Things Guys Always Want to Do

Okay, I don't represent all guys but these are the stuff that I, as a guy, love doing it. I know girls hate me (or guys as whole) doing it, but hey this is our MANature wants us to do such stuff. Don't blame us, blame God's creation, blame evolution but don't blame us, Thanks.

Also, all my justification, explanation, excuses, or whatever-you-name-it are just my opinion based on my experience and some experts' scientific theories.

Let me present you: Things Guys Always Want to Do

Hanging Out With FriendS on Weekend
Ya, guys love hanging out with their friends after a tiring weekdays so that they can bitch around about 4 things: their jobs (money), their girlfriends (girls), their ambitious future and their glorious pasts. Ya, we do not want our girlfriends to spoil our only bitching night with our friends. Please understand this girls, you bitch about us (your boyfriends), your jobs, your mum, your dad, your hobby, your pets, your friends, your colleagues, your boss, your nails, your hairstyle, your cosmetic products, your fashion taste, your necklace, your shirt, your shoes, your socks, your daydream, your nightdream, your left hand, your right hand.... almost your whole lilfe to us or your friends everyday (or whenever you can). All we ask is just one night out with our friends to talk about our four things. Is this request too much for you? Please spare us a few hours to bitch around, okay?


Peeping Other Beautiful Girls
This does not mean that we don't love you nor we think they're prettier than you. Of course, you're the prettiest and that's why I want you as my girlfriend instead of her. So stop asking me who's prettier whenever I peep on other girls. You know the answer is always "You" and you know that it is always a lie. This is not our fault for peeping other beautiful girls. Blame:

1. Their parents for having such beautiful daughters.
2. Your parents for not having such beautiful daughter.
3. Your plastic surgeon for not being as good as theirs
4. The beautiful girls who make themselves look beautiful in the purpose of attracting attentions from us.
5. Evolution for making us to have the tendency to choose a better (more beautiful) partner for a better future generation.

See? This is totally not our fault for peeping other beautiful girls.

Watching Sports
This is ironic, girls love sporty guys but they hate it when guys want to participate the easiest sporty activity - watching sports. Watching sports is the first fundamental level of participation of any sport activities. How so? Watching sports generates interest, so after watching it, we feel like doing it. And honestly, sports channel is made for guys (and for a minority of girls). If we don't utilize it, it's a waste. Don't you girls like thrifty guy? Also, not to mention that you spend more time watching dramas than us watching sports.

Playing Games
Normally, girls hate it when guys play games unless they can play too. But the problem is, they are too stupid to play games. Girls easily get pawned and get emo. Then, they give up playing and can't understand why guys love playing games. Firstly, your IQ level makes you not able to understand the fun of playing games - so you can NEVER understand why we love playing games. But in a more scientific ways of explaining it, guy love playing games because playing games give us the sense of belonging to our friends + playing games reduce our pressure as we don't reduce it by bitching it all the time. Girls tend to bitch a lot to their friends and by doing so, they reduce their pressure and they get the sense of belonging to their friends too. So basically, playing games (for guys) = bitching around (for girls). Now you understand why we love playing games? Unless you can stop bitching, then we can stop playing games.

Watching Porn
Porn is essential to all guys. Porn satisfies our basic needs and our fantasy. I know watching porn is getting more acceptable to girls as some girls even enjoy watching porn too. But sometimes, girls just can't understand why guys love watching it all the time, even we have a very beautiful girlfriend available for sex all the time. Benefits of watching porn:

1. We learn various position and possibilities of positions. Ya, it's like Kama Sutra in action. Also, this benefits you too!! Ya, you got what I mean?
2. We can fantasize having sex in different places and learn how to initiate such sex. It benefits the girls too because we bring you surprises!
3. We can fantasize having sex in different impossible situation such as having a beautiful teacher seducing us when we were in high school; having a hot colleagues seducing us during OT; having threesome, foursome, fivesome...infinitysome etc.
4. We can fantasize having sex with different type of girls other than our girlfriends.

Eww.. You might think fantasizing having sex with different type of girls is mentally cheating but this is our MANature. And which, leads to the next thing we always want to do....

Having As Many Sex Experience As Possible
This is one of the reasons why we watch porn, the reason we idolized Edison, and the reason we may cheat (physically and mentally)! Again, this is our MANature to do so, so it's natural for us wanting to do so. We have a very scientific explanation for this, thanks to Charles Darwin. The main difference between guys and girls in reproduction is that guys want to reproduce quantitatively while girls want to reproduce qualitatively.

Main evidence can be shown - guys produce (and waste) billions of sperms every day while girls produce an ovum once a month. Through sperms, guys want their gene to be brought to the next generation by having as many babies as possible. And the most efficient way to have as many babies as possible is to have sex with as many girls as possible. On the other hand, girls' reproduction is very limited because they need to be pregnant for 9 months before delivering. If a girl want to dedicate her whole life for reproduction only, on average, she can only deliver 30-40 babies in her whole life. A guy can easily produce thousands of babies as long as there are available babies carrier for him. For example, a King in monarchy system. Although the current economy system does not allow a guy to reproduce as many as he wants, the mindset of "reproduce as many as possible" is set in our subconscious without we realizing it. And the only way to "reproduce as many as possible" is to have as many sex as possible.

So girls, please forgive our horniness. Even we didn't want it, but we'd just do it. It's in our subconscious to have as many sex as possible. I could never understand my unexplainable constant horniness until Charles Darwin told me his theory of evolution. So do you understand now as well?

