Lately, I just attended a brief on "Blue Ocean Strategy". I learnt that Blue Ocean Strategy are to make high profits growth at lower risk, to make industries not in existence today, to go into uptapped market demand, and to make competition not relevant anymore. Its 6 principles are as follows: (1) Reconstuct Market Boundaries, (2) Focus on The Big Pictire, Not the Numbers, (3) Reach Beyond Existing Demand, (4) Get the Strategic Sequence Right, (5) Overcome the 4 Hurdles, and (6) Build Strategy in Execution.
This strategy seems to be using "common sense" but powerful and effective.It is a fantastic strategy that is applicable to all businesses and industries. Air Asia is a good example of the uses of Blue Ocean Strategy.
Friday, January 9, 2009
Sunday, November 30, 2008
Some Warren Buffet Responds...
What does it take to become a successful investor? Brilliance or Smartness?
Neither, Success in investing doesn't correlate with I.Q. Once you have ordinary intelligence, what you need is the temperament to control the urges that gets other people into trouble in investing.
When do you decide to invest in a firm?
The best thing that happens to us is when a great company gets into temporary trouble. We want to buy them when they're on the operating table. (Mr. Buffett bought Coke when it had its biggest fiasco after
launching New Coke; he bought American Express when it went through a loss making phase in the early 60's.
Why do stock market crashes happen?
Because of human nature for greed and insecurity. The 1970s were unbelievable. The world wasn't going to end, but businesses were being given away. Human nature has not changed. People will always behave in a manic-depressive way over time. They will offer great values to you."
I think it is marvelous that you have had a golden run with investing, how did you do that?
My rule is to be fearful when others are greedy, and be greedy when others are fearful.
Besides, I call investing the greatest job in the world because you never have to swing. You stand at the plate; the pitcher throws you General Motors at 47! U.S. Steel at 39! And nobody calls a strike on you. There's no penalty except opportunity lost. All day you wait for the pitch you like; then when the fielders are asleep, you step up and hit it. Stay dispassionate and be patient. You're dealing with a lot of silly people in the marketplace; it's like a great big casino and everyone else is boozing. If you can stick with drinking Coke, you should be OK. First the crowd is boozy on optimism and buying every new issue in sight. The next moment it is boozy on pessimism, buying gold bars and predicting another Great Depression, most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well.
Friday, November 28, 2008
Your EPF Accounts
The EPF is a good source of savings and investment fund. The current EPF account #1 amount is 70% of the contribution. This account is for 2 purposes, namely investment and withdrawal at age 55. You can either use it to invest in approved Unit Trusts or approved Shares in Malaysia. You can start to invest as early as at the age of 18 years old, if you have sufficient funds in your account #1 (min. RM 6,000 for age 18).
The EPF account #2 amount is 30% of your contribution and is for the other purposes like education, housing, and medical, and full withdrawal at age 50.
The EPF account #2 amount is 30% of your contribution and is for the other purposes like education, housing, and medical, and full withdrawal at age 50.
Sunday, November 23, 2008
Portfolio Combinations
This is an example of investment portfolio combinations. It shows the relationships between level of risks and expected returns that an investor is willing to take.
Saturday, November 15, 2008
When Time Is On Your Side????? - Final
Your Investments After Death
It's hard to think of investments as such after you pass away. However, several investment vehicles don't really begin to pay off until after you're gone. For example, insurance, will and trusts are three investments that are often set up not for your lifetime, but for your heirs.
It's hard to think of investments as such after you pass away. However, several investment vehicles don't really begin to pay off until after you're gone. For example, insurance, will and trusts are three investments that are often set up not for your lifetime, but for your heirs.
So, Is time really on your side? What are going to do about it?
Wednesday, November 12, 2008
When Time Is On Your Side??? - Part 4
Are you ready for this? Well, you can ignore this but it doesn't go away. Face it and prepare for it NOW.
Retiring in Comfort
The time you've waited for is finally here--retirement! You're at the age where you should be enjoying more leisure time than stress time. This is when you may sell your home and downsize or move to a different locale altogether. Maybe your vacation getaway home will now become your year-round place. You may choose to continue working in some capacity if you have your own business or, if you can, do part-time consulting work. Perhaps you'll set your sights on a new line of work you always wanted to get into or volunteer your time for a cause you find especially meaningful. Whatever it is you do, the main point of investing for your retirement is that you have a choice. The worse-case scenario is to be forced to continue working during your retirement years simply to make ends meet and hating every minute of it.
The time you've waited for is finally here--retirement! You're at the age where you should be enjoying more leisure time than stress time. This is when you may sell your home and downsize or move to a different locale altogether. Maybe your vacation getaway home will now become your year-round place. You may choose to continue working in some capacity if you have your own business or, if you can, do part-time consulting work. Perhaps you'll set your sights on a new line of work you always wanted to get into or volunteer your time for a cause you find especially meaningful. Whatever it is you do, the main point of investing for your retirement is that you have a choice. The worse-case scenario is to be forced to continue working during your retirement years simply to make ends meet and hating every minute of it.
Tuesday, November 11, 2008
When Time Is On Your Side?? - Part 3
Almost Ready to Retire
There may come a point in your life when the only goal you're investing for is your retirement. Your kids and maybe grandkids have gotten through college, your home is paid off and you have made preparations to pass along your wealth to your heirs when you're gone. You're starting to think about days spent playing golf or tennis, traveling, volunteering, or maybe writing that bestseller you know you have in you. You feel your working days, as you know them, are coming to a close.
Of course, hopefully, you followed our advice and haven't neglected investing for your retirement. While we understand that it may not have always been your only investment focus or even your most immediate one at times, how well you did with your retirement investing will determine whether you can afford to take any investment risks at all at this point. At this point, time is most definitely not on your side in terms of investing. As a matter of fact, if you've been really negligent about saving for your retirement, no amount of investing, safe or risky, will make up for the years lost. Unless you win the lottery, if you find yourself in this position, you may have to adjust your retirement goals accordingly, including postponing your retirement.
That being said, whatever your situation, at this stage of the game you should put as much as possible away toward your retirement. Your investments will necessarily be of the less risky variety since you don't have the time to make up for losses and the ups and downs of certain investment markets.
There may come a point in your life when the only goal you're investing for is your retirement. Your kids and maybe grandkids have gotten through college, your home is paid off and you have made preparations to pass along your wealth to your heirs when you're gone. You're starting to think about days spent playing golf or tennis, traveling, volunteering, or maybe writing that bestseller you know you have in you. You feel your working days, as you know them, are coming to a close.
Of course, hopefully, you followed our advice and haven't neglected investing for your retirement. While we understand that it may not have always been your only investment focus or even your most immediate one at times, how well you did with your retirement investing will determine whether you can afford to take any investment risks at all at this point. At this point, time is most definitely not on your side in terms of investing. As a matter of fact, if you've been really negligent about saving for your retirement, no amount of investing, safe or risky, will make up for the years lost. Unless you win the lottery, if you find yourself in this position, you may have to adjust your retirement goals accordingly, including postponing your retirement.
That being said, whatever your situation, at this stage of the game you should put as much as possible away toward your retirement. Your investments will necessarily be of the less risky variety since you don't have the time to make up for losses and the ups and downs of certain investment markets.
Subscribe to:
Posts (Atom)
Atom Feed (xml)