《20 / 80 時代 智富路》- 劉創楚

《20 / 80 時代 智富路》- 劉創楚

The name of this book "20/80" means the top 20% of people get a larger and larger proportion of income.

This book includes philosophy of financial management (i.e. financial planning, asset allocation, modern portfolio theory by Harry ), the principles of investment( i.e. compounding, business philosophy, value investing) and investing management ( i.e. panic investing, theme investing)

Frankly speaking, the author just makes the ideas a little bit complicated (especially the first half of the book), but the underlying concepts are easy to understand, he can actually keep them simpler. But overall, it is a good book with rich contents; I like the second half of the book more since it briefly tells the situation of China. I just get a feeling that China is running on a similar road of previous HK.

Points to note:

-force saving, live below your means

-buy index fund instead of the financial products of the bank to save transaction cost and selection effort

-be alert to the saving rate of different banks

- Government bond vs. cash (bond > more protective against inflation rate)

- Prerequisite of focus investing > you know well about what you are investing

- What determine the return ( 91.5% asset allocation, 4.6% selection, 1.8% timing)

-stock market (the longer the time, the lower the risk)

-Gini Coefficient 堅尼系數 ( assuming that there are ten people, if GC =0, everyone can get 10% of total income. If GC = 1, one person gets all the income) HK is now 0.43 ( year2009)

-either good at choosing the best timing or selecting the best can make you succeed

4 rules to pick good companies by Peter Lynch
1) research on the company should be done continuously

2) the company should be as simple as possible ( Warren “you should invest in the business that you know very well")

3) Niche (others cannot follow and can differentiate with the others and others cannot easily enter the market to compete with you)> "business franchise with profit royalty due to some historical factors - people have inertia to it >>mentioned by Warren" e.g. Wall Street Journal, Cola coke, HKEx, China Mobile

4) Earnings

-Peter Lynch "good companies must have good performance in long term but may not in short term"

*******

-Warren Buffett "there is no fast track to earn a lot, being rational is needed" "a share in a business" " acquiring a good company (consider the time factor to predict its future ) with reasonable price instead of acquiring a bad business with low price"

- Warren " picking stocks in the banking and insurance industries > focus on good management> must be good at controlling risk and cost, asset allocation"

- Victor Sperandeo " preservation of capital> consistent profitability> pursuit of superior returns">risk management

-Benjamin Graham "value investing> know the intrinsic value from fundamental analysis > waiting for the business cycle>margin of safety

3 main parts of value investing
1) Business - ability testing ( simple and understandable business) , operating testing ( time is the indicator), prospect testing ( natural franchise without the control of government)

2) Financial status - ROE ( + consider the liability) , marginal profit ( net profit) , $ 1 test ( if the company reserve $1 revenue instead of giving dividends and the stock price cannot increase $1, then the investing ability is not high)

3) value - find out the intrinsic value of a company ( cash flow + the growth rate of return) and compare with the current price

-Tony Measor " The investor may gain even the stock price doesn't increase in short run> shares replace dividends> investors can get more shares if the stock price is low (ROE + increasing dividends> indicator of good companies)

-how to position in the bear market > don't do expectations but make use of the volatility of stock price

- the features of the bull market 1) historical high price 2) low dividend rate> lower than bond rate 3) everyone plays in the stock market 4) many companies including the bad ones issues IPO

-3 insights of an investor (1) money making outside HK not inside, don't focus on stocks in property industry 2) take advantage of china's economic growth 3) find business franchise)

- appreciation of Reminbi harms manufacturing industries (unemployment, company’s bankruptcy) and stability of financial market but benefits “cheap Reminbi” industries including exported add-valued industries

- How to deal with the “crash” created by appreciation of Reminbi > revolution of tertiary industries

-the economic transformation of China> turn to heavy industries/ high-tech industries ( it is hard because it requires creativity)

6 trends in China

1) Stable & high economic growth rate with less volatility (around 8.5-10%)

2) The end of the era of cheap labour ( due to one child policy in 1979)

3) Inflation in China ( HK is facing the dilemma of high inflation rate but low interest rate ( due to linked exchange rate system of US Federal Reserve Board)

4) The end of the leading manufacturing industries > >tertiary industries

5) Balance of trade ( reduce trade surplus and thus reduce the conflicts between trade partners)

6) The end of fixed rate of Reminbi

《香港溫布頓》- 蔡東豪

Wimbledon HK《香港溫布頓》- 蔡東豪

I knew this book from Mingpao website and this book was also read by 曾俊華.

It is an inspiring book which tells how the author thinks about maintaining the status of financial centre of Asia and overcoming the challenges. With the unique opinions of the author, readers can know more about the prospect of HK financial market.

The author is actually quite positive about HK's future although Chinese government intends to boost Shanghai as another financial centre. However, the general environment in China is now still immature (i.e. government policies, controls over the financial market ( the over-intervention in the stock market harms the basic rules of market mechanism)and the quality of investors, conflicts of interest ). Thus, HK can still take a free ride of the boom of economy in China.

How to maintain the status of financial centre and overcome the challenges:

1) attract more foreign talents to HK financial market

2) protect and improve the brand of our financial centre status by enforcing fair & strict internal controls to differentiate ourselves from Shanghai

3) accept the " Wimbledon effect"

The author promotes the market mechanism ( efficient/self-regulated market with few government interventions) and he thinks that protectionism is the emeny of economic growth ( the name of the book includes the word " Wimbledon", it refers to " Wimbledon effect" - Britain holds the well-known tennis competition in Wimbledon every year but rarely one british won the competition. However, this competition brings huge capitals, employment oppportunities. This reminds me of the phrase " the winner in the curse" ) With reference to this phenomenon og the London global financial centre status, the top financial institutions are foreign companies since they indirectly raise the quality and bring new ideas to London financial market

4) maintain the fair game rules of the financial market >" survival for the fittest", one can get reasonable rewards according to his ability > so the phenomenon of wide gap between "Haves" and "Have-Nots"(i.e. wealth gap) should not blame on the fair financial market and government should not hamper the growth of financial market with the excuse of wealth allocation ( you rarely see a mediocre with a brilliant family background survives in multi-national investment bank)

5) maintain a mature and "energetic" stock market with high liquidity, huge and fast info flow

6) simple-structured financial products can reduce unneccessary risk

I remember Prof. Wong said that bond market is not popular in HK because we all like gambling :) The author gives me a new insight > government and entreprises do not have a culture to issue bonds, banks can already earn a lot of money relying on the property industry and it is no need to rely on high risk debitors...therefore, the supply ( from banks) is suppressed.

As for the inactive commoditiy market, HK is not the place of production/ agglomeration, the investors are also unfamiliar with it.

7) improve the fairness of financial market >replace the primitive method with electronic method when buying IPO stocks ( some cornerstone investors just pay one or two days before getting the new shares but general public needs to pay 3 weeks in advanced) >it is hard to change as banks can get a huge profit in margin lending

This video is a short summary of the book

http://www.rthk.org.hk/special/awardpro/award07/onhongkong_tsoi.htm

《致富王道-8個投資金律》- 朱凱婷, 鄧聲興

《致富王道-8個投資金律》- 朱凱婷, 鄧聲興

This book is well-written and easy to read. ( that's why I could finish it within a few hours) I read it even during the exam period. It is obviously much more interesting than the academic stuffs and boring textbooks.

It interviewed 8 experienced investors and celebrities and they shared their ways of doing business, investing and financial planning. (it just briefly illustrates these, not digging too deep so far) It is more likely to tell the readers about the mindset and financial quotient (more on financial EQ) of a successful investor.


Points to note for myself :

- Investment Chronicle, Financial times, financial report

-invest sth unrelated to general economic environment e.g. red wine future ( reflect demand and supply > increase in value since supply < demand) - cannot neglect external factors apart from purely the company's performance when doing investments (e.g. the impact of derivatives e.. future, warrent, Hedge fund etc on the share price) - younger> higher risk tolerance level

-increase in interest rate is not benefitical to the market, vice versa

-in China, 30% people have mobile phone, 10% in rural area> China mobile (941) :)

-淡市(it implies low transactions)入市，stable stock price which may not reflect the true value of the stock, 抗跌力強, 更有上升動力 ( since everyone is holding money, when this purchasing power releases again> high return rate)

-knowing how to play around with the derivatives instead of risky stocks by using a small amount of money to train the finanical skills especially for the youth

- beginners with limited capital should not diversify your stocks too much, choose high-quality stocks for long-term investments

- Derivatives are very good educational tools, because the buyers not only have to consider the share price, but also other factors, e.g. implied volatility, gearing power> train the risk management skills

- be calm and analytical when everyone is crazy in the stock market

- the motivation for the stock price increases > good global economy, low inflation rate, having econoic growth

- HK stock money is always greatly affected by American economy ( American funds lead the global stock market and lots of HK stocks are hold by Americans)

- having less capital> speculative approach , having more capital> conservative approach

- release the pressure > sell the stock which can already cover the cost of purchasing, then trade stocks with no cost

- grasp the economic cycle > buy stock at the beginning of bull market, sell at the end of the bull market

-know how to do short selling> earn a lot when the stock market collapses

-long term investment > 10 years...concentrate on the potential of future growth, cash flow

-short term investment > spending few capitals on diversified small stocks

- using PE ratio to determine whether buy the stocks is not precise enough>>> we have to consider the potential growth as well > so PEG = PE/EPS is more accurate to measure the value

-《曾氏通道》 > shows the opportunities of buying and selling ?!? ( have to figure out more about it later)

-demand for real estates with lower value is greater than the higher ones> higher liquidity

-investment percentage on stocks should be larger than real estates

- have to consider regional factors ( land price) , the govenment land policy when acquiring real estates> the power of growing value and generating rent return

- the producing cycle of real estates is long, it is not as flexible as the stock market, it changes less frequently

- dealing with the problem of increasing inflation rate and maintaining living standard> investment

-somehow the stock market is efficient, the stock price has already reflected the impact of annual report or news> so need to investigate the lower and upper courses the particular industries and company's future

P.S.* since it is borrowed from the library, a previous reader highlighted a lot of things in the book by using a pencil, and I couldn't help laughing when I saw he highlighted "女朋友是基金經理"...just wondering why he regarded it as one of the main points...lol

uhuhuh, I have to focus on the boring exams again....