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That's all the things guys always want to do - a total of six of them. Now with full explanations from our side, now do you understand why we always want to do such things? Also, these are very small amount compared to what girls always want to do. And I'll let you know what are those things in my future post, or you can tell me some too =D

I ain't gay but G-Dragon rocks!

Okay, I've said sorry.. Stop looking at me like this!

Do you still remember the picture of me hugging a bear? Yea I pasted my face over someone's face. But do you know who's the "someone"?

It's G-dragon!!

I didn't know this until recently =( Anyway, G-dragon does not stand for gay dragon nor g-whatever-dragon. I don't know how he has his name as G-dragon and I will never care to know. But he's fucking awesome.. But before I say anything about him, I have to apologize to:

K-pop fans: Sorry that I think Korean songs suck. Ya showing some skin, legs, boobs is nice to see but the music seriously does not attract me. (What does gi-gi-gi-gi-gi-gi-gi mean anyway?)

Big Bang fans: Sorry that I never knew Big Bang till recently because of my prejudice. And yes, I must agree Big Bang is different, mostly because of G-dragon. Basically Big Bang is just G-dragon's band with a Korean Pitbull, 2 typical Korean faces and 1 super ugly face.

Big Bang haters: Sorry that I never knew you guys existed because I never Big Bang existed. And sorry again because I like Big Bang (because of G-dragon too) and don't worry, I won't stop you from hating them.

G-dragon fans: Sorry that I pasted my face over him. And ya, I still agree that I look better than his!

Okay enough with my apologies! Why G-dragon attracts me so much?

1. He's very talented as he wrote most of the Big Bang songs.


2. He's very charming. He has a girly look yet he looks so manly when he sings and dances.

Wah such an innocent look~~~~

Can be (gay) bad boy look too!!

Stands out the most out of the fives, right?

Very gay shirt but funny dancing~~

3. He's very fashionable. Ya one can argue that it's his fashion designer fashionable, not him. But he's the one who has the last decision what to wear. Compare to other four Big Bang members, he stands out the most although he's the shortest.

Are you serious? Leopard skin!!!!! *Melt*

Looks good in pink too =D

Native America Coyote design?

4. He's very humor and talks a lot of cock (like me)!

Just full of !@%$^$%!!@ that I don't understand...

I don't understand this either..... (and I never bother to)

He's charming right? Especially in the leopard skin..... Lastly, I wanna show you my favorite song right now from Big Bang latest album "Tonight" - What is Right, and of course written by G-dragon too.

Last lastly, for disclaimer again, I'm not gay and not turning into one..

How to Control Time

Sometimes, we feel a day is like a minute short...
Sometimes, we feel a second is like a minute long...

Why is this so?

When we enjoy the time, time seems to go by very fast...
When we are bored, time seems to walk like a tortoise....

Hence, boredom is positively correlated to the length of time.
The more bored you are, the slower the time goes.

So, by making my life as boring as possible, I can make my time goes as slow as possible. Try this people! You can have all the time you want~~

Real life example #1 of my theory:
During work, if you are rushing a task to meet a deadline, make your task as boring as possible - You will have lots of time to finish up your task. Trust me =D

Real life example #2 of my theory:
During sex, if you always fail to satisfy your girlfriend, make your sex as boring as possible - You will have the longest sex ever to satisfy all her lusts.

....et cetera....

So remember this: You can control your time by controlling the boredom of your activity. Make your life as boring as possible so that you can live to the fullest!!

LOL @ My Blog

I never know I can my blog's stats without installing any fancy stuff. Thank Google for providing me all the stats I need to understand how I get my readers. First I want to congratulate myself for having more than 10,000 views in less than 10 months (1000 views per month, 33 views per day!). This is a VERY surprising stat for me because

1. I do not have any picture of myself showing cleavage.
2. I do not have many posts (average 3 per month?)
3. I do not promote my blog to the public (but thanks to my friends to promote it!)

Therefore, I decide to examine my blog closely.

The significant stats I realize other than 10,000 views are "Pageviews Today" of 100 "Pageviews Yesterday" of 143! This means that, on average my blog views per day has increased to more than 100!!! It is not hard to see why my blog views last month is 2804. Last month has only 28 days, which means 100 views per day!!

Then I study the graph and it shows that in May and June I had no readers at all - it's not hard to see why as I didn't put effort in writing until last June. And we can see a gradual increasing of readers - this makes me happy! =)

Next I examine my readers.

To my surprise, most of my readers come from USA instead of Malaysia!! Also, I have more European readers than Malaysian readers. This leads me to my next investigation - Which type of posts make my blog popular among the US and European readers.

And the most popular post is my sport post about basketball "the Three Kings in Miami", followed posts about plastic surgery, blowjobs and Taipei trip (very surprising!). Among the top 10 posts, we have 2 sport posts, 2 plastic surgery posts, 4 cock talking posts, 1 stock post and 1 travel post. So lastly, I investigate how these readers get into my blog.

Wow, I must thank Jean because most of my readers were directed from her blog. But Google plays the biggest part in getting my readers. And look at the "Search Keywords" that leads to my site.....

1. erik spoelstra - tha noob fuck coach from Miami, you're not totally useless....
   
2. pamplona - ya, the bull fest!
3. steve nash cock - who the fuck wanna see his cock???????? you won't get it here in my blog, fuck off you gay pervert!!
   
4. erik spoelstra wife - what the fuck?? I don't remember having her pic in my blog.
5. taipei girls clubs - i see how my Taiwan trip post get popular -.-"
6. avatar porn - LOL, this is classic
7. cock surgery - I have plastic surgery posts but never a cock surgery because I don't need it. You need one?
   
