5-year Investing Review

When I start to learn stocks investing, Bursa Malaysia (1818) is the first stock I get to know. Since it is our stock exchange, I have to view its website to get information of listed companies, hence I know that it is also one of the listed companies. Without any deep research, I already know that this stocks would rise at that moment. At that time, the stocks price was around RM 5.50++, currently the stocks price is around RM 8.50++, although the price appreciation is not much, but recent years it gives a lot of dividends. Why I know that this company will earn a lot of money? Due to its monopoly business model, it can earn a lot of money without competition, besides that there is no second stock exchange in Malaysia, thus it is a good business. If we really want to take it to compare with other players in this industry, then Hong Kong Stock Exchange (HKEX), Singapore Stock Exchange (SGX) are good comparisons, however those players located at different countries and they do not have direct competition, hence they are also monopoly players. You can check the stocks price of HKEX and SGX, their price pattern would quite similar to Bursa and they do give good dividend as well.

The first stock which I dedicated a lot of time to do research is TopGlove (7113), it is the second stocks I know as well. I was a totally newbie, I did not know how to do research, so I just figured out my own way to analyse. First of all, I tried to figure out what advantages did Malaysia have (if you really do not like Malaysia, I bet you may not able to come out any ideas). So what did Malaysia have? During that time, Malaysia was top 3 largest country which planted a lot of rubber trees, palm oil trees and rich of tin. Rubber is commodity, although it makes money, but it is small money, so I wished to manufacture rubber products to add value on the rubber, that was how I related it to rubber gloves business. After doing a lot of homework, I know that TopGlove (7113) is a world-class company since we Malaysia is the big player in this industry. During that time I started the research on it, the stocks price had already fallen for few months. I introduced it at RM 4.50++, it was the lowest price during that few years. After 1 year, it rose to RM 13.80++. Although I did not have enough savings to invest, but I was very happy that the first stocks I paid time to study on was a profit stocks.

This is the experience accumulated during last 5 years:
1.The first stock I did research on, TopGlove (7113), after 1 year, its share price from RM 4.50++, jumped to RM 13.80++, roughly 200% return. With the same method, I found another similar rubber manufacturing company, Karex (5247), a condom maker. Since Karex (5247) IPO, I have been following this stocks. Within two to three years, the founder of Karex (5247) has become top 50 richest man in Malaysia, so you can know how much you can earn from this stocks.

2. The second stocks which could make a lot profit, Airasia (5099, unfortunately government disallows short selling), I did not do any research on it, I just analyzed its business model, just like I analyzed Bursa, I knew that this company was quite dangerous as its debt was quite high, shares price should have to drop. From RM 2.80++, after roughly 1 year, it dropped to RM 0.80++. Her sister company, Airasia X (5238) shares price dropped as well, from RM 0.80++ to RM 0.10++. When Airasia (5099) share price drop until the lowest, RM 0.80++, I knew that it would not drop until nothing or delisted since as Malaysian, I really feel proud of this company. However, I did not buy in as this company did not suit my investing rules. If short selling is allowed, I do not care how much it rallied because I might already profit from the previous falling.

3. USD, Ringgit Malaysia already had depreciated for some times already. I thought it can depreciate for 1 more time, so I recommended to change USD. During the time I noticed depreciation of RM, the rate was RM 3.70/ USD, when my friend started to seek advice from me, the rate already depreciate to RM 3.90/ USD. He would like to buy gold, but I recommended him to change USD, after 6 months,  it depreciated to RM 4.50/ USD. I still remember when it was May, I told my friends, if I did not misunderstand the tips given by Fed, the first rate hike would be December. So I came out strategy to short sell market before Fed meeting and after the meeting, long the market. Due to previous Airasia experience (government disallows short selling), I started to figure out a way to short sell market, eventually I learned to short sell the market by short selling the Futures. However, Futures broker thought that I was too young, so I was denied from opening a account. Since then, I can only do paper trading to prove my idea. Guess what, the whole year market movement was similar to my plan, and eventually Fed rose the interest rate in December.

4. After USD, then Gold. I still remember that Gold price was still falling, I already told my friends that we could prepare to buy some Gold. The reason why I would recommend gold is because I have already known the rate hike in December, after the first interest rate rise, psychology of people definitely will turn 180 degree different, so we have to ambush earlier before other people realize. By the time I recommended the Gold, the price was USD 1050++, right now after 1 year it has surged to USD 1280++. Similar to TopGlove experience, the moment I introduced the Gold, it was at its recent year lowest. And the difference is, I became more confident in my research with the TopGlove experience.

(Resource; 《Wolf of Wall Street》)
During I recommended to my friends and relatives, my impression was like this guy, very confident. Since the homework is done by me, for sure they do no have the confidence to buy. I feel quite excited, when I told them my research, the famous investing master, George Soros bought in Gold in the same moment with me!!! Previously when the Gold price was flying high, he was the one who short sold the gold. Now he has come back bought in a lot of golds and silvers. After that, I had bought a book, I suddenly knew a lot of things, if the gold price is going to increase, so do the commodity, and I recommended commodity as well. After 1 year, commodity price flew in the sky!!!
You see, my article is not too long, that's why we need to learn investing since young, the incidents above needs around 1 year to happen. Being young is the greatest capital we have!!!
When I'm writing this article, I found my potential. Whenever I find a good opportunity, I'm faster than almost 90% people, roughly 1 year earlier, so I usually buy at a very cheap price and short sell at a very high price. However it is agony because you are doing something different than others. It is very lonely!
No wonder that is a saying, those who can earn from the market is not a normal people, is abnormal people.
Of course I do have failure, but every failure makes me stronger. That's why a lot professional investors always said the right moment to learn invest is right now.
One is never too old to learn!