George Soros and Warren Buffett are the world's most successful investors. Can ordinary investors learn anything from their investment habits? John McCrone finds out.
Two more different approaches to investing could hardly be imagined. One plays the markets, the other ignores them. One can be in and out of deals over a weekend, the other likes to buy and hold forever.
Yet the pair are the world's most successful investors. Some may have more wealth from starting businesses or inheriting riches, but none – till corporate raider Carl Icahn finally snuck into their ranks in 2004 – have earned more from wheeler-dealing in the markets.
Warren Buffett, a 76-year-old from Omaha in midwest America, has made more than US$44 billion (NZ$69 billion) with his Berkshire Hathaway Group through an uncanny knack for spotting bargain companies.
Mr Buffett has averaged 25 per cent a year growth since he first started managing funds in 1956, having just one losing year compared with the 13 years of negative returns in the United States stockmarkets.
George Soros, a Hungarian Jew born in the same year just 18 days apart from Mr Buffett, has amassed a more modest US$7 billion, having started rather later in his career as a speculator in the currency and futures markets with his Quantum Funds.
Mr Soros – the man who broke the Bank of England when he gambled on the devaluation of the pound in 1992 – has averaged a return of over 28 per cent a year and $1000 invested with him in 1969 would have been turned into $5 million today.
Can the ordinary investor learn anything from the stories of these two? Australian investment newsletter writer Mark Tier thinks so.
........................
For the full article
Cheers
Niversphere.
Investment success like the masters
Steve Irwin
I will remember Steve Irwin. Steve Irwin affectionately known as the Crocodile Hunter was nothing of a hunter himself but a naturalist and an environmentalist. He gets across his preserving wildlife and embracing Nature through its own humourous ways. I remembered in one of his interviews with Animal Planet, he mentioned that it was probably his expressive facial features that captured the audience attention and he was proud and honoured to be doing the job he is doing now. He mentioned that if he were to be ever killed by a crocodile 'Crikey' would be undoing all the work he has done so far.
From the videos that he shot, I can sense the kind of passion and respect that he has for his job. Climbing sandy dunes and hills in the outback. I remembered there was a scene where he got his hand injured after falling from the hill and got stabbed by a thorn in his hand. He bravely plucked it out and was professional in carrying on with the show. That really was professionism and bravery.
His family oriented behaviour by getting his whole family involved. Being a busy man with a thick schedule to meet is not an easy task. I can see his affections for his wife, the trust and understanding between man and wife. He brought along his little girl on several episodes.
All the work he has done was for wildlife.
I am deeply saddened by his death. To end at such a relative young age of 44. A man carrying out noble deeds. Life is cruel and sometimes can be unfair. I hope his work would be carried on and his messages to the world about his work be remembered by all.
Steve Irwin, I will remember you always.
Regards
Niversphere.
YouCan Product Testing
Bought some YouCan products after some keen recommendation from readers of my blog. I adopted the scuttlebutt approach on both OSIM and Want Want before and now for YouCan.
This is the all that was displayed at my local supermart. Visually counting, there are only 4 types of YouCan products on display. A tad disappointing in my opinion. This is it!
Below is the box of ice cream that I bought. The management highlighted that they needed a change in packaging as wordings are largely in Chinese characters. So what is stopping them from taking action ? I wonder. 
If you done a comparison between the picture that was imprinted on the packaging and the one that was half eaten by me. You will notice the difference. Did you notice it before I told you ? 
p.s: The strawberry bits.
The ice-cream was well received by my female counterpart. In fact, before I had the chance to have a taste test on it. One of them was gone.
For those with a sweet tooth, this ice cream is a heaven blessing. It has a tinge of sourness when you eat some of its strawberry bits though.
Interested? Maybe its time to buy some for your partner.
Cheers
Niversphere.
The Art Of Compounding.
How about initial $5 BET with odd 1.6? You can be millionaire in 27 days. Never show hand bet in your life.
