Head to Head: The Supermarkets (Tesco, Sainsbury and Morrison, U.K.)

By G. A. Chester |
September 10, 2012 

LONDON -- In this series, some of your favorite FTSE 100 (UKX) shares go head to head in a three-round contest for superiority.

In Round 1, the firms fight on earnings; in Round 2, on dividends; and Round 3 is a battle of the balance sheets. The winner will be the company that has racked up most points at the end of the contest.

In a twist to the usual format, we have three companies stepping into the ring today: Tesco(LSE: TSCO.L  ) , J Sainsbury (LSE: SBRY.L  ) and Wm Morrison (LSE: MRW.L  ) .

Fears about the fragile economy and eurozone worries have driven investor demand for defensive companies -- companies that perform reasonably well in all economic conditions -- including supermarkets.

The shares of Tesco, Sainsbury and Morrison have outperformed the FTSE 100 index over the last six months. The Footsie is flat over the period, but Tesco is up 11%, Sainsbury 13% and Morrison 3%.

Let's take our seats at ringside.

Round 1: Earnings	Tesco	Sainsbury	Morrison
Recent share price	347p	331p	292p
Last year price-to-earnings (P/E) ratio	9.2	11.8	11.4
Current year forecast P/E	10.2	11.3	10.7
Four-year average earnings-per-share growth (%)	8	9	7
Current year forecast EPS growth (%)	-1	5	8
Forecast operating margin (%)	5.4	3.2	5.1

Source: Digital Look. Winners in bold.

Tesco scores points for its low P/E and industry-leading operating margin. It just loses out to Sainsbury on historic earnings growth but falls down badly on forecast earnings growth, where Morrison takes the point.

Nevertheless, Tesco's P/E and margin give it a comfortable victory in the first round.

Round 2: Dividends	Tesco	Sainsbury	Morrison
Last year dividend yield (%)	4.3	4.9	3.7
Current year forecast dividend yield (%)	4.3	5.0	4.0
Four-year average dividend growth (%)	8	8	23
Current year forecast dividend growth (%)	1	3	10
Forecast dividend cover	2.3	1.8	2.3

Source: Digital Look. Winners in bold.

Sainsbury starts the second round strongly, out-pointing its rivals by some margin on historic and forecast dividend yield. However, Morrison is equally dominant in winning points for historic and forecast dividend growth -- and pips Sainsbury to victory in the round by sharing a point with Tesco for dividend cover.

Mustering just half a point, this is a poor round for Tesco after its commanding performance in the first round.

Round 3: Balance sheet	Tesco	Sainsbury	Morrison
Price-to-book ratio	1.6	1.1	1.3
Net gearing (%)	53	35	32

Source: Digital Look. Winners in bold.

Tesco weakens further in the final round, with Sainsbury and Morrison sharing the points. Overall, Tesco has won one round, Morrison has won one round, and Sainsbury and Morrison have drawn a round. The points tally comes out as Morrison 4.5, Sainsbury 4.0, and Tesco 3.5.

Post-match assessmentThis was a narrow victory for Morrison in a hard-fought contest. Tesco scored particularly well for its earnings rating and Sainsbury particularly well for its dividend yield. But Morrison's all-round performance won the day. Morrison was very strong in the areas of forecast earnings and past and forecast dividend growth, supported by good dividend cover and conservative gearing.

Morrison is also the pick of the supermarkets in the eyes of U.K. master investor Neil Woodford, whose funds have beaten the wider market by over 300% in the last 15 years. In fact, Woodford has increased his stake in Morrison this year.

