fankim

I feed good today because i found Fong SiLing name in 2011 annual report.

It proves that i could find a good company by myself (using Fong's formula)

2012-06-14 00:00

ysh888

share price will go up every time after he mentioned it in Nanyang Newspaper

2012-06-20 20:57

tptan45

Excuse my ignorance, but I have been wondering....who is Fong Siling?

2012-06-20 21:08

chieng8182

FOng Siling is great long term investor among chinese.

2012-06-21 08:32

chieng8182

Is there any faster way to find FA of company such as EPS, PER, DY, NTA, ROE, sales, profit for prevoius 5 years? It takes time to look the annual report 1 by 1 and do calculation. I hear got FA program which allow us to review previous few years FA. Anyone know about this?

2012-06-21 08:36

cheongmichael

bro ysh888,wait till pull back time then to go in.

2012-06-21 08:41

cheongmichael

chieng8182,join in Jupiter u can able to get it,OR get the free download from Algoboxtool.com,try.....

2012-06-21 08:46

chieng8182

TQ very much, michael. I will try. WIsh u all the best.

2012-06-21 08:59

jacklew

hi one question. I found out that Fong SiLing written an article recently about MSC. Yet, he is holding some shares in MSC too. I thought an author is not supposed to have any interest on the company he is commenting about....any idea??

2012-06-21 09:16

tptan45

Excuse me again, but how do we know he is great?
His portfolio is not doing great.

2012-06-21 09:21

jacklew

personally, i feel that it is the people's "impression" that make him great....

2012-06-21 09:35

chieng8182

i think the portfolio is not so accuratly counted. however, his investment is holding for long term, as long as company performance goes well. his portfolio value is more than rm20 million if not mistaken. anyway, we can prefer his skill but not absouletly follow him.

2012-06-21 11:42

fankim

HI, here are the formulas and live examples.
1. http://www.nanyang.com/node/443704?tid=808
2. http://www.nanyang.com/node/451948?tid=808
3. http://www.nanyang.com/node/453545?tid=808

2012-06-24 13:21

fankim

You can find his portfolio here
http://klse.i3investor.com/servlets/pfs/6736.jsp

Not 100% but close to it. You can his name in these company annual reports.

2012-06-24 13:24

chieng8182

hi brothers, got any software can filter the PE ratio among 1000+ listed companies in bursa? if count one by one, take much time.

2012-06-29 23:07

fankim

Hi, in fact, try his method - http://www.nanyang.com/node/443704?tid=808.

I didn't use any software, i went to bursa malaysia website. I copied and pasted the price list for a day into microsoft excel file. Filter it by daily volume around 20 to 30K. After this, it cut down to around 100 companies.

For each company, i went to thestar.com and checked the company renevue, profit and EPS for the last 4 qtrs. This is good to practice. You will discover some of the company actually making profit from qtr to qtr.

Ignore those company that having negative profit or EPS. Sometime, you will realize certain "so call" good company is making lost. Then, you are alerted.

After above, you may cut down to 20 to 30 companies. Then, go back to bursa website. Check their annual report. See if they are making profit from the past 5 years.

Another cut from here. Lastly, you have to spend more time to understand the company lar ...

Practice, practice, happy practice ... we can learn together ...

2012-06-30 01:05

Fat Cat Tim Buddy

i find out that reading the annual report book is waste of time, its the info inside the book that we really need , and i can find out all the info of all the listed companies in klsetracker.com

cold eye investing method is sound, but too slow, and it need heavy capital.. not something little small fish can afford it.

long term on good companies? it really hard to achieve that, unless i own minimum 5-10% of the company, and im one of the director, if not, what the point holding it?

PE below 10 ,ROE 15% , debt to equity less than 1 , etc etc i follow all the indicator , the stock just doesnt up!! it really frustrating.

and company like silver, harvest , smartag etc etc, all the balance sheet, profit and losses , all in red, but the stock still going up, it make me feel double frustrating.

hell, i might just study KLCI index companies, and buy index future contract or trade in commodities , trading in stock market is way too slow and too time consuming.

