Saturday, June 27, 2009

iCapital : Axiata

11.50 pm : I was reading Moola's posting about iCapital RM14m loss in their Axiata investment. Seriously, a 79% cut-loss is VERY steep. Ouch!! Double ouch!!. And what is the main reason that icapital needs to CUT it off?

I m talking about investment-sense of it(not emotional, I hope). Hence, I could not comprehend that a fund-managing company will cut 79% loss. It is really beyond me. Unbelievable!!

I m not trying to be-little the fund or anything. I will feel sorry for TTB, he is certain a capable person and been years in the investment-world. So, I still won't believe that he will make a decision to cut loss of 79% of his holding on Axiata. Hey, Axiata(TMI) could recover, given a longer period of time, ok? So, why take such a harsh decision? Why not cut if off much earlier? Better still, why BUY it to hold in the first place?

Moola has done a good job in questioning the logic. Yes, as investors ... we have the rights to know where our money being 'parked'. Wait ... except EPF and such funds as they are NOT answerable to us, eventho they are using OUR money!! That is another point.

If you place your money with iCapital(or any privately own managed-fund companies), you expect returns ... in the form of dividends and such.

I remember I shown JL how ASB lost more 50% of their funds(paper-loss only la, they may claim) and it is listed on their ANNUAL REPORT(I m one of their 'customer' and contributing RM250 per month into this fund, ok?) yet ASB could able to declare a 7% dividend payment. Not bad ... so, I don't care what counters they buy, as long as give me my 7% dividend per year or else I will stop putting my money in, ok? See? We don't care ...

But, if I m to place my money with a fund-managing company and it reported a loss of RM14m through a SINGLE investment, I will demand explainations. I know what investments are now, so I will certainly question the LOGIC. If the fund gives me the lame excuses such as market was bad, many of our portfolios are bleeding blah blah ... so, sorry that we could not give you the dividends for this year. But, we could be sure to give our investors huge returns in 2009 as we believe it is beginning of a bull-run ... who are they bull-shitting with?

So, if a person could gain consistently 20% returns PER ANNUM, that could be said as a 'good' achievement. In 2008, many of us lost some money(not as much as 79%, I hope). I lost about 60+% by AUG2008 when I decided to cut-loss most of my holdings and start 'all over again'. I was a naive 'investor' then with very little capital(RM10k only).

Do start 'small' ... because if you are very new to markets, chances will be you will be drown/lemas. Controlling of emotions are EASIER SAID THAT DONE. You may have read many books before you get invested but ... tell you what ... you need to read really MANY books to digest the concepts and find the common investment ideas that are suitable to your personalities. If you can't even do that, markets are a VERY noisy place ... you will be drown in tonnes of biz-news or economic news.

I want to write about all these ... the experiences I went through for 1.5 years(only?) and to be shared with many newbies. I do share about 40%(only?) with JL in this few months of guiding him. And I told him that he is one of the top 20% in KLSE at the moment as he is in positive region. But, investment is a looong process. We could not and should not count our chickens too early.

Anyway, always stick to our plans, may it be trading or investment plans. I hv learnt so many strategies that NO ONE strategy is best. Buying Genting and buying Genting-CM are certainly require different mind-set/plans.

Rule no 1 : Never to lose money.

Rule no 2 : Refer to rule 1.


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