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I have been observing the roles of the different styles of value investing. I have been thinking what value investing related metaphors Buffett said are meant. Finally, I have figured it out So far, one following quote makes me to realise that it is true whenever I discuss investment with my friend(s).
Value investing is not a concept that can be learned and applied gradually over time. It is either absorbed and adopted at once, or it is never truly learnedIn relation to this quote, consider the role of learning economics. It is safe to say that around 80% of the people pay no attention to the quality of the application of economics to the real world. Even though the original work of the economic theories are abit far off from the real world, we can greatly modify it for the best fit towards the real world. Sadly, these people will be the first one to leave right away after the economics lesson. Some of them ask around in the hope to understand for better grades in their own respective courses. Too few people are genuinely know the true value of the applied economics. I know one of these few people. Similarly, about 99% of people do not know the value of the uses of the theories they have learnt. It is all because they do not have any ideas how they link. As for me, I constantly see all the theories I have learnt from my selected modules in many real world works. Certainly, the assumption behind most of the theories are unrealistic but people need the theories to guide them. Consider the simple analogy. Without the driving theory, you will have no idea when and how to change the lane of the road without causing major or minor accident. Without geometry map of the options, you can not even visualise how much profit potential and loss potential will be. Without mathematics verison of modern portfolio theory, you can not see how diversification and asset allocation work. In the nutshell, there is a reason why you need to know certain theories that will guide you towards the knowledge of what you are actually doing. Buffett said that the risk comes from not knowing what you're doing. I have to agree with this one. That is to say that some of the jobs in certain companies require you to utilise some of these theories you have learnt. The problem is that these jobs are too few. Singapore is heavily dependant on the service sector, which means that there is less chance to utilise these theories for the work. No one likes to use their brains to think harder and carefully in the real time, which is likely to be less than 1 hour.
Back to value investing, my mother, who practise short-term investing in order to get some capital gains as a form of income, has no patience towards the period of obtaining the capital gains in the view of value investing. It is one classic example that value investing is not learnt at all. We will definitely find that many people do not have patience to wait or they find it more complicated process to learn.
The more books about value investing I read, the more I realise that there are wide variety of the views of the value investing. To be specific, different value investors have different thoughts on how assets and liabilities in the balance sheet as well as off balance sheet items are valued. Some spend more time on understanding the business that is operated in the company. Others do not bother to understand. In fact, both sides are generally successful.
Books
Book Title: Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
Author: Seth Klarman
Rating:10/10
Remark:
I hear a lot about Seth Klarman when I was reading most of the blog entries by a value investor pracitioner, who is way younger than me. Upon checking who Seth Klarman is, I discover that he is successful value investor. I sort of envy him that he was taught by two well known value investors at Mutual Series after his completion of undergraduate study. Before I read his book, I had a preconceived perception that his book must be some kind of complicated book just like Security Analysis. I was wrong! It is really easy-to-read book that he simplify all the tenets of value investing philosophy. On top of that, he offer realistic and simplified numercial example of some types of value investment strategies. However, there is a need for little financial background to read his book. I can say for sure that 'The Little Book That Beat The Market' is easier to read than 'Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor' but the latter book is easier than 'Security Analysis'. I highly recommend you for any serious value investors who wish to learn more. So far, it is one of the best investing books I ever read.
Movies and Dramas
Title: A Million [10억](Korean Movie 2009)
Synopsis:
The story revolve around a survival contest show that offers a prize of $1 million Korean dollars to the winner of that show. The organiser arranges this contest show calling 8 people. They have to go through five rounds until the winner gets $1 million Korean dollars. In order to win that show, the winner has to go through all kinds of killing among 8 people. Why? Who is the winner?
Rating:7/10
Remark:
When I saw the synopsis of that movie written by somebody else, I was tempted to watch this show. So far, it is fine movie with unique plot. The ending is quite unbelieveable, probably a stunner to us.
