iInvest.my

My Name is Bond

2012-01-17T23:54:00.000+08:00

There are three main categories of investments available to the general public; namely real estate, equities, and bonds.

For Malaysian investors, real estate is usually the most familiar. Most would have (or would like to have) investments in at least one unit of real estate. The attractiveness of real estate lies in the ease by which one can make sense of the investment. The asset is physical and there for all to see, and the returns by way of rental or resale is easy to understand. Furthermore, real estate allows leverage; meaning we can borrow money to invest in them thus stretching the power of our ringgit. This makes real estate popular.

Equities are mostly viewed as high risk investments, even though there are numerous defensive stocks available to the cautious investor. Usually, only the more adventurous investors ‘stray’ into equities. Unlike real estate, equities are not as intuitively understandable. One would need some background in accounting and finance to do a good job investing in equities.

But the focal point of today’s article is on Bonds. The average Malaysian investor does not have a very good idea on what bonds actually are. Those who do understand tend to write them off as ‘low-return’ investments no different from Fixed Deposits.

When we talk about bonds, there are a few basic points we have to know.

· A bond is a debt issued by a large company (such as Genting or YTL) which pays an agreed interest each year. For example, Genting may issue a RM 100 million bond which pays 5% per year. Investors will be invited to purchase chunks of this bond.

· The money you can make from bonds is not from the interest alone. You can buy and sell bonds.

· If the general interest rate (on bank loans and deposits) rises, bonds tend to fall in value because their interest rates have been fixed prior to the rise. The only way the bond can now offer the same interest is if you can buy it for a lower price.

· If the general interest rate falls, bond prices will rise, due to the same reasons stated above.

· It is difficult for small investors to directly invest in bonds. In the example above, small investors may find it hard to directly buy a chunk of Genting’s Rm 100 million bond.

· The best way for small investors to invest in bonds is by buying into Bond Unit Trust Funds. The Bond Fund, having accumulated large amounts from numerous small investors, will have enough money to go shopping for quality bonds.

· Bond Funds have very low service charges compared to equity funds.

· Typically, a bond fund in Malaysia would have returned you an average of 6%-8% per annum in the last ten years.

Bonds are considered as safe investments, and with returns of 6-8%, are a really viable (and in my opinion, superior) alternative to Fixed Deposits.

Bonds as an investment category are under-appreciated in Malaysia. They actually serve very well as the defensive/safe portion of your asset allocation. Most financial plans created by professional wealth planners would have bonds in them, but for the general public, there is still much room for improvement in awareness of bonds.

Andrew Chua
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We Will Be Back Soon!

2011-12-17T22:43:00.000+08:00

Dear Readers,

You may have noticed that this blog has been dormant for quite awhile, with no new posts since late October. I believe this is the longest ever hiatus in the 4 year history of this blog. I recently started on a new job, and time has been tight.

However, rest assured that we will be back soon. Come January, we will be back with a bang!

Merry Christmas in advance!

Best Rgds,
Andrew Angelo Chua.

Over Mountains and Across Oceans

2011-10-29T03:46:00.000+08:00

The Internet is Global. That has always been true and obvious. But sometimes, some stuff happens that feel a little unreal. If we are talking about well-known international sites like CNN or The Wall Street Journal, it will come as no surprise that they are read by people all over the world.

But this blog was never meant to be a CNN. It is written with a very Malaysian focus, quite close to heart and sometimes even containing direct references to my social circle. I have always known that I get international readers, but when you actually put a face to one of them... it feels unreal. It feels unreal because the lady down the street whom I see everyday has probably never read my stuff, but someone from across the world has. It feels unreal because even some of my acquaintances do not really know what I do and how I think, but someone from halfway across the world does.

I found one of our flagship articles used as a reference article by an Investment Management firm based in Ohio, USA. I wouldn't say I was surprised. Like I said, I always knew we had international readers. But it was quite an experience to actually have a 'face' to one of those far-away readers, rather than just another statistic on the internet-traffic software.

Our article on Defensive Investing, which is a perennial favorite among regulars, was featured on the website of Strategic Asset Management, Inc.

I don't know how long it will stay there, but it's nice to know that we've once made a dent in the consciousness of people located so far away :-)

Andrew Chua
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Making Investment Decisions – Hibiscus Petroleum Berhad

2011-10-28T18:41:00.000+08:00

Hibiscus Petroleum made the news these past few days following the purchase of a stake in an Oil & Gas company in the Middle East. Following the news, I received some interest from friends who started asking me about it.

Now, Hibiscus is not your regular company. It is a Special Purpose Vehicle, otherwise known as a blank-cheque company which goes public to raise funds with the intention of acquiring targeted assets and businesses. When it was listed, it owned nothing at all. It’s ‘mission’ was to use the money raised from the IPO to buy assets and businesses in the oil and gas industry. (I generally do not like this idea, that Special Purpose Vehicles can be listed on the stock market without any track record and existing business operations. Expected returns are solely based on hopes that their plans will come to fruition. More must be done to protect investors; ‘Caveat Emptor’ is NOT ENOUGH!)

With a blank-cheque company like this, it is hard to do a regular analysis using traditional approaches. Much of the valuation methods we are familiar with will not make sense here. How can we perform a five-year financial statement analysis when they have no track record to start with?

Investment Analysis shouldn’t be done in a vacuum where we analyze the investment on its own and in itself. It must always be done in relation to other available investments so we can compare the alternatives and understand our opportunity costs. With traditional stocks of normal companies, we can focus an article on the analysis of a single company because the results in terms of earnings yields, dividend yields and price/book ratio can easily be taken away and compared with other firms.

But for a ‘special’ entity like Hibiscus, a better perspective can be gained by comparing its qualities side-by-side with a traditional company. I noticed that the current price of Hibiscus is 67.5 sen, which is quite close to the price of Lonbisc (76.5 sen) which we analyzed (using traditional methods) last week. So let’s compare these two companies; hopefully the differences will help investors better understand what Hibiscus is about.

Track Record

London Biscuits has been around for years. Hibiscus is a new kid on the block. It began with a clean slate and recently purchased a stake in a business in the middle-east. The lack of a track record means we do not know what to expect. When we invest in a company like Lonbisc which has been around for some time, at least we have a good idea of how management will act in the future based on how they acted in the past. When they tell you they have an expansion plan, you can predict how it will turn out based on how previous plans turned out. Sales trends can tell you whether the company is good at capturing market share. Earnings trends can tell you about whether the company is good at giving stable returns. Dividend trends tell us about whether the company is a good custodian of cash and responsible to shareholders. But if there is no track record at all, then what do we have? Nothing. We have nothing. We know nothing about the style of the CEO. We know nothing about what earnings yield to expect. We know nothing about the ability of management to deliver. Yes, you may say that investing involves risk and luck and sometimes we have to take a bit of a gamble. But this is like going on a date with a man you’ve never met. Of course he may turn out to be a great guy. But are you really so desperate?

Management

Our discussion about track record above touched a lot on the insights provided by prior year financial results relating to the performance of management. Now, let’s look at the management teams at Lonbisc and Hibiscus.

Lonbisc is managed mainly by the Liew family, who have been in business for a long time and have entrepreneurial roots. The chairman, Dato’ Sri Liew Kuek Hin, has been in the family business since he started his career and is already 71 years old now, gaining experience and networks over the years.

Hibiscus on the other hand, is managed by a group which has mainly corporate roots as opposed to entrepreneurial ones. Can they weather the storms when they come? Maybe, but we don’t know.

Product

Lonbisc makes cakes. We can see their cakes at Giant and Tesco. We can eat their cakes and compare them to some other cake and make a judgment on the quality and value for money. The location of their real estate is mostly in Malaysia. Just by looking at the addresses, we can have an idea of the market value of those properties.

What about Hibiscus? The asset they just bought is in the Middle East. And it is in the O&G sector. It is too far for us to see, and some of us can’t even conceive of what it looks like over there. Quite a high level of proficiency in the O&G sector is required before you can make a call on this one. You need to know all sorts of things on the technicalities of oil drilling. For many of us, we have nothing to rely on other than analyst reports and stuff we Google from the Internet.

Now, please don’t get me wrong. I am not saying that Hibiscus is doomed to failure. I’m not even saying that it is not a good investment. I am just saying that if you are like me and are not well-versed in the subject of oil reserves in the Middle East, it may be better to go to Tesco and try out different cakes to find out which one tastes better.

If I am going to issue a blank-cheque to someone to make investments; it has gotta be someone I can trust, someone who’s been around a while, and doing something I can understand.

When making investment decisions, don’t get too tied up in the financial analysis of a single company. This is not an exam. It is okay if you do not have certain answers. Look at the big picture of your investment goals, and let go of whatever does not fit in nicely.

As Steve Jobs says, “To be successful, we have to say NO to 1,000 things”, even if some of those seem seductive at first.

By the way, I am also not asking you to buy Lonbisc. I do not endorse any investments. I only lay down the facts. Some facts about Lonbisc can be found in last week’s article.

Andrew Chua

(The above is an academic exercise which applies well-established securities-analysis methods and benchmarks on currently available investments. It does not constitute a recommendation to buy or sell any security. The writer does not own any shares of the above-stated company at the time of writing, and does not receive payment for the sale or research of any security. ~I lay down the facts; you make your own conclusion...)

London Biscuits – Value Buy?

2011-10-20T02:47:00.000+08:00

Last year, London Biscuits Berhad saw its share price suffer due to its corporate exercises relating to the acquisition of a controlling stake in a public listed company (TPC Plus Berhad) and disposal of an associate company (Lay Hong Berhad) within the same year. Both these companies are involved in producing chicken eggs. The rationale behind London Biscuits getting involved in the egg business is that eggs are a major ingredient of their cakes and biscuits; therefore they want to control the source of their eggs.

Sadly though, the disposal of Lay Hong and the acquisition of TPC was not seen favorably by investors. Investors did not see any sense in buying an egg company (TPC) only to sell the existing one (Lay Hong) at a loss. The share price dropped from approx Rm 1.30 in July 2010 to approx Rm 0.70 in the middle of Oct 2011.

However, on 14^th October 2011 the shares were relatively heavily traded and the price rose to Rm 0.82. As at today (19 Oct 2011), it was last done at Rm 0.765. This followed the sale of its controlling stake in TPC announced in early October 2011.

From what we can tell, London Biscuits is now free of involvement in the egg business. On the bright side, this means that the nagging problem of holding non-core operations is no longer on its plate. On the negative side, they lost their favorable access to their eggs.

Now, why did London Biscuits sell TPC after all the trouble it went through last year? And why did the share price rise after it announced the disposal of TPC? These questions cannot be easily answered based on the information available to the general public. But what we do know is that the company is now mainly involved in the food production business without other operations to distract them.

Below is the five year group financial highlights (Click Image to Enlarge):-

One thing that is clear is that the company is good at growing revenue. Sales has been on a non-stop growth trajectory for the last five years. However, profits have not been so stable, going up and down during the same period. Sales growth which does not translate to profit growth signifies some problems with costs. The raw materials, which are mostly imported, are sensitive to foreign exchange rates and fluctuating commodity prices.

But even with these problems, the shares seem to be trading quite cheaply. With earnings per share of 17 sen for 2010, this represents an earnings yield of 22% if you buy it at the last done price of 76.5 sen. But before we go further, note that earnings suffered a hit in the third financial quarter of 2011, leading to a (unaudited-as-yet) reported earnings per share of only 14 sen for the financial year ended 30 June 2011. At this level, earnings yield drops to 18%; which is still pretty good value, but further shows the uneven nature of the company’s profits.

Concluding Analysis:

The share price of the company suffered last year due to negative publicity relating to investments in egg companies which were poorly perceived. This year, there are no more egg companies in the picture. The company seemed unsure about what they really wanted from their investments in egg companies and hopefully the recent disposal of TPC means that they are ready to put the whole egg business behind them and focus on their cakes. The poor earnings in quarter 3 are a concern, even though it came back strongly in quarter 4. If the company is committed to focusing on cake and biscuit production, we can see that they are adept at growing sales and profit growth should follow once they get their costs under control and as long as there are no unprofitable investments to be written-off. Going forwards, it can be hoped that the egg troubles of the company are a thing of the past. Net asset per share is strong at approx Rm 2 per share. If dividends are proposed at 1.5 sen per share as per last year, it would represent a dividend yield of approx 2%. The recent spike in share price after the announcement of the TPC sale could indicate some positive sentiment coming back. Current earnings of 14 sen coupled with a more favorable valuation at earnings yield of, say, 15% would result in a share price of 93 sen.

Andrew Chua

RM 1 Million Retirement Fund; Are You Prepared?

2011-10-12T01:06:00.000+08:00

Had a conversation on FaceBook regarding the costs involved in creating a retirement fund... Thought it might be helpful to share it here :)

The above stated savings plan is a straight-forward savings plan which does not take into account advanced (and riskier) strategies such as leveraging (the use of loans) and active investment through stock market valuations etc. This form of saving and investing is suitable for salaried professionals and executives who do not have the time to actively manage an investment portfolio. It is automated and robotic.

Many people do not like the idea of 'taking risk' with their money by investing, but they forget that inaction equals to taking risk with the quality of your life after employment. Most would end up spending the money of frivoulous stuff anyway. Remember that your LV will not help you when you are out of the workforce. A realistic look at the true situation and planning for the future is vital.

If you haven't started, there's not much time left...

Private questions are welcomed at iInvest@hotmail.my

The Rolling Five – A Method for Short-Listing Stocks for Analysis

2011-09-26T19:18:00.000+08:00

A common problem for many budding investors is that of short-listing. There are so many listed companies and available investments around, which ones should we be looking at? We can’t possibly look at all. And yet we need a proper system to select investments for analysis. Warren Buffett said that when faced with this problem, we should probably begin with those starting with the letter ‘A’.

Of course, Buffett was a professional investor and many of us would not have the time to go through every company so closely. Personally, I prefer what I call the ‘Rolling-Five’ strategy. Using this strategy, our short-list will always consist of five counters. These will be the ones we analyze and study at any one given moment. How they get onto the short-list, we will leave to providence. It could be something that caught your eye in the news, or some promotion a company was doing at the shopping mall. Maybe you have a friend working for a listed company and she said some positive things about it. It doesn’t matter how they got onto the list. The important thing is that there should always be five. (Why five? No reason in particular… because we have five fingers on each hand perhaps…)

Once a stock gets onto this list, there are only two ways to get off it. One is if you reject it after analysis. Two is if you actually buy some of it after evaluation. Once a stock goes off, you scout for another one to take its place. Of course, those you have bought will go to another “Bought-List” which you have to follow up on, but that is another story.

Using this rolling-five system, we would find our investment analysis more manageable and less overwhelming. If your list is already full, don’t take on anymore until there is room. Otherwise your mind will be flooded with too many investment possibilities.

