我投资，不代表我是个懂规划，为将来安逸深谋远虑的人。
我投资，仅仅是因为我喜欢。
我尽可能的投资，尽可能的想找资源，尽可能的找新项目。
也不知道这东西有没有尽头，到头来会为我带来些什么。
我只是向前走，顺便撒些什么东西给有缘人。
Tuesday, August 28, 2012
Friday, August 17, 2012
Money Magnet
One of the top powerful money magnet in the world belong to Warren Buffet, and his magnet is always getting bigger and bigger, stronger and stronger. It almost seems that all the extra printed money, idle money or not well utilised money will be uncontrollably sucked by his magnet into his pocket. His secret of such a strong powerful magnet is he use almost all the money sucked to him to build the magnet, left himself just enough to live.
He has this habit since he was a little child. But then his magnet was similar with all his friends similar age with him. All of them were very small, or we can say that it can hardly be seen or felt. After he read a book how to become a millionaire, he learned the ways to build the magnet. As time passed, his magnet grow stronger with the pace faster than he can imagine. Some by his genius, more by his hard work, he surpassed millionaire target in his 20s. He was obsessed by his higher and higher target set by himself, which is to roll the magnet into bigger and bigger size. In the process, he keep learning, keep thinking, learning, and finally become expert in building money magnet.
From the story, I realised that it is not about how strong the magnet one build that made one so rich, but It is how big the magnet made one so rich. Strong magnet is like the intelligent in dealing with money, how big the magnet is about how deep the money pocket is. Bigger magnet, although it is weaker, it easily can suck in more money than a strong magnet. It is because there is limit on the wisdom of a people, but no limit on the size of a magnet. It is also because bigger magnet is easier to be seen and easier to locate money. So our main target should be to build a big magnet, as time goes by, improve our financial knowledge to ultimately strengthen our magnet.
A big size of money magnet need time to build, just as a Rome is not built in a day. So, build money magnet while young/small, if you haven't start, you should build it now!
Note: Warren buffet has strong and big magnet, he has ultimate money magnet.
He has this habit since he was a little child. But then his magnet was similar with all his friends similar age with him. All of them were very small, or we can say that it can hardly be seen or felt. After he read a book how to become a millionaire, he learned the ways to build the magnet. As time passed, his magnet grow stronger with the pace faster than he can imagine. Some by his genius, more by his hard work, he surpassed millionaire target in his 20s. He was obsessed by his higher and higher target set by himself, which is to roll the magnet into bigger and bigger size. In the process, he keep learning, keep thinking, learning, and finally become expert in building money magnet.
From the story, I realised that it is not about how strong the magnet one build that made one so rich, but It is how big the magnet made one so rich. Strong magnet is like the intelligent in dealing with money, how big the magnet is about how deep the money pocket is. Bigger magnet, although it is weaker, it easily can suck in more money than a strong magnet. It is because there is limit on the wisdom of a people, but no limit on the size of a magnet. It is also because bigger magnet is easier to be seen and easier to locate money. So our main target should be to build a big magnet, as time goes by, improve our financial knowledge to ultimately strengthen our magnet.
A big size of money magnet need time to build, just as a Rome is not built in a day. So, build money magnet while young/small, if you haven't start, you should build it now!
Note: Warren buffet has strong and big magnet, he has ultimate money magnet.
Saturday, August 11, 2012
TDM berhad
A mid size growing oil palm plantation company, combine with private healthcare business, provide an excellent business diversification since oil palm plantation is a cyclical business and hospital operation is a non cyclical business. Oil palm plantation is affected by season and nature and it's earning fluctuated wildly throughout the year, while the number of patient visiting hospital is more or less very stable. These 2 businesses complement each other by smoothing out the earning fluctuation of the company. In addition, these 2 sectors are among the most promising sectors in this decade.
The rising population and reducing poverty in India and China, mainly, provide sustainable increasing demand for oil palm. Moreover, the risk of planting is higher now with the constant uncertain weather condition recently. Any bad weather will destroy the crops and reduce the supply, thus drive up the price of the crops. This risk will ensure the crop's price remain high. For healthcare industry, the population in southeast Asia is growing older, combine with the increase of population, increase of disposable income, increase of social net about healthcare, increase of awareness of healthcare as their education level increase, all of these poise well for healthcare industry in the region.
TDM, with the similar league in term of plantation land and growing prospect with other mid size plantation companies like IJM plantation, Ta Ann, TH plantation, only priced at 7 times earning whereas its competitor are all priced within the range of 10 to 15 times earning. Viewing also healthcare industry price to earning ratio of 20 to 30 times in average, although healthcare only contribute 10 to 15% of TDM's earning now, a combine price earning ratio of 7 times of TDM is ridiculously low in my view. In future, the management can always adjust the mix of the 2 businesses depending of the prospect of each sector. When a desireable mix is achieve in future, I believe the full value of the company will be unlocked.