Lesson Nine and Ten

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly.

-日光族處境比月光族更嚴峻

-buy bonds which are due at different periods

-traditional family Vs Single parent family > what are the differences except there is one more people in the family? (我咁記得呢句係因為我對呢對說話好有感覺)

-ROE= profit/equity

Simon's recommanded books :

- 投資學堂 = The investment workshop / 譚紹興著.

-On Competition by Michael Porter

>>>1. cost leadership 2. differentiation(quality/extra facilities) 3. Focus( specific skills)

>>>Porter's Five Forces

1. Bargaining power of Buyers 2. Bargaining power of Sellers

3. existing competitors 4. New entrants 5. Substitutes

extra info: http://www.vectorstudy.com/management_theories/porters_five_forces.htm

- Business @ the Speed of Thought: Succeeding in the Digital Economy by Bill Gates

This was the last lesson...隔離飯香 I envy CUHK hotel school students who are taught by Simon. My best friend @ hotel school said he skipped his classes...what a waste...he is a good instructor and superman( I am wondering how he can do things so efficiently)....you know, although it is a 4-hour lesson and I am always tired, I never fall asleep.

I will have a long winter break and I know CU starts its spring semester much earlier than UST. If I am allowed to attend his lessons or follow him whatever during that period, it will be sheer bliss to me

********

Yeah!!! I have asked him and I am allowed to attend his lessons in January! Yeah! Follow him!

The only deplorable thing is that the exam of this course is coming very soon...

《來參加巴菲特股東會》- Randy Cepuch

《來參加巴菲特股東會》

A Weekend with Warren Buffett And Other Shareholder Meeting Adventures -Randy Cepuch

The book illustrates the author's experience of attending annual shareholders' meetings of a wide array of companies i.e. Berkshire Hathaway, Playboy, Starbucks, Disney, Microsoft,Google, Wal-Mart etc.

Frankly speaking, it is not as entertaining as I expected. (at least I didn't laugh when reading it and tedium prevails) It provides a small insight towards corporate governance and it shows specific company cultures to a certain extent and gives you some rough ideas of how the senior managers and directors performmed in different companies but overall it is not very precise and informative.

The idea that I can get from the book is ...a shareholder meeting may be a useful source of investment information, but only if shareholders pose intelligent questions and the managers and directors are willing to give forthright responses. Unluckily, this rarely happens. The Berkshire Hathaway meeting is one of a kind, but the author didn't write a lot about it. I guess it will be more insightful to read Warren Buffett's letters to his shareholders in the Berkshire Hathaway website.
The author is obviously a Buffettologist.

  
I read the translated version but some translations are blurred. Thus, I  recommend one should read English Version if you can have a choice.

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

Points to note:

- Find the one you admire, and ask yourself whether you can be like him.

- The real asset of one can own is oneself, so invest more and add values to yourself

-The shares of Berkshire Hathaway : A & B shares

BRK.A (A share) > super expensive ( US$ 102350 on 14/11/09)

BRK.B(B share) > US $ 3,413.98 on 14/11/09

-A share> targets for long-term investor

-B share> used for avoid taxes, allow A-share holder to show partial shares ( price of 1 A share=30 B shares)

-A shares can be converted to B shares but not vice versa.

-Voting right of 1 A share= 1/200 B share

-Both A & B shareholders are invited to join the annual shareholders' meetings

Lesson Seven and Eight

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly.

- bank and property > related> risk diversification effect is not obvious

- Beta measures systematic risk Vs S.D and varience measure total risk

-Beta> no direction ( negative/ positive) is indicated

-Beta = 1 > only market return, Beta = 0 > only risk-free return, Beta >1 High risk, Beta<1 low risk - the implications of huge audit fee > large scale/ high risk of the firm

- stock market > no one can win forever, no always winning rules orelse no one is willing to invest since there must be a loser

- dividend increase drive the stock price increases ( hkmtr> stable dividend> the mtr properties have not yet generated a large cash flow)

- HS bank's dividend (11)> attractive , bank industry> D/E ratio> meaningless

- HKMTR - government is the largest shareholder> help mtr develop> a measure to reduce traffic accident but it is kind of another way to tax the public

- property > dividend payout, ROE, Debt to equity ratio

- steps to pick stock > fundamental analysis ( for elimination) should be prior to technical analysis

- Relative strength ( RSI) if it is high( e.g. 100%) > overbuy> the stock price will drop soon Vs if it is low, oversell> the stock price will go up soon

-acquire property > look for high liquidity> large-scale property + good developers

-issuer issues options, investment bank issues warrants

-one likes to be called by using his name

- if the director of the company can hardly manage their family well, whatelse can he make?

-risk control> should not spend more than one-tenth of your wealth buying one stock/depositing in one bank

- From Investopedia: I think this is 逆按揭

What Does Reverse Mortgage Mean?
A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan.

Often, the lender will require that there can be no other liens against the home. Any existing liens must be paid off with the proceeds of the reverse mortgage.

Investopedia explains Reverse Mortgage
A reverse mortgage provides income that people can tap into for their retirement. The advantage of a reverse mortgage is that the borrower's credit is not relevant, and is often unchecked, because the borrower does not need to make any payments. Because the home serves as collateral, it must be sold in order to repay the mortgage when the borrower dies (in some cases, the heirs have the option of repaying the mortgage without selling the home). These types of mortgages have large origination costs relative to other types of mortgages. These costs become part of the initial loan balance and accrue interest. Senior citizen borrowers with good credit should carefully analyze the options of a more traditional mortgage, such as a home equity loan, against a reverse mortgage.

This one is much more inituitive


from http://the-sun.on.cc/channels/fina/20050128/20050128020437_0002.html

extra: http://www.elderlycommission.gov.hk/en/download/library/030430/c_mortgage_report.pdf

- Reference website:
http://www.centamap.com ( statistics from lands department)

http://www.hkdoctors.org/

http://www.censtatd.gov.hk

-Recommended books:

1) Investment Valuation: Tools and Techniques for Determining the Value of Any Asset,

2) Damodaran on Valuation: Security Analysis for Investment and Corporate Finance by Aswath Damodaran

3) A random walk down Wallstreet

4)Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications by John J. Murphy

5) Technical analysis explained: the Successful Investor's Guide to Spotting Investment Trends and Turning Points by Martin Pring

6) The Last Governor: Chris & the Handover of Hong Kong by Jonathan Dimbleby

7) East and West: China, Power, and the Future of Asia by Christopher Patten


8) The Spirit to Serve Marriott's Way by Jw Marriott and Adrian Zackheim

******

Only 2 more lessons to go :( ...

I definitely want to be taught by Simon again. I always believe that if the teacher is smart, the students can learn more and also be smart someday. Once again, I am always wondering when I can be as knowledgeable as him one day.

