Posted by gbk5566 > 2015-07-27 22:16 | Report Abuse

Thank you for sharing.

Posted by repusez > 2015-07-28 09:51 | Report Abuse

hi, any reason you have to use islamic banking in your example, "Assuming you want to invest RM1000 and your required return is 10%. You have the option to invest in two different Islamic banks below which distribute interest according to their financial performance."

i don't think islamic banking principle uses interest rate, they term it profit rate or something like that.

Posted by m00077 > 2015-07-28 10:20 | Report Abuse

I agreed to what ks55 said: World market already show symptoms it is heading for severe correction山雨欲来风满楼 and cask is king. Sell and keep your money. When market collapse, there are a lot of opportunities.

Posted by soojinhou > 2015-07-29 07:29 | Report Abuse

KC, your writing on ROE, ROIC and EV/EBIT helped me understand that these metrics are better indicators whether a company has a moat. Thanks for sharing, learned plenty from you.

Posted by kcchongnz > 2015-07-29 13:37 | Report Abuse

Posted by repusez > Jul 28, 2015 09:51 AM | Report Abuse
hi, any reason you have to use islamic banking in your example, "Assuming you want to invest RM1000 and your required return is 10%. You have the option to invest in two different Islamic banks below which distribute interest according to their financial performance."
i don't think islamic banking principle uses interest rate, they term it profit rate or something like that.

Thanks for pointing out. Let us focus on the message and the principle; whether it is called "interest" or "profit", the results are the same.

Posted by kcchongnz > 2015-07-29 13:54 | Report Abuse

Posted by soojinhou > Jul 29, 2015 07:29 AM | Report Abuse
KC, your writing on ROE, ROIC and EV/EBIT helped me understand that these metrics are better indicators whether a company has a moat. Thanks for sharing, learned plenty from you.

If the management has been consistently in the past earning a return of capital higher than its cost, they must have been doing something right all the time. It is highly probable that they will continue to do so. And the reverse is also most probably true.

One needs not tell them how to handle the business, or issue what bonus, free warrants, or split to boast up the share price. Let them focus on the business and increase shareholder value.

And yes, if a business is earning high return on capital, there must be some kind of moat.