Business Owner VS Share Holder

Now most of people know who Warren Buffett is. However, few really believed that a share holder of a public company is practically a business owner. To many people, including entrepreneurs and financial professionals, shares are papers exchangeable for cash. They buy shares simply for the hope of selling it at higher prices later. That’s why when people talk about shares they often raise questions like these:

Why do you think the price will go up (or down) for XYZ stock?
Is this the bottom of the market now?
Has ABC industry a good prospect in near future?

Burning Tough

2010 is the most difficult year I had went through as an investor. The only certain thing about the economy in 2010 is uncertainty. As I mentioned in my last article "Is this party time again?" China is still facing the same economic problem and the share market performance after the National Day is well reflecting such dilemma. Fortunately, I had invested mostly in US companies in last year and still got a 19% return on my portfolio.

Is This Party Time Again?

The share prices in worldwide stock market went up in the past 2 weeks. As an investor, I should be very happy with the capital under my management fully invested in US and HK markets. However, it’s China again. Although we only allocate a small portion of our capital to invest in the China A shares, we had only invested even much smaller portion before October.

It’s The Interest Rate

Chinese Banks

[FTChinese.com]
Now that's a stress test. The Chinese banking regulator reckons the nation's lenders may struggle to recoup about a quarter of the Rmb7,700bn ($1,100bn) they've lent to investment vehicles owned by local governments (LGIVs). If Rmb1,770bn of loans to LGIVs – vital conduits of China's huge economic stimulus – do indeed go sour, that'd be almost four times the system-wide stock of non-performing loans at the end of June.

Not Be Fooled by Viagra

There are many professional investors talking about the low valuation about the Chinese A shares recently. They even compared the price of H share or B share of the same company with its price of A share, and discovered that the A shares of certain companies are cheaper than their counter part in H or B share market. Therefore, the pros declared that A shares are cheap and the Chinese investors are again immature. It seems that they are right with the surge in the A share market on the 2nd day today.

Warren Buffett’s lesson about true success

In 2006, Warren Buffett pledged to give away almost his entire fortune to charities. He is adamant about not funding monuments to himself - no Warren Buffett buildings or halls.

He says, “I know people who have a lot of money. And they get testimonial dinners and hospital wings named after them. But the truth is that nobody in the world loves them. When you get to my age, you’ll measure your success in life by how many of the people you want to have love you actually do love you. That’s the ultimate test of how you’ve lived your life.”

Bill Gates and Warren Buffett on Success

In 2006, the two stood before business students at the University of Washington to share their personal philosophies about success.
(The following conversation is an excerpt of SkyQuestCom's Master Channel January Highlight)

How do you define success personally?

What Shall We Do?

It's a difficult time for investors. Europe is under the dark cloud of shaky government finances, while Chinese economy is either on the way to a hard landing or a short landing in the best case senario. On the other hand, the stocks are not expensive except the A shares in China. It's the time to pick the right stock at good price. Life goes on, no matter what will happen temparary to the world economy. When it's all over, a good company will grow stronger. And even over this uncertain period of time, they are keeping making more money and preparing for better time.

China Crash Talk Increases

“Analyzing the Chinese economy while it is growing at superfast rates is like analyzing a bank during an economic expansion – all you see is reward.” – Vitaliy Katsenelson, “China, the Mother of All Black Swans”

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