Experienced Investor Lo Kheng Hong Tells His Broker Was 'Disturbed' When Buying Indika Energy Shares

JAKARTA - Experienced investor Lo Kheng Hong shares tips on investing in stock instruments. According to him, a typical trader investor should not be afraid to take risks when stock prices are falling.

The man who is familiarly called Pak Lo said that when other people are afraid to see the bad condition of a company's stock performance, in fact he sees that the condition is not a high risk. This, he said, was in line with the investment principle he had held so far, namely investing when things were bad or bad time.

"My principle is always to invest in bad time and sell in good time and will get rich," said Lo Kheng Hong in an upload on the Hungry Stock YouTube account, quoted Thursday, July 29.

The man who is referred to as Indonesia's Warren Buffet views this bad condition as an opportunity when foreign investors leave, thereby pressing stock prices to become cheaper.

Lo Kheng Hong also said that when he bought shares of PT Indika Energy Tbk when the share price of the issuer codenamed INDY fell by Rp. 100 per share and the price of coal was at US$ 50 per ton.

At that time, INDY's book value per share reached 1,600 times while its share price was only Rp. 100. However, he still decided to buy. Pak Lo, as he is known, told a story when his stockbroker advised him not to buy INDY shares because it was considered that coal mining issuers did not have a bright future.

"My broker holds an MBA, graduated from a university in the United States. But luckily I didn't listen to his advice, I kept buying, until finally I became the fourth largest shareholder in Indika Energy," he concluded.

The decision was right. Lo Kheng Hong sold the shares of the company owned by conglomerate Agus Lasmono Sudwikatmono when the price of coal rose by 100 US dollars per tonne and its share price rose to Rp. 4,000.