Tips for Investing in the Capital Market during the Covid-19 Pandemic a la Lo Kheng Hong

JAKARTA, KOMPAS.com – The conditions of the Covid-19 pandemic have indeed made some investors hesitate to invest in the capital market. Uncertain conditions make the volatility that occurs quite high and cause concern.

One of the most successful capital market investors Lo Kheng Hong said that the current condition with a cheap valuation is the right time to invest in stocks. He said this could be used as a momentum to get high yields in the future, when conditions begin to stabilize.

“Buy (stocks) during a pandemic, because during this pandemic the stock price fell. Of course it must be a good and cheap company. “After the pandemic is over and vaccines begin to be distributed, the share price will also increase,” he said in a discussion at the Capital Market Summit & Expo 2020, Saturday (24/10/2020).

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On this occasion, Lo Kheng Hong said, his flagship sector is the commodity sector. According to him, the commodity sector is the fastest sector bullish when the pandemic conditions started to subside.

“Maybe first in the commodity sector, then banking, and I think this pandemic is not that bad for public companies,” he said.

Lo Kheng Hong said he had benefited a lot from the commodities sector since before the pandemic. He said investment in the commodity sector was very profitable because of the potential gains capital gain which is quite large compared to other sectors.

“I get a lot of profit from the commodity sector, if I buy other sectors, I won’t be able to capital gain which is that great, of course I like the commodity (sector), “he explained.

On the other hand, investors must also be observant when selling their shares. Lo Kheng Hong said, patience in waiting for expensive valuations is the key to successfully obtaining high returns. He said he was lucky when he held Indika Energy shares whose price reversed from Rp. 100 to Rp. 4,000 within 2 years.

“I bought Indah Kiat Pulp & Paper and it also increased from Rp. 1,000 to Rp. 20,000, it only took 2.5 years. That in my opinion is very fast. I only have the patience to wait for the stock price to go up, when I don’t know the increase, ”he explained.

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