Business Quotes To Motivate Us
“Entrepreneurs are people who dare to do things which others think are impossible to accomplish,” Kenny Yap
“For more people to become entrepreneurs, we have to change our attitude towards those who fail.” Lee Kuan Yew
“Businessmen fish in troubled waters. When the sea looks very calm, you are unlikely to catch fish. But when you see trouble on the water, then you should fish there because the big fish are driving the small fish up to the surface….In every crisis, big fortunes are made.” Robert Kuok Hock Nien
“It is during hard and suffering times that we learned a lot. I learned to be a bill collector, a supermarket guard…I learned to be everything. When times are good, we don’t really feel the need to do extraordinary, therefore we learn less.” Datuk Maznah Hamid
“I have never been poor, only broke. Being poor is a frame of mind. Being broke is only a temporary situation.” Mike Todd
“What people see of my success is only one percent but what they don’t see is the 99 percent which are my failures.” Soichiro Honda
“Opportunities of all sorts abound in troubled times….good times are good but bad times are still better.” Konosuke Matsushita
“Prefer a loss to a dishonest gain; the one brings pain at the moment, the other for all time.” Chilton
Saturday, February 28, 2009
You Can Make Your Child A Millionaire
The Power Of Compound Interest
Do you know that you can make yourself or your child a millionaire by following a simple rule of saving? Of course you can if you follow a strict saving scheme, after all Albert Einstein once said, “Compound interest is the eighth wonder of the world”.
The power of compound interest is so powerful that even it is considered as the eighth wonder of the world.
If you invest just RM1,200 a year for 40 years, at an interest rate of 10% per annum, your money will bring in an accumulated interest of RM589,678. Total value at the end of 40 years is RM636,678.
You may ask what investment vehicle gives a consistent 10% interest per annum. The answer to this is to invest in unit trust. Public Index Fund, Public Saving Fund and Public Industry Fund of Public Mutual Berhad gives an average annual return of more than 20% for the past 10 years.
As a parent we should start saving for our children. If you invest RM1,200 per year for your child starting when he is 2 years old, he will receive RM636,678 by the time he reaches 42. If he leaves his investment until his retirement age, he should be getting more than RM1 million. Of course your child can continue saving after finishing university when he starts working. This will relieve you a lot. In this case you only save for him for 22 years and the balance 18 years is by your child.
If you invest in unit trust that gives an average return of more than 20%, the value of investing the same amount for 40 years will be doubled to RM1.27 million.
Invest now for tomorrow’s good life. Warren Buffett said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Do you know that you can make yourself or your child a millionaire by following a simple rule of saving? Of course you can if you follow a strict saving scheme, after all Albert Einstein once said, “Compound interest is the eighth wonder of the world”.
The power of compound interest is so powerful that even it is considered as the eighth wonder of the world.
If you invest just RM1,200 a year for 40 years, at an interest rate of 10% per annum, your money will bring in an accumulated interest of RM589,678. Total value at the end of 40 years is RM636,678.
You may ask what investment vehicle gives a consistent 10% interest per annum. The answer to this is to invest in unit trust. Public Index Fund, Public Saving Fund and Public Industry Fund of Public Mutual Berhad gives an average annual return of more than 20% for the past 10 years.
As a parent we should start saving for our children. If you invest RM1,200 per year for your child starting when he is 2 years old, he will receive RM636,678 by the time he reaches 42. If he leaves his investment until his retirement age, he should be getting more than RM1 million. Of course your child can continue saving after finishing university when he starts working. This will relieve you a lot. In this case you only save for him for 22 years and the balance 18 years is by your child.
If you invest in unit trust that gives an average return of more than 20%, the value of investing the same amount for 40 years will be doubled to RM1.27 million.
Invest now for tomorrow’s good life. Warren Buffett said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Friday, February 27, 2009
Learn Investment The Benjamin Graham Way
The Intelligent Investor- Benjamin Graham
Born as Benjamin Grossbaum on 9th May 1894 in London. His father was dealer in China dishes and figurines. They have maid, cook and a French governess. His father died in 1903 and family went into poverty. Graham won a scholarship at Columbia. Graduated in 1914, second in class. He was 20 years old. Join Wall Street as a clerk, instead of academia.
Henry David Thoreau, Walden, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them”.
“All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room.” Blaise Pascal.
Graham’s definition of investment as “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return”.
3 elements of investing:
you must throughtly analyse a company, the soundness of its underlying businesses
you must protect yourself against serious losses
you must aspire to “adequate”, not extraordinary, performance.
An investor calculates what a stock is worth, based on the value of its business. A speculator gambles that a stock will go up in the price because somebody else will pay even more for it.
Henny Youngman talked about inflation, “Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of groceries. Today, a five year-old can do it.”
REITs are companies that own and collect rent from commercial and residential properties. Good inflation fighters.
An intelligent investor must never forecast the future exclusively by extrapolating the past.
The value of any investment is, and always must be, a function of the price you pay for it. He price the investor should be willing to pay for stocks must not be finite. The higher they go, the harder they fall. There must be a limit to optimism.
On 24th March 2000, US stock market peaked at USD14.75 trillion. By 9th October 2002, it is worth USD7.34 trillion, a loss of 50.2%.
