Top 7 Investors in the World, 4 are from Malaysia. Warren Buffet No.7

World Top Seven Investors. If you read their track records, excellent job done. I wish my return can come close to these seven top investors in the world. Still have a lot to learn from them.

Number Seven.
Warren Buffett. He made more than USD60 million for the past 50 years. I think that excludes billions that he has donated away. Great investor for so many years.

Number Six.
Although we always hear of Warren Buffet, but he lose to Carl Icahn. He is an American business magnate, investor, activist shareholder, and philanthropist.From 1968 through 2011, Icahn grew his original $100,000 investment in his firm at a 31% annual rate, while Buffett's Berkshire Hathaway had "only" a 20% annual growth rate.

Number 5.
But both of them still lose to George Soros in ONE SINGLE DAY CATEGORY. His September 16, 1992 transaction, when he made a single-day gain of $1 billion dollars.

Number 4
But Soros loses to a Malaysian guy by the name of Mr Dummy who made 107%profit in 2015. Soros only increased from USD23 billion to USD24.9 billion, a mere8%.

Number 3
But Mr Dummy loses to moneySifu who made more than 20% in 2016, while Mr Dummy is making 8.5% lose in 2016.MoneySifu is a Malaysian.

Number 2
But moneySifu loses to a pretty lady called Michelle (not her actual name), a branch manager who I met in an optical shop last weekend. She is a Malaysian too. She made 87% within two months from 1000 units of JHM stock worth RM720 and sold RM1350. Her brother in law suggested her to buy JHM. 

Number 1.
Who is the best? Michelle's brother in law? Her brother in law is only driving an old local car. He is a Malaysian.

 
The list can go on and on. Therefore:

A)Don't compare and be sad/envy. Compare and see how we can be improved, should be happy. Learn from them.

B)Don’t WORSHIP great investors.

1) Those who made high percentage, maybe invested smaller amount than you, just like Michelle.

 
2)High percentage may be just selected years. Look at Mr Dummy 107% gain in 2015, negative 8% this year while many are making good profit in 2016. Great investor, but maybe he has no time to look for new stocks or review his stocks and hold on too tight. Have learned a lot from him.

3)For those who made high percentage % and invested a lot, they still lose to Warren Buffett, because Buffett made more money than anyone. But Warren Buffet lose to Carl Icahn. And the winner is Michelle’s brother in law who is driving an old local car. The circle keeps continue until no end.

 

4)Some make 60% from their spare cash, but you make 17% from your total portfolio. You are better.

5)Some invested almost all their net-worth and made 16%, whereas yours only part of your net-worth and made 17%.

 

6)Some are from rich family, the first trade is already RM20,000. Whereas some started with RM800.

Great investors have their own weaknesses. Learn from them, but don’t worship them.

When am I rank? The world has 7.4 billion people now, and I’m rank 3,700,000,001. Slightly above average.

Stock Market is a good place to make money. Happy Investing.

How to spend $10,000 in a month?

                      $       Balance
Salary                           10,000
EPF               1,100           8,900
Tax                    860            8,040
Kindergarten        790      7,250
Day care              430      6,820
Child Activities      200     6,620
Car instalment      650     5,970
Car Maintenance  400      5,570
Petrol                         420     5,150
Parent                       1,000   4,150
Insurance                1,050     3,100
House                     1,300     1,800
Market/Grocery       450     1,350
Phone                         210     1,140
Electricity/ water       150      990
Toll + parking             150      840
Management Fee      200      640
Office Lunch              440      200
Weekend                     200         0  

Below are expenses simulations of an average middle class family.

Salary husband $6000 and wife $4000, total $10,000.
BALANCE $10,000
.

DEDUCTIONS AND EXPENSES:

EPF $1,100 and Tax $870.
BALANCE $8,040
.

Kindergarten $790
Two kids. Youngest kindergarten plus day care, morning until 6.45pm. Nobody take care of him after morning class. $240 is morning class and $550 is day care plus lunch plus tea time. Slightly expensive because only one centre at the location that closes at 7pm+. Sometimes office a lot of things to do and late in picking up child. 
Unable to cut this expenses.
BALANCE $7,250.
.