2012-06-30 03:24

fankim

Hi, let's make this discussion as open as possible. i think we don't mind whatever method as long as we all making money. :)

Let's address the small fish first. (Please note that below is my opinion and it is NOT a recommendation)
1. Every month i save 10% of your salary. E.g.: 30% of RM3000 = RM300
2. After 10 months, i have a month salary savings RM3000 (RM300 x 10 months)
3. Another 10 months, i have RM6000.
(No choice. That's my income)

With RM6000, i can choose from the following:
A. Buy stock
B. FD
C. Simply keep in bank
D. Invest by borrowing money (Use RM 6000 to pay the bank interest)

I was a bit aggressive, i took A. and D.

2012-06-30 11:50

fankim

For A. Buy stock

I am agreed with Fat Cat, buying top 20 stocks in KLCI is safe , earn dividend, supported by EPF and large financial institution and they are growing companies as well.

My experience told me, buy top 20, not 21 to 30 as these companies may out from the KLCI.

2012-06-30 11:58

fankim

Another sharing from my friends.

Every month, he buy China Index via "CIMB FTSE CHINA 25" after salary is in his bank account.

He is accumulating this stock as much as possible without spending time to study all these.

China CI was 3000 point before crisis. Now is around 2450 points. Imaging when China CI restore to 3000 points or higher.

The only risk to him is China go bankrupt like Greece.

My friend start accumulating since CIMB launch this stock.

2012-06-30 12:05

Fat Cat Tim Buddy

fankim.. i think you misunderstand me, i was referring index future contract, not index fund.

and...

1. Every month i save 10% of your salary. E.g.: 30% of RM3000 = RM300

30% of RM3000 is = RM 900

=D

2012-06-30 12:23

fankim

Fat Cat, you are right. Thanks. 10% of RM3000 should be RM 300.

BTW, what is index future contract?

The problem with me is my knowledge limits to something easy to understand and apply.

Appreciate if you can tell us how index future contract works. I learn something new then.

2012-06-30 12:38

Fat Cat Tim Buddy

http://en.wikipedia.org/wiki/Futures_contract#Who_trades_futures.3F

futures contract involve two parties , one is hedger , one is speculator.

it is like call warrant,a zero sum game. and very risky.

2012-06-30 13:14

Ram Cheong

fankin , u very brave n aggresive to choose ( D ) invest by borrowing money from bank n pay use your rm 60000 to pay interest . ........... better think twice n trice , what if ur investment goes wrong . .......... nothing can be 100% sure in market , that is too risky .

2012-06-30 14:22

fankim

Hi, yes. RISK is the key and I always remind myself also. Then, the investment must be careful. I share my experience / opinion.
I borrowed 10K and bought Maxis @ rm 5.30. Interest rate was around 4.5 % pa. So, a year is about rm450. I keep two principles in mind:
1. If maxis price goes further down, will I buy more. If yes, it means I buy Maxis @ cheap price.
2. I didn't really pay rm450 bcoz Maxis gave rm400 dividend. So, I borrow 10K at rm50 a year.
3. For a small fish like me, we can't profit from dividend but only when the share price go higher.
4. Worst case is I continue to hold this blue chip with a backup fund of rm6000.
5. Blue chip goes bankrupt chance is less than 50%. It means my chance to gain from blue chip is more than 50%.
6. I can focus my job without worrying Maxis.

Above can only apply to really really good company. It's safe. The only thing is you must be patient. But chances to lose is very low.

What do you thing? :)

2012-06-30 15:09

casual_investor

Yes. Good methods.

Well, may I suggest some alternatives and my thoughts after reading your metohds:

1. Buy in small lots of those blue chip counters month/quarterly. rather than borrowing with interest. In this way you enjoy both dividend and captial appreciation.

