Seasoned Investor Lo Kheng Hong: There Will Always Be Mercy Shares Sold At Bajaj Prices In The Midst Of The JCI Which Is Often All-Time High

Lo Kheng Hong. (Photo: Doc. HR ITB)

JAKARTA - The movement of the Composite Stock Price Index (JCI) has several times recorded all-time high closings in recent times. JCI had touched its highest level at 7,355 on intraday trading on April 11, 2022.

Market conditions that often touch the all-time high level are feared to make stock prices expensive. However, seasoned investor Lo Kheng Hong said, there will always be stocks like 'Mercedes-Benz' aka Mercy which are sold at 'bajaj' prices.

"If we buy it at the pandemic price, there are a lot of Mercy sold at Bajaj prices. Now, our JCI is at an all-time high, very few, but still there," said the man who is known as Warren Buffet of Indonesia when launching his book and talkshow with Lo Kheng Hong on the HungryStock YouTube channel, quoted Monday 25 April.

The man who is familiarly called Mr. Lo said that in 1998 when the monetary crisis occurred, he took a close look at one of the stocks, namely PT United Tractors Tbk. (UNTR). At that time, the share price of the subsidiary of PT Astra International Tbk (ASII) had fallen to a fairly cheap price, which was IDR 250 per share.

Lo Kheng Hong also bought UNTR shares in 1998, which he thought was like buying Mercy at the price of a bajaj.

"At that time the share price was IDR 250, this is Mercy which was sold at the Bajaj price," he said.

According to Lo Kheng Hong, UNTR is a good company. He assessed that the company did have a lot of debt, but if you look at the large operating profit, UNTR would be able to pay off its debts.

Meanwhile, Lo Kheng Hong will resell the 'Mercy' shares at the Bajaj price when the price has returned to the 'Mercy' price.