發布會演說七大秘技

No wonder Steve Jobs is one of the greatest CEOs in the world. He is always like a magician and also a brilliant salesperson.
***************

發布會演說七大秘技
(明報)2009年11月7日 星期六 05:10
【明報專訊】由iPod到iPhone，蘋果旗下產品能大賣，除了這些新穎科技產品每每帶給人驚喜外，喬布斯的發布會演講亦功不可沒，他可說是最成功的企業推銷員。溝通專家加洛（Carmine Gallo）最近便分析了喬布斯演講時所用的7大技巧。

■推銷夢想而非貨品

喬布斯的目標是改變世界，他在2001年宣布推出iPod時就說：「一個小小的方法可令世界變得更美好。」很多人只把iPod視為音樂播放器，喬布斯卻視它為豐富人們生活的工具。

■精簡標題

喬布斯在發布會上，喜歡為每件新產品配上標題，如在2008年他宣布推出MacBook Air時，他就以「全球最薄的手提電腦」為題。

■樹立敵人

建立敵人可以令觀眾都聚集在英雄（那就是你）的身邊。1984年，Mac機面世，當時蘋果的最大競爭對手是IBM 。喬布斯當年對蘋果銷售人員說﹕「IBM全部都想要」，但蘋果將是唯一能擋住這巨人的「英雄」。

■緊記「3」規則

神經學家發現，人的腦部在同一時間只能記住3或4組資料。喬布斯在每次發布會上，都將演講分為3部分。他在推銷產品時亦巧用這個「3」原則，07年1月，當他宣布推出iPhone時，就告訴觀眾有3件革命性產品要介紹——一部iPod、一部電話及一部互聯網通 訊器材。在重複這3件東西多次後，他又說：「你發現了嗎？這不是3件分開的產品，它只是一件，我們稱它做iPhone。」

■簡單至上

蘋果的產品以簡單易用見稱，同樣的哲學亦適用於喬布斯發布會所使用的投影上。一般來說，每一張Powerpoint簡報有40個字，但在蘋果的簡報中，你通常都難找到多過10個字。喬布斯的簡報，很多時候都只是圖片或圖像。

■製造難忘一刻

喬布斯的發布會上總有高潮時刻，而那一刻總會成為全球之後數周的話題。如當年他介紹MacBook Air時，就從一個薄薄的公文袋中把它抽出，這一刻便令人非常難忘。

■分享講台

喬布斯在每個主要發布會中，都會介紹蘋果的合作伙伴及客戶，蘋果的員工亦會在發布會中負責幾個部分，讓台下觀眾感受到蘋果的團隊合作精神。

華盛頓 郵報




引用自：http://hk.news.yahoo.com/article/091106/4/f1wt.html

《慳出第一桶金》- 李兆波

《慳出第一桶金》- 李兆波

This is the message I have got throughout the book

>>Self-discipline + Patience+ "Get prepared before it rains "are always important in good financial planning

Points to note:

-personal financial planning is similar to managing your own business

-having surplus every year

- gambling> 莊家出雞你出豉油, 集腋成裘

- some products may have discount in a specific festival

- meal>10% salary, travel expense > 20% salary ( not reasonable)

-if your monthly salary is $30000 but you cannot accumulate $500000 for 10 years > risky

- if your monthly salary is $10000 but you cannot accumulate $200000 for 10 years > risky

-income-expense (can be controlled)= saving (not for spending)

- Needs Vs Wants

-Asset ( visible but may be just an illusion) - libility ( always invisible) = equtiy ( the real amount of what you get)

- return of acquiring properties may not as good as acquiring stocks, the aim of acquiring properties is rarely getting back the cost but for capital gain( the property value increases)

- 90% mortgage> living on the margin, leveraged living ( risky to have negative asset when the interest rate increases/ the property value decreases)

- acquiring properties > pay property tax, land rent, management fee, rates, maintenance cost, interest to the bank, pay to lawyers, agents, developers> rent cannot compensate what you spend, the return may not positive if you rely mortgage to acquire properties

-60% total asset > only one property> risky

-40% monthly salary for property> mistake

- first mortgage>interest rate > P-x% ; second mortgage > interest rate> P%

-maintenance cost 5-10% property value > reasonable

-Sell Home Ownership Scheme ( HOS) flats> involve premium payment ( a kind of land tax)> the property value remains? > better buy private flats

-compare rent with the sum of interest, security rate, land rent, maintanence & management fee ( the real expense associated after purchasing the flat)

- rent Vs expense after acquire the flat( more or less the same) , the difference> principal you pay is what you own

-pay all the interest in advance? > not necessary-you can make use of the amount to investment and get the return to cover the interest ( or even saving account P% > interest rate you pay P-x% )

-indirect investment > fund> better for one who has no time/knowledge for investment

- the fund fee charged is unrelated to its performance (i.e. return)

-the entertainment fee should not exceed 1/10 of your salary

- MBA/ PhD > commercialized

- offspring's monetary return in the future= dividend?? > wrong direction

-loan : property> interest decreases with the remain principal

tax loan> compound interest every day / simple interest for a year = flat rate- the most expensive) if both annual interest rate are the same ( so better save each month to deal with the salary tax)

-car > parking fee 1500-2000, fuels 102/km, license 4000-6000, insurance 2000/year, maintanence, depreciation 20% per year> assume 15000km/year> $3250/month ( $5/km)

-fortex, margin> high risk (currency exchange rate changes)

-commodities> buy existing ones but avoid futures> high risk

-weighting of stock among your asset ( 100%-your current age%)

-risk diversification ( different industries- imperfectly correlated, different regions)

-warrant, one-day stock> high risk

-Investment bank> IPO> beautify financial report> the higher the stock price, the larger the commission of investment bank

-stock monthly investment plan ( admin fees, extra fee, transaction cost > 5%) so buy as a lump sum is better

-dividend per share/price per share = dividend rate周息率 or股息率

-ageing problem> huge medical expenses (govt) in the future > buy medical insurance when you are young> cheaper

Haha, I really love those 3 Doraremon stories quoted in the book :)

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

When I searched his books on Google, I have found this article

大錢題 : 捱上的波兒　李兆波 (2009.5.7 壹周刊 第1000期)
於 中 大 教 會 計 的 李 兆 波 ， 從 小 到 大 都 是 慳 精 ， 上 週 他 向 記 者 批 評 運 輸 署 剛 推 出 耗 資 逾 百 萬 元 的 「 公 共 交 通 查 詢 服 務 」 無 料 到 ， 搜 尋 的 路 線 並 非 最 快 最 平 。 記 者 問 他 如 何 由 大 埔 去 北 角 才 平 靚 正 ， 他 恍 似 電 腦 上 身 ， 「 坐 74X 到 大 老 山 隧 道 ， 再 轉 680 過 海 。 」
土 瓜 灣 去 鴨 脷 洲 呢 ？ 「 搭 116 去 鵝 頸 橋 ， 嗰 度 有 幾 架 巴 士 到 鴨 脷 洲 。 」 以 為 他 出 入 靠 公 共 交 通 工 具 才 如 此 精 明 ， 但 原 來 他 每 日 自 己 駕 車 。 如 此 熟 路 ， 皆 因 以 往 四 圍 去 替 人 補 習 搵 外 快 。
就 是 憑 着 這 股 死 慳 死 抵 的 精 神 ， 他 捱 過 年 少 屋 企 攞 綜 援 及 家 人 自 殺 的 低 潮 ， 工 作 七 年 單 靠 儲 錢 ， 已 成 為 百 萬 富 翁 。 現 時 每 週 三 天 於 電 台 及 報 章 ， 開 宗 名 義 教 人 慳 出 個 未 來 。

