Posted by stockraider > 2014-06-10 17:42 | Report Abuse

Lets say short term 7 days term interest rate hit 18% pa....will Warren buffet buy n lock in a 10 yrs bond with a lower a lower yield of 15% pa ?

The answer is yes loh......!!

ACTUALLY THIS A STANDARD.....BOND STRATEGIST ANSWER LOH...!!

WHY LEH ?
PLEASE PONDER LOH ?

Posted by sunztzhe > 2014-06-10 17:46 | Report Abuse

My question was "What was his stock investment strategy when interest rate spiral up to 18%?"
Of course , you should invest in bonds to earn 18% lah!!

Posted by stkoay > 2014-06-10 17:47 | Report Abuse

@stockraider.
The article was posted sometime ago.
Lost tract of it already, sorry.

Posted by NOBY > 2014-06-10 17:49 | Report Abuse

Risk Arbitrage of Perak Corporation Berhad kcchongnz
http://klse.i3investor.com/blogs/kcchongnz/48584.jsp

Posted by stockraider > 2014-06-10 17:52 | Report Abuse

Stock...bonds....property....always....evaluate on the same manner...there is no different of assessment mah....!!

ok....let talk about stock....when interest rate at 18% pa....stockmarket will have collapse loh.....!!

an investor.....will look....into stock....using higher required rate of return as a hurdle for investment. Raider think use 15% pa...as a hurdle....is fair loh....!!

if stock price also collapse....u may have the chance pick up bargains...even....if use very high hurdle rate of 15% pa as a basis of your selection loh.....!

Posted by stockraider > 2014-06-10 17:59 | Report Abuse

Koay....Latest development in...Prk corp...sorry to disappoint u....raider think u should quickly accept...the SCR offer....do not waste time loh...!!

This is bcos...Perak corp...had already engineer a collapse....in the earnings and had weaken....their balance sheet.

This is a corporate governance issue loh.....!!
So better....don get involve in the long run mah....!!

Take your monies... buy something else loh....!!

U may complain...unfair....unfair....!!...But this is the real world....u need to be practical loh.....!!

Posted by sunztzhe > 2014-06-10 18:25 | Report Abuse

Stockraider,
What will u do in global meltdown where inflation n interest rate skyrocket, currency turmoil, stock markets meltdown n gold silver prices abhor up?

Posted by stockraider > 2014-06-10 18:36 | Report Abuse

Already say mah....still buy stock loh.....but look for a very good bargain...must qualify high minimum..hurdle rate of 15% pa loh....!!

Posted by sunztzhe > 2014-06-10 20:30 | Report Abuse

Stockraider,
Sorry I dont agree with your views in "VALUË INVESTING AT START,DURING & END OF HYPERINFLATION PERIOD" as this will lead to financial disaster for anyone following your views in hyperinflation investing strategy.

SORRY TO BE VERY STRAIGHTFORWARD LAH ...PLEASE PONDER LOH...

YOU UNDERSTAND GOOD WHAT HYPERINFLATION IS MEH?

WHY RAIDER STRATEGY ADVISE is WRONG STRATEGY LOH?
Sunztzhe Reply: Because In hyper inflation, anything of paper value collapse drastically n NO VALUE LOH. WHY GO FOR NO VALUE LOH?

YOUR HURDLE RATE OF 15% TOO LOW LOH
YOU THINK IN HYPERINFLATION YOUR HURDLE RATE OF 15% GOOD MEH?
PLEASE PONDER AGAIN LOH

SUNZTZHE VIEW:
The ONLY store of Value against hyperinflation is to hold Physical gold and Silver LOH. Buy as much physical Gold and Silver at start of hyperinflation LOH as GOLD & SILVER will hold its value against hyperinflation.

RAIDER TALK ABOUT VALUE INVESTING, SUNZTZHE TALK ABOUT VALUE PRESERVATION. RAIDER UNDERSTAND THE DIFFERENCE IN THE TWO CONCEPTS MEH?

