i thought all stocks in malaysia trade in 100 shares a lot? but then u said PB = 1000 shares a lot?

where to check those stuff? i've been thru Malaysia investor and bursa malaysia website, no such info.

The percentage returns was taken from their financial report. Since I'm not able to find out all those details such as splits and all. I've taken their own return of investment figure as calculation. It's accurate as they've taken account unit splits, distribution and rise as well as rise in unit price.

For eg 2006:-

1. Total returns of the Fund is derived by this formulae:
End of Period FY2006 Bid Price - 1 = 4.78%
_________________________
End of Period FY2005 Bid Price
(Adjusted for unit split and distribution paid out for the period)


* Public Mutual only imposed the service charge once, on your initial/first investment. After that only management fees 1.5% perannum

Yes I've taken that into account, although I have to correct myself on imposing service charge twice. Still my point is, NETT RETURNS is a more important figure than what the returns the mutual funds tell you. An 11% average return yields only 7%++ when you talk about NETT RETURNS in 3 years. A big sum of profit goes into financing the management of the funds. And the thing is, even if the fund is losing, you STILL have to pay management fee further adding salt to the wound. It also means that the mutual fund charges you a fee even if the fund is not performing at all.

Somehow the risk vs returns is not worth it, at least for me or maybe at least for majority of the mutual funds in malaysia.

http://www.amazon.com/Future-Investors-Tri...1929731-1324720

Read the book
The Future for Investors: Why the Tried and the True Triumph Over the Bold and the New (Hardcover)
by Jeremy J. Siegel


From the research done over the USA stock market, high dividend paying stock has higher return than fast growing stock over long period of time.

Dreamer

As far as I know only a few stocks are in 100 shares lot. Majority is in 1,000 shares lot. I might be wrong.

Dreamer

yeah but still the dividend returns were almost like 200% over the 10 year period 1 mention

IIRC they changed all the lot sizes to 100 to make it easier for the public to invest in it.... only some shares have lot sizes in 200/1000....still many are used to calling 1 lot as 1000 shares as it was practice last time

i think you might be wrong in this.... im not sure myself cos many are still using 1000 shares /lot

I guess you must be one of the old-timer
It has been changed since couple of years ago
http://www.bursamalaysia.com/website/bm/tr.../board_lot.html
This post has been edited by dEviLs: Nov 7 2006, 03:48 PM

1 think i would like to highlight here is most people on this forum has a wrong idea on calculating annual return. Eg quoted above, 1996-2006 (10 years) give u a return of 300%. Assume RM10,000 initial investment, after 10 years become RM30,000. Most of u calculate the annual return by just dividing it by 10, turn out to be 30% p.a which is totally misleading. From this figure, i guess most of u will have a thought...WOW 30%, that is 10 times better than fixed deposit at 3%. . WRONG. In fact fixed deposit and other type of saving give a compounded interest, not average interest. If u do a compounded interest calculation, wat u get from the example above is only 11.6% p.a and not 30% p.a. Hope this can give u all a clearer picture on investment.

Another important factor of investment is timing. Although a property or a stock has good return rate, a better timing of buying with easily maximise your return rate.

Just for example, as Dreamer said, PBB offer good dividen yield while stock is pretty stable to the upside so average return rate is about 7-10% (dividen + appreciation of share price) based on RM6.80 calculation.
But a better timing buying during 98 (once I bought) is 0.88 cents only! So you make RM6 with Rm0.88 capital only in 8 years time which bring you about 600% capital gain turn out to be 75% per annum (not yet calculated the dividen gave out every year).

It sound extreme because of financial crisis during that year which make the share price plunged but what I stressed is timing is also an important factor that will maximise your investment return rate. Economy has cyclical characteristic, so it is important to look for bottom before making investment accordingly. Although bottom is difficult to be certain but at least don't buy or invest when something is already sky high.

just as i mention above, here comes another calculation. FYI 0.88->6.00 (in 8 years), the average compounding interest is only 27% p.a, not 75%. Really bo lat liau ah. .

