| Date Announced | 22-May-13 | |||
| Changes in Share Holdings | ||||
| Company | Shrs Acquired/ | Director/Substantial Shareholder | Shrs held | |
| (Disposed) | after Changed | |||
| ALLIANCE FINANCIAL GROUP BERHAD | AFG | (909,000) | Employees Provident Fund Board | 190,793,140 |
| 81,000 | ||||
| ALLIANCE FINANCIAL GROUP BERHAD | AFG | (24,400) | Mitsubishi UFJ Financial Group, Inc ("MUFG") | 80,532,807 |
| ALLIANCE FINANCIAL GROUP BERHAD | AFG | (3,400) | Mitsubishi UFJ Financial Group, Inc ("MUFG") | 80,529,407 |
| ALLIANCE FINANCIAL GROUP BERHAD | AFG | (300,000) | Employees Provident Fund Board | 191,111,240 |
| 618,100 | ||||
| ALLIANCE FINANCIAL GROUP BERHAD | AFG | 2,900 | Mitsubishi UFJ Financial Group, Inc ("MUFG") | 80,532,307 |
| AIRASIA BERHAD | AIRASIA | 4,000,000 | Employees Provident Fund Board | 231,549,000 |
| MALAYSIA AIRPORTS HOLDINGS BERHAD | AIRPORT | (7,700) | Employees Provident Fund Board | 135,171,520 |
| AL-`AQAR HEALTHCARE REIT | ALAQAR | 1,311,400 | Lembaga Tabung Haji | 57,761,356 |
| AMMB HOLDINGS BERHAD | AMBANK | (81,100) | Employees Provident Fund Board | 331,972,457 |
| 2,928,900 | ||||
| BENALEC HOLDINGS BERHAD | BENALEC | (2,782,000) | Kumpulan Wang Persaraan (Diperbadankan) | 53,064,600 |
| BIMB HOLDINGS BERHAD | BIMB | 659,000 | Employees Provident Fund Board | 97,370,700 |
| BINTULU PORT HOLDINGS BERHAD | BIPORT | (293,900) | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | 38,792,300 |
| BOILERMECH HOLDINGS BERHAD (ACE Market) | BOILERM | (668,800) | Leong Yew Cheong | 38,877,412 |
| BURSA MALAYSIA BERHAD | BURSA | (5,800) | Mitsubishi UFJ Financial Group, Inc. ("MUFG") | 27,869,258 |
| 42,400 | ||||
| CIMB GROUP HOLDINGS BERHAD | CIMB | (1,354,400) | Employees Provident Fund Board | 877,827,032 |
| 1,186,000 | ||||
| CIMB GROUP HOLDINGS BERHAD | CIMB | (433,900) | Mitsubishi UFJ Financial Group Inc (MUFG) | 794,785,177 |
| CAPITAMALLS MALAYSIA TRUST | CMMT | (750,000) | Employees Provident Fund Board | 165,943,600 |
| DIALOG GROUP BERHAD | DIALOG | 2,500,000 | Employees Provident Fund Board | 372,190,035 |
| DIGI.COM BERHAD | DIGI | (1,014,600) | Employees Provident Fund Board | 1,201,738,740 |
| DOLOMITE CORPORATION BERHAD | DOLMITE | 278,970 | HUANG JEN SOONG | 9,074,073 |
| DRB-HICOM BERHAD | DRBHCOM | 500,000 | EMPLOYEES PROVIDENT FUND BOARD | 146,287,600 |
| EASTERN & ORIENTAL BERHAD | E&O | 311,600 | CIMB COMMERCE TRUSTEE BERHAD | 59,504,000 |
| EASTERN & ORIENTAL BERHAD | E&O | 8,351,900 | CIMB COMMERCE TRUSTEE BERHAD | 67,855,900 |
| FELDA GLOBAL VENTURES HOLDINGS BERHAD | FGV | 342,000 | EMPLOYEES PROVIDENT FUND BOARD | 299,986,370 |
| FELDA GLOBAL VENTURES HOLDINGS BERHAD | FGV | (105,000) | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | 253,079,800 |
| GENTING PLANTATIONS BERHAD | GENP | (5,000) | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | 46,545,700 |
| GENTING PLANTATIONS BERHAD | GENP | (200,000) | EMPLOYEES PROVIDENT FUND BOARD | 116,458,200 |
| HAP SENG CONSOLIDATED BERHAD | HAPSENG | (8,935,100) | Gek Poh (Holdings) Sdn Bhd | 1,272,992,880 |
| HAP SENG CONSOLIDATED BERHAD | HAPSENG | (8,935,100) | Hap Seng Insurance Services Sdn Bhd ["HSIS"] | 108,481,780 |