For example, right now my roiling-five consists of the following five; with some brief information on the evaluation of each one:-

Maybank. The biggest bank in Malaysia and a heavyweight on the KLCI index. The question now of course is whether it has been over sold during the recent fears over the European Debt Crisis. It last traded at Rm7.510 per share on 26 September 2011.

Earnings Yield (FY 2011 earnings): 8.18%

Dividend Yield (FY 2011 dividends): 7.99%

CIMB. Malaysia’s second largest bank has been under heavy selling pressure lately. Similar to Maybank, we want to know if the recent sell-down means there is now value to be found. It last traded at Rm6.700 per share on 26 September 2011.

Earnings Yield (FY 2010 earnings): 7.31%

Dividend Yield (FY 2010 dividends): 5.46%

Amway. A ‘Dividend Aristocrat’ on the mainboard of Bursa Malaysia. How much is the dividend yield now after the recent correction? Direct-selling companies are known to be resilient in hard economic times. It last traded at Rm8.500 per share on 26 September 2011.

Earnings Yield (FY 2010 earnings): 5.60%

Dividend Yield (FY 2010 dividends): 7.76% (includes distribution from retained earnings)

Padini. We featured this company a while ago on this website for its powerful market position in the middle-higher class apparel market and rising earnings trend. Will retail spending be curbed by any coming recession? What value does the company offer now? It last traded at Rm0.825 per share on 26 September 2011.

Earnings Yield (FY 2010 earnings): 11.23%

Dividend Yield (FY 2010 dividends): 5.45%

Sunreit. Another attractive Dividend Aristocrat, it distributes almost all its rental income to unit holders. It last traded at Rm1.060 per share on 26 September 2011.

Earnings Yield (FY 2011 earnings): 24.97% (includes unrealized gain on increase in value of properties)

Dividend Yield (FY 2011 distributions): 6.32%

For each of the companies on your list, you should at the very least have a copy of their latest annual report and maybe even some analyst reports which may yield additional useful information. You should give each one the attention you would give a potential husband or wife. Learn as much about them as you can; live and breathe these companies, get beneath their skin, understand their business models, and think of yourself as the owner… Because if they pass your test, that’s what you will become.

Andrew Chua

Undilah! Vote lah!

2011-09-22T20:14:00.002+08:00

Performed by:-

Tengku Razaleigh Hamzah
Afdlin Shauki
Namewee 黄明志

Movie Review; Nasi Lemak 2.0 by Namewee

2011-09-19T18:14:00.000+08:00

Facebook is both a good and horrible thing. The good thing is that it’s very good at bringing to us information which it knows we would find interesting. And it was from Namewee’s facebook page that I first learnt about his Nasi Lemak 2.0 movie project a few months ago, and also from facebook that I learnt he is doing a nation-wide tour to promote this movie. His visit to Johor Bahru fell on the 18^th of September 2011. As you can see from the above picture, I was there… Heheh…

It was only five years ago that he was just a naughty boy singing and rapping on the streets of Muar. Now, five years later, he has become a significant player in the local entertainment industry. It is no small feat to assemble the multi-racial cast of Nasi Lemak 2.0 which includes major Malaysian entertainment players like Afdlin Shauki, Adibah Noor, Dato David Arumugam, Kenny & Chee (from the famous Baba Nyonya sitcoms), Reshmonu and Miss Malaysia Nadine Ann Thomas.

No small feat too that he survived the controversy of rapping the National Anthem and be here today directing and starring in his own movie which is now showing at all cinemas around the nation. His passion for his art and beliefs is impressive.

Anyway, I had gathered a group of my friends to support his tour appearance and watch his movie. We caught him at 12pm, coming on stage and electrifying the crowd; he really has enough presence to carry a crowd. Then I bought the Nasi Lemak 2.0 ‘cookbook’ which is kind of like a picture book telling the story behind the making of the film. We diligently queued up to get on stage for him to sign the book and had a picture taken with him. Then it was time to watch the show at 1.45pm.

Talent is a difficult thing to measure and define. But it was immediately apparent when the movie started that such a thing existed. This is a guy who has never acted in a single film before; but he was able to carry the story along with the force of his personality, acting and humor. Together with the other main actors, the movie went along just fine, though there were some awkward moments when the secondary cast didn’t manage to convey whatever it was they were supposed to express.

The story is about Hero Huang, who starts out as a Chinese chauvinist but slowly finds the meaning of racial integration; learning from how the different ingredients in a packet of Nasi Lemak can be harmonized together. (Nasi Lemak as a dish is influenced by Malay, Chinese and Indian cooking)

There is enough eye candy in the movie with many top-class Malaysian beauties including a Miss Malaysia and a Malaysian Playboy Bunny. Then there is Karen Kong (who worked with Namewee on many occasions in the past as they are from the same company), who does a great job as Xiao K, the girl who goes to Hero Huang for help and ends up travelling the country with him looking for the secrets to a plate of great Nasi Lemak. Great first attempt, playing the female lead at that!

The pair also does a great job signing all the songs inside the movie. There is a funny English song which they perform on the stage of some cheap-looking beer garden; with lyrics which go something like “I live in big city yo, people mountain people sea, working so hard no money yo, why you still loving me’… Hahahaha… The song’s name is White Head Till Old. Very meaningful and touching in addition to being funny. Then there is one done Bollywood style with a team of supporting Indian dancers, called ‘Curry Neh’ or something… This one is really good with Namewee and Karen in typical loud garish Bollywood costumes. Hahahah, I can’t help but laugh when thinking about it. (See the YouTube videos below for these songs)...

Afdlin Shauki as the Malay Hero was cool. He was given the controversial line “Kamu semua balik Negeri Cina!!!” while waving a Keris around.

Dato David Arumugam as the Curry Master is just plain funny… Wait for the part where he speaks Hainanese and Hokkien.

The ‘horror scene’ involving the baba and nyonya in an old mansion was really quite creepy, considering this is a comedy and not a horror film.

Overall, the movie tells a good story. The main cast is solid. The production crew did a fine job. It was only lacking a little where the secondary cast was concerned. Maybe Malaysian entertainment is still too dependent on the few big names, without sufficient depth. But it is not reason enough not to see the film.

Definitely a must-watch for all Malaysians. Especially if you love a great laugh. I am gonna buy the (original) DVD of this movie when it comes out. It should be available soon after the cinema screenings end.

The movie's official trailer here:-

White Head Till Old:-

Curry Neh!

Andrew Chua.

The Dividend Aristocrats; A List of Malaysian Public Listed Companies which give Solid Dividends

2011-09-14T19:46:00.000+08:00

In these recent uncertain times, many commentators in the media have begun to promote the benefits of what we have always liked here at iInvest; Dividend Stocks. Companies which give steady dividends year after year are very attractive especially in tough times because they give something very tangible and real; Cash Dividends. When times are bad, growth stories go out the window; we just want to see cold hard cash from our investments.

However, many would protest that buying shares simply for dividends does not produce enough returns. With estimated dividend yields of only 5%-7% per annum, it is simply not enough to justify the risk of entering the stock market. But this train of thought only touches the surface. It does not take into account the following:-

Although current dividends divided over current cost gives 5-7%; remember that dividends increase over time. As the dividend of Company ABC rises from 10 sen per year to 20 sen per year; your dividend yield increases from 5% to 10% because you have locked in the cost now. Your dividend yield is 5-7% NOW; it is not expected to remain at this rate forever.
As dividends rise, the price of the shares will probably rise too, thus giving us very predictable Capital Appreciation (but you have locked in the cost while it was still low).
The ability to give dividends implies honest and capable management. A company which plays around with its finances will not be able to commit to giving out cash three to four times a year.
Strong dividends imply a solid business model. In other words, companies which are able to produce strong dividends are those which are making good money.

One complaint I always get is “Yes, we know Dividend Stocks are cool… But, how the hell do we identify which companies out of the hundreds listed on Bursa Malaysia actually give solid dividends?”

In the US, every year the S&P comes out with what it calls the "S&P 500 Dividend Aristocrats". This is a list of the best dividend companies which have to meet the following criteria:-

Minimum market cap of $3 billion.
Minimum average trading volume of $5 million to ensure liquidity.
Company must have increased dividends every year for at least 25 years.

Included in the list are stalwarts such as McDonald’s Corp, 3M Co., Coca Cola Co. and Exxon Mobil Corp.

Unfortunately for us, I have not come across such a list in Malaysia. But off-the-cuff, here are a few well-known dividend players in Malaysia which consistently provide steady, rising dividends:-

Amway (Malaysia) Holdings Berhad
Guiness Anchor Berhad
Carlsberg Brewery Malaysia Berhad
Public Bank Berhad
Sunway Reit
Capita Malls Malaysia Trust
Maxis Berhad
DiGi.com Berhad
YTL Power International Berhad
Petronas Dagangan Berhad

All the above companies have very strong business models which generate cash year after year. And all of them are growing quite nicely too.

Dividend stocks should have a place in any portfolio. You can even build your entire portfolio solely on dividend stocks.

What can be more fun than receiving cheques in the mail every quarter; correspondence which does not ask for money but instead actually gives you money?

“Do you know the only thing that gives me pleasure? It's to see my dividends coming in.” ~John D. Rockefeller

Andrew Chua

Interview with Robert Kuok

2011-09-13T01:38:00.000+08:00

After the first video ends, just click for the next continuing video under the "Up Next" section...

Cash. Powerful or Worthless?

2011-08-30T20:02:00.002+08:00

We have all heard the saying that "Cash is King". At the same time, people always tell us that cash is thrash because it does not appreciate in value on its own. If you place cash in money markets / bank deposits, the returns are so dismal that it is no where near being able to keep up with inflation.

So, how should we as investors view cash?

Have you ever played a game where the character you are playing as receives a 'power-up' and becomes invincible for a limited period of time? This is the gaming equivalent of holding cash in the capital markets.

When you have cash and enter the capital markets, you are holding a 'power-up'. You have lots of power to buy anything you want to buy. Options are aplenty. You are king!

But this power does not stay forever. Your cash loses its power everyday as inflation catches up.

You have to do something with this power sooner or later for it to have some positive effect in your investment life.

So what is the best strategy to use when holding cash?

Like in the games, you have to be very careful when you receive a powerful power-up. You must not be rash and waste it on stuff which have little impact. You must use it to achieve a goal which had been escaping you when you had no power-up.

In the investment world, this means buying into an asset which provides a lot of value in terms of income yields and capital appreciation which comes from income/profit growth.

Wait for the right time to sink your teeth in. But don't wait indefintely.

Cash is King. But not forever.

Andrew Chua

The Investor’s Shield

2011-08-28T16:49:00.000+08:00

I am borrowing from a church sermon to write this post. This morning the pastor gave an interesting analysis on the uses of a shield (he was talking about faith, but in this article we will substitute the religious details with financial ones while maintaining the essence of the analogy).

A shield is primarily known as a defensive piece of fighting equipment. But, if we just utilize it for defense, it does not make sense.

Imagine this:- The enemy fires, you block. He fires again, you block again. And again and again. This could go on indefinitely, until he runs out of arrows/bullets or your shield cracks.

The right way to use a shield is of course to ADVANCE forwards even as the enemy is firing, in order that you can get close enough to slash him with your sword.

Seen from this perspective, Defensive Investing Strategies do not imply passivity and should not be used passively. The idea behind Defensive Investing is to protect your capital, but you need not remain rooted to the spot. You are supposed to go forwards even as you minimize the risk of your capital.

Defensive investing is not settling for zero or low returns. It is about minimizing risk as we SEEK optimal returns. The word Defensive just means that we keep an eye on the protection of our funds as we do it as opposed to throwing caution to the winds of chance.

One who is well-versed with Defensive Investing Strategies armors himself with a shield in the chaotic world of the Capital Markets. The SWORD, which goes for the kill, is not to be used lightly; it is only used at the specific moment when the timing is perfect.

Much of investing is about defense. But do not stay rooted as you protect yourself. Lift your shield and minimize risk, but at the same time march forwards towards the Stronghold which holds the optimal returns.

Andrew Chua

The More You Tax Something, The Less You Get of It

2011-08-27T01:44:00.004+08:00

The more you tax something, the less you will get of it. If you tax gambling, less people will gamble. If you tax cigarettes, less people smoke. If you tax alcohol, less people drink. If you tax goods and services, less people will consume. Or at least, taxes will stem the growth of whatever it is that is being taxed.

Except income. People won't stop wanting to increase their income just because it is being taxed. They may try to hide it, but they won't stop trying to increase it. Which is why income remains the biggest contribution to any nation's taxes. Income Tax will always be a government's favorite form of tax.

Andrew Chua

iInvest visits J Melody for a Music Lesson...

2011-08-23T22:10:00.000+08:00

Great Music inside! (Not by me, don't worry)

Deal or No Deal

2011-08-13T18:11:00.004+08:00

There is a very serious misconception among investors that the value of their investments is dictated by the current price at which they are trading. This is a very dangerous way of thinking which will lead to many mistakes especially on the selling side.

As far as I know, when you own something of value and people offer you a price which you feel is ridiculous, you tend to say “No Deal”.

There can only be a deal when the price is right. The fact that others are letting go of the same asset at prices that do not satisfy you should not affect your selling decision as long as you are confident of the value of your asset.

Problems arise when:-

You have no inkling as to the actual value of your asset
You borrowed money to speculate in that asset and therefore could not stay with it through tough times
You do not know the difference between price and value

Just imagine that you own a house which gives you rents of Rm10,000 per year. You are confident the rents will not be going down anytime soon, only higher. The entire row of houses commands that rental rate.

Then one fine day, your neighbor sells his for Rm50,000. You feel that something that can be rented out for Rm10,000 a year should not be sold for anything less than Rm200,000. So you think your neighbor is an idiot.

The buyer then comes to you and offers you Rm50,000 as well. Will you agree to his proposal just because your neighbor did? It makes no sense.

Regardless of whether it is in the property market or the stock market, it makes no sense.

Your stocks did not lose half their value just because the market price went down by half. It is obvious yet many do not see this.

The value of a stock lies in its earnings, assets and dividends yields. If it still offers value in these terms, the price at which the last transaction was done should have no effect other than that it is a buying opportunity.

Deal or No Deal? You decide. Don’t let the transactions of other investors affect you. You need a bit of obstinacy and contrarianism to be successful in any market.

Andrew Chua

Fishing in Troubled Waters

2011-08-09T14:56:00.004+08:00

浑水摸鱼

浑 muddy
水 water
摸 grope
鱼 fish

Sometimes, when the water becomes muddy, there will be confusion. Which is the big fish? Which is the small fish? Which is the dead fish?

When the waters are muddy, the wise man will be able to get a big fish much more easily than when the waters are clear.

When prices are in chaos, he who knows value will get a good deal.

