Monday, September 22, 2008

The TEN Principles of John Templeton’s Investment

I have read a good article about the ten investment principles adopted by John Templeton in a chinese newspaper, The Oriental Daily. So, I have summarized it and translated to english and post here. You all can read and think if these principles are benefit to yourself.

1) Leave the market when everyone is looking good at the market
From experience, in a risky investment market, it is always minority earning money, and majority is just enjoying the process or losing money. Thus, when people look good, we leave the market; when people look bad on the market, we enter the market.

2) Do not put all eggs in one basket
Even professional analysts may judge wrongly. So, if you invest all your money into a single stock, you may lose all your money if anything bad happens on that particular stock. By diversification, we invest our money into several stocks, if one of the stocks performs badly, we still have most of our money left.

3) Choose emerging market if you want super high return
Like human, the fastest growth happens during baby and teenage stage, but not adult stage. So, investing in emerging markets, we may obtain super high return from the fast growth of economy in emerging countries.

4) Main factor in stock selection – Understand the management team
Everybody has different characteristics and attitude. To make a corporate to be successful, management team is playing the most important role. We should understand how they manage the corporate and select those corporate with a good management team.

5) Select stock with FELT
When selecting stock, we should justify if the stock price is FAIR, the market is EFFICIENT, the stock is LIQUID, and the corporate annual report is TRANSPARENT.

6) Investment opportunity is always available during crisis
In the final stage of crisis, normally markets have been dropped quite a lot, and there are stocks undervalued. By having many cheap stocks and undervalued stocks, there are a lot of opportunities for us to invest.

7) Investment decision guidance – Net Assets
Net asset is the difference between total assets and total liabilities of a corporate, then divided by the number of share. If net asset is higher than the current share price, this share is undervalued. If the net asset is lower than the current share price, this share is overvalued.

8) Understand the game rules and regulations before entering a market
There are different policies, rules and regulations in different markets and countries. Before we invest in a market, we should understand the rules and regulations in the markets, especially those emerging markets which has less complete law and rules to protect the investors.

9) Gold is always hidden under the sands
Do not just look at the surface when we invest. We should study the market, find out the potential corporate and invest in these potential corporations.

10) Technical analysis is not the most important method
Technical analysis is just a part of all the analysis methods. Technical analysis is a supplement after we analyze on the politics, capital and fundamental aspects. Investment is on a particular stock, so we should analyze the fundamental of the corporate before we invest.

Tuesday, September 16, 2008

Historical Performance of Malaysia Equity Funds (31 August 2008)

(Bracket indicates negative value)

1 Year Return Ranking:

1. MAA Capital Guaranteed 1 – 7.16%
2. MAA Capital Guaranteed 2 – 5.89%
3. PRUlink Guaranteed Account – 5.80%
4. MAA Capital Guaranteed 3 – 5.18%
5. OSK-UOB Resources – 4.83%
6. HLG Industrial and Tech Sector – 4.54%
7. AMB Value Trust – 3.67%
8. Property Plus CG – 3.29%
9. MAA Platinum – 3.18%
10. HLG Consumer Products Sector – 2.98%
11. MAA Technology – 2.24%
12. AMB Ethical Trust – 1.64%
13. Areca Equity Trust – 1.47%
14. AMB Dividend Trust – 1.14%
15. Public SmallCap – 0.98%
16. PRUGlobal Basics – 0.90%
17. PB ASEAN Dividend – 0.41%
18. HwangDBS Glo Emerging Markets – 0.35%
19. OSKUOB Emerg Oppty – 0.24%
20. AmGlobal Agribusiness – (0.34)%

3 Year Return Ranking: (Annualized Return)

1. OSK-UOB Smart Treasure – 29.05%
2. HLG Industrial and Tech Sector – 26.23%
3. CMS Islamic – 25.95%
4. AMB Value Trust – 25.85%
5. OSK-UOB Emerg Oppty – 24.88%
6. AMB Ethical Trust – 23.57%
7. Public SmallCap – 23.55%
8. Uni Aggressive – 22.78%
9. Manulife Equity – 22.12%
10. PB Growth – 21.92%
11. OSK-UOB Small Cap Opportunity – 20.60%
12. MAAKL Progress – 20.53%
13. Public Islamic Opportunities – 20.39%
14. CIMB Principal Equity – 20.18%
15. Uni Strategic – 20.40%
16. Public Aggressive Growth – 20.00%
17. MAAKL Value – 19.71%
18. TA High Growth – 19.34%
19. MAAKL Growth – 18.76%
20. CIMB Principal Small Cap – 18.75%

5 Year Return Ranking: (Annualized Return)

1. PB Growth – 19.89%
2. Manulife Equity – 18.22%
3. Public SmallCap – 17.41%
4. AMB Value Trust – 17.01%
5. Public Aggressive Growth – 16.00%
6. MAAKL Al-Faid – 15.51%
7. OSK-UOB KLCI Tracker – 15.26%
8. Public Industry – 14.79%
9. AMB Ethical Trust – 14.79%
10. Public Savings – 14.69%
11. Public Equity – 14.55%
12. ING Dana Suria Ekuiti – 14.32%
13. Public Growth – 14.32%
14. OSKUOB Equity – 14.13%
15. Lion Progressive – 14.04%
16. Public Ittikal – 14.01%
17. Public Regular Savings – 13.96%
18. Public Islamic Equity – 13.84%
19. Public Index – 13.51%
20. HLG Industrial and Tech Sector – 13.47%

Source: LipperWeb

Thursday, September 11, 2008

DIGI Offers FREE PA Insurance for Subscribers

From 11 Sep 2008 onwards, DIGI is offering a 1-Year FREE Personal Accident Insurance to all the subscribers.

The benefits are as following:
- RM10,000 for Accidental Death
- RM10,000 for Permanent Disablement
- RM500 for Funeral Expenses (due to Accidental Death)

For detailed information, you can look at

To sign up the free insurance, just go to, fill in all the relevant information and sign up. You must be DIGI Prepaid/Postpaid registrant for more than 3 months.

Since this is a free insurance offered by DIGI, all the DIGI subscribers should apply for the plan fast. Although RM10,000 coverage is not much, at least this give you or your family more compensation when you have accident. DO activate the plan now!!!