Although TDM is a Terrenganu state own company, and people may say it contains political risk, it's successful transformation in recent years has proved the ability of its management of steering the company in correct growing path. I believe prospect is bright for TDM in years to come. And the recent plunge of earning and plunge of share price present a very good entry point and hefty margin of safety, to participate in the growth story of TDM.
NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees. I may already have positions in the above mentioned counter. The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
The rising population and reducing poverty in India and China, mainly, provide sustainable increasing demand for oil palm. Moreover, the risk of planting is higher now with the constant uncertain weather condition recently. Any bad weather will destroy the crops and reduce the supply, thus drive up the price of the crops. This risk will ensure the crop's price remain high. For healthcare industry, the population in southeast Asia is growing older, combine with the increase of population, increase of disposable income, increase of social net about healthcare, increase of awareness of healthcare as their education level increase, all of these poise well for healthcare industry in the region.
TDM, with the similar league in term of plantation land and growing prospect with other mid size plantation companies like IJM plantation, Ta Ann, TH plantation, only priced at 7 times earning whereas its competitor are all priced within the range of 10 to 15 times earning. Viewing also healthcare industry price to earning ratio of 20 to 30 times in average, although healthcare only contribute 10 to 15% of TDM's earning now, a combine price earning ratio of 7 times of TDM is ridiculously low in my view. In future, the management can always adjust the mix of the 2 businesses depending of the prospect of each sector. When a desireable mix is achieve in future, I believe the full value of the company will be unlocked.
Although TDM is a Terrenganu state own company, and people may say it contains political risk, it's successful transformation in recent years has proved the ability of its management of steering the company in correct growing path. I believe prospect is bright for TDM in years to come. And the recent plunge of earning and plunge of share price present a very good entry point and hefty margin of safety, to participate in the growth story of TDM.
NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees. I may already have positions in the above mentioned counter. The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.
Thursday, August 2, 2012
Managing personal finance is similar to managing insurance company
Recently while I am researching insurance's share, I find that we as an working individual, the flowing of money around us is very similar, or even same as an insurance company. Let me compare in head to head below:
First I want to explain briefly how an insurance company works. Insurance company receives premium through underwriting. Throughout the year there are claims coming in and insurance company has the obligation to pay. On top of that, insurance company need to spend money to run the business and spend fee and commission to feed their network of selling agency. Because of the uncertainty of how much huge the claim might be and when the claim might come, the insurance company never can be sure the premium receive in the year can cover the claims in the year (although calculated by actuaries how low the probability might be). So the insurance company will always use the surplus (after deduct claim, management expenses, fee commission, other expenses) whenever possible to invest and build investment asset and investment income. As their investment asset and income grow bigger and bigger, with their liabilities well managed, insurance company can sleep well knowing that almost every claim can be met with no worry.
Now I want to explain about the financial position of a working individual. By working, we earn a salary. Throughout the year there is unplanned spending we need to make, like travel or vacation, car break down, hospitalisation, family commitment, extra shopping, luxury buying, etc. On top of that, there are planned spending and basic need spending for our living. Because of the uncertainty of how much huge the unplanned spending and when it will come (note: growing too old also is an unplanned spending/liabilities), we always save some of our salary to cover that too. We have the choice to invest our saving in fix deposit, equity,, property, bond, unit trust etc. As our investment asset and investment income grow bigger and bigger, definitely need to be faster than the grow of liabilities, we feel more comfortable that we can sail through any of the future unexpected events when they arise with no financial worry.
So, if you feel any insurance company is in better financial condition than you or is managing their money or finance better than you, you can consider investing in that insurance company's share.
First I want to explain briefly how an insurance company works. Insurance company receives premium through underwriting. Throughout the year there are claims coming in and insurance company has the obligation to pay. On top of that, insurance company need to spend money to run the business and spend fee and commission to feed their network of selling agency. Because of the uncertainty of how much huge the claim might be and when the claim might come, the insurance company never can be sure the premium receive in the year can cover the claims in the year (although calculated by actuaries how low the probability might be). So the insurance company will always use the surplus (after deduct claim, management expenses, fee commission, other expenses) whenever possible to invest and build investment asset and investment income. As their investment asset and income grow bigger and bigger, with their liabilities well managed, insurance company can sleep well knowing that almost every claim can be met with no worry.
Now I want to explain about the financial position of a working individual. By working, we earn a salary. Throughout the year there is unplanned spending we need to make, like travel or vacation, car break down, hospitalisation, family commitment, extra shopping, luxury buying, etc. On top of that, there are planned spending and basic need spending for our living. Because of the uncertainty of how much huge the unplanned spending and when it will come (note: growing too old also is an unplanned spending/liabilities), we always save some of our salary to cover that too. We have the choice to invest our saving in fix deposit, equity,, property, bond, unit trust etc. As our investment asset and investment income grow bigger and bigger, definitely need to be faster than the grow of liabilities, we feel more comfortable that we can sail through any of the future unexpected events when they arise with no financial worry.
So, if you feel any insurance company is in better financial condition than you or is managing their money or finance better than you, you can consider investing in that insurance company's share.
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