Weekly Reading

Chart of the Week:

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Twitter, @PlanMaestro

Video of the Week:

Reading For The Week:

1. How the Superwealthy Plan to Make Sure
Their Kids Stay Superwealthy (LINK)

Passing on a fortune isn’t as easy as it seems. Their research [Preparing Heirs] found that 70 percent of inheritors failed in passing their fortunes on to the next generation.

2. Millionaire (Malaysian) investor uses wealth to help poor  (LINK)

Up until then, he was an executive director in Mudajaya/IJM but gave up his position and invested his time and money in shares.

He started with only RM200,000 to dabble around with and has made money to the tune of millions ever since.

Koon said his trick to mastering the market is to be a “contrarian investor” – one who buys when everyone is selling and who sells when everyone is buying.

3. SGX: 8 Things I Learned from its AGM 2015 (LINK)

Despite the challenges, SGX remains a highly profitable company and is likely to do so in the future simply because it has a virtual monopoly.

Simply said, public-listed companies and investors have no choice but to use the SGX as it is the only stock market exchange in Singapore.

4. Buy Emerging-Market Stocks as Pessimism Peaks, Barclays Says (LINK)-1x-1

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5. Traders Flee Emerging Markets at Fastest Pace Since 2008 (LINK)

Investors have pulled $40 billion out of developing economies in the third quarter, fleeing emerging markets at the fastest pace since the height of the global financial crisis.

The MSCI Emerging Markets stocks benchmark has declined 20 percent in the past three months, on track for the biggest retreat in four years.

 

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It’s been an interesting week, with the elections in Singapore. I am pretty surprised by the extent of the results, with this election being the PAP’s strongest in more than a decade.

DPM Tharman (Finance Minister) had the best speech by fair explaining the economic reality of welfare spending. I really recommend it. Just simple facts and logic of the matter. Politics at its finest:

BBC’s Stephen Sackur gets sucker punched by DPM Tharman at St Gallen Symposium (LINK)

Sackur: Do you believe in the concept of a safety net?

Tharman: We believe in a concept of support for you (people) taking up opportunities. So we don’t have unemployment.

Sackur: I believe in the sometimes simplicity of yes-or-no answers. What about this idea of a safety net? Does Singapore believe in the notion of a safety net for those who fall between the cracks of a successful economy?

Tharman: I believe in the notion of a trampoline (A laughter and silence in the crowd for ten seconds).

Su-Ling (Former CEO of IPCO) v Goldman Sachs International (LINK)

Ever wondered what happen to the Blumont Saga? Well, the offical Singapore investigation isn’t out yet, but here’s a related case involving the CEO of IPCO who got “margin-called” by Goldman. Funnily enough, she happened to own all of the stocks involved in the penny chip rout.

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Singapore Stock-Trade Probe Seen as Test of Credibility (LINK)

Authorities widened the probe this week to include executives from at least four more companies six months after the rout that triggered a plunge of least 87 percent in the shares of Blumont Group Ltd, Asiasons Capital Ltd and LionGold Corp over three days last October.

 

The truth about our corporate ventures is quite otherwise. Extremely few companies have been able to show a high rate of uninterrupted growth for long periods of time.

Remarkably few, also, of the larger companies suffer ultimate extinction. For most, their history is one of vicissitudes, of ups and downs, of change in their relative standing.

In some the variations “from rags to riches and back” have been repeated on almost a cyclical basis—the phrase used to be a standard one applied to the steel industry—for others spectacular changes have been identified with deterioration or improvement of management.

– Benjamin Graham, The Intelligent Investor

 


Investors watch computer screens at a stock exchange hall on May 8, 2015, in Fuyang, China.

Weekly Readings:

Investors take a second look at EM as China fears cool – (LINK)

The average price-to-book ratio for stocks on the MSCI EM index is now less than 1.3 times, a level not seen since early 2009, when emerging markets were still reeling from the impact of the financial crisis, according to Teverson.

A price-to-book ratio is used to compare a stock’s market value to its book value, and is a key metric used by traders to gauge the value of equities.

Heard of China’s Fake Rolexes? Now There’s a Fake Goldman Sachs – (LINK)

How to invest if you have $20k or more – Why we think The Straits Times is Wrong – (LINK)

STI ETF beat 7 unit trusts based on a 10-year performance. And the difference between STI ETF and the top fund is only 0.2%.

Trump Has Done Well, but Not as Well as the Stock Market – (LINK)

If Trump had done that in 1988, he would be worth $13 billion today, more than triple the Forbes estimate.

 

Warren-Buffett’s-Net-Worth-By-Age-chart[1](Photo Credit: Micro Cap Club)

Are healthcare stocks in Singapore overpriced? – (LINK)

Secrets of Sovereign: By going into uncharted territory where most investors don’t dare to tread, the Chandler brothers have, in the space of 20 years, grown a family fortune of $10 million into a cool $5 billion — and they’re still in their mid-40s. – (LINK)

Trump Has Done Well, but Not as Well as the Stock Market (LINK)

Beijing Blunders: Bull in a China Shop! (LINK)