I am terrible at that as in your sentence here? "you are terrible in it." in your statement?

And which growth stock you have recommended which is terrible good?

4) Can you show your theoretical background to prove your growth story against my only statements mentioned in my above post? I can show you mine.

a) "Look for companies with high return on capital, in ROE and ROIC, and not chasing revenue and profit growth without ROE or ROIC higher than the cost of capitals."

b) "It was a double whammy as the shares were bought at a high valuation with high growth expectations which did not materialize."

5) Of course Buffett and Munger are successful investors; more of buying good business at reasonable prices. They do not "chase" growth stocks at high price. Do they?

6) You and I are not Buffett and Munger. We can never be.

Posted by truthseeker1 > 2015-02-09 10:18 | Report Abuse

That doesn't mean high dividend stock is always good. When their business suffer their share price also drop. Eg are Padini and Pantech.

Posted by Intelligent Investor > 2015-02-09 10:27 | Report Abuse

Let's review the fact.

Padini - http://www.klse.my/stock/result/financial/last10fy/7052.jsp#stockDetailDiv

Padini able to maintain the revenue and profit in current economics context, and it able to generate 20% return from owner capital. Apart from that, Padini able to generate FCF and share the cash with its owner with dividend in every quarter.

http://www.klse.my/stock/result/financial/last10fy/7052.jsp#stockDetailDiv

What do you think on this figure?

Posted by kcchongnz > 2015-02-09 10:33 | Report Abuse

Posted by truthseeker1 > Feb 9, 2015 10:18 AM | Report Abuse
That doesn't mean high dividend stock is always good. When their business suffer their share price also drop. Eg are Padini and Pantech.

You are certainly right especially when you always purposely try to pick on one or two stocks in someone's portfolio of scores of stocks.

Shouldn't you be a little impartial and look at a bigger picture in a diversified portfolio of high dividend yield stocks with good fundamentals?

http://klse.i3investor.com/blogs/kcchongnz/62033.jsp

Or are you so good in investing in a couple of stocks that you can foresee so accurately that their business will deteriorate in the future?

Posted by growthinvestor > 2015-02-09 16:06 | Report Abuse

i have no time to write long like you.i challenge to you a competition.if you believe you are better than me,then accept it.if not,no point talk anymore.


loser out from i3 forever.

same as stockpick 2015 rules.each submit selection on 30/3/2015.you can see my stock selection if you accept the challenge.

buy and hold 1 year - 4/5/2015 until 3/5/2016.

1 month buffer between selection and start date to prove ability picking stock and avoid hot stock move on april 2015.


deal or no deal.give the answer on this friday 13/2/2015.

Posted by milopanas > 2015-02-09 16:16 | Report Abuse

biar saya tolong post.value investing lawan growth investing.tapi saya rasa dia takkan berani terima challenge ni.

Posted by valuehunter1 > 2015-02-09 16:39 | Report Abuse

haha this growthinvestor is damn funny...

Ppl want to post, post la..... wtf got to do with you ? You dont like his style, dont read it la... who are you to tell ppl to get lost ? He got stomach ache whenever ppl talk about value investing...

This milopanas is another tinkosong making noise... you tend to see these losers following KC wherever he goes... they got nothing to show except finding the faults in others...

Posted by LEE CM > 2015-02-09 16:48 | Report Abuse

WELLCALL.....

Posted by kcchongnz > 2015-02-09 17:10 | Report Abuse

Posted by growthinvestor > Feb 9, 2015 04:06 PM | Report Abuse
i have no time to write long like you.i challenge to you a competition.if you believe you are better than me,then accept it.if not,no point talk anymore.
loser out from i3 forever.
same as stockpick 2015 rules.each submit selection on 30/3/2015.you can see my stock selection if you accept the challenge.
buy and hold 1 year - 4/5/2015 until 3/5/2016.
1 month buffer between selection and start date to prove ability picking stock and avoid hot stock move on april 2015.
deal or no deal.give the answer on this friday 13/2/2015.


Wah, fierce man!來勢兇兇

What good is this "challenge" for you and me, and others? What will it show? Prowess in who is good at betting and gambling? How would one year prove who is good in investing? Is that the style of your growth investing, one year can see the result of your growth strategy? Is that suppose so? Must ask your sifu Buffett and Munger.

No, I am not taking your bet. It sounds extremely silly and stupid for me to do so. I am a value investor you know. I thought the growth investing has the same principles, that growth investing is a long-term endeavor, isn't that? I don't know, I thought growth investor like Philip Fisher, Warren Buffet, Charles Munger are all like that. Of course "growthinvestor" is different. I know I know.

Yes, I don't know I will win or lose in your 'Challenge" in a one year period. I like to dwell in i3investor. I don't want to disappear from i3 because I lose the gamble, like a coin tossing competition.