2. If you have moeny to buy but share price too high, wait until it retrace. Cos when a stock is in uptrend there will be retracements then buy @ the support.

2012-06-30 15:57

fankim

Yes. Agreed. Even Fong SiLing also does not encourage people borrow money to buy share.

But he also encourage young people to take risk. I interpreted as when you have a stable income, a small investment amount and you are young. You could take small risks.

I did a comparison study as below.
Assuming i have 10K savings for investment.

case 1: Just take my above Maxis case, i borrow 10K for two years. Total interest that i need to pay is about rm 100 per year (rm 50 x 2 years). Easily can settle.

case 2: I use my 10K savings to invest Maxis. After two years, i should get dividend with RM 1600 (as 2000 shares x rm800 dividend x 2 years) - Maxis gave about rm 400 each year.

If we could combine case 1 & case 2, we gain RM 1500 dividend (Use RM 100 to pay interest) and stock appreciation.

Most KLCI companies are doing this practice.

If the stock price depreciate, the RM 1500 can cover few years interest pays. We could choose to cut lost or wait for the stock to appreciate or add more money.

In fact, we shouldn't worry about it as long as the company profit keeps increase. We should worry when the company making lost. I believe CEO of the company is more worrier than us.

In summary, it depends on how much risk we can take and whether we want to do "Big Business" or "Small Business" and there is a way to do it.

2012-06-30 23:20

fankim

I found below story in recent Fong SiLing's book (page 128).

I try my best to put that in English.

Assuming a company has 100K and making profit about 20%.
No borrowing - the company can make 20K a year.

Borrow from Bank it pays 10% interest for that 100K.
With 200K business, the company can make 30K a year (40K profit - 10K interest)

I think we can take a risk to try this when there is a real good company.

Hope this helps our discussion.

2012-06-30 23:32

Steven Lee

Investment isn't how many entry/exit you had made, it's all about how strong holding power you're! No matter "good counter" or "bad counter" , I won't encourage people to borrow money for investment, you had lose you first step - holding power.

But of course, I prefer"good counter" based on own study after all.

2012-06-30 23:50

Steven Lee

Btw, you can try"KLSE stock filter"to sort out basic info first (p/e, eps...) before go any further.

Alternatively, if you're using smartphone, you may try out this app "KLSE stock screener"

2012-06-30 23:55

casual_investor

Back to basic accumulation & holding power and purchase the share @ the right price.

2012-07-01 00:35

fankim

Yes. Surely, good counter is better.

In fact, i am not really encourage people to borrow money for investment but appropriate borrowing is good for those people who knows what they are doing.

BTW, Fong SiLing has raised a situation that i think it is good to discuss as well.

Let's for example, EAH counter. Based on its past annual reports. In term of PE, EPS, revenue, profit, and bonus. All are increasing slowly. But somehow, the share price is dropping. It goes different direction as its company performance direction.

- what's wrong with the counter?
- what's the right price then?
- worth to invest if its price goes down 50% further?

Any thoughts? As i find it is a good opportunity for small investor.

Fong used to mention below two points:
- Most of the index stocks, their intrinsic value is almost reflected in their current share price already
- Earnings from these index stocks always have the limits

2012-07-01 01:37

James Chieng

bro steven lee, when to get the KLSE stock filter?

2012-07-01 10:17

fankim

Ya. Can't find "KLSE stock" in istore.

2012-07-01 15:05

James Chieng

http://klse.neobie.net/quote.php

but no comparison of few years ratio

2012-07-01 20:00

fankim

Many thanks.

I realize that the calculation simply takes the last four qtr result.
It never consider re-calculation after stock exercise like split, bonus, etc.

But it is a good tool to do first step filtering.

2012-07-01 23:13

James Chieng

chart nexus can be used to count return? let say i invest rm10k in Maybank in jan 2001. After that, no more additional investment. all the dividend received not used to reinvest. not buy right issue.

2012-07-01 23:45