李 兆 波 檔 案
約 40 歲
90 年 初 　 迦 密 中 學 畢 業 ， 中 大 讀 物 理
96 年 　 考 獲 會 計 師 資 格
99-06 年 　 中 文 大 學 會 計 學 院 講 師
06-08 年 　 轉 到 浸 會 大 學 ， 任 教 會 計
08 年 　 回 巢 中 大 ， 晉 升 為 高 級 講 師
10am 只 揸 九 龍 車
李 兆 波 每 天 出 門 前 ， 第 一 件 事 是 瀏 覽 多 個 商 場 的 網 頁 ， 查 看 有 否 最 新 優 惠 。 「 我 專 揀 偏 遠 商 場 消 費 ， 好 似 荷 里 活 同 奧 海 城 ， 大 商 場 生 意 好 唔 憂 做 ， 着 數 唔 多 。 」 最 近 荷 里 活 廣 場 慶 祝 兒 童 節 ， 只 須 出 示 小 朋 友 相 片 ， 便 可 免 費 泊 車 ， 他 不 介 意 面 懵 問 同 事 借 嬰 兒 相 ， 「 我 連 個 小 朋 友 係 男 定 女 都 唔 記 得 。 」
他 每 天 駕 車 ， 但 絕 不 過 海 ， 每 次 到 中 環 開 會 ， 情 願 在 九 龍 站 的 Elements 停 車 場 泊 車 ， 再 乘 一 個 港 鐵 站 到 中 環 ， 「 Elements 泊 車 每 小 時 八 元 ， 係 同 區 商 場 最 平 ， 揸 車 隧 道 費 來 回 要 四 十 元 ， 仲 未 計 中 環 泊 車 嘅 費 用 。 」
算 死 草 的 他 ， 為 了 連 泊 車 費 也 省 下 ， 會 趁 機 在 商 場 購 物 換 免 費 泊 車 ， 可 惜 這 商 場 名 店 林 立 ， 惟 獨 萬 寧 才 獲 他 垂 青 ， 「 買 滿 一 百 八 十 元 有 免 費 泊 車 六 小 時 ， 買 日 常 用 品 就 搞 掂 。 」
2pm 食 飯 用 盡 優 惠 券
他 慣 了 早 餐 吃 得 很 飽 ， 待 下 午 二 時 才 吃 午 飯 ， 「 兩 點 後 唔 使 同 人 逼 ， 仲 可 以 食 下 午 茶 平 啲 。 」 其 銀 包 內 還 有 一 大 疊 食 肆 優 惠 券 ， 以 便 隨 時 使 用 ， 「 太 興 燒 味 券 每 張 五 十 元 ， 買 滿 十 張 有 九 折 。 我 食 一 個 午 餐 三 十 元 ， 剩 番 嘅 錢 再 斬 燒 味 夜 晚 食 。 」
小 時 候 同 學 笑 他 窮 ， 著 衫 老 土 ， 他 卻 不 以 為 意 ， 「 人 哋 笑 你 唔 緊 要 ， 捱 過 咗 ， 生 活 就 會 好 。 」 自 幼 喪 父 的 他 ， 一 家 四 口 住 樂 民 新 邨 ， 靠 綜 援 維 生 ， 母 親 獨 力 養 大 他 們 三 兄 弟 。 要 斷 窮 根 ， 他 深 信 知 識 可 改 變 命 運 ， 「 讀 書 叻 ， 解 決 好 多 問 題 。 」
中 五 會 考 獲 3A5B ， 一 年 後 拔 尖 入 中 大 念 喜 愛 的 物 理 系 ， 但 興 趣 不 能 當 飯 食 ， 畢 業 後 即 拿 獎 學 金 ， 再 讀 中 大 的 工 商 管 理 碩 士 ， 同 時 花 了 三 年 時 間 ， 自 修 考 獲 會 計 師 牌 照 。 偏 偏 他 卻 沒 打 算 在 薪 金 更 豐 厚 的 金 融 界 打 滾 ， 情 願 在 大 學 一 步 步 捱 上 去 ， 「 做 會 計 係 人 工 高 ， 但 唔 夠 教 書 穩 定 同 自 由 。 」
母 親 從 小 教 他 要 管 數 ， 「 就 算 買 支 水 都 要 我 記 低 ， 習 慣 咗 就 唔 敢 亂 用 錢 。 」 這 習 慣 至 今 維 持 了 三 十 年 ， 「 你 有 無 識 人 好 似 我 咁 自 律 ？ 」
記 者 學 他 照 做 ， 捱 了 一 個 月 已 放 棄 ， 他 笑 笑 口 說 ： 「 好 多 人 見 自 己 買 得 多 嘢 ， 唔 想 面 對 就 索 性 唔 記 ， 呢 個 係 大 部 分 人 放 棄 嘅 死 症 。 」 他 每 月 至 少 將 一 半 薪 金 儲 起 ， 畢 業 工 作 僅 七 年 ， 月 薪 約 四 萬 元 的 他 ， 已 儲 了 一 百 萬 元 。
他 購 物 慾 近 乎 零 ， 百 分 百 清 楚 「 想 要 」 和 「 需 要 」 的 分 別 。 例 如 他 愛 攝 影 ， 但 用 了 七 年 格 價 ， 上 月 才 捨 得 買 人 生 首 部 二 萬 多 元 的 單 鏡 反 光 機 。
買 機 這 盛 事 ， 他 選 在 閒 日 落 手 ， 「 唔 同 地 區 嘅 電 器 分 店 ， 送 嘅 贈 品 都 唔 同 ， 旺 區 嘅 售 貨 員 ， 唔 會 送 咁 多 贈 品 搏 你 幫 襯 。 」 結 果 他 選 在 Elements 購 買 ， 「 其 他 店 鋪 可 減 價 一 千 元 ， 但 我 做 埋 商 場 會 員 ， 送 現 金 券 同 一 晚 酒 店 套 房 ， 總 值 二 千 元 。 」
4pm 捐 錢 悼 亡 兄
不 用 教 書 的 日 子 ， 李 兆 波 會 到 各 區 中 學 ， 義 務 教 學 生 如 何 理 財 。 他 引 用 近 期 大 熱 的 港 男 港 女 做 例 子 ， 「 如 果 你 男 女 朋 友 好 大 使 ， 同 你 理 財 觀 念 唔 同 ， 飛 咗 佢 啦 。 」
記 者 指 香 港 如 此 多 「 黎 三 萬 」 ， 他 這 樣 慳 家 ， 能 否 找 到 理 財 觀 念 相 近 的 另 一 半 ， 他 以 「 非 常 私 人 」 為 理 由 ， 堅 拒 不 答 ， 只 說 現 時 一 個 人 獨 居 。
除 了 母 親 ， 離 世 的 哥 哥 對 他 理 財 觀 念 影 響 至 深 。 其 長 兄 較 他 大 兩 歲 ， 中 五 畢 業 已 做 廚 房 養 家 ， 供 養 他 和 弟 弟 讀 書 ， 「 佢 搵 錢 唔 多 ， 但 好 捨 得 俾 零 用 錢 我 哋 ， 亦 都 好 肯 幫 人 。 」
直 到 他 大 學 畢 業 ， 原 以 為 一 家 人 終 有 安 穩 生 活 ， 豈 料 哥 哥 突 然 因 情 緒 病 自 殺 ， 令 他 大 受 打 擊 。 為 紀 念 亡 兄 ， 他 每 年 以 無 名 氏 身 份 捐 錢 給 母 校 迦 密 中 學 ， 條 件 是 領 獎 學 生 要 成 績 好 又 家 境 清 貧 ， 「 佢 哋 先 會 珍 惜 ， 捐 出 嘅 錢 唔 會 浪 費 。 」
平 時 循 規 蹈 矩 的 他 ， 原 來 亦 曾 迷 失 ， 九 七 年 金 融 風 暴 學 人 炒 窩 輪 ， 輸 了 十 萬 元 ， 成 為 一 生 最 錯 決 定 ， 「 當 時 搵 錢 好 易 ， 開 頭 賺 咗 錢 ， 好 快 又 輸 番 。 」 自 此 他 只 買 高 息 藍 籌 股 作 長 線 投 資 ， 現 時 持 有 恒 生 、 中 石 油 等 股 票 ， 每 年 股 息 豐 厚 ， 「 我 投 資 賺 了 錢 ， 先 會 獎 勵 自 己 去 旅 行 。 」
他 說 有 五 百 萬 元 已 夠 退 休 ， 記 者 問 他 是 否 已 儲 夠 彈 藥 ， 他 笑 而 不 答 。 但 他 如 此 慳 家 ， 我 代 他 答 ： 夠 有 突 ！


學 者 之 中 ， 以 往 雷 鼎 鳴 被 譽 為 慳 精 ， 今 日 李 兆 波 大 有 後 來 居 上 之 勢 。 惟 他 指 與 雷 鼎 鳴 不 認 識 ， 自 問 難 作 比 較 。

這 張 嬰 兒 相 ， 為 他 慳 回 每 小 時 十 二 元 的 泊 車 費 。

他 覺 得 數 碼 相 機 質 素 不 及 菲 林 機 ， 因 此 等 足 七 年 ， 見 到 一 部 似 樣 的 才 買 。

他 以 慳 錢 為 樂 趣 ， 每 週 到 電 台 教 人 搵 着 數 ， 「 我 啲 朋 友 冇 咁 嘅 興 趣 。 」

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

And I also found a video of him, actually these are the Lifelong learning seminars from OUHK, there are also other guest speakers as well.I remember what one of my favourite professors said "Most of the jobs can be done by computer, but what computer cannot replace is experience." And I believe sometimes learning from other experience is also a shortcut to success and it also help you to aviod making the same mistakes as well. That's why I think the videos are quite worth watching.

this is the link>>>> http://www.ouhk.edu.hk/WCM?FUELAP_TEMPLATENAME=tcGenMain&ITEMID=CCLIPACECONTENT_965629 &LANG=chi

He is also interviewed by TVB. The interviewer seems to be very surprised.

http://www.youtube.com/watch?v=kGDqJt7eEh0&feature=player_embedded


My Methods to Save Money:

Frankly speaking, I also record my transactions on a daily basis. Actually, my entertainment expense is almost zero when my busy semester starts. Thus, I normally just spend on my transportation and meals. ( I really hate HKUST canteen, it is more expensive than CUHK, I need to spend a minimum$20 for my lunch) And I always use octopus card for transactions. So, it is easier to just record the imput amount of my card.

I keep my purse holding a limited amount ( average $150-250) of cash in order to remind myself to control my cash flow.

As for the credit card, normally I don't use it because I hate the bill. I only use it when there are some discounts and I used it to pay my course fees outside school. Actually this is kind of killing two birds with a stone. The advantages are accummulating cash dollars ( it allowed me to get 1 book for free at Commercial Press last time!) and when using BOC credit card, it contributes a certain percentage to HKUST for education purposes.

Besides, I also fully utilize the Continuing Education Fund. ( $10000 maximum) I have registered Mandarin and Japanese courses which are for public exams and once I pass the exam, I can get back 80% of both course fee and exam fee. ( haha, I have already passed the Mandarin exam, my money is coming back :) It is wiser to take these courses outside school as HKUST doesn't provide these courses for free. Besides, I normally buy products directly without using the monthly payment method as I feel more secured to do so.