DAY - $ BET x ODD = $ WIN
1 - $ 5.00 x 1.6 = $ 8.00
2 - $ 8.00 x 1.6 = $ 12.80
3 - $ 10.40 x 1.6 = $ 16.64
4 - $ 16.64 x 1.6 = $ 26.62
5 - $ 26.62 x 1.6 = $ 42.60
6 - $ 42.60 x 1.6 = $ 68.16
7 - $ 68.16 x 1.6 = $ 109.05
8 - $ 109.05 x 1.6 = $ 174.48
9 - $ 174.48 x 1.6 = $ 279.17
10 - $ 279.17 x 1.6 = $ 446.68
11 - $ 446.68 x 1.6 = $ 714.68
12 - $ 714.68 x 1.6 = $ 1,143.49
13 - $ 1,143.49 x 1.6 = $ 1,829.59
14 - $ 1,829.59 x 1.6 = $ 2,927.34
15 - $ 2,927.34 x 1.6 = $ 4,683.74
16 - $ 4,683.74 x 1.6 = $ 7,493.99
17 - $ 7,493.99 x 1.6 = $ 11,990.38
18 - $ 11,990.38 x 1.6 = $ 19,184.61
19 - $ 19,184.61 x 1.6 = $ 30,695.38
20 - $ 30,695.38 x 1.6 = $ 49,112.61
21 - $ 49,112.61 x 1.6 = $ 78,580.18
22 - $ 78,580.18 x 1.6 = $ 125,728.29
23 - $ 125,728.29 x 1.6 = $ 201,165.26
24 - $ 201,165.26 x 1.6 = $ 321,864.41
25 - $ 321,864.41 x 1.6 = $ 514,983.06
26 - $ 514,983.06 x 1.6 = $ 823,972.89
27 - $ 823,972.89 x 1.6 = $ 1,318,356.62
Took this from an online source
Just for fun for the weekends.
Cheers
Niversphere.
Fung Choi Media Group : Keeping Faith With Value, Ignore The Noise.
Highlights:
· Broad-based demand, leading to strong contributions from existing and new
businesses: Group revenue grows +47% to HK$843.7 million.
· Robust demand for printing and packaging services and products:
Printing and packaging revenue +31.8% to HK$618.2 million.
· Higher circulation and advertising revenue from magazine portfolio:
Newly acquired Flying Media records advertising and distribution revenue growth of
88.3% to HK$197.7 million.
· Part year contribution from newly formed display marketing business:
Display marketing revenue contribution of HK$27.8 million.
· Net Profit attributable to shareholders +28% to HK$163.1 million.
· Strong foundation for growth amid buoyant economic conditions:
Group is optimistic of business prospects in FY2007
Media Release
Full Year Financial Statement And Dividend Announcement.
I released to some readers my analysis on Fung Choi. I felt it was inappropriate to release my analysis here as it would warrant unwanted attention.
Rumours were wild, false accounting practices, accounting irregularities and huge provisions made for such actions.
I held my stand based on value DCF evaluation, my personal experience in the printing industry and past stock market knowledge. I dont see any rumours of the sort I have hearing recently. Average down , average down was ringing loud in my ears. The discount was too attractive for a value investor like me to ignore.
"Buy on rumours, sell on facts."
I just reached home and am delighted on first glance the results that were released. As usual, I will do the sums and come up with the revised analysis on Fung Choi.
Cheers
Niversphere.
p.s: I hate Mondays!!!
---------------------------------------------------------------
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.
Google Finance
SGX Announcements
Yahoo Finance!
LongCheer :: Highlights to Make
Generally for handset designers and makers, the 3Q is the strongest and the 4Q is the weakest. LongCheer achieved 81% QoQ increased gross profit which is impressive. YoY gross profit increased 123%. I expect competition to intensify and gross margins might dipped a little. It has maintained a good cash position of RMB450 from RMB 429.9M previously mentioned. Trade receviables decreased 17% to RMB 41.1 M.
Inventory turnover improved to 19.7 days from 26.5 days which is huge improvement, I would like the the inventory turnover to improve further. As highlighted before, staffing has increased further to 700 at the end of FY2006, no comments.
