Learn To Be Patient In Investing In Stocks By Experienced Investor Lo Kheng Hong: Rely On Fundamentals, Because If You Buy A Cat In A Sack, Can You Be Patient?

Lo Kheng Hong. (Photo: Doc. ardiarmandanu.com)

JAKARTA - Experienced investor Lo Kheng Hong shares tips on investing in stock instruments. Investing in the capital market, especially stocks, according to him, requires patience. For this reason, investors must understand the fundamentals of the company whose shares are to be purchased.

"If we buy what we don't know, we won't be able to be patient. If we buy it because we buy pompoms, influencers, how can we be patient," he said on the SyailendraCapital podcast, quoted Monday, December 27.

"We read the financial statements, how much was the sale, the profit was the capital, the debt, we all know that we must be patient. Since we know this is a Mercy, the price of the Avanza is of course we are patient. If he buys a cat in a sack he doesn't know what he is buying, how can he be patient? will continue to be upset," added the man who is familiarly called 'Pak Lo'.

He also shared why he persisted in working on the stock market even though he had been hit by crises many times. He shared tips where the patience of the investor, nicknamed Warren Buffet Indonesia, was able to pay off because through investing in stocks, his wealth was increasing.

Lo Kheng Hong, at the time of the crisis in 1998, chose to pour all his remaining money into one stock. The choice is owned by Astra's subsidiary, PT United Tractors Tbk (UNTR).

"In 1998, so if Mr. Jos Parengkuan (founder of Syaliendra Capital) said he went bankrupt, I almost lost. My money was reduced by 85 percent, the remaining 15 percent, at that time I was a full time investor again. I bought UNTR with my money," said Lo Kheng Hong, on the SyailendraCapital podcast, quoted Monday, December 27.

Lo Kheng Hong did this because UNTR's share price dropped to IDR 250. In fact, at that time the operating profit per share was IDR 7.800.

The problem at that time, said the man who is familiarly called Pak Lo, was that the shares he bought had stagnated at IDR 400 and did not increase again. Pak Lo then made a profit after holding UNTR shares for six years, and sold them in 2004, at IDR 15.000.

"This is also still common because my money is small and then suddenly it becomes a lot. I thought what if my money was lost, so I sold it," he said.

Lo Kheng Hong also revealed, "yesterday is history, tomorrow is a mystery". No one knows about the crisis, either 1998, 2008, or 2020. But, to anticipate, Hong avoids not wanting to go into debt.

"I'd rather push 99 percent of my money to buy shares, I'm brave, but don't ask me to add debt. Because when the crisis comes I won't be able to survive. waiting for him to come back higher," he said.