And I never buy the bottle of water, I always bring my own bottle and I can fill the water by using drinking machine @ UST for free.

And I usually takes 2 buses to UST in order to get the benefits from Bus-Bus Interchange Discount Scheme.

I was once forced by my mum to spend $5 for Mark Six, and it is so cool that none of the number was drawn...and since then, I never walk into the Jockey Club. If I want to donate money, I think there can be another way...

I once would like to get a new laptop since it is too heavy to bring it to school but I have suppressed my desire for a few months. Ulitmately, my desire expired. I have spent my money on buying stocks.

I have two accounts at the same bank. I always use online banking system to manage my money. One account is for withdrawing cash from the ATM machine. Another account is for saving and investing. If I have excess money, I will transfer it to the latter account. In normal case, I won't transfer it back to my cash account.

I seldom talk on mobile phone and text sms, I prefer phone card to paying monthly phone fees. It can save a lot as I normally add values once for 2-3 months. I never drink wines and I hate cigarettes or even the smokers, these help me save a lot.

Also, if I buy a book which has a simplified chinese version, I prefer the simplified Chinese version to traditional Chinese since it is much cheaper.

It is a SUPER LONG entry =.='''

Lesson Six

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly

- High risk doesn't mean high return, but low risk must have low return

- the higher the coupon rate, the lower sensitivity of market interest rate; the longer the maturity, the higher the sensitivity of market interest rate

- I took the risk tolerance test today, my score is 29. I fall into the group of above-average tolerance for risk (29-32), you can try out in this website http://njaes.rutgers.edu/money/riskquiz/

- indirect investment ( e.g. bonds, fund with stock nature) > work better when one has no time and knowledge to manage

-trade-off of buying a house and renting a house

- the return is around 4 % if you own commericial properties

- hawker> somewhat make society stable> less people apply for comprehensive social security assistance

-when a company issues more shares, the share price probably falls

-callable bond> if the company pays off early with only the face value

-definition of investment, speculation and gambling in Longman dictationary

investment> the use of money to get a profit or to make a business activity successful

speculation >when you guess about the possible causes or effects of something without knowing all the facts, or the guesses that you make

gambling> when people risk money or possessions on the result of something which is not certain, such as a card game or a horse race

- the higher the interest rate or the longer the time, the lower the price of bond

- IPO> the quality of the share is not good> assign more to individual investors

-IPO sometimes may be set lower than the true price> let it have potential to increase

- winner's curse > one may think he will win intially, but ultimately it is not the case

-Ask price must be higher than bid price ( ask-bid is illustrated from the perspective of the dealer), the difference of ask and bid is spread

-REITs e.g. 823, 1881, 405

- some security companies exist because they provide some extra attributes which are not provided by the banks

- a recommended book: the handbook of fixed income securities- Frank Fabozzi

Lesson three to five

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly

The things have stuck in my mind for a few weeks but I didn't have time to roughly draft them down. Actually I just type the stuffs which are not in the note but are mentioned in the lecture. Somehow I can't remember all of them very clearly...

- insurance companies now prefer insurance with investing nature(e.g.funds) to purely insurance since it is more expensive and thus can be a larger proportion of commission

- in order to prevent company from using the money for employee for tax exclusion, e.g. trip expense cannot be exempted. However, trust/ fund of scholarship can be exempted

- employee makes good use of the reimbursement of rent, since the remainings are taxed

- the value of the unemployed people from the company's perspective - tax deduction >>>pretends to employ the unemployed and gives them some salaries and tries some methods to get parts of them back... mutual benefits for both unemployed ( receive some money)and company ( tax escape as it is treated as an expense)

- married allowance : one works, one doesn't work

- basic allowance: both work ( better for tax deduction)

- the meaning of negative asset ( liability> asset) since the price of the property decreases and actually one borrows money to get the property

- A has different jobs with the same salary with B (who has one job), A needs to contribute more to MPF

- child allowance> for either mother or father but not both

- parent allowance> for one relative only

- trust> a large amount money, operated when the person is still alive

- Will> suitable for a smaller amount of money, executed when the person dies

- for standard rate, we use net total income (less contirbution to mpf ,donation, allowable expense but no deducation of allowance)

- for progressive rate > using net chargeable income ( after deducting all allowance)

-the owner of the property prefers not to include any management fee in the rent contract since it is involved in tax calculation, so he wants tenant to pay the fee directly to the property management office

- useful websites for reference: www.ird.gov.hk, www.legislation.gov.hk etc..go to the respective websites to study the certain topics

- dollar cost averaging - work best in volatile market situation but the stock price should go up in long run

-an employee may want to have income deferral ( less income for tax calculation) > can be done before the fiscal year?? ( oh, I just remember the theory. Actually I have asked him once directly but now still unclear about how it works!! ask in the next lesson!)

- the weird method of tax escape ( A's salary is much higher than than B( maybe he is even unemployed), A and B then claims to be in the partnership and owns a company, when the company makes a profit. B gets a larger part of this profit. A gets a lot less than B theoretically. This practice is used to take advantage of the tax system as A falls in standard tax rate and he doesn't want to pay at 17% of the profit he has earned from the company. A and B may probably make a deal secretly.)

There are really a lot of books which have been stocked in my home already...I just wonder when I can finish the book he recommended: Build to Last, Good to Great, 15 axioms of personal finance, books written by 余叔韶,清洪

I am always wondering when I can be as knowledgeable as my instructor. I always trace his articles

http://hk.apple.nextmedia.com/template/apple/catkeycol.php?iss_id=20091016&showcat=10100430&sec_id=15307

I really want to throw away the boring textbooks from the school

Lesson Two

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly

- if the dividend is too stable (e.g. hkmtr) and has regular pattern, the company may not worth investing ( look for rising dividend)

-asset is observable, but liability is not (except the creditors)

- it is almost impossible to see the return of a stock is 20% continuously ( over the years)

-what Starbucks sells is its brand as it shows customers' status

-Coke ads in Vietnam > for future return> children grow up and have purchasing power> tend to like Coke ( c.f. Disney's products )

- not everyone needs to buy insurance

-avoid buying insurance at the end of the year ( the agents are required to meet the quota every year and they rush to sell the product), buy insurance products at different companies ( risk control measure)

- NPV> 0 (reject e.g. illegal) NPV<0 ( accept e.g. Charity)

- price of real estate Vs rent

- the interest rate increases > mortgage> disastrous

- banks may not usually use compound interest

Rich Dad, Poor Dad - Robert T. Kiyosaki

Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money--That the Poor and the Middle Class Do Not!


by Robert T. Kiyosaki

Frankly speaking, it is not a very interesting book. I have spent nearly 4 weeks to read it since I fell asleep thousands of times when reading it. Still, I insisted on finishing it

If Robert's dad with a Phd is already called "poor dad" , my father must be the most desperate dad in the world=.=, I want to be a rich kid and that's why I force myself to read it until the end

Btw, I think I still can get some insights from it...at least it shows the frameworks I may not think about before

I just recommend it to university students/adults especially the ones without any business background...some of my friends read it in their high school but when I asked about what they have got, they just said they forgot and many of them just read part of it as it is too boring...

I can say Robert is a successful salesman and investor. That's why " Best-seller" instead of " Best-writer" was printed on the cover of the book

I think HK tax system is better than that in the US. US government taxes a lot on personal income and it seems that everyone is working hard just for submitting the tax. The rich is smart enough to use their money as their personal corportion expenses before being taxed by the govt

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

Notes for myself:

- Having good education and good grades are no longer enough to guarantee that you can have a secure future( job security is doubted), the school just teaches you how to work for money ( passive life controlled by the company) and trap in the rat race( retire earlier, retirement means freedom)

- "play it smart" instead of " play it safe" by awakening our financial genius...manage risk and fear instead of avoid them

- a job is the short-term solution to a long-term financial problem

- the lack of money instead of the love of money is the root of evil

-when the company fired employees, the market likes it, the stock price rises, no job security can be guaranteed, the investor( the owners of the company is the winner)

-MPF in HK is similar to 401K in the US

- don't let the emotions/feelings>illusion ( greed, fear,ignorance....ignorance intensifies fear and desire) control the thinking and take action based on emotions >>the traps!!

