Recruitment

When you recruit a manager, he must be talented and honest. However, if he own first one but without second one, it is disaster to your company.

Speculation

If you merely focus on the appreciation in asset’s value it is speculation not investment. Investment is you focusing on the generation from the asset.

Money for children

The perfect amount to leave children is "enough money so they could do anything, but not so much that they could do nothing."

Hearty meal

We often from different sources, including various types of media, friends, university professors, billionaires, hear that the larger institution investors can mark up or down the market’s index more easily they have the expertise to understand the calculations, we generally amateur investors cannot fight with him, and ultimately become their dessert, I actually somewhat disagree.

a) The most important point is that most of them are short-term investors, in order to account annually with customers, but also on account of their own wallets, they must seek the highest return on the fastest, and thus affect their judgment, when a person the pursuit of short-term returns, will give up the company's fundamentals, even though he clearly knew the company is brilliant.

b) In fact, we have a good return on investment does not require too complicated calculation, derivatives designed by the professionals is a good thing at early stage but become a poison for the market later. Throw it back to professional and let them duel in it! Basic arithmetic such as percentage, plus, minus, times, divided by is just fine for getting good investment result. Of course accounting knowledge still necessary, but if you feel accounting still much complicated for you to learn, then invest in a market index of major markets. As most funds cannot beats the market in long run. The result is worst if we count it after deducting the management fee for fund manager.

c) If they are so powerful, it can always outperformed the market, then simple math show that now the world's top companies, the largest market giants, should all be investment banks, why not?

Conclusion, I think we should not be deified them, on the contrary, their short-sighted provide us a hearty meal.

我們經常從不同途徑包括各類媒體, 身邊朋友, 大學教授, 億萬富豪, 聽到大型基金可在市場舞高弄低, 他們有專業知識, 懂計算, 我們一般業餘投資者不能和他鬥,最終輪為他們點心, 其實我是有些不認同的。

a)      最重要一點是他們大部份都是短線投資者, 為了每年可與客戶交代, 又對自己銀包交代, 他們一定要追求最快最高的回報, 就這樣影響了他們的判斷, 當一個人追求短線的回報, 就會放棄公司的基本因素, 儘管他知道所買的公司不甚了了。

b)      其實我們要有不錯的投資回報並不需要太高深的數學運算, 那些衍生工具就由那些專業人士對決吧! 我們在算術上只需運用基本的百分比, 加減乘除就好了. 當然會計知識還是必要的.當然若覺得會計也不想學, 那就投資於主要市場的指數好了, 因為大部份基金長線來看都跑不嬴指數, 更不要說要扣除管理費後投資者得到的回報了。

c)      若果她們都那麼厲害的話, 總能夠跑嬴市場的話, 簡單的數學運算都知,現在全球最頂尖的公司, 市值最大的, 應該都是投資銀行吧! 為什麼不是呢?

所以我覺得不應該神化了那些大戶, 相反, 他們的短視, 正正為我們提供豐盛的大餐。

Question

今天給大家思考一條問題，若果妳們踏入中年之後，最想追求的究竟是什麼呢?

a)      健康

b)      財富

c)      愛情

d)      小朋友

e)      升職

f)       朋友

g)      美食

h)      創業

i)        新興趣

j)        與家人多聚

k)      退休

l)        其他

有興趣的話可以選多於一個或排序。

Today, just would like to ask yours and me a question. Which item shown as below is most like to do when you are in middle aged?

a) Health

b) Wealth

c) Love

d) Children

e) Promotion

f) Friends

g) Food

h) Entrepreneurship

i) New interest

j) More gathering with family

k) Retirement

l) Other

You can choose more than one or sorted by priority. Welcome to leave it in comment.

Waste

Waste - it seems only a matter of morality, but what is the meaning behind the fact, I do have another view. 

Thinking in depth, this is actually a transfer of wealth. Businessman finds variety of ways to encourage us to spend that we did not really need. In this process, merchants earn rewards, and consumers have lost principal; waste items sent to landfills, but money flows to merchant's bank account. At macro view, the more wealthy countries, which consume more resources on the planet. That can be interpreted as the country "to be more wealth, must be more waste." Development of technology to improve our lives, but also accelerated the consumption of resources. Train, telephone, fiber optic and Internet, all of above is causing us to get the goods faster but cutting down the time to cherish them. 