PLEASE PONDER HARD HARD LOH

REALLY MEH? OF COURSE LAH, IF DONT BELIEVE GO GOOGLE HYPERINFLATION LAH

SUNZTZHE STRATEGY N ADVISE TO RAIDER:
BUY PHYSICAL GOLD n SILVER AT START OF HYPERINFLATION
HOLD IT THROUGH ALMOST TO END OF HYPERINFLATION
THEN SELL GOLD N SILVER , GO TO CASH
USE CASH TO BUY PROPERTIES & UNDERVALUED STOCKS

SUNZTZHE STRATEGY & ADVISE MAKE SENSE TO YOU MEH?

PLEASE GIVE STRAIGHTFORWARD HONEST REPLY LOH.

Stockoperator,
What is your view loh? Does Sunztzhe strategy in hyperinflation value investing make sense meh?

Posted by calvintaneng > 2014-06-10 20:31 | Report Abuse

I watching Interesting Discussion here from Iskandar Computer Shop. KEEP IT UP!

Posted by calvintaneng > 2014-06-10 20:33 | Report Abuse

In Times of Hyperinflation CASH IS TRASH!

In Times of Depression CASH IS KING!

Posted by stockraider > 2014-06-10 20:33 | Report Abuse

U r talking rubbish loh.....!!
What is stock ?
It is a business....with assets and with earning capacity loh....!!
It produce something that people need loh....!

What's not better protection to a hyper inflation...other than business leh ?

Stock is not paper.....but real business assets mah....!!

Posted by stockraider > 2014-06-10 20:38 | Report Abuse

Yes...gold n silver can be an option ?
But it is much....too risky loh.....bcos people don really need gold at all mah...bcos it has no utility used loh....and it is not earning u any income too....!!

Imagine...u r paying interest rate of 18%pa....and u holding something like gold that do not pay u or earn u anything..loh....!!

I think....not good solution loh....!!

Posted by calvintaneng > 2014-06-10 20:44 | Report Abuse

Hyperinflation!

During one period of hyperinflation one guy ordered a cup of coffee. After finishing the first cup he ordered a second cup. To his surprise he was told that price has doubled for his 2nd cup of coffee because of hyperinflation!

And every one who receive daily wage quickly spent all on the same day because stuff will go up in price the very next day.

There came a time when the money value is less than the value of the paper itself. They use wheel barrows to carry cash. And later money papers became so worthless that they were used as wall papers!

Posted by sunztzhe > 2014-06-10 20:44 | Report Abuse

Sure meh?
U live through 1929 wallstreet crash meh ?
u sure stock price hold its value during hyperinflationary period meh?
u live through hyperinflation during Weimar republic meh?
u sure u no talk rubbish on "Value Investing during Hyperinflationary period meh?

just answer honestly loh

"What asset is the only store of value during hyper inflationary times loh?"

Posted by calvintaneng > 2014-06-10 20:49 | Report Abuse

Depression!

A 10,000 sg ft Huge Bungalow went for Auction in 1987 in PJ Section 17.
Price was RM180,000

After The Asian Financial Crisis You Can Buy A Peugeot 505Sr for RM12,000 (3 months earlier I sold these for RM45,000 each) Price Crashed 74% in 3 short months!

Posted by sunztzhe > 2014-06-10 20:56 | Report Abuse

stockraider,
U r full of fire loh
Please calm down and think out of the box loh

U r still using your high competency in Value Investing which is of no value during hyperinflationary period loh
U still don't accept this harsh truth to your ego meh?

U still think your high competency in Value Investing will arm u to fight against hyperinflation meh?
Tell me how many competent and highly skilled financial experts like u got killed during hyper inflationary period?

How many survived? Have you talked to George Soros or not? Pick his brains on how to survive and preserve assets during hyperinflationary period?

U still think Value investing will work well during hyperinflationary period meh?

Do u understand and accept that asset preservation strategy is the only strategy to fight against hyperinflationary period?

