Success Story Lo Kheng Hong The "Warren Buffet Indonesia"

Lo Kheng Hong is a well-known figure among investors and stock traders who earned the nickname "Warren Buffet Indonesia". What are the risks in the world of capital markets? How did Lo Kheng Hong get to his now financially free position by investing in stocks? Let's see the story.

The "Warren Buffet Indonesia"

"Warren Buffet Indonesia", thus nicknamed Lo Kheng Hong in Indonesia stock exchange. The nickname was earned for his success on the stock market by studying Warren Buffet's investment strategy, and also like Warren Buffet, Lo Kheng Hong was a successful financial freedom man by just investing in stocks. Just like Warren Buffet, Lo Kheng Hong prefers to be a long-term investor rather than a short-term investor or a trader.

Lo Kheng Hong is a value investor who can be said to be successful. Even at the age of 58, he was still active in stock investing and did not even think of it to stop. Even up to 2012, he is known to have assets worth Rp2, 5 trillion shares. The story of his success as a stock investor can certainly be a learning for others who want to invest in stocks.

The Early Days of Life

Lo Kheng Hong Born in Jakarta, February 20, 1959. He was born as the eldest of 3 brothers in a simple family. His father came from Pontianak who migrated to Jakarta. In the early days of his life, Lo Kheng Hong was not as lucky as most people. The family where Lo Kheng Hong grew up may be somewhat mediocre or even less economically.

The house he lived in was only 4 × 10 meters in size, with no ceiling and only a roof and a wall made of planks. His house is located half a meter below the highway and is always exposed to flooding because it can not afford to renovate the house and also financial limitations.

Start Working at the Bank With Lecture Night

In 1979, after graduating from high school, he was not able to continue to university, except when working to finance his own college. Due to this, Lo Kheng Hong attempted to apply for a job at the Bank and was eventually accepted as an administrative officer at PT Overseas Express Bank (OEB).

As an administrative officer, Lo Kheng Hong certainly does not have a large salary, but with a modest salary, he is able to live frugally until he can start at night while still working, to be able to finance his own college until graduation. Lo Kheng Hong still remembers well at college, the entrance fee of the university at that time only Rp50.000, and the tuition per month is only Rp10.000.
At his job as a clerk, Lo Kheng Hong often copies letters such as BPKB, home letters, credit guarantees, invoices, receipts and other letters every day, so he finally understands the financial system at the bank. He also after getting a salary, is often saved and saved to Deposit. Unfortunately, after he worked at a bank that did not expand, so after 11 years of work, his rank is still intact as a clerk with a salary of what it is.

Get to Know Shares

In 1989, Lo Kheng Hong began to get acquainted with the world of stock investments and capital markets. He started buying shares at age 30. When compared to Warren Buffett, Lo Kheng Hong arguably lose the age, because Warren Buffett started the stock at the age of 11 years. Capital investment is limited because it was still working as a clerk in the bank administrative, and a small salary.

For Lo Kheng Hong, it is not a problem because from the beginning his intention was not to be exactly like Warren Buffet. Lo Kheng Hong was very disciplined with his money so he could live frugally and still have the remaining salary to buy shares. This is new to him because he has worked for decades but he never ran a salary because the company did not make significant expansions.

Lo Kheng Hong's excess is that he wants to save money to invest. The money he has a little he immediately bought shares. If someone else has money to buy consumer goods first, then he saves some money first, it's just the form of stock.

At that time before, he was tempted to buy IPO shares because Capital Gain shares a large IPO, he for example at that time there was shares of IPOs sold at the price of Rp7.250, not long then up to Rp35.000. The first stock he bought was PT Gajah Surya Multi Finance's stock at the IPO (Initial Public Offering or Initial Public Offering). Lo Kheng Hong is willing to queue long to get this stock. But after the listing instead of rising, the stock price actually dropped and Lo Kheng Hong was forced to sell the loss.

It did not discourage Lo Kheng Hong's interest to keep investing in stocks. He did not give up and was moved to be more diligent in studying stock investments by self-taught, and read many books on Warren Buffet's investment principles and strategies. Up to now, Lo Kheng Hong has collected Warren Buffet books for up to 40 books or more, of which books have been read for 4-5 times.

Moving Work While Keeping Stock Investing

In 1990, many new Banks opened and expanded. Lo Kheng Hong also decided to move to work. He was accepted as a marketing staff member at Bank Ekonomi. This year Lo Kheng Hong got a significant salary increase, from Rp300,000 per month to Rp900,000 (up 200%). Lo Kheng Hong actively hooked his old customers to the new bank, and after a year of work, he was appointed head of the branch with a decent salary increase.

Lo Kheng Hong did not become extravagant with the salary increase he received, and his life was still frugal. The salary he received was still set aside to buy the stock, until finally in 1996, exactly 17 years he worked, he decided to stop in order to focus on being a stock investor. He dared to do this because he got a good profit from the stock investing, and he already has enough experience for 7 years in the stock market.

Living Savings in Financial Planning Tips Lo Kheng Hong

In his daily life, since the first Lo Kheng Hong lives very sparingly so still have the funds to buy shares. He is only in the minicab 700cc vanished car, which is cheap. The principle he adopted in choosing a car is: "Buy a car that is worth the motorcycle, the important way forward".

If tempted to buy a good car, then an investor will not have enough funds to invest shares. Lo Kheng Hong also acknowledged how unhappy he was in the car he bought, but despite his poor life, Lo Kheng Hong realized that he was postponing the pleasure of achieving something big in the future. With practice to delay the pleasure. Over time it becomes a habit or lifestyle. What can be learned here is, one important step to achieve financial success is to learn to enjoy the delay of enjoyment.

Lo Kheng Hong's Wrap on Stock Investments

Lo Kheng Hong is known to almost allocate all of its assets in the capital market, leaving only 15% alone as an emergency fund. Why Shares become Lo Kheng Hong's choice in stock investing? Before discussing the Fundamental Analysis Tips, let's understand the point of view in investing in stocks.

There are at least 3 reasons mentioned by Lo Kheng Hong, why is he interested in investing stock in the capital market:

-The Capital Market has the real value of wealth assets.
-Open companies in the capital market offer products for the daily life of the community.
-Investing in the capital markets promises huge profits.