Primary day care plus tuition $430
Eldest child in primary school afternoon. Morning nobody take care, so send to day care + tuition at 7.30am, $380. Afternoon the centre will send the child to school. $50 is to cater food from school canteen, eldest child still young, easier and no need to bring pocket money. About the same expenses if buy from canteen.
Unable to cut this expenses.
Balance $6,820
.

Child Activities $200
$100 per child, one swimming, one badminton. See most parents also give their children learning some extra activities. Hopefully one day they will be like Lee CW or Misbun Sidek. Shall cut this expenses?
BALANCE $6,620
.

Car Instalment $650
Instalment for most common local car, Myvi, for husband. Wife 10 years old Kelisa. If finish paying Myvi, then is time for wife to change car. Not really want to change, but if too old the repair cost also will be killing the owner and not reliable. Use public transport? Need cars to rush to pick-up children. Sometimes last minute husband need to stay late, sometimes wife, so need two cars.
BALANCE $5,970
.

Car Maintenance $400
Husband every 3 to 6 months normal service in Perodua service centre, every few visits is the centre say major service. $300 to $600 per service. But sometimes change tyre, brake, absorber, brake discs skimming, and many other things plus labour cost. Sometimes the bill can be close to $1000. Average per months is $100 for service and $100 for general maintenance and repairs.

Wife normal service is cheaper but repairs are worse, sometimes engine oil leaking, oil seals, overhaul, rims, and many other things plus labour cost. Always got a lot of things to repair. Wife monthly average also same $200.

Major repairs will be at other workshops. No matter which car, when we ask “ don’t change or don’t repair can or not?”, the replies are always the same, “can, but dangerous, especially if you on highway”.
No buying of unnecessary accessories.
BALANCE $5,570
.

Petrol $420
Husband $260, wife $160
BALANCE $5,150

Parents Monthly $1,000
Husband two parents and wife two, total four. Average giving about $250 per parent. Can reduce the amount?
BALANCE $4,150.
.

Insurance $1,050
Husband $450. Wife $350. Each child $125.
Not really can cut because husband got high blood pressure and any new insurance will have extra charges. If don’t buy full coverage now, any sickness will not be covered if detected before buying. Government hospital service is not good, example asking us to do kidney dialysis 3 times a week at private centre, and visit doctor have to wait weeks or months to book an appointment.
No education plan.
Shall cut this?
BALANCE $3,100
.

House Instalment $1300
Purchase cost $250,000 basic condo with only swimming pool. 1,000 square feet. Now also hard to get at this price.
BALANCE $1,800
.

Market and Grocery $450
About $110 per week. Market for cooking dinner Monday to Friday, fruits, grocery buying toilet paper, cooking oil, canned food, sauce, broom, detergent, kitchenware, gas, milk powder, biscuit, eggs, milk, cereal, bread, washing powder, and normally the bills from hypermarket are very long and expensive.
BALANCE $1,350.
.

Phone $210
$75 x 2 persons = $150.
3.5 years change phone $1,260. Per month is $30. X2 = $60
BALANCE $1,140
.

Utilities Bills $150
Electricity and water bills are standard. Very seldom watch TV or use laptop. No Astro, computer and Wi-Fi. No thermos flask/microwave, 1 room aircon 25 Celsius 10pm until 3pm, living hall once a while one hour aircon if very hot, 2 water heaters lowest temperature without pump, one washing machine and fridge. Most are florescent light (long lasting) and some energy savings lights (not long lasting always spoiled).
BALANCE $990
.

Toll and Parking $150
Wife office parking $120 per month.
Balance $840
.

Condo management Fee $200
This is expensive. Previously was $120. Many tenants didn’t pay, and only two blocks to share the costs. Unable to do anything, unless move to a new place. Now property prices are very expenses.
BALANCE $640
.