-learn to use emotion to think, not think with your emotion

- the poor and middle class work for money ( earned income), the rich have money work for them (passive income- real estate and portfolio income-paper assets)

-financial freedom > the ability to convert earned money into passive and portfolio income

-financially literacy>read and understand number is a part of it

-rich people acquire assets ( generate income and positive cash flow), poor and middle-class people acquire libilities ( expenses) and they think they are assets -home ( be aware of the cashflow)

income >work for owner, expense> work for govt, libility> work for the bank

-mind your own business and build asset column

-ride a bke, after wobbling > a piece of cake

-need strong reasons(don't want and want) which are greater than the reality: the power of spirit (ambitious?)to make you rich

-choose to learn money everyday

- invest frist in education to train your mind ( books, seminors, courses etc) , open to new ideas and possibilities from different successul people

-listen > speak ( 2 ears 1 month)

-don't be chicken littles and be true to yourself and be willing not to go along with the crowd

you become what you study- choose what you study carefully

-find faster formale > skills are priceless

- self-discipline is always crucial

-manage the time, people and your personal time well

-financial IQ >> 1) accounting ( understand the financial statements and the company's strengths and weaknesses) 2) investing 3) understand mkt/economic condition ( supply and demand, maybe emotion-driven mkt 4) Law ( tax advantage and protection)

-management of cashflow, ppls and system( personal time), sales and understand marketing, communication skills

-know deeper and deeper > specialized skills (choices diminish> inflexible> trapped>need a very stong labour union to support )

-know a little but a lot> and work with smarter ppl to learn their specialities

obstacles even the one is financially literate

1) fear of losing money ( if u hate risk, start early, no rich person never lose money, put a lot of eggs into a few baskets only>focus)

2) overcome doubt & cynicism ( chicken little due to the noise outside> play it safe but not smart)

3) laziness (solution: a little greed)

4) habits ( pay yourself first> a lack of money is the motivation and inspire you financial genius> asset buy luxuries> be like the heros based on the situation) take actions before the financial rewards

5) arrogence ( ego + ignorance)

- get started > strong reason, learning and learning

other materials: (a audio report of the book)

http://www.richdad.com/RichDad/ProductDownload.aspx?id=3

ha, I have found that the id ranges from 2- 10 after trying to see whether other books' summary reports are available, I think it is a good material and provides the summary and the whole picture of the book

Lesson one

Caution: I just draft the stuffs that I remember in the lesson which are not included in the handout of the instructor, so hopefully I do not interpret and remember something incorrectly

Speeches given by my instructor - Simon Lee in Financial Planning Executive Program provoke my thoughts

- Life is like four seasons ( young = spring, work life= summer, near the time of retirement= autumn, old = winter)

- 20-year education, 40-year work life, 30-year retirement > 40-year income supporting your 70-year life

-professionals are not afraid of exams

- buy the real estate directly from the developer and skip the agents and buy at a discount price

- never buy a car which is superior than your boss's one

- work place is not your playground, don't post any of your family photos unless your colleagues are your true friends (i.e. don't let your boss know your relationship status or financial status because they may be guidelines for your boss to fire you)

- the power of compound interest tells that the younger and the larger you have already invested, the wealthier you can be)

- corporations can be long lasting and are always aggressive to look for the profits, but people are not, their ability to take risk declines with their age

-the destruction of time value of money is disastrous

- you can estimate the number rationally (aeroplane 900km/hr, car 50-110km/hr, bullet train in Japan 3xxkm/hr, so man cannot run 100km/hr)

- some people go to the amazon.com to see the preview( the first few pages of the books) and claim that they have read thousands of books ( very funny phenomenon)

- the unfair status between the bank and the public

《看見價值: 巴菲特一直奉行的財富與人生哲學》- Mary Buffett, David Clark

看見價值: 巴菲特一直奉行的財富與人生哲學
The Tao of Warren Buffett: Warren Buffett's Words of Wisdom: Quotations and Interpretations to Help Guide You to Billionaire Wealth and Enlighten - Mary Buffett, David Clark

Immediately become a little Buffettologist after reading this book and make me search more of his related books and his company- Berkshire Hathaway as well ( it is a high-valued company which helps its shareholder get satisfactory return every year but I have checked the " admission fee" to be a shareholder is stunning...US$102,200 per share!!!!!! Alhough I can't find the board lot, I am sure the one who can afford to buy are all millionaires...)

It was written by Warren Buffett's daughter-in-law

Although here are totally 125 quotations of him, some of their concepts ( especially the latter part of the book are duplicated. Still, it is worthy to read...many of them are witticisms

Compared with Lee Ka Shing, I appreciate him more. Apart from being a super successful investor, he contributed 85% of his wealth to the charity...definitely a generous person...

Besides mentioning his investing approach, it also mention the importance of integrity of a corporation, management skills or even some marketing concepts etc

I find he likes to focus and emphrasize on long-term investment instead of the short-term one, he prefers high-quality stocks (which can overcome the challenges and survive) and buy them when the overall economic condition is bad

But I am pretty sure that the brokers dislike Warren Buffett since they live on the comission depending on the frequent transactions in the stock market, if everyone is like Warren, the brokers/ consultants will be starve ot death

And I believe different people should have different strategies and philosophies since their financial conditions are not the same. Warren has super huge capitals to invest which allow him to gain a lot once he decided to sell the stocks as there will be a large sum return even the return rate is normal. As a mediocrity with limited capitals, if I adopt his strategies at this moment, the return will not be so obvious even the return rate looks good. ( although he always said value-investing, spend less but has a high return rate, it can't help much if you just invest $1 even with 100% return, right?)

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

note for myself

- learn from experience, but if possible, learn from the others' experience first

-the ability of calculating percentage and possibility

- don't follow the trend

- jot down something which can force you to think deeply

- buy the stock which you can predict its future growth, with the ones which can generate return before but not merely the so-called potentials and expectations, buy the companies which you can expect even after 10-15 years due to unchange behaviours of the customers ( E.g. Cola Coke Budweiser)

- experience is important then academic theories

- " When the tide goes out, you will know who is swimming naked" > find out this person before the tide goes out

- the companies which fired employees and claimed to say it is a cost control measure was having bad cost control already

- do what you like and believe that you will be excel at that aspect one day

- self-marketing/ self-selling based on others' needs

- value investing - the company's fundamentals economic condition is important, good management cannot help much c.f. buy high-quality companies' stocks which are underestimated when the economy goes bad, be patient and let the value of the company grows


-accounting > business language> language of the game

- don't buy the stock which the company needs a large sum of capital to grow/ to develop its news products and thus they are unable to expand and acquire new companies or rebuy the stocks ( e.g. GM)

- don't cut price to protect te brand name

-popular and hot stocks can't help you to earn, never follow the irrational public 反向操作

- don't lose money since the principal is the key of success under the power of compound interest

-prevention is easier than getting rid of the problems once they emerge

-choosing the stocks is like choosing your life-long companion

-reply on you independent thinking rather than the analysts, consultants and brokers

- the little the compensation you pay, the higher the value you can get

- overdiversification is originated from ignorant

-don't buy some stocks you are not familiar with and with a blurred future

- buy resourse-monopoly industry (e.g. coal, road etc)

《智富掌門人──踏上理財顧問成功路》- 冼健岷

《智富掌門人──踏上理財顧問成功路》- 冼健岷
It is well-written by the chief distribution officer of Convey Financial limited ( one of company of independent financial advisor)

It is an informative book which shows the career path of a financial consultant

I know more about it and that's part of motivations of me taking the CFP course at CUHK

******




note to myself: 保監 >保險中介人考試 >paper1,3,5
証監>證券及期課從業員資格考試> 香港證券專業學會從業員資格證書( 證券) > HKSI papaer 1,7,8

《投資大師羅杰斯給寶貝女兒的12封信》 - Jim Rogers

投資大師羅杰斯給寶貝女兒的12封信 A Gift to My Children: A Father's Lessons for Life and Investing - Jim Rogers

It is a short read but it is not purely an investing guide, it is more about life lessons

He shares his life experience and shows his value, wisdom and insights of life and emphrasizes on learning from history, indepedent thinking...

Overall, it is filled with father's love to children

He offers a simple & common sense approach, but still valuable to read especially for the teenagers

******

for reference

http://www.books.com.tw/activity/cris/2008/200807_rogers/

Weird relationship between the bank and the public

I type this note because I felt annoyed and after checking the service charges of the bank

Actually if we deposit money into the bank (e.g saving account) , they are creditors of the bank.

Ironically, it seems that we have no rewards ( the interest rate is 0.01%, why don't the banks just make it zero if so?? totally pointless to deposit money into the banks ) The creditors (public) not only receive no rewards, but also have to pay different kinds of fees imposed by the debtor(bank).

The most ridiculous policy is…if you don't "touch" your account for 6 months, you have to pay the fee also...the situation is hilarious if we put it in this way....the debtors desperately need the creditors to disturb and annoy them ( e.g., 每6個月以內定時定候要淋下紅油 ) or else the creditors need to pay the debtors... it is totally an unfair treaty, isn’t it?