Raider Still very stubborn meh?

Posted by calvintaneng > 2014-06-10 20:59 | Report Abuse

They are 4 views on Gold

1) Marc Faber - Gold As A Protection Against Money Destruction by FED
2) Jim Rogers - Gold As An Undervalued Commodity
3) George Soros - Gold is like another money making bets
4) Warren Buffet - Gold is a No No! It does not generate useful services for mankind like Businesses that produce useful goods and services.

Marc Faber & Jim Rogers never sell their gold. George Soros sold gold around US16,000. Warren Buffet never buy any.

Posted by sunztzhe > 2014-06-10 21:04 | Report Abuse

Well written Calvin and thank you.

Posted by calvintaneng > 2014-06-10 21:07 | Report Abuse

As Investor I followed Marc Faber. Bought Gold at RM320. But after George Soros sold his Gold at US1,600 (Sorry US1,600 not US16,000) Gold rose futher to almost US2,000 but Crahed Back. I Sold at US1700. Now I am looking to buy Gold back below US1000

I LIKE WARREN BUFFET's ARTICLE ON GOLD.

Since then Better Follow Warren Buffet To Buy Shares. US is Indirectly in High Inflation Period By Money Printing Now. So Warren Buffet & Stockraider both correct - buy Good Companies!

Posted by calvintaneng > 2014-06-10 21:10 | Report Abuse

Gold went up from US320 to US1,900 in 7 years. Up 590% in 7 years. Yes! Long Term Investing Is THE WAY TO GO.

Posted by sunztzhe > 2014-06-10 21:15 | Report Abuse

stockraider,
U r financial expert, very highly competent one loh
I salute your high competent skills loh

Please think out of the box for once in your life loh
Go Singapore and make appointment with Jim Rogers to seek his advise on Asset Preservation strategy during hyperinflationary times
Just do it for your understanding loh

All of you Valuë investors are brained damaged by Warren buffet "Value Investing Methodology"
Dont you understand that Warren Buffett Value Investing has no place during hyperinflationary times ?

Value Investing will again become of value after hyperinflation ends

Raider Still think sunztzhe still talk rubbish meh?

Posted by fortunebullz > 2014-06-10 21:15 | Report Abuse

Hyperinflation only happen to badly manage economy! Dont bother to even discuss about hyperinflation in Malaysia! Non existence!

Posted by fortunebullz > 2014-06-10 21:17 | Report Abuse

If you completely open up Malaysia, you may suffer extreme deflation!

Posted by stockraider > 2014-06-10 21:19 | Report Abuse

Do not get....distracted by the hyper inflation....currency debasement thing loh.....!!

For gpld....to be of great value & has utlity value....they must be totally lack of confidence in the issue of value of the country loh....!!

Talk about Germany.....the Mark was debased .....they need start a new currency a new mark....due to hyper inflation.....Then maybe there are some value on gold loh...!! Still people who own property beside gold also did very well mah.....!!

The other thing....when the Japanese....lost their war in Malaya...the Japanese....banana monies....was disbanded too & become useless....!!
But still people who own farm land, properties and factories did very well too....!!

Than the issue of Vietnam....when the South Vietnam loss....people who want to run away....as boat people....carry some gold with them loh...!! But still even that....they can carry alternative assets like foreign currencies....bcos gold is heavy too.....!!

The example...showed...unless...they is war....and the country u r
supporting lose the war....and u need to be a refugee to avoid prosecution ...then gold will have utility value loh....!!
But they are alternative too like foreign currencies & diamond etc

So most of the time...business or ur share....will be a very good protection against inflation loh....!!

