Value Investor Lo Kheng Hong: How I Choose the Right Stocks
Jakarta. Renowned Indonesian investor Lo Kheng Hong shared his criteria for selecting companies to invest in during the BNI Investor Daily Summit 2024 at the Jakarta Convention Center on Tuesday. Known as the "Warren Buffett of Indonesia," Lo emphasized that he focuses on company performance, not macroeconomic factors when building his portfolio.
Lo outlined six key factors he considers before making an investment
"The first thing I look at is the honesty of the company’s owners, directors, and commissioners. If they are not honest or good people, I won’t invest in the company," Lo said.
The second criterion is the nature of the business. "Some industries are good, some are bad. I only buy shares in companies with good business sectors," he explained, noting his preference for banking and commodities sectors due to their strong performance and low valuations.
The third factor Lo evaluates is the company’s profit. "I don’t buy companies with small profits. I only invest in businesses with substantial earnings," he stated.
The fourth factor is growth. "I look at whether the company’s profits are growing every year," he added, citing companies like state-owned Bank Negara Indonesia (BNI) as examples of what he calls "wonderful companies," with consistently increasing profits.
Valuation is the fifth consideration. Even if a company is strong, Lo avoids buying its shares if they are overpriced. "I only buy good companies at a reasonable price. If I can get them at a discount, even better," he said.
The final factor Lo considers is the dividend yield. "If the dividend yield is high, I’m very interested because earning big dividends every year is quite enjoyable," he noted.
Lo concluded by saying that he disregards global market trends and solely focuses on company performance. "If the company meets these six criteria, I buy," he affirmed.
Tags: Keywords:Related Articles
Stocks Climb 1% as Indonesia’s Reserves, Airport Operations Recover
Indonesian stocks rose 1% as stronger foreign reserves and airport reopenings lifted domestic market sentiment.Indonesian Stocks Rise as Budget Pressure, LPG Cuts Loom
JCI rises 0.3% as investors weigh higher reserves against tighter fiscal space and a lower 2027 energy subsidy budget.Indonesia Stocks Close Lower as Middle East Risks Offset FX Reserves
Indonesian stocks fell 0.25% as Middle East tensions and strong US jobs data weighed on sentiment despite robust foreign reserves.Indonesian Stocks Swing After Higher Open as Fed,Geopolitical Risks Loom
Indonesian stocks opened 0.24% higher but turned volatile as investors weighed Fed rate bets, US-Iran tensions and global trade risks.JCI Falls 0.47% as Weekend Profit-Taking Hits Indonesian Stocks
The JCI fell 0.47% to 6,636 on Friday as weekend profit-taking outweighed optimism over planned efficiency in the MBG budget.Gold ETFs Open New Investment Options on Indonesia Stock Exchange
Gold ETFs offer Indonesian investors a new way to gain exposure to gold prices without buying or storing physical gold.Indonesian Stocks Rise as Fed Bets and MBG Savings Lift Sentiment
Indonesian stocks opened higher Friday as Wall Street gains and expectations of MBG budget savings boosted investor sentiment.Indonesian Stocks Rally as Destry’s BI Appointment Boosts Confidence
Indonesia’s JCI jumped 1.09% on Thursday as confidence in BI’s leadership transition and improving global sentiment lifted stocks.Jakarta Stocks Open Higher as Regional Markets Gain, Bond Yields Keep Investors Cautious
Jakarta stocks opened 0.55% higher on Thursday as regional gains lifted sentiment despite concerns over rising global bond yields.Indonesian Stocks Slip as Rising US Bond Yields Rattle Markets
Indonesian stocks edged lower as a global bond sell-off lifted yields, pressuring risk assets amid renewed inflation concerns.The Latest
Court Hears of $5,000 Fee for Expedited Hajj Slots in 2023
A former Religious Affairs Ministry staffer testified that 181 pilgrims paid $5,000 each for expedited hajj departures in 2023.Five Journalists Reported Missing While Covering Anak Krakatau Eruption
Five journalists and two boat crew members are missing after losing contact while covering the Anak Krakatau eruption off Banten.Trump Tariffs Cripple EU Firms’ Confidence in ASEAN
As many as 81% of the surveyed European businesses admit that the US tariffs had weakened their confidence in ASEAN.Rupiah Strengthens to Rp17,632 on Reserve Boost
The rupiah rose 0.05% to Rp17,632 as higher foreign exchange reserves offset geopolitical risks and US inflation concerns.Stocks Climb 1% as Indonesia’s Reserves, Airport Operations Recover
Indonesian stocks rose 1% as stronger foreign reserves and airport reopenings lifted domestic market sentiment.Most Popular