Just remind me of what my classmates told her experience when she worked as an intern in a bank, she said she once received a call from a customers with US$7 million and asked about the interest he could receive and my classmate dared not to tell the customers that he could just get a few hundred HK dollars =.=

It is better to put money under the pillow…totally pointless to have a saving account

《上哈佛真正學到的事》 - 姜仁仙

上哈佛真正學到的事 --- 哈佛關鍵態度, 帶你跨入領先群----- 作者 / 姜仁仙

大概是最近覺得人生有點迷茫, 趁知道中銀卡有8折, 買了幾本書來看, 希望得到一些啟示, 這是其中一本, 這書描述哈佛的環境, 作者的生活, 這也不是太重要, 買這本書的時候, 我只想知道怎樣在大學裡好好生存, 怎樣去有效讀書之類, 怎樣去裝備自己同人fight過, 幸好整本書總算有幾個chapter比較有用, 然而對於我的未來, 我始終是充滿恐懼, 總是好像有無窮無盡的東西要學習, 我的天資卻不是聰敏過人, 卻經常遇到一些厲害的人, 當那些人比我知的, 比我見識過的多幾千萬倍的時候, 心中會不斷浮起怎樣才能與他看齊的念頭, 卻又有點力不從心的時候, 不安感會自然加劇

人停下來時只會覺得更迷茫,唯一可以做到的是只能盡力去追尋, 好好地過每一天


書中有提及在網絡上流傳的哈佛圖書館自習室牆上的訓, 但作者在哈佛讀書時不曾聽過這些, 1-20 are copied from the web directly, 21-30只在書中才有, 但覺得有用, 把它一同記下來1. The time is passing.
1.時間在流逝。

2. One day, has not been able again to come.
2.一天過完，不會再來。

3. The education level represents the income.
3.受教育程度代表收入。

4. Not matter of the today will drag tomorrow.
4.勿將今日之事拖到明日。

5. Please enjoy the pain which is unable to avoid.
5.請享受無法迴避的痛苦。

6. Today does not walk, will have to run tomorrow.
6.今天不走，明天要跑。

7. Has not been difficult, then does not have attains.
7.沒有艱辛，便無所獲。

8. The dog equally study, the gentleman equally plays.
8.狗一樣地學，紳士一樣地玩。

9. Now drips the saliva, will become tomorrow the tear.
9.現在流的口水，將成為明天的眼淚。

10. Thought is already is late, exactly is the earliest time.
10.覺得為時已晚的時候，恰恰是最早的時候。

11. Studies this matter, lacks the time, but is lacks diligently.
11.學習這件事，不是缺乏時間，而是缺乏努力。

12. Even if the present, the match does not stop changes the page.
12.即使現在，對手也不停地翻動書頁。

13. Time the study pain is temporary, has not learned the pain is life-long.
13.學習時的苦痛是暫時的，未學到的痛苦是終生的。

14. The investment future person will be, will be loyal to the reality person.
14.投資未來的人是忠於現實的人。

15. Nobody can casually succeed, it comes from the thoroughself-control and the will.
15.誰也不能隨隨便便成功，它來自徹底的自我管理和毅力。

16. Only has compared to the others early, diligently diligently, can feel the successful taste.
16.只有比別人更早、更勤奮地努力，才能嚐到成功的滋味。

17. Perhaps happiness does not arrange the position, but succeeds must arrange the position.
17.幸福或許不排名次，但成功必排名次。

18. This moment will nap, you will have a dream; But this moment study,you will interpreta dream.
18.此刻打盹，你將做夢；而此刻學習，你將圓夢。

19. I leave uncultivated today, was precisely yesterday perishestomorrow which person of the body implored.
19.我荒廢的今日，正是昨日殞身之人祈求的明日。

20. The study certainly is not the life complete. But, since continuallylife part of - studies also is unable to conquer, what but also can make?
21 夢想就在前面, 你為甚麼還不邁開腳步22 眼睛閉著, 那麼望著未來的眼睛也會是閉著的23 別打瞌睡, 就去睡吧24 最偉大的事, 是趁別人在睡夢中完成的25 成績和投資時間成正比26 現在虛度的時間, 當考試來臨前會令人那麼迫切需要？27 所謂的不可能, 是不努力的人所找的藉口28 努力的代價是不可能平白無故消失的29 讀一小時的書, 先生, 太太的表情就會不同30 追求最好的, 盡最大的努力, 而且一開始就要為盡最大努力, 追求最好而祈禱



*********
Jot down some notes for myself
- Success means be the person who you want to be and can do what you want to do
- not only personal success but also impacting the society and giving others the chance of success
- try to be a leader of a certain aspect/ industry although it is hard
- others cannot help you make your decision, do it by yourself and convince yourself why you do it
- set up a plan'goal which is almost impossible to achieve and use it to compare your performance and blame yourself of incapability, it huts your spirit and this emotion affects self-reflection of mistakes and learn from failure
- free to think, serious to live ( quatity comes before quality, busy life forces you to have better time management)
- survival skills ( 1. better time management> all about follow your planning 2. get close to the profs 3. choose different subjects 4. choose the subjects with lots of assignments and exams 5.form study group 6. improve you report writing skills/ composition 7. do other things besides studying 8. ask questions/ seek help if have difficulties 9 learn foreign language
- unrelease your potential, test your upper limit of your ability
- use your own strength to run until the last minute and always reset your speed or you will fall behind

Is Google too powerful?

Is Google too powerful?
By Hayley Woo

Google has recently been ranked as one of the top 100 global brands by Businessweek. Thanks to its renowned and dominant search engine, Google keeps gaining its share on the internet. As an internet user, searching on Google becomes inescapable from our daily life. Along with its giant information generating ability, its various innovative products have become indispensable. Its permeation seems to enrich our life and bolster our daily convenience but one issue which raises many concerns is the trade-off between enjoying its free services and sacrificing our privacy. This paper will show how powerful Google becomes the user data empire, and the implications to the internet users.
The diversity and specificity of Google’s product range lend power to extract user’s data comprehensively. When a user uses its different services, his miscellaneous information will automatically be gathered by Google. For instance, when a user uses GoogleHealth, Orkut and Gmail, Google can get all his personal information including his health conditions, various personal particulars, lifestyle choices, or even the content of his emails. All online activities carried out by an individual are known by Google without the use of knowledge. Users cannot opt out of data collection completely and delete the information which they do not want to expose; this raises the concerns about the potential threats of exposure to personal data.
Another reason of Google being so powerful is its advanced technology which allows it to track, generate, manipulate and store user’s data. It uses cookies to track users' movement around its web. Also, Google can track individual users on any page that has either Doubleclick or Adsense ads which are not on Google’s web as well. Moreover, Google conducts the massive data analysis to manipulate the data and the data will go to permanent backups for permanent storage which is not allowed to be deleted by the users. This illustrates that your preferences and browsing behavior are watched by Google, and they do not have a choice. Thus, this raises concerns about the privacy invasion due to over extraction of user’s data.
Some people argue that users can choose whether their personal information be disclosed on Google and that Google is not the only website who uses cookies to provide services and advertising to improve the user experience and customize individuals’ needs. However, as users are mostly outsiders, they rarely know the purposes of Google storing our data for a long time, and its system to protect the data. No one will refute that it already has an enormous and powerful user database due to the countless searches by billions of users per day.

Whether the data is well-used and well-protected by Google becomes the controversial issue that generates a lot of debates as many people have noticed its potential threats owing to Google’s growing power. It is undeniable that great strength comes with great responsibility. Google’s aggressive expansion enables it to gain popularity but meanwhile people fear it because of its overwhelming power.

Proposal summary of the redevelopment of Ocean Park’s Tai Shue Wan site

To: Max Pearson

From: Hayley

Date: 17 May 2009

Subjects: Proposal summary of the redevelopment of Ocean Park’s Tai Shue Wan site



Ocean Park, a Hong Kong’s home grown marine theme park which has been operating for 32 years providing both recreational and educational uses, has long contributed to Hong Kong’s tourism industry. Followed by its repositioning HK$ 5.5 billion Master Redevelopment Plan which is scheduled for completion in 2012 for competitive survival, the strategic expansion- the redevelopment of Tai Shue Wan site should be taken into our consideration for Ocean Park’s sustainability beyond 2012. The recommendations are devised for the TSW site to achieve Ocean Park’s goal – increasing profitability, raising visitor attendance and retaining its purposes of both recreation and education in long term.



In the process of making the recommendations, the constraints are the first we have to take into account. Currently, there are limited roads linking TSW and the headland and the south TSW has a steep terrain which is unfavorable for development. In addition, Ocean Park values its precious ecological assets; a large-scale construction will destroy the dense vegetation and animals’ habitats. With the budget of US$500 million for redevelopment, the recommendations are as follows:



Multi-storey recreation and education complex on northwest TSW

The terrain of northwest TSW is relatively gentler than the south and thus northwest TSW is considered to be the most suitable site for development. With an aim to minimize the adverse impacts on ecological assets because of the huge construction on the site, multi-storey is therefore the most feasible one since it allows wise use of land by vertical constructions.



Inside this multi-storey recreation and education complex, the ground floor is designed to be an indoor water park with pools for children and adults along with an artificial beach to attract both families and couples. The air temperature is kept around 30º C and the water temperature is kept at around 28º C and hence it can be operated throughout all seasons regardless of the weather.



The first floor consists of several thrilling rides and adventures for teenagers and young adults who are looking for excitements and challenges. The second floor comprises dining areas, souvenir shops and relaxing places which allow people to take a rest after playing an entire day. There are different kinds of restaurants allowing people to enjoy the food cultures around the world in the dining area and bars for nightlife enthusiasts on this floor.



