The selected stocks are all unique names, low liquidity, not too familiar in the market but the businesses have stable profits, regular annual dividends, suitable for long-term holding strategy.
In the Vietnamese stock market, there are many "big-money" individuals with assets of hundreds, even trillions. Besides business leaders, the rest are simply financial investors. Some names are famous in the investment world and on forums, but others have more mysterious backgrounds and do not have much information on the market.
Each individual has a different investment style, but most famous "sharks" such as Hung Gimiko, A7 (investor since 1970), Nguyen Van Nghia (former Prime boss),... often choose familiar stocks. Has high liquidity to be able to spend large amounts of money.
Meanwhile, the mysterious "big guy" Le Xuan Luong is a special case when he holds all unique stocks with very low liquidity, mainly only from a few thousand to tens of thousands of units/session, such as Agricultural Products. Yen Bai (CAP), Hanoi Education Investment (EID), Hanoi Battery (PHN), Viet Tri Paper (GVT), Viet Tri Chemical (HVT).
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Looking at the stock portfolio in hand, one can immediately see that the investment philosophy that Mr. Luong pursues is "eat well, wear long". The selected names are all stocks of manufacturing enterprises with stable profits and regular annual dividends, suitable for a long-term holding strategy rather than speculative speculation.
Since listing on the stock exchange, CAP, EID, PHN, GVT, and HVT have not forgotten to pay cash dividends to shareholders, some with high rates of over 50%. Thanks to that, Mr. Luong has "pocketed" tens of billions of dong from dividends of these businesses even though he has only been a major shareholder for the past few years.
Business is stable, dividends are steady, and the stocks in Mr. Luong's portfolio also go up steadily. The most prominent among them is CAP - one of the strongest growing stocks on the stock market in the past decade. Although he only became a major shareholder in August 2021, Mr. Luong's investment has increased 3.3 times in less than 3 years.
The investment in HVT also increased by the same amount while EID, PHN, and GVT all increased by tens of percent since Mr. Luong became a major shareholder. Thanks to that, the assets on the stock exchange of this "big guy" have increased rapidly in recent years. According to estimates, the shares in the hands of Mr. Luong and related people currently have a market value of nearly 250 billion VND.
Reality shows that the dividend investment strategy is not only attractive to individual investors but also to organizations. The clearest evidence is that the leading DC Business Investment Fund (DC Blue Chip Fund, DCBC) of Dragon Capital has also changed its investment objective to focus on regular income from interest and dividends instead of businesses. leading industries listed on the stock exchange as before.
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Basically, cash dividends with a high and regular rate partly show the health of the business. The dividend policy is maintained regularly on the basis of "profitable, profitable" business. Stable profits, even growing year by year, will also be factors that push stocks in the market up. Therefore, long-term investors can "sleep high" and enjoy compound interest by holding stocks with "abundant" annual dividends.
In fact, finding stocks like the above is not too difficult, but persistently holding and pursuing value investing for a long time is not simple. It must be emphasized that "holding" stocks with low liquidity will sometimes make investors feel "boring", especially during periods of strong market growth with active trading. Therefore, investors need to clearly define their goals right from the start to have an appropriate strategy.
