Many reliable investors have been born in various countries. This side hustle can even make them billionaires in their country or even the world. In Indonesia, there is also someone who has become a stock billionaire so that it is recorded in the history of the Indonesian stock world. The billionaire is Lo Kheng Hong. This time, we will discuss the biography of Lo Kheng Hong himself.

Raih Komisi Sekarang

Lo Kheng Hong is an individual investor from Indonesia who has reaped many profits up to trillions to date. Known as Waren Buffet, who is an investor with so much expertise in the field of stock investment. For more details about who Lo Kheng Hong is, you can read the article below. Before reading the detailed discussion below, you can also download the GIC Mobile application, both on the Google Play Store and Apps Store.

Lo Kheng Hong Bio

Lo Kheng Hong is a person who was born in Jakarta on February 20, 1959. Lo Kheng Hong was born as the eldest or eldest of three children in a family that can be said to be simple. His father is from the city of Pontianak and has migrated to Jakarta. When he was a child, LKH had experienced a difficult life, with a narrow house in Jakarta measuring only 4 x 10 meters. However, this difficult life does not rule out the possibility for him to achieve success. In fact, until 2012 it has been recorded that this LKH has assets of 2.5 trillion. Lo Kheng Hong even started trying the world of investment when he was 30 years old. If this LKH is referred to as Warren Buffet Indonesia, then the original Warren Buffet has known the world of stock investment since he was 11 years old. The first stock he bought was PT. Gajah Surya Finance Tbk at the time when the company was conducting its initial public offering or IPO, in 1989.

Lo Kheng Hong Biography

Despite his difficult life, Lo Kheng Hong still prioritizes education. This is proven by the enthusiasm in pursuing knowledge during college. In 1979, he began to register for evening lectures in the Department of English Literature at the National University, Jakarta. When he was in college, LKH also continued to work as an administrative employee at PT Overseas Express Bank (OEB). In 1989, Lo Kheng Hong had started his career in the world of stocks. At the time, he was 30 years old. After a year of working in the world of stocks, he then moved to work at an Economic Bank. While there, he worked and served in the marketing department. After a year later, he has been promoted to become a branch head where he works. LKH is a hard worker. It is evident in his history when working. For just one year, he has been able to become a branch head at Bank Ekonomi. But after working for 17 years, he decided to quit working at the bank and chose to stay focused on becoming a stock investor. Lo Kheng Hong has indeed quit his job at the bank, but he can use the time he has to do useful things or invest in himself such as reading, thinking, and investing. These three activities are commonly referred to as RTI (reading, thinking, investing). LKH will read 4 newspapers a day as well as the next day, he will also read the company's financial statements and statistical data of a capital market. In addition, Lo Kheng Hong also regularly travels abroad. Within a year, Lo Kheng Hong has traveled abroad at least 2 times. Until 2012, Lo Kheng Hong has managed the stock market of around 30 types of stocks. He has allocated almost all of his assets to make investments. In fact, he only left 15% of his assets for emergency funds. Among all the stocks that LKH has been engaged in, there are two stocks that are famous for giving him huge profits. These stocks are UNTR (PT United Tractor Tbk) and also MBAI (PT Multibreeder Adirama Indonesia Tbk). At that time, Lo Kheng Hong bought UNTR shares in 1998. At that time there was a financial crisis. Even at that time, Lo Kheng Hong was rumored to have a big loss of up to 85%. In 1996 he finally decided to stop working so that he automatically did not have any income from anywhere. However, LKH still chooses to buy a stock when he is experiencing a big loss and also in the midst of a financial crisis. In his opinion, the financial crisis can be considered to be offering an opportunity to rise again. There have been many stocks whose prices have skyrocketed, including the UNTR share price. In fact, UNTR shares are good stocks. UNTR itself is a distributor of various Komatsu brand heavy equipment in Indonesia. At that time, Lo Kheng Hong bought a share of UNTR with all the capital he owned. At that time, UNTR's share price was IDR 250 per share. Lo Kheng Hong finally bought as many as 6 million shares of UNTR. In total, the money that Lo Kheng Hong has spent to buy UNTR shares is IDR 1.5 billion. After about six to eight years, he finally sold his shares at a price range of Rp 15,000. So, he has earned Rp 90 billion from the sale of the shares so that he can enjoy a profit of up to 5,900%. After this UNTR, Lo Kheng Hong finally reaped extraordinary profits in a stock called MBAI, which is the second largest chicken farming company in Indonesia. In 2005, LKH had bought MBAI shares which at that time had a price of Rp 250 per share. He ended up buying as many as 6.2 million shares or had a total price of IDR 1.55 billion. About six years passed, which was precisely in 2011, he finally sold the shares at an average price of Rp 31,500. From the proceeds of the sale, he was able to reap a profit of 195.8 billion rupiah. This means that he has enjoyed a profit of 12,500%.

