Posted by Bruce88 > 2015-10-11 21:55 | Report Abuse

Thanks for sharing.

Posted by calvintaneng > 2015-10-11 21:59 | Report Abuse

Yes, Peter Lynch did break Warren's record. Now retired. Others who did for shorter years were Walter Schloss & John Neff. So did John Templeton. But for longer stretch Warren is still alive and in the game.

As for being conrarian I think VS, Lihen & Latitude are now fully priced in. I don't think they will double in price again from here as the US Dollar is facing headwinds. China is now dumping US Treasuries. The US Dollar will be the last to fall.

Last time I called for a STRONG BUY FOR ALL FURNITURE COUNTERS INCLUDING POHUAT (POWER HUAT). Now I think the Investment Theme will shift to TPP Counters.

See my write up on KPSCB. It has the twin Booster from Spore clampdown on Indonesia paper exports & TPP for Malaysian Wood products.

As for margin or borrowing to buy shares. It is like a double edged sword. It cuts both ways. While some do make money many others have gone bankrupt. So it cannot be applied universally.

As to being a contrarian I fully agree with you that NOW IS THE BEST OF TIME TO BUY RINGGIT AND TO BUY MALAYSIAN ASSETS.

When foreign funds are fearful we should now be greedy.

To truly follow Warren Buffet all should read Warren's Sifu Ben Graham's Book called THE INTELLIGENT INVESTOR

Posted by paperplane2 > 2015-10-11 22:07 | Report Abuse

Nope, buy kesm, lfecorp, bjcorp, GSB, now!

Posted by goreng_kaki > 2015-10-11 22:27 | Report Abuse

Vs not computer chip manufacturer la....walao ei.....

Posted by Icon8888 > 2015-10-11 22:30 | Report Abuse

I think you are giving yourself too much credit

This year is relatively easy because there is a major trend - the weak currency, which benefits the exporters. Not only you, many people make tonnes of money too, including me

Next year will not be the same. All exporters had gone up. What to buy ? What will be the major theme ? Stock picking will be tough next year. I am already scratching my head and have no clue at all

Warren Buffet's success is built on its ability to consistently chalk up more than 22% return.

You are hardly comparable to Warren Buffet, let alone beating him. Without this year's export theme and guidance from OTB, your stockpicks were Mudajaya, Rimbunan Sawit, Jayatiasa, Felda, etc, which all went to Holland.

Come back again next year to stake your claim, only if you are able to repeat the same performance

In my opinion, it is too early to boast about beating Warren Buffet

Posted by paperplane2 > 2015-10-11 22:39 | Report Abuse

Walao, see who talking? A failure calling another failure failure???

Posted by Icon8888 > 2015-10-11 22:43 | Report Abuse

I am criticizing Uncle for boasting, not for his stock performance

For me, poor performance in stock market does not deserves criticism

Boasting deserves criticisms (that includes you)

Posted by Sunkist118 > 2015-10-11 22:46 | Report Abuse

Don't fight hor. We fight haze, we fight politics, we fight in politics, we fight we fight we fight.......how to win anything hor?

Posted by tony89 > 2015-10-12 04:45 | Report Abuse

HHHAA. love you guys!!

Posted by paperplane2 > 2015-10-12 07:26 | Report Abuse

Ya? For me poor result deserve critise, you get it wrong all the time. Ppl like to boost just let it be. If they indeed can return 100% return a year they can boost whatever they like, not like you, fail all time yet wanna boost icon8888.

Posted by paperplane2 > 2015-10-12 07:29 | Report Abuse

Vs, the largest chip manufacturer! Great!

Posted by cherry88 > 2015-10-12 10:02 | Report Abuse

I am not criticizing any of you include Mr Koon and Icon8888. All have their points. Mr Koon is trying to disclose his stock picking method while Icon8888 is trying to explore the next boosting industry. And I believe many of us would like to know the later than Mr Koon's idea. Without explain further here, my personal view will be in logistics and oil&gas industry are worth to look at next year....

Posted by Tom > 2015-10-12 10:10 | Report Abuse

kyy: rule number 6 for you hor, kcchong hor
kcc: thank you boss kyy~ i love you boss
kyy: you hor are welcome hor~

Posted by enning22 > 2015-10-12 11:14 | Report Abuse

you simply cannot perform better than Warren Buffet,because malaysian market is comparatively much smaller,moreover , it is not a mature free market,on and off , your experienced NEP type of hostile policies, which jeopardized good performing companies , pushing them toward economical or organizational disasters.

Posted by speakup > 2015-10-12 11:24 | Report Abuse

"I do not buy GLC, plantation, oil and gas, banks, contracting and real estate companies and small companies" -- Mr Koon

JTiasa not plantation? Coastal not O&G? Mudajaya not contractor?

Posted by paperplane2 > 2015-10-12 11:30 | Report Abuse

koon can move the market, either buying up or selling down. So is important to follow him and OTB.

