Long time ago, I blog my Investing Story - Part 1 where I mentioned that I have made a little money from the KLSE when I get started. I got over-confident and lost a lot more later when Najib became the deputy prime minister. Aih, Najib.
The first stock that I bought was Maxis! Why I suddenly told you about Maxis? Because the 2nd richest man in Malaysia, Mr Ananda ‘Gates’, announced yesterday that he plans to buy out the WHOLE company!
His suggested price is RM15.60 per share and he expects the buyout to be completed in 2 months. So everyone can sell their Maxis shares to Ananda at RM15.60 in 2 months. (They are selling at RM15.30~RM15.40 at market right now, so people who want to hold for the next 2 months can make like 1~2%)
AhYap, in 21 November 2003 bought 1,000 shares of Maxis at RM6.95!
Wahahahahaha!
Today is 05 May 2007, that’s exactly 3 and a half years (3.5 years).
Bought RM6.95, Sold RM15.60, total return = 124.4%! Compounded yearly return is 26% for the last 3.5 years! That’s better than Warren Buffett performance. ENVY?!
Wahahahahaha!
But unfortunately, AhYap sold his 1,000 Maxis Shares in less than 2 weeks after he bought them at RM$7.40, making a profit of 4.7% only after brokerage commissions and fees. At that time, AhYap was so proud of himself because he thought he had beat the 1 year Fixed-Deposit rate of 3.7% in just 2 weeks.
… … …
I am quite sure that 9 out of 10 people are short term focused. That’s normal. Who likes to wait? Do you like to wait outside of the restaurants for your turn? Do you like to wait in banks? Do you life to wait in traffic jam and traffic lights? No one like to wait, they want to be quick. And that includes money (that explain why pyramid schemes and other money cons still works very well today).
If you think 10 years from now is hard to imagine, do this exercise. Think 10 years ago. 10 years ago, where are you? How long do ‘10 years ago’ feel to you? Most people will feel like it is just yesterday! And you will feel the same for today 10 years later! The same for 20 years and 30 years later! Sooner, you will be there.
For those who are short term oriented in everything of their life (work, investing, relationship, health, etc.) Herbert Stein has a good phase for you (BTW, I don’t know who the heck is Herbert Stein).
“We woke up to discover that we were living in the long run, and were suffering for our failure to look after it”.
When we make some mistakes, we will regret and hate ourself. But soon we will forget about it. The BIGGEST REGRET in our life, is not the mistakes we made, but the THINGS THAT WE DIDN’T DO THAT WE SHOULD HAVE DONE! 10 years, 30 years or 50 years later, you will forget about the mistakes you make long ago, but will regret on the things you should have done but you didn’t. If you agree with it, you will be more willing to take actions TODAY, more willing to make mistakes TODAY, so you won’t have to regret when you are old.
I might have sold my Maxis, make stupid mistakes in buying some stupid mutual funds … but I have been very hardworking in learning more about investing (I read almost 20 books on this topic alone in the last 6 months). 30 years from now, I will not regret if I sold my Maxis earlier, or lost a lot of money when Najib became the deputy prime minister, or the 12% I lost in options trading for the last 2 years … I will regret if I do none of these, and have my money just sit on a 3.7% fixed-deposit for 30 years where the same $2 that I put in today will only worth $6 where a pop-piah today that cost $2 today will also cost $6, 30 years later after inflation.
I think many people will have $1,000 today. What $1,000 will become after it is compounded for 30 years?
1% - $1,348 (savings account)
3.7% - $2,974 (fixed deposit)
5% - $4,321 (bonds)
8% - $10,062 (stocks, mutual funds, real estates)
10% - $17,449 (stocks, mutual funds, real estates)
15% - $66,211 (stocks, Phil Town)
20% - $237,376 (stocks)
25% - $807,793 (stocks, Warren Buffett, Peter Lynch, Tan Teng Boo, Mohnish Pabrai)
30% - $2,619,995 (not many people can do this)
Are you happy if your $1,000 that you put in today became $237,376 30 years later? I don’t think any insurance policy can beat that kind of protection to yourself, your family and even your grandson.
Let’s say I continue to blog for 30 years and you keep reading for 30 years (I need to give you Ang Pow if you do that). Say I have put my $1,000 down today and it become $237,376. And I blog about it! While you, who read my blog today and 30 years later, put the same $1,000 in an FD and got $2,974, will you want to kill yourself when you read my post? I think you will never visit AhYap.com again to avoid being reminded of what you didn’t do where you should have done, 30 years ago. You regret.
