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Investment
I bought Segro PLC at 200 pence per share at 9 January 2012 and sold Segro PLC at 369.50 pence per share on 30 May 2014. Including dividends and transaction cost, the profit of Segro PLC investment is approximately +100.5%.
One day, I was reading Third Avenue Management LLC’s annual letter – after all, I respected and used the work of Martin Whitman, the founder of Third Avenue Management LLC. I notice that Third Avenue Management LLC recently bought Segro PLC (in 2012). Since I was bullish in office-based REIT stocks during 2011-2012, I check it out and liked it although it has huge portfolio of industrial warehouses. Clearly, its properties in London and Europe, and its ability to collect rental income from these properties are heavily discounted by Mr Market. With huge defense (large margin of safety on net asset value basis) and slow-paced attack (slow, persistent earning power recovery), we were bound to make a lot of profit in this stock.
With respect to slow,
persistent earning power recovery, Segro PLC appointed current CEO, who used to
be Finance Director at Segro PLC, in April 2011. His strategy is to sell
non-core properties that are not part of the strategy and buy properties that
meet the requirements. All you need to give Segro PLC time to restore its
earning power as CEO is shaping Segro PLC into income focused REIT.
It is much easier to
estimate intrinsic value based on net asset value basis and hard to estimate
intrinsic value based on earning power. Clearly, it has crossed the intrinsic
value based on net asset value basis. The range of my estimated intrinsic value
based on earning power is very wide. Therefore, it is good opportunity for us
to sell it with the reason of downsizing my portfolio.
Books
Title: The Practice of Management
Author: Peter F. Drucker
Rating:9/10
Remark: I bought this book circa 6 years ago. I read this book this month and was impressed with the clarity of the need to question the quality of the functions of the company in terms of management. Management can be a catchall variable in any investment formula. That is why we need to understand whether the management of the company is doing the right things in the right direction. It is not a book that it tells you all the answers. Rather, it is the book that brings you the awareness of what questions we need to think of in order to achieve the targets as a manager.
Title: The Emperors of Chocolate Inside the Secret World of Hershey and Mars
Author: Joel Glenn Brenner
Rating: 9/10
Remark: One mark loss is due to the abrupt closure of the book that reduce the joy of reading. Despite of that, it is very interesting to read the actual history of Hershey and Mars. Great deal of performance management and quality management in action. I highly recommend this book to anyone who is interested to learn more about chocolate manufacturing industry.
Title: Japanization: What the World Can Learn From Japan's Lost Decades
Author: William Pesek:
Rating:7/10
Remark: It is fine book which tells you more about Japan's progress of the application of Abe's three arrows. I read this book because I have two significant positions in two Japanese stocks in my portfolio. Despite of the author's mild view on Japanese government's action, I am comfortable with slow progress of changing Japanese corporate culture.
Movies and Dramas
American Hustle (Hollywood Movie 2014)
Synopsis:
A conman finds a female partner to work with so as to con desperate people to pay small admin fee for large denominator certificate of deposits for their further business. However, a small-time FBI officer caught them and force them to provide big names 'criminal'. Apparently, it adopt some real-life acts in this movie. How will the conman get out of that FBI officer's hand?
Rating: 9/10
Remark: It is well told story.
Space Pirate Captain Harlock (Japanese Animation Movie 2013)
Synopsis:
Captain Harlock wants to undo his mistake onto his loved planet, Earth. However, Gaia empire prevents him to do so as its opinion is different from his. However, the truth on the Earth is something different from their expectation.
Rating:8/10
Remark: Although 3D animation is sucky, the storyline is beautiful!
Frozen (Hollywood Animation Movie 2013)
Synopsis:
The elder sister was playing with her younger sister with her ice magic. However, there is accident on her younger sister. Fortunately, the younger sister recovered with the help of troll elder. However there is a curse on the elder sister, such that she cannot control fast growing ice magic power. How shall she deal it when she grows to be adult, the next queen?
Rating:8/10
Remark: Nice story.
Shinzanmono ~ Nemuri no Mori SP (Japanese Movie 2013)
Synopsis:
Kaga Kyoichiro received a call from his division head to investigate a murder case. It was taken place in a training place where professional ballets train for the shows. As usual, he slowly peels off the slices of the 'onions' - questioning irrelevant and relevant questions to most members of the ballet team. Who is exactly the murderer?
Rating:8/10
Remark: It is slow paced story with clever twists such that you can never guess who the murderer is.
The Wolf of Wall Street (Hollywood Movie 2013)
Synopsis:
It is about a life of a man, Jordan Belfort, who builds his wealth by working in Wall Street.