Posted by buffet88 > 2015-10-12 11:40 | Report Abuse

Thanks for sharing Mr Koon. Your points are indeed valid and useful. Those who had followed your advice on VS and Liihen would have made a lot money. Do share with us if you managed to identify another jewel.

Posted by Jester > 2015-10-12 12:11 | Report Abuse

Without disrespecting Mr Koon, I must state that Icon8888 do have very valid points. Indeed this year it is quite clear on the trend. And I understand Mr Koon said he is not here to boast but if you read the article clearly, it stated otherwise.

And I think Mr Koon needs to give some credit to the people who introduced him the export theme stocks as Icon8888 is right by saying Mr Koon's pick would be Mudajaya, Rimbunan Sawit, Jayatiasa, Felda, etc. I do read Mr Koons posts and can confirm the former stocks were also 'recommended' by him.

For those new to i3. Make some research first :)

Posted by invest1188 > 2015-10-12 13:24 | Report Abuse

Mr koon, my advice is do not be too excited with vs industry, it does not have niche market, semicon is like comodity, other companies will make more and price will erode, last 3 yrs you were boasting on oil palm saying this like it will grow positively but now olso tempang, again consider to sell vs and move to other sector

Posted by chonghai > 2015-10-12 13:31 | Report Abuse

Mr Koon, just because you did well this year does not mean that you are as good as Warren Buffet. Some arguments from me :

3). Just because you cannot appreciate quality company does not mean that there is none in Malaysia. When you capital gets big there is little choice but to invest in good company for longer term.

6). Statistics ? What Statistics ? If you have more respect for detailness success rate will definitely be higher.

I have to salute your business acumen, your decision making capability and your commitment to charity. However, please try to avoid belittling others. This is a nice article.

Mr Koon, please keep sharing, perhaps with less boasting in future.

Posted by skyz > 2015-10-12 16:13 | Report Abuse

When do I buy? He asked...
When do I sell? He asked...
He will buy first before you get to buy, and he will sell first before you get to sell. Best if he will sell when you wanna jump in and buy...
"Noble intentions" summarized

Posted by fung9815 > 2015-10-12 16:36 | Report Abuse

Mr Koon, I've been reading your blog for awhile with an objective mind. I have mixed conclusions with your views, but mostly I kept to myself.

However, I have few arguments on your post today:
1) It is contradictory to say "we should be a contrarian investor" and "we should buy when a company announced a sudden jump in profit". As Mr Koon rightly pointed out that "I have not seen any share drops in price when it announces increased profit", it means we can't buy any cheap share AFTER it announces positive jump in profit. I understand that there are times when we can buy companies with increasing profit at knockdown prices, but I don't see them often.
2) WB achieved 19.4% p.a. over 50 years while most people can't even get 15% p.a. in 10 years, because most of us don't know how to protect our capital in downturn. S&P 500 has had 11 down years in the past 50 years, while WB only has 2 down years in book value. I'm merely speculating but I like to think that Mr Koon has more down years then WB.
3) For Mr Koon to say "I also do not buy undervalued stocks eg Jaya Tiasa..." is very misleading, especially to the new readers. Anyway I don't want to dwell on the subject.
4) I doubt the strategy of "buy when profit increase, sell when profit decrease" can outperform WB's returns. "Buy before profit increase, sell before profit decrease" sounds more likely, but it is super difficult to execute.

Nonetheless, I believe Mr Koon has been making great returns from the stock market in the past 32 years by being a contrarian investor, but, again my own speculation, that Mr Koon didn't do as great as WB (WB achieved 23.8% return p.a. in 1996, the 32nd years since he took over Berkshire).

Posted by mcchuah > 2015-10-12 17:18 | Report Abuse

Uncle Koon, Do not be despair with those negative comments. I have full support for you. For a raw and new investor like me, I have earned $$$$$ by following your advice in just 2 months. Thank you and I shall follow you at all times.

Posted by Jester > 2015-10-12 17:27 | Report Abuse

@mcchuah, nice to hear that you have earned $$$ by following Mr Koon in the last two months. But your sentence "I will follow you at all times" is very dangerous. If you are a new investor, be very wary of 'following'others. Learn and do our homework first, if our homework yield the same 'thought' as the person you want to follow, then no problem.

The key thing here is being 'objective'. I have also followed closely articles not only from Mr Koon but also a lot other investors. But I do not necessarily agree/follow them.