| HONG LEONG BANK BERHAD | HLBANK | 80,000 | Employees Provident Fund Board | 260,375,772 |
| HOCK SENG LEE BERHAD | HSL | 263,400 | Employees Provident Fund Board | 56,128,560 |
| HAP SENG PLANTATIONS HOLDINGS BERHAD | HSPLANT | (2,916,000) | Gek Poh (Holdings) Sdn Bhd | 424,240,000 |
| HAP SENG PLANTATIONS HOLDINGS BERHAD | HSPLANT | (2,916,000) | Hap Seng Consolidated Berhad | 424,240,000 |
| ICAPITAL.BIZ BERHAD | ICAP | 129,200 | City of London Investment Management Company Ltd | 12,781,900 |
| IGB CORPORATION BERHAD | IGB | (175,100) | Employees Provident Fund Board (EPF) | 92,544,122 |
| 193,400 | ||||
| IHH HEALTHCARE BERHAD | IHH | 1,043,900 | Employees Provident Fund Board | 530,355,000 |
| IJM CORPORATION BERHAD | IJM | (123,300) | Kumpulan Wang Persaraan (Diperbadankan) | 102,766,280 |
| 200,000 | ||||
| IJM CORPORATION BERHAD | IJM | (500,000) | Employees Provident Fund Board | 154,793,489 |
| 100,000 | ||||
| IJM LAND BERHAD | IJMLAND | (174,200) | Employees Provident Fund Board | 75,870,300 |
| KUALA LUMPUR KEPONG BERHAD | KLK | 31,500 | Employees Provident Fund Board | 162,743,138 |
| MAH SING GROUP BERHAD | MAHSING | 175,000 | Employees Provident Fund Board ("EPF") | 103,001,960 |
| MAH SING GROUP BERHAD | MAHSING | (3,000,000) | Kumpulan Wang Persaraan (Diperbadankan) | 57,173,866 |
| MAH SING GROUP BERHAD | MAHSING | (3,100,000) | Kumpulan Wang Persaraan (Diperbadankan) | - |
| MAXIS BERHAD | MAXIS | 2,019,000 | Employees Provident Fund Board ("EPF Board") | 478,710,400 |
| MALAYAN BANKING BERHAD | MAYBANK | (5,698,000) | EMPLOYEES PROVIDENT FUND BOARD | 874,025,124 |
| MBM RESOURCES BHD | MBMR | (500,000) | EMPLOYEES PROVIDENT FUND BOARD | 58,401,891 |
| 170,000 | ||||
| MICROLINK SOLUTIONS BERHAD (ACE Market) | MICROLN | 3,000 | Insas Berhad | 7,852,400 |
| MICROLINK SOLUTIONS BERHAD (ACE Market) | MICROLN | 3,000 | Insas Plaza Sdn Bhd | 7,852,400 |
| MISC BERHAD | MISC | (34,300) | Employees Provident Fund Board | 426,309,958 |
| MISC BERHAD | MISC | (811,700) | Employees Provident Fund Board | 426,442,158 |
| MISC BERHAD | MISC | (97,900) | Employees Provident Fund Board | 426,344,258 |
| MK LAND HOLDINGS BERHAD | MKLAND | (8,700,000) | KASI A/L K L PALANIAPPAN | 268,134,415 |
| MNRB HOLDINGS BERHAD | MNRB | (255,200) | AMANAHRAYA TRUSTEES BERHAD - SKIM AMANAH SAHAM BUMIPUTERA | 101,423,000 |
| METRONIC GLOBAL BERHAD | MTRONIC | (8,000,000) | Ling Yew Kong | 37,355,000 |
| NESTLE (MALAYSIA) BERHAD | NESTLE | (32,200) | Employees Provident Fund Board | 23,404,200 |
| NESTLE (MALAYSIA) BERHAD | NESTLE | (1,200) | Employees Provident Fund Board | 23,403,000 |
| NESTLE (MALAYSIA) BERHAD | NESTLE | (5,000) | Employees Provident Fund Board | 23,398,000 |
| NYLEX (MALAYSIA) BERHAD | NYLEX | 227,800 | Pacific & Orient Berhad | 85,356,388 |
| NYLEX (MALAYSIA) BERHAD | NYLEX | 227,800 | Chan Thye Seng | 85,356,388 |
| NYLEX (MALAYSIA) BERHAD | NYLEX | 227,800 | Mah Wing Holdings Sdn Bhd | 85,356,388 |