8. ford mondeo coupe - ummm interesting.....
9. loyalty - I guess many people are searching for loyalty in Google - just as I've told you, get a dog!

Also, if you guys wondering what those images from Google that lead to my blog, here is the top 3 pictures:

1. 
   
   
   
   
   
   
   
   
   
2. 
   
   
   
   
   
   
   
   
   
3. 

That's so much about my blog. Still a lot of perverts (I believe that's how I get so many American and European readers) trying to snatch pictures from my blog but it's okay, I snatched it from somewhere too. But thank you those that really read my posts, but for those who try to search funny thing like Steve Nash's cock, please go somewhere else! Thank you~~

Earthquakes in Japan shakes Not only Japan

Yea we all know the news of the earthquake in Japan. I remember when I was a high school kid, my physic teacher taught the Newton three laws of motion and one of the three laws was "For every action, there is an equal and opposite reaction". This is true when it applies to motion but this is NEVER true when it applies to E-motion. Emotion is not a motion of the Internet like such of email, e-study etc, but rather a psychophysical response of individual. Although I'm not as smart as Isaac Newton, I can present you and guarantee you the laws of emotion - "For every action, it will generate many many varieties of reactions". And we shall see how the earthquake in Japan (the action) generates various reaction:

Praying hard for Japan in Facebook
Ya, the Facebook-mania goes again! I've seen people praying in temples, churches, mosques, synagogues and even at home but this is the first time I see people praying in facebook!! Many pages/events are created to "pray for Japan". I wonder which God I am praying to if I join the event/page. If a Taoist and a Christian join this event/page, are they praying to the same God? Jade Emperor (玉皇大帝) = Jesus? Ahhh their name both share the alphabet J - sounds good to somebody? =D Maybe in the near future, we may see a new religion called Facebookism, followed by the Facebookists.


Showing concerns to porn stars in Japan
I guess I am not the only one who shows concern to porn stars in Japan. It is amazing to see the high popularity of Maria Ozawa among Indonesians but my concern goes to Kaede Matsushima and Julia. But the most concern of the AVers went to Yui Hatano (AV 林志玲) as her name appeared in the death list of Tsunami, according to Yahoo news. But according to Worldnewsco, there is no official confirmation of her death yet. Although her death is still a myth, one thing is certain that the earthquake will impede the porn production in Japan and we shall start collecting Japanese porn as we will see a short of production in near future. Recommended website for porn: JavJunkies

"Huh?? Earthquake in China too??"
Moment before the earthquake in Japan, a 5.8 magnitude earthquake hit Yingjiang County in southwest China's Yunnan Province too. The earthquake has affected the production and life of about 344,600 residents in the five counties. Also, the earthquake destroyed 18,445 houses and apartments and left 55,345 others seriously damaged, according to the ministry's figures. However, medias did not stress much on this news and focused mainly on the earthquake in Japan. This incident shows that the media and most of the people are in favor of Japan over China (the ratio "Pray for Japan" to "Pray for China" is 100 to 1 in Facebook?) And some even do not know the earthquake in China!! This favorism is not racism because Japanese and Chinese are both yellow. The reasons could be:

1. Size-wise, China is too big to feel the pain, while Japan is smaller, the scar is larger relatively.
   
2. Some people just prefer Japanese over Chinese as the result of watching too much Japanese manga and porns
   
3. Some people just hate communist and ignore any news from a communist country because it could be a fake news!

Predicting the coming of 2012
Many people see the earthquake in Japan as a sign of the coming of the end of the world. New terms like Twentytwelvology are created to describe the coming of this 2012 apocalypse. Many theories are developed to support this 2012 apocalypse make-believe. However, I am not a believer of the end of the world. If tomorrow is the REAL end of the world, what should I do now? Just live my day happily as always. So even if somehow the end did not come, I gain one day of happiness!!! The end is coming or not, just always live happily then I'll, for certain, always win!! Fuck you to those 2012-worriers/believers. Of course 2012 will come, so does 2013, 2014, 2015.....

Speculating the stock market
Whenever natural disaster or man-made disaster happens, speculators always take their chances to bet on the market. Nikkei lost 6.18% on Monday as the result of sell-off by investors and short-selling by speculators. It is unbelievable that Japanese government did not plan to shut its trading after the earthquake. This is a bad news for investors as earthquake destroyed many businesses. But think of the bright side, earthquake creates equal opportunity for construction companies and machinery companies to rebuild the country after the disaster. Kajima Corporation, the largest construction companies, stock gained 22.17% on Monday with 8-fold increase in volume. Friendly reminder again: Speculating is not the way to make money in stock market for long term - READ MY POST! And FYI, Warren Buffet just bought Lubrizol for $9 Billion despite the stocks fall and recent concern of Japanese economy.


These are just a few examples how different reactions can be generated as the result of the same action. Isn't a human emotion amazing? Earthquake in Japan shakes not only Japan but the heart of everyone.

p/s: If it happens to be true that Yui Hatano is dead, may your spirit, your smile, your voice and your beauty live forever in my heart by watching your master piece over and over again.........

Be An Intelligent Investor in 15 minutes (..... well depends on your IQ)

Preface:
After spending months reading, exploring and researching the so-called stock market Bible, I've decided to summarize the Bible to make everyone a little more intelligent at investing in stock market.

This Bible is none other than the book written by the investment Guru, Benjamin Graham (click for more info). For those who are not familiar with his name, in brief, he is Warren Buffet's mentor. Enough being said!!!! And for those who are not familiar with Warren Buffet's name, just STOP reading this post, I won't blame you......

