In addition, they must control their emotion to overcome their fear in buying shares or their greed in selling shares. In other words, they must improve their psychological aspect of investment.
Over the years, I have helped hundreds of people including about 300 scholarships I have given to needy students to complete their university degrees.
I wish to take this opportunity to post the following email from Aaron Hee, an accountant with CIMB who attended my investment talk in K.L. I believe this publication will benefit all readers, quote
“Mr Koon,
2015 has been a good year for me. I made some money, my health improved and most importantly it was a generally a happy year for me.
It’s a pivotal year for me in terms of learning as I have reflected on my investment approach. Based on your experience, you have identified the core driver of stock appreciation in the context of the Malaysian market
After much reflection and observation, I have come to realise that your golden rules in selecting stocks is far more superior to the many methods that have been practised by many others. As you have said, one should reflect on one’s own track record and if possible, other track record that is accessible as well. Its’s clear that your method has outperformed many other funds and methods significantly. I have begun to adopt your golden rules in my investment approach now and seeing some early results in the stocks that are not amongst your holdings (ie. I have been buying Magni based on your golden rule and after my analysis. They recently announced their quarterly which was really good and has appreciated by at least 20% over a period of 2 months since I started buying in early November). I sincerely appreciate your generosity and guidance in sharing your methods with me. I hope to be a super investor one day. I have learnt the methods. The hardest part now would be mastering the psychology of a super investor.
When I established contact with you and gradually grew the relationship, I never wanted to pursue any financial gains from you. It’s myopic mentality and gains of such nature is only temporary, but what I wanted to gain is to learn from your experience and insights which I could capitlilise on my own in the future. As the saying goes - don’t give the man a fish, teach him to fish instead!
I hope for 2016 to be another good year for both financial and personal growth.
Mr Koon, thanks again for all that you have shared withme since 2014.
I hereby wish you a great 2016 ahead and also the best of health and happiness!
Aaron” unquote
Now Aaron has confirmed that my golden rule for share selection is better than all the methods he knows. I have been using this method to buy Latitude, VS and Lii Hen which have gone up a few hundred per cent per year.
I would like to repeat my share selection golden rule for those who have not read it before. Before you buy any share, you must be sure that the company can make more profit this year than last year by looking at the profit growth in the last few quarters. After you have bought, you can expect the share price to go up when the company announces an increased profit in the next quarter.
When the share prices go up, the value of your collateral goes up and you can borrow more money to buy more shares to make more profit.
I must warn you that using margin finance to invest is not meant for novice investors.
I am not asking you to buy any of the shares I mentioned above. But if you decide to buy, you are doing at your own risk.
官有缘 - Bye, bye 2015 and welcome 2016 – a reflection - Koon Yew Yin
http://klse.i3investor.com/blogs/koonyewyinblog/88993.jsp