Meanwhile, U.S. investing legend Warren Buffett has also bought a trolley-load of shares in a U.K. supermarket this year. Does Buffett see eye to eye with Woodford? Find out in this special Motley Fool report -- "The One U.K. Share Warren Buffett Loves" -- which you can download for free.

http://www.fool.com/investing/international/2012/09/10/head-to-head-the-supermarkets.aspx

Tesco's recovery plan may be working - Kantar

Tue Sep 11, 2012 7:46am EDT

* Tesco UK market share 30.8 pct in 12 weeks to Sept. 2
    * Asda remains fastest growing of big four grocers
    * Grocery inflation 2.9 pct

    LONDON, Sept 11 (Reuters) - The recovery plan unveiled by Tesco, Britain's biggest retailer, after a profit warning in January is showing signs of working, industry data showed on Tuesday.

    Market researcher Kantar Worldpanel said Tesco's share of the grocery market edged down 0.1 percentage point year-on-year to 30.8 percent in the 12 weeks to Sept. 2.
    This was "a relatively small decline compared with most of 2012 and evidence of some success in its fight-back," Kantar director Edward Garner said.

    In April, Tesco slashed expansion plans for its British chain and said it would spend over 1 billion pounds ($1.6 billion) improving stores and online shopping in a bid to reverse a decline in market share. 
 
    Tesco's sales rose 2.8 percent over the 12-week period,Kantar said, behind growth of 4.5 percent at Wal-Mart's Asda, Britain's No. 2 supermarket chain, and growth of 3.8 percent at Sainsbury, the No. 3 player.    Wm Morrison Supermarkets, Britain's No. 4 grocer, was the laggard, with growth of 1.1 percent, reflecting its lack
of an online offer and only a small number of convenience outlets.

    Kantar said the total grocery market grew 3.3 percent over the 12 weeks, above its inflation measure of 2.9 percent.

    "Despite ongoing pressures, things seem to be looking up in the grocery market and shoppers are not having to trade down to the same extent as they have done over the past year," said Garner.

    However, Kantar noted the inflation measure may have bottomed out with poor grain harvests driving inflationary spikes ahead.
    
      Following is a summary of market share and sales (pounds):

                  12 wks to     12 wks to     pct change
                  Sept 2 2012   Sept 4 2011   
 Total till roll  30.79 bln     30.15 bln     2.1 pct
 Total grocers    23.49 bln     22.74 bln     3.3 pct
 Total multiples  22.98 bln     22.22 bln     3.4 pct
 
      Market share (percent)
                  12 wks to     12 wks to     pct change
                  Sept 2 2012   Sept 4 2011   in sales
 Tesco            30.8          30.9          2.8
 Asda             17.6          17.4          4.5
 Sainsbury        16.4          16.3          3.8
 Morrison         11.5          11.7          1.1
 Co-operative     6.8           7.1           -1.2
 Waitrose         4.6           4.4           7.8
 Aldi             2.9           2.4           26.6
 Lidl             2.8           2.6           10.9
 Iceland          2.0           1.9           8.5

http://www.reuters.com/article/2012/09/11/britain-grocers-kantar-idUSL5E8KBA9020120911?feedType=RSS&feedName=cyclicalConsumerGoodsSector&rpc=43

What Happened to the Middle Class in U.S,?

What Happened to the Middle Class?

By Morgan Housel | More Articles 
August 28, 2012 | Comments (142)

It's a bad time for millions of Americans. No surprise, then, that a survey by the Pew Research Center last week showed that 85% of self-described "middle-class" Americans say it's harder to maintain a middle-class lifestyle today than it was a decade ago. Only 9% said it was less difficult.

But here's what is surprising -- or, at least, telling. Pew asked respondents "How much do you blame (each) for the difficulties the middle class has faced in the past 10 years?" They answered:

Source: Pew Research Center. Graphic recreated.

They blamed everyone -- except themselves. How fair is this?

Step back for a second. Why middle-class finances have deteriorated is one of the most complicated subjects out there. Whenever someone points the blame at one reason or one person, stop listening. They've got it wrong. There could be thousands of reasons, most of which we don't understand. Part of the problem owes to globalization. Some of the blame lies with health care costs, changes in family structures, educational attainment... the list goes on and on.

But one factor that doesn't get enough attention is the role perceptions alone have played in the decline of the middle class.