Shares Owned by Lo Kheng Hong

Currently, Lo Kheng Hong has shares in five issuers that are equivalent to or above 5%, namely in PT Clipan Finance Indonesia Tbk (CFIN), a multifinance issuer from the Panin Group, and also shares of tire factory PT Gajah Tunggal Tbk (GJTL), as well as shares of MNC Group media issuer PT Global Mediacom Tbk (BMTR). LKH also holds shares in logistics and shipping issuer PT Mitrabahtera Segara Sejati Tbk (MBSS), and also a mining issuer PT Petrosea Tbk (PTRO), both of which are included in the Indika Energy Group. Lo Kheng Hong finally sold all of his shares of 107,012,600 shares or 6.115% to a shipping services logistics issuer, namely PT Mitrabahtera Segara Sejati Tbk (MBSS), following the sale of shares in the Indika Group. With this sale, LKH will focus on buying various stocks in other sectors that also have more attractive prospects, ranging from banking stocks, crude palm oil (CPO) plantation stocks, to coal mining and pulp stocks. Analysts for PT Indo Premier Sekuritas, there are three interesting stocks from the ownership of this LKH, namely GJTL, BMTR and MBSS. This GJTL will have a great impact on the automotive industry which has recently begun to rise, if automotive sales increase, then automatically GJTL will also be positive. Then with BMTR engaged in the media sector, it will also begin to improve, especially on television due to advertising spending that has increased, so that it is in line with economic recovery. Meanwhile, MBSS in the shipping sector will also be in line with the economic recovery process. If the economy can rise by 4%, then of course it will be positive for shipping sector companies. For stocks in banking, Lo Kheng Hong has been listed as owning financial shares, namely PT Clipan Finance Tbk (CFIN) which is a parent of PNBN or Bank Panin. As of July 31, 2021, LKH has held 205 million shares in CFIN or equivalent to 5.16%. There have been several banking giant stocks of BUKU IV, namely the Bank with a core capital of more than Rp 30 trillion, which will also be traded at a low valuation that is below the book value and is one of the main criteria for selected stocks from Lo Kheng Hong. PNBN with PBV is 0.42 times, PT Bank Danamon Tbk (BDMN) with PBV of 0.51 times, and PT Bank CIMB Niaga Tbk (BNGA) with PBV of 0.6 times. Furthermore, this duo of palm oil and coal commodities will still be targeted by LKH. The prospects for commodities for the next few periods are still bright due to sentiment from the commodity supercycle. This is because after the emergence of a crisis, the number of demand for a commodity has skyrocketed due to expansion that has begun to run again so that it cannot be offset by a stalled supply due to production that had stopped due to the pandemic so that commodity prices flew. For CPO shares themselves, previously Lo Kheng Hong had owned a palm oil issuer in PT Tunas Baru Lampung Tbk (TBLA) which currently has a PBV of 0.66 times. Previously, it had been circulated among stock market participants that LKH was one of the shareholders of TBLA, but the amount was below 5% so it was not recorded in the information disclosure. It is recorded that TBLA's shareholders as of July 31, 2021 are from PT Sungai Budi as the controller which has embraced 28.08%, then there is PT Budi Delta Swakarya which is also a controlling company with ownership of 27.18%, while the rest has been owned by public investors by 43.52%. Other companies also own treasury shares as much as 1.22%. Meanwhile, in the coal sector, it has been recorded that LKH already has one of INDY's subsidiaries, namely PT Petrosea Tbk (PTRO), which as of July 31, 2021, Lo Kheng Hong has controlled 151 million PTRO shares or equivalent to 15.013%. Finally, in the pulp and paper sector, there is not much good news until next year due to the mover sentiment that tends to be minimal. In fact, many have mentioned that this industry is an industry that has become a sunset industry, where the use of paper has begun to be reduced and even abandoned, especially on paper used to make a book because digitalization has begun to occur. However, the use of other papers such as for packaging or boxes has made the trend increase again in line with the Covid-19 pandemic case which has caused this e-commerce to be increasingly widely used. Some of the giants in this industry include PT Indah Kiat Pulp and Paper Tbk (INKP) which already has a PBV of 0.57 times and also PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) with a PBV of 0.89 times. Even LKH is no stranger to this INKP stock, which in 2017 Lo Kheng Hong also bought this stock which made him reap a considerable profit. Previously, Lo Kheng Hong was one of the shareholders of Mitrabahtera Segara Sejati with the largest percentage with the company PT Indika Energy Tbk (INDY), which is the Indika Group's business holding.

