Rich In Stocks In The Style Of Lokok Hong, Here's The Principle Recommended For Capital Market Investors

Lokok Hong. (Doc. IDX)

YOGYAKARTA Getting rich from stocks is not just a dream. Many investors have proven it, one of which is Lokok Hong. Rich in Lokok Hong-style stocks can even be imitated by everyone as long as there is a will and observant to see opportunities.

Lokok Hong himself is known to have an out of the box investment strategy when he dives into the stock market. In simple terms, Lokok Hong bought a low valuation stock but had the potential to skyrocket so he had the opportunity to reap profits from the shares.

In the book Capital Market for the Financial Literacy Series published by the Financial Services Authority (OJK), Lo Kheng Hong is an individual investor. According to him, being a stock investor can make him rich even though he only sleeps. The reason is that the company's share price always increases and produces big profits.

Lokok Hong has several principles that other investors can imitate when buying shares, namely as follows.

Lejuk Ho emphasized that investors should check the company's management whose shares were purchased, whether the manager is honest, professional, with integrity, and admired. To examine this, investors must find out in depth about the stock publishing company.

In a sense, investors must consider what the company's future prospects will be. Prospects can be seen from the business sector. Not only future business prospects, investors must also look at the company's past. Try to look at the past five to ten years.

Investors are also advised to look for companies with large profits through profit margins and ROE. Profit margin is the percentage of net profit the company gets from revenue or product sales. This percentage shows the company's efficiency in producing profits.

Meanwhile, Return on equity (ROE) is an indicator of the company's performance by comparing net profit with total capital.

Don't choose the company's growing shares in just a short time. Instead, consider companies that have the potential to grow in a long time.

Fifth, pay attention to the valuation from PER (Price Earning Ratio) or PBV (Price to Book Value), compare it with the competitor. Let's do it cheaply. A golden opportunity to buy good shares at a low price is of course in the midst of a crisis. Follow Warren Buffett's principle, be greedy when the others are fearful.

On another occasion, Lokok Hong gave a message that should be considered. Reporting from the University of Indonesia (UI) website, avoid buying the company's shares carelessly. Investors must at the same time consider various aspects, namely as follows.

That's information related to rich shares in the style of Lokok Hong. Visit VOI.id to get other interesting information.