A group of Fools and I met a business executive named Andy last year. We asked him what concerned him about America. He responded:

What concerns me most is the perception that people share that it is so terrible right now. I think life in America has been tough since the time of the Colonists all through World War 2 and all the way through today. The middle class has gotten it all twisted. Maybe it's because of the credit cards and the candy bars that people are being fed, but the reality is, I think we have the same amount of discretionary income, and the ability to guide our own future. But our values have radically shifted.

Now, discretionary incomes for millions of Americans have declined in recent years. But he makes a valid point when the dates are stretched out further.

Take measures of subjective well-being, e.g., surveys that ask, "How happy are you with life?" Most show that the percentage of Americans very satisfied with life peaked around the 1950s. Median household income back then was $31,500, adjusted for inflation. Today it's a hair over $50,000 per household. So we're richer. An average American household in 1950 spent 30% of its budget on food. Today, that's down to 13%. The shares going toward shelter and apparel have dropped sharply in the last half-century, too. So we have more disposable income. The average new American home in 1975 was 1,500 square feet. Today, it's 2,169 square feet. So we're also living in bigger, nicer homes. And all of this has happened decades after reported happiness peaked.

You don't have to take this back quite so far: In 1990, the average American family spent 5% of its budget on entertainment, while in 2010, 5.2% of spending was devoted to having fun. Or, if you want to take this back a century or so, consider this quote from Matt Ridley's bookThe Rational Optimist: "Today, of Americans officially designated as 'poor,' 99 per cent have electricity, running water, flush toilets, and a refrigerator; 95 per cent have a television, 88 per cent a telephone, 71 per cent a car and 70 per cent air conditioning. Cornelius Vanderbilt had none of these."

So why do so many middle-class Americans feel cheated? It's not so much that they've gotten poorer, but that a few have gotten so much richer. 

According to author Tim Noah, "From 1980 to 2005, 80% of the total increase in Americans'net income went to the top 1%." Nobel-winning economist Joseph Stiglitz points out another mindblower:

The upper 1 percent of Americans are now taking in nearly a quarter of the nation's income every year. In terms of wealth rather than income, the top 1 percent control 40 percent. Their lot in life has improved considerably. Twenty-five years ago, the corresponding figures were 12 percent and 33 percent.

If you're a member of the middle class watching this happen, you feel worse off. It doesn't matter that you're better off in absolute terms. When you go from a minivan to a minivan with an extra cupholder, while the corporate exec goes from a Lincoln Town Car to a fleet of Bentleys and a private jet, you feel like you've slipped behind. We don't feel richer, because the goal posts of what counts as "rich" have moved dramatically.

There's actually a theory that says this explains the consumer debt boom over the last few decades. It's the "keeping up with the Jonses" effect, where the aspirations of the middle class are inflated by the legitimate wealth of the rich. "Trickle-down economics may be a chimera, but trickle-down behaviorism is very real," writes Stiglitz.

Here's a good example of how powerful this is. Last week, Nike (NYSE: NKE  ) said the new LeBron James shoe could retail for a whopping $315. Many were shocked at the price, but others went further. Marc H. Morial, CEO of National Urban League, called on Nike to drop the shoe altogether. "To release such an outrageously overpriced product while the nation is struggling to overcome an unemployment crisis is insensitive at best," he said. "It represents twisted priorities and confused values."

There's an easy solution for those who can't afford $315 sneakers: Don't buy them. But Morial's call implies that many consumers won't be able to fight the urge.

Here's why that's important: We know that the consumer debt used to feed those urges has played a big role in the deterioration of middle-class finances in recent years. Brookings economist Karen Dynan has shown that the households that levered up with the most debt last decade have had to cut their spending by the most today. A Federal Reserve study showed that the regions that accumulated the most debt last decade saw some of the largest declines in employment over the past few years. Congress, CEOs, or the Bush administration didn't force those consumers into debt. They chose it.

