Whatever you want to buy, just buy choose 1 bank stock only rather than 3. Choose other industry blue chips so that you don't put all your eggs in one basket and diversify your risks.

Seeing that the Fed already drop to 0 for interest rate, this means BNM will do the same as in drop interest rate, when? nobody knows. When interest rate drops, bank stock also drop. Some say BNM will dragged until May to drop the rates.

There is definitely room to drop.

Depends. If a person only has RM10k to invest, might as well stick to 4 stocks only.

If another person has >RM100k to invest, they can afford to diversify more into 15+ stocks. I'm personally going for around 15 in total.

RM 2.50 to RM 9 over 13 years plus dividend.... how much is the CAGR? ~12% (excl. dividend)? Really good!

Nothing compares to Public Bank though.
I heard that if a person held Public Bank shares since IPO and never sold, that person already millionaire.

but their IPO was in 1992, not 2008. Different time frame.....
in 2008, PBB was like RM 10. At its peak last year, about RM25. Without considering dividend, MBB is better, no?

by the way, the other user said foreign investors prefer PBB over MBB. Why is that?

and what will happen to PBB after THP??

Foreign investor like PBB because of higher free float.meaning more liquidity.

On dividends PBB only pays about half of its earninga in dividends, so it has room to maintain payout. iIts dividends has grown most years except one or two crisis years.

MBB pays more dividends but nearly to the max of its earnings. Any fall in earnings could result in dividend cuts.

What is THP?

then it would be wiser to collect PBB then?

but this has no government backup?

sorry .... THP = teh hong piow. He's already ±90yo, I think .... if anything happens to him, stock price will dive?

also wondering about Berkshire hathaway now since Buffett is even older.

Tbh Difficult pick between MBB and PBB based on current prices. N I think you highlighted good points about lack of govt backing n THP. But lack of govt backing may be a good thing.

P/S I actually think good idea to buy Berkshire now.. Let WB do the market timing.

This post has been edited by Cubalagi: Mar 18 2020, 12:35 AM

I thought so too... because he has 60% cash while I don't.

I believe Public Bank gave a higher return than Maybank because it rose higher between 2008-2019 than Maybank. Maybank was quite stagnant because it kept offering DRIPs.

https://fifthperson.com/4-reasons-why-publi...lionaire-today/

This person claims that if you invested RM15,000 into Public Bank shares at 1992 IPO and reinvested everything, you're a millionaire. But, RM15,000 is a lot.

People analyse bank stocks based on Net-interest-margin, Expense ratio, Price-to-book, Loan growth, Loan-to-Deposit ratio etc.

I'm quite sure Public Bank outperforms Maybank in most areas especially Expense ratio because it's a Chinese company (sorry for generalising but most of the employees are Chinese including major shareholders). Being a Chinaman company, it's very stingy and conservative cutting costs here and there. However, this is good for shareholders.

Chinese tend to be risk adverse too which explains their prudent and strict credit screening unlike banks like Alliance bank who lent to London Biscuits. In fact, I believe it's the toughest bank to get a credit card from. Maybank is strict too but has also lent out to companies like Tuaspring.

Maybank still has a lot of fanatics because it's synonymous to their 'National pride' just like MAS, Proton etc. They believe the government will bail them out if anything happens.

The good thing about Maybank is it has a strong no. of savings account among youngsters (20-30 years old). Almost everyone has a Maybank account. Public Bank is like for old uncle aunty but they are trying to change this.

Maybank is also not afraid to venture into Fintech, Duitnow etc. Public Bank used to be technology adverse but luckily is making changes. Otherwise, it will end up like the Kodak of banks.

In the long run, I think Berkshire will not outperform the S&P500. Buffett even adviced his wife to invest in S&P500 when he's gone. In 2008 financial crisis, Berkshire's shares fell too. Nothing was spared. He's also not perfrct as he made some bad investments into Kraft, Tesco and initially didn't want to invest in Apple.

I'm just afraid of what will happen to the company after he's gone as the company is linked closely to Warren's personality and brain. Also, he's old. Anytime he can have a (god forbid) heart attack since he consumes McD for breakfast everyday.

Except death and tax, nothing is forever certain. Similarly, what will happen to pbb after the chairman is no longer around?

This post has been edited by icemanfx: Mar 18 2020, 08:51 AM

When Steve Jobs passed, Apple's share price didn't fall much (or at all).
Share price will depend on profitability. If good management is chosen, they will steer the company into profitability. Hence, share price will increase.

Berkshire is different as its profitability depends on Warren's and Charlie's (who is also old) stewardship. They are the main masterminds.
Warren is also seen as an icon of Berkshire. Many Berkshire shareholders attend its AGM just to see Warren.

hahaha how many of us can afford 1 berkshire share?
it's in USD samore, x4, 1 share also millionaire already. hahaha

not the A class share; B class share lah...

That's why they have the B shares.

.https://www.marketwatch.com/investing/stock/brk.b

hahaha ok, sorry pardon me please.

for Maybank to drop to that price shit must have hi the fan in Malaysia, the amount of interest that gov n pension fund in that counter is more that you can imagine

as you can see everytime Maybank drop in the morning trading always someone to back it up and push the price to have less loss or go back higher