2012(Hollywood Movie 2009)
Synopsis:
This movie is developed when the director of this movie has an inspiration from a book titled 'Fingerprints of the Gods'. At the beginning of the movie, scientists are trying to understand phenomenon that has recently appeared. At that point, the conclusion is that the end of the world is coming close. As a result, there is massive acceleration to build the ark. At the same time, a divorced man is trying to save his wife, his son, and his daughter. Did he succeed? What will happen to all the nations in one whole world?
Rating:7/10
Remark:
Given the massive advertisement showing the attractive graphics, the action and sound effects are top notch. The story is nothing to see. In this movie, we only need to sit down, awaiting all kind of actions and sound effects for the full potential of the entertainment. It is like reading a bible about the Noah Ark.
District 9 (Hollywood Movie 2009)
Synopsis:
Aliens arrived in the Earth with their one gigantic spaceship in 1982. The location of their arrival is at South Africa. In the news show fashion, we get to see a new organisation, Multi-National United (MNU) to deal with aliens who may live together with humans. In reality, given their nature of living and the objection from humans, aliens have to live in a small area, known as district 9, which is far away apart from the human territory. Wikus van der Merwe was appointed to be in the charge of a team. This team is to evict the alien population. One day, Wikus was exposed to a black-coloured strange liquid. One of his arm turn into alien-alike, not human-alike. What will happen to Wikus? How shall he survive?
Rating:8/10
Remark:
The movie is filmed in very unique way as if we are in the real world, living the alien. We are nearly convinced in that aspect! The CGI is quite realistic. You should watch this movie.
Monsters Vs Aliens (Hollywood Animation 2009)
Synopsis:
A metorite is on the course towards the crash site, which is at Earth. It hit a human lady, Susan. Susan suddenly turns into a giant human. Every normal human is so afraid of Susan, running away from her. The miliary captures her and takes her into the secret facility, where no normal people know. In that secret facility, there are other monsters that look wierd to the normal humans. Eventually, Susan makes friend with them. One day, the major of that secret miliary prosposes to the president of US to use these monsters to fight against aliens who came to the Earth for something as normal weapons army use do not kill these aliens. Will these monsters win?
Rating:6/10
Remark:
It is nice story that will delight any child. In any case, this film should be suitable for us when we wish to relax ourselves in our free time.
Julie & Julia (Hollywood Movie 2009)
Synopsis:
This movie is based on two true stories about Julia Child and Julie Power. Americans will know late Julia Child as a celebrity cooker. As for Julie Power, she probably became famous due to her blog about how she attemptted to complete all the recipes that were written in a cooking book written by Julia Child. In that film, we will get to see how Julia Child lived with her husband in Paris in few decades ago. In addition, in few years ago, we also get to see how Julie Power achieve this feat. In fact, Julie Power admired Julia Child so much that she treat the latter as a imaginary friend. When Julie Power was first recognised in the New York Times newspaper, what would Julia Child say?
Rating:6/10
Remark:
I got to know this film when my friend recommended this to me in few months ago. Therefore, I watched it in anticipation of Julie Power getting to succeed all the Julia Child's recipes in the similar fashion as what John Nash discovered Nash Equilibrium. So far, it is fine movie that you wish to enjoy how humans reap what they sow. But, hey, Amy Adams looks good with her short hair!
Balibo (Australian Movie 2009)
Synopsis:
This movie is based on the true story about what happened to the five Australian-based journalists in the first place. They were sent to East Timor to film the happening between the Indonesian army and defenders of East Timor. They disappeared into the thin air. Nobody knows what happens to them. A young man from East Timor, Jose Ramos-Horta, came to Australia to hire Roger East. The purpose of the hire is to publish the story about East Timor. As Roger East was unsure about whether he is up to the task, Horta gave him an information about that five journalists and their unknown whereabouts. Because of this information, Roger East decided to find out the truth about them. Did he find the truth?
Rating:8/10
Remark:
When I saw the synopsis of this movie written by someone, I was tempted to know what is going on these journalists. The story is so good that you really want to know more and more about the truth. This should be a good lesson for all teenagers about the importance of having physical and read-to-defend army. Clearly, a persence of such kind of the army should be sufficient to deter any kind of invasion as long as it is very loyal one. No amount of political influence globally can create sufficient defence for the country. This should teach that lesson to these teenagers. Bloodly hell, Balibo is brilliant film.