To the extent that shifting values have spawned the rise in debt, which has in turn contributed to the deterioration of middle-class finances, there's no one to blame but yourself.

Is Tesco Mounting A Recovery?

Is Tesco Mounting
A Recovery?

• Tesco shares have rebounded from their recent low
• Recent sales figures look more encouraging
• Its digital investment seems to be paying off

Monday, 10th September 2012

Dear Collective Reader,

It came out of the blue, slashing nearly a quarter off the share price in one fell swoop.Tesco’s (LSE: TSCO) profit warning in January, its first for 20 years, divided investors between bulls, who saw it as a temporary glitch, and bears, who saw more serious writing on the wall.

It wasn’t just among private investors that opinions were sharply divided. Investment guru Warren Buffett rapidly upped his stake in the company to over 5%, while high-yield fund management superstar Neil Woodford took a more pessimistic view, selling out completely. Our analysts at Motley Fool Share Advisor have also been watching the business closely, as it has the sort of dominant market position we love to see.

So how is Tesco faring now?

As far as the share price goes, there has been a little recovery. Tesco shares are up about 15% since the end of May, when they briefly dipped below £3. They have also outpaced the FTSE 100 index of leading UK shares by over 10% over the last six months.

That said, at around 345p, the shares are still some 15% below the level they enjoyed in January, before the aforementioned profit warning.

Hubris

Tesco’s sin was one of hubris, perhaps not surprising in the light of former CEO Terry Leahy’s very long and successful tenure. It took its core UK grocery business for granted, and neglected it in favour of exciting growth opportunities internationally and in non-food business, from out-of-town hypermarkets to banking.

Nemesis came when the UK shopper woke up to Tesco’s poorer customer service and product offering, and its grocery market share slipped. Meanwhile, the new markets proved tough.

Internationally, Tesco lacks the market power it has at home, hypermarkets found online competition tougher than was expected, and some new domestic ventures, such as second-hand cars, were just a step too far.

Tesco’s act of repentance, unveiled by new CEO Philip Clarke in April, was to refocus investment on its core UK grocery operations. Store expansion would be cut back, while more would be spent on refurbishing existing stores, improving staffing, and in price promotions.

Trench warfare

Is it working? Competition in the UK grocery sector is rather like trench warfare. Tesco’s market share is around the 30% level, roughly double that of each of its big three rivals, Sainsbury (LSE: SBRY), Morrison (LSE: MRW) and Asda.

Tesco’s market share has continued slipping all year, but recent figures hint at a turnaround. Measured over the 12 weeks to 5 August, its market share slipped marginally to 30.9%, but in the final four weeks of that period it rose to 31.4%, according to data from Kantar Worldpanel.

In those last four weeks, sales grew 5.1%, ahead of Asda at 4.9%, Sainsbury at 2.7% and Morrison at 1.4%. It’s a very small sign but, as the company says, ‘every little helps’.

Morrison’s results last week showed how it has been struggling recently. Like-for-like sales, a key measure of underlying trading, saw a 0.9% decline over the last six months. Both Tesco and Sainsbury are due to issue their next figures on 3 October, so that will be our next opportunity to assess the state of play.

Digital expansion

One area where Tesco does seem to be stealing a march on the competition is online. It recently bought Mobcast, an online bookstore co-founded by Andy McNab of Bravo Two Zero fame. While the price paid was less than £5m, tiny in the context of Tesco’s overall business, this was the third digital acquisition in a year.

Click & Collect, essentially a drive-through grocery pick-up service, also appears to be gaining some traction, with customers seemingly finding it easier to pop in on the way back from work, rather than wait at home for a set collection window.

All this activity seems to be centred on blending the company’s online and offline presence, which appears to be winning the company plaudits from many quarters.

So, in conclusion, while it seems Tesco shareholders can expect to wait a while yet before the shares recover their previous levels, it seems to have the market and financial power to claw its way back. Nate Weisshaar, an analyst here at Motley Fool Share Advisor, agrees. He believes “Tesco still has the long-run potential for strong international growth and defence of its domestic dominance”.