And remember 30 years is the length of most of our housing loan! If you are willing to wait 30 years to fully own your house, you can definitely wait 30 years for your investment to become $237,376.
At last, if you make $237,376 30 years later, remember to give me ang pow or buy me some pop-piah! I am sure I will still be alive. But never come to me if you lost all your money! 
Hmmmm, is this the followup on our last night conversation? I enjoy reading this post a lot. Great work!
(am i the first to read it?)
> am i the first to read it?
You are not the first to read it, you are the only one who read it.
Wahahahah.
i read it too.
Haha, then you are the only 2 person who read it. Thank you thank you!
New look.Great!By the way,Astro stock is still available for sale.
boyboycute:
Few days ago I was searching for ‘KLSE all time high’ and saw you comment in that DAP post 1 day before me. So Ngam! Wahahahaha.
My money fully invested already! No more money to buy anything. Return so far is very good. PETDAG 20%!
eh got any recommendations ar? i invest mia stock all i can vomit blood. only pbb so far is good.. i want long term one.. i also kek sam never buy maxis.. grr..
april,
If you have a long term perspective (10 years+), invest in ICAP. ICAP is a close-end fund listed in KLSE run by Tan Teng Boo of icapital.biz His track record from 1997 to 2007 is 25% compounded. Note that there is a big bear market from 2001 to 2003 and he still manage to compound at 25%. If you want Tan to manage your money directly, you need RM4 million. People who don’t have RM4 million but want him to invest you, buy ICAP.
Currently ICAP is at its peak wor. dilema again. Should I wait until the share market drop then only buy leh? Confirm will drop one within this year.. kekekeke…
Many people have problem with these, when they saw a stock at its peak, they are afraid because they compare it with the wrong thing, they compare it with the ‘past’ so it look like it is very expensive. However, price doesn’t equal to value. A stock selling at its peak at RM100 might still be undervalue while a stock selling for RM0.15 might be overvalue.
Tan Teng Boo has a paid newsletter and ratings for stock, he rate his own ICAP - ‘Buy Below RM1.78′. If you are holding it for long run (10 years+) you can buy now. And it doesn’t matter if it falls to RM1.50 or what. If that happens, we buy MORE. But it takes a long time for people to ‘tune’ in to this kind of investing philosophy. Everyone wants quick money.
April,
You said you are looking for long term investment but i feel that your mindset is more to traders style, which is short to medium term.
ICAP at its peak shouldn’t cause you any dillemma. If it does, then does it means that if a stock is in its valley and has negative NAV sounds like a good investment then? If you are trying to look into long term (and in value investing), fundamentals considerations like business earnings, industry long term trends, and margin of safety are the necessary consideration.
Just my few cents… and hey, your blog got hacked by hackers when i followed your link at http://www.aprilng.net.
Please beware of financial statement manipulation.Do double check on stock which posts beautiful EPS or insane growth.
Agree, especially for stocks in Msia. example? look at transmile.
Erhm.. my blog has been fixed. Yeps, I was aware that it has been hacked. Damn cacat. haha..
With limited $$$ and also news, I heard that the stock market will crash somewhere next month . I will wait until July only decide plus need to settle down with a jobless life first. Recently got skinned by my father for having addicted to share market. haha!! I bought Genting and it came down since then. Kek sei me.
what is the minimum amount of RM one needs to dole out to buy ICAP closed-ended fund?
ICAP is different than normal mutual funds because it is listed in the KLSE. You buy ICAP like you buy any other stock in the KLSE (such as MAYBANK, PBBANK, etc.) ICAP is listed in the newspaper under section close-end fund. There are only 2 close end funds listed in KLSE, the other one, is performing badly and is a shame.
You can know the NAV of ICAP (Net Asset Value) at icapital.biz. It is updated every Wednesday.
The price you paid for ICAP is depending on the supply and demand of the market. If you are buying open-ended mutual fund, you buy from the fund company and you sell to the fund company.
For ICAP, the number of units is fixed. You buy from the ‘market’ who is another guy who already own ICAP stocks. And when you sell, you sell to the ‘market’ - anyone who is interested. So the price will be around NAV. Sometimes higher sometimes lower.
For the last few weeks, it is trading below the NAV (The NAV as of last 27-6-2007 is 1.67) but people are selling at market from 1.60 - 1.66. A good time to buy.