Posted by sunztzhe > 2014-06-10 21:21 | Report Abuse

stockraider,
U r financial expert, very highly competent one loh
I salute your high competent skills loh

Please think out of the box for once in your life loh
Go Singapore and make appointment with Jim Rogers to seek his advise on Asset Preservation strategy during hyperinflationary times
Just do it for your understanding loh

All of you Valuë investors are brained damaged by Warren buffet "Value Investing Methodology"
Dont you understand that Warren Buffett Value Investing has no place during hyperinflationary times?
U all shall suffer financial depreciation in assets by using Warren Buffet Investment advise loh
Why loh? Because your hurdle rate will be much more than 15% loh, it changes every day loh
15%, 30%, 100%, 1000%, 10,000% etc
What is your NPV using these high discount rate loh?
The answer is simple loh...nearly zero value loh
Raider still no understand meh? Or Raider too stubborn to think out of box meh?

Value Investing will again become of value after hyperinflation ends

Raider Still think sunztzhe still talk rubbish meh?

Posted by calvintaneng > 2014-06-10 21:25 | Report Abuse

Malaysia is in good hands. Zeti is among the Top 10 Bankers in the world. Highly respected. So no need to worry. Just keep buying undervalued shares.

Right now the Expert Marc Faber is NOT EXPECTING HYPERINFLATION - But A Market Crash Instead. He bought 10 year US Treasury Bond this year

Posted by stockraider > 2014-06-10 21:25 | Report Abuse

U r Still in the stone age loh....!!

Posted by fortunebullz > 2014-06-10 21:26 | Report Abuse

Stockraider! I enjoy your view since you first join here in i3! What do you think of Bright! Share your thoughts please!

Posted by stockraider > 2014-06-10 21:31 | Report Abuse

Today modern world...everything is solve thru commerce...which is business mah..!

Gold is just a fear factor currency, with limited useful use during instability like war loh.....!! it is an archaic thing loh.....!!

If a business....give a good return.....it already hedge against inflation loh....!!

If u own plantation....u r productive n hedging against inflation mah..!!

Posted by stockraider > 2014-06-10 21:33 | Report Abuse

Fortune,
U talking about bright packaging....!!
This is quite a good company loh....!!

Posted by sunztzhe > 2014-06-10 21:36 | Report Abuse

Is currency wars happening now?
Is currency wars currency debasement?
What is your view state of economy in USA, EUROLAND, CHINA , JAPAN loh
What are the Central banks in these countries doing or planning to do loh?
Would worldwide liquidity shrink meh?

Posted by fortunebullz > 2014-06-10 21:40 | Report Abuse

Stockraider! Yes, I am very confident BRIGHT is superb! Just want to hear from you! I did follow you in Invest few years back! All your recommendations mind blowing! Hope you write some in BRIGHT forum!

Posted by stockraider > 2014-06-10 21:44 | Report Abuse

I lazy to argue with u on economics....currency war....meant printing monies....worldwide....this mean....cash will have less n less value mah.....!!

This mean inflation loh....!!
This mean higher cost of living loh....!!

How to benefit from higher cost of living ?
Do business or buy share that supply the thing people need and has the pricing power mah....!!

U buy gold.....but gold don give u return mah....!!
u may not... even need gold....bcos....u cannot eat gold mah...!!
As I say...u need gold....when u want to be a refugee during war loh...!!

Always stick to business....the frontline....to fight inflation loh...!!

Posted by fortunebullz > 2014-06-10 21:51 | Report Abuse

US will stop printing money soon! Gold will be cheap again!

Posted by sunztzhe > 2014-06-10 21:52 | Report Abuse

Yes loh
Buy some gold coins loh
Buy plantation shares loh
Buy shares of good business loh
Buy land/property loh

Spend money and Go enjoy yourself loh

Posted by stockoperator > 2014-06-10 23:35 | Report Abuse

I Believe in different asset portfolio. To do that we need to have deep understanding of different asset and purpose.

1) It is a generational Wisdom that we keep wedding gold rings and ornaments and pass those down from generation to the next; Well, it is Not productive But look at Purpose first. Don't calculate the return yet. Because the Purpose itself will save you during Emergency.

So adopt a good habit to Buy family gift in gold during occasions ya.

