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Long term investors are more successful

Koon Yew Yin 19 Feb 2021

As I have been investing in the stock market for more than 50 years, I should know that long term investors are more successful. 

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I have bought Supermax with all my money which has been dropping in the last 5 months and many people with good intention advised to sell it to buy Tech stocks. I did some research and I posted my article yesterday under the title Profit Growth & sustainability of Tech and Glove stocks comparison. 

In the article I explained the surge in demand for computer chips is short term because due to MCO more people have to work at home and have to buy new computers. As a result, there is a temporary surge in demand for computer chips bearing in mind that computers can last a long time. 

Unfortunately, many short-term investors sold their glove stocks to buy tech stocks aggressively as soon as they saw the profit surge for almost all tech stocks. These short-term investors are short-sighted. They cannot look beyond their noses.  

Fortunately, I started buying Supermax when the Covid 19 pandemic began about a year ago and my average price is still lower than the current price. I foresaw that the demand for glove would surge in the same way as it did during the H1H1 pandemic 11 years ago. 

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All glove stocks are still dropping for no reasons. It defies investment logic. However, I believe good profit growth prosect will prevail eventually. 

This following Bangkok news is reassuring. Sri Trang Glove Thailand is investing US$ 1.6 billion to triple its product by 2026.   

BANGKOK — Sri Trang Gloves Thailand posted a record net profit in 2020 as the COVID-19 pandemic led to a huge increase in demand for the company’s protective gear, persuading it to invest 48 billion baht ($1.6 billion) to triple its capacity by 2026.

Strong demand for medical-use gloves translated to a nearly twenty threefold expansion in net profit, to an all-time high of 14.4 billion baht. Sri Trang Gloves’ revenue increased 2.5 times to a record high of 30.4 billion baht.

The company, which in June debuted on The Stock Exchange of Thailand, has upwardly revised its previous plan to increase production. Under the new plan, the company will ramp up capacity to 50 billion gloves next year and to 100 billion in 2026. It currently has a 32 billion-glove capacity.

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