THE stock market is a good place to build one's wealth but before one plunges into stock investing, it is important to first learn the fundamentals. If you're not willing to learn, don't even think about diving into the equity market.
These are words of wisdom from a former civil engineer turned retail investor and investment coach, K.C. Chong, who is also the author of three finance books.
His first book, The Complete Value Investing Guide That Works! and published in 2020, was an instant best-seller. The book was a comprehensive guide on the fundamentals of value investing.
A year later, his second book, The Profitable Investor – 20 Most Important Lessons For Investment Success, hit the shelves. The book came about as readers had many questions about stock investing, which prompted Chong to answer them as was promised to his readers.
His third book, The Complete Dividend Investing Guide That Works!, focused on dividend investing.
Will Chong be churning out his fourth book next year?
"Writing a book is a chore," said Chong, 68, who spends half his time in Malaysia and the other half in New Zealand following his migration there 20 years ago.
"The move to New Zealand was totally unplanned. A friend of mine, who is also my golf buddy, kept asking me to migrate and even handed me the application forms. I filled them up without much thought but to my surprise, my application was successful.
"When I first arrived in New Zealand, I thought I couldn't survive there. Everything was so different from my life in Malaysia."
Chong, who originated from Kampung Sungai Dua, Bentong, in Pahang, said he was thinking about his children's education and future when he migrated.
He has three daughters now aged 26 to 34.
When he was in Year Six, Chong's father had asked him to stop schooling and become a rubber tapper just like him.
But as fate would have it, Chong, the eldest among three brothers and three sisters, received a scholarship to study in secondary school, followed by another scholarship to study in a university.
He became a civil engineer — a career that lasted 23 years — after his graduation from Universiti Malaya.
Chong said he had relied only on tips when he started to invest in stocks, which caused him to lose money.
"But instead of giving up, I decided to learn from my mistakes. I read a lot of finance books.
"I also obtained a Master's degree in finance from the University of Massey while I was in New Zealand. I learnt that having the right investment knowledge, mindset and experience was very important, and that one needed to have patience.
"Another tip is to invest with the money that you have. Do not ever borrow money to buy stocks.
"I don't believe in looking at charts. A retail investor cannot compete with the big boys, syndicates, institutional investors, and fund managers in market timing. One should look for his own pond to fish and good companies to invest in, and not buy the shares of the company when it is too expensive.
"People want financial freedom but they are not willing to put in the effort and time to learn the right way to invest," he said.
Chong said if youths started investing in stocks when they were in their 20s and in the right way, they would be able to enjoy financial stability in their old age.
"The stock market is a good place to put your money in due to inflation and the high interest rate. It is a place to build long-term wealth," he added.
The writer was a journalist with the New Straits Times before joining a Fortune Global 500 real estate company. This article is a collaboration between the New Straits Times and Tradeview, the author of 'Once Upon A Time In Bursa'.