I. Investments vs Speculations
Always, investing in stock market is seen as a zero-sum game. For those who think that stock market is zero-sum game, for certain, remain in a negative-sum game (after tax and brokerage) in the long run because they do not understand the gist of investing.

The reason stock market is seen as a zero-sum game is because these people make their money in stock market by assuming that other "fools" will pay higher price to acquire their stocks. However, this is not investing, this is speculation. Like thieves and robbers, these speculators take risks and make money out others' pocket.

On the other hand, investing is an art - like planting a seed (money) into the ground (stock market) and wait for the return (fruits). In a perfect world where the world population remains constant, yes, then stock market will be a zero-sum game. But we are not living in a perfect world. Therefore, investing is a positive-sum game. A business makes profit because

1. Increase in demand (growing world population, outperforming competitors)
2. Inflation (Increase in profit but not in real profit)
3. Decrease in supply (laws and regulation, war, environment, less natural resources etc.)
   

And hence, through investing our money in a business, we can make profits with the growth of the business, but not out of others' pocket.

Investing, by Graham's definition, is an investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. This means that investors need to do the following in order to invest in a business

1. Analyze the company BEFORE we buy the stocks.
   
2. Protect ourselves from any losses and risks.
3. Expect a moderate and satisfactory returns.

When putting your money in an investment, timing does not matter at all. Timing only matters to speculators but not investors. The only thing matter to an investor is the price, and how to determine if the stock price is cheap is through analysis.

Why timing does not matter? Because if you plan to keep the stock for a long period of time (let's say 5 years), would it matter to you if you buy the stock at 1% cheaper? The difference would be diluted by the long period of time. And investors always plan to keep the stock for long period of time unless the company is no longer performing or the stock is way too expensive now.

In short:
Speculation - buying on the hope that a stock's price will keep going up.
Investment - buying on the basis of what the underlying business is worth.

II. Inflation
As mentioned, inflation can increase profit but it does not increase wealth as the living cost is higher due to inflation too. Inflation is a very important element in investing as it

1. Eliminates our profit without our knowing
2. Is out of our control
3. Is the main reason why we invest - to secure our wealth from inflation
   

Because inflation can hurt us in many ways without being noticed, Benjamin Graham put extra emphasis on inflation. Therefore, as an investor, we should always safeguard our capitals and profits with bonds and money market to guard ourselves from inflation.

III. Margin of Safety
We invest in the present, but we invest for the future. And unfortunately the future is always uncertain - wars, recessions, natural disasters, terrorist attacks, natural resources shortage, inflation, interest rate etc. Therefore, investing on the basis of projection and forecasts does not make sense. However, the current price reflects not only the past and present performance of the company and the important facts about the company, but also reflects the expectation of the public on the company's future. And this is where we can exploit the inefficiency of the market.

What is certain is the past and the present. Benjamin Graham suggests that we should use past and present information to generate an estimate of how much the business is worth (the value of the business). Then, compare the "value" with the current price of acquiring the business:

• Value > Price - the larger difference between value and price, the larger "margin of safety", the better buy it is. Benjamin Graham suggests at least 30% margin of safety.
  
• Value <>
• Value = Price - there is no margin of safety too. Thus, it is bad buy.
  

Remember, margin of safety does not prevent a loss because losing some money is an inevitable part of investing. Nevertheless, investing with a "margin of safety" prevents us from taking unnecessary risk and from overpaying. We must be extremely risk adverse in order to survive and to be successful in stock market because we cannot afford to lose in stock market. Let me illustrate as follow:

Stock A grows 10% annually while the market average grows 5% annually. However, Mr. X pays too high the price for the stock A, stock A loses 50% of its value in the first year and generates 10% annually as it supposed to. It would take Mr. X's stock A to grow 10% for 16 years to reach the market average gain.

The morals of the story are:

1. Never overpay
2. Always keep some chips in your hand, rather than losing most of them in the beginning to the market.

And by using "margin of safety", we prevent overpaying for one stock and reduce the risk of losing. The most important reasoning behind "margin of safety" is gain more by taking less risk. This might seem confusing because "the teachers in school say high risk high return" and it contradicts to most of our understanding of stock market. Well, this leads us to the next topic "Risk".

IV. Risk
We are told: High risk, high return. Low risk, low return.
The fact: High risk, less return. Low risk, high return.

This is why:
Let's say I'm selling you a bottle of Guinness for $2. You think it's cheap because you know a bottle of Guinness is worth $5. (You have a margin of safety of 60% for buying this bottle of Guinness). Would you buy the bottle of Guinness from me?

A good answer is NO because you should examine that particular bottle of Guinness first. Maybe it's expired, maybe it's fake etc.

After examining, you are certain that the bottle of Guinness is genuine and I'm selling it to you under goodwill. Would you buy from me? This should be a yes answer because you are paying less price for its value. You could easily make a profit from reselling the bottle of Guinness at $5 to the market. Also, you have little risk of reselling it because you can sell below market price and still profit from it.

What if now I'm selling you another bottle of genuine Guinness at $4.75 (5% margin of safety), would you still buy from me? It should be a yes answer too because it's 5% cheaper than the market price but you might consider other factors too. Do you plan to resell it? Do you plan to drink it? If you plan to resell it, probably you won't buy it from me because the profit margin is less and the risk of not getting it sold is higher.

Put the story in stock market:
1. Someone is selling a stock at a very low price (low PE ratio)
2. You analyze it (like you examine the bottle of Guinness)
3. You make decision to buy or not, based on the resales value of the stock in the future (like you're reselling the bottle of Guinness to make profit).

