JakartaHerald.com - Renowned stock investor Lo Kheng Hong has delivered an important message to the Indonesian community that has the potential to transform their financial lives.
What is his message? "It is time for the Indonesian people to invest in the Indonesia Stock Exchange. I, Lo Kheng Hong, am proud to be a stock investor," he stated, as quoted from the Instagram account of the East Kalimantan Representative Office of the Indonesia Stock Exchange on Sunday (17/3).
When asked further, the stock investor, often dubbed as the Warren Buffet of Indonesia, emphasized the importance of starting to invest in stocks early on in order to reap future benefits, as stock investments are long-term in nature.
Moreover, year after year, the growth of companies' stocks in Indonesia tends to increase.
"Currently, it is the right time to invest, as the earlier we invest in the Indonesia Stock Exchange, the better," he told on Sunday (17/3).
The Indonesia Stock Exchange has recorded a total of 11.9 million investors in the capital market throughout 2023. This figure has increased fivefold over the past five years, with millennials and Gen Z dominating the majority of investors.
These generations are known for having a high level of financial literacy and awareness of the importance of investment.
Furthermore, stock instruments offer two potential sources of profit for investors: firstly, through capital gain, which is the increase in stock prices, and secondly, through dividends derived from company profits. Therefore, stock investment is crucial, as it allows individuals to build assets and meet future needs.
This mindset is the foundation for why millennials and Gen Z individuals are engaging in stock investment early on, with the hope of achieving financial happiness in their later years. However, it is important to note that every investment instrument carries risks.
The higher the potential returns, the higher the risks involved, known as high risk, high return. Therefore, every investor must fully understand the potential risks before embarking on an investment journey.
Lo Kheng Hong stresses the importance for investors to have a comprehensive understanding of the companies in which they invest.
This includes understanding the financial performance, business prospects, and future stock projections of the company. Additionally, he recommends checking the track record of the directors and commissioners leading the company.
In Lo Kheng Hong's view, investors should have in-depth knowledge of the fundamental aspects of a company before making investment decisions.
This is key in making wiser investment choices and mitigating unforeseen investment risks.
Lo Kheng Hong's stock tips include:
1. Reading Financial Reports
Lo Kheng Hong emphasizes the importance of reading financial reports, including annual reports, company financial statements, identifying directors, commissioners, and major shareholders.
2. Buying High Risk Low Gain Stocks
Lo Kheng Hong's tip on buying high-risk low-gain stocks should be considered. In the world of stock investment, it is crucial to gather information about stocks to avoid potential losses, especially by understanding the concept of high risk low gain.
3. Understanding That Successful Investment Takes Time
Achieving success in investment involves factors such as time, discipline, and patience. Lo Kheng Hong highlights that good results require time and it is essential not to rush in order to achieve optimal profits.
4. Finding Out the Reputation of Company Leaders
Lo Kheng Hong emphasizes the importance of always researching about the company and its leadership to avoid investment mistakes. He emphasizes avoiding buying stocks from companies that lack integrity, as this could lead to losses.
5. Patience
Another important stock tip from Lo Kheng Hong is patience. When entering the investment world, it is important to realize that success cannot be achieved instantly. Therefore, one must be willing to invest time in order to achieve optimal results in their investments. Patience is the key to a successful investment journey.
In conclusion, Lo Kheng Hong's message underscores the significance of investing wisely and being informed about the companies in which one chooses to invest.
By following these tips and principles, individuals can navigate the world of stock investment with greater confidence and hopefully achieve financial success in the long run.
Source: Katadata
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