In 1963, American Express found itself on the wrong end of a very big, very bad loan to a company by the name of Allied Crude Vegetable Oil. The salad oil company faked its inventory, filling its tanks with seawater and only a modest amount of oil. Because oil is less dense than water, it would float at the top, making it appear as though the company had much more oil than it actually possessed.

Allied Crude Vegetable Oil borrowed on the basis that it had 1.8 billion pounds oil, but it only had 110 million pounds. Thus, American Express and other major banks, which took on the loan under the assumption it had ample collateral, found themselves staring down the barrel of substantial loan losses.

AmEx shares fell over 40%, as the market worried that it wouldn't survive. But Buffett was ready to buy, believing that the losses were only temporary, and that American Express's brand gave it enormous value over and beyond its accounting value.


American Express wasn't your typical corporation. It was organized as a joint stock company, which gave its owners unlimited liability for its losses. If its balance sheet were impaired, shareholders could be called on to contribute more capital. (It converted into a typical corporate structure two years after the scandal.)

In the book The Snowball: Warren Buffett and the Business of Life, author Alice Schroeder writes of the event, quoting Buffett himself:

"So every trust department in the United States panicked," recalls Buffett. "I remember the Continental Bank held over 5 percent of the company, and all of a sudden not only do they see that the trust accounts were going to have stock worth zero, but they could get assessed. The stock just poured out, of course, and the market got slightly inefficient for a short period of time."

Buffett bet big on the stock, putting 40% of his partnership's assets in American Express shares. And while he had made big bets before, this wasn't his standard fare. Previously, his large bets were concentrated in companies that could be liquidated for more than their stock-market value. This wasn't the case with AmEx, which Buffett was buying at well more than two times its book value and more than 15 times its earnings.

Up until this time, Buffett had primarily invested in companies that few would recognize, companies that would never make the front pages of a local newspaper, let alone find themselves in the middle of a national scandal. The size of his American Express investment gave Buffett a huge advantage that he never had before. Schroeder wrote that "[n]ever before had he invested like this. Never had he put to work anything approaching this much money, and so fast, in his life."

Having plunged as low as $35 per share, shares rapidly advanced to $70 per share, making Buffett and his investors millions in the course of just three years. The quick double from AmEx resulted in a return twice that of the S&P 500 over the period.


One of Buffett's most famous quips is that "only when the tide goes out do you discover who's been swimming naked."

If Buffett's investment in American Express during the salad oil scandal had turned out for the worse, Buffett might have continued on as a small-cap liquidator managing a handful of money rather than the legendary investor that he is today.


Some KNM investors panicked & dump their KNM shares as fear coming qr profit will be in red .Some investors see as an oppurtunity to collect KNM shares during temparory dips & have faith in KNM on its futures plans .Time will tell.

im in..united for KNM !

we will accumilate & fight until KNM turn green ! in General Lee we trust !

yes indeed Mabel ! all our non performing minister need to be replaced especially our finance minister !

foreign investors selling like no tmrw at klse ! klse worst performing stock market in the world ! our govt have to do something about it ! even good stock hard to perform at klse

Good morning everyone ! Mabel this you sleep last nite ?

after work just now i checked my queue was successful . i managed to top up some at RM 0.51.Hope to see Armada rebound next week !

moday if drop i will top up !

i will queue first at 0.35 & 0.36.buy next monday.

fight until KNM turn green ! in General Lee we trust !

good qr ! continue to hold & watch Armada fly !

im with you bro @ paktua.we fight when plenty fear !

we stand with General Lee ! until KNM turn green !

this morning queue at 0.385 & 0.38 done.continue queue buy at 0.365 & 0.36 !

top up done 0.38 !

@Shines.

Earnings Announcement for Period Ending Q3/2019:11/28/2019

Bloomberg

@Mabel.Well done & wish everyone make big money !

Good morning everyone.Yes Mabel. Barakah if bought at RM 0.03 if lose only RM 0.03.If big cap just one bad news it may fall RM 1 in just 1 or 2 days.Our govt need to improve to gain the confidence of foreign investors to invest for long term in our country & help push up our Klse index.All our ministers that not performing need to be replace.Hope our cabinet resuffle wil boost our stock market.All big projects like Ecrl, Bandar Malaysia need to be continue to lift up our economy & gain back the confidence of foreign investors.

Noted and thanks Guys

This is what I found out. Stand to be correct about Scomies..

It's about son trying to save parents. Anyway from what I read:

Scomies has 2.341 B at a Price 0.08. Like T800 say, tomorrow is the D Day. Also uncertainty about the QR Result. It's also a lost making company

Scomies has secured a conditional letter of offer for a bridging facility to meet the shortfall for the repayment of the guaranteed serial bond due on 14 December 2019. Technically speaking, the risk of default is resolved and Bursa will grant the waiver of pn17 after capital reduction and share consolidation

Barakah 835 million Price 0.025
Regulation Plan Work in Progress

Share wise Scomies has 6X bigger than Barakah shares floating
Price wise is 4 times cheaper than Scomies.