| NYLEX (MALAYSIA) BERHAD | NYLEX | 227,800 | Mah Wing Investments Limited | 85,356,388 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 2,100 | Aberdeen International Fund Managers Limited | 46,725,100 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 36,100 | Aberdeen International Fund Managers Limited | 46,761,200 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 2,100 | Aberdeen Asset Management Asia Limited | 54,222,700 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 36,100 | Aberdeen Asset Management Asia Limited | 54,258,800 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 2,100 | Aberdeen Asset Management PLC and its subsidiaries | 66,145,200 |
| ORIENTAL HOLDINGS BERHAD | ORIENT | 36,100 | Aberdeen Asset Management PLC and its subsidiaries | 66,181,300 |
| PANASONIC MANUFACTURING MALAYSIA BERHAD | PANAMY | 2,000 | Mitsubishi UFJ Financial Group,Inc ("MUFG") | 6,073,000 |
| PANASONIC MANUFACTURING MALAYSIA BERHAD | PANAMY | 700 | Aberdeen Asset Management PLC and its subsidiaries | 8,731,800 |
| PANASONIC MANUFACTURING MALAYSIA BERHAD | PANAMY | 2,000 | Aberdeen Asset Management PLC and its subsidiaries | 8,733,800 |
| PANTECH GROUP HOLDINGS BERHAD | PANTECH | (1,200,000) | GL MANAGEMENT AGENCY SDN BHD | 79,895,960 |
| PANTECH GROUP HOLDINGS BERHAD | PANTECH | (1,200,000) | DATO’’ GOH TEOH KEAN | 79,895,960 |
| PANTECH GROUP HOLDINGS BERHAD | PANTECH | (1,200,000) | DATIN LEE SOCK KEE | 79,895,960 |
| PARKSON HOLDINGS BERHAD | PARKSON | (559,300) | Kumpulan Wang Persaraan (Diperbadankan) ("KWAP") | 55,968,954 |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Guoco Group Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GuoLine Overseas Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GuoLine Capital Assets Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Hong Leong Company (Malaysia) Berhad | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | HL Holdings Sdn. Bhd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Tan Sri Quek Leng Chan | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GLL (Malaysia) Pte. Ltd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Pembinaan Sri Jati Sdn. Berhad | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Bedford Development Sdn. Bhd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GuocoLand Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GuocoLand Assets Pte. Ltd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Hong Realty (Private) Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Hong Leong Investment Holdings Pte. Ltd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Kwek Holdings Pte. Ltd. | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Kwek Leng Beng | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Davos Investment Holdings Private Limited | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Kwek Leng Kee | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | Quek Leng Chye | - |
| PASDEC HOLDINGS BERHAD | PASDEC | (1,750,200) | GuocoLand (Malaysia) Berhad | - |
| PUBLIC BANK BERHAD | PBBANK | (1,925,900) | Employees Provident Fund Board | 461,040,381 |
| 130,000 | ||||
| PETRONAS CHEMICALS GROUP BERHAD | PCHEM | 950,000 | Employees Provident Fund Board | 1,012,690,800 |
| PETRA ENERGY BERHAD | PENERGY | (1,241,000) | Lembaga Tabung Haji | 22,299,412 |