Some local counters which value will not be directly affected by the debt troubles in western countries yet have seen prices drop:-

Sunway Reit
Capita Malls Malaysia Trust
Amway Holdings
Berjaya Toto
Padini

(These are just examples. I am not recommending a buy)

“Fishing in Troubled Waters” is the 12^th of the 36 Stratagems

Happy Fishing!

Andrew Chua

Padini Holdings Berhad; A Buyable Share?

2011-08-03T18:01:00.003+08:00

Please indulge me a little as I extend my comparison of “Investing vs Love” from our previous article. Came across a company which feels like what you would call ‘marriage material’.

Padini Holdings Berhad is the company which makes the ubiquitous Padini brand of clothing which seems to clothe a large chunk of the young professional / young executive class.

The first impressive item on its ‘resume’ is the five year growth trend of its Earnings Per Share (EPS).

Look at the above 5-year trends (click on the image to expand). Sales and profits are growing steadily and significantly. EPS is growing by an average of 20% per year (note that the company completed a 1 for 5 share split in Jan 2011, so the EPS has to be divided by 5 in order to make sense of it in relation to the current share price of Rm 1.08)

P/E ratio is now at approximately 11 based on 2010 earnings. Assuming the valuation remains at this reasonable level, we have on our hands a share that returns 20% a year (due to its 20% average annual earnings growth).

Now we look at the balance sheet. Net Asset per share is 178 sen as at June 2010. Divided by 5, we get 35 sen. So the share is valued at approximately 3 times its net assets. Still reasonable considering that this is a company which assets are mostly intangible and not carried on the balance sheet (the power of their branding, for instance).

We can see from the Balance Sheet above that it has debts of approximately 120 million. But this is easily covered by the company’s assets. Before even considering other assets, 'cash and cash equivalents' alone are in excess of 135 million.

On the qualitative side, fashion ~~spending~~ splurging by the young crowd doesn’t look as if it is going to abate anytime soon. The combination of PP and CC (Peer Pressure and Credit Cards) will ensure (at least in my opinion) the growth of this company.

Impressive earnings growth, reasonable valuation and a strong balance sheet. This is like a girl who is sexy, approachable and sensible all at the same time.

If Padini was a lady, I’d marry her.

Andrew Chua

Investing in a Company is like Courting a Girl

2011-07-31T16:11:00.002+08:00

The investment process is in many ways similar to the courtship process. Let’s look at how investing in a public company is comparable to courting a girl (or boy).

Attraction

You see her somewhere, and something about her – how she looks, a gesture, a smile, or something she said – catches your attention. She is on your radar from this moment on.

Something brings your attention to a certain company – a news item, its product in the supermarket, a product launch advertisement – and you feel positive about it. It’s on your investment radar from this moment on.

Research (Fundamental Analysis)

You ‘discreetly’ ask your friends about her, check her profile on facebook (hmm, the dangers of facebook) and try to find out her background.

You check the company’s annual reports, financial highlights, business background and share price performance.

Research (Technical Analysis)

So her background seems good. You think it would be a good fit. Now you move on to a very critical question: Is she attached? Would it be a good time to go after her? Is she ready for a relationship? How many competitors do you have? What time is she usually free? Where does she hang out?

You have found that it’s a good company. Business is good, earnings are rising, and liabilities are minimal. Now you ask a very important question. Has the share price just flown and did you just miss the train? Is it still possible to enter at a good price? You look at the recent share price movements and transaction volume.

Valuation

Would the endeavor be ‘worth it’? If there are too many competitors, you obviously have to outdo them and pay a higher ‘price’. If others give a box of chocolates you may have to give two? Would you be required to give so much that what you pay ends up being more than what you get?

Has the gem already been discovered? Is demand so strong that the price is already too high? Can you get more value than what you will be paying?

Under-valued

There are not many worthwhile competitors. Maybe due to a certain flaw which doesn’t really matter but appears to put others off a bit. You manage to court her with minimal effort. Once that ‘flaw’ is corrected, the whole world will see what a diamond you brought home.

There is not much demand for now. Maybe it hasn’t been discovered, or maybe the huge yields are marred by some negative perception which is really quite inconsequential. Once that perception is corrected, you will get your homerun.

Over-valued

There is veritable crowd around her. Maybe due to some over-rated feature; beauty perhaps? You practically have to shout to get her to even notice you. You might still be able to get her in the end… But at what cost?

A high-profile CEO, a famous product, or market hype… These might make the shares seem more desirable than they deserve to be. You will still be able to buy… But at what cost?

Destruction

The cost was too high and the relationship turns out to be a failure. There is destruction and it messes your life up.

The cost was too high, so the price eventually comes down. The investment is a failure, and your life is messed up.

Elation

Your girl turns out to be all you want her to be. Each day brings a discovery of a new virtue. There is elation and lasting happiness.

The company gives you solid income and cash flow while appreciating in price. There is nothing but ecstasy.

iInvest.my promotes defensive investing where emphasis is placed on ‘real’ returns such as proven dividend yields backed by solid assets. In other words, we look for ‘virtuous’ girls rather than hot Gucci mamas.

Andrew Chua

KL Retail Property Market; Sustainable Demand?

2011-07-20T18:50:00.001+08:00

This is not an analysis based on numbers and statistics. It is simply an observation by the naked eye.

The crowds in KL are full to the brim and over-flowing. The roads seem inadequate to hold the cars, the malls inadequate to hold the shoppers, and the ladies toilets inadequate to hold the ladies. And it just gets worse every year.

You build ‘em, they’ll fill ‘em…

With this sort of anecdotal evidence, would you bet for or against the KL Property Market? Demand just comes and comes and comes.

With so many REITS around, exposure to this market is easy to achieve. Rentals will increase and property values will appreciate.

A no-brainer investment?

We will be featuring more on REITS in coming posts and reports…

Andrew Chua
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Stock Market Competitions

2011-07-09T15:22:00.000+08:00

Recently there have been quite a number of stock market competitions where participants are each given an imaginary amount of money which they then proceed to make imaginary trades with. The one with the most imaginary trading profits at the end of the competition (which typically lasts 1-3 months) will be declared the winner.

Personally, I find that this type of competition instills all the wrong ideas about investing. It promotes active trading and speculation; which are unhealthy investment behaviors. In fact, this is not investment at all.

Of course, these competitions are sponsored by stock brokers who will get more brokerage fees if clients trade like crazy. This is exactly the kind of behavior that they want.

Sadly, this sort of thing has permeated our society so deeply that many have forgotten what real investment is about.

Stock market investment is about the gradual increase in value of the businesses we buy and the income we get in the form of dividends.

These competitions do not provide enough time for gradual appreciation to materialize and they ignore dividends altogether.

Warren Buffett would not approve.

It’s kind of like organizing a competition for guys to see which one can sleep with the most number of girls within a month. It emphasizes all the wrong values and ignores the values involved in building a long-term relationship.

We end with a Warren Buffet Quote:

“I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. “

We should not hope for investment profits to come from furious short-term trading. Please listen to the man.

Andrew Chua

Let the Numbers Tell the Story

2011-06-30T21:24:00.003+08:00

Numbers, just like alphabets, can tell stories. But numbers tend to be more truthful, and if you know what you are looking for, you will find that numbers tell very honest stories.

Here we have an example of a series of numbers, financial highlights of UOA Reit; a Landlord in KL specializing in commercial office property. The rentals received from these properties are distributed to unit holders regularly, making it a strong cash-generating investment.

(Click on the picture to make it bigger)

The numbers to look for are Net Asset Value per unit (NAVpu) which indicates the market value of the properties held by the trust divided over the number of units; the Realised Earnings per unit (REpu) which indicates total profit divided over the number of units; and Distribution per unit (Dpu) which indicates how much cash each unit received throughout the year.

With the NAVpu, we see a trend of increasing value, consistent with the increasing property prices in KL. At the current price of Rm1.41, each unit is trading close to the NAVpu of Rm1.512 as at end of 2010.

REpu and Dpu however, did not have such a smooth ride. It went up for four years from 2006 to 2009, but took a dip in 2010. This tells a story of some weakness in the KL commercial office rental market in 2010, most likely a result of cost-cutting by large companies after the Global Financial Crisis.

So the question of course is whether the trend will revert to a positive one in 2011, or will it continue to go down? Office space in KL should be well in demand, and it is likely the trend will revert.

At its current price, each unit returns distribution of close to 10 sen, giving a healthy dividend-yield of 7%.

The series of figures quickly gives us an idea of the trust’s situation and how it performs in tough economic times. It is more difficult to disguise non-flattering information such as decreasing profits when it is presented in numbers. We have flowery words and bombastic phrases; but no such thing as flowery numbers.

Here is another series of numbers, financial highlights of Classic Scenic, a maker of wooden frame moulds.

(Click on the picture to make it bigger)

Here, revenues and profits also went down, in 2008 and 2009. It seems that this company faced the brunt of the financial crisis sooner than UOAReit, as most of its goods are exported to western countries which were hardest hit by the crisis. In 2010, it pretty much managed to recover to pre-crisis levels.

But note that the Dividend payout increased significantly in 2009 and 2010. Why is this company suddenly paying out so much of its profits now? In the past, it paid out about half its profits as cash dividends. But in 2009 and 2010, it is paying almost all.

We could speculate some reasons… Maybe there is not much room for expansion for the company and therefore the company has not much use for excess cash. Or maybe the big shareholders of the company need cash for some personal reasons. Or maybe its cash flow is in better shape now so the company is comfortable with less cash reserves. The balance sheet of the company shows that the company has very little debt, so paying debt repayments is not a concern.

At 76 sen right now, the share provides a hefty 11.8% dividend-yield (assuming that the 2011 payout will be the same as 2010). As at the end of 2010, the company had cash reserves of more than Rm20 million which works out to about 17 sen per share. Net Asset per share is 77 sen, which is close to its last done price of 76 sen. Buying this company at 76 sen seems to provide quite a bang for buck.

Overall, this seems to be a story of a company which has carved out a strong position in its market; seemingly having overcome debt and constant expansion and settled to become a cash-generating entity.

It is always interesting to look behind the numbers to see if the story beneath fits with what the mouths are saying. This is what Financial Statement Analysis is about; getting the numbers to tell the story.

Andrew Chua
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(The above is an academic exercise which applies well-established securities-analysis methods and benchmarks on currently available investments. It does not constitute a recommendation to buy or sell any security. The writer does not own any shares of the above-stated company at the time of writing, and does not receive payment for the sale or research of any security. ~I lay down the facts; you make your own conclusion...)

Is Your Education Worth The Money?

2011-06-28T09:22:00.000+08:00

I just noticed that an MBA from a leading UK University, done at a leading Malaysian College, will set you back by about Rm80,000 in fees.

Upon noticing this, the first thing I did was to find out how much Rm80,000 will become after 30 years if you leave it untouched in an investment that returns 10% a year (10% a year is not hard to get; not touching it may be more of a challenge).

Rm80,000, left untouched in an investment at a compound interest of 10% per annum, will become close to Rm1.5 million after 30 years.

Now, will that MBA really make you that extra million in your lifetime? It makes us wonder.

Of course, if your boss tells you that your salary will immediately increase by Rm5,000 the moment you get that MBA, then that is a different story. But if you are going for it based on some vague notion that it should increase your market price; then it is just a dream based on hope. You would probably be better off using that Rm80,000 to buy a flat which you can rent out. At least it will immediately put Rm400-500 in your pocket each month.

I have nothing against education, and neither am I suggesting that the MBA is over-priced if you calculate the pricing based on the costs involved in providing that course. The question is, will it give you the returns you want? Is it worth it?

First of all, most people who go after MBAs go after it in the pursuit of a better salary. Rarely do people enroll in MBAs for educational purposes alone.

So if it’s money and NOT academic indulgence that you are after, we need to calculate the returns.

The problem is that too many of us make automatic connections between education and money. The problem with many educated people who complain of being under-paid is that they believe they deserve a good salary based on their educational qualifications alone.

Education in itself does not grant us anything. In the end, we still need to take the necessary actions. The pursuit of wealth requires direct actions like:-

~Talking to your boss about a pay rise.

~Arriving at a deal with management regarding how you are going to increase your productivity in exchange for more money.

~Starting a business and cracking your head regarding how to get sales.

~Taking up a part-time job.

All the above will probably yield more results than the indirect action of going for further studies in the hope that the additional qualifications will bring you a better-paying job. But of course, if you talk to your boss and he says the only way he is going to give you a raise is if you get more qualifications, then you should do it. But going for it without a proper vision of exactly how it will bring you more money may cause you to end up with less money than you started out with.

It is a decision which requires very careful planning. You cannot make the automatic assumption than higher qualifications = more $$$.

Our society and economy are getting more and more decentralized. Now everything is outsourced and a lot of work is contracted out to freelancers. There is no longer such a thing where your qualifications bring you into a company and the employer takes care of you for the rest of your working life after that.

It’s just like if you like a girl; being pleasant-looking and well-off is not enough. You still need to actually initiate some action to go after her. If she rejects you at first, then you need to get creative in your actions. You can’t just come back to her in two months and say “hey, my salary has now increased by Rm2,000 and I have just plastic-surguried my nose, so you should want me now”. Not that the extra Rm2,000 doesn’t help. It does. But by itself it is not enough. You have to find out exactly what each girl wants on a case-by-case basis, and then custom-make an approach. It is the same with getting more money. You can’t just say that “I have an MBA, so you should hire me for at least Rm8,000 a month”. The MBA helps, but it is not enough in itself.

And you may even find that in many circumstances, it is not required at all. Maybe that girl doesn’t care for an extra Rm2,000 per month. She just wishes you wouldn’t pick your nose in public. Maybe people will hire you for Rm8,000 a month if you are willing to smile more at the workplace – no MBA required. It is true that the job-market places a lot of emphasis on paper qualifications; but the job market isn’t the only place where money can be found.

The point is, we should not just go get an education just because we think it ‘should’ give us a better salary. We should first have a plan on how exactly an education is going to fit into our money-making plan, then find the most cost-effective option.

And it becomes worse if you get a loan to finance an education. This is where you need to be even more careful. If you borrow Rm80,000 to be repaid over five years at an interest rate of 9%, it is going to cost you something like Rm1,700 a month.

The process of making a living has become very DIY. Do-It-Yourself. Use your smarts and resourcefulness. You may have noticed that nowadays, even if you want to buy a plane ticket, it’s DIY. Key in your name yourself. Choose the seat you want yourself. Choose your meals yourself. Print out the bloody ticket yourself. Want more money? Help yourself. No one is going to say “Wow you have an MBA! Come work for me and I’ll give you 10k a month”.

So before you get any sort of education, think carefully. Think what exactly it is you are getting. A lot of ‘real’ education; such as learning more about the world, about current affairs, about history, about geography and the arts – these can be found on the Internet. Your formal education is to help you make money, not learn more about the world. So it must be cost-effective.

