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...
Showing posts with label Inspiring Lessons. Show all posts
Showing posts with label Inspiring Lessons. Show all posts
Saturday, November 28, 2009
Saturday, November 14, 2009
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.
- 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.
Tuesday, October 27, 2009
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
- 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
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
Saturday, September 26, 2009
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
- 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
Sunday, September 20, 2009
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
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
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