At this time, I think I pass this one. Market is currently not so good.

All the best T800 and keep us posted..


good infor Mabel.Tks

@investortrader88... I agree with you the market is no good. Its actually getting weaker by the day. Index-wise, staying at 1600 level is also a struggle. But its because of Ms Malaysia, Ms Universe & Ms Milky-way I am still around... Ha ha. Cheers


Indeed bro !

@Happy3933.im not a big timer.later people hear laugh die them..im a small bird looking for some earthworm...hahaha

@Mabel.If Bursa give award category : Queen of Bursa.If you win number two spot.nobody dare to win numbet one spot as yr 54 counters really amazing !

@cat lim.yes indeed.penny stock also can loss die us.

my current holding i have 20 counters at klse & 1 sgx. i like penny stocks.good returns compare to big caps stocks.

T800Terminator.Bro.my average price for my Alam shares RM 0.10 .same with you.i will top up if Alam reverse 0.10.now happy to see its on uptrend.

@youarewelcone88.sometimes got lucky & also timing bro

in stock market team work is important.make more friends.friends who are honest.we can advice each other if there is potential stock to buy & to earn money together.What i see our KLSE now not stable.Foreign investors dont want to stay long in our stock market.They dont have confident with our govt.If i buy stock i try not to buy at one time because of of stock market condition.3-4 times if the stock going downtrend to average down my share price if it drops.

@T800Terminator.bro few mths ago i bought Scomies. if not mistaken i bought at 0.075.sold all at 0.13.i didnt study about this company.just hold for short term.

good closing ! good can close green even Klse in red.

today klse blood bath. hope Alam tmrw continue uptrend !

good closing !

this morning i was busy with my work.i missed to top up at RM 0.385 - RM 0.40...only when i know i managed to top up at RM 0.405.im not scare to top up KNM share price even it keep dropping or people said KNM now a falling knife.Because we long term investors have faith in General Lee KNM will be back to its glory days ! In General Lee we trust !

@masterkevin212.i already queue buy for tmrw at RM 0.385 & RM 0.365

queue 0.39.hope can get

managed top up 0.405 !

i queue 0.395 & 0.40 cant get.so fast

huat ahhhhhh !

https://www.theedgemarkets.com/article/myeg-partners-philippines-land-bank-online-services

@T800Terminator.bro.if Barakah drop to RM 0.005 & we can own the shares is consider winning US lottery bro !

@youarewelcome88.apa nak malu bosku

longvalley.bro .have faith in General Lee !

need to be very patient with this counter.

https://www.thestar.com.my/business/business-news/2019/11/20/cpo-price-can-hit-rm3000-a-tonne-says-mpob

@youarewelcome88@Happy3933@Mabel

RM 0.025 = Miss Malaysia

RM 0.02=Miss Universe

this idss playing with KNM.later General Lee come goreng knm up , idss probably hanging on the coconut tree !

@LCLY.indeed ! beside high profit margin Elsoft give 4.52 % div !

@ paktua.Bro u need to stay at KNM.if u stay here KNM will turn green!

good closing ! huat ahhh !

Change in the Interest of Substantial Shareholder (201911203600213)
Company Name SERBA DINAMIK HOLDINGS BERHAD
Stock Code / Short Name 5279 / SERBADK
Date & Time Announce 20/11/2019 05:59:45 PM
Subject Changes in Sub. S-hldr's Int (Section 138 of CA 2016)

Content
Substantial Shareholder's Particulars
Name : EMPLOYEES PROVIDENT FUND BOARD
Address : Tingkat 19, Bangunan KWSP Jalan Raja Laut 50350 Kuala Lumpur Wilayah Persekutuan Malaysia
NRIC/Passport No/Company No. : EPF ACT 1991
Nationality/Country of Incorporation : Malaysia
Descriptions(Class & nominal value) : Ordinary Shares.

Name & address of registered holder
You are advised to read the entire contents of the announcement or
attachment.To read the entire contents of the announcement or attachment,please
access the Bursa website at http://www.bursamalaysia.com

Details
Date of Change No of shares Price Transacted(RM) Transaction type
15/11/2019 1,141,100.000 0.000 Acquired

Description of other type of transaction :
Circumstances by reason of which change has occured

Nature of interest : Direct Interest
Direct (units) : 89,360,900
Direct (%) : 6.085%

Indirect/deemed interest(units) : 0
Indirect/deemed interest(%) : 0.000%

Total no of shares after change : 89,360,900
Date of notice : 18/11/2019

Remarks
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com

free website hit counter

@youarewelcome88.no worries.we just queue everydsay at RM 0.02 until we hit the jackpot.good things need to be patient.just like you want to win a beautiful girl her heart.also need patient bro ! hahaha