“We expect the mobile phone market to remain buoyant in the financial year ahead. Given that mobile phone penetration rates remain low and replacement demand is becoming increasingly high, we maintain an optimistic outlook on the Group’s prospects. Now that we have established a strong presence in the Chinese market, we are well-positioned for a new level of growth in the overseas market as well,” commented Mr Tao.
My Investment Philosophy
I would seriously like to see LongCheer venture overseas out of its doors to North America or Europe just like TechFaithWireless.LongCheer had a collaboration with a local company for a certain Linux PDA smartphone model. Apparently, we are not receiving more positive news from this company. Well.(FYI: I tried smartphones built on different platforms for comparison, and my ratings are Windows, Linux then Symbian OS.)
Some people highlighted the fact that the management has stated that FY07 will be moderate. I had to say management was wise to lower shareholder expectations as such rapid growth is simply too good and difficult to substain. I remain higly optimistic on LongCheer.
By current price, PE ratio is a low single digit of 7.2, strong cashflow position, expanding R&D staff force, ambitious management, leaders in its own industry, building up higher barriers of entry by vertical expansion and acquiring edge technology, implementing 3G network and style conscious Chinese consumerism.
Based on my DCF model, eps growth rate of 20% and discount factor of 5% which yields an instrinsic value of S$1.93 which is 16x PE ratio which is more in line with its peers PE ratio of 15 to 20.
BlogCharm
Cheers
Niversphere.
---------------------------------------------------------------
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.
LongCheer ::.. Benefiting from style conscious Chinese consumerism
PRESS RELEASE – FY2006 RESULTS
SGX-LISTED LEADING CHINESE MOBILE PHONE DESIGNER LONGCHEER HOLDINGS DOUBLES FULLYEAR EARNINGS TO RMB 224.5 MILLION
Revenue grew 155% to RMB 1,984.0 million; net profit
doubled to RMB 224.5 million (S$44.8 million)49.5% dividend payout ratio; proposed final dividend of 1.56 Singapore cents per ordinary share, on top of 4.16
Singapore cents in interim and special dividends for FY2006
Financial Statement and Dividend Announcement
LongCheer Media Release
As mentioned in my earlier post, LongCheer is in a good cash position and management has rewarded loyal shareholders with another generous dividend payout.
TA vs FA on LongCheer
Technical Side of 3G Rollout in China
............
LongCheer could be the closest proxy to the widespread rising style conscious consumerism of the Chinese in PRC and also hitch onto the rising adoption of the mobile lifestyle in China. Mobile handsets has practically been unirreplacable part of our lives. Can you imagine going out without your handset? It's as if we are born with handsets(obviously not I was born with pagers. Just joking). My first mobile was the Motorola StarTec X , then Nokia 6650, Nokia 6610, 3 Samsungs, 2 Sony Ericssons and now the lastest addition SE W810i. Imagine the mini fortune, I had spent on phones. Maybe you might not change handsets as often as I do. I work on them for research and development though. I would like to highlight the current widespread spending generation of Chinese. The need for a better quality of life. Not to be caught dead pulling out a outdated phone model from your pocket. Chinese are particular about the face-value factor. Laughs.
LongCheer is a relatively new listing here in SGX. So far, its results released has been impressive. LongCheer achieved y-o-y sales and earnings growth of 102% and 69% respectively in the 3Q06. Gross margin improved from 16.1% to 19.1% q-o-q driven by new products. Staff size has grown considerably from 300 to 600 which bodes for further expansion.
LongCheer is deeply undervalued given its rosy growth prospects. LongCheer has a cash position of RMB 429.9M and I expect another generous dividend payout from the company. CIMB-GK has a TP of S$1.59 while DBS Vickers has a fair value of S$2.00 for LongCheer. Currently, I have a fair value of S$1.20 for LongCheer which is approximately 67% undervalued from the current share price of S$0.71.