Countries are actively encouraging domestic demand and promoting economic necessary. In the early stages of development it is correct, citizens will enjoy the treasure. However, after the middle stage of development, the resulting effect is already small. As mentioned earlier, because of wealth transfer, all the money in the hands of a few top companies. Government is a major role to balance the society’ need but it cannot get back much wealth from the hands of these companies to subsidize lower class citizens. Class conflict will ultimately lead to more and more frequent. Under the existing system, not much can be done. Increase the supply is not feasible due to the Earth's resources are limited, then reduce the demand may be more feasible. When look at the current situation in each country to increase the money supply. when, in fact, inflation has not increased. It is precisely due to weak demand, they may not want to spend just a small portion of the money accumulated in the hands of them, if they want to consume, the only way is increase borrowing. Unfortunately, this group of people is not the cup of tea of bank. As the market remains weak, we can only bet our money in the stock market now! Is it the reasons why the index keeps in higher over the world? With the wealth effect (due to rising market) demand should be increased in this turning point, plus herd instinct, inflation will be came more rapidly. History is repeating on and on, but the resource bubble must be ultimately borne by later generation. I think I cannot experience it. After reading this page, what do you think?

浪費，好像只是道德上的問題，但其實背後有什麼意義， 我卻有另一種看法。

想深一層，其實這是一種財富的轉移。商人不斷用各式各樣方法去鼓勵我們消費，無形中令我們買了更多沒有真正需要的東西。在這過程中，商人賺取了回報，而消費者卻流失了本金；浪費了的物品送到堆填區、金錢卻流到商人的銀行戶口。當我們再宏觀地看，越是富裕的國家，其消耗地球上的資源越多。那可解讀為國家『越要富裕、越要浪費』。科技的發展，改善了我們生活，也加速了資源的消耗。火車、電話、光纖、互聯網，當得到貨品的速度越快越客易，珍借它們的時間也越來越少。

各國都積極鼓勵內需，是推動經濟所必須的。在發展的初期這是正確的，國民都會感受到這個成果。但當發展到中後段時，所產生的效應其實已經不大。正如前述，財富轉移的關係，所有金錢都掌握在少數頂尖的企業手裡。政府作為一個平衡社會的機構，可以在這些企業手上取回部份財富再投放到低下階層的能力不多。最終引發的階級衝突只會越來越頻繁。在現有的制度下，可以做的不多。增加供應是不可行的，因地球的資源是有限的，那麼減少需求可能是較可行的方法。當看看現況，各國在加大金錢供應時，其實通漲也沒有增加。正正由於需求疲弱，他們可能不是不想消費，只是錢都累積在少部人手裡，若想消費的話只能增加借貸。可惜這一批人卻不是銀行心中理想的客戶，導致市場依然疲弱，大家唯有在股市上博一博吧! 不知是否這原因令各地股市在創新高呢? 隨著財富效應(因股市上升)，消費應該會增加，在這轉捩點上，再加上羊群效應 (見經濟改善也都重投市場了)，通漲可以來得很急。歷史不斷循環，但最終這個資源泡沫由那一代承擔，我是看不到的了。大家看完後又有什麼看法呢?

Inflation

Recently, major stock indices around the world are high and higher. Of course, the up and down of the index have their own reason. I do not want, nor will, nor to speculate on this. Here, I just want to share ideas for the relation of inflation, index and the gap between rich and poor.

Theoretically, the index is ultimately reflected in the company's accumulated profits. Certainly, the deviation is because of expectation of people’s optimistic or pessimistic. The company's earnings growth rate, in theory, is equal to the country's growth rate of GDP, but the high or low growth rate is related to the nature of industry or the  company itself.

Assuming the average is 4 percent of the country's inflation and GDP growth. So in fact, the purchasing power of the people of the country is almost unchanged. So if we count the effect of inflation in the index. I think the index will cut down to half of his existing value. Why is there growth? Because of the index contains a part of the largest company with competitive advantage. Their ROE is often higher than the sum of GDP and inflation. If in the past two decades, we have no sit on the train of such companies, we must have been sitting on the purchasing power of people in this train significantly behind. As the gap has expanded, although now we are sitting on the same train, in the next two decades, the distance between rich and poor will only become more exaggerated amplification.

With the growth of GDP, the country richer, but money does not fall evenly into capita’s pocket. Widen the gap between rich and poor, and ultimately what will be happened, or is there any way to solve it? Leaving some rooms for your thinking, I hope to have time to share my view about foresaid topics in near future.

