Intelligent investor

Benjamin Graham, the master of Warren Buffet were widely know as his intelligent investment which bring value growth in long run of stock market. A human are usually pack with greed and exitement of gambles. How much do we really able to control our desire of greed and gambles in stock market?

A good book title "The Intelligent Investor" should be read by stock market investor out there. In the book itself, Graham told his experience and story on how to be an intelligent investor. One rule is buy low sell high. Buying when people selling and selling when people buying.

Easy to say but really how can we really practice this. I tested with a stock counter name NCB. This counter had good performance in the past history. With recent company profile of good contract and expansion, the stock at WW52 low. With confident, I bought this counter. Yes, as Graham fundamental theories of studying the company background, profile, management and etc. All of it meets the requirement but after holding for a month plus, this counter still losing money.

EcoWorld which formally known as Focal Development is another miss boat situation. Upon buying this counter, it spike crazily over a week. Seeing it spike too much, my mentally are too weak to tell myself to hold onto this counter. With no fundamental data, except that the CEO was from SPSetia (which well known for its properties development is good image), I bought this counter just for the brand. This counter spike ~10% daily. Knowing that it is too abnormal because of too much speculation, I sold this counter earlier and fail to hold longer. Although there are profit but soon later, the stock rise again 10% daily for another week before it hits UMA.

Back to that I purchase couples of other stock counter which recent news showing good contracts secure. Those counters shows a good fundamental profile too in overall. After purchase it, all this stock still keep dropping. About total of 15% for the past 2 weeks. I am still thinking is it really Graham theory really applicable in Malaysia stock exchange? Is fundamental research is sufficient enough? With sign of losing money for months despite of good fundamental, is it really what Graham mention (third country/developed country/high inflation country) really not a good place for investment? Well if in this case, is really investing in Malaysia market require more than just Graham theories? Or is it just human instinct and desire for greed that we unable to control when to sell or when to buy? I am still hoping the counters I purchase will regain profits in a period of one year. Lets wait with patient.


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