This post has been edited by Singh_Kalan: Nov 7 2006, 06:16 PM

sorry about the calculation, I don't look into it since I just simplified it since the what I stressed at that statement is that the importance of timing besides other factors.
I just simplified with Rm6.80-Rm0.88 = RM6 gain in 8 years and RM6/0.88 = 680% gain in 8 years, I know the calculation is flaw, just simply gave 75% which, since I am not using any calculator to calculate it, just a simple mind thought of it. with simple annual rate.
I know it is wrong but the calculation part is not my statement intention.

Sorry about the misleading part.

This post has been edited by cherroy: Nov 7 2006, 06:33 PM

So, if the economic crisis comes again, it's the time for us to invest in some stable and well-managed companies. Buy the share when price low, getting high dividend every year, then sell it when the market is high...you can maximize your investment returns.

ok..i understand your intention. But the reason why i want to stress for use of compounding interest is bcoz most investment r based on this calculation. Average interest give a wrong concept to novice and its not fair to the bank that provide product such as fixed deposit, saving acc, loans etc which is based on compounding interest. Most novice will then compare this compounding interest with average interest and make a wrong decision in investment. Wat cha think?

ya haha.... i knew i was right on this.... btw devil how come got people selling their odd lot at funny prices? odd lot can trade?


but then not all well-managed companies share prices will drop such steep and even if it does drop not many are willing to go into it

Leekk8,

Let me repeat one more time, if you get high dividend every year, why would you ever sell the stock?? In the case of buying PB at $0.68, it pays $0.40 every year. Why would you want to sell??

You only sell a stock if and only if you get better ROI by investing it on something else.

<< if it does drop not many are willing to go into it>>

Darkmage,

That is why you get a low price aka on-sale.

You make money by NOT following the herd. People are cows and they follow the herd. So, they buy high and sell low.

For high dividend yielding stock, when the price drop and you get a high yield, you do not have to sell the stock to make money. So, you could collect dividend forever while waiting for the price to go up. You are making money every year.

To be separated from cows/herd, you need to KNOW how to calculate. You need to know when something is a good deal.

Let's take an extreme example, let's say stock A pay $0.40 per year of dividend and the the stock drop to $4. And, I buy the stock. The dividend yield is 10%. But, the stock drop to $2. So, what?? Did I lose money?? No, I still have a stock that yield 10% per year for me. In fact, I can hold on the stock and collect dividend until I can find a even better deal. I had made my money when I buy the stock.

Dreamer

but then you have suffered a paper lost of $2

Darkmage12,

1) Who cares about paper lost?? It is NOT real?? I am collecting $0.40 every year. With this kind of dividend yield, I can hold on the stock forever and never sell. If I never plan to sell the stock to begin with, why should I care about paper loss??

2) Seriously, how long do you think a stock will stay at $2 if it pays out $0.40 every year?? Eventually, the market panic is over and the stock price will come back up again.

As what Warren Buffet had said, do not invest unless you can invest on something that you can forget about it and do nothing for 10 years. You make money when you buy NOT when you sell.

Dreamer

that's why we're only talking about good stocks . not the random stock that will never able to climb back the ladder after the crisis.

my aunty got stucked with her 40k cash in 1 stock until now when since 1997 economy crisis. if she sell it now, she'll lose money, so she wait. (altho tat might be forever).

chinese tradition related stocks are usually good stock - licensed dai yi lung, licensed gambling center, licensed choi san ye center etc.

This post has been edited by ky_khor: Nov 8 2006, 08:44 AM

People doesnt sell odd lot for fun
Odd lots are usually given out as bonus issue, share split or reverse split.
For example, Stock A declares a bonus issue 1 for 10
So if you are holding 100 units it your holding will eventually becomes 110 units.
However, as the normal market is traded in board lot of 100 units, you can only dispose it in odd lot market. And yes there is such a market but usually the commission rate will be higher.

then odd lot hard to sell?

sweet, i just noticed that the PB funds are all forward pricing ....