| PERISAI PETROLEUM TEKNOLOGI BHD | PERISAI | (2,005,200) | EMPLOYEES PROVIDENT FUND BOARD | 61,793,000 |
| PERISAI PETROLEUM TEKNOLOGI BHD | PERISAI | 1,600,000 | EMPLOYEES PROVIDENT FUND BOARD | 63,393,000 |
| PETRONAS DAGANGAN BHD | PETDAG | (80,000) | Employees Provident Fund Board | 73,440,900 |
| PETRONAS DAGANGAN BHD | PETDAG | 41,900 | Employees Provident Fund Board | 73,482,800 |
| PETRONAS GAS BERHAD | PETGAS | (44,000) | EMPLOYEES PROVIDENT FUND BOARD | 266,966,400 |
| 222,000 | ||||
| PETRONAS GAS BERHAD | PETGAS | (150,900) | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | 104,779,600 |
| 36,900 | ||||
| POS MALAYSIA BERHAD | POS | (300,000) | Employees Provident Fund Board | 41,467,800 |
| PRICEWORTH INTERNATIONAL BERHAD | PWORTH | (4,500,000) | Lee Kian Vui | 9,648,150 |
| SIME DARBY BERHAD | SIME | (454,400) | Employees Provident Fund Board | 809,389,455 |
| 1,249,800 | ||||
| SAPURAKENCANA PETROLEUM BERHAD | SKPETRO | (816,400) | Employees Provident Fund Board | 679,584,689 |
| 1,150,000 | ||||
| SKP RESOURCES BHD | SKPRES | (9,000,000) | DATO’’ GAN KIM HUAT | 525,424,291 |
| SKP RESOURCES BHD | SKPRES | (9,000,000) | RENOWN MILLION SDN BHD | 175,246,075 |
| S P SETIA BERHAD | SPSETIA | 200,000 | KUMPULAN WANG PERSARAAN (DIPERBADANKAN) | 129,158,850 |
| S P SETIA BERHAD | SPSETIA | 1,850,000 | Employees Provident Fund Board | 128,666,230 |
| S P SETIA BERHAD | SPSETIA | (671,200) | Mitsubishi UFJ Financial Group, Inc ("MUFG") | 133,161,400 |
| SUNWAY REAL ESTATE INVESTMENT TRUST | SUNREIT | (845,000) | Employees Provident Fund Board | 318,304,300 |
| 250,000 | ||||
| TASEK CORPORATION BERHAD | TASEK | 5,000 | Mitsubishi UFJ Financial Group, Inc ("MUFG") | 14,851,759 |
| TH PLANTATIONS BERHAD | THPLANT | 1,480,200 | Employees Provident Fund Board | 47,855,400 |
| TELEKOM MALAYSIA BERHAD | TM | 249,900 | Employees Provident Fund Board | 480,700,300 |
| TOP GLOVE CORPORATION BHD | TOPGLOV | (809,200) | Kumpulan Wang Persaraan (Diperbadankan) | - |
| TRIPLC BERHAD | TRIPLC | (6,488,295) | Gempur Likas Sdn Bhd | - |
| TRIPLC BERHAD | TRIPLC | (6,488,295) | Ho Kim Shing | - |
| TRIPLC BERHAD | TRIPLC | (6,488,295) | Md Zahary Bin Malek | - |
| TRIPLC BERHAD | TRIPLC | 4,000,000 | Minat Bakti Sdn Bhd | 4,000,000 |
| TRIPLC BERHAD | TRIPLC | 4,000,000 | Aidil Bin Abdul Aziz | 4,000,000 |
| TRIPLC BERHAD | TRIPLC | 4,000,000 | Ruzlan Bin Rahmat | 4,000,000 |
| UNITED MALACCA BERHAD | UMCCA | 12,800 | Aberdeen Asset Management PLC and its subsidiaries ("The Group&qu | 29,152,050 |
| UNITED MALACCA BERHAD | UMCCA | 7,300 | Aberdeen Asset Management Asia Limited | 16,112,350 |
| UNITED MALACCA BERHAD | UMCCA | 7,300 | Aberdeen International Fund Managers Limited | 10,912,650 |
| UNITED MALACCA BERHAD | UMCCA | 5,500 | Aberdeen Asset Management Sdn Bhd | 12,989,700 |
| UNITED MALACCA BERHAD | UMCCA | 20,600 | Mitsubishi UFJ Financial Group, Inc("MUFG") | 29,139,250 |
| UMS-NEIKEN GROUP BERHAD | UMSNGB | 150,000 | Yeo Guik Hiang | 4,012,400 |
| UOA DEVELOPMENT BHD | UOADEV | 600,000 | EMPLOYEES PROVIDENT FUND BOARD ("EPF BOARD") | 79,828,200 |
| UNITED PLANTATIONS BERHAD | UTDPLT | 7,600 | MITSUBISHI UFJ FINANCIAL GROUP. INC (MUFG) | 24,148,000 |
