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The week of 18 August– 24 August 2016
Volume 28 Number 01
A
| Market Opinion
A.4. KLSE Conclusion
Writing a new
volume
of
i
Capital is
always a very emotional
experience for me. The
feeling is like reaching
the top of Mt Everest
or Qomolangma. After
writing
i
Capital for
27 years, it is hard to
describe the feelings.
They are intense, and
they are still as strong
as writing volume 1,
number 1 of
i
Capital.
27 years ago, I was
the only analyst, writer,
proof reader and
editor. I still remember
finishing the first issue
of
i
Capital at around
4.00 am and had to
climb the staircase
down from our office
at the 12th floor of
IGB Plaza. The lift was
already switched off.
This time, writing
Volume 28, number
1 of
i
Capital is an
even more emotional
experience. Two of
my biggest supporters
are no longer here. My
father passed away
in June 1995 and my
mother in August 2015.
Even when Capital
Dynamics was just a
one-employee company
in 1989, they were very
proud of the firm and
its founder. To them,
we were like the most
successful firm and
I was the best fund
manager.
As I write volume 28,
number 1 of
i
Capital,
we are still working very
hard to put a closure to
the decision made in the
2009 EGM of
i
Capital.
biz Berhad. In that EGM
held about 7 years ago,
empowered by the share
owners, the then Board
of Directors of
i
Capital.
biz Berhad delegated to
Capital Dynamics the task
of coming out with an
alternative to investing
in the KLSE to meet the
request of its worried
share owners. Most
people would have given
up the task after a year or
so. At Capital Dynamics,
we think differently; we
act differently. As CEO
of Capital Dynamics,
the commitment to the
many share owners in
seeking an alternative
and putting a closure to
the 2009 EGM remains
as strong as 7 years ago.
It is not just lip-service
commitment; it is not
an easy commitment.
Millions of dollars of
our own funds have
been spent in seeking
the alternatives. We
hit the wall again and
again. I have to fight
some directors again
and again in making
sure that the share
owners of
i
Capital.
biz Berhad are not
short-changed. After
all, so many of the
2009 share owners
are still share owners
today.
What defines
i
Capital ?
What defines Capital
Dynamics ? What defines
the people who work at
Capital Dynamics ? After
27 years, it is all still the
same. It is all about hard
work, focus, commitment,
dogged determination,
conviction and most of
all, integrity. 27 volumes
of
i
Capital later, we still
have subscribers who
subscribed to us 27 years
ago. Amazing.
In this special issue of
i
Capital, I would like
to share with our
subscribers what it has
been like for Capital
Dynamics and
i
Capital to walk the
Antarctica every
day for the past
27 years. There
has been no
road map, no
GPS and there
were so many
obstacles, many
of which looked
unsurmountable
in walking the
Antarctica every
day. As I said and
wrote 18 years
ago, I have been
very depressed with
the state of Malaysia.
The country has been
sliding down the
slippery road further.
Globally, there is
increasing tension
between America and
China, and countries
are divided along
confrontational lines.
Whether it is Malaysia
sliding down the path
of decline or whether
it is the possibility
of military conflict
between America
and China, such
developments are not
necessary and are
not inevitable. China’s
President Xi Jinping
was right when he said
that China and the
United States should
work hard to cultivate
a “mutual circle of
friends” instead of
exclusive cliques. He
correctly advised that
“
We should hold regular
dialogues, cooperate,
cope with various
challenges, work hard
to cultivate a mutual -
not exclusive - circle of
friends
”.
In building
i
Capital
and Capital Dynamics
into a successful global
investment firm, it is
not about making
more and more
money. If that is
our aim, we would
have gotten it
long ago. I am a
simple person,
with simple tastes.
I am not a super
wealthy person
but I have enough
to permanently
retire without
having to work so
hard anymore. In
building
i
Capital
and Capital
Dynamics into a
successful global
investment firm,
it is our mission
to make the
world a better
place. In our corporate
culture briefing to our
employees, we explain
these:
We want
to make a positive
contribution to a better
global community;
We want to build
a platform for alternate
perspectives so that
there is self-respect,
mutual respect and
better understanding
amongst the differing
communities;
At the end, we
want to help achieve
sustainable global
peace;
We have only
one planet – and a very
precious one.
In Volume 28,
number 1, we present
our special issue of
i
Capital. I hope you
find it enjoyable and
enlightening and I hope
we can convince you to
support us as we walk
the Antarctica. As I write
this special issue at
2.00 am, I am glad that
we do not have to walk
down the staircase all
the way, like in 1989.
*We want to make a positive
contribution to a better global
community.
*We want to build a platform for alternate
perspectives so that
there is self-respect,mutual respect and
better understanding.
*At the end, we want to help achieve
sustainable global peace.
*We have only one planet – and a very
precious one.
VOLUME 28, NUMBER 1
KLSE Composite Index : Market Valuation
18 Aug 2016 11 Aug 2016 20 Aug 2015
PE Ratio
18.40
18.24 16.20
Div Yield
3.01
3.04
3.50
Price/Bk Value
1.86
1.85
1.85
FBM KLCI
1,694.87 1,678.80 1,577.41
Sources: Bursa Malaysia, Capital Dynamics
My late parents, the most avid supporters of Capital Dynamics
12th floor of IGB Plaza: The first home of
Capital Dynamics
14
Capital Dynamics Sdn Bhd