What are my stock tips? kcchongnz

Here are some questions by a purchaser of my book, “The complete guide to value investing that works!” which I would like to share with you.
 [Good morning Mr Chong,
I have read it reaching to the sections on financial statement analysis and interpretation, and valuations of your book. They prevented me further from accumulating those counters that do not meet the minimum criterion.
I have a few questions:

1. It would be nice if you have any articles touching on what newbie should or shouldn't do in this depressing state of stock market and providing any tips or reference for us to read.
2. I am ready for this round of stock crash (even to the extent of having opened a share margin account with RHB Investment Bank besides having normal "trading" account and would definitely go in and take a few counters and just wait for them to appreciate over time.
3. Would really be good if someone could point us what counters to watch out for, well this is a wish list.

Thanks, and best regards,
Mike]

I have given my opinion for question 1 in the link below,
https://klse.i3investor.com/blogs/kcchongnz/2020-03-27-story-h1485671301-What_to_do_in_this_turbulent_stock_market_kcchongnz_Part_1.jsp
In general, here were my opinions,

1. no one is certain how the covid-19 pandemic will finally play out. Have cash reserve which will last you for a long time.
2. No need to get panic and run for the exit if you are in (1) above and if you have invested in good businesses.
3. detach yourself from this short term “external” loss in this bear market and reduce stress.
4. the stock market has gone through numerous crisis, it is always in the long-term uptrend.
5. For those who has a lot of cash and thinly invested, it may be a good time to start nibbling; buy some good companies slowly. But don’t forget point no. 1 above.

As for question 2 above on the use of share margin finance, I have given my opinion below,
https://klse.i3investor.com/blogs/kcchongnz/2020-03-28-story-h1485697246-Double_Down_What_to_do_in_a_turbulent_stock_market_Part_2_kcchongnz.jsp
Basically, my comments are as below,

1. First one must have a clear mind the purpose of investing; is it
   1. To get rich quick, but subject to high risk
   2. to build long-term wealth steadily, safely but surely
2. The future is unpredictable, the pandemic can get worse (or better). Low stock price can go lower, much lower.
3. survival is the only road to riches.

Now, I will get to question (3) above; what are my stock tips?

My experience sharing in i3investor
“A wise man adapts himself to circumstances, as water shapes itself to the vessel that contains it.” -Chinese Proverb
I started sharing in i3investor since the year 2012, and that was about 8 years ago. It was from the knowledge I have acquired through some of the super investors in US and a couple from locally. I started with writing comments and sharing some investing strategies such as the Magic Formula, Cold Eye 5 yardsticks, high dividend yield investing strategy, as well as asset-based investing. Many people in i3investors asked me if their stocks met those criteria, and I have taken the time and trouble to find out through the financial statements and answered them accordingly based on quantitative analysis. I still remembered many of those stocks which I suggested meeting the criteria jumped in prices. Those were the good times and I think I have sowed some goodwill in i3investor.
Then a regular contributor in i3investor requested me to share my personal portfolio in January 2013, and then another in August 2013. The portfolios of 10 stocks each were meant for the mid-term investment horizon. Some were even for short-term. Few of the stocks were suitable for the long-term. These were one of the two earliest portfolios appearing in i3investor for the annual stock pick challenge.
I posted my portfolios as requested, naively. There were not only stocks to show, but with numerous articles on the financial interpretation and analysis and valuation of the stocks in the portfolios. The first portfolio generated a return of 146%, compared with the benchmark index’s return of 20% over the five-year period; and the second 175% versus the benchmark of 10% over the same period.
Even then, there were numerous attacks on me personally for investing in a couple of companies (out of 20) which did not perform well, and on a microcap company which its share price actually rose way above its perceived intrinsic value in a short-term of a couple of months. That raised the doubt of my value investing strategy. I had to spend quite some time to “defend” them. That was really a waste of my time. This was my main reason which I do not wish to share my stock pick to the public. What for?
Worse, in this bear market now, any portfolio will see the value reduced substantially. It is painful. That include mine. There are somehow people who dislike me so much and they go digging into my past published portfolios and happy to find that most stocks (80%) in my portfolios have “lost” substantial amount of money, after 8 years, and they started to pounce on me, but ignoring the fact the followings have not been updated,

