Prospect of Malaysia is good

Some say Malaysia is a small market. With urbanisation going on and with the focus shifting to relatively undeveloped East Malaysia, there is still many opportunities for local company to focus on. For the West Malaysia, focus now is on East Coast where there will be highway linking Johor Pengerang oil hub to Pahang being planned to build. Just like few decades ago when North South highway opened, this will create a lot of opportunities, with the creation of and expansion of many currently small town. Many jobs will be created and income will be rise. Then many houses and retail shop will be built up. Small town will then reinforce capital city like KL to greater height, as many business headquarter in KL will reap the bigger profit and also, many more people from the small town will have access to KL better job opportunities.

Malaysia is bless with its center location of South East Asia and its well developed resources.
Malaysian is good at making great plan and have a plenty of great business people with great business acumen. Prospect is looking good. Now it depend on the government execution and reform to make Malaysia the center of South East Asia.

How to identify good long term investment

In investment portfolio, I think we need to have a combination of long term bet, arbitrage bet, company or industry revaluation bet, undervalue with huge upside potential bet, etc. Basically long term bet is hard to come by as well known company's valuation is usually already very expensive and hard to call it fair, and potentially good long term bet is hard to identify in our naked eyes.

To identify potential long term bet, i think 1 of the way is to start with arbitrage bet, undervalue company bet, good company in downturn industry bet, solid foundation company that kept on downgraded by analyst or investor bet, small medium growth company bet that investor have doubt with its growth sustainability. Of course the company has to be financially sustainable and have good management in place. As time goes by, those bets might eventually become our long term bet if things turn out favourably. If it turn out bad, just sell it as we know it is just a bet. As we keep on our betting practise, our skill of betting improve overtime.

Perception is hard to change

It is human nature that perception is hard to change. Things we have been hold on to so long we cannot just let go instantly. For example, a man who done something dishonest act and lost his friends' trust, he will be struggle to gain back the trust although he changed and doing everthing honestly since then. Similarly, a transitional CEO especially from a legendary founder will have difficulty to prove his ability and gain trust of investment community although he is leading the company well or even better in his own style.

However, time will tell. If the change is towards better and it carry consistency, sooner or later people will realize the value and accept it with open arms. And once people accept it, their perception changed and they accept it long term.