Openings In Front Of Conglomerate Hermanto Tanoko, Veteran Investor Lo Kheng Hong Calls Digital Bank Stocks Terrible: Losing Companies With Expensive Valuations

Lo Kheng Hong. (Photo: Screenshot of Hermanto Tanoko's YouTube channel)

JAKARTA - Seasoned investor Lo Kheng Hong has opened up about stock investors who are busy raiding digital and technology bank stocks. According to the man who is known as Indonesia's Warren Buffet, he himself does not dare to touch the shares of these digital and technology banks.

Lo Kheng Hong said the extraordinary stock increase experienced by digital bank stocks was not supported by fundamentals or with large profits. According to the man who is familiarly called Pak Lo, this was very scary.

"It's very scary, for example a company that loses a very expensive valuation, I don't dare touch it," said Lo Kheng Hong in the podcast of Avian's boss, conglomerate Hermanto Tanoko, quoted Thursday, June 2.

Pak Lo further said that stock investors should not only think about rising prices when investing in technology stocks and digital banks, but also keep in mind the risks. He also regrets that there are investors who have invested in wonderful company shares, but have shifted their investment to digital bank shares and technology to pursue profits as soon as possible.

"If the shares of a wonderful company, he (investor) exchanges for digital bank shares and technology, that's a tragedy for him," he said.

According to Pak Lo, digital and technology bank stocks have high risks with low gains or gains or high risk, low gains. He also admits that he prefers stocks with low risk and high gains.

"People who know, he can buy low risk high gain stocks. But people who don't know, ordinary people, new people, he can buy high risk low gain stocks because they follow suit," he said.

Lo Kheng Hong likes stocks in the commodities, coal, palm oil, banking and property sectors. Meanwhile, according to him, stocks in the consumer goods sector have an expensive valuation, even though there are many good companies in the sector.

"Consumer goods stocks are good companies. Only the valuation is expensive, so I haven't bought them yet," he said.