近期各地主要股票指數都在高位，美股更創新高。固然，指數升跌自有各樣原因影響，我也不想、亦不會、亦不能對此作出推測。在此，我只想分享一下對於通漲、指數、貧富差距相互關係的想法。

理論上，指數最終是反映公司的盈利累積，而有偏差是因為人們對它的預期是樂觀還是悲觀。而公司的盈利增幅，理論上也是該國GDP的增幅，只是公司質數及行業令增幅有高有低。

假設該國平均的通漲及GDP增長都是4%。那麼該國人民的購買力其實差不多是不變的。所以若張現在的指數扣除通漲後，可能只剩下現有的一半。為什麼還有增長呢? 因為指數是包含某一部份市值最大，最有相對競爭優勢的公司在裡面。它們的ROE往往比GDP及通漲相加還高。若在過去的二十年，我們沒有坐上這類公司的列車上，我們的購買力一定被坐上這班列車的人大幅拋離。由於差距已經擴大，儘管現在我們都坐在同一列車上，在下一個二十年，貧富的距離只會更誇張的放大。

隨著GDP的增長，國家更富裕，但錢不會平均地落到每位國民的袋裡。貧富差距的擴大，最終有什麼結果、又或是有什麼方法自己去解決? 就留待大家思考一下。希望之後有時間針對以上問題再在此分享吧。

Basic formula

經過多年投資，其實最重要的還是ROE。 而其組成為Profit margin x Assets turnover x Leverage。而這些數字可由 Net income, Revenue, Total Assets, Shareholder equity 得來。由此我們已可對公司的運作情況有一個初步的了解。 是高槓桿運作? 還是簿利多銷呢? 針對個別情況，我們便可作更深入的研究及分析。

After many years of investment, in fact, the most important thing is ROE. Basically, it is combined by Profit margin x Assets turnover x Leverage. The foresaid figures can be derived from net income, revenue, total Assets, shareholder equity. Thus, we have to know the operation of the company with a preliminary understanding. Is it highly leveraged operations? Is it a low profit margin but highly turnover? Then, we can make more in-depth research and analysis based on individual case.

Enthusiasm

儘管仍未能做到tap dancing to work，但希望仍能懷著朝氣及熱誠上班吧！大家努力，一星期的戰鬥開始了！

Although I've not yet to be tap dancing to work, but still want to work with vigor and enthusiasm! Let us to strive for weekly battle!

Tap Dancing To Work

今天竟然借到一本很想看的書，實在太開心了！書名叫“Tap Dancing To Work” ，踏入中年的我就說不出這句話了。如果大家正處於這美妙境界，不妨分享一下。

Today I have borrowed a lovely book from library, too happy! Book called "Tap Dancing To Work", At middle age, I still unable to say this sentence. If you are in this wonderful state, Please share with me. Thanks!

Passed away

近來聽到一個壞消息, 一個舊同事因病過身了, 她年紀大約五十多歲, 人很好, 經常都保持微笑, 中年要面對的問題開始遇上了. 希望步伐不要太快, 看著熟識的人一個個離開, 我應持著什麼樣的心態去面對呢?

Recently heard a bad news, a former colleague passed away due to illness, she aged about fifty years old, was very good, often have to keep smiling. Beginning to face the problem of middle-aged met, I hope the pace is not too fast, who looked familiar one to leave, I should hold what kind of attitude to face it?

Wisdom

近來看到一篇文章，文中引用了一段著名投資者的說話。我覺得除了用在投資上， 其實套用在日常決定事情上也都非常合適，希望各位看完後， 也有所啟發吧！

Recently saw an article, the paper quoted the famous investor’s sentence. I think in addition to use in the investment, in fact, apply to daily things are very appropriate, I hope after you read, have also been inspired by it!

“With a wonderful business, you can figure out what will happen; you can't figure out when it will happen. You don't want to focus on when, you want to focus on what. If you're right about what, you don't have to worry about when”

Beginning (English)

Into middle age, whether successful or not; happy or not. Finally it is another stage of life. Create this BLOG, I hope to share some of the things. I will also share something such as investments, life. Below is my favorite phrases:

“The happiest people do not necessarily have the best things. They simply appreciate the things they haves.”

Begining

踏入中年，無論成功不成功；開心不開心。總算是踏入人生另一階段。建立這個BLOG，希望大家分享一些人和事。我也會分享一些投資， 生活上的事。在些先送上一句幾喜歡的句語：

“The happiest people do not necessarily have the best things. They simply appreciate the things they haves.”