Experienced Investor Lo Kheng Hong Shares Tips On Investing In Stocks To Talk Loss Of Rp34.45 Trillion Garuda Indonesia: Don't Buy Cats In Sacks

Lo Kheng Hong. (Photo: Doc. IDX)

JAKARTA - Seasoned investors never stop providing education to the public, especially investors who invest in stock instruments. The man, who is called Mr. Lo, revealed three tips that can be done to become a smart investor.

"Smart investors don't buy cats in sacks. Smart investors know what to buy," explained Lo Kheng Hong in a virtual webinar, quoted Sunday, August 1.

The man who is referred to as Indonesia's Warren Buffet said there are three things that need to be known from a company, namely company management, profit or loss bookkeeping, and stock valuation.

First, according to Mr. Lo, smart investors will never and will not buy shares from companies that are dishonest and have no integrity. Second, he continued, smart investors will buy companies that are good in their fields or that bring profits every year.

One way to determine the quality of a company, according to Mr. Lo, can be through financial reports. He gave an example, state-owned company PT Garuda Indonesia (Persero) Tbk (GIAA) as one of the companies that continue to lose money.

Based on the financial statements as of December 31, 2020, Garuda Indonesia recorded a loss of US$2.44 billion or equivalent to Rp34.45 trillion in 2020. This value swelled from a net loss in 2019 of US$38.94 million.

Lo Kheng Hong compared the performance of Garuda Indonesia with PT Unilever Indonesia Tbk (UNVR). Based on data from RTI, UNVR has a return on equity (RoE) of 151.78 percent.

"If you have a company that makes big profits, it's the same as having a money maker, smart investors will choose companies that make big profits," he added.

In addition to getting a look at the profile and profits, said Lo Kheng Hong, smart stock investors will buy companies that always show growth in performance. Third, continued Mr. Lo, smart investors will buy companies that have low valuations.