Just 2 cents from a novice investor. I might be wrong

Posted by chinhoe > 2015-10-12 20:46 | Report Abuse

To be fair to Uncle Koon, we cannot compare KLCI and DJI... In 1993-94 where KLCI was at his highest around 1320, DJI was hovering around 2800-3200; more than 20 yrs later, DJI is now at 17000 (increase of more than 550%) whereas KLCI is languishing at 1700(increase of mere 28%) even after taking into account the
manipulation of most of index-linked counters...I could say if Warren Buffet were to invest in Malaysia, its no guarantee that he would make it here given the unlevel playing ground, the meddling of state-owned funds (EPF, Tabung Haji, MARA, Khazanah ect) where the assimilation of news, deals etc are privy to them..It's no small feat for Uncle Koon to make so much money amidst the hostile investing environment..IF Uncle Koon were born and investing in US market, I'm sure he would perform very much better...

Posted by susheel > 2015-10-12 21:16 | Report Abuse

Thanks Uncle Koon!

Posted by chinhoe > 2015-10-12 21:38 | Report Abuse

Actually Uncle Koon is not boasting, bragging or exaggerating.. He takes pride for what he has accomplished and sharing with us his success formula..we shld be grateful

Posted by chinhoe > 2015-10-12 22:19 | Report Abuse

Everyday we are bombarded with different calls frm analysts, remisiers, news portals, commentaries, tv newspapers etc...buy O&G counters, buy Technology stocks, buy construction stocks, buy furniture and glove stocks (export), buy property counters, buy banking stocks, airline stocks,utility stocks, food counters, buy this buy that, buy the entire KLSE... etc etc....They all don't matter, what matters most is WE OURSELVES call the shots..! If UNcle Koon chose to buy furniture stocks and VS among the many stocks recommended and making so much money, don't you think it speaks volumes and substance of him..!! On hindsight we think it's easy, but during that particular period when he made the move, it is more than sheer luck or accidental coincidence that prompted him to..!! He's got the knack, bro...

Posted by chinhoe > 2015-10-12 23:08 | Report Abuse

Beauty is in the eyes of the beholder. There's no gauge to say which is right or wrong on the 15 formulas above. As Warren Buffet always says 'don't put all your eggs in one basket', well , he can afford to say this as he has tens to hundreds of billions to spend; but for a young Turk say with RM10000, can he afford to divide this into unit trust, FD and several counters ? Well not everything he says suits us...AS for Uncle Koon's 15 rules, I gladly say that I concur with him on 13 out of 15..(exception:No.7 & No.15)

Posted by SuperMan 99 > 2015-10-12 23:35 | Report Abuse

I have been studying & investing in KLSE on & off during my past 20 years, luckily enough to make some profits overall.

What makes me agreed most is No.2, not able to invest long time, say 10-15 years due to small economy of Malaysia. I think most is 3 years to 5 years in good stocks with sound management team.

Others are generally good to follow with own understanding & strategies.

You may not agree with it but it is wisdom words from a proven investor, it is worth to digest & make it your own.

Posted by SuperMan 99 > 2015-10-12 23:40 | Report Abuse

Invest with objective & strategies, discipline yourself to follow strictly with your strategies. That's my words. Strategies? Take a look at above.

Posted by chinhoe > 2015-10-12 23:49 | Report Abuse

One advice: Before you think how much you want to make, think how much you are prepared to cut loss

Posted by auntynewbie > 2015-10-13 09:31 | Report Abuse

Kudos to chinhoe, SuperMan and jester. Forum like this should be sharing strategies, wisdom, advice and experience. It is really helpful for a newbie like me. Good job!

Posted by rmkfac100812 > 2015-10-13 10:13 | Report Abuse

"I have not seen any share drops in price when it announces increased profit."
This is x true..

Posted by geary > 2015-10-27 17:08 | Report Abuse

Uncle Koon practices the Selective Contrarian Investment Strategy. What is a contrarian investor? It's buy low when there are correction and recession. Well which company to buy? U got to select the good company which has a strong growth prospect in term of earnings. What is strong growth? By the way any company with strong upward trends EPS. every year n every quarter, is a good candidate. With this positive EPS, similarly the ROE, ROTC will also increase. Any company with average ROE n ROTC of above 12% for at least 3 to 5 years is consider above average. U don't find many of these companies in Bursa. Buy only when the PE is single digit or low teen. Sell when the PE is above 30 or more. Many investors fall in love with the companies they invested, so they don't know when to sell, become too emotional, like Mr Market! Sell when the business environment changes, the earnings drop or negative, management dishonesty, business model changes and foolish management. Sell when the bubbles are going to pop, especially when most of the companies u want to buy are selling at 30 to 40 times PE.!!!

Posted by geary > 2015-10-31 00:59 | Report Abuse

The stock market and the economy always dance to the Fed's tune. Higher interest rates make businesses' earnings worth less to an investor and will drive stock prices down. Lower interest rates make businesses' earnings worth more to an investor and will drive stock prices up. Most probably Fed will raise interest rates in the Dec 15 n 16 meeting this year.

Posted by geary > 2015-10-31 11:48 | Report Abuse

The 'ABC' of corporate cancers are Arrogance, Bureaucracy and Complacency. Character is crucial!