We came across an interesting post on a Malaysian forum. Here are excerpts of the start and the end of the article. To read the full and very long article, click on the link at the bottom of this page.
Now, let me introduce myself. My name is Philip, and I have been investing in Bursa since the 90s. The reason I write this is so I can share how investing has worked for me, and how I hope it can help fellow readers on this forum.
|"If you ask a value investor if all his value plays and low PE work out? He will never say yes. But one thing I can guarantee you, if the company's revenue and earnings keep increasing year after year, and shareholder value is kept, the share price is guaranteed to increase. GUARANTEED."
I was enamoured by the idea that you can double your investment in 6 months with little work. So I started buying warrants, forex, penny stocks. All burned and turned to dust. There were always some winners, mixed in with losers. And as I chased the losers with even more money, I started losing even more.
Then I started reading about the concept of value investing. Wow, it was such a eye opening investment philosophy!
MY ADVICE FOR THE FUTURE
And I welcome anyone to come read this article 5-10 years from now. I may have sold the shares, but chances are, looking at the trend now, the long game still hasn't changed.
Today I own around 2m shares in QL Resources; after a share split I own around the same amount in TOP GLOVE. I also have a 500K share position in Public Bank, and have now built up recently a 600K share position in YINSON. Those are my only stocks. If you are a new investor to Bursa, my advice is not to buy anything that is beyond your circle of competence. There are a few thousand stocks in Bursa. But only a few will be gems.
You will never double your money in a month. Or if you do, you won't be able to keep it for a year.
Don't try to mess around with warrants if you don't know the mother well enough.
If you can't have a good understanding of the business prospects currently, read until you can have a good guess on how it will do 5-10 years from now.
Listen to the management, attend the AGM. Know who is managing your company. They matter.
Never buy 28 companies for your portfolio. It's something I did when I was young, and I regret it to this day.
Don't believe anyone who tells you to look at charts for double VV and swallow tail and signals to buy. One thing I have learned, those chartists always seem right, until they are wrong. If you ask them if their recommendations and charts work 100% of the time, they will never say yes.
If you ask a value investor if all his value plays and low PE work out? He will never say yes. But one thing I can guarantee you, if the company's revenue and earnings keep increasing year after year, and shareholder value is kept, the share price is guaranteed to increase. GUARANTEED.
Full article here.