And how would paying less for the bottle of Guinness is more risky than paying more? It does not make sense because paying less is obviously less risky and is generating more profit as we have a higher profit margin. On the other hand, paying more is more risky and is also generating less profit. Therefore, we should forget what know about risk/return before and embrace Benjamin Graham's philosophy of "less risk, high return".

V. Defensive Investors vs Enterprising Investors
Defensive Investors create a permanent portfolio that runs on autopilot and requires no further effort. On the other hand, Enterprising Investors continually research, select and monitor a portfolio. Both types of investors are intelligent investors. And to be which type of investors, it all depends on your:

• Personality
• Effort you wanna put into your portfolio
• Current financial status and employment etc.
  
• Current marital status, family size etc.
  
• Long term goal and short term goal

But please remember this, it NEVER depends on your age. I agree age changes your mentality but age is NOT a factor. Never too old to learn, never too young to learn, and if you are willingly to learn, wealth is what you'll earn.

VI. Guideline for Defensive Investor
In his portfolio, a defensive investors should never have less than 25% or more than 75% of his fund in stocks, and vice versa in bonds. By doing this, we can

1. Secure our funds from inflation (by holding bonds)
2. Outperform the inflation (by investing stock market)
3. Survive bear market (by holding bonds)

For the bonds component, an investor can choose either one or a mixture of the following:

1. Taxable or Tax Free Bonds
2. Short term or Long term Bonds
3. Bonds or Bond Funds
4. Treasury securities (in USA, T-bill; in Malaysia, MGS)
5. Saving bonds/Fixed Deposit

For the stock component, an investor can choose either one or a mixture of the following:

1. Mortgage securities
2. Annuities (Insurance-like investment)
   
3. Preferred Stock
4. Common Stock
5. Mutual Funds
   
6. REIT
7. TIPS (Treasury Inflation-Protected Securities)

Mortgage Securities are considered safe investment during Graham's days but the financial crisis in 2008 showed us that most of the mortgage securities are just junk. You must examine these securities with EXTRA care if you choose to buy as some of these securities are way underpriced after the crisis. Yet, if you buy wrongly, it's just a piece of worthless paper.

Some rules to follow for a defensive investor:

1. Adequate diversification but NOT excessively diversify the portfolio. Over-diversify can almost ensure you NEVER be able to outperform the market.
2. Investor should impose limit, in terms of PE ratio, on the price he will pay for the stock
3. Avoiding growth stock as they are almost overpriced and financially unstable.
4. Avoid changing your portfolio too often unless you have a very good reason to change it or a very bad reason to keep it (losing money is not a valid reason to change).
5. Practice Dollar-Cost Averaging: Invest a constant amount of money in your portfolio every month, regardless how's the stock market is performing.

Before going into the company's financial structure, an investor must understand:

1. The company's general long term prospects
2. The quality of the management

Then, examine if the company purchased possess the following quality:

1. Adequate size
2. In a sufficiently strong financial condition
3. Earning stability for at least past 10 years
4. Uninterrupted dividend payment for past 20 years
5. Earning growth
6. Moderate PE Ratio (~15x average earnings of past 3 years)
   
7. Moderate Ratio of Price to Assets (not more than 1.5 times of book value)

VII. Guideline for Enterprising Investor
Also, in his portfolio, an enterprising investors should never have less than 25% or more than 75% of his fund in stocks, and vice versa in bonds.

What to Avoid in Portfolio:

1. Junk Bonds (high default rate)
   
2. Preferred Stocks (constant coupon yet taxable and less protected than bonds)
   
3. Foreign Bonds (high default rate)
   
4. New Issues of Bonds (uncertain return)
   
5. Initial Public Offering (overpriced)
   
6. Day Trading (<-- avoid at all cost because highly speculated with high trading expenses
7. Hot Stocks (probably way overpriced)
   

Foreign bonds are considered junk bonds in Graham's days because of the post-war financial situation in the world, USA became the financially strongest country and there was no reason to invest in other risky countries (China was considered risky country for the cold war reason). However, in our time, investing in third world country bonds are as safe as buying T-bills. Also, third world country bonds, that do not sync with US market can provide us a comfort zone when the US market is not performing (as we have seen during the financial crisis in 2008).

What to Include in Portfolio:

1. T-bills, Saving Bonds (riskless)
   
2. Rated A Municipal Bonds (tax free)
3. Rated A Corporation Bonds
   
4. Common Stocks of Unpopular Large Company (usually cheap)
   
5. Common Stocks of Secondary Company at Bargain Level (undervalued stocks)
6. Mutual Funds

Also look for:

1. Arbitrages
2. Liquidations
3. Related Hedges
4. Net-Current-Asset Issues
   

Some rules to follow:

1. Be consistent with your investing strategy and refuse to change even when it is unfashionable.
2. Less diversify and take very specific high risk (i.e. do put all eggs in one basket)
3. Pay little attention to what the market is doing (i.e. switch off the Blomberg news).

Before going into the company's financial structure, an investor must understand:

1. The company's general long term prospects
2. The quality of the management

Then, examine if the company purchased possess the following quality:

1. In an acceptable financial condition
   i. Current Ratio >1.5
   ii. Debt <>
2. Earning stability for at least past 5 years (no deficit for 5 years)
   
3. Some dividend payments
   
4. Earning growth
5. Price: Less than 120% Net Tangible Assets

VIII. Management
Notice that how important the company's long term prospect and the quality of management are when making decision to buy a stock. The company's long term prospect and the quality of management always come before the capital structure of the company. The manager manages the company and determine the future prospect of the company.