It was different in the past because the only way knowledge can be gained was if you attended college.; which was why a premium was placed on tertiary education. Nowadays, you can even learn how to make a bomb just by searching the Internet. Therefore your formal training must be very specific in helping you generate an income. No one will buy the argument that your general degree makes you more ‘enlightened’ than others.

Nowadays, Money is a more scarce resource than Knowledge. Knowledge is all over the place, available for free.

So be wise when exchanging money for knowledge.

Andrew Chua

Valuation of RHB Capital Berhad

2011-06-27T17:00:00.003+08:00

It was reported in the news that Maybank and CIMB Bank are no longer interested in buying RHB; both scrapping their merger plans simultaneously. Wonder what’s up?

The news article also mentioned that some of RHB’s shares were recently transacted between two other parties; Abu Dhabi Commercial Bank having sold a 25% stake in RHB to Aabar Investments for Rm10.80 per share. This price (Rm10.80) was then treated as the benchmark price for any further deals involving RHB’s shares. Did both CIMB and Maybank find the price too high? Was the price the reason why both parties decided against buying RHB?

Is Rm10.80 a fair price?

Let’s see:

In 2010, RHB made 66 sen per share. This metric has risen steadily over the past 5 years, so we assume it to be a reasonable indicator of its current value.

Out of this 66 sen, 26 sen was distributed as dividends. In other words, 40% of profits were given to shareholders as cash distributions.

At Rm10.80; RHB returns 6.1% in terms of Profits and 2.4% in terms of dividend yield.

This investment will return you 6.1%; out of which 2.4% is in cash.

As RHB’s profit and dividends over the past 5 years have been increasing steadily, we can assume that it will continue to do so in the future.

Therefore, the return of 6.1% and dividend yield of 2.4% can be expected to increase in future years.

In five years time, it may be returning 8%; out of which 3.2% are in the form of cash dividends.

So, is the investment cheap or expensive?

Would you buy an investment that returns you 6.1% today (with high probability of increasing in future years)? Does it bother you that only 40% of profits are distributed in cash form?

Compared to other stock market investments, a return of 6.1% is relatively low. A dividend yield of only 2.4% is also not very attractive. Unless you are able to take over the management of the bank and unlock any hidden value that is not in play right now; buying this at Rm10.80 and holding it as a passive investment does feel a little expensive.

As at 27 June 2011, shares of the bank were last traded at Rm8.82. At this price, the figures get a little better:-
Investment Return (based on 2010 Profit): 7.48%
Dividend Yield (based on 2010 Dividends): 2.99%

Andrew Chua

$

(The above is an academic exercise which applies well-established securities-analysis methods and benchmarks on currently available investments. It does not constitute a recommendation to buy or sell any security. The writer does not own any shares of the above-stated company at the time of writing, and does not receive payment for the sale or research of any security. ~I lay down the facts; you make your own conclusion...)

HappY FaTherS' DaY!

2011-06-19T23:59:00.000+08:00

This Fathers' Day; my personal best wishes to all the parents of the world :)

Defense as a Superior Investment Strategy

2011-06-14T15:51:00.019+08:00

Too many people believe defense to be an unsuitable strategy for themselves. We are always told to be proactive and positive, to take the initiative and grab our chances; to the point where we get deluded into taking recklessness for pro-activeness. The truth is, the entire investment industry is built upon selling one thing: DREAMS. Dreams that lead you to spend huge sums on brokerage fees, investment ‘education’, trading software and investment systems. All for the sake of chasing that one dream investment that will take you to riches overnight. Sadly, it seldom happens.

The first rule of investment is: “Do not lose your money”. Making money is second. Once you lose your money, there is no more money left to be making money for you. Therefore for the vast majority of investors, defense is the way to go; to protect your money first, then slowly and gradually accumulate safe and reasonable returns.

Consider the following example:

You have $100. You lose 50%. Now you are left with $50.

With the $50, you invest again and this time make 50%. Do you go back to $100?

No. 50% of $50 is only $25.

So now, after losing 50% and then winning 50%, you are not back to even; but down $25.

Doesn’t this make it clear that defense is more important than offense? You need double the offensive effort to recover from a single defensive blunder.

Let’s see this from another perspective. We all know how the English Premier League works. You win a game and get 3 points. Draw a game and get 1 point. Lose and get 0.

Now, when the score is 0-0, you are on course to gain 1 point and need only one goal to gain 3 points.

But if you neglect defense and the opposing side scores one goal, the score becomes 0-1.

At this point, you are on course to gain 0 points, need one goal just to get 1 point, and need 2 goals to get 3 points. Didn’t you just make your life difficult for yourself by neglecting defense and letting in that one goal? An error by the team’s defenders just made the strikers’ work doubly hard.

In investing, as in football; always focus on defense first. Then only go for safe, secure returns. Make sure the opposing side is getting nowhere near your goal-mouth; then only slowly try to sneak in to score that goal of your own.

Going in with guns ablaze is not the way. Before you even fire a shot, you will be wiped out already.

Do not be swayed by the DREAMS people try to sell you. They are all designed to alter your psychology into willing to spend money to chase some far-fetched HOPE. Yes, they exploit people’s HOPE and sell DREAMS.

True investment is a simple process. You do not need to trade frequently and you do not have to be stuck on Bloomberg or CNBC 24 hours each day.

In sports, defense wins championships. In war, strong defense annihilates reckless attackers. In investment, defense makes you money.

Let Dato' Lee show you how effective defense works:-

Andrew Chua
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The X-Men; and Some Thoughts on Gifts and Heroism

2011-06-05T21:03:00.001+08:00

The X-Men - First Class
Caught the new X-Men movie on Saturday night, and it was good. This latest installment of the series, called ‘First Class’, traces the roots of the X-Men; telling the story of how the school and team came about and shedding light on stuff like what caused Professor X to be wheelchair-bound. Cool effects and action aside, all through the movie there was a feeling that there was a deeper meaning to it all; something that resonated inside indicating that an important story was being told. But the message was not immediately apparent.

Gifts
It wasn’t until Sunday morning that the meaning of the movie was unexpectedly brought to focus by a church sermon. The sermon centered on the following:

4 For as we have many members in one body, but all the members do not have the same function, 5 so we, being many, are one body in Christ, and individually members of one another. 6 Having then gifts differing according to the grace that is given to us, let us use them: if prophecy, let us prophesy in proportion to our faith; 7 or ministry, let us use it in our ministering; he who teaches, in teaching; 8 he who exhorts, in exhortation; he who gives, with liberality; he who leads, with diligence; he who shows mercy, with cheerfulness. [Romans 12: 4-8]

And it was so clear that this was exactly what the X-Men were; a team comprising of members each with different talents and special abilities. Each of them did something different, played a different role, worked together, and most importantly – became complete only when they managed to master and bring their special gifts into play.

Choosing Your Side
But the more important lesson is not just about recognizing and pursuing your God-given gifts. The more touching part of the movie was about choosing sides; like how Charles Xavier (Professor X) never wavered from his peaceful agenda and used all his powers in pursuit of his principles, and how others like Shaw and Erik (Magneto) succumbed to the greed of personal power and fell to the dark side. We all have our gifts, and sooner or later we will use those gifts; but what shall we use them for? Isn’t that the most important question?

Heroism in the Real World
Comics and cartoons actually tell very human tales; only that they use very over-the-top methods to get the message across. But if you think about it, Professor X’s X-Men and Magneto’s New Mutants could just as well be two rival teams of salesmen or accountants or programmers. All you have to do to bring the story into the real world is to switch the cartoonish gifts like super strength and mind-reading to more down-to-earth gifts like leadership, analytical ability, salesmanship and physical ability.

The two teams of super-mutants could just as easily be two teams of sales-people; each team with a charismatic leader, talented sales-people, analytical back up and administrative genius. One team would choose to build a lasting and sustainable enterprise ala Professor X while the other team, just as talented, may opt for the dark side and go into fly-by-night enterprises and maybe begin cheating and hoodwinking people with their dazzling talents. These things happen in real-life all the time. The story of the X-Men are actually playing right in front of our eyes every single day; just that the ‘gifts’ and ‘abilities’ involved are a lot more discreet and less awesome than those in the movie; therefore less noticeable. But our real life stories are actually not at all any less dramatic; and the real-life Charles Xaviers none the less heroic.

This is what heroism means in our real, modern world; a world where there are no super powers like in the movies and no martial arts like in past warring times. Heroism is played out more discreetly and is less recognizable.

But we should do our best to recognize the heroes amongst us. Who are the ones who would always put others above themselves? Who works for the greater good? Whose word is his bond? Who walks his own talk? Who are the ones who never waver from their beliefs? Who never forsakes a friendship? Who is always there for you?

Do heroes exist amongst us? You bet they do.

Andrew Chua
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Building Castles in the Air

2011-06-02T21:45:00.001+08:00

Building Castles in the Air… What does this saying bring to mind? Images of instability no doubt; representing endeavors without proper foundations which are bound to fail. But interestingly, I noticed that certain enterprises were in fact being built “in the sky”.

Yes, I am talking about internet-based entities, where so much of the entity’s value is intangible; bits of data held in some ‘cloud’ somewhere. Of course, that cloud is actually a server farm somewhere down here on earth, but for the entity itself, it makes no difference. The entire essence of the enterprise consists of ideas and concepts which are manifested not through bricks and mortar, but through websites and databases; the value distributed to users through PCs, smart-phones, and tablets.

This observation has nothing to do with the saying “Building Castles in the Air” in the traditional sense. It neither supports nor discounts the concept that all enterprises require a solid foundation in order to succeed (but I would like to add that Yes, I support the notion that solid foundations are required). This observation just shows that the foundations of businesses and organizations can take on various forms, and they do not have to be cement and steel rods.

At the core, all enterprises are ideas. The ideas are put into action when ambition and emotional energy is poured into them. Then they finally take the shape of the physical stuff that gives us value.

All this has not changed, except for the fact that much of what gives us value is no longer necessarily physical. Much of it is informational; letters and numbers on a screen. Your fat bank account which gives you so much comfort is represented to you by nothing more than some digits on your smart-phone’s browser.

Increasingly, our ‘Castles’ are moving to the air. A guy with nothing more than a laptop at Starbucks may actually be hosting his own mighty fortress in cyberspace.

Value has transcended from the physical plane to the mental and spiritual; and it is being distributed as such. The only physical conduit involved is the gadget we use to connect to the cyber world.

As long as our ideas can take shape and grow in the cyber world, as a society more and more of our castles and treasures will move to the air; leaving no trace to the naked eye which does not know where to look.

This is the world we live in today…

Andrew Chua.
$

Hunza Properties Bhd and a Walk in the Pearl of the Orient

2011-05-25T20:03:00.001+08:00

[A picture I took in Penang]

Am currently in Penang on business, and one of the first things that grabbed my attention as I crossed the bridge from the mainland is the beautiful east coast of the island which flanked both sides of the bridge; dotted by cool bluish lights emanating from the many waterfront condominiums. And as I got closer, the buildings did not lose their splendor; only that the bluish lights now took on a yellowish hue.

Soon I was feeling that the overall feel of the place made it more comfortable than KL or Singapore, although condominiums such as these were not lacking there. It was the way they all fit in together, converging nicely and coherently along the coastline without appearing dictated. The higher-end housing market on the island seemed healthy indeed.

Penang is now the number one FDI generator for Malaysia, and with so many MNCs in the state, the spending power of the locals must surely rise; not to mention the many MNC employees who are subsequently transferred on overseas postings and are most likely getting paid in USD or Euros. No wonder there is support for the housing market.

Then I went on to Gurney drive and happened upon two almost-completed towers near Gurney Plaza. It’s called Gurney Paragon and seemed ready to open soon. The developer is Hunza Properties Bhd.

[Gurney Paragon; construction in progress]

With a seemingly delicious slice of the Penang High-End Housing pie under its belt, it felt the right thing to do next was to find out more about the company.

Hunza is a developer with a significant presence in Penang. Its biggest on-going project now is the above-stated Gurney Paragon.

Its past performance was solid, with five years of rising revenues and profits with the exception of 2009 when it took a dip.

From its balance sheet for 2010, we find the company has a Debt to Equity Ratio of 37% and Debt to Asset Ratio of 27%. Hardly worrying…

[Financial Highlights]

Earnings per share were as follows:

2009: 19 sen

2010: 31 sen

2011 (Forecast by Alliance Research): 22 sen

At its current price (Rm 1.60 @ 25 May 2011); the shares are trading at only 7.3 times 2011 forecast earnings.

Book value per share were as follows:

2009: Rm 2.16

2010: Rm 2.19

2011 (Forecast by Alliance Research): 2.46 sen

At its current price (Rm 1.60 @ 25 May 2011); the shares are trading at only 0.65 times 2011 forecast net assets.

And now we get to the juicy part. Dividends per share were as follows:

2006: 7.5 sen

2007: 12.5 sen

2008: 9.2 sen

2009: 5.6 sen

2010: 8.1 sen

Giving us an average dividend of 8.58 sen per share per year.

At its current price (Rm 1.60 @ 25 May 2011); the shares provide a dividend yield of 5.4% based on the five year average. We can reasonably expect the dividends to rise over the long term; so we effectively lock in a future yield of, say, 10% if the dividends reach 16 sen per year.

Concluding comments:

-The stock seems cheap from the P/E and NTA/Share aspects.

-The completion of the Gurney Paragon project and the subsequent move of the company’s HQ into it will improve the company’s reputation, track record and standing even more.

-With a stream of steady projects, the company will be able to continue giving out strong dividends which will buffer any possible share price decline due to market factors.

-The company will retain the shopping mall at Gurney Paragon to be rented out to tenants; helping it achieve recurring rental income.

However, I would like to add that as I looked up the two towers of the Gurney Paragon at 11.20pm at night, I noticed most of the lights at another high-end condo next to it were off… Everyone gone to sleep at 11.20pm? Or are the units mostly unoccupied? Does this suggest a bubble forming? Is there real demand or is most of the demand speculation-driven? I continued onto Straits Quay; another high-end development in Penang. It was beautiful; but it was quite quiet and the shops didn’t seem fully occupied by tenants.

Is demand for high-end housing faltering? Or will property investments continue to be funded by MNC money? As long as the property market is stable, Hunza should do just fine.

Andrew Chua
$

(The above is an academic exercise which applies well-established securities-analysis methods on currently available investments. It does not constitute a recommendation to buy or sell any security. The writer does not own any shares of the above-stated company at the time of writing, and does not receive payment for the sale or research of any security.)

The Magic of Money

2011-05-09T17:14:00.001+08:00

Money is nothing short of Magic. The notes you carry in your pocket, they can so easily be turned into pretty much anything u want. Go to McDonald’s and turn the notes into a burger. Go to the sporting store and turn them into shuttlecocks. Go to the bookstore and turn them into books.