| UNITED PLANTATIONS BERHAD | UTDPLT | 19,800 | Aberdeen Asset Management PLC and its Subsidiaries | 24,167,800 |
| WAH SEONG CORPORATION BERHAD | WASEONG | 83,200 | Employees Provident Fund Board | 45,142,433 |
| WCT BERHAD | WCT | (2,500,000) | Kumpulan Wang Persaraan (DiPerbadankan) | 64,933,210 |
| WCT BERHAD | WCT | (300,000) | Employees Provident Fund Board | 123,708,430 |
| WHITE HORSE BERHAD | WTHORSE | Teo Kim Tay | 12,559,015 | |
| WHITE HORSE BERHAD | WTHORSE | Teo Kim Lap | 12,533,027 | |
| WHITE HORSE BERHAD | WTHORSE | Teo Swee Teng | 13,498,593 | |
| YTL CORPORATION BERHAD | YTL | (3,312,300) | EMPLOYEES PROVIDENT FUND BOARD | 789,297,047 |
| YTL POWER INTERNATIONAL BHD | YTLPOWR | (3,000,000) | EMPLOYEES PROVIDENT FUND BOARD | 586,482,916 |
Wednesday, 22 May 2013
Insiders Selling to lock in their gains during this bull market.
Tuesday, 14 May 2013
5 Steps to Creating a Sustainable Competitive Advantage
Whether you’re pitching investors or launching a new product, success is more likely if you can create and communicate a sustainable competitive advantage.
Being first to market isn’t enough, as someone bigger with something better will come along and leave you in the dust. And it doesn’t matter if there isn’t a product in the market that’s exactly the same as yours. If another company is solving the same pain you’re addressing, for the same customers – they are competition.
While creating a sustainable competitive advantage is not easy, the following will help ensure you get and remain ahead of the field.
1. Establish Brand Loyalty. Customers will often remain with a brand they have loyalty towards, even though the company does not offer the cheapest or most effective product. Focus on building strong relationships with your customers and delivering a great customer experience and service.
2. Patent Your Product. There has been a lot of debate recently about the true value of a patent. While patents are not a ‘cure all’, they are an important weapon in an entrepreneur’s competitive advantage arsenal.
3. Continually Innovate. Customers like updates and upgrades. Keeping your product fresh and compatible with the market place (particularly if software), is essential.
4. Hire ‘Connected’ Team Members. If your market includes large companies and government departments, connections to key individuals within these organizations can dramatically accelerate your ability to meet and secure contracts. Try to have at least one member on your team who is ‘connected’.
5. Use Long Term Contracts and Incentives. This step has to be executed carefully, as it can backfire. If you can establish a long term contract with your customer, then clearly they are less likely to switch to a competitor. If you only offer long terms contracts, however, and your competitors are offering short terms contracts, then you are likely to lose business.
Ideally you want to incentivize your customers to enter into a long term contract with you, possibly by providing a slight reduction in cost or a bonus. Equally, customers are more likely to be willing to enter into a long terms contract if they have just completed a successful short term contract with you.