Possible Customers & Rivals of LongCheer
I will have a detailed calculations later. Looks fantastic on first glance though.
Cheers
Niversphere.
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.
Work on your own strengths
This is afterall also a blog on personal development. I have such a site to recommend to motivated readers.
Personal Development for Smart People
Hear this
DanielXX said...
Bravo! Figure out your competitive advantage, build assiduously on it and eventually you will succeed as people recognise your value-add. That's what I always believe.
Cheers
Niversphere.
Ausgroup :: Fantastic Results
Ausgroup :: Tapping on Aussie Development
Full Year Results and Announcement
Media Release
Based on my DCF calculations, I have updated the target price for Ausgroup to $0.75.
Today's share price of 0.36 is approximately 108% undervalued from the rough estimate of intrinsic business value.
Cheers
Niversphere.
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information.
Forex Trading and Ambition
Came across this website written by Grace Cheng and is amazed by the ambition of this woman. I am like her, never afraid to boldly state out our ambitions in life. To those who are reading my blog, you are probably just as ambitious as me. People can say that its greed that pushed me, they can say whatever they want. Hypocrites ! We all have this clear goal in our minds and we are not going to falter to those losers.
Life constantly pushes us around everyday, and there will come a time when you look back in life. Smile and punch the air and say "Yes"!
Stay ambitious !
"Do not adjust your goals to bring them in line with your life. Adjust your life to bring you in line with your goals. "
Power Forex Trading
Hetty Green - By DanielXXX
p.s: I have a youtube video link in my previous post that briefly introduced hetty green. Check it out.
Cheers
Niversphere.
Providing an Insight into Hedge Funds.
Inspiration from the smog in Hong Kong and providing an insight into Hedge Funds. Personally, I accept the fact that I know close to nothing about hedge funds before this. Enjoy the weekend read.
Cheers
Niversphere.
Some links:
Magnum Funds
Fraternity Fund
Articles from Hedge Fund Association
Hedge funds attracting more interest from Singapore investors: experts
SGX to accept listing of hedge funds from Thursday -28 Jun 2006
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Investor Questionnaire by Vanguard:
Link
Possible Customers & Rivals of LongCheer
1. Daxian Telecom
2. Gionee
3. PhoneTech
4. TCL
5. ZTE
6. Konka
Competition:
1. TechFaith Wireless
2. SimCom
3. Yuhua
4. KeJian
Let it be known that LongCheer is one of the top 5 leading design and manufacturing house in China.
Cheers
Niversphere.
TA vs FA (LongCheer Holdings )
Technical Analysis:
Chart Request for LongCheer Courtesy of Quest.
Fundamental Analysis:
Technical side of 3G rollout in China
Cheers
Niversphere.
This is what I call excellent Investor Relations from HengXin
As promised, i will post the reply I got from HengXin regarding their patents.
Dear Niversphere
We represent Hengxin Technology as its IR/PR consultant.
Thank you for your interest in the Company. Hengxin Technology has received 3 patents in the PRC for its super-flexible coaxial cables and leaky coaxial cables, and are in the process of applying for another 5 patents for its products and manufacturing equipment.
I've attached the relevant pages from its IPO prospectus with the details of the patents. If you have any further queries, pls feel free to contact us.
Many thanks
May Nah
May Nah, CHIN
August Consulting
Tel: (65) 6733 8873
Fax: (65) 6733 9913
Hp: (65) 8139 7083
Cheers
Niversphere.
Attachment received: Attachment
Technical Side of 3G Rollout in China.
As we all probably already know, China is impending a 3G rollout. Probably readers are not as familiar as the implementing 3G network that is to be rolled out in PRC as I am. My field of interest and research is in mobile communications and networks.
There are many standards of the IMT-2000* and the one that China is probably going to implement is the TD-SCDMA standard. A collaboration of the China Academy of Telecommunication Technology (CATT) and Siemens Corporation.It's mode of operation is the DS-CDMA (1.1136 Mcps) using the TDD(time division duplexing)duplexing method. The key features of this standard is that the RF channel bit rate is up to 2.227Mpbs. Use of smart antenna technology is fundamental (but not strictly required) in TD-SCMA.
