You can contact the author (Teguh Hidayat) by email, teguh.idx@gmail.com. The author live in Jakarta, Indonesia.

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Investment Opportunity from ‘Value Gap’ – 2

In previous articles we have discussed that the best time to buy shares of Berkshire Hathaway is when the price dropped so deep in a given year until its value gap becomes positive (you can read the previous article here). And now, this year of 2015 is the first time that Jakarta Composite Index (JCI) dropped significantly since 2008, that in year to date (until September, 10) the stock index has dropped 16.1% (While in 2013, the stock index fell only 1%). So, although some stocks may still rise, but most other stocks fell significantly compared to their position at the beginning of the year, even if the equity value of the company is actually still rising. In this condition, some stocks then create a positive ‘value gap’.

Investment Opportunity from ‘Value Gap’

Since taken over by Warren Buffett in 1964, Berkshire Hathaway (BRK) has made investment gain of a total of 1,826,163% for anyone who holds its stock in the last 50 years (until 2014). This means that if you buy BRK for US$ 1,000 in 1964 and still holding it until the end of 2014, then by ignoring the factor of inflation, your investment is now worth.. US$ 18.3 million.

Bumi Resources: Analysis of Debt Restructuring

Last September, the management of Bumi Resources (BUMI), the largest mining company in the Indonesia, announced the company’s latest proposal of debt restructuring. As of August 31, 2015, the outstanding debt of BUMI stood at nearly US$ 4 billion, and most of them will mature in less than a year. Given the poor condition of mining sector, including the price of coal remains low in the last few years, the company had no choice but to propose the options of debt restructuring to its creditors.

Investing is Just Like Mountaineering

Last weekend I with some friends went to climb a mountain, in this case Mount Salak in Sukabumi/Bogor, West Java, which has an altitude of 2,211 meters above the sea level. In contrast to other leisure activities which are relaxing, mountaineering requires physical endurance so I had to exercise regularly for at least a week before the ascent. Therefore, since the last ascent about two or three years ago, only last weekend I had the time to do it again. And after cramps, rain, cold, and thirsty for two days and one night, thank God we successfully reached the summit, and also successfully returned home.

The Secret Method of Investment

On Thursday, October 1, I met face to face with an investor named Joel Cohen, who works for Mitimco, an asset management company in the US with AUM of approximately US$ 19 billion. Although I’ve had previously met several investors from abroad (where they came to Jakarta), but this is my first time to meet someone who represents a large institution. So for me, it's a brand new experience.