JAKARTA - An investor in the stock market, Lo Kheng Hong said that the presence of influencers in the stock market is very dangerous. The reason, according to him, is that influencers often offer expensive stocks, but without providing proper education to retail investors and beginners.
The man who is referred to as Indonesia's Warren Buffet saw influencers promoting stocks that have high valuations with a price book value ratio (PBVR) of more than 10 times.
He compared when he bought shares of PT Gajah Tunggal Tbk (GJLT) with a cheap valuation. Based on RTI data at the close of trading last Tuesday, August 3, the current PBVR value of GJTL has reached 0.34 times.
"Of course it's very scary to buy overpriced stocks, which means we are buying Avanza at Mercy prices", explained the man who is familiarly called Pak Lo in the Hungry Stock YouTube channel upload, quoted Wednesday, August 4.
According to Lo Kheng Hong, in contrast to the stock of influencers who offer 'Avanza' shares at the price of 'Mercy', he has the principle of buying 'Mercy' shares for 'Avanza'. People in general, he said, have not been equipped with knowledge about investment, they will be stuck with the recommendation and it is possible that someone will lose money.
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This influencer action does not rule out the possibility of triggering the price of a stock to soar because it becomes a conversation among the public. Lo explained when a stock is being discussed and its price is not the right time to buy.
"Moreover, buying stocks that are going up is not the right time, especially not from the results of our research but hearing from influencers, it is very dangerous", said Lo Kheng Hong.
Lo Kheng Hong actually suggested buying shares when someone else sold the shares because that's where the price is cheap.
"Actually, it's the best time to buy stocks, when everyone doesn't want to buy, right now when everyone talks about certain stocks, it's not the time to buy", said Lo.
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