Warren Buffett and Durable Competitive Advantage
Warren Buffett repeatedly emphasizes that an investor must invest into a company that offers a durable competitive advantage. Any company that has a durable competitive advantage is likely to be able to maintain its profitability over a long period of time. Competitive advantage is meant to signify that the company must have a product or service line that is distinctively unique. However, a unique product or service does not make a company financially sound. Rather it is a durable competitive advantage that ensures that the company would be able to maintain its competitive advantage over a long period of time. The product and service must enjoy a competitive advantage such as through the existence of a brand name or through a patented, natural or regional monopoly. Firms also enjoy a competitive advantage if they offer high quality products and are able to develop customer loyalty.
Warren Buffett states that any business that enjoys a durable competitive advantage is likely to have a long history of profitability that is based on a narrow range of products or services. A company that has a competitive advantage is likely to remain in the industry for the foreseeable future. The fact that the organizations products are profitable would mean that their spending on research and development would be minimal whereas the company would also not be in need of continuous up gradation. Furthermore, a company that enjoys a high competitive advantage is likely to offer a product that has a rising or stable pattern of demand.
Any company that enjoys a high competitive advantage is likely to be in a monopolistic position within the market. This is because its unique products and services are likely to generate sales due to their high quality and distinct image. This allows the firm to increase prices while still maintain profitability and sales. This is of immense importance to shareholders as increasing sales and returns signal higher returns for the stock owners. Furthermore, competitive advantage allows a business to refrain from entering into price battles with other competitors and the company is able to dominate the market. The competitive advantage allows the firm to lead the market and generate high profits from the stable product line. Finally, the fact that the business has a durable competitive advantage would mean that it would be able to maintain the current earnings per share in the foreseeable future.
So how exactly is the durable competitive advantage beneficial to investors like Warren Buffet? Warren Buffet states that any company that enjoys a sustainable competitive advantage is likely to invest a minimal amount into research and development and new plant and equipment. This would free up cash for other investing purposes such as expansion that would allow the business to increase its sales and profitability. The availability of cash is also likely to prevent the company from taking on debt and incurring the cost associated with servicing of debt. A company that enjoys a durable competitive advantage is likely to have high amounts of free cash flow which could be passed on to shareholders in form of high return on equity.
Thursday, 9 May 2013
Portfolio Management
When you start investing in stocks, you will soon have a portfolio of them. And managing your portfolio is just as important as picking the right stocks in the first place. Because if you mismanage your portfolio you could be minimizing your potential returns or end up losing money!
So always take note of your stock portfolio and here are some guidelines to help you along:
- This one is straightforward but some beginners neglect to do this - Keep records of all your investment decisions. If you don't keep track, you won't know how much you're making or losing!
- A portfolio of 5-8 stocks is optimum for the typical investor . Keep within a certain number so your portfolio remains manageable. Too many stocks could result in a lack of proper management and cause losses in your portfolio
- Monitor a company's' quarterly reports and keep track of their fundamental performance
- On top of monitoring your stock through financial reports, you should attend the Annual General Meetings (AGMs) to meet a company's management team face-to-face
- Stay current with world and economic affairs and monitor any news on your stocks and the industry they're in
Because let me ask you...
Would you be happy with a 22% dividend yield year after year? That means for every $100 you invested, you're getting $22 back in passive income every year. You don't even have to do anything to make that money; you just sit and wait!
Well, that's what value investing can do for you when you hold on to a winner long enough. Read this article below and it'll show you how:
http://www.
MillionaireInvestor.com
Tuesday, 7 May 2013
Buffett: The time to buy stocks is when nobody else wants them
In the recession of 20087 - 2009 we had the opportunity, and for those of us who did venture into that abyss, the rewards were tremendous.
Here is a quote from Warren Buffett during the 1990-1991 recession in the U.S.:
"Nevertheless, fears of a California real estate disaster similar to that experienced in New England caused the price of Wells Fargo stock to fall almost 50% within a few months during 1990. Even though we had bought some shares at the prices prevailing before the fall, we welcomed the decline because it allowed us to pick up many more shares at the new panic prices.
Investors who expect to be ongoing buyers of investments throughout their lifetimes should adopt a similar attitude toward market fluctuations; instead many illogically become euphoric when stock prices rise and unhappy when they fall."