We have pretty much taken for granted the power and utility of money to the extent that it has ceased to appear wondrous. We are so sure that our notes will be accepted by others that we give no thought to it. Of course, it is only because the validity of the notes is taken for granted that the entire system can work.

But don’t let the same indifference take away the wonderful possibilities money bring us. Do not be limited in your thinking of what money can buy. We are told by advertisers that our money should be converted into the high profile stuff that always appear in the media. We forget that there are so many other things we can buy with our money, if we would only search deeper and think out-of-the-box.

Think about buying investments, think about buying alternative low-profile entertainment, think about giving to charity (and ask just how much value your charitable giving of, say a hundred bucks, actually provides to the recipients).

Our money can be turned into so much more than the stuff advertisers tell us to buy. It could bring us more value than if we just fall in with the expectations of society on how we should use the cash.

The next time you hold a dollar-note in your hands, pause and think; open your mind to ALL the possibilities in the world that this one buck can do. Thou Shall Not Waste.

Andrew Chua

Lessons from the Book of Ecclesiastes

2011-04-20T19:10:00.001+08:00

The book of Ecclesiastes was written by King Solomon, the richest man in the history of mankind. But his special gift by God was not wealth, but wisdom. With his wisdom, he explored the mystery of life. These are his findings:-

Ecclesiastes 1

2 “Vanity of vanities,” says the Preacher;
“Vanity of vanities, all is vanity.”

3 What profit has a man from all his labor
In which he toils under the sun?

4 One generation passes away, and another generation comes;
But the earth abides forever.

Vanity. It is no wonder that the chief of the seven deadly sins is Pride. Too much of what we do and what we are after pertains to the ego. We want to prove something to the world. We want to show something. We want to show how incredible we are. But it is all an empty vanity, for in the end we shall pass away like dirt while the universe continues on its way, oblivious to the little speck that once was us.

Ecclesiastes 2

4 I made my works great, I built myself houses, and planted myself vineyards. 5 I made myself gardens and orchards, and I planted all kinds of fruit trees in them. 6 I made myself water pools from which to water the growing trees of the grove. 7 I acquired male and female servants, and had servants born in my house. Yes, I had greater possessions of herds and flocks than all who were in Jerusalem before me. 8 I also gathered for myself silver and gold and the special treasures of kings and of the provinces. I acquired male and female singers, the delights of the sons of men, and musical instruments of all kinds.

9 So I became great and excelled more than all who were before me in Jerusalem. Also my wisdom remained with me.

10 Whatever my eyes desired I did not keep from them.
I did not withhold my heart from any pleasure,
For my heart rejoiced in all my labor;
And this was my reward from all my labor.

11 Then I looked on all the works that my hands had done
And on the labor in which I had toiled;
And indeed all was vanity and grasping for the wind.
There was no profit under the sun.

Grasping for the wind. Try it. Go to the park one day and as the breeze caresses your face, try to capture it. Can you? Of course you can’t. You don’t have to really try it to know that. But to really understand the futility of it all, I urge you to really try it. Try to grasp the wind in your hands. Then you will really understand. All the things we are usually after; none of them can stand the test of time. You try to satisfy the thirst in your soul with houses, mansions, private jets and hotels; it is like trying to grab the wind in your hands. Futile. Because one day you will die and your houses will be destroyed – it does nothing to satisfy you. You are trying to grab an immortality that just cannot be grabbed; an immortality that to us is just like the wind – forever out of reach.

Or maybe you don’t fancy mansions and jets so much. So you fill your life with pleasure; drugs, booze and sex. Our dear King Solomon has tried all those too. With drugs much more potent than any we know, girls more beautiful than any man could wish for. And yet, the thirst in his soul was not quenched. It just got worse, because unlike other men who think that they will be satisfied once they have ‘everything’, this is a man who HAS GOT everything and yet was not satisfied. So unlike others, he doesn’t even have the luxury of the illusion that money and power and sex will solve all his problems.

He owned everything he wanted, and yet he knew he could not own them forever. None of us could, simply because we will die and things will rot. He continued to be frustrated.

18 Then I hated all my labor in which I had toiled under the sun, because I must leave it to the man who will come after me. 19 And who knows whether he will be wise or a fool? Yet he will rule over all my labor in which I toiled and in which I have shown myself wise under the sun.

22 For what has man for all his labor, and for the striving of his heart with which he has toiled under the sun?

23 For all his days are sorrowful, and his work burdensome; even in the night his heart takes no rest.

26 For God gives wisdom and knowledge and joy to a man who is good in His sight; but to the sinner He gives the work of gathering and collecting, that he may give to him who is good before God.

A man may work very hard to accumulate vast wealth. Let’s say he has successfully gathered net assets in excess of a billion dollars in today’s money. How much toil and work and sorrow do you think he had to spend in order to collect this amount? For sure, he would have worked harder and suffered more physical, mental and emotional stress than any average person. But of his billion dollar fortune, how much of it does he actually enjoy? First of all, most of it will be sitting in the bank. Money in the bank obviously is not converted into any form of comfort yet. But of course some of his wealth would have been converted into mansions and jets and cars. But how much time does he spend in them? How many golf memberships would he have? But how many hours of golf would he actually enjoy? Or is the golf course just another place of work and pressure for him? And when he dies, wouldn’t all his money go to his offspring who may be fools of the first degree? A billion dollar fortune is collected, yet he may be living his life wretchedly.

Compare this to someone who works in one of his companies as, say, a middle manager. He earns his living from the billionaire’s enterprises, yet his life may be much happier than the billionaire. He at least has time to spend his earnings, the luxury of really enjoying his food and sleep. It is only when money is limited that we appreciate every single ounce of value it buys.

This is a little trick that God plays on men. If you are someone who is going for wealth and power for all the wrong reasons (ego), God will still allow you to do it. The thing is, He won’t let you enjoy it. Your role would be collecting wealth for the enjoyment of others. You amass the wealth conveniently in one place, then God will distribute it later to the people whom He feels need it. The people who end up enjoying the benefits of your enterprise would be the employees, customers and shareholders. You just do the work for all of them. But this is not to say all entrepreneurs work only for selfish reasons. There are a lot who actually want to make the world a better place through their enterprises. For these people, God will allow them a happy life. As long as you don’t grow attached to your wealth, you will be able to enjoy it.

Ecclesiastes 12

13 Let us hear the conclusion of the whole matter:
Fear God and keep His commandments,
For this is man’s all.

After all his research into the mystery of life, he ends up with one verse as the conclusion: “Fear God and keep His commandments, for this is man’s all”. Personally, I do not see this verse as a specific exhortation to go to church or embrace religion, although that is one of the ways to fulfill it. Rather, it is a more general observation; that man cannot set the meaning of life in himself. It is madness. A man, as well as his possessions, are temporal. They pass away with time. It is crazy to accumulate goodies for yourself and call that the purpose of your life, because once you die, all your work will immediately be rendered pointless. The purpose of man’s life must be set in something bigger. In the most general sense, that something is God. Do your work knowing that you are doing it for God. When you do stuff for God, the point will no longer be ‘what’s in it for me?’. You will work for the sake of work, do a good job for the sake of doing a good job; go where you feel God is calling you, and get paid for it at a rate which will afford you a comfortable life with proper food and a good night’s sleep.

‘God’s work’ does not mean that you must work in the church. It simply means that you listen to what God is trying to tell you, seek out your true vocation, work at it honestly and He will take care of the rest. He will provide. It doesn’t take a whole lot of money to lead a happy life. What it really takes is a humble heart.

And ‘Keeping God’s commandments’ doesn’t mean you have to take out a religious book and start memorizing everything in it. It just means we follow the natural laws which are obvious and follow our conscience. Do not murder, do not rape, do not kidnap, do not lie, do not cheat, do not steal. Be sincere, loyal, honest and diligent.

True happiness does not come from a billion dollars. It comes from knowing that there is Someone out there bigger than you, and that He will take care of you as long as you are willing to acknowledge and submit to Him.

A good song that will drive home the point:-

Andrew Chua

What Makes a Real Man

2011-03-27T23:10:00.000+08:00

What makes a real man? This song sums it up nicely…

The Measure Of A Man

Artist: Elton John
Written by Alan Menken
from Rocky V soundtrack

Lyrics in BLUE
Comments in GREEN

These battered hands are all you own
This broken heart just turned to snow
Go hang your glories on the wall
There comes a time when castles fall
And all that's left is shifting in the sand

You're out of time, you're out of place
Look at your face
That's the measure of a man

This is a man who has come quite a distance. He is no longer a rookie. He has had some wins as well as losses, but also gave up certain things and made certain compromises along the way. Now he finds that it is all not working out. Overall he is far from where he wants to be… He is a failure. His past successes are only fit to be hung up on the wall to serve as mementos; they are no longer helpful in the current situation. There is nothing left. He only has to look in the mirror at his own face to know that.

This coat that fits you like a glove
These dirty streets you learned to love
So welcome back my long lost friend
You've been to hell and back again
And God alone knows how you crossed that span

Back on the beat, back to the start
Trust in your heart
That's the measure of a man

He has run away from his real dreams for far too long, consoling himself and telling himself that he loves his current life. Will he dare to come out and face his fears again? To start again where he has failed before? Will he dare to go back to the start, to pick himself up where he had fallen, to trust in nothing else other his own heart? Does he dare to be a man again?

It's the fire in the eyes, the lines on the hand
It's the things you understand
Permanent ties from which you once ran
That's the measure of a man

The fire is still there, the skill is still there. He still understands what he needs to do; the dreams God had planted in him which will permanently be his life mission. Will he be a man and take them on again?

You've come full circle, now you're home
Without the gold, without the chrome
And this is where you've always been
You had to lose so you could win
And rise above your troubles while you can

Now you can love, now you can lose
Now you can choose
That's the measure of a man

He has walked the journey and ended up right back at the start. He has nothing to show for it; no gold, no glory. But, HE HAD TO LOSE SO THAT HE COULD WIN. What does this mean? It means that it is precisely because he has nothing at all now; therefore he can free his mind from all fears, inhibitions and psychological baggage. He still has what it takes to start from nothing again, while he still can; the time is now. NOW YOU CAN LOVE, NOW YOU CAN LOSE, NOW YOU CAN CHOOSE. He has lost everything once before. The fear of failure no longer holds any effect on him. There is nothing left on this Earth that can scare him. Come what may, he will just take them on now. He is not afraid of losing. He has freed himself to go after whatever it is he loves. He is free to choose whichever path pleases him. As long as he is willing to be a man and stand up again.

-----------------------------------------------------------

Rocky V

The Law of Arrangement

2011-03-08T16:03:00.001+08:00

The other day, I was trying to put a camera and all its cables back into the box. It was late at night and I just finished editing some photos, so I was trying to just stuff everything in and go to bed. But sadly, the stuff didn’t fit. I became frustrated and started to stuff it more furiously. It just got worse. Then finally I gave up my pride and did it the proper way; winding up the cables nicely and putting everything in carefully. Finally it all fit snugly into that tiny box. I even began to feel that it was a little wondrous; how did so much stuff get into such a little box?

The answer of course is that it was specially designed to hold all that stuff, and if everything was arranged properly, it would fit perfectly.

Then it got me thinking. How much stuff can we fit into 24 hours? Do we plan our day properly or do we just violently try to stuff as much as we can but end up not being able to get much done; just like when I first tried to bully the camera box?

When we think more carefully about it, we would find that a lot of our time each day is wasted. There are a lot of unused gaps in between activities, just like the gaps between the cables if you don’t wind them up properly.

For example, let’s say you have three activities for the day:- work, tennis, and meeting a friend for supper. If you don’t plan your day properly, there will inevitably be unused gaps in between these activities. But if you plan well, you may be able to arrange them in such a way that you can carve out an additional two hours or so from your daily schedule; which you can then use for extra work, watching a movie, reading a book, writing a letter or simply sleeping more.

When things are arranged properly; more can get done in less time, more stuff can fit into small spaces, more value can be gotten out of your buck.

Andrew Chua

我今年，二十七八岁。。。

2011-02-17T18:18:00.002+08:00

当我们被社会上无形的压力压得喘不过气的时候
我们渴望有一份爱
渴望每天下班，能有一个人一起吃饭，一起看电影
我们需要有一个人，来为我们分担一些东西
我们在一条伟大的航路上
我们需要有人为我们鼓掌
可能，我们有时累得想放弃
可是当我们想到身边还有一个让我们牵挂的人
我们会深吸一口气，继续往前走
我相信，终有一个能够停靠的地方

明天是我最后一天二十七八岁。二十九岁起的道路，会好一点吗？

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

SUMO (Shut Up, Move On): The Straight-Talking Guide to Creating and Enjoying a Brilliant Life

It’s Not What Happens. It’s How You Respond 重要的不是我们生命里发生了什么事。重要的是我们如何去面对

2011-02-14T17:14:00.000+08:00

Got myself a new book yesterday. It’s called S.U.M.O (Shut Up, Move On).

S.U.M.O (Shut Up, Move On): The Straight Talking Guide to Creating and Enjoying a Brilliant Life

A few pages into the book and I found a nugget of wisdom that bit me hard. It’s actually something I have heard before; but maybe the effect was especially great this time because I really needed to hear it. The concept is simply that it is not the Events which happen to us that determines the outcomes of our lives, but how we Respond to the Events that really matters. It is the reason why people faced with same events can end up with different outcomes.

If we blame hard luck whenever a bad event hits us, we will never improve. The key to self-confidence is the belief that while we can’t control some of the stuff that happens to us, we can control how we respond to them. The belief in that ability to control our responses will greatly boost self-belief and increase your confidence and motivation again.

Because now I Know I Can. I Know I Have Control. I Know I Can Create a Good Outcome.

**********************************************************************

我昨天买了一本新书。书名是S.U.M.O (Shut Up, Move On)。

S.U.M.O (Shut Up, Move On): The Straight Talking Guide to Creating and Enjoying a Brilliant Life

把书带到咖啡厅去，坐下来看了没几面就感觉到它在对我说很多我很需要听的话。

其中最感动到我的原理就是：

我们虽然无法控制很多发生在我们身上的事，但我们能够控制对事情的反应。

不一样的反应会导致不一样的结果。所以，就算发生的不是好事，只要我们做的好，结果还有可能会是好的。

这些道理也许听起来没什么特别，但我觉得在你需要听的时候听到，帮助是很大的。

等你真的相信你能够掌握所有的决定权，能够决定每件事情要如何反应；你的自信就会回来。你会感觉你的生活是由你自己所定。因为要悲观的气馁或乐观勇敢的解决～全由你自己抉择。

Return to Centre

2011-01-30T02:29:00.000+08:00

In badminton as well as many other sports, it is vital to return to the centre of the court after every shot is made. Otherwise we would be left hanging at some awkward spot when the next shot arrives, and it will be difficult to return it well, if at all.

