The name Lo Kheng Hong (LKH) in the stock world is legendary. This LKH has inspired many stock players because of his anti-mainstream investment method, and is able to generate profits of hundreds or even thousands of percent of the investment results and patience.
At first glance about LKH, he is a man born in Jakarta, Indonesia on February 20, 1959. LKH is dubbed the Warren Buffet of Indonesia. Uniquely, LKH only started investing in stocks at the age of 30. Even though most stock players (you and I) were familiar with the stock market before the age of 30.
What you need to know, when you first get to know stocks, LKH is not an investor as you imagine. He is a trader. However, because they feel unsuitable as a trader, they often lose and are deceived because many stocks are "shuffled". Finally, LKH decided to become an investor, and being a stock investor (not a trader) is what made him successful and rich while sleeping.
From here I want to tell you that when you want to be a trader, it is not necessarily a trader suitable for your type. It could be that you are more suitable to be an investor and vice versa. Therefore, you must be able to be observant in determining your character. Also read: Become a Stock Trader or Investor?- Part I. Become a Stock Trader or Investor?- Part II.
LKH's routine as a full time stock investor is to do the three things he usually calls RTI (Reading, Thinking, Investing). He reads 4 newspapers every day. The profits from the stock, he uses a little to travel the world at least 2 times a year.
Then, what's interesting about the investment? Lo Kheng Hong is a very patient investor. He only buys a company if he knows the company. He is not easy to cut loss just because the price dropped a little. And don't sell quickly when the stock price goes up. LKH was actually inspired and learned a lot from Warren Buffet, therefore he also tried to apply the investment principles that Warren applied.
Meanwhile, Lo Kheng Hong's PRINCIPLES in SELECTING SHARE is:
- First: See if the management is managed by people with integrity, honesty, professionalism, honesty and admiration.
- Second: Pay attention to the business being run. What will the business be like in the future? You can see the past, for example from 5-10 years back.
- Third: Look for companies with large profits through profit margins, ROE and business sectors.
- Fourth: Choose a company that can continue to grow in the long term.
- Fifth: Observe the valuation of the shares using PER or PBV. Then, compare with competitors. Then, buy cheap stocks, and buy good stocks when the price is cheap, especially during crisis conditions. LKH applies the principle of Warren Buffet: Be greedy when the other fearful.
Here are some of the advantages of Lo Kheng Hong's shares that have been achieved:
LKH also makes a profit from BUMI's shares, where LKH buys BUMI when the price is still low (Rp50), and then sells when the price reaches Rp500.
My message is that you can learn his philosophy of life and the way he invests, how he manages his patience and psychology (stocks go down a little, they don't cut loss immediately, when stocks go up a little, they don't rush to take profit).
You do not have to imitate exactly his way and style. Everyone has their own investment and trading character. However, Lo Kheng Hong's stock mindset, especially the value of PATIENCE (willing to wait and see, don't be in a hurry) and discipline in investing for years, is what has allowed Lo Kheng Hong to make spectacular profits.