From:  Motley Fool 

TESCO - some historical information

12.6.2012
TSCO.L

Based on its latest 2012 financial report.  Per share (British currency:  Pence)
Equity or book value 164.46
EPS 36.64
Dividend 14.76


Historical Information from 2003 - 2012
Revenue GR 10.8%
Pretax Profit Margin 5.2%
EPS GR 11.9%
DPO ratio 43%
ROE 26%

Average High PE  17.4
Average of Historical Average PEs 15.2
Average Low PE  13.0






One UK Share That
Warren Buffett Loves

http://g.foolcdn.co.uk/art/download/tmf/0911_TMFUK-OneUKShareThatBuffettLoves.pdf?email=investbullbear@gmail.com&iid=27001&repeatecap=&vsaid=4381&src=usksittxt0000011
TescoQ2V2

Evaluating a Company - 10 Simple Rules

Having identified the company of interest and assembled the financial information, do the following analysis.

1.  Does the company have any identifiable consumer monopolies or brand-name products, or do they sell a commodity-type product?

2.  Do you understand how the company works?  Do you have intimate knowledge of, and experience with using the product or services of the company?

3.  Is the company conservatively financed?

4.  Are the earnings of the company strong and do they show an upward trend?

5.  Does the company allocate capital only to those businesses within its realm of expertise?

6.  Does the company buy back its own shares?  This is a sign that management utilizes capital to increase shareholder value when it is possible.

7.  Does the management spent the retained earnings of the company to increase the per share earnings, and, therefore, shareholders' value? That is, the management generates a good return on retained equities.

8.  Is the company's return on equity (ROE) above average?

9.  Is the company free to adjust prices to inflation?  The ability to adjust its prices to inflation without running the risk of losing sales, indicates pricing power.

10.  Do operations require large capital expenditures to constantly update the company's plant and equipment?   The company with low capital expenditures means that when it makes money, it doesn't have to go out and spend it on research and development or major costs for upgrading plant and equipment.


Once you have identified a company as one of the kinds of businesses you wish to be in, you still have to calculate if the market price for the stock will allow you a return equal to or better than your target return or your other options.  Let the market price determine the buy decision.  

Study in London for big salaries but head north for the nightlife, new university guide reveals

The universities and degree courses whose graduates earn the highest salaries have been revealed.

By Julie Henry, Education Corespondent

8:50AM BST 09 Sep 2012

2 Comments

The best-paid graduates of the London School of Economics are earning an average salary of almost £29,000 six months after they leave, while the average holder of a new medical degree is on an a salary of £31,383.

The figures were disclosed after universities and colleges were ordered by ministers to provide data on everything from where their students end up working and how much they earn, to the amount of contact undergraduates can expect with professors and how much it costs to live in halls of residence.

The information will be published this week on a website, which will also include research on how students rate campuses across the country. University applications for 2013 open this month.

The figures reveal that the top-earning graduates come almost from either colleges in London or Oxford and Cambridge, while medicine, dentistry, chemical engineering, veterinary medicine and economics are the most lucrative courses across higher education, leading to average annual salaries of at least £25,700 for their graduates.

New tuition fees of up to £9,000 a year, coupled with living costs, means students face graduating with average debts of about £53,000. As the financial burden of going to university has increased and the job market has contracted, demands have come for more information about what undergraduates actually get for their money.

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Vice-chancellors were reluctant to provide details on elements such as graduate earnings and the amount of time students spend in lecturers and tutorials.

They argued that such information is not comparable across all courses and all universities and that education is not a "consumer product" like a car or a washing machine.

However, David Willetts, the universities minister, has insisted that higher education is now a market place in which providers, some in the private sector, must compete for intake by delivering an "excellent student experience".

The website, published by Which?, will allow would-be students to build shortlists of institutions and narrow down degree choices by categories such as potential earnings, entry requirements and the percentage of applicants who were offered places on specific courses.

