Successful investment in the long term always emphasizes consistency, patience, and strong discipline. Industry experts Adjie Wicaksana, a Partner at HITS Investment, and Parahita Irawan, Founder of Investasi Jalanan, introduced the eternal value investment philosophy during a seminar entitled “How to Be a Smart Investor” at the Freeport Building, SBM ITB, on Saturday (18/11).
This philosophy centers on perceiving stocks as business entities, exploiting market fluctuations to obtain profitable returns, and ensuring a ‘margin of safety’ in investments. This methodology has stood the test of time and is the basis of modern investment strategies.
The ITB MBA Student Association (ASOMBA ITB) organized the seminar in collaboration with the SBM ITB. This event marks an important milestone in financial education for young investors.
Parahita Irawan guides investors on investing in “great companies.” These companies are characterized by their ‘Moat,’ a sustainable competitive advantage that includes intangible assets, network economics, cost efficiency, and strong customer retention. Irawan outlined the characteristics of these companies, namely consistent and increasing profitability, conservative debt management, high Return on Equity (ROE), ability to reinvest profits effectively, and ability to adjust product prices in line with inflation.
Meanwhile, Adjie Wicaksana mentioned that, in May 2023, Indonesia’s investor base in the capital market jumped to more than 11 million. It is driven mainly by investors under 40 years old. This demographic shift underscores young people’s growing interest in financial markets and investments. Wicaksana emphasized that the best time to start investing is “now” and advocates a proactive approach to learning and investing rather than waiting for the right moment.
Wicaksana also shared valuable advice on evaluating investment opportunities. Key factors to consider include an analysis of a company’s financial portfolio, future projections, sustainability practices, cash flow, and management competency. Understanding these elements can help investors make informed decisions and identify companies with long-term growth potential.
