Lu Henghong, “The Stock King” aka Warren Buffet


Jakarta, duniafintech.com – Among stock investors in Indonesia, the name Lo Kheng Hong may be familiar. Lu Kheng Hong even got the nickname Warren BuffettIndonesian.

Because he is a very rich billionaire without having a boss, employees or office like a businessman in general.

Some speculation says that Lo Kheng Hong’s total wealth from equity investments is around Rs 2 trillion. The numbers are so impressive that they make him a very inspiring figure in today’s stock investing circles.

Profile and personal life of Lu Kheng Hong

Lu Kheng Hong was born in Pontianak, West Kalimantan, on February 20, 1959 and is now 63 years old.

At this age who was no longer young, Lu Kheng Hong had gone through life’s ups and downs to make him as successful as he is today.

Luo Xinghong was not born into a wealthy family, he even has to live in a 4 x 10m house often affected by floods with other family members.

He couldn’t even get into college right after he graduated from high school due to limited funds.

Judging from various sources, this is what makes him compelled to work at Overseas Express Bank (OEB) as a Administrative Officer. After working in the bank and raising funds for tuition fees, Lo Kheng Hong was finally able to continue his studies at the National University of Jakarta by majoring in English literature when he was 20 years old.

However, after 10 years in business, he decided to resign from Overseas Express Bank (OEB) and moved to Bank Ekonomi in 1990. At the age of 30, Lo Kheng Hong started trying his hand at entering the capital market industry.

The first stock he bought was PT Gajah Surya Multi Finance Tbk. When he was still an investor, Lo Kheng Hong had many failures. He even suffered a loss until the remaining wealth was only about 15 percent.

Lu Kheng Hong

Inspired by Warren Buffet

But it didn’t stop there, Lo Kheng Hong didn’t want to give up and continued to learn how to invest in stocks properly.

He often even reads Warren Buffett’s books on stocks to understand the direction of the capital market, including issued stocks with bright prospects.

After 6 years working at Bank Ekonomi, Lo Kheng Hong decided to resign in order to focus on investing in stocks. His wealth increased from investing in stocks as three stocks of PT Multibreeder Adirama Indonesia Tbk, PT Panin Financial Tbk and PT Rig Tenders Indonesia Tbk were the most profitable for him.

Despite being rich, Lo Kheng Hong still lives in simplicity today. This was demonstrated when he was reluctant to change a Volvo brand car that had been cherished for more than 10 years into a more luxurious one.

The story of the beginning of investing in stocks

Lo Kheng Hong must have been clever in dividing his time between work and study at this time. However, there is one thing he never forgets, which is to save and simply live.

Economic constraints didn’t make him discouraged, not to mention his desperate quest to change fate into a successful person. He began allocating his salary to stock investments.

Little by little collect this money, and then buy shares of public companies or issuers in the capital market. At the time he was 30 years old, and this experience was different from that of Warren Buffett, who started entering the capital market to buy stocks when he was 11 years old.

Read also: How to invest in stocks for beginners, here are the simple steps

His name was only investing in stocks, instead of making a profit, Lo Kheng Hong actually lost. At first he had losses. He still remembers that his first stock was PT Gajah Surya Multi Finance Tbk. LKH bought it when the issuer got an initial public offering (IPO) in 1989.

However, due to the low share price, LKH was forced to sell the shares at a lower price than when they were bought. So he lost. He failed once, and Indonesia did not make Warren Buffett give up. He seriously studies and reads the trend of the capital market, including the stocks of issuers with bright prospects.

Lo Kheng Hong quits business and focuses on investment

Working for more than 10 years at OEB, he actually did not succeed in raising Lo Kheng Hong to a higher position. Until finally, he moved to Ekonomi Bank in 1990. After working for a year, LKH was appointed as a branch manager in the bank. This means an increase for him. If the salary increases, it means that more money can be allocated to him to invest in stocks.

Time passes quickly, and after 6 years of working at Ekonomi Bank, Lo Kheng Hong decided to stop working in 1996. Then he quit his job because he wanted to focus on investing in stocks.

Lo Kheng Hong has more and more time to review the stock market, after leaving his job as an office worker. He continues to learn, enriching himself with various information about stocks and the industry of domestic and foreign capital market.

As a result, he became better at playing stocks. It is characterized by an increase or increase in assets, profits or wealth.

Some of the most profitable stocks in LKH include MBAI, PNLF and RIGS. MBAI is the issuer code of PT Multibreeder Adirama Indonesia Tbk, the second largest chicken farming company in Indonesia.

The beginning of the story, in 2005, he studied the ins and outs of the company and realized that the company’s value and MBAI’s share price could not be compared.

Read also: let’s learn! These are important tips and the right way to invest in stocks

The quoted share price is very cheap for an MBAI-class company. However, not many people were aware of this and it was Luo Xinghong who saw the possibility.

Lo Kheng Hong then purchased MBAI shares for IDR 250 per share in 2005 and sold them at IDR 31,500 per share in 2011. This means that out of all these purchases (8.28% of the total MBAI shares in the market), LKH got a profit that jumped 12,500% or 126 times over the initial price.

The next stock that led LKH to become a billionaire, was PNLF. Issuer token for PT Panin Financial Tbk, which he bought when it was still priced at Rs 100 per share.

At that time, this man who loves to research potential stocks has bought up to 850 million shares or the equivalent of 85 billion rupees. After 1.5 years, LKH sold shares at 2.6 times the initial price. Profit 160% at IDR 260 per share. Total sales amounted to IDR 221 billion, so LKH made a profit of around IDR 136 billion.

The third stake, RIGS is the issuer code for PT Rig Tenders Indonesia Tbk, a shipping company in Indonesia. He bought the shares for Rs 800 per share and then sold them for Rs 1,350 per share in less than a year. These three stocks are just a few examples, while LKH collects a lot of potential stocks that can give it more profit.

Lo Kheng Hong lives in simplicity

Despite having a fortune of trillions of rupees, Luo Henghong’s lifestyle had not changed. Prefer to live in simplicity, not luxury and glamor.

For example, the automobile business. Although he can buy luxury ride-on cars, like a Porsche or a Lamborghini, Lo Kheng Hong remains loyal to riding an old Volvo. I’ve had it for over 10 years.

In his opinion, luxury goods, such as cars according to him, do not need to keep buying because the price will shrink. It does not fit his understanding as an investor.

This guy who has an RTI (Reading, Thinking, Investing) routine loves to travel. Once a year, Lo Kheng Hong will take a long vacation, about two weeks to a month to various places for sightseeing and just enjoying his life.

So far, Lo Kheng Hong is still investing in stocks. Something he would love a lot for the rest of his life. As his current fortune, he admitted, is enough to finance him for the rest of his life.

This is the profile of Lo Kheng Hong, the father of Indonesian stocks, which can be an inspiration for you. I hope this information is useful.

Read also: Don’t be mistaken, here’s the difference between cryptocurrencies and stocks

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Author: Contributor / Shuhada Banji A



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