One extreme example can be that Company A has a very strong capital structure, grown 20% annually in the past, beat the competitors by miles and yet you are able to acquire it at very a fair price. Let's say despite his ability to make the company so profitable, the manager is a hermit-crab-like person and plans to leave Company A for its competitor Company B in very near future. Company A's future prospect can be in danger because of the attitude of the manager and as a shareholder (investor) should avoid such situation.

In theory, investors are shareholders and they have absolute power over the managers as the cash, the business property and the employees belong to the investors. However, in practice, because many of the investors who buy stocks in the intention of selling them to make profit, do not plan to own the stocks, they give little attention to the managers.

As an intelligent investor, you should know your rights as a shareholder of the company by reading the proxy materials. Understanding and voting your proxy is very important to you as an investor. If the manager do not work at the best interest of the shareholder (such as unfavorable dividend policy without justification), you have the rights to get someone else to work at the best interest of you.

IX. Other Important Financial Knowledge

PE Ratio - To determine how expensive/cheap of the given company. The lower PE Ratio, the cheaper the company is.

Return on Invested Capital (ROIC) - To show how efficiently the company has used the shareholder's money to generate return. Generally, 10% is attractive and 6-7% is tempting if the company has good brand names, focused management, or is under a temporary cloud.

Current Ratio - To determine the company's ability to meet its short term obligation. Usually >1 indicate the company is financially okay to meet its short term debts However, companies like Coca-Cola and HP which have very high earning power usually have current ratio lower than 1. The reasoning behind this is that such companies keep very low cash for other investments and keep very low inventory for more efficient manufacturing operation.

X. Conclusion
The problem we face today is not that many financial analysts/investors are idiots, but rather that so many of them are so damn freaking smart (thanks to the teaching of Graham for more than 60 years).

Under Efficient Market Hypothesis, millions of financial analysts and investors scouring the market every day, it is unlikely that severe mispricings can persist for long. As more and more smart people search the market for bargains, the chances of getting bargains are getting rarer. The market's valuation of a given stock is the result of a vast, continuous, real-time operation of collective intelligence. Most of the time, for most stocks, that collective intelligences gets the valuation approximately correct.

Nevertheless, investment still enables us to beat the inflation and secure our wealth from inflation. To some, it provides excitement. To some, it provides wealth. And unfortunately, to some, it destroys wealth. To prevent the third situation from happening, we shall follow three core principal of investing:

1. Know your business - Do not try to make "business profit" out of securities but out of the business you own through securities (read more under investment vs speculation).
   
2. Do not let anyone run your business, unless you can supervise him or you have confidence in his ability and integrity (read more under management).
   
3. Do not enter upon an operation unless it has a fair chance to yield reasonable profit (read more under margin of safety and risk).

Remember that we cannot control uncertainty but we can control:

1. Our own behavior - do not panic to sell if your portfolio loses some money and do not panic to buy if some other stocks are performing so well.
2. Brokerage Cost - trade rarely, patiently and cheaply
   
3. Ownership Cost - do not buy mutual funds with excessive annual expenses
   
4. Expectations - use realism to forecast returns
   
5. Tax Bills - hold stocks for long term to lower the capital-gains liability
   

And lastly, I hope this summary of Benjamin Graham's "The Intelligent Investor" will help you to understand more about investing in capital market. Remember, this is just one brief summary of one of his great books and I strongly recommend you to read more of his books. And start investing as early as you can because you'd rather learn how to invest now than later.


p/s: The order of the contents in the book is different from mine because I reorganized them according to its importance (in my opinion).
p/p/s: Good luck to those who think they are ready to get into the securities market after reading this post. This is not being sarcastic =)

Loyalty is for Dogs

What is loyalty (忠)? Loyalty is faithfulness or a devotion to a person, country, group, or cause. (Source: Wikipedia) Loyalty used to be a virtue, but now it's just plain foolishness - oh wait, has loyalty ever been a virtue? I guess it only happens in the perfect world under Confucius' teaching. Or loyalty is taught as virtue for the politicians to control over us?

In the world we living now, is loyalty a highly praised virtue? Or it just shows plain foolishness? We suppose that life with virtues will lead us to happiness and happiness is what we, every human, ultimately pursue for. However, loyalty, often times, is not rewarding although it is highly praised by the "saints". Let me illustrate a few example:

Kevin Garnett was a loyal basketball player to the Timberwolves franchise in NBA. He spent his prime time in that lousy franchise, which happened to be located in a a cold and deserted lousy place, achieving nothing and ended traded to Boston Celtic due to his age. So what loyalty rewards him? 7 years of losing. He didn't demand for the trade to Celtic but he was traded because he was too old for the franchise. Luckily, Celtic is a better place for him as a player, as he won his first championship on the year he got traded to Celtic.

On the other hand, Lebron James, the most hated NBA player on earth, saw Kevin Garnett's past and decided not to waste his prime in Cleveland (yet another lousy place, cold and deserted). After the Decision, he went to Miami (one of the best cities!!) to join his friends. And here the story of anti-LBJ goes.

Lebron James shows no loyalty at all. The Cleveland Cavaliers did everything they could to retain him but ended up setting records of losing 26 straight games. But he did show reasoning and intellect while making the Decision, making the best choice for himself.

Yet to see how loyalty mistreats players like Dirk Notwizki and Steve Nash. Yes they are white but when the time for decision making comes, they are more emotional and less reasoning than the black (Carmelo Anthony and Lebron James).

Enough for the NBA stories. How about some examples that are happening in our life? Such as brand loyalty? I will show how loyalty plays tricks in our mind and often misguides us from enjoying a better life.