The current system employed in China is still the GSM standard, which is what we folks here in Singapore use currently. M1 tried to introduce CDMA here way back which i could remember but failed. What a pity. The wireless subscriber growth in China is a phenomenon. See here. Research firm, BDA China, forecasted the number of 3G subscribers in China to grow at a compound annual growth rate (CAGR) of 268 per cent from 2006 to 2010. By 2010, the number of 3G users will hit 210 million, accounting for 34 per cent of the total number of the phone subscribers in the country. The number of the total mobile users is expected to grow at a CAGR of 9 per cent from 2005 to 2010 to hit 617 million.
The TD-SCDMA standard relies on its existing core GSM infrastructure. Just by adding a high data rate equipment at each existing GSM station, you can implement the 3G network. As mentioned earlier, a key fundamental feature of the TD-SCDMA system is the antenna. The radio channels are 1.6KHz in bandwidth and rely on smart antenna , spatial filtering and joint detection to achieve several times more spectrum efficiency than GSM. As such this standard TD-SCDMA is easily implemented and inexpensively added into existing GSM systems.
Some industry pundits expect China to build networks based on the world's 2 most popular 3G standards, the WCDMA standard in Europe and CDMA 2000 which is backed by US Qualcomm Inc with the TD-SCDMA technology being used for support rather than a standalone system.
Let me make a bold prediction here, China will implement their own 3G standard, TD-SCDMA. Research started in 1998 and the proposal approved in 1999. Chinese pride is involved here, we have all seen how proud they are when they successfully launch to space.
Now lets discuss on how we can take advantage of this knowledge in investment. Knowledge of the technology behind it can be advantageous to a savvy investor. "Know what you buy ...." A recent report by leading Chinese financial portal, CNFOL.com estimated that around RMB 172 billion will be spent on 3G networks rollout in 2006 and 2007, and 70%(RMB 120 billion) of this investment will be wireless coverage related.
I have identified 3 companies listed in SGX as potential beneficiaries of the 3G network.
1. Ace Achieve
2. HengXin Technology
3. LongCheer
1.Ace Achieve
---------------------------------
I have covered on the fact that Ace Achieve is currently undervalued compared to what the market has given for its price. Ace Achieve provides customised solutions to its customers and is involved in business of installing of repeaters** for its customers. Ace Achieve's book order continues to look strong however net profits is lower. Being a small company, it is being bullied into having to give credit to its customers which is why high book orders dont really translate to higher share prices. However, an interesting point I observed is that the book orders are for GSM repeaters. This could lead to some interesting possibilities. Notice the fact that TD-SCDMA can be build over existing GSM system. Probably, the mobile operators are sliently confident on TD-SCDMA being implemented in PRC. And why not ? The phenomenon subscription rate has pushed the mobile operator to expand its coverage needs to satisfy their customers.
My Fair Value on Ace Achieve
2.HengXin Technology
---------------------------------
HengXin Technology is one of the most easy business to understand and is positioned to take advantage of the growing telecommunication industry in PRC. HengXin's core business is in the manufacture of coaxial cables used in mobile communications and other telecommunications equipment.
HengXin is enjoying the largest market share in the PRC of around 35 percent for the manufacture of coaxial cables for mobile.
Looking ahead >>>>>>>>>>>..
> HengXin is immensely successful in passing on higher cost of copper to its customers.
> It has increased its annual production capacity of RF coaxial cables to more than 30,000 km. Further consolidating its dominance!
> Expanding sales and marketing network to Chengdu, Chongqing, Wuhan, Urumqi and Hehehaote before the end of the year. We have already seen its initial success with a foreign Korean company. This is definitely very exciting development. Wow.
> HengXin planned to expand its product range to include accessories like connectors and antennas so as to provide customers with a one-stop valued added manufacturing service.
> Plans to leverage on its 3G compatible products to enhance its market share further in view of the anticipated issuance of 3G licences this year.
