tag:blogger.com,1999:blog-28021668.post7213607416354912589..comments2023-10-12T21:12:41.408+08:00Comments on Value Investment - Musicwhiz's Journey: Musicwhizhttp://www.blogger.com/profile/10950754156386935254noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-28021668.post-76321825460371949042007-07-22T17:12:00.000+08:002007-07-22T17:12:00.000+08:00Hi Anonymous,When you say they start out with debt...Hi Anonymous,<BR/><BR/>When you say they start out with debts in the form of cash, I assume you mean that people borrow in order to generate more wealth. Yes, this does happen for businesses who need the cash in order to buy assets and inventory, and also for businesses who wish to expand by taking up bank loans.<BR/><BR/>However, for individuals, the opportunity to gear or leverage may be good or bad. On one hand, leverage gives us the chance to grow our earnings much faster, while at the same time, interest costs may also be high.<BR/><BR/>I will usually advocate saving as a way of generating wealth (through the componding effect) when one is not working yet. Just make sure you spend less than your allowance given by your parents. Financial discipline is what one requires to generate wealth; it does not take a lot of money to start with. Buffett himself was not famously rich or with any inheritance when he set out to build his wealth.<BR/><BR/>Thanks for your feedback ! :)Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-90578282272580960582007-07-22T16:21:00.000+08:002007-07-22T16:21:00.000+08:00Hi Musicwhiz,everyone wants to build more wealth ,...Hi Musicwhiz,<BR/>everyone wants to build more wealth , not debts. However you cannot build wealth without havig some cash first. That is why most people start with debts (cash) in order to create wealth.<BR/>All I want to say is it is not as straightforward as it seems.....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-25833340868982188502007-07-22T10:02:00.000+08:002007-07-22T10:02:00.000+08:00Hi fishman,You can attend the AGM as an observer, ...Hi fishman,<BR/><BR/>You can attend the AGM as an observer, but that means you can't vote or ask questions at all during the AGM proper. In other words, you must be silent.<BR/><BR/>You only need 1 lot to be able to attend. In the USA, it's even better, you can buy 1 share just to qualify to attend ! :)Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-23666014621607356162007-07-22T08:44:00.000+08:002007-07-22T08:44:00.000+08:00Hi musicwhiz, thanks for sharing your experience o...Hi musicwhiz, thanks for sharing your experience on how to "read and judge the management"! Your sharing reminded me of the article in "the edge" a couple weeks back when shareholders of CK Tang walked out of the meeting to show their displeasure of the management...At that immediate point, I already figured that Tang is not a company I'll support!<BR/><BR/>One more question, can I attend AGM/EGM when I'm not a shareholder yet? And is there a minimum? Like at least hold 10,000 shares then can attend? Or every shareholder no matter how small can attend? Thanks in advance!sm@ll.fryhttps://www.blogger.com/profile/03751757859835343020noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-43394546001757145422007-07-22T01:43:00.000+08:002007-07-22T01:43:00.000+08:00Hey Anonymous,Thanks for dropping by, appreciate i...Hey Anonymous,<BR/><BR/>Thanks for dropping by, appreciate it. Yes, do come back more often to read up on value investing. Feel free to comment also on my posts !<BR/><BR/>Have a great week !Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-21636419046941404042007-07-22T01:42:00.000+08:002007-07-22T01:42:00.000+08:00Hi SJ Reader,Yes, more cars as well as sports cars...Hi SJ Reader,<BR/><BR/>Yes, more cars as well as sports cars on the road. The Government never fails to tell us how much is being spent on cars as a sign of the country being so wealthy and prosperous ("golden age"). Businessmen who are making tons of money are buying expensive gifts for their children, in what I consider is a wanton waste of cash. These youths have no inkling of the struggle to earn more and how some people slog just to eat a decent meal.<BR/><BR/>At the risk of sounding preachy, I feel that youths these days do not fully appreciate the value of money; especially since they were born in the boom years. Today's sat papers even had a special report on boom-time grads earning more than their peers a few years back and having a good array of jobs to choose from. All this news breeds complacency and encourages extravagance, which I am very against. Let's hope they can survive the harsh lessons of a downturn or recession without suffering too badly.Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-64484496667127731722007-07-22T01:34:00.000+08:002007-07-22T01:34:00.000+08:00Hi fishman,Sorry for the late reply, just back fro...Hi fishman,<BR/><BR/>Sorry for the late reply, just back from my Myanmar trip and the Internet there....sucks !<BR/><BR/>Yes, you are right about the paradox. That's usually the way things work, as I have read of many people going bankrupt when the 1997 Asian Financial Crisis hit because they had over-leveraged during the good years of 1993-1994. Most of them became increasingly over-confident due to the bull market, and ploughed more and mroe of their hard-earned money into a rising market. Needless to say, the crash wiped out most of their life savings...sad but true. We are here now to learn from the mistakes made 10 years ago.<BR/><BR/>As for Management, one good way is to actually attend the AGM/EGM and engage them. I depend very much on factors such as tone of voice, attitude and body language to make judgements. If you have read my posting on MIIF you would realize that Management can be very evasive at times over stuff they wish to sweep under the carpet. Try it for yourself and you will see what I mean. There's nothing better than meeting the Management yourself to see if you can trust them to run the company well.Musicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-51964770320887544552007-07-21T17:09:00.000+08:002007-07-21T17:09:00.000+08:00Hi musicwhizHappen to chance on your blog. Will v...Hi musicwhiz<BR/><BR/>Happen to chance on your blog. Will visit it regularly to read more on value investing.<BR/><BR/>Thanks for sharing your info.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-32947664651146847952007-07-20T17:21:00.000+08:002007-07-20T17:21:00.000+08:00It is interesting readng the King's first point Da...It is interesting readng the King's first point Dangers in small cap sector. His Roswley falls exactly in this category. The only pc of bad news needed for Rowsley is if the 'thing' falls through. At this pt, there's no solid fundamentals to talk about.<BR/><BR/>On noticing more and more sports cars on the road. I noticed that too. Besides, more crashed cars too. I sent my car in for servicing yesterday. Couldn't help but noticed badly damaged cars (both WRX models). Both with SGV plates, i.e. very new cars. Both with very young drivers (mid twenties). Their cars were towed in by tow trucks.<BR/><BR/>SJ ReadersAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-7667787684579374162007-07-18T22:01:00.000+08:002007-07-18T22:01:00.000+08:00Good post! Personally I've like the point on "buil...Good post! <BR/><BR/>Personally I've like the point on "build wealth, not debt" a lot. Think that's a very good piece of advice. <BR/><BR/>It's quite a paradox isn't it? As economy gets better, things also get more expensive. But because people feel good, they therefore take on more debt....vicious cycle!<BR/><BR/>A question - how do you know whether the management is good? How can you read them?sm@ll.fryhttps://www.blogger.com/profile/03751757859835343020noreply@blogger.com