It is the same in life. After each adventure, foray or disaster, it is important to return to the central point of our lives where we could regain our balance and strike out again.

This "centre" could be anything; your family, your job, your faith or a certain life routine which encompasses all of these. It is your life stripped down to its bare minimum; what you cannot live without.

Remember to return to this centre and you would be fine. Forget and you'd struggle each time a new wave comes.

However, the difference between the centre of the court and the centre of your life is that the court doesn't move around while your life is changed each time there is an addition or deletion. So we have to review our life centre every once in a while.

But the point is, without a centre to serve as the anchor of your life, you'd find it hard to regain equilibrium after each failure or success.

Andrew Chua

----------------------------------------------

The Social Network (Two-Disc Collector's Edition)

To Change and Adapt is Not the Same as Giving Up

2011-01-16T19:46:00.001+08:00

There are certain people with a stubborn streak; a never-say-die attitude which helps them to persevere and hold on through bad times and adversity. But when taken too far, this attitude may become a handicap which hinders the ability to make the necessary changes required to adapt to the current situation. The stubbornness will take over the person’s mind; and in the name of ‘perseverance’, the mind will treat all change as threats. It will be as if any change to the way things are currently done is a defeat or setback. Under these circumstances, the mind ceases to differentiate between surrender and mutability.

But it is important to acknowledge that mutability is a form of perseverance, and definitely not its antithesis. For in the worst of times, success or even mere survival will depend on the individual’s ability to go with the flow. To give up the old method is not to give up. To adopt a new way of doing things is also not the same as giving up. Sometimes the only way forward is to retreat a little, then advance again from a new angle.

It is true that when the mind or heart is under attack, its first instinct will be to hold on tight to whatever it currently has in order not to lose even more. But sometimes the ultimate form of resolve is the ability to forge ahead under a new guise with a new notion.

Andrew Chua

-----------------------------------------------------------------

Game Change: Obama and the Clintons, McCain and Palin, and the Race of a Lifetime

The Three Mice

2011-01-03T18:32:00.000+08:00

There are three mice. One is called William. Another is called Edward. The last one is called Paul. The three mice were lined up in a straight line. William was in front, Edward was in the middle, and Paul was at the back.

William says there are two mice behind him. Edward says there is one in front of him and one behind. But Paul says there are no mice in front or behind him.

Why is this? Shouldn’t there be two mice in front of Paul? What happened to them?

…

Answer: Paul was lying.

Stupid joke it may be, but there are things we can learn from it. In life, there are many things which seem very complicated which are actually just very simple. Seemingly unanswerable mysteries may have answers that are unbelievably simple. We maybe speculating that Paul is blind or that William and Edward were abducted by aliens or that Paul was facing the wrong way.

But many problems in life are far simpler than that. It may be caused by someone’s pure incompetence. Or somebody screwed up somewhere and is trying to cover it up. Maybe someone is just plain lying for the fun of it.

Before we try to decipher a riddle using complicated methods, first try the simple answer.

Andrew Chua

Over-Priced People, Over-Priced Stuff

2010-12-14T17:18:00.000+08:00

People are essentially rather dumb beings (myself one of the foremost dumbest). We always fall for psychological tricks that play on our mind. Again and again and again. We buy stuff that are over-priced, employ people who are over-priced, maintain friendships which are over-priced, and get into relationships that are over-priced. And the whole reason behind the issue of over-pricing lies in one single factor. Psychology.

That which many people seem to want are instantaneously allocated a higher ‘price’; regardless of the underlying ‘true value’ of that product / person / thing.

It works the same way irrespective of whether we are talking about clothes or stocks or wives. To make the illustration of the point more interesting, let’s go with the wife example.

Now, imagine yourself to be the mythological ‘Perfectly Rational Person’. Why would you want a wife? Probably for the following reasons:-

To have children for you.
To help take care of your children.
To help with home management; such as cooking and washing.
To satisfy sexual urges (not politically correct, but true nonetheless).
To take care of you when you are sick.

Of course, as a male, you would also have to contribute certain things to the relationship. This is the ‘price’ you pay in exchange for what your wife can give you. You’d probably have to give:-

Physical protection from wild animals and wild people.
Food on the table.
Changing of car oil and light bulbs.
Satisfy her sexual needs.
Just ‘being there’ most of the time.

Now, in this sense, a relationship would be over-priced from the male’s point of view if what he is ‘giving’ is way more than what he is ‘getting’. But the thing is, these mismatches of value happen very often in real life. Nice men get bitches and nice girls get rogues. Why is this? How does this ‘over-pricing’ happen?

It happens because of psychology and emotions. When the emotion known as ‘love’ enters the picture, the individual ceases to weigh the trade-off as a rational exchange, but as something ‘destined’ or ‘pre-ordained’ or ‘from the heart’. The decision making process ceases to be about what ‘utility’ or ‘value’ you can get out from your partner, but from perceptions of value that are set by the general market.

For example, let’s say you are a man who scores highly on the ‘value’ scale; meaning you can provide good protection, much food and much money. It follows that you will be qualified to trade for a partner who scores highly on the ‘value’ scale too.

But this just doesn’t happen. Instead of finding a mate who can give him what he ‘really’ needs, such as helping out with chores and taking care of children, he will choose based on what the ‘market’ would have him think he needs. And the market prizes its players based on things like how sociable they are, how pretty or handsome they are, how good they are at singing, how charismatic they are, how sexy they are etc.

So this guy, who may have gotten a wife who is not very sociable/sexy/friendly but could:-

Cook
Sew
Take care of and educate the children
Work steadily to bring home a second income
Have sex with him three times a week

would instead go for a lady who is highly sociable/sexy/friendly but:-

Can’t cook an egg to save her life
Can’t tell a needle’s point from its butt
Idea of taking care of children is employing a babysitter
Idea of ‘work’ is to diligently spend his income
Too busy socializing and only has sex with him once a month.

Why is this? Because the market said so. People naturally gravitate to those who are sexy and friendly because they are more fun to be with. The more this happens, the more it would seem that they are popular. The more popular they become… wouldn’t you start thinking ‘hey, if she’s so popular, there’s gotta be a reason behind it…’

Of course, there would be people who are sexy and popular and who can be good spouses too. But most of their perceived ‘price’ would come from the ‘sexy’ aspect of their persona rather than their actual ‘usefulness’.

It all gets really ugly when there is a sudden surge of interest in the person, and attention on her shoots to the moon. Guys would be head over heels to be the first to succeed, up to the extent where they have no concern at all for the underlying value; concentrating all their focus on getting the prize first before anyone else can pry it from his hands.

This example should clearly define how this phenomena works the same way with the stock market, designer brands, and luxury goods. I mean, if you were shopping for a bloody bag, would you be more interested in comparing how many different pockets each one has; or would you look to the brands recognized by the market and find safety in their consensus? Most of us trust the market more than we trust our own judgment. We have all failed in this matter a few times before, be it with girls, cars, clothes, or stocks.

Of course, if you are comfortable paying a higher price for something that is essentially lower value, by all means go ahead. Just be sure you know what you are getting into, and that you can comfortably afford it.

Andrew Chua

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Getting Started in Value Investing (Getting Started In.....)

Can Rm 21,000 Last You Three Years?

2010-12-01T14:42:00.003+08:00

Met my friend for coffee last Saturday. We are quite close, but I never knew much about his past. On this day however, maybe due to the incredibly long duration we placed our butts on the chair at Starbucks, fragments of his story leaked out. What impressed me most was the story of how he survived his university days.

His family is not rich, and he had quite a hard time planning for a university education. The only money he took from home for this purpose was Rm2,000 to buy a computer. For other expenses, everything came from an Rm21,000 study loan.

He managed to stretch this amount to cover his tuition fees, rental, transport, and living expenses over three years.

Tuition fees of Rm1,200 for six semesters is already Rm7,200. That leaves him with RM13,800. Rental of Rm90 for 36 months is Rm3,240. So now we are left with Rm10,560 for living expenses, stretched over 36 months. Which is Rm293 per month, or Rm9.46 per day.

Considering that he focused solely on his studies and did not get a job during these three years, we can have an idea of the immense discipline he exercised in order not to exceed spending Rm9.46 per day.

This is truly a good example of managing limited resources. He is now qualified to manage bigger amounts.

After he graduated, he worked in KL for two years and paid off the loan within that time. After that, he went to Singapore to look for job. When he arrived at Singapore, the amount of money he had was 0. He had to borrow the SGD$ 500 rental deposit from friends.

A few years have now passed and he is now a sales engineer driving a swanky Singapore car and I can assure you his bank account is no longer 0.

We all have much to learn from him.

Andrew Chua

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Frugillionaire: 500 Fabulous Ways to Live Richly and Save a Fortune

The Smartest Way to Save: Why You Can't Hang on to Money and What to Do About It

Android OS: Calendars for increased Productivity

2010-11-25T18:51:00.003+08:00

I purchased an Android phone last week and was very impressed. Compared to Apple’s operating system found on my iPod Touch, I found the Android operating system more remarkable. It’s more intuitive and useful; as opposed to Apple’s format which just gives you endless pages of app icons.

I set my Android homepage to show my calendar. The calendar is linked to Google Calendars, which means that whenever I update the calendar through my phone, the online version will also be updated. Therefore, when I access the same calendar on my PC, everything is synced already. The versions on my phone and PC are exactly the same.

This is useful as we may do a lot of heavy-duty planning on the PC where the interface is larger, then be able to have access to all our plans when we are on the go with only our phone with us.

For example, you may have received an email from your boss asking you to do something. Rather than printing out the email and stuffing the piece of paper into your pocket, you just copy and paste the info onto your Google Calendar. Then, when you access your calendar on your phone, everything is already there.

Let’s have a drawn-out example:

1. You surf the internet with your computer, looking for info on what laptop to buy to enable you to play a game which has demanding graphic requirements.

2. You find the system requirements on the game developer’s website.

3. You open your Google calendar with your web browser and find a time slot when you are able to visit the computer shop. You open that time slot and put in the title “Buy PC”.

4. You ‘copy’ the system requirements as detailed on the game developer’s site, then paste it all under the ‘description’ section of the calendar entry.

5. You save the calendar entry.

6. The info is now all also on your phone, which automatically syncs all new calendar entries. Once you open the phone’s calendar widget (which can be placed on the phone’s homepage), the details of your errand which you typed and saved with your PC are all there.

7. When you arrive at the computer shop, all you need to do is to check your phone calendar for the details and you can tell the salesman exactly what you want.

The above is just an illustration of what you can do with the calendar function. There are so many other things you can do with it, for work or home.

Before this, we would probably have to send emails to ourselves and access it through the phone’s email app. It also works, but is messy and the email app has no concept of timing. Plus, the Android operating system is really smooth and easy to use.

You can set your calendar to remind you to renew your driving license in two year’s time and then completely forget about it. When the time comes, the entry will automatically pop up on your phone. And this works even if you change to a new Android phone, because the calendar is saved online at Google’s servers. As long as you log into the phone with the same gmail account, it will show the same calendar.

I found the calendar function to be one of the best aspects of the Android OS, which I highly recommend. My phone is an Acer beTouch e120 which is considered low-end, but even on this low end phone, the OS worked wonderfully.

Andrew Chua

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Getting Things Done: The Art of Stress-Free Productivity

King of Gamblers

2010-11-15T19:30:00.002+08:00

Bicycle Guardians Playing Cards

Migration of Our Publishing Project

2010-11-14T19:45:00.001+08:00

The Jiang Hu Dragons Project

has now migrated to:

Visit our new site HERE.

Thank you for your continued support. Read about the details of the change HERE.

YES 4G Mobile is Coming to Town

2010-11-08T23:23:00.005+08:00

YES 4G Mobile Internet by YTL Group will be launched in Malaysia on 19^th November 2010. So what is it about this service that makes it different from other broadband providers and how would these unique selling points affect users? I’ll try to list out all the important points as per my current understanding of the product:-

· You only need one account. Before we go on, let’s take a look at what the typical internet user’s situation is NOW. To start with, he would probably have a mobile phone with a voice plan for calls and SMS, and a ‘value-added’ data plan for him to surf the internet using his mobile phone. Then, he would probably have another separate broadband connection at home for his PC. With YES however, everything is rolled up into a single account. You can have your mobile phone and two or ten or fifty PC modems all logged in to the same account, and you can surf or make calls or SMS with any of these devices. There is no need to have a separate account for each modem anymore. You can give your wife a modem, give your son a modem, give your daughter a modem; and they’d all be logged in to a single account and you can use them all at the same time.

· It’s faster. 4G promises to be 5 times faster than conventional 3G.

· No minimum fees. With conventional 3G, each plan would have fixed minimum fees which allow the user data usage up to a certain limit. With YES however, you will only have one account and be billed according to data usage.

· It won’t disconnect even if you are moving. With conventional 3G, it is almost impossible to surf in a car or bus or train because the line would disconnect when you move from ‘cell’ to ‘cell’. With 4G, your connection will be uninterrupted as long as you stay within the coverage area (which for now is 65% of the nation).

· Allows SMS and voice calls from the PC. Any device hooked up the network via your account will be ready for voice calls and SMS.

· No SIM card required. None of the devices require SIM cards, which is why all of them can log on to the same account at the same time. The downside of this is that you can only use phones that are specialized for 4G usage. ‘Hip’ models like the iPhone and Galaxy and Desire are not usable on this network.

· The devices available now are: A USB stick that you can plug into your laptop to give it internet access; a ‘Huddle’ device which obtains connection from the network and in turn unleashes a WiFi ‘cloud’ which enables any device within range to go online via WiFi; a modem which also gives WiFi in addition to being a voice phone; and a specialized 4G phone that requires no SIM card.

What (I think) you can do with this new type of broadband model:-

· Have more than one mobile phone, all of which share the same number. You can have one phone in your pocket, one in the car, one on the office desk and one at home. Of course, there is no point in doing this since you can carry the same phone around; but who knows, there might be people in unique situations who would enjoy this feature. For example, you can leave one at home for the kids to use while you bring yours out – without having to open a separate account.

· Have more than one modem, all of which use the same account. As opposed to having many phones, this is probably much more practical and useful. You can have a Huddle in your office, one in your house, and one in your bag which follows you wherever you go. This way, you have WiFi at all the places you frequent without having to plug and unplug the same modem and carry it around.

· Sell WiFi to friends. One of your friends need to access the net urgently? Whip out your Huddle and tell him that he can use your WiFi – for a fee… heheh…..

· Watch YouTube without the frustrating ‘buffering’; 4G promises these kinds of speeds.

What bothers me a bit is the phone that they are promoting for use with their network. It is called the YES Buzz, and it really doesn’t look very attractive. Word has it that they are working on an Android phone. Hope it comes out soon.