Office Lunch $440
22 days X $10 per day X 2 persons. Normal cheap meal is $6 to $7. One week one or two times eat Nasi Lemak for breakfast X 2 persons. One or two times a week lunch with drinks. Sometimes colleagues say enjoy a bit, sometimes got birthdays, eat $15 to $20 and sometimes buy small cakes. Sometimes buy for tea time. Most of the extras are ‘sometimes” only. Average is $10 per day.
9 days $6 = $54
9 days $7 = $63
2 days $15 = $30
2 days $20 = $40
Total 22 days working days in a month, $187

5 days per month Nasi Lemak breakfast $8
6 days per month lunch with drink $8
4 days per month tea time $8
2 days per month drive out parking $6
$3 for GST and service tax in some restaurants.
Total $220
BALANCE $200
.

Weekend $200
Many activities during weekend, so eat Nasi Campur / Mixed Rice outside. Husband and wife $5 x 2 persons = $10. Kids $2.50 X 2 persons = $5. Total food per day $15. 4 persons if eat 3 bowls of noodles $7 X 3 already $21 and more than $15 budget.
4 persons, each person $2.50 for other expenses per day during weekends, total $10. This is to cover the food budget >$15 per day, pay parking, buy some drinks if finished the tumblers/bottles from house, kids sometimes want ice-cream, buy $5 of fruit, rojak, roti canai, or tart when visiting parents.
($15 + $10) X 8 weekend (days) = $200.
BALANCE ZERO

BALANCE ZERO

BALANCE ZERO
.

The above are just the fixed expenses, and excluding the followings:

No Astro and no Wi-Fi.
Parents medical expenses, they use their own money plus pocket money given to them.
Buying new clothes.
Buying expensive toys examples Lego and cartoon movie trademark toys.
Starbucks.
Health supplements
Cannot afford to smoke and drink alcohol.
Cannot afford direct selling products.
Vacation, local or overseas.
Occasions, examples father mother grandparents children relatives and friends birthdays, weddings, funerals, house warming.
Buying electrical items, either new items, spoiled or upgrade.
House maintenance, eg re-painting, pipe inside wall leaking.
Festive seasons expenses.
Branded goods, eg bags, shoes, shirts, dress.
No expensive restaurant and no normal restaurant also. If eat outside, eat noodle, chicken rice or mixed rice. No ordering dishes.
No helping others, eg giving money to someone in need.
No investment.
No emergency expenses.
Etc Etc..

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Why we should buy shares in November

History tells us stocks now are entering what normally is their strongest period for gains. But some investors worry that this year, current events could outweigh history.

Over the past 100 years, the best three-month stretch for stocks has been November through January. On average, the Dow Jones Industrial Average records strong gains in all three months, jumping 1.5% in December alone, according to Bespoke Investment Group.

The S&P 500 shows a similar trend since 1928, the period for which data on that index are available. It has risen an average 3.4% over the three months, nearly double its 1.86% average gain for three-month periods in general.

Many money managers hope to see that now, even though stocks aren’t cheap.

“The fact that stocks in the U.S. are a bit stretched, which they are, doesn’t prevent them from moving ahead in the next three to six months,” said Russ Koesterich, chief investment strategist at BlackRock Inc., which manages $4.32 trillion.

Stocks have risen despite high prices all year. They rebounded from sharp pullbacks in January, April, July, September and October. The Dow is up 4.9% for 2014 and the S&P 500 has risen 9.2%, with both at record highs.

Investors offer several reasons for the November-to-January strength. Year-end is when many companies record their biggest sales, as consumers spend on the holidays and businesses invest in equipment for the new year. And January is when some retirement funds put fresh money into accounts.

But the higher stocks go, the more skittish investors become. The S&P 500 has almost tripled since its 2009 low and trades at 18.7 times component companies’ net profits for the past 12 months. That is well above its long-term average price/earnings ratio of 15.5, Birinyi Associates calculates.

With investors sitting on big gains, they are quick to take profits when they face anxiety about slow global growth, tensions with Russia or expectations the Federal Reserve will raise interest rates next year. So far, they have overcome their worries, most recently because of positive earnings reports, better U.S. and European economic numbers and a huge new Japanese stimulus program.

The risk is that investors could sell again if they get more bad news about earnings, the economy or global tensions.

“There are so many things that could shock markets that I think are very fully valued,” said Michael Farr, president of Farr, Miller & Washington, which oversees $1.1 billion in Washington. “I would caution investors to make sure they have a seat when the music stops.”