But why you want to challenge like that? Weren't my questions simple and straightforward? If you really want to challenge, why don't we follow from here:



Posted by kcchongnz > Feb 9, 2015 09:44 AM | Report Abuse X

Posted by growthinvestor > Feb 9, 2015 12:04 AM | Report Abuse
bs talk kcchongnz!do not belittle investors on revenue and growth school because you are terrible in it.respect others and stop harping on this school is better than the rest.the best investos, warren buffett and charlie munger are growth investors that practice compounding!

1) Which part of my statement bs as alleged by you?

2)Which part of my comments did I "belittle investors on revenue and growth school"

3)I do have quite a number of growth stocks in my portfolio here:

http://klse.i3investor.com/blogs/kcchongnz/67547.jsp

Pintaras, Prestariang, SKP Resources, Jobstreet, NTPM, CBIP, Homeritz, Willow, Datasonic, Magni, Latitude, Scientex, Tasco. In fact more than half of them are growth stocks. But they were bought not at high valuation.

So which stock here that I am terrible at that as in your sentence here? "you are terrible in it." in your statement?

And which growth stock you have recommended which is terrible good?

4) Can you show your theoretical background to prove your growth story against my only statements mentioned in my above post? I can show you mine.

a) "Look for companies with high return on capital, in ROE and ROIC, and not chasing revenue and profit growth without ROE or ROIC higher than the cost of capitals."

b) "It was a double whammy as the shares were bought at a high valuation with high growth expectations which did not materialize."

5) Of course Buffett and Munger are successful investors; more of buying good business at reasonable prices. They do not "chase" growth stocks at high price. Do they?

6) You and I are not Buffett and Munger. We can never be.

Posted by MrTigerShark > 2015-02-09 17:18 | Report Abuse

WAKAKAKA!!!!!IN KCHONGNZ EYES EVERYONE IS GAMBLER EXCEPT HIMSELF!!!!!!

THAT WHY YOU ARE BEST FRIEND WITH CALVINTANENG THE HONEST GUY!!!!!I KNOW I KNOW I KNOW!!!!!YOU LIKE TO DWELL IN I3 FOR 10 HOUR EVRYDAY!!!!!I KNOW I KNOW ALREADY!!!!!

Posted by AyamTua > 2015-02-09 17:18 | Report Abuse

kcchongnz.. how are you?

Posted by chrischan > 2015-02-09 17:25 | Report Abuse

kikikikiki!!!!!kcchongnz duped by sing con to holland!!!!!kikikiki!!!cant blame him because sing con good in con!!!!kcchongnz too naive!!!!!sure kena con!!!!!kikikiki!!!!

Posted by kcchongnz > 2015-02-09 17:29 | Report Abuse

Posted by MrTigerShark > Feb 9, 2015 05:18 PM | Report Abuse

WAKAKAKA!!!!!IN KCHONGNZ EYES EVERYONE IS GAMBLER EXCEPT HIMSELF!!!!!!

THAT WHY YOU ARE BEST FRIEND WITH CALVINTANENG THE HONEST GUY!!!!!I KNOW I KNOW I KNOW!!!!!YOU LIKE TO DWELL IN I3 FOR 10 HOUR EVRYDAY!!!!!I KNOW I KNOW ALREADY!!!!!


Yes, I like to dwell in i3investor, sharing knowledge on finance and investment. Yes also I spend a lot of time sharing, mostly in i3investor. But when did I say everyone is a gambler?

By the way, why don't you like me, sharing some useful investment knowledge in i3? We can do together, for example we can deliberate our different views and knowledge here, rather talking about nonsense?

Posted by Intelligent Investor > 2015-02-09 17:48 | Report Abuse

What is the point if growthinvestor or kcchongnz win?

We shall learn the knowledge from the sharing, focus on long term wealth building and let's the compounding effect work for our portfolio.

I don't think Mr. Chong have to accept this challenge. No point.

Why not the challenger read the post carefuly http://klse.i3investor.com/blogs/kcchongnz/blidx.jsp and debate with the fact and finding?

Posted by NOBY > 2015-02-09 18:07 | Report Abuse

I think its more important to share strategy and reasoning in buying the share rather than just comparing who does better in 1 year... doing well in 1 year doesnt give u bragging rights... come out with your stock picks with sound reasoning and analysis then we can decide if you re really as good as you say you are....

Posted by CFTrader > 2015-02-09 18:47 | Report Abuse

kcchongnz, don't chap these kind of guy...
I am one of your honest reader.

Yes, I am a of FA, but still don't have an idea to gauge stock's valuation. But after your introduction of Discounted Cash Flow formula, ROIC formula, I learnt a lot of stuff. I apply it, and able to differentiate which is lemon and which is the gem...

Posted by tonytonychopper > 2015-02-09 20:11 | Report Abuse

Do not correct a fool or he will hate you.

Posted by Intelligent Investor > 2015-02-09 21:20 | Report Abuse

Mr. Chong, 不招人嫉是庸才...

Posted by kcchongnz > 2015-02-09 21:21 | Report Abuse

Posted by AyamTua > Feb 9, 2015 05:18 PM | Report Abuse
kcchongnz.. how are you?