The Case of Itaewon Homicide (Korean Movie 2009)
Synopsis:
This movie is based on the real life. Two South Korean-American guys are blaming each other for the real murder, who killed 23 years old South Korea guy. The evidences are not very clear because some of them lead to one of two mentioned guy and other also lead to the other. Therefore, the result of the case is abit disappoint for the victim's family. What happen?
Rating:8/10
Remark:
South Korean movie producers seem to be good at producing murder-related movies that bring shockers and suspense to people who live outside South Korea. I still cannot forget how unbelieveable a murder get away after murdering a kid. It was famous case which subsequently filmed in few years ago back. And now, this movie bring similar element but the plot is less exciting. I assure that everybody will enjoy this 'Case of Itaewon Homicide.
2022 Tsunami (Thailand Movie 2009)
Synopsis:
The movie is about how tsunami swept Thailand. A team that check out for the natural disasters especially earthquake and volcano. The biggest question need to be answered: When will the dreadful natural disaster strike at Thailand?
Rating:6/10
Remark:
This movie exhibits a lot of Thailand culture and feeling. There is not much excitement other than seeing how patriotic Thailand prime minister care for the people. Good enough for us to watch during free time.
Dance Subaru (Japanese Movie 2009)
Synopsis:
The movie evolves around a Japanese woman, Subaru, who wants to be ballerina. She wants to dance as a professional ballerina by the time she realise the joy of dancing. Will she survive the harsh world of ballet?
Rating:6/10
Remark:
This story has a lot of feelings to be felt within the humans including you. It serves a reminder that we need to be very independent to survive in the world with our own set of skills that we like to use.
Poker King (Hong Kong Movie 2009)
Synopsis:
Jack Chang was called up by Uno Cheuk to return from Canada to Macau. After Jack Chang's father death in 10 months ago, Uno Cheuk showed the right to manage Jack Chang's father's business. In the video, before Jack Chang's father's death, he said that the one who had the right to manage is the one who can do the job correctly. Did Jack get the right?
Rating:5/10
Remark:
It is typically chinese spirit to inject chinese behaviours in the movie. It is all jeers, jokes, and, zero wits. It will be simple and relaxing movie for people who like to play poker.
The Marine 2 (Hollywood Movie 2009)
Synopsis:
WWE-sponsered movie starts with an action packed story, where a husband, Joe, who work as the marine, is trying to save his wife, Lina from terroists. The terrorists are trying to take over a hotel that is built by a American millionaire. They do not like how westerners interfere the life of their island. Can Joe save his wife, Lina?
Rating:6/10
Remark:
It is average movie.
MW (Japanese Movie 2009)
Synopsis:
United State has a factory in a small-sized island at Japan, producing chemical weapon, MW. There is chemical leakage from that factory. As a result, some people, who live in that island, were affected. Therefore, to clean up this matter, the military had to kill all the people who live in that island. Japanese government did not objected. However, only two people, both of them are children, escaped. When both children turn into adults, one of them wants to take revenge on the masterminds. How shall one of them has his own revenge?
Rating:8/10
Remark:
It is excellent movie that mix the action and wits elements. It is worth to watch.
Saru Lock (Japanese Drama 2009)
Synopsis:
Saru is the Japanese word for monkey. Saru's father left Saru when Saru was young. In Saru's adult age, he work as locksmith, picking the locks for his customers. At the same time, he watch porn in hope that he lose his virgin. There are five different stories how Saru use his locksmith trade for his adventure as a good-natured person.
Rating:8/10
Remark:
It is very fine drama for people who are in the age of 20s. It seems that Saru Lock drama is somewhat adopted from manga. By the way, at the end of the drama, Saru Lock the movie is slated to show in February 2010. I am waiting for this movie. Meanwhile, you guys should check it out.
Tony Del Piero wrote and posted at at 11:05 am