We understand how companies spend tons of resources every year to build up brand loyalty in their customers. For example, Toyota, the leader in automobile industry, builds its brand loyalty through constant marketing, products upgrading and improvement on services. Through such efforts, Toyota successfully make its customers feel that driving a Toyota is driving the best car ever (for the given price of course!) and I was one of the millions brand loyalty victims. When competitors like Honda and Ford improves their products and services even better than Toyotas, Toyota customers, blinded by brand loyalty, refuse to accept or try the products manufactured by the competitors. As the result? These customers (including me) pay more for poorer product and service.

So does loyalty serve us good? Being loyal to Toyota is a good thing for Toyota's profits. And bear in mind, it is ONLY good for Toyota but NOT you. When competitors offer better products with lower price, we refuse to being reasonable and intellectual and make our decision based on emotion and past-ol-good-experience. As the result - we are paying more for less, and forfeit the "could have"/ "would have" enjoyment brought by the new competitors.

Also, loyalty is very often exploited by the politicians. What makes you vote for Party A instead of Party B? Some vote for party A because they like a particular politician figure in Party A. Some vote for party A because they feel that they belong to Party A.. Some vote for party A just because they hate Party B. But very few vote for Party A because they think Party A's policy serve them better in long term or short term.

So what is the purpose of having democracy when loyalty plays a more important role in deciding the country's leader/policy? Why don't we just have our monarchy system where the King and Queen live happily together in their pretty castle and we will be loyal for the emperor forever (as long as he doesn't abuse us)?

So back answering the question: Is loyalty a virtue? My answer is HELL NO because of the following arguments:

1. A virtue is a moral excellence in a person.
2. We practice a moral excellence because by practicing it, we believe we will achieve happiness.
3. Loyalty benefits only the loyalty-receiver, but not the loyalty-offeror.
4. Loyalty does not bring happiness to someone who practice it (the loyalty-offeror).
5. Hence, loyalty is not a virtue!!

Examples and arguments are presented to show how loyalty obstructs our reasoning and intellect to make decision which is best for us, hence hindering us from happiness.

So what makes us loyal? The rewards (often time in monetary form) given by the loyalty-receiver. Thus, loyalty can be bought with a price! You may ask what's the price for a loyalty. Remember the loyalty card given by Starbuck? A free coffee for every 10 coffee bought is what Starbuck paying to get a loyal customer!


We are just human. If you want loyalty, get a dog........ and feed it!

Why We Can NEVER Be the Next Warren Buffet

Yes, there are tons of books selling in the market, teaching you how to be the next Buffet. Ask yourself, have you seen a book written by Warren Buffet? If those authors really know how to be the next Buffet, do they need to spend their time writing such books instead of researching the next big business?

I think that such books are useful in some ways because they provide different perspective of investing theories. However, we are all human and we have our own opinion. We'll hardly find anyone who share the same views even on the same thing. For example, some people think Justin Bieber is cute, some people think Justin Bieber is gay. We are looking at the same Justin Bieber here but we all have different views. And that's the beauty of differences that creates the stock market.

Warren Buffet seems to have the most successful stock picking skills/knowledge. But do his skills/knowledge fit us? The answer is NO. Even if Warren Buffet himself will not able to create such wealth if he is born 50 years later. I will tell you why.

The global population in 1960 was just merely 3 billion. In 40 years, it doubled to 6 billion in 1999 and now according UN, we have 7 billion population on earth. For the given another 40 years, do we expect the population would double again to 14 billion? Highly unlikely as the expected global population by 2045 is 9 billion by the UN.

During the age of Warren Buffet

1. Laws and regulations in the stock market is not as strict.
   
2. Not many people practiced fundamental stock valuation.
3. Relatively low level of education in the world.
4. The sudden boom of population growth.

Just imagine he make $1 for every increase of population. He would make $3 billion in 40 years. But if he make $1 for every new baby born, he would make $300 billion in 40 years (without subtracting off the death rate). How about let's say he make $10 for every new baby born, he would make $3 trillion in 40 years!!!!

One would argue that in another 35 years, the world population is expected to grow for another 2 billion. We could have made $10 for every new baby born too. But here's the trick, to be the smartest in a group of 3 billion is super super super super super tough. And to be the smartest in a group of 7 billion, not to mention that higher education rate among these 7 billion people? x100 toughness......

Furthermore, good companies with good constant earnings can be only bought with a very high price. Let's say now we buy stocks of Warren Buffet's favorite companies such as the consumable giants Coca Cola and HP, they do not generate the same return Warren is enjoying right now because they are just too damn expensive!

So here's the suggestion: Let's look for new companies that share the similar characteristic as Coca Cola and buy them while they are cheap. But the problem is: You're not the only smart guy here. Price war will drive up the stocks without increasing the value. Thus, it generates less return.

So let's face the fact, we'll never be the next Warren Buffet.

However, if we do something different, we are able to create a name for ourselves. The catch here? Following Buffetology will not create the same wealth because we live in the different era. Man, that dude is 84 year old..... We have generation gap!!

Happy Chinese New Year a.k.a. Gong Xi Fa Cai

3 years not celebrating Chinese New Year, now I have a chance to celebrate Chinese New Year. Moreover, this year is the year of rabbit and I'm born in the year of rabbit, so this year is MY YEAR!!! WOOHOO~~~~

So here is my new year wish list:

1. Get a job - I mean get a serious job, not boob job nor blow job. As I am going to USA now, I want to have a real job in my field of study, which is finance. Working in an investment bank will be cool, and I will do my best to get the job.
2. Get a girlfriend (whom I love) - I mean get a REAL girlfriend, not female BFF nor Kaede. With my handsome looking, the first part should not be easy. The difficult part is the loving part =(
3. Get six pack - I mean six pack on my abs, not six pack of beer nor six pack of cola. I must let my six pack to see the sunlight, it has been hidden 5cm under my fat for years!

