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Saturday, 26 October 2019
iCapital.biz performance over the last 14 years

iCapital.biz was listed at the end of 2005 with a NAV of around RM 1.00.

On 24th October, 2019, its NAV was RM 3.21 and its share price on 25th October, 2019 was 2.42 per share.

Over the last 14 years, it gave 1 dividend of 9 sen per share.

Over the course of the last 14 years your investment in icapital.biz grew from $1.00 to $3.30, its compound annual growth rate, or its overall return, is 8.90%.

Share price fluctuations of iCapital.biz over the last 14 years

iCapital.biz traded at a premium to its NAV in its early years of listing. It was trading at high price of RM 2.48 in the early days of January 2008.

Its price crashed with the Global Financial Crisis. The premium to its NAV disappeared and it was trading at a huge discount to its NAV when its share price crashed to 1.06 in October 2009.

Since then, its share price has climbed upwards steadily over the years and always trading at a discount to its NAV.

On 25.10.2019, icapital.biz is priced at RM 2.42 per share.

So, who are the winners or losers in this stock?

The initial shareholders who hold onto to their shares until today from listing are obvious winners.

The buyers of this stock in and around January 2008 were obvious losers. They would have bought at very high prices and at huge premium to its NAV too.

However, for those who held onto this stock even when bought in January 2008 for the long term and who continued with a dollar cost averaging strategy over the years, they might still be winners overall.  This requires discipline and a firm investing philosophy.

Those who bought into icapital.biz from October 2008 when its price was the lowest and at any time subsequently and held till today are also winners, provided they bought below 2.42 per share.

Yes, there are obvious winners in this stock but they have to be in this stock long term and have done continuous buying of the stock over time (dollar cost averaging) when the price was obviously not too high.

Are there more winners or losers in this stock?

I believe the majority of players in the stock market are short-term traders. As traders, they are in at the time when the stock enjoys some popularity and they are out when the stock appears disfavoured.

Thus, they are likely to be in the stock at the time when the prices were high and out when the prices dropped; they bought high and sold low.

I think icapital.biz is no different from other stocks in the Bursa. Though over the long term, icapital.biz has delivered positive returns, for those who have bought and sold icapital.biz stocks over the years, on an aggregate, there were more losers than winners.

The risk in investing is not the stock.  It is the person staring back at you in the mirror:  YOURSELF.

Suggested further reading:
No One is Immune from The Party Effect or Recency Bias

Posted by investbullbear at 13:31