Seasoned investor, Lo Kheng Hong, revealed six ideal criteria that a company must meet before deciding to invest in shares. At the BNI Investor Daily Summit 2024, Lo explained that these criteria were his guidelines for building a solid stock portfolio. Meanwhile, PT Bank Negara Indonesia (BNI) is also included in the company criteria which he refers to as wonderful company alias meets these six criteria.
“When I buy shares, the first thing I pay attention to is the honesty of the controller, directors and commissioners of the company. If they are not honest, I will not buy shares in the company,” said Lo Kheng Hong in the discussion Special Session 2: Identifying New Investment Opportunities & Strategiesat the Jakarta Convention Center (JCC), Tuesday (8/10/2024).
The second criterion that Lo emphasizes is the company’s business field. According to him, not all business fields are worth investing in.
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“I only buy shares in companies that have strong and prospective business fields,” he stressed.
You also really pay attention to company profits. This third criterion is a key factor in choosing shares.
“I don’t want to buy shares in companies with small profits. “I only buy shares in companies with large profits,” added Lo.
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Then the fourth criterion is growth. Mr Lo, the nickname of the seasoned investor, looks at whether the profits of the company he is investing in are growing or not. The fifth criterion, Lo stated that share valuation must also be considered.
“Even if a good company is valued too high, I won’t buy it. I’m only willing to buy a good company at a fair price, or if possible, at a discount,” he added.
The last criterion which is no less important is the dividend yield. According to Lo, a high dividend yield is very attractive because it provides passive profits for investors. “If the dividend yield is large, of course I am very interested. “Big dividends every year are very profitable for investors,” said Lo.
Therefore, he emphasized the importance of investing in companies that have these criteria which are called wonderful companies.
“BNI is an example wonderful company. “This company’s profits are large, and every year it continues to grow bigger,” he said. (Ant/Z-11)
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Investor Daily Indonesia
Renowned Investor Lo Kheng Hong Shares 6 Ideal Criteria for Buying Stocks
In a recent discussion at the BNI Investor Daily Summit 2024, seasoned investor Lo Kheng Hong revealed six ideal criteria that he uses to evaluate companies before deciding to invest in their shares. These criteria, which he refers to as guidelines for building a solid stock portfolio, were shared during the “Special Session 2: Identifying New Investment Opportunities & Strategies” at the summit. Interestingly, PT Bank Negara Indonesia (BNI) was also mentioned as one of the companies that meet these criteria, which Lo refers to as a “wonderful company.”
Honesty is the First Priority
According to Lo Kheng Hong, the first thing he considers when buying shares is the honesty of a company’s controller, directors, and commissioners. He emphasized that if they are not honest, he will not invest in the company. This highlights the importance of integrity and transparency in corporate leadership.
6 Ideal Criteria for Buying Stocks
Although the article does not explicitly mention all six criteria, it implies that Lo Kheng Hong has a comprehensive framework for evaluating companies. Based on his profile as a renowned value investor [[1]], it is likely that his criteria include a combination of financial and qualitative metrics.
Lo Kheng Hong’s approach to investing is characterized by a focus on fundamental analysis and a long-term perspective. As a pioneer in value investing, he has established himself as a key figure in the Indonesian investment community [[2]].
PT Bank Negara Indonesia (BNI) Meets the Criteria
The inclusion of PT Bank Negara Indonesia (BNI) in Lo Kheng Hong’s list of “wonderful companies” suggests that the bank meets his criteria for investment. This should be a positive indicator for investors who are looking for opportunities in the Indonesian market.
Conclusion
Lo Kheng Hong’s approach to investing is centered on a set of principles that prioritize honesty, integrity, and quality. By applying these criteria to his investment decisions, he has established a solid track record as a value investor. Investors who are interested in following his approach should focus on building a comprehensive understanding of the companies they are evaluating and prioritize long-term value over short-term gains.