I'm not a greedy person, 3 wishes are enough for me. I'll be the genie of my own and you will just have to sit back and relax and witness my success =D

Of course, this post is not just about my new year wishes. I wanna let the whole world know why the year of rabbit is the BEST year ever. The reasons are:

1. Because I am born in the year of rabbit, that's why!
2. Everyone just loves the year of rabbit, because we all do not like other 11 animals as much!

Let's have a comparison of all the animals

RAT
Rat is ugly and dirty. I do not understand why we have rat as the first animal. Perhaps the ancient Chinese were so smart that they predicted that the most famous animal in the modern history is a rat (Mickey Mouse).

Rat can be ugly but adorable a.k.a. cute (for some people). There is a Chinese proverb - everyone hates a stress crossing rat (过街老鼠，人人喊打). Although we are not cats that really hates rats in their blood, I do not think we are able to show our love to the rats.

COW
Cow are nice, nice and ..... nice?

1. Cows farm(ed) for us.
2. Cows provide milk that are used to produce chocolate, cheese, yogurt and many other delicious food products.
3. Cows provide New York steak and T-bone steak.
4. Cows provide ox-tail soup and ox bone soup.
   
5. Cows provide LV bags and Gucci bags.
6. Cows provide cow girls!

Yea talking about cow girls can be sexy and lovely too - umm not these cow girls. I mean the REAL cow girls as follow:










We should be thankful to the cows and be thankful in the year of cows.

TIGERS
And move on, we have the year of tiger. Some men love tiger (Thai-girl) and some men do not. Tiger represents courage, and we can see why - we do need a lot of courage to wear something like that!















Tigers also represents fierce. For example, having a tiger girlfriend/wife means that your girlfriend/wife is fucking fierce. However, tigers have the cute and sexy side too. We just need to know how to tame the tigers.
















RABBIT
We'll skip the year of rabbit because I wanna save the best for the last.

DRAGON
Dragon is known as god of animals and some Chinese even worship the dragons. With the help of such mythical and godly animal, the year of dragon should be the best year. But the problem is dragon is not a real animal. Until I see a dragon, I will not even consider the year of dragon is a valid year for Chinese New Year celebration.

But here is the interesting part: Although no one has seen a dragon before but we all know how the dragon girl (should) looks like.


Nonetheless, we do love dragon girl, don't we?

SNAKE
Snake plays a utility role as it is slim, lazy, evil, and cunning. Girls want to have a a snake waist, long and slim. Boss hates it when someone is "snaking" (去蛇 a.k.a. do nothing). Christians think that the snake makes us all sinful. Teachers always try to catch us "snaking" (出蛇 a.k.a. cheating)

Because there are more bad than good, the year of snake is not a good year. Still, I love it when a girl is related to snake somehow.










But not too much =(










HORSE
Horse represents energetic. So it's always good. But horse can be used to scold someone as ugly too (马脸). Therefore, it's not a perfect year like the year of rabbit.




GOAT
Goat represents tame. Yea of course they are tame as they are vegetarian. But in some religion, the goat is the devil itself (OMG~~~!) For these people, they hate the year of goat because they think that they are living in the year of devil!!!!!!

Also, I think goat is ugly and creepy =(










MONKEY
Monkey represents playfulness. For Darwin followers, monkey is our ancestor! Therefore, the year of monkey is the year of their ancestors. This is bullshit because I do not see anything in common between a monkey and a human, oh wait I do....










CHICKEN
Chicken represents protein and nothing else. It is most common source of protein and is widely acceptable by many people (but the vegetarian). Sometimes, humans are so evil - we eat not only the chicken itself, but we eat also their unborn baby (eggs). If we continue to eat at such rate, the chicken will be extinct very soon!!!!!!










So please, save our chicken!!! Also a message to one of my friends that LOVES nothing else but chicken: please eat as many chicken as you can before they get extinct!

DOG
Dogs are men best friends because women never stop talking and never listen but dogs just bark sometimes and listen to men. Also, men and dogs have one thing in common - they are always horny. You have no idea how jealous a man is when dogs can hump on anything/any bitch they see. So, dogs are men best friends forever~~~~

Ya even a cute cosplay dog girl cannot replace a real dog in a man's heart unless the man can keep the girl mouth shut!

PIG
For some reasons, we use pig as an adjective. Pigs represent fat, ugly, stupid and lazy. So the year of pig is definitely not a good year. It is true that pigs are fat. But don't forget that we feed them so much to make them fat so that they can feed us with their fat. We are just being hypocrite like we always do =(

However, it is untrue that pigs are ugly, stupid and lazy. How can we justify that pigs are dumber or lazier than a dog? Therefore, in my opinion, the year of pig is not as bad as a pig represents.

Nonetheless, when someone says that you're a pig, means that something's wrong with you.....










RABBIT
Yea the year of rabbit is the best because......

1. Rabbit is tame as it is vegetarian.
   
2. Rabbit is cute.
   
3. Rabbit is smart (Bugs Bunny).
   
4. MOST MOST MOST importantly......

Don't you agree that rabbit is the best animal ever? SO CUTE~~~~~ that you can't think of anything bad about it!!

Even Paris Hilton looks cute But still slutty.....

And yea, we can all join the fun of being rabbit.....