Monday, October 20, 2014
Recently just attended for the 2014 Investor Day organize by icapital.biz Berhad, and I'm enjoying the last 2 session on the 12th October where Capital Dynamics MD Mr. Tan Teng Boo giving his speech and the Q&A session.
Most of the concern by the iCap shareholder and other potential shareholder is why iCap share price is trading at about 21% of it Net Asset Value (NAV) at the time of writing, and high cash holding in this close end fund which shareholder feel the cash is not fully utilized.
Actually when we see the purpose of setting up the iCap close end fund and the value investing stretching by Mr. Tan, we should be don't have much question on why the fund is keeping high level of cash.
Talking about value investing, the team of iCap is working in looking for any undervalue stock in Bursa Malaysia for a long term investment purpose, since the team found there are no such target in the market, keeping the cash should be the best option.
Traders may feel there are still such opportunity to trade in the market, as everyday market also have it top loser and top gainer, which provide the trade opportunity, but it just not the purpose of iCap.
And for a person who like to be an investor, the biggest enemy may not be the the lack of knowledge in the market, but most probably "patience" is the biggest hurdle. By looking at the iCap portfolio with all the stock entry level during that period, let say we all have the same entry level like iCap, how many of us will keep the portfolio as like iCap do? May be most of us will sell out the share with little profit cause by lack of patience.
On the day Mr. Tan show many statistic in both in global and local economy which actually giving the fact that why we should not too optimistic on the Bursa, if you as a consumer walking down to the street, and found many retailers in all kind of field telling that business is not too good and some may struggle to survive, why should we think listed company can enjoy the profit like the pass few years.
So considering the fact shown by Mr. Tan, I'm totally convince by what he had telling us on that day.