Andrew Chua

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Visit: Jiang Hu Dragons - Malaysia's Pioneer Online Novel

A Few Good Apps

2010-11-04T22:45:00.002+08:00

After owning an iPod Touch (basically an iPhone without the phone function) for a few months, I’ve settled into a pattern and found that there are only a few apps which I use heavily and find really useful. (All the following apps work on the iPhone too).

Let’s start with the native apps; that those come pre-installed with the gadget upon purchase.

First off, we have the Mail App. This app is relatively fast and efficient and is a good way to track all your emails. You can get it to sync with your Yahoo!, Hotmail or Gmail accounts and it is very useful to have all your email accounts in one place. Of course, shooting off long emails is not too practical with the small touch-screen keypad. But it’s good for checking up on your mail on the go.

The Notes app is a simple app that allows you to take notes whenever you feel the need to. Handy for noting down flashes of inspiration, 4D numbers, WiFi passwords, bank account numbers, short-term to-do-lists, etc. But the notes aren’t very well organized (the most recently updated ones at the top) so you shouldn’t rely on this for anything important you want to keep long term. The good thing is you can send out the notes as emails to yourself if you need to transfer them to the PC for more organized filing.

Clock. This serves as my alarm clock. Also has World Time at your finger tips. Useful for those in long-distance relationships.

Calculator. I’m an Accountant. Enough said.

Music. Transfer MP3 files from your PC into the iPod and you can have your favorite tracks by your side all the time. The gadget works with any standard 3.5mm jack earphone (the type you plug into your laptop; and the music quality on the earphones is very good). Also, download some podcasts and transfer them to the iPod; and you will have quality audio material with you when you are driving, taking the bus or waiting in line somewhere. BFM has very good podcasting.

Video. Watch videos on your iPod. Most videos we rip from YouTube are in flv format and therefore not playable with the iPod. You need to use Format Factory (a free downloadable software) to convert the files to an acceptable format first.

Dropbox. This cool app allows you to sync your iPod with your PC. Anything you have on your PC’s Dropbox Folder will be saved to a cloud server and consequently be available for download on the iPod; where you can view or play them. How cool is that? Visit the Dropbox website to learn more.

GoodReader. Read PDF files on your iPod. It has a reflow function which converts the PDF document into plain text with adjustable font size. There are many free PDF eBooks available for download on the internet. Use this app to read them. It syncs with your Dropbox account too.

MobileRSS. Import your Google Reader settings into your iPod and you’ll have Google Reader at your fingertips all day long.

Messenger, Skype, Facebook, Twitter. There are dedicated apps for each of these so that you can stay connected to your virtual social network 24/7.

Instapaper. This app allows you to save web pages you view on the PC using a “ReadLater” button. The webpages you save will then be available for reading on iPod in plain text format.

Time Magazine, CNNMoney, BBC, ChannelNewsAsia. Dedicated apps for each of these news sites allows you to be constantly updated. They allow you to download the articles when you have internet connection, and you can access these articles later even when you do not have internet connection.

MyFM. A radio app that allows live streaming for Malaysia’s big radio stations; MyFM, LiteFM, MixFM, HitzFM etc. As long as you have internet connection, this is like bringing a radio with you wherever you go.

Speedtest. Allows you to test the speed and quality of the internet connection you are connected to.

Games; Warrior Nation Blade, Bruce Lee Dragon Warrior, and Asphalt 5. Warrior Nation is a kick-ass version of a Mario-style game that I find immensely fun. Bruce Lee is something like Street Fighter but you fight using Bruce; with all his signature moves and style. Asphalt 5 is a cool racing game with good graphics and smooth controls; but not recommended for those who get dizzy easily.

Andrew Chua

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Jiang Hu Dragons World of Online Novels

Author Ronin Young brings you into the world of the Asian Triads

Are Tablets Worth the Money?

2010-11-02T07:30:00.016+08:00

Was at Maxis today to pay my bill, and was quite surprised to find the place crowded to the brim on a weekday afternoon. I guess they were all there to sign up for the new Samsung Galaxy Tab.

I did some snooping of my own to find out what the Tab does, and this is what i found:-

It is a 7" tablet that runs one of the latest and most polished versions of Google's Android Operating System.
It has two cameras, one in front and one at the back.
It is a phone. Yeah, A gigantic 7" phone that you can either hold to your ear or leave on the desk and speak using speakerphone / bluetooth.
You can get it for Rm1,749 at Maxis on a 24 mth plan (the monthly plan is about Rm100++ and allows quite generous use of calls, sms and data)
And being a tablet, it is great for browsing on the go, reading PDF documents, playing games ala Gamaboy, music + movies on the go, etc.

So, before we decide to fork out Rm1,749 (which is more than some functional laptops cost), let's figure out if such a thing is worth the money. (Of course, if you have money to burn and want a new toy, you can go ahead without performing this exercise - this is for poor chaps like me who have to analyse every ringgit spent =)

Anyway, let's see how such a tablet could bring us value.

Firstly, I would figure that one of the main benefits would be the ability to read PDF / Word / Excel documents comfortably. Before tablets came on the scene, the only way to read PDFs was to use the PC, and it sure wasn't comfortable. Imagine going through a 200-page novel or annual report in front of a computer screen. Either your eyes will tire or your back will break. For a heavy reader like me, this document-reader function alone should have a value of about Rm300.

Then, of course it also serves as a phone, which has a value of... say... Rm200.

It holds a 3g card and also has WiFi connectivy, making it an Internet browser u can bring anywhere. The world in your pocket. Instant Google, Wikipedia, News and Email; not to mention the abiltiy to read blogs and articles in bed. This has to be worth at least Rm500.

Add to that the social media apps like facebook and MSN and Skype; we add another Rm100.

Then there are the games we can play on it to kill boredom when boredom strikes. Frivolous, but lets add a token Rm100.

It plays music and movies. This is a major boon for frequent travelers who find themselves stuck on buses, planes and airports. Add Rm300.

It is also a personal organizer with alarm clock, calanders which can be synced with your calanders on the PC, note-taking apps, and to-do lists. Rm200 at least?

It can serve as a digital camera. Maybe not as good as the bona fide cams, but with this one you can instantly post and share your pictures on facebook etc; no need to transfer here and there with USB cable. Rm300.

Then there are the many other things which may be worth a lot to some people but not worth much to others. Let's just give those 'other' apps a token value of Rm300.

And of course, having all these together inside one gadget would actually enhance the value of each function as they would be able to integrate and complement each other (like using the brwoser to download a document to be read on the PDF reader). Add Rm500.

So, how much is the total utility value of such a tablet?

300 + 200 + 500 + 100 + 100 + 300 + 200 + 300 + 300 + 500 = Rm2,800/-

Therefore, I suppose it's a good buy :)

(Of course, the values I assigned to each function above are just 'agak-agak' figures and you could say I am plucking figures from the air. But I am quite confident that they won't be too far out. For example, A basic stand-alone phone would cost about Rm200 while a basic camera costs maybe about Rm400.)

Andrew Chua

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Jiang Hu Dragons - Malaysia's Pioneer FREE Online Novel

The Number One Factor That Influences Success or Failure of a Business Enterprise

2010-11-01T17:00:00.006+08:00

Yesterday afternoon I had tea with an old friend. We talked a lot and it was a nice afternoon, except that I spilled coffee on myself when we were settling the bill (next time don't fight over who should pay). Anyway, as in many conversations I have with friends nowadays, the topic inevitably turns towards business. It seems that everyone has some intention to leave employment and go into business for themselves.

So, as we were discussing this topic, we analyzed the endeavors of businesses in our locality; determining which ones did well and which one folded, observed some of our friends who were in business , and tried to think what made some businesses flourish while others failed.

After some discussion, it seemed that the successful ones were simply the ones who had the stamina and staying power to slug it out. They didn't sell unusual items, didn't have unique business models, and were involved in businesses that many others have also tried at. The only discernible difference was that they brought more energy, more determination, and more staying power.

Businesses seldom prosper immediately after they are set up. There is often a time lag between an enterprise's start-up and the tipping point at which people start to recognize it. Anyone who gives up before hitting that tipping point simply falls away by the roadside. Those who win are those who just do a very simple thing. They just don't give up.

The most important thing in business is stamina.

Andrew Chua

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Jiang Hu Dragons World of FREE Online Novels

Who Looks Down on Who?

2010-10-31T22:25:00.000+08:00

I woke up late this morning with a hazy memory of a conversation that took place quite some time ago. I couldn't remember who were the participants of the conversation; it could have been some ex-colleagues or friends...

Anyway, the conversation was something like as follows:-

X: Did you give this document to that uncle?

Y: Er, no; I don't think he speaks English, so I didn't bother.

X: You shouldn't look down on people like that you know; just because he isn't dressed well doesn't mean he doesn't know english.

At that time, that was where the conversation stopped; and I didn't think much about it. But somehow, this morning, for no reason something got me thinking about this matter.

Should the conversation have stopped there? Should we go deeper? After some thinking, I figured maybe there is a question X should asked Y in response to the rebuke Y just gave him:-

"Just because I think he doesn't speak English, does that mean I look down on him?"

And the answer to this should of course be a NO. When we make observations about people, we would sometimes base our perceptions on "shortcuts". For example, people of a general 'type' may generally not speak a certain language. These are educated guesses that help us to avoid asking questions to which the answers may be obvious. For example, I probably wouldn't give an Englishman a Hindi document. It won't be because I look down on him, but simply because I don't think it would be of much use to him.

So after some thinking, the person really guilty of the crime of looking down on people is Y, not X. X was simply guessing whether the Uncle spoke English. He didn't make judgments on whether the ability to speak English is good or bad.

It was Y who jumped to the conclusion that people who didn't speak English are to be looked down upon. I mean, just because you think someone doesn't speak English doesn't mean you look down on him right? The ability to speak English is simply an ability to speak a certain language and shouldn't be a measure of someone's worth as a person.

Humans are always very prejudiced and biased and have lots of ingrained ideas that are very difficult to re-program. We should examine our ideas once in a while to make sure we do not hold funny assumptions.

Andrew Chua

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Namewee's latest: Snowing in KL

Namewee’s Documentary; I Wanna Go Home

2010-10-22T03:10:00.002+08:00

Guess what? I bought Namewee’s documentary for Rm24.90. And I just watched it. Was it any good?

The film is not a documentary in the conventional sense; nothing like those on Discovery or Nat Geo where there is a specific subject and specific answers to specific questions. Namewee’s documentary is just a general recording of his journey home from Taiwan to Malaysia by road after his ‘incident’ in 2007. There is no specific objective other than to document his journey and interview some Malaysians living in the countries he travels through.

The film starts with Namewee beginning the journey on 31 July 2008. Munchy’s (the biscuit company) had agreed to sponsor his trip and two of his friends, together with a cameraman, flies over from Malaysia to do the journey with him. His aim is to show the world that there is much more to him than Negarakuku. He intends to shed his misunderstood persona and reach KL by 30 August 2008 to celebrate the National Day countdown at KLCC.

The journey begins and the three friends are met by various obstacles such as failing customs clearance, not having enough money, language barriers and such. They traverse Taiwan, Hong Kong, China, Laos, Vietnam, Cambodia, and Thailand before finally arriving in Kedah. Towards the end of his journey, he muses that after visiting all these places; Malaysia is still the best.

There is also a scene of a giant screen at the National Day celebration venue which shows Malaysian singer Karen Kong singing one of Namewee’s songs; but his friends lament that he is not there to see it (you have to watch the film to know why he wasn’t there).

Although a little directionless at the start, by the end of the film you would feel that you have gained something, though it is not easy to say exactly what. For one thing, the conditions of some of our poorer neighboring countries put into perspective the situation of our Malaysian lifestyle. Others have much more to complain about than us. And another thing the film serves to do is to show that under that feisty exterior he shows to the world, Namewee is a truly talented artiste with mounds of creative (and commercially recognized) work that no one knows much about.

It ends with a bonus track of a song written and sung by Namewee for a local Three Kingdoms game production .

The song is available on YouTube and I post it here:-

Overall a good movie Malaysians should watch. We can see that he is actually a sincere Malaysian who wants a better Malaysia; even if the way he does it can sometimes create discomfort. Oh, and I got his t-shirt too. May get the song album next.

The Documentary (and T-Shirt and Album) are available HERE.

Andrew Chua

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Jiang Hu Dragons Online Novel - Beta Version Now Online!
Check out the Video Trailer:-

Does Doing Nothing Count as a Strategy?

2010-10-21T00:14:00.004+08:00

When faced with life’s choices, does doing nothing count as an alternative? It is a concept which feels very passive and negative. People generally do not include ‘do nothing’ as one of their options. They prefer to be pro-active; to grab the problem by the horns and solve it. Well, at least that’s what they think they prefer; so they consciously list out some options and the list typically does not include ‘do nothing’.

But sometimes they end up doing nothing in the end anyway. The difference here is that instead of treating ‘do nothing’ as a valid option, they have simply done nothing because they have not executed any of the other options; and as such they will not get the full benefits of ‘doing nothing’ as a strategy.

Before we continue on this confusing topic of doing something by not doing anything; let’s use Chess as an example. In Chess there is the concept of ‘Stalemate’ – a situation where you are unable to make a move because any move you make will result in your King being checked. Under such a situation, Chess rules declare the game as a draw rather than as a loss for the player who can’t move. Meaning that, you don’t lose until you make the move that allows the opponent to kill you; and more importantly – you are not REQUIRED to make that move. Under a situation where any move you make will result in a loss, you can choose NOT to move; in effect choosing to postpone the move indefinitely.

This is an important concept we can import to life in general: When faced with a situation where a win is unlikely, play for a draw.

There are many instances where you are not required to go for broke in a win-all-or-lose-all manner. There are many things in life where you can avoid losses even if you can’t win; in effect a ‘draw’. And in many of these instances, you can get that draw simply by not going any further; it is your right not to make a move that will result in your own loss. You have the right to postpone a losing move indefinitely until infinity. Since infinity can be defined as forever/never, it means that you never have to lose that particular game.

A practical example would be when you have some money on hand and intend to enter the stock market and buy some shares. To many people, the moment they have this intention, the question quickly becomes “What to buy?” – skipping the “Should I buy?” part altogether.

If your analysis of the stock market is not very rosy, understand that not buying is also a choice. You have the right not to make the move that kills you. It is the same whether you are buying a car, a house, a vacation or a gadget. You can choose not to.

When situations get stressful and the pressure mounts, remember that ‘do nothing’ should always be on your list of options.

Andrew Chua

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Jiang Hu Dragons - Malaysia's 1st Free Online Novel

BETA Version NOW Online!

A completely FREE Online Novel; a tale of men and women in the dark world of the Asian Triads who embody the spirit, might and ruthlessness of the ancient dragons... Read more HERE.