Rating: 9/10
Remark: Don't expect exciting investment scenarios in this movie. I rate this high because it is very entertaining show. In addition, I feel that it is all about glorified salesman show. Gosh, it is almost real life story since Jordan Belfort exists and really did them.
Team Batista 4: Raden Meikyu (Japanese Drama 2014)
Synopsis:
Keisuke Shiratori received a unknown letter saying that someone is caged in the hospital and cannot get out. Coincidentally, Kohei Taguchi is transferred to that hospital, which Shiratori wants to investigate. As usual, they work together as a investigation team to find out. At the same time, murders occur in region where that hospital is located at. That hospital is specialized for end-of-life care.
Rating: 8/10
Remark: The author of this story really has thought well to pass pros and cons of euthanasia. That will get Japanese people to start debating about it. Well done!
The Pirate Fairy (Hollywood Movie 2014)
Synopsis:
Dust-keeper fairy, Zarina, is so curious to know everything about the process that all fairies must do in order to maintain the order in the forest they live in. Unfortunately, she was 'expel' for her curiosity. Being frustrated, she went on the adventure, becoming pirate somehow. Will her curiosity be answered by her adventures?
Rating:7/10
Remark: It tells the story who your true friends are.
The Hobbit The Desolation of Smaug (Hollywood Movie 2013)
Synopsis:
It is second part of the movie, starting with how Hobbit do the part of burglar which is cited by the Gandalf to the future king of dwarves.
Rating:8/10
Remark: Solid storyline. Great graphics.
47 Ronin (Hollywood Movie 2013)
Synopsis:
It is about Japanese folktale how 47 wanderers take revenge for their lord.
Rating:7/10
Remark: Decent story.
The Secret Life of Walter Mitty (Hollywood Movie 2013)
Synopsis:
Walter Mitty has been zoned out for a while - in fact, he is dreaming. One day, he was thrown to the challenge. It is to find photographer for the missing negative photo for upcoming magazine print. Since then, he has stop day-dreaming.
Rating:7/10
Remark: Cool bottom line - stop dreaming and start doing the things you want to do so!
Reasonable Doubt (Hollywood Movie 2014)
Synopsis:
Mitch, prosecutor, decide to cover up a tiny car accident because it may, somehow, ruin his bright future. However, he discovered that the victim of above mentioned accident is about to be murdered by someone else. Who is the actual murderer?
Rating:7/10
Remark: Decent show.
Robocop (Hollywood Movie 2014)
Synopsis:
It is the story of how Robocop is born. A corporation that specializes in building robots wants to have majority of the senators to repeal the act that prevent robots to be used as police.
Rating:7/10
Remark: Nothing special.
As The Light Goes Out (Hong Kong Movie 2014)
Synopsis:
The firemen are trying their best to keep Hong Kong free from fire. At the scene of the incident, they wanted to do beyond their duties by spraying the water on the ground which is near to the fire incident. The head of the station stopped them and asked them to return back to the station.
Rating: 8/10
Remark: Very touching story. Nicholas Tse has improved his acting a lot even though he has best actor award under his belt.
Lego Movie (Hollywood Movie 2014)
Synopsis:
The kid is telling a story with Lego toys while his dad is working outside the home.
Rating:8/10
Remark: Very original story and refreshing actions.
Non-Stop (Hollywood Movie 2014)
Synopsis:
A federal marshall was assigned to protect the plane that fly from USA to London. During the flight, he received strange texts on his phone - they appear to be threatening. He wants to know who the culprit is.
Rating:8/10
Remark: Very good action movie with fresh storyline.
Genome Hazard (Japanese-Korean Movie 2013)
Synopsis:
One day, a Japanese painter suddenly began losing his memory of his own identity while he faced attackers who want to take him to his boss. What will he do?
Rating:7/10
Remark: Interesting story but slow pace of action. I watched it on the flight to Japan.
Hunter × Hunter: The Last Mission (Japanese Animation Movie 2013)
Synopsis:
The head of the Hunter association exterminated the dark side when he was young man. But the head of the dark side came to alive in few decades later and he is set to kill whole hunters including the head of the Hunter association. How will the main character, Gon save them?
Rating:7/10
Remark: I watched it on the flight back to Japan from USA. I think it is slow paced movie.
Judge! (Japanese Movie 2014)
Synopsis:
The head of advertising in advertising firm did not want to participate as judge for international advertising competition. It is because his firm was bribed to let lousy advertisement be picked. As a result, he picked unpopular guy to pretend to be him as a judge.
Rating: 6/10
Remark: The flight classify this as comedy. I am not sure it is really comedy or I don't understand Japanese way of telling comedy story.
Tony Del Piero wrote and posted at at 10:08 pm