All these are positive developments for HengXin Technology moving ahead. Single product multiple applications in demand.
It's major customers can be categorised as following:-
i) Major telecommunications operators - these include the various branches or subsidiaries of China Unicom, China Mobile, China Telecom and China Netcom.
ii) Equipment manufacturers - these include Huawei Technologies Co Ltd, ZTE Corporation, Siemens (China) Limited, Lucent Technology (China) Co Ltd, Shanghai Bell Samsung Mobile Communication Co Ltd, Shanghai Datang Mobile Communications Equipment Co Ltd and Nortel Network (China) Co Ltd.
iii) Cable television networks - these include the cable television network and broadcasting stations in the various provinces and cities.
My Fair Value on HengXin Technology
3.LongCheer
-------------------------------------------
LongCheer could be the closest proxy to the widespread rising style conscious consumerism of the Chinese in PRC and also hitch onto the rising adoption of the mobile lifestyle in China. Mobile handsets has practically been unirreplacable part of our lives. Can you imagine going out without your handset? It's as if we are born with handsets(obviously not I was born with pagers. Just joking). My first mobile was the Motorola StarTec X , then Nokia 6650, Nokia 6610, 3 Samsungs, 2 Sony Ericssons and now the lastest addition SE W810i. Imagine the mini fortune, I had spent on phones. Maybe you might not change handsets as often as I do. I work on them for research and development though. I would like to highlight the current widespread spending generation of Chinese. The need for a better quality of life. Not to be caught dead pulling out a outdated phone model from your pocket. Chinese are particular about the face-value factor. Laughs.
LongCheer is a relatively new listing here in SGX. So far, its results released has been impressive. LongCheer achieved y-o-y sales and earnings growth of 102% and 69% respectively in the 3Q06. Gross margin improved from 16.1% to 19.1% q-o-q driven by new products. Staff size has grown considerably from 300 to 600 which bodes for further expansion.
LongCheer is deeply undervalued given its rosy growth prospects. LongCheer has a cash position of RMB 429.9M and I expect another generous dividend payout from the company. CIMB-GK has a TP of S$1.59 while DBS Vickers has a fair value of S$2.00 for LongCheer. Currently, I have a fair value of S$1.20 for LongCheer which is approximately 67% undervalued from the current share price of S$0.71.
Cheers
Niversphere.
================================================
Please read the prospectus and perform your analysis before making any investment decision. The above does not constitute a recommendation to apply for this company. I will not be liable for any losses incurred by anyone who invests based solely on the above-mentioned information
Terms used in this article:
**Repeaters: often used by mobile operators to provide dedicated coverage for hard to reach areas, such as buildings, or in valleys or tunnels. They are bidirectional in nature, and simultaneously send and receive signals from a serving base station.
IMT-2000: The standard for 3G cellular networks is called IMT-2000(international mobile telecommunications beyond 2000). IMT-2000 is the overall name for the 3G standard under ITU(international telecommunication union).
References used:
1)Wireless Communications Principles and Practice 2nd Edition by Theodore S. Rapport
2)Principles of Wireless Communications and Data Networks 2nd Edition by Benjamin PremKumar and Cai Jianfei.
News Articles:
1)Siemens sees delay in China 3G licenses to H1 '06
1)UPDATE: China Mobile Feb Growth Outpaced China Unicom
HengXin Technology showing executionary, recognition and ambition.
HengXin Technology has since executed its executionary capabilities we expected of it and has been rather busy delivering good positive news to fellow investors. After my analysis of this company dated June 30th, several analyst has since released their analysis on HengXin Technology.
17 June 2006: JiangSu HengXin Technology granted tax exemption for 3 years.
17 June 2006: First major overseas contract with Korean-listed Taihan electric.
18 June 2006: China Mobile increases its contract with HengXin Technology.
Announcement
Regards
Niversphere.
Focus
Video interview of Warren Buffett in 3(1 hr) parts:
Google video : Heard it from the man
Focus.
Cheers
Niversphere.