My New Project – Malaysia’s First FREE Online Novel

2010-10-16T17:19:00.001+08:00

Been rather busy lately with a new project. But it is a busy-ness that invigorates rather than exhausts; because it is an interesting and meaningful project.

It started when a friend passed me a sheaf of hand-written manuscripts. He had a story but he didn’t know what to do with it. He would like his story to be known. But he doesn’t want himself to be known. Any fame and money the story might potentially bring mean very little to him; and he is someone perpetually short of time.

So I looked at his story and after some discussion we decided to release it online. For free. The running costs of the operation will be supported by a line of ‘limited-edition’ merchandize we will release every once in a while.

I've registered a business to house the operation; and in the past few weeks have been busy acting as the Editor & Publisher of our online novel, not to mention being the project’s business manager as well.

We now have the BETA version of the Online Novel ready HERE. The first few chapters are up and more will be added leading to our official launch sometime in November 2010.

We have the following to look forward to in conjunction with the official launch (and beyond):-

We will be roping in a legendary illustrator to illustrate the story and bring it to visual life.
There will be in-depth character profiles and portraits of every important persona in the story.
A line of collectible merchandize will be launched in our specialized store.
The first trilogy of three books will be released one after another. We are currently in the midst of the staggered release of the first book – 2 or 3 chapters a week. At the conclusion of the initial trilogy I will ask my friend if he still has more good stuff in that leather attaché case of his.

We invite you to the soft launch of the Jiang Hu Dragons Online World by visiting our BETA version HERE.

Hope you enjoy :)

Andrew Chua

The Shit We Do On Facebook

2010-10-04T01:52:00.002+08:00

Sometimes, all we wanna do is catch up on news that matter about the people who matter… We login with the intention of, say, sending a message to a good friend overseas… But the moment we get to our homepage, we get accosted by status updates that go something like:-

“Gosh I’m so broke! Just paid 1k credit card minimum payment”

~You’d be tempted to dish out financial advice…

“Damn, damn tulan now!”

~You’d be tempted to ask what’s going on…

“At the airport now… stupid MAS so slow!”

~Well, you really couldn’t care less, but humans being kaypoh humans, you just couldn’t resist but ask where she’s going and how MAS fucked up this time…

Then there are the video links with titles like:-

“Grandmother gets fucked by hamsap dog”

~Could you seriously resist taking a peek?

“Uncle slides on 18 young Japanese beauties covered in body lotion”

~WAH!

“Theme song from WANG Lee Hom latest movie”

~Yeah Lee Hom is my idol, let me just check this out first…

Then there are the links to articles, latest pictures taken by some distant acquaintance at last night’s annual dinner, your primary school friend’s beach outing with people you don’t know, and pictures from a wedding of which the bride and bridegroom you do NOT know…

By the time you commented on 7 status updates, watched two youtubes, and checked out 15 pictures, you are finally ready to send that message to that close friend who is overseas (as we originally intended to do, if you still remember)… but you notice that all your kaypoh-ing had taken 45 minutes… Yeah, 45 minutes before you even BEGIN to write that message… Sometimes it is quicker to pick up a pen and write on paper, put the letter in a real envelope, put a stamp on it and drop it in the mailbox.

Let’s face it... (no pun intended)… FaceBook is a major time waster. Better to call it kaypohbook or something…

The worst thing is, even after we realize how stupid it is, we still keep going back for more of the hamsap dog videos and pictures of weddings of people you do not know… The addictiveness is worse than drugs.

All these comes from the open-loop syndrome. Once we commented on something, the brain records that as “unfinished business” because there might be replies to your comment that would require re-replies. Like it or not, your brain will automatically create all these open files and soon you can’t focus on anything else (imagine opening 50 different webpages and files on your PC; see how many it can take before it crashes).

It’s like being at a thousand-person dinner and having conversations at every table.

I would think that the solution for many of us would be to create another account where we only add people who really matter… Those we speak to in real-life…

Just add your family, two best colleagues, two best yum cha buddies, two best sports buddies, and five or ten of the people you actually ever have meaningful conversations with.

Then, sign in with this “Lite” account most of the time, and only sign in using the “heavy” account when you are sure you have time you don’t mind wasting… Or when you have some shit you want the world to know about and you wanna spam them all.

Unfortunately, this doesn’t come without problems. Firstly, when people see that you have two accounts, they’re going to wise up to what you are doing and feel hurt for being left out of your “inner circle”. Some more optimistic ones will conclude that they are in your inner circle but you just forgot to add them in your busy-ness, and they’ll barge in uninvited.

There are two ways to solve this problem (maybe there are more, but I’ve only come up with two).

The first is to create a new account using the exact same name and exact same profile picture so that no one will know you have two accounts (until the day both your accounts suay suay appear side by side on somebody’s friend list – or when facebook, being the kaypoh that it is, ‘recommends’ people to add you). As we can see, this might work but it is not fool proof.

The second is to create a totally mysterious persona for your “Lite” account that no one would be able to guess at. This would require using a nick-name that is difficult to relate to you. For example, if you are usually the macho man-man type, you can create a profile that is named Pink Lily and put a profile pic to match. Other names like Powerpuff and Pink Panther might work too. Only the people who are actually in your inner circle would know who you are. And you have to remind them not to divulge your secret identity in some public comment.

I’m going to try this myself… Hope to have a peaceful life without hamsap dogs after this.

Andrew Chua

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Books on Amazon.com ship worldwide:-

The Facebook Effect: The Inside Story of the Company That Is Connecting the World

The Accidental Billionaires: The Founding of Facebook: A Tale of Sex, Money, Genius and Betrayal

Getting Things Done: The Art of Stress-Free Productivity

PennyAuction; Money-Making Genius

2010-09-21T18:28:00.003+08:00

Ever seen one of these ads on Facebook? Well, I clicked on one and discovered a website that really "impressed" me. It’s called PennyAuction.com.my.

It works like this:-

The website is an auction site pretty much like eBay or Lelong.com. But the difference is, with eBay it is free to place bids and you just have to pay whatever the final closing price is. But with PennyAuction.com.my; you need to pay for a right to bid. The price of one bid is RM2. If you buy large amounts of bids, each bid will be discounted to RM0.80. But for the purposes of this article, let’s just say that you have to pay 2 bucks each time you bid, in addition to the final closing price.

Every time someone places a bid, the price will up by RM0.01 and the countdown timer will reset and the next bidder must bid within a minute or else the auction will close. That means, if you bid and no one bids after you, you win.

You may be asking yourself; why would I want to bid here if I have to pay to bid and then pay the final closing price too? Wouldn’t I be better off on eBay? Well, the answer lies in PennyAuction’s guarantee that the closing price will never exceed 50% of the regular retail price of the item. If it exceeds, they will refund the difference.

I suppose this makes it a really sweet deal for many, as I saw bids coming in non-stop at the live auctions page.

Here is an example of a recently closed bid:-

A new iPod Touch worth RM829 closed at RM53.85. Yeah, good deal isn’t it? Savings of 93%!
Let’s say I paid 2 bucks for that winning bid; my total cost is still just RM55.85.

But just wait a minute; if the closing price is RM53.85, just how many bids were there for this item?

RM53.85 / RM0.01 = 5,385.

Yes, that is Five Thousand Three Hundred and Eighty Five Bids.

5,385 x RM2 per bid; and we can see the users spent a combined total of RM10,770 to buy a RM829 thingy. Profit margin = 1,199%.

And do you think you could win this auction by submitting a single bid when so many people are just staring at the screen waiting to pounce in? You’d be luckier with buying 4d. You definitely need to submit numerous bids in order to win an auction.

Here’s another recently closed bid:-

3,347 bids for a RM1800 thingy.

Profit margin = 272%

If this not a case of money-making genius, what is?

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Amazon Books Ship WolrdWide:-

The Accidental Billionaires: The Founding of Facebook: A Tale of Sex, Money, Genius and Betrayal

Awareness Test

2010-09-18T23:53:00.002+08:00

Please watch the following video and try this at least once... I promise you won't regret it...

Amazing huh? I guess this offers a good explanation of how the financial crisis happened... And a whole host of other problems as well...

A Game Plan

2010-09-15T23:19:00.002+08:00

Knowledge is good. Learning is good. Education is good. But if these are not put into action, their benefits are severely restricted.

And regardless of the subject, whenever we want to put something in action, we need a game plan.

We will take the most obvious example; a game plan for a game. Let’s use… tennis.

Now, if you were a tennis player, tennis knowledge and education would consist of things such as how to hit serves, forehands and backhands. But to put these into action to WORK IN YOUR FAVOR, you need a game plan.

Imagine yourself entering a tennis court with no thoughts. You just get in; and hit forehands when the ball goes to your forehand side; hit backhands when it lands on the other side. Where will this leave you? No matter how good your strokes are… chances are you’d lose the game to an opponent who has a game plan, even if his strokes suck.

Now, imagine yourself in the shoes of that opponent who’s strokes suck. Let’s say you have a functional forehand and a barely existent backhand. How are you going to win? You need to play your cards right; that is, take an inventory of your resources and map out an action plan on how to put them into… well… action.

So you say to yourself:

“I will try to use my forehand as much as possible, and try to runaround when the ball comes towards my backhand.

I will try to place my shots as far as my opponent as possible to make him run.

I will try to run down every shot and get everything back across the net.”

Very simple plan, but at least it gets all the player’s resources deployed towards a single objective. And mind you, this player with this simple plan is going to win quite a number of games, as opposed to the guy who just gets in and hits balls.

It is the same with investing. It doesn’t really matter if we do not know too many complex theories. The important thing is that we have a clear plan of how to put the few simple, safe and useful things we do know to work.

First, take an inventory of the resources you have. How much money can you set aside each month for investment? How much time do you have to do research? From where would you get your research info? How and when will you buy your investments?

Once this simple game plan is set, try not to tinker with it too often. It will only distract you. (Imagine a tennis player changing strategies after every shot – you need time before you can tell whether something is working). Tweak it only after there are results for you to measure.

Or if you are a more active trader, then you need to have a daily plan: what is your strategy for making money? What time will you track your investments each day? Under what circumstances will you buy or sell? Set rules for yourself; these will become your game plan that guides you. Without it, it does not matter how much research and reading you do. Without a proper plan for their implementation and execution, it will all be for naught.

(For a guide on how to set up the simplest of investment plans, you can check THIS out…)

Andrew Chua

Strokes of Genius: Federer, Nadal, and the Greatest Match Ever Played

Sun Tzu for Investment; Calculation of Victory

2010-08-25T14:59:00.007+08:00

The Art of War; Chapter 4, Verse 17:-

“In respect of military method, we have, firstly, Measurement; secondly, Estimation of quantity; thirdly, Calculation; fourthly, Balancing of chances; fifthly, Victory.”

How do we convert this wisdom for use in Investment Decisions?

Measurement

This pertains to obtaining all the known factual information on a certain investment; measure the cost, measure the returns per year, measure the cost of financing etc.

Estimation

This relates to estimating the variable factors with regards to an investment; estimate the growth, evaluate the industry outlook, etc.

Calculation

Now, put in all the known factors and all the estimations into your formula.

EG: Return on property investment:-

=[ (Rental per year / Cost of Property) + Estimated Capital Growth per year] – Financing Cost

=[(80,000 / 1,000,000) + 5%] – 6%

=8% + 5% - 6%

=7%

Balancing of chances

Compare the various alternatives available. Evaluate the risk and returns of each. Choose the one that has the best balance of risk and returns.

Victory

The Art of War; Chapter 4, Verse 15:-

“Thus it is that in war the victorious strategist only seeks battle after the victory has been won, whereas he who is destined to defeat first fights and afterwards looks for victory.”

By the time you actually make the investment after all the above preparations are made, victory should already be all but assured. There shouldn’t be any need for sleepless nights and worry. Sit back and wait for victory.

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Books on Amazon.com ship worldwide:-

The Art Of War

物以稀为贵 (That which is scarce is valuable)

2010-08-18T23:54:00.009+08:00

That which is scarce is valuable.

That which is freely available is cheap.

In business;

Efficiency, good service, cost control and reliability are scarce.

Talk of big plans, marketing hype, aggressive selling and uncontrolled spending are common.

It is therefore the scarce characteristics that are valuable to the businessman; the common is cheap.

In investment;

Proper research, studying a company’s accounts, reading heavy material and a conservative approach are scarce.

Gambling, speculation, buying on tips and wanting fast returns are common.

It is therefore the scarce characteristics that are valuable to the investor; the common is cheap.

In life;

Patience, foresight, humility and perseverance are scarce.

Envy, pride, impatience, and giving up are common.

It is therefore the scarce characteristics that are valuable to a person; the common is cheap.

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Books sold on Amazon.com ship worldwide:-

One Hundred Unorthodox Strategies: Battle And Tactics Of Chinese Warfare

The Essence Of War: Leadership And Strategy From The Chinese Military Classics

StarCraft 2 - Now Out!

2010-07-30T19:45:00.002+08:00

During my college days, StarCraft was THE game. Countless nights were spent playing this game on LAN with friends. Now StarCraft 2 is out. Wonder if it will provide the same level of entertainment. Am expecting nothing less...

Watch the trailer:-

Check out the gameplay:-

Buy the Game!

Starcraft II: Wings of Liberty

Guaranteed Way to Become a Millionaire (Seriously)

2010-07-25T20:26:00.005+08:00

In order to become a millionaire, you'd need the following:-

1. $2,000 per month.

2. 20 years of time

3. An investment vehicle that would net a return of at least 7% per annum.

By adding $2,000 per month to an investment returning 7% p.a.; after 20 years (240 months), you would have a nest egg of $1,047,931.

Provided you can find the above investment, the above method will guarantee that you eventually become a millionaire. Of course, not everyone can afford to sock away $2,000 a month. But 2,000 a month is still a whole lot more manageable than the dizzying figure of $1,000,000.

And I believe that with some frugality, effort and perseverance, many of us would be able to sock away that 2k. After all, the installment payment for an average car would already likely cost you more than 1k a month. Giving up a little here and there will definitely help you achieve your goal.

I prepared a spreadsheet showing the monthly investment balances, which can be downloaded HERE.

And finally, what investment would be able to generate 7% a year while being able to preserve (or even grow) the capital element? Dividend stocks and REITS would be a likely candidate. Read more about REITS HERE.

Sometimes, the simplest things work best.

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Books on Amazon.com ship worldwide:-

Dividends Still Don't Lie: The Truth About Investing in Blue Chip Stocks and Winning in the Stock Market

Real Estate Investment Trusts: Structure, Performance, and Investment Opportunities (Financial Management Association Survey and Synthesis Series)

Investing in REITs: Real Estate Investment Trusts: Third Edition (Bloomberg)

Hong Kong Tour Guide Forcing Tourists from Mainland China to Buy Stuff

2010-07-25T19:54:00.001+08:00

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Hong Kong & Macau (City Guide)