It publishes for the first time statistics from the Department for Business, Innovation and Skills, the Higher Education Statistics Agency and the National Student Survey, as well as its own survey of undergraduates.

The findings suggest that students who put nightlife at the top of the agenda should head north.

Northumbria, Liverpool, Newcastle, Manchester and Leeds universities are ranked highest, while the campuses rated as having the strongest political scene included the London's School of Oriental and African Studies, the LSE and Oxford University.

The instiutions rated highest for sports are Loughborough, Bath, Stirling, Brunel and Durham.

Those rated as having the most active music, theatre, dance and visual arts scenes are Arts University College in Bournemouth, Goldsmiths in London, and University College Falmouth.

Richard Lloyd, the executive director of Which?, said: "Research show students want more information on employment prospects, course structure and extra-curricular activities. It is crucial that students can access as much impartial information and advice as possible. It should be possible for anyone applying to university to make an informed choice that is right for them."

Mr Willetts said: "The Government is making more raw data about university courses available than ever before. The Which? University site can play a really important role, using their expertise to present the information in innovative and easy to digest formats."

Top 10 institutions ranked by average yearly salary six months after graduation

London School of Economics £28,968

Imperial College London £28,831

St George's London £27,015

University College London £25,020

Royal Veterinary College £24,936

University of Cambridge £24,926

King's College London £24,798

University of Oxford £24,773

Queen Mary London £23,961

City University London £23,674

Top 10 courses ranked by average yearly salary six months after graduation

Clinical Medicine - £31,383

Clinical Dentistry - £29,664

Botany - £28,591

Pre-Clinical Medicine - £28,397

Chemical, Process & Energy Engineering - £28,219

Others In Medicine & Dentistry - £27,931

Operational Research - £26,776

Biotechnology and Industrial Biotechnology - £26,309

Clinical Veterinary Medicine & Dentistry - £25,885

Economics - £25,717

http://www.telegraph.co.uk/education/educationnews/9530629/Study-in-London-for-big-salaries-but-head-north-for-the-nightlife-new-university-guide-reveals.html

The Best Ways to Prevent Money Arguments With Your Spouse

By Daniel Bortz
Fri, Sep 7, 2012

Are you fighting with your spouse over money? If so, you could be doing more damage than you realize.

Twenty-seven percent of Americans say disagreements over finances are most likely to erupt into an argument, ahead of arguments over children, chores, work, and friends, according to a recent survey of married or cohabitating couples by the American Institute of Certified Public Accountants.

Fights with your spouse are never easy, but evidence shows that arguments over money can be particularly distressing. A 2011 study by Jeffrey Dew of Utah State University found that married couples who disagreed about money once a week were twice as likely to divorce as those who differed less than once a month. This is partly because money arguments encompass more than just finances. "Money doesn't just represent money; it represents love, power, control, self-esteem, freedom," says Olivia Mellan, a money coach and author of Money Harmony: Resolving Money Conflicts in Your Life and Relationships.

"Money decisions are such personal decisions, which is why they can lead to nasty fights," says Scott Palmer, who co-authored the book First Comes Love, Then Comes Money: A Couple's Guide to Financial Communication with his wife, Bethany.

When it comes to money, many couples are blinded by their own views on spending and saving, and often can't see or understand their partner's perspective. "We always think our own way of looking at money is the best, and it creates a tug-and-pull inside the relationship," says Bethany Palmer.

Communication is key to resolving money issues, experts say. Gaining a better understanding of your partner's financial habits will enable you to prevent arguments with your spouse over money--or at least quell them before they escalate. U.S. News spoke to experts for their recommendations:

Be financially transparent. Financial transparency is the foundation of good communication, says Bethany Palmer. "If you're not open with your spouse about your finances, it's very hard to have an intimate relationship," she says.