How Lo Kheng Hong Chose Stocks

There is a way that Lo Kheng Hong usually does when choosing a stock that he wants to make an investment. These methods are:

It's Never Too Late to Invest

You should not think about the age when you want to start everything, including investing. When you want to do something new, you don't do it too late. Because it's never too late to learn something that hasn't been done before.

Choose a Company with High ROE

ROE (Return of Equity) This is a term used to measure a return obtained on a company from the total equity that has been used. The higher the ROE value, the better the performance of a company can be said to be better because of its high profitability value.

Pay Attention to Corporate Governance

The next thing that must be considered is the governance of the company itself. The good and bad of a company's management order will later be seen from the financial statements and also the company's stock price itself. If the financial reports are good and the stock price is very high, then it can be assured that the company must have good governance. And vice versa. In addition, a governance of the company will also greatly determine the performance of the company in the future. Plus in the world of investment, where there are unpredictable fluctuations in stock prices.

Compare to Competitors

The market value of a stock and also the amount of profit that will be obtained by an investor can be seen from PBV or prive per book value and also PER or price earning ratio. You can use these two elements as a tool to measure the price of a company's stock, whether the stock will be overvalued or undervalued. If it's for a long-term investment, then you can choose an undervalued company. But keep in mind that this decision still requires further analysis to be able to ensure that the price will rise later.

Financial Conditions Must Be Supportive

With a capital of only IDR 100,000, you can actually also invest by buying one or two lots of shares. However, of course, the profit that will be obtained later will be very small, and even to buy a lot of shares again is not possible. Therefore, this LKH will strongly advise investors to have a supportive financial condition. At least the money is not by using other people's money or loans, let alone using money for daily needs.

Discipline, Patience, and Focus

Instruments and products from investment today have a very diverse type, ranging from stocks, commodities, bonds, there are also mutual funds, deposits, gold, and foreign exchange, to P2P Lending. You can choose any instrument as long as in each investment, you can be disciplined, patient, and also focused on carrying out the investment.

Lo Kheng Hong's Wealth

For those of you who want to find out how much of Lo Kheng Hong's wealth, then you can find out how much wealth he has through the explanation of LKH's shares below.

Saham PT Indika Energy Tbk (INDY)

Lo Kheng Hong bought this stock when coal prices plummeted in 2016. At that time, INDY shares were trading at the lowest price of IDR 106 per share. So that LKH has become the 4th largest shareholder in Indika. INDY shares are held for 2 years. At the beginning of 2018, the price of this coal rose from 50 dollars per ton to 100 dollars per ton. After that, INDY's share price immediately flew to IDR 4,550 per share or the highest price. Then, Lo Kheng Hong himself sold the shares and made a profit of 4,000% in just 2 years. 2. Shares of PT Indah Kiat Pulp and Paper Tbk (INKP) Lo Kheng Hong bought this stock in 2017 when the price of INKP shares was Rp 1,000 per share, which then rose to Rp 20 thousand per share and has been sold. Within 1.5 years, the stock made a profit of 1,900%. 3. Shares of PT United Tractor Tbk (UNTR) In 1998, Lo Kheng Hong bought UNTR shares for Rp 250 per share, which made LKH keep or be left 'sleeping' for a period of 6 years. Then he sold it at a price of Rp 15 thousand per piece. So he has made a profit of 5,900%. After knowing who Lo Kheng Hong is and also the stocks he has, as well as how to get a profit as much as Lo Kheng Hong has, you can also find other information about his biography and what teachings Lo Kheng Hong has taught as an investor. This the article is also information from GICTrade regarding "Lo Kheng Hong, an Investor Like Warren Buffet Indonesia". If you want to find other information, you can also find other info about scams, financial figures, and other economic matters, such as Robert Kiyosaki: Profile, Biodata, and Biography only on GIC Journal. You can also delve deeper into various kinds of forex trading knowledge on GICTrade, through scalping ebooks and NFP live trading.