2) Very luckily some friends listen to me to Buy properties few years back and they are most grateful today. I have to shout them out of their minds as the Only thing they know is stock market and Warren Buffet.

I like rental income with good locations.

Look at our generational house passing down from one generation to the next. And we must be grateful that our Parents is capable of doing that.

3) Few friends always challenges me to do some Business. Well i manage a small investment in laundry shop and photostat shop as they don't require Big capital expenditure.

4) Some Mutual funds are doing quite well. You may want to park your money there Once in a year for savings.

5) Keep 20% of your Holding in FD. I consider cash as Investment as well.

6) Surely almost 50% of my investment is in stock market with good earning yield about 15%. I will be more Overweight in Plantation, general insurance and consumer products.

I hope this can be efficient frontier.

Lets talk about hyperinflation Only when it happens ya.

Posted by sunztzhe > 2014-06-11 00:18 | Report Abuse

Most people here are cushioned by a benign interest rate environment
They think that life is ever so good, nothing to worry
They don't understand the concept behind uncontrolled money creation and its consequent impact on daily lives
Uncontrolled money creation has its consequences but most people here are "kataks behind tempurung", thinks that life is ever so rosy
well if you have not experienced it, how will you know? That is precisely the point

Very few will know about uncontrolled money creation until the symptoms appear
By that time its too late, hyperinflation suddenly emerges
Just like the calm sea before the tsunami unleashed its fury in Thailand
Nobody knew that tsunami was approaching from far distance and even admired the beautiful long distant waves coming onshore
How beautiful is the wave, wow look at its beauty!!
little did they realized that tsunami is on the way
heading towards them with sudden fury
How many people died? killed by the sudden fury?
Hyperinflation tsunami will have devastating effects, that's for sure

They may understand the concept of hyperinflation but they may not have the experience of living through one
In reality they don't know how to deal with hyperinflation
Talking and living through hyperinflation require different skillsets
I have lived through hyperinflation elsewhere in this world
I know what hyperinflation is all about,what it does to the economy, to ones daily life, to ones purchasing power

Posted by fortunebullz > 2014-06-11 00:22 | Report Abuse

Hahahaha! Better talk about market crash than hyperinflation! Maybe in latin america or africa but not in Asia!

Posted by leno > 2014-06-11 08:12 |

Post removed.Why?

Posted by stockraider > 2014-06-11 09:47 | Report Abuse

Yes...better stick to the topic of value management...!!
This is already a big area to cover....no point.....swayed from course loh.....!!

Hyperinflation....perhaps....if want to explore...can open...on another thread mah....!!

Posted by stockoperator > 2014-06-11 10:08 | Report Abuse

Guys, listen up. When you buy gold chain or gold ring for your spouse, do you know how happy they are. They will show off for few months!

Posted by sunztzhe > 2014-06-11 11:23 | Report Abuse

stockopertor,
Just online and read your comments.
When your spouse is tired of showing off old gold ring to friends , buy her a new gold chain, gold ring or gold coin. Gold coin she can keep. It is store of value just to diversify a wee bit as we are not 100% sure of what is going to happen in the financial future. For risk management buy highest quality and please get an authenthic certificate verification on % gold content.

Posted by stockoperator > 2014-06-11 11:33 | Report Abuse

Ha, thanks. We just show off to ourselves lah behind closed door.

Posted by stockoperator > 2014-06-11 11:37 | Report Abuse

The Biggest concern to me is How the young generation today to Buy a house? TO me property is the Biggest investment.

Posted by sunztzhe > 2014-06-11 12:23 | Report Abuse

Leno,
You have a big ego, personality ala poisonality problem. Just look at yourself in the mirror and ask yourself this question

First Question:
"Do I have big ego, personality ala poisonality problem?"

Second Question:
"How can I further improve my self image"

Hopefully you will address your weaknesses honestly and make a stupendous real effort to self improve. Hiking up Kinabalu is peanuts compared to your path to self improvement and image remaking loh.

