This blog post is response to "To buy or to sell Gadang" by Prominent investor. I was away for 3 weeks holiday in London and part of Europe enjoying my profit from stock market. Do remember, its never wrong to take comfortable profit if you can sense weakness in share price run. I feel amused on the article written by prominent investor which mentions that we need to buy his recommended shares in order to be rich. Below I share some of the stocks that I brought and I still be able to make good profit.
To be frank, if you do your own research and have some confidence, your share selection may outperform the shares recommended by him. Prominent investor like retailers especially to hold longer period so that the share price can go higher and he has better chance to sell it at higher price. He also indicate that he don't need me to buy his shares to push up his recommended stocks. I smiled when reading this statement. Am I the only one who should buy Gadang? Imagine if his blog able to get support from 1,000 readers and each of them buy 10 lots of Gadang (RM2,600 at the point prominent investor promoting Gadang), the volume already 1 million units. Buyer > seller then Higher price = richer. Simple right?
So, the intention is just to use his influence to encourage people to buy his shares. I feel proud that this prominent investor, spend his time to response to my blog. This means my blog does indeed affected his profitability or else he won't go so low by responding to so called little ah_boon. I don't really cares what he call me.
But do take note that money is not everything in the world. With lots of money and if don't know what to do with it especially at old age and still wants more is very sad. You have done good job by doing charity to help poor students but you also make people lose money in the stock market from your previous Xingquan, Focus Lumber, Canone & Geshen. Your new stock recommendation is just waiting for time for you to take profit. Everyone need to know that if someone make big money in stock market, it is at someone else expense. Stock market is just like a place to collect and pool the money together. It is just a matter of time, who will pull out first. Those who are smart and pull out ontime and able to understand movement by big funds will have a better chance of success. He also said that he has made a few millionaires but those are just a transfer of fund from poor become poorer and rich become richer. Regarding the Datoship offer, I think he won't settle with just a Datoship, he is greedy and ambitious. So he must be eyeing a better Federal award such as Tan Sri.
Ok, I have finished talking about my reasoning. I have received critizism as well such as talk so much but don't have portfolio to prove. With own research, attending seminars, watch Youtube videos on stocks technical analysis and read a lot of books, I am able to make money from the stock market as well. I am more of a short to medium term of trader and buy shares by looking at opportunity. I like to take comfortable profit and always look for other opportunities. Everyday there are many opportunities in the market. You just need a pair of eagle eye to spot them. If you brought Gadang as recommended by prominent investor: lets say you brought at RM2.60 on 10th Aug 2016 when prominent investor ask you to buy and hold it until today (13 Oct 2016), you will be 15% paper profit (RM3.00). The 15% on paper profit is not that much if compared to the stocks that I purchased below. Who said prominent investor always right? Always do your homework and sense for opportunity.
Below are shares which I brought which cover my full expenses to Europe for 3 weeks. I am not that greedy and patiece to wait for opportunity. I am just reasonable with intention of fulfilling my dreams while I am still young. I buy when good fundamental stocks at discount and when technical analysis showing oversold. Only do this on good profitable companies with unique products, monopoly, good track record or when there is crisis bad news. I do admit that my first priority is to protect the capital that I put in. The stocks below is still good to pick up if its on correction. I favours larger company with good trading volume and good track record.
F&N (Brought: RM19.80, Sold: RM26.50 - End March 2016 to early July 2016 - 3 months get 34%). Reason: market leader in milk based products and good track record. Darling of institution investors. Prominent investor used to said investing in consumer staple product company won't make you rich. But this is an almost certain stock that you can make money and won't risk to lose.
Airport (Brought: RM5.80, sold: RM6.98 - End July 2016 to End Sep 2016 - 2 months get 20% profit. Brought during Turkey airport bombing crisis. Its at 5 years all time low. Turkey airport is not the main profit contributor to airport. The main contributor is airport tax which at that time already rumoured to increase)
Ajinomoto (Brought: RM8.80, sold: RM14.50 - End March 2016 to early Aug 2016 - 4 months get 64% profit). Reason: good profit, good track record, everyone eat Ajinomoto and moving sideways with tight flat showing accumulation).
MYEG (Brought: RM1.80 in End July 2016. Still holding. Buy during bad news of potential lesser profit news. Its monopoly business, so it won't affect much and somemore achieving record quarter. Soon bonus issue. E-commerce business is the trend now).
Maxis (Brought:RM5.45, sold RM6.20. Mid May 2016 to Mid July 2016 - 2 months get 13% profit). Brought during bad news that many subscribers want to cancel their postpaid due to social media viral on different promotion offered to East Malaysia customers. The news won't cost them to lose too much profit in short term