Thursday, 18 June 2009

Only 37 stocks in KLSE main board are suitable for long term portfolio

The latest Stock Performance Guide (2009 March Edition) was available recently. I screened for those counters based on certain criterias for possible buy and hold for the long term. Of the 603 counters in the Main Board, only 37 counters are deemed worth further research. 7 of these 37 are small-cap or mid-cap stocks.

The Bursa Malaysia is truly a dangerous play ground for the uninformed. Only a small percentage (37/603 = 6%) are possible candidates for buy and hold for the long term. Also these should be bought when they are not overpriced.

The investors in the market vary from the financial professionals to those without any knowledge on investing. Interestingly, there are some professionals who are losers in the market big time and yet there are some of these novice investors who are surprising winners. These could be accounted for by probabilities and also by certain other reasons. In general, those who are financially knowledgeable are expected and probably do better than those who are less financially knowledgeable as a group.

It behoves the investor who wishes to build a portfolio, using the buy, hold and selective selling strategy, to pick the appropriate stocks at a good bargain price.

It should be an interesting exercise to dissect why so many counters in the Bursa are not suitable for buy and hold for the long term.

1 comment:

rahsia said...

hmmm, wonder which are those 37 companies.