For a start please refrain from ridiculing others as Blue Chip Pundan Investor, Bodo Sombong type ... stupeed etc" as these reflect badly on your upbringing and also how your parents had brought up so. Sorry I have to be honest with you on this matter.

Since you are panlai investor I will ask you , what will be your Return on Invested Capital on PRK Corp after SCR? Let us compare apples with apples OK? I had also invested in PRK Corp. I got in @1.80 and got out @3.20. Next I enter MKH @2.65, sold off cum bonus @4.80, Reenter after bonus @ 3.62. Now MKH price@ 3.93. U r a financial expert, please calculate using just 1,000 shares.

Have u lived with hyperinflation meh? wow you talk so panlai lah
Quote:
"Panlai investor seldom tok kok about economy lor. Usually use bottom up lor. Take one company, analyse and make decision. So simple. Got correct or not leno said ? Sure correct wan"
Unquote

When u r living in a hyperinflation country , do u still think "use bottom up lor. Take one company, analyse and make decision. So simple" is the right financial strategy ? Please ponder more loh.

Leno, I think u really "tok kok to yourself and had shown to yourself that you are indeed bodoh sombong..stupeed only loh."

In hyperinflation situation, Calvin Tan was spot on .."CASH IS TRASH". What is the point of high audited cash backing per share of a company in hyperinflation country like you so panlai panlai identify a company?

What would you do when you have cash in hyperinflation country? You still want to do Value investing methodology, hurdle rates discounting when the inflation rate keep on increasing by the hour? By the time you had computed the NPV, it is no longer valid loh. What will be your financial strategy to preserve the value of your cash in hyper inflationary period?

I hope you will take the above feedback positively to make effort to re-make your self image. If had not cared for you, I will not have even bothered to reply to your comments.

I so sincerely hope that you wont feel offended Leno as we all must rise above personal trivialities, personal prejudices to see the greater benefit of improving financial returns from investment through active discussion, challenging each other investment ideas, sharing info and sometimes heated exchanges. I believe that active but sometimes "heated challenge" is a very effective process to get the best value ideas out of every participants. Based on last night discussion on hyperinflation, I value the input from stockraider, Calvin Tan the most.

Thank you for your understanding. I hope this communication is also a learning process to you as well.

Posted by calvintaneng > 2014-06-11 13:19 |

Post removed.Why?

Posted by leno > 2014-06-11 14:11 |

Post removed.Why?

Posted by stockraider > 2014-06-11 15:01 | Report Abuse

Raider already emphasis....the margin of safety share investment tech..can be used for all season.....even hyper inflation days loh...!!

In today...environment....there is no such thing as inflation all the way....or recession all the way mah......!! This is bcos there is always....intervention of the invisible hand loh....!!

Therefore....u can always expect some form of moderation loh...!!
Take Greece for example...at the height of the crisis....the govt borrowing rate was 20% pa....and today it is around 5% pa....a big swing within a period of 1.5 year loh....!!

Raider always refrain...from recommending....to buy gold for protection against hyper inflation...bcos it a lousy option based on todays....environment....as gold....do not earn u anything loh...!!
A simple purchase of quality undervalue stock....at hurdle rate of 15% pa above....can do a better job....of protecting u against hyper inflation loh.....!!

Raider....only see gold is useful.....when there is a war...and the govt u bet has collapse....and u need to run away as a refugee loh...!!

Those...holding gold at the height of Greece crisis at usd 2000...will be crying now as gold is only usd 1300 loh...!! Btw....u do not get any income loh....!!

Those who bought bonds and quality stocks at the height of greek crisis are laughing all the way to the bank loh....!!

Posted by leno > 2014-06-11 15:24 | Report Abuse

those who bought value stocks graham or lynch style before, during, and after any crisis are laughing kekekekekek ... value investing is about margin of safety ... meaning having my back side cover in case of anything bad happening lor. Once cover backside then only waiting for upside mar. Simple or not ? See ... told u so simple mani time alredi ... KEKEKEKEKEK