Being honest about your finances from the start--including any debt you carry, for example--will enable you and your spouse to avoid financial infidelity. "If both parties aren't on the same page, it leads to secrets, which can undermine a marriage," says Matt Bell, author of Money & Marriage: A Complete Guide for Engaged and Newly Married Couples.

Exchange information. Jean Dorrell, a certified estate planner in Longboat Key, Fla., who counsels couples about money, recommends that couples share credit reports and tax returns--that way, nothing is kept secret. This ideally occurs before they tie the knot, but it can still be effective if done at the beginning of the marriage. "When you fall in love with somebody, you don't think about going, 'Oh, by the way, how's your credit score?' But it's a conversation you need to have," Dorrell says.

If your partner has significant debt, Dorrell suggests you consider signing a prenuptial agreement so that you're not legally responsible for paying off their debt in the event that you divorce.

Establish a budget. Creating a budget for you and your spouse will take the guesswork out of your money arguments. "A budget gives you factual information," says Bell. "A lot of arguments around money have to do with assumptions and emotions. But if you have a budget, you can take a look strictly at the numbers, which will enable you to have a fact-based discussion about any disagreements."

Even if one spouse doesn't stick exactly to the budget, having one in place creates an expectation of how much each of you should be spending. Just be sure to allow some wiggle room for discretionary purchases, suggests Lynn Mayabb, a certified financial planner with BKD Wealth Advisors in Kansas City. "Everybody is going to have something they want to buy that the other person thinks is frivolous," she says. "Each person needs a certain amount of money that they don't have to explain where they spent it. If you have a budget that's too constricting, people have a hard time sticking to it."

Understand each other's money personality. Scott and Bethany Palmer believe each person has a money personality--a spending style that dictates their money habits. At the most basic level, someone is a saver or a spender, according to the Palmers. If a saver and a spender wind up together, which the Palmers say often happens because opposites attract, the couple's day-to-day lives are in conflict. The saver wants to make dinner at home; the spender wants to eat out. The spender buys himself a nice bathrobe and the saver resents it each morning when she sees it hanging on the hook. "You would think the biggest arguments about money would be over a big subject like a house or a car, but it's over everyday decisions," says Bethany Palmer.

However, if you take the time to evaluate and understand each other's respective money personalities, you'll likely fight about money a lot less. "We find if couples can understand how they look at money and understand their partner's perspective of money, that will start their relationship off on the right foot," Scott Palmer says.

If both parties are aware of the other person's spending style, the lines of communication are open and each person will have a better idea of where the other one is coming from. "Walk half a mile in your partner's moccasins," says Mellan. If you stop and think how your partner feels about the situation, Mellan says you and your spouse become less polarized.

Discuss family history. The way people approach money is, in large part, related to how their parents treated money, says Mayabb. Was money openly discussed in your household growing up? Did Dad make all the decisions or was it a team effort? Did you admire your parents' spending and saving habits or did you vow to do the opposite of what they did? Having a discussion about your families' money habits will help bridge the gap between you and your spouse's outlook on money, Mayabb says.

With the potential for money arguments to lead to serious marital problems, consider setting up weekly chats to tackle money disagreements before they evolve into fights.

http://finance.yahoo.com/news/best-ways-prevent-money-arguments-163024950.html

Is value investing still relevant? Mary Buffett

http://video.malaysia.msn.com/watch/video/is-value-investing-still-relevant/phmapck8?preview=true&cpkey=948d84e1-661f-4452-9a26-68cd76130312%7c%7c%7c%7c

FELDA: Strong debut, but does that make it a good stock?

FELDA GLOBAL VENTURES HOLDINGS BERHAD

What happened in 308 was a blessing for Malaysia.

... according to Ho Chin Soon. Many will agree.

