As you can see I posted “Hengyuan-why investors sell?”on 4 April to explain that due to the US President Donald Trump declared trade war with China, more than 900 listed companies’ shares in Malaysia dropped their prices. Those sellers were rushing to sell as if the prices would fall further the next day. They were like sheep, always follow the leader. They have the herd instinct. If you read my article carefully, you can see that I did not ask readers to sell.
On 5 April, I posted another article “Henguan- investors over-reacted” and I openly said that I was starting to buy back Hengyuan.
I might be partially responsible for the price to gain 72 sen yesterday. As soon as the market opens, I will continue to buy because I believe what I said in my article quote:
I cannot find another good respectable company share selling at such ridiculously low P/E. I strongly believe the company will start making increasing profit next year and 1 year is not too long to wait. I will buy and wait.
As I said, 3 months ago the price was Rm 18, if I buy it at around Rm 6.??, I can afford to wait 1,2 or even 3 years for it to recover back to Rm 18. Even if it takes 3 years, I will get about 300% in 3 years. What is wrong with about 100% return per year?
Many people have asked me how I can make so much money from the stock market. Let me try to explain how I can do it and I hope you can emulate my method.
Firstly, I started doing business more than 50 years ago and I was a co-founder of Mudajaya, Gamuda, and IJM corporation. While doing business, I have to overcome so many obstacles and challenges. In the stock market, business sense is far more important than financial and technical analysis. For example: currently a few of the property developers and building material manufacturers might be showing reasonable profit, but there are so many unsold properties everywhere and they will not be able to show increasing profit in the next few quarters.
Secondly, I have been investing in listed shares since my retirement as executive director of IJM Corporation Bhd about 30 years ago. During this period, I have made a lot of mistakes and I learned how to avoid repeating the same mistakes.
Thirdly, I must have a general understanding of financial and technical analysis. The most important point to know is that no share can go up or fall continuously for whatever reason and investors always overreact to good or bad news. I must be daring to buy at the pivoting point, just like I did in buying Hengyuan aggressively at Rm 6.15 per share yesterday. I might be partially responsible for it to gain 72 sen yesterday.
Fourthly, the most important quality is my ability to make snap decision. I must be very decisive and willing to take calculated risk, like an entrepreneur. In the stock market, the scenario and conditions change quite frequently and I must be able to make snap decision to buy or sell.
Fifthly, I must not be afraid of criticism, especially my favourite critic calvintaneng which I have extracted from i3investor forum quote
calvintaneng Posted by trulyinvest > Apr 5, 2018 11:23 PM | Report Abuse
What is this kyy? 4 april ask u to,sell. 5 april said value buy…,tis kind of 2 head snake ppl u oso can trust ka?
WHO IS HE?
HE IS THE ALIBABA WITH THE 40 THIEVES!
THE ROBINHOOD WITH HIS ROVING GANG
THE ROBBERKOON WITH PPP3, PATRON & OTHER CYBER THUGS WHO TRY TO CAPTURE SORCHAI TIME AFTER TIME!!
ROB ALL SORCHAI IN i3 FORUM AND HELP POOR STUDENDS?
I advise calvin to seriously examine his track record to see why he is still so poor. What is the use of making criticism? If he is really so smart, he should post some articles for readers to comment. Un till now, I have seen any articles written by him.
He wants to run me down so that he can look smarter than I. If he could emulate my method, he would not be so poor.