Short Biography of Lo Kheng Hong, Indonesian Stock Investor

Known as the Warren Buffet of Indonesia, Lo Kheng Hong lives a life of wealth without being tied to anything. Without the need to have employees, nor be in the office.

He proved to be a wealthy figure does not need to work so hard to drain the brain and energy for hours. Lo Kheng Hong just sat quietly relaxing at home but lots of money poured into his account.

To get to Lo Kheng Hong's position, of course, you need to take various steps that are not easy. The following brief biography summarizes his story up to this point.

Youth Full of Struggle

Billionaire Warren Buffett was born into a wealthy family. At that time, his father was a member of the United States House of Representatives (US). During Crazy Rich Indonesia, Lo Ken Hong was born to a disadvantaged family. LKH's childhood was very sad because he had to live in a tenement house.

After graduating from high school (SMA), LKH does not necessarily continue their education to college for financial reasons. The man who was born on February 20, 1959 was forced to work as an administrative employee at the Overseas Express Bank (OEB).

Lo Kheng Hong was 20 years old when he attended the National University majoring in English Literature. He attends evening classes. At that time, university entrance fees were Rp. 50 thousand and tuition fees of Rp. 10 thousand. It's a small nominal now, but huge at the time.

Starting Stock Investment

Lo Kheng Hong had to divide his time wisely between work and study. There was one thing he never forgot. Financial limitations did not dampen his enthusiasm, let alone trying desperately to turn his luck into a successful person. LKH began to set aside salaries for stock investment.

Raise funds from time to time to buy shares of public companies or issuers in the capital market. At that time he was 30 years old. This experience is different from that of Warren Buffett, who entered the stock market and started buying stocks at the age of 11.

His name just started investing in stocks, and instead of making a profit, Lo Kheng Hong actually lost. First he suffered a victim. He still remembers that his first share was PT Gajah Surya Multi Finance Tbk. Lo Kheng Hong bought it when the issuer made an initial public offering (IPO) in 1989.

However, as the stock price fell, Lo Kheng Hong was forced to sell his shares at a lower price than when they bought them. That's why he lost. This Indonesian Warren Buffett doesn't give up once he fails. He carefully studied and read the direction of the capital market, including stocks of promising issuers.

Decided to Stop Working

Even though he had worked at OEB for more than ten years, Lo Kheng Hong couldn't really give him to a higher position. Before switching to Bank Ekonomi in 1990. After one year of service, LKH was appointed as the Branch Head of the bank. That means a raise for him. A higher salary means more money to invest in stocks.

Shift to 1996, after six years at the Economic Bank, Lo Kheng Hong decided to retire. LKH quit his job because he wanted to focus on investing in stocks.

Stairs to Success

After resigning from his position as an employee, Lo Kheng Hong had more time to consider the stock market. We continue to learn and enrich various information about stocks and capital market industry at home and abroad.

As a result, LKH's equity participation is getting better. This is marked by an increase in assets, profits, and wealth.

The most profitable LKH instruments include MBAI, PNLF and RIGS. MBAI is the code for the issuer of PT Multibreeder Adirama Indonesia Tbk, the second largest poultry company in Indonesia.

The story begins in 2005 when LKH researched the company's strengths and weaknesses and found that the company's value and the share price of MBAI were not comparable.

The share price offered is considered too cheap for an MBAI class company. However, not many people realize this and LKH sees the potential.

Lo Kheng Hong bought MBAI shares at Rp 250 per share in 2005 and sold them at Rp 31.500 per share in 2011. So LKH made a 12.500% profit (8,28% of MBAI's total shares in the market) from all these purchases, or 126 times the original price.

The next stock that makes LKH a millionaire is PNLF. The code for the issuer of PT Panin Financial Tbk that he bought at that time was still Rp 100 per share. At that time, the man who liked to observe the potential of the stock bought up to 850 million shares or the equivalent of Rp 85 billion.

After 1,5 years, LKH sold the shares at 2,6 times the original price. Profit 160 at a price of Rp. 260 per share. Total turnover reached Rp 221 billion, bringing a profit of around Rp 136 billion for LKH.

Issuer code for the third share, RIGS, Indonesian shipping company PT Rig Tenders Indonesia Tbk. He bought shares for Rp800 per share and sold them for Rp1.350 per share in less than a year.

These three stocks are just one example, and LKH has amassed a large number of potential stocks that could yield higher returns.

Invest, Not Trading Stock

Many people do not know the difference between the term investment and trading. As you know, what Lo Kheng Hong is doing is investing in stocks, not trading stocks.

This is because he holds the stock for a long period of time between buying and selling. Unfortunately, many people who jump into the capital market, especially stocks, are only tempted by short-term profits. This is called trading.

According to Lo Kheng Hong, being a trader It can be stressful having to monitor stock prices on a daily or hourly basis. If the price rises enough, they will sell their shares quickly, even if the profits are not large.

A trader must also continue to monitor developments and be aware of various types of news, such as news about the company where trader have shares.

Lo Kheng Hong advised investors to think very carefully before buying company shares. One of them oversees the board that leads the company to grow or vice versa. In addition, you must be able to predict the fate of the company in the years to come.

Many Treasures Yet Simple

Despite having billions of rupiah in wealth, Lo Keng Hong's lifestyle has not changed. He prefers a simple life, not luxury. For example, the vehicle business. Even though he can afford luxury cars like Porsche and Lamborghini, Lo Keng Hong still drives a Volvo. He had it for more than ten years.

Until now, Lo Kheng Hong is still investing in stocks. Something that he loved so much for the rest of his life. Where according to his confession, his current wealth is enough to finance him for the rest of his life.

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