How to Retire Rich: 3 Smart Steps at Ages 40-55

Maneuver to stay on track. It's a balancing act to pay for college and keep saving.
By Sandy Block and Jane Bennett Clark | Kiplinger

By now, you've probably amassed a decent sum in your retirement accounts and another hefty sum in the college fund. You haven't? Join the club. A survey conducted in 2009 by Edward Jones, the financial services firm, showed that 20% of respondents ages 45 to 54 had saved nothing at all for either retirement or college. A recent survey showed that 62% of respondents had never heard of a 529 savings plan, much less contributed to one.

[More from Kiplinger: 5 Costly Retirement Surprises]

Here's the penalty for procrastinating on both those fronts: If you had started saving for retirement in your twenties, you would have had to carve out 13% of your salary every year to replace your income in retirement, according to an analysis by T. Rowe Price. Now, at 45, you'll need to sock away 29% of your salary to catch up. (And if you put it off until age 55, you'll need to save 43%, which won't leave you much for groceries or gas.) Uncle Sam gives the procrastinators of the world a powerful incentive to save: Once you're over 50, you can contribute significantly more to your 401(k) plan than your younger colleagues.

Adjust the college plan. The same time-and-money crunch applies to college savings. Compare the difference between starting a college fund when your child is a toddler and when he or she is 13. Fifteen years out, you would have had to save $345 a month to cover 75% of the cost of a public college education, according to Savingforcollege.com. At this stage -- say, five years out -- you'll have to save $646 a month, almost twice as much.

Rather than regret the past, recalibrate. If you're on track for retirement but short of your college goal, for instance, you can always redirect 1% or 2% of your gross income from one pot to the other for a few years, says Greg Dosmann, a principal at Edward Jones. Recognize that you might have to work a year or two longer before retirement or boost the retirement allocation after you're done paying the college bills. "It's a trade-off," he says.

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Or consider borrowing -- judiciously. Parent PLUS loans, sponsored by the federal government, carry a fixed 7.9% rate. PLUS loans let you borrow up to the cost of attendance, minus any financial aid. Thanks to their fixed rate and consumer protections, such as forgiving the loan if the student dies or becomes disabled, PLUS loans are generally a better bet than private student loans.

Remember, however, that borrowing on behalf of your student can jeopardize your own financial security in retirement. If the gap is a chasm, not a crevice, find a cheaper school. Another way to get cash for college is to borrow against the equity in your home. With a home-equity loan, you pay a fixed rate (recent average: 6.4%) but borrow the entire amount upfront. With a line of credit, you pay a variable rate (recent average: 5.1%) and borrow as needed. With both, you can generally deduct the interest on amounts up to $100,000, no matter how you use the money.

A lower rate and tax-deductible interest may beat student loans. The downside to this strategy is that it pushes off a key goal for many people, which is to enter retirement mortgage-free. "After the kids are finished with college, you are going to have to save like heck to pay off the mortgage or, if you can't do that, sell the house and downsize when you retire," says Yrizarry. Downsizing doesn't have to be a bad thing, but it's a decision you should make before you borrow, not after.

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Talk turkey with your kids. No matter how you plan to pay for college, let your kids know what you're prepared to do before you make up a college wish list. Be clear that "if the net price after financial aid doesn't end up at your number, it has to go off the list,” says Fox. Without that conversation, you'll be hard-pressed to say no when the acceptance letter from Vassar comes. "College is not just a financial decision," says Fox. "There's a whole emotional side. You have to have the guidelines established before you get to that point."

Invest what's left. If you're among those who have college covered (or don't have college costs to contend with) and you save the max in your retirement accounts each year, you may be looking for ways to invest excess income. One option is to add tax-free municipal bonds to your fixed-income allocation, says Yrizarry. Despite recent reports, most state and local governments have shown resilience in the face of budget cuts.

Or take advantage of low interest rates and bottoming housing values to invest in real estate, Yrizarry suggests. If your student is heading off to college, you can accomplish multiple goals (and take advantage of a strong rental market) by buying a condo near campus and letting your kid and a few roommates live in it. Later, you can rent the property to other students or to alums during big sports weekends, generating income before and into your retirement.

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• 10 Least Tax-Friendly States for Retirees

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