Mr. Farr has focused on conservative stocks that tend not to fall as heavily in downdrafts, avoiding stocks such as Facebook Inc. and Twitter Inc., he said.

There are reasons for worry: The pullbacks’ frequency has increased, and the October one was particularly sharp. And other types of investments are signaling that the world economy remains troubled.

Investors are holding large sums in the relative safety of U.S. Treasury bonds, which has kept bond prices high and yields low. The appetite for Treasurys reflects doubts about the global economic and political outlook.

With the Fed ending its long-running bond-buying program and preparing to raise target interest rates, many bond experts thought Treasury yields had to rise. But after starting the year at 3%, the yield of the benchmark 10-year Treasury note finished Friday at 2.335%.

Oil shows a similar pattern. Crude-oil futures finished Friday at $80.54 a barrel, down 18.2% for 2014 and off 11.6% in October alone. Soft oil demand is widely seen as a sign that China’s economy is slowing, crimping its need for raw materials. Industrial metals have behaved similarly.

Corporate earnings also could be better. With two-thirds of big companies reporting, their profits are up 7.3% for the third quarter. That is above the 4.5% analysts projected at September’s end, but below the 8.9% they expected in June, said John Butters, senior earnings analyst at FactSet. The results look good mainly because analysts cut their forecasts, notably in the weak energy and financial sectors.

“Overall, the numbers have come down and the companies have turned around and beat those estimates,” Mr. Butters said.

Analysts now are cutting estimates for future sales and earnings, at a time when investors believe companies need to boost sales to keep record profit margins up. Analysts now forecast 2.6% fourth-quarter sales gains, down from 3.8% forecast at the end of September.

And yet, money managers see reasons for optimism.

In addition to stocks’ normally strong performance from November through January, stocks also do well following off-year congressional elections and at the end of lame-duck presidential terms. That is true even when stocks have risen a lot in the previous year or two. Stocks also often advance when Washington is gridlocked, said Bespoke Investment Group’s co-founder, Paul Hickey.

And slow earnings and economic gains aren’t necessarily bad, especially if they hold down interest rates, inflation and wage gains. Capital costs and wages are two of the biggest expenses companies face, and keeping them low boosts profits.

“This slow, grinding growth, with very low interest rates and not much in the way of wage gains” is why profits are so high, said Mr. Koesterich of BlackRock. “Margins are a lot higher than people thought they would be, and they are staying there.”

“We could lose some steam as the Fed starts to raise rates” next year, he added, especially since Congress isn’t likely to spend on economic stimulus. But even then, he said, rates should remain so low that they shouldn’t derail the market.


By  E.S. BROWNING
The Wall Street Journal

Durex Special Condom for Pre Mature Ejaculation

Every time we meet with this remisier friend, he always talks about three things: i)asking us to buy very big TV, ii)Viagra; and iii)said those with pre mature ejaculation can try using Durex special condom.

I’ll explain to you what he said and then I will relate it to stock market.

i)Buy very Big TV

He suggested us to buy very big TV, because most of our entertainment at home is on TV. Every day we watch Astro, news, DVD, all on TV. Besides sleeping, the whole family spend a lot of time on TV, regardless of age, small kid watch cartoon, grandparents also watch TV, men normally like watching sports, etc. Due to the above reasons, he said TV is a very good investment, use it every day and can last for few years.

ii)Viagra

He told us Viagra good. Not just good for those with erection problem, but also for those who cannot sustain erection during love making. Actually Viagra is a popular brand and most people know about it.

iii)Durex special condom for pre mature ejaculation
He told us for those with pre mature ejaculation, can try Durex special condom, called Performax, Performa, Pleasure Max, Performax Intense. Don’t know why he said got different name. Inside the condom there is something to numb the penis head and delay ejaculation. He said very effective, delay ejaculation without feeling the numb and without losing the sensation feel. What is inside the condom is similar to what the dental use inside the mouth to numb our gum during dental treatment. So if it is safe inside our month, then is safe on men’s penis. He said it is not available in Malaysia, but can be bought in Singapore or can buy via online.
 