1. Not everybody is investing for the long-term of 8 years or more, although I do advocate that, but one must buy quality and durable business with moat, and at a fair price and not an overvalued price.
2. The share prices of for example Haio and Prestariang etc. had gone up substantially, way above their intrinsic value in within the 5 years and would have been taken profit. That is value investing.
3. Most of the stocks in my portfolios were high dividend stocks which dividends had not been included in the total return as shown in the website which has not been updated. For example, Jobstreet has given high annual dividend, as well as a special dividend of RM2.65 in 2014.
4. Many of the stocks had gone through some corporate exercises. For example, Datasonic had many rounds of bonus issues and share splits, that although its presence price is only a quarter of the price when selected as shown, the total return is still a gain of a few hundred times, instead of heavy losses as shown. Same for Pintaras, Willow which has high dividend and bonus issues. Homeritz and Prestariang had also gone through the same.
5. Circumstances had changed after GE and some cyclic events. Hence some of the stocks would have been sold.

Do I still want to defend myself? No, I find it is tiring and unproductive. But seriously, do I have to defend value investing which I uphold? There are so many academic researches and the experience of many super investors in the world showing that it works, it always works in the long-term, as well as the short-term, but not all the time true in the latter though?
There are other reasons which I do not wish to tell what stocks I buy.

1. I could be wrong in my assessment, and I might have cut loss later. I do not wish to inform anyone or justify those mistakes nor my action. I have better thing to do with my time.
2. My personal risk profile and time horizon is different from yours. I could be investing for cyclic stocks at the low cycle for potentially high gain in short to midterm. Or I could be investing in high quality stock for long-term and it takes a long time for things to play out, and meanwhile if you follow me, you will be cursing that when other stocks are booming but mine not
3. The kind of business I am interested is different from yours, for example I may like to invest in high dividend yield and high free cash flows liquor company, tobacco and gaming but you don’t like sin stuff. You may like banking stocks, but I may not.
4. My knowledge in other companies is limited, but they could be better companies to invest in. Hence following me may miss your chance of better investment.

Hence, I do not wish to give any stock tips or show my portfolio to the public. I do not see any benefit on that, except for the disadvantages. Publishing your stocks can often lead you to pain. Over that, there are many of those who are waiting to criticize and pull us down, whatever we say or do. It is tiring, besides highly unproductive to go about arguing. I hope you spare me from that.
You may say I have no confidence or conviction, but it is okay as I am governed by my inner scorecard, not the public judgment. I have nothing to prove to anyone except myself. I have read about the great convictions as expressed by some well-known figures, or think they are the only great investors around and their investing strategy is “the only one” in i3investor. The choice of stocks and the overall results of that confidence or conviction doesn’t convince me yet, but on the contrary, it has shown the grave pitfalls in doing so, as well as casting great doubt and contradictions, not only their investment prowess, but their characters and humility.
However, I have dwelled in i3investors for a long time and have gained from it. I will continue to share value investing philosophy, methodologies, and process of investing, how to identify lemons and avoid heavy losses, the pitfalls of margin finance etc. using the real cases in Bursa. These, in my opinion, are more important than giving stock tips.
The game of life, including investing, is the game of everlasting learning, and humility. It is not about showing how rich you are, and how much you have invested in the stock market.
If you wish to learn about value investing, you may contact me to get a copy of my investment book during this lockdown period at
ckc15training2@gmail.com
Yes, my way of value investing may not be suitable for everyone, but it is a proven successful way from the academic research and the experience of numerous super investors in the world.
KC

https://klse.i3investor.com/blogs/kcchongnz/2020-04-05-story-h1485815265-What_are_my_stock_tips_kcchongnz.jsp