Tong's Portfolio of The Edge as at January 21, 2026

Analysis of Malaysian Investment Portfolio (As of Jan 21, 2026)

Portfolio Overview

• Initial Capital: RM200,000 (Oct 10, 2014)

• Current Portfolio Value: RM403,339.4 (realised profits/losses) + current holdings

• Cash Balance: RM273,139.4 (significant liquidity)

• Time Horizon: ~11.3 years

• Benchmark: FBM KLCI (down 6.8% since portfolio inception)

Key Observations

1. Outstanding Performance vs. Market

• Portfolio Outperformance: +214.3% vs. FBM KLCI (remarkable achievement)

• Absolute Growth: Portfolio more than doubled initial capital despite market decline

• Defensive Positioning: Significant cash cushion (≈40% of portfolio value based on context)

2. Stock-Specific Analysis

Strong Performers:

• United Plantations Bhd: +87.3% gain (star performer)

• Hong Leong Industries Bhd: +23.3% gain

• Malayan Banking Bhd: +14.1% gain (solid blue-chip returns)

Moderate/Neutral:

• Kim Loong Resources Bhd: +3.2% gain

• LPI Capital Bhd: +2.6% gain

Significant Loss:

• Insas Bhd – Warrants C: -96.4% loss (near-total write-off)

  • Warrants are high-risk instruments

  • Current price RM0.015 suggests possible expiration or fundamental issues

3. Portfolio Composition & Strategy

• Concentrated Holdings: Only 6 equity positions + substantial cash

• Sector Diversity: Plantations, banking, insurance, manufacturing, resources

• Quality Bias: Holdings like Maybank, LPI Capital, United Plantations are established Malaysian blue-chips

• Value Investing Traits: Focus on fundamental companies rather than speculative growth

4. Risk Management

• Large Cash Position: Provides flexibility and risk buffer

• Asymmetric Outcome: One major loss (Insas warrants) balanced by several winners

• Disciplined Approach: Holding through market cycles (2014-2026 includes COVID period)

Strengths

1. Exceptional relative performance in a declining market

2. High-quality stock selection (4 of 6 positions profitable)

3. Significant cash reserve for opportunities or protection

4. Long-term discipline (11+ year holding period)

Concerns & Considerations

1. Insas Warrants loss: Questions about warrant strategy or position sizing

2. Concentration risk: Few positions drive majority of returns

3. Market timing element: Large cash position suggests caution about current valuations

4. Limited growth stocks: Portfolio leans toward value/dividend plays

Recommendations

1. Review warrant strategy: Given near-total loss, reconsider speculative instruments

2. Consider partial profit-taking: On United Plantations (+87%) given concentrated gains

3. Deploy cash strategically: In quality companies during market weakness

4. Maintain discipline: Current approach has clearly worked well versus benchmark

5. Document rationale: For both successful picks and the Insas loss for learning

Conclusion

This portfolio demonstrates successful long-term value investing in the Malaysian market. Despite one significant loss, the overall strategy has delivered exceptional outperformance (+214% vs. KLCI) through careful stock selection, patience, and maintaining ample liquidity. The investor shows discipline holding through market cycles and resisting over-diversification. The substantial cash position suggests either caution about current market levels or preparation for new opportunities—both prudent given the 11-year investment horizon and market context.

Note: Past performance doesn't guarantee future results, but this portfolio's approach offers valuable insights into disciplined Malaysian equity investing.