======= 

I relate what he said to stock market.

 

i)Buy Big TV

This is similar to invest big in stock market, because just like the TV, it is a good investment and we should look at long term, buy and invest big and keep for few years.

ii)Viagra

When we buy stock, many times the stock does not move up, this is because the stock lack of Viagra, or in stock market we called it catalyst. Catalyst is something (can be news, buying interest, project, speculation, rumour, etc) that push up the stock price. I wanted to write a topic on catalyst, but I myself still have not really been able to identify stock with catalyst or Viagra.

iii) Durex special condom Performax

After making 10% or 20% gain from a stock, many people will sell it. Normally sell it too early, so we called it pre mature ejaculation. Now no, hope people will keep and make 100% or 200% or more. When we invest in stock market, we need to wear Durex Performax, and not to sell too early. Continue and enjoy the price increase and dividend. Note: A reader told me in Malaysia there is a pill called Priligy, may help. No details on that.

=====

In my blog, I always relate our daily lives with stock market, eg Kung Fu vs Stock Market, 4D vs Stock Market, apply BCG Growth Matrix in stock market, apply 6 thinking hats in stock market etc.

Hope you enjoy reading and benefit too.

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Do YOU agree with ME?

Look at the following and see whether you agree with me.

I always hear people say don't convert the currency. For example, they say in Singapore the cost of living is very cheap, eg food, chicken rice only S$3.00, but in Malaysia is RM5.00. 5 is more than 3, so they say Malaysia is more expensive than Singapore. But I say if I convert S$3.00 X 2.5 will be RM7.50, more expensive than RM5. However, they always disagree with me, asking me not to convert. Keep saying $3 is cheaper $5 and they like to make the statement "you work there you spend there".

I can't accept this. I told them if UK selling at £2 (RM10), and Indonesia selling at 7000 Rupiah (RM2.24), meaning UK cost of living is lowest and Indonesia cost of living the highest? Cannot be right? But they still refuse to listen, keep saying you work there you spend there. Actually more 20 friends, relatives or family member always saying that. No one is on my side.

For me, we need to convert, but also need to compare with income. For example 12 years ago my friend with a degree started working,  got offer from Singapore with S$1,500 pay and his Malaysia job offer him with RM2000, doing similar job. Assuming now starting pay S$2000 , and Malaysia is RM2700, I don't know the figure, just assuming. Chicken rice S$3.00 is 0.15% of S$2000. In Malaysia RM5.00 is 0.185% of RM2700. A better way is to use Per Capital Income.

Then if you tell me Singapore cost of living is lower because chicken rice only cost 0.15% of salary but cost 0.185% in Malaysia, I will accept.

Stop telling me "DON'T CONVERT, YOU WORK THERE YOU SPEND THERE".

Thanks.

How to measure success in stock market?

How to measure success in stock market?
There are many ways to measure success in stock market. Success here means gain from trading in stock market or gain from shares or share price movement. Someone made $2 million, may not be more successful than someone who made $1.5 million. Refer to the list below and you will have more understanding.

In measuring success in stock making, it can be measured based on the following:

Total money made
Someone who made $2 million is more successful than someone who made $1.5mil.

Percentage return

The higher the percentage gain, the more successful. Example if Mr A invested $10 million and made $2 million (20%), compare with Mr B invested $0.5 million and made $ 1.5 million (300%), Mr B is more successful.

Consistency

Mr C made 30% per year for two years and then never touches stock market anymore. Mr D makes average 25% every year for the past 15 years, then Mr D is more successful where Mr C’s track record is not proven yet.

Portfolio Performance (stock and cash) rather than just Stock Performance.

Mr E’s stocks value increased from $50,000 to $80,000. Cash $5 million.
Mr F’s stocks value increased from $50,000 to $70,000. Cash $10,000 only.
Mr F is more successful because with total portfolio of $60,000 ($50,000 stocks and $10,000 cash) he managed to increase $20,000 or 33%.
Mr E with portfolio of $5.05 million, only managed to increase $30,000 or 0.59% only.
 

