Jakarta, Armfalcon.com – While still an employee, it turned out that the Minister of Tourism and Creative Economy Sandiaga Uno had started investing.
Unfortunately, the 1998 economic crisis had made him lose all his assets, but that’s where Sandiaga finally found a new investment strategy.
“After that (the 1998 Monetary Crisis), I will invest carefully with a conservative approach, my portfolio must be a portfolio that describes the long term, so the investment is in (strategy) ‘value investing,’ and my role model is Warren Buffett,” said Sandiaga Uno in The Cuap Cuap Cuan PodcastMay 8, 2023.
Sandiaga said that people like Warren Buffett see a stock worth buying if it has bright prospects and the current market price is below its intrinsic value.
In the podcast, Sandiaga also provides advice regarding those who are willing to invest.
The first is to be patient while conducting a comprehensive analysis through fundamental analysis.
If you have found stocks or portfolios (mutual funds) that have bright prospects, buy them right away and never wait for the price to drop, then store them in a drawer.
Sandiaga’s intention of putting it in the drawer is to be patient and not sell it in the short term, unless there is an event or a change in investment strategy.
As is known, value investing was also popularized by the famous investor Lo Kheng Hong (LKH). As for the term LKH, it refers to its hunted stocks as “Mispriced Shares.”
Some concrete evidence of the success of LKH’s value investing strategy is in PT United Tractor Tbk (UNTR), where LKH bought the shares at Rp 250 silver per share and sold them at Rp 15 thousand per share in the sixth year.
However, this does not mean that Sandiaga is completely the same as LKH when it comes to investment. There are still some differences in Sandi’s investment style with Indonesia’s Warren Buffett, here’s his review.
Sandiaga Uno is still trading and diversifying into other instruments
Trading is actually still carried out by Sandiaga, it’s just that he uses 5-10% of the total portfolio value. Meanwhile the rest is used for long-term investment.
Sandiaga also mentioned that approximately 10% of his portfolio was invested in non-stock assets, such as gold and property.
As is known, LKH is an investor who does not like gold. LKH once said that he was inspired by Buffett’s story in 2012.
In 2012, Buffett made another comparison, the gold price was US$ 1,600/troy ounce, while Berkshire’s stock price was US$ 120,000/share. And in 2019, the gold price was US$ 1,250/troy ounce and Berkshire’s share price was US$ 305,000/share.
There is no Crypto investment in Sandiaga port
“There is no crypto in my portfolio, I have the concept that whatever goes up fast (an asset whose price goes up fast), it will go down fast too. So, I’m still learning, when I was signed (asked), if I have to invest how much is the allocation for crypto? I answer a maximum of 1% of my portfolio, just for study, so if a loss doesn’t have a financial impact on our portfolio,” he added.
Sandi also explained that in investing, everyone should avoid joining in. Like someone depending on investment, then he must know exactly what they are buying.
As is known, LKH is also an investor who doesn’t like crypto assets. According to LKH, there are no underlying assets accompanying these digital assets.
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