Here is a quote from Warren Buffett during the 1990-1991 recession in the U.S.:
"Nevertheless, fears of a California real estate disaster similar to that experienced in New England caused the price of Wells Fargo stock to fall almost 50% within a few months during 1990. Even though we had bought some shares at the prices prevailing before the fall, we welcomed the decline because it allowed us to pick up many more shares at the new panic prices.
Investors who expect to be ongoing buyers of investments throughout their lifetimes should adopt a similar attitude toward market fluctuations; instead many illogically become euphoric when stock prices rise and unhappy when they fall."
Sunday, 5 May 2013
Vote for a Better Malaysia 5.5.2013.
The campaigning is over and the stands of the various parties are disseminated by various means.
On this faithful day, let's vote for the government of our choice.
Cast your vote for a better Malaysia.
The issues that are dominant in this election, for me are:
CORRUPTION and good governance,
CRIME
Cost of living issues are very important for many Malaysians too.
VOTE FOR A BETTER MALAYSIA
Wednesday, 1 May 2013
The Danger of Low Dividends
April 25, 2013
Earnings among S&P 500 companies are at an all-time high. By quite a bit, too: Operating earnings per share last year were more than 10% above the previous peak set in 2006, when the economy topped out before the recession.
Dividend payouts are also at an all-time high, but there is much less to be excited about here. Companies have been paying out a lower share of their earnings as dividends for decades, and the trend shows little sign of slowing. The dividend payout ratio is pitiful:
Source: Yale, author's calculations.
A lot of this decline over time is explained by companies using more of their free cash flow to repurchase shares. Benjamin Graham's classic 1949 book contains deep analysis and commentary on dividends, but scarcely a mention of share buybacks. That changed dramatically after the 1980s. Legg Masson has shown that from 1985 to 2011, S&P 500 dividends increased fourfold, but share buybacks increased 21-fold.
The impact this shift has on how investors are compensated is deep. As Shawn Tully of CNNMoney pointed out earlier this year, the dividend yield on ExxonMobil (NYSE: XOM ) is a little more than 2%, but the total yield including buybacks is north of 7%. Pfizer's (NYSE:PFE ) dividend yields more than 3%, but with buybacks the company returns 7.6% to shareholders. Wal-Mart's (NYSE: WMT ) total yield is about double its dividend yield.
There are mountains of evidence showing that, on average, investors are better off with dividends than share buybacks, as CEOs have a terrible history of buying back their shares at nosebleed prices.
But I think the damage of the shift toward buybacks may even be underrated. With interest rates at zero, investors have been clamoring for yield wherever they can find it. For years, that's been stocks with high dividends, whose prices have been pushed to record levels and yields down to near record lows. Shares of Verizon (NYSE: VZ ) now yield less than 4% and Altria Group (NYSE: MO ) , less than 5%.
These are still healthy yields, particularly compared with fixed-income alternatives -- and both companies have high dividend payout ratios. But I can't help but wonder whether companies favoring buybacks over dividends will ultimately be a disservice to companies with high dividends. The lack of yield among most stocks drives up valuations at companies that still do provide reasonable payouts, and high current valuations will eat into future returns.
Managers typically cite the desire to "enhance shareholder value" when announcing share buybacks. But never underestimate the power of unintended consequences.
The 3 Cs issues of this election. Which party is addressing these issues?
The 3 top issues to be addressed in this election:
1. Cost of Living issues
2. Crime issues.
3. Corruption issues.
Sadly, in every election, some choose to focus on race and other divisive issues.
http://blog.limkitsiang.com/2013/04/30/dalang-sebenar-mei-13-dibongkar-oleh-dato-mohd-tamrin-ghafar/
So, who is telling the truth? Are you enlightened or confused?
1. Cost of Living issues
2. Crime issues.
3. Corruption issues.
Sadly, in every election, some choose to focus on race and other divisive issues.
http://blog.limkitsiang.com/2013/04/30/dalang-sebenar-mei-13-dibongkar-oleh-dato-mohd-tamrin-ghafar/
So, who is telling the truth? Are you enlightened or confused?
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