Total Profit in comparison to Personal Total Net Worth

Mr G is a rich man with $100 million net worth, he made only $100,000 from stock market.
Mr H is an average working class worker with $200,000 net worth, he managed to make $80,000.
Mr H is more successful in stock market.

Time needed.

Mr I made $100,000 within 10 years. Mr J made $100,000 within 5 years only.
Mr J is more successful.

Effort Needed

Mr S just look at some simple research figures and made $50,000 within 5 years.
Mr T made deatailed study, attended seminar, do detailed analysis, buy and sell many times, and made the same $50,000 within 5 years.
Mr S is more successful.
 

Age

Mr K made $100,000 within 10 years, Mr K now is 35 year-old.
Mr L made $100,000 within 10 years, Mr L now is 34 year-old.
Mr L is more successful.

Tips

Mr M’s tips are more accurate than Mr N.
Mr M is more successful.

Actions and Result

Mr O’s tips are more accurate than Mr P, but Mr P made more money than Mr O because Mr O talk only, no action, he himself seldom buy. Mr P is more successful.

Economy and Stock Market Index

Mr Q made 200% from year 1992 to 1996.
Mr R made 200% from 2007 to 2011.
Mr R is more successful because from 1992 to 1996 the economy and stock market index perform better than from 2007 to 2011. More easy to make money from 1992 to 1996 than from 2007 to 2011.

CONCLUSION

The list can actually goes on and on.

You can see that it is very difficult to measure who is more successful.

If I tell you now that I have made $5,000, it does not mean that I am less successful than someone who made $6,000. It does not mean that I am more successful than someone who made only $4,000. Many factors need to be considered.

Some people may make less from stock market because they use their money to invest in other investments which make more money than stock market, example in their own business, property, or gold, and some may want to invest more in their children by giving them better education, food, care, etc.

I’m not saying that we cannot compare. If we want to compare, please bear in mind that there are many factors involved, and direct comparison is almost impossible.

  

Articles you may like:

Reason Why Squash is Not in Olympic
http://politemarket.blogspot.com/2012/08/reason-why-squash-is-not-in-olympic.html

Promotion: Cheapest Brokerage $0.20 per trade in Bursa Malaysia

http://politemarket.blogspot.com/2011/12/promotion-cheapest-brokerage-020-per.html

6 Thinking Hats to Improve on Stock Market Performance

http://politemarket.blogspot.com/2012/02/6-thinking-hats-to-improve-on-stock.html

How To Use BCG Growth-Share Matrix to Invest in Stock Market

http://politemarket.blogspot.com/2012/08/how-to-use-growth-share-matrix-to.html

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Reason Why Squash is Not in Olympic

Which sports will be in the Olympics are determined by the International Olympic Committee (IOC). Factors to consider include whether it is widely practiced around the world. Many sports are in and out of Olympics since the Games started.
The 2012 Summer Olympics in London have 26 sports and two additional sports will be added to the 2016 Summer Olympics in Rio.

One sport, can further divided into several disciplines, sometimes being commonly refereed to separate sports. For example Aquatics has five disciplines, 1) Swimming, 2) synchronized swimming, 3) Diving, 4) water polo, 5) open water swimming

A Discipline can further divided into several events, and each event a gold medal is actually awarded.

The two sports that will be added into the 2016 Olympics are Golf and Ruby Seven.

Bowling, Squash, Snooker, Karate, etc will not be in the 2016 Games.


Why Squash is Not in Olympics?
The committees are mostly concerned about the difficulties in televising the sport. Camera angles are difficult and hard for audience to see the ball. Also, the argument between referee and players.

The Squash Committee has made some changes and hopefully the sport will be in the 2020 Olympics games.

Changes:
1) Glass Floors and wall
2) New scoring system
3) Extra referees
4) Video replays inside venue


Now that with High Definition (HD) camera/ TV, it overcomes the concern that TV viewers unable to see the ball.

With World Champion Nicol David from Malaysia, I think most Malaysian will want Squash to be in the Olympic Games.

I want to say that Datuk Lee Chong Wei did a very good job, so close. I think we should not have the mentality that we can only win our first Olympic Gold Metal via Squash. With so many countries managed to do it, I think Malaysia Boleh.



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