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he re-tabling of Budget 2023 recently has seen Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announcing the proposal to introduce capital gains tax (CGT) on the disposal of non-listed shares from 2024 onwards. The introduction of CGT could be a sign that the government may introduce more taxes on capital items in the future. But for now, retail shareholders can breathe a sigh of relief as there is no CGT on the disposal of publicly listed shares.

There have been many principles and practices in investing over the past decades. However, there is only one philosophy that can bring reliable and sustainable returns over a long period of time. It is value investing.

Value investing is an investment philosophy first introduced by Benjamin Graham in 1934 and popularised by Warren Buffett, arguably Graham’s most successful disciple. Buffett’s company, Berkshire Hathaway, has achieved a 19.8% compounded annual gain in market value for 58 years! There are other value investors with 20 to 40 years of successful records.

They say that you should never put all your eggs in one basket. And that diversification is the answer to spread your risk. And there is truth in the saying. What is often not emphasized enough is the risk of over-diversification and the perils it brings – the risk of being ‘a jack of all trades but a master of none’.