AyamTua, I am good. Hope you are too.

Tan KW posted this excellent article in Chinese. I thought this excellent article should be shared with those who don't read Chinese, someone like you, milopanas and many others.

So I tried to translate it to English and add in a little salt as illustrative and for sharing purpose. Why they want to challenge me and hope to get me out form i3 ah?

Posted by bsngpg > 2015-02-09 22:17 | Report Abuse

kcchongnz: without you, i3 would not have as many viewers as today. You have my support. Ganbette!

Posted by ks55 > 2015-02-09 22:56 | Report Abuse

Just curious to find out who is this growthinvestor? Appear to be like a youngster (Mike Tyson) try to bulldoze all the way. How long has been in the market? Hope he will still be around in 5 years time!

Posted by kcchongnz > 2015-02-09 23:06 | Report Abuse

bsngpg, thanks for the support, and others too although I didn't express it. It will attract more non productive criticisms.

Personally you will notice that I like to debate and argue about facts. That is how knowledge is shared.

I would like to debate with growthinvestor on my comments why he called them bullshit, point by point, when I was just trying to translate an excellent article posted by Tan KW in Chinese. It is such a good article that it is a waste not to share with everyone.

I would like others to criticize what I wrote too for I know I also make plenty of mistakes. That is how we learn. Seriously I learned heaps through i3investor from writing, improving and learn from others constructive criticisms here. There are many knowledgeable people here, many of them are not loud.

But nobody likes other accusing him bullshit, or that I belittle anyone like growth investors, for I talk about things, exchanging knowledge, not about persons, and personal attack.

Posted by news > 2015-02-09 23:55 | Report Abuse

加油， kcchongnz. You always give good articles and generous in sharing. Thank you.

Posted by calvintaneng > 2015-02-10 01:03 | Report Abuse

Haha!

This growthinvestor is as bias, haughty and prejudiced like holland jey

Watch out for your hapseng - Help Sink or Helplessly Sinking

Posted by Frank Soweto > 2015-02-10 04:27 | Report Abuse

No BS - actually thanks to KC for translating n sharing coz I oso kannot read Chinese :) hard to do good now days - not many appreciate it somemore to add insult to injury kena challenge pulak :(

Posted by chrischan > 2015-02-10 09:37 | Report Abuse

calvintaneng Haha!

This growthinvestor is as bias, haughty and prejudiced like holland jey

Watch out for your hapseng - Help Sink or Helplessly Sinking
10/02/2015 01:03


kikikiki!!!!!sing con insulting others on 1 am again!!!!!hjey again!!!!kikikiki!!!!in psychology your behaviour tell your mind!!!!!!kikikiki!!!!!

Posted by chrischan > 2015-02-10 09:38 | Report Abuse

kikikiki!!!!so i trap u again and again and again!!!!!kikikiki!!!!!i also have interest on hjey now!!!!kikikiki!!!!

Posted by chrischan > 2015-02-10 09:44 | Report Abuse

kikikiki!!!!sing con want polish kcchongnz shoes by insulting growthinvestor!!!!!kikikiki!!!!sing con read but dont understand english!!!!!

Posted by Kian Leong Lim > 2015-02-10 19:44 | Report Abuse

本人也在股市一陣子,看到各位對股票的熱誠,深深感動!想跟各位分享一點想法:
前面4種建議不錯,但是第5建議"勿把雞蛋放在一個籃子",要降低風險的實質效率
可能無法達成.我認為我們應該要挑選比較"精進"的股票",寧驗錯過也不要勿濫.
(1)風險通常來至有兩個因素(1)我們不知道我們是平凡的人(2)我們生活在凡間是有約束的.
(2)這兩個約束來至(1)時間(2)環境.
(3)錯誤來至沒有(1)對"時間"規劃(2)對"環境"毫無主見.
(4)我們要避開這樣的公司!
(5)解鈴還須繫鈴人: (1)管理者能力高(2)經營"環境"不受威脅的公司.
下面是巴菲特最近的談話:Warren Buffett's Investing Idea
The goal is always to "Get more for your money than you pay"
(1)Do not listen a lot to what other people say (because nobody is a saint)
(2)Do not buy a stock by thinking that it will go up next week.
(3)For whatever reason that people may give you, you must understand what
you are buying (you must advoid going out and spending what will take you years to earn). Try to buy companies that you are familiar using their products or you are expert in that field. Pick easy targets!
(4)income/pay fair price---based your evaluation on the time (or now) by
paying reasonably based on what you are going to get from income based
on what you know "now".
(5)Look at the productive ability of the assets!
(6)If you always get what your money is worth, you will always do very well!

Well, the(5)and (6)is the same as (5)how can a person as an asset be productive (6)how can a person makes his life worth while. I let you figure out yourself, because you should know yourself and your life better than
anyone else. Happy Chinese New Year!
僅共參考!