The top floor is Ocean Fantasy which is a 800-meter tunnel covered by the screen. By walking through the tunnel which is designed with the latest technology in music and multimedia special effects, people can experience an extraordinary and sensational journey of being fishes by knowing their life and how human activities affect their habitats and thus raise public concern about the importance of protecting marine life.



In the nutshell, this multi-storey recreation and education complex can cater to the needs of various customers regardless of whether they are together with their family, their friends or their sweethearts.



Transportation – Aerial Train
Regarding the transportation, Aerial Rail is not only a transport connecting TSW and headland, but also a visually spectacular as visitors can pick the rides to enjoy the unprecedented scenic vista of TSW in a 15-minute journey. As far as the destruction on topography and vegetation are concerned by constructing directly on the slopes, this aerial rail is built overhead in an attempt to minimize this negative impact.



We have evaluated and assessed the feasibility of the plan and it has the ability to overcome the challenges mentioned in the beginning of this proposal. This project requires US$400 million and the revenue is projected and it will reach the break-even within 5 years owing to the increase in public attendance and spending. With the new facilitates, Ocean Park is not only more capable of fulfilling its objectives to be sustainable by turning a-day visitors to a-week visitors and attracting a wider range of customers, but also reaching its ultimate goal – being a brand-new, unique and irreplaceable recreational and educational theme park in Hong Kong.

Intellectual properties and trademarks in electronic markets

Questions :Why is it important to protect intellectual properties and trademarks in electronic markets? Who should be responsible for protecting L’Oreal’s trademark? Should eBay be held responsible for trademark infringement?

Answers:

From the producers’ perspective, the revenue that can be generated from their creations is greatly reduced once the effect of IP and trademarks is diluted as they are initially the legal rights to protect and differentiate producers’ creations. For the digital goods, producers have limited control over the illegal reproductions and transactions. Even for the physical goods, the electronic markets act as a bleeding ground for counterfeit goods that cannot be easily tracked and identified. Thus, the uniqueness of the products and the value of their brand names are lessened. More importantly, the authority on how and where to sell the products is restrained. Not only the monetary returns, the non-monetary ones ( e.g. image) of the producers cannot be retrieved due to the infringements of IP and trademarks.



From the customers’ perspective, they cannot enjoy the original products since they become more exposed to fake goods which may have an inferior quantity due to the limited info in the electronic markets when buying physical goods online. For the intangible ones, although it seems to be convenient to get what they want by intensive searching and even get the products for free, they may notice the producers become less willing to invent and create more as they see the potential loss of revenue and therefore no intention to innovate.



In L’Oreal and e-Bay case, both of them should be responsible. Without the effort of one side, the trademark cannot be protected. L’Oreal should inspect and track whether some undesirable sales transactions occur on E-bay and report the cases. E-bay should also respond in getting rid of the harm done on the L’Oreal. Although it is a third party, it may hurt E-bay’s reputation if it becomes the platform of illegal transactions.



However, the more and wider the platforms and channels are, the harder the IP and trademarks can be protected especially when it comes to the electronic markets.

by Hayley

Twilight Series - Stephenie Meyer

Twilight

Stephenie Meyer

I prefer not writing a review of it, however, it is really fascinating especially for the teenage girls and female readers who like vampires. I read that out of curosity and am so glad I did. I am now hooked to the entire series.

The story full of romance, suspense, some thrills and gore about a mortal falls in love with a vampire which makes me crazily flip the pages. A book I literally read striaght through without stopping and I get immersed. Now I am pretty sad since I have strong eagerness and thrist for NEW MOON and ECLIPSE( the continua of Twilight book series). I will buy them tmr anyway. I still have one-month holiday to go and sure they can kill time:P
What I like most is the detailed descriptions of the characters' motions, it seems that I can feel and imagine them. The story line is really awesome.

And yesterday I watched the movie with my mates. What attracts me is the gorgeous face of Edward Cullen, absurdly handsome, a cool guy indeed . In fact I like the actor- Robert Pattinson who appeared in the film - Harry Potter as Cedric and felt such a pity when knowing he ''died'' so soon.
Frankly speaking, the movie is not as good as the book except the visual enjoyment of Robert since lots of details missed and some contents were modified when making it debut on the screen. But still, it is a good movie.

Definitely a page turner and easy read. HAHA, Alright, maybe I falls in love with Edward Cullen.:P

New Moon

Originally I thought it might disappoint me because I am not interested in the relationship of Jacob and Bella. But still, I was immersed when I moved on reading. For the part of Volterra, it is still fascinating and also anxious.

However,I am not satisfied with the preface, it made me feel confused rather than curious. The prefaces of Twilight and Eclipse are much better. Apart from that, the part which Jocab hid himself due to his transformation being a werewolf can be kept shorter.
When Edward left, I feel awfully sad. The wait for his return was excruciating. But once Edward came back, ,Bella cast Jacob aside like an old shoe. I feel pity for Jocab now.
Overall, I think Stephenie Meyer is quite a successful author.Through her words, I can feel what the characters were doing. Simply speaking, she made them REAL!!!! That's why I am obsessed with it.
Although I can predict Eclipse most likely mentions the conflicts of the relationship among the three characters,

I am wondering how it goes.

Eclipse

I think Eclipse is much better than New Moon in comparison apparently .Initially, I was worried about whether it would disappoint me as it might be worse than New Moon. Overall, it is not bad ( I am glad about it) :P

Btw, I enjoy the preface especially the poem of Fire and Ice...it is remarkable, make the entire extraordinary, I read it for thrice to think about the implications behind it......
I really appreciate the author described every motions, emotions and the thoughts of the characters as exquisite as usual... it has taken me a longer time to read it since I want to taste each of the words, it was still enjoyable although my eagerness is to finish it as soon as possible

I like the latter half of the book, the parts regarding the compromise of Jacob & Edward, the war between sadistic Victoria, newborn vampires & the alliance of werewolves, Cullens and finally the coming of Volturi as well, these all thrilled me
Now only the final one-Breaking Dawn left, I am reluctant to leave it, but meanwhile I will be busy with something else. I am sure I can't finish it before the semester starts as it is the thickest one among all. I don't want to rush through it because it would be a waste to do so

I have to confess that I don't really like the heroine-Bella, she is too fragile, too awkward, what she did was only worrying without helping much...and I am also surprised that the ways she treated Jocob & Edward ...she went overboard sometimes...

Breaking Dawn

It is the most fascinating one interconnecting with lots of romance, suspense and humanity. I bet this one is the best throughout the Twilight Saga, therefore I can't help complimenting it
Breaking Dawn is my favourite one, my degree of liking of the entire series as follows:
Breaking Dawn> Twilight> Eclipse>New Moon= Midnight Sun
Originally, I don't want myself to spend my whole precious holiday on the series but it seems that I can't resist the temptations......they are really fabulous
Caution: if u are a fan of Twilight and don't want to know the ultimate result of the story, please don't read the following or else u may lose lots of fun
The creativity of the author amazed me; there are several scenes out of my expectations:
1. Bella being a newborn vampire in a weird way – pregnancy

2.The extraordinary health conditions of a pregnant human who has an immortal inside her

3.the inborn talents of Bella and also her unique baby

4.The tactics used by the Volturi to destroy Cullens and ultimately what and who saved Cullens
5.Jocab ‘s whole pack are not werewolves but shifters

6.Parts of the story was written in Jocab’s perspective instead of Bella’s
But still, I guess right about whom Jocob would imprint and let the story come to the happy ending
I like it most because:

1.I am impressed by the logic flow throughout the stories , I almost clapped my hand when I read those regarding the numbers of chromosomal pairs of each kind and the thick membrane around the baby which is as hard as vampire skin which ultrasound cannot work

2.It leaves lots of ‘’guessing games” underneath for the readers to ponder until they get the answers from author eventually

3.I don’t want to say about this part here ( but I am sure Joey knows what I mean, it’d better keep it as a private joke anyway)
But one thing I am always conscious:

There is no “Edward Cullen” in the world, it is impossible to be so perfect without any flaws…uh… really miserable. If he is real, it worths doing what Bella did. Stephenie somehow convinced me being a vampire is much better than being a human.

Ironically, he only appears in novel, merely a fantasy of every woman

I hope the author continues writing this masterpiece.It will only make me thrist for more as I am always enchanted by something mysterious, supernatural and weird.

Midnight Sun (Draft)


Someone will immediately read it if he/she is a fan of Edward Cullen. I am one of them. It is good to expose Edward's mysterious mind especially good for satisfying the curosity of readers. However, the storyline is the same as Twilight,this makes it less interesting. I don't know male readers will enjoy it more than the Twilight. But for me, Bella's perspective is better as it leaves the space for female readers to have their imagination about Edward.

I would rather Stephenie continues writing next book after Breaking Dawn than finishing this one. But for sure, if she can also finish it as well, it will be the best.