General notion is that the rate of return depends on the degree of risk you are willing to take. However, intelligent investor rate of return depends rather on the amount of intelligent effort the investor is willing and able to bring to bear on his risk. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligent and skill.
No intelligent investor no matter how starved for yield would ever buy a stock for dividend income alone; the company and its business must be solid, and its stock price must be reasonable.
“Human felicity is produced not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day.” Benjamin Franklin.
Graham insistence that how defensive you should be depends less on your tolerance for risk that on your willingness to put time and energy into your portfolio.
Lynch’s rule – “You can outperform the experts of you use your edge by investing in companies or industries you already understand”
“It requires a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.: Nathan Mayer Rothschild.
A great company is not a great investment if you pay too much for the stock. Growth stock are worth buying when the prices are reasonable, but when their price earning ratios go much above 25 or 30 the odds get ugly.
“The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts.” Marcus Aurelius.
Graham’s image of Mr Market……when stock is going up, he happily pays more than their objective value; and when they are going down, he is desperate to dump them for less than their true value.
Our brains are hardwired to get us into investing trouble; humans are pattern-seeking animals. Neuroscience shows that our brains are designed to perceive trends even where they might not exist. After an event occurs just two or three times in a row, regions of the human brain called the anterior cingulated and nucleus accumbens automatically anticipate that it will happen again. If it does repeat, a natural chemical called dopamine is released, flooding your brain with a soft euphoria.
But when stocks drop, the financial loss fires up your amygdale- the part of the brain that processes fear and anxiety and generates the famous “fight or flight” response that is common to all cornered animals. You can’t help feeling fearfull when stock prices are plunging.
http://tinyurl.com/mathtoolbox
Born as Benjamin Grossbaum on 9th May 1894 in London. His father was dealer in China dishes and figurines. They have maid, cook and a French governess. His father died in 1903 and family went into poverty. Graham won a scholarship at Columbia. Graduated in 1914, second in class. He was 20 years old. Join Wall Street as a clerk, instead of academia.
Henry David Thoreau, Walden, “If you have built castles in the air, your work need not be lost; that is where they should be. Now put the foundations under them”.
“All of human unhappiness comes from one single thing: not knowing how to remain at rest in a room.” Blaise Pascal.
Graham’s definition of investment as “An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return”.
3 elements of investing:
you must throughtly analyse a company, the soundness of its underlying businesses
you must protect yourself against serious losses
you must aspire to “adequate”, not extraordinary, performance.
An investor calculates what a stock is worth, based on the value of its business. A speculator gambles that a stock will go up in the price because somebody else will pay even more for it.
Henny Youngman talked about inflation, “Americans are getting stronger. Twenty years ago, it took two people to carry ten dollars worth of groceries. Today, a five year-old can do it.”
REITs are companies that own and collect rent from commercial and residential properties. Good inflation fighters.
An intelligent investor must never forecast the future exclusively by extrapolating the past.
The value of any investment is, and always must be, a function of the price you pay for it. He price the investor should be willing to pay for stocks must not be finite. The higher they go, the harder they fall. There must be a limit to optimism.
On 24th March 2000, US stock market peaked at USD14.75 trillion. By 9th October 2002, it is worth USD7.34 trillion, a loss of 50.2%.
General notion is that the rate of return depends on the degree of risk you are willing to take. However, intelligent investor rate of return depends rather on the amount of intelligent effort the investor is willing and able to bring to bear on his risk. The maximum return would be realized by the alert and enterprising investor who exercises maximum intelligent and skill.
No intelligent investor no matter how starved for yield would ever buy a stock for dividend income alone; the company and its business must be solid, and its stock price must be reasonable.
“Human felicity is produced not so much by great pieces of good fortune that seldom happen, as by little advantages that occur every day.” Benjamin Franklin.
Graham insistence that how defensive you should be depends less on your tolerance for risk that on your willingness to put time and energy into your portfolio.
Lynch’s rule – “You can outperform the experts of you use your edge by investing in companies or industries you already understand”
“It requires a great deal of boldness and a great deal of caution to make a great fortune; and when you have got it, it requires ten times as much wit to keep it.: Nathan Mayer Rothschild.
A great company is not a great investment if you pay too much for the stock. Growth stock are worth buying when the prices are reasonable, but when their price earning ratios go much above 25 or 30 the odds get ugly.
“The happiness of those who want to be popular depends on others; the happiness of those who seek pleasure fluctuates with moods outside their control; but the happiness of the wise grows out of their own free acts.” Marcus Aurelius.
Graham’s image of Mr Market……when stock is going up, he happily pays more than their objective value; and when they are going down, he is desperate to dump them for less than their true value.
Our brains are hardwired to get us into investing trouble; humans are pattern-seeking animals. Neuroscience shows that our brains are designed to perceive trends even where they might not exist. After an event occurs just two or three times in a row, regions of the human brain called the anterior cingulated and nucleus accumbens automatically anticipate that it will happen again. If it does repeat, a natural chemical called dopamine is released, flooding your brain with a soft euphoria.
But when stocks drop, the financial loss fires up your amygdale- the part of the brain that processes fear and anxiety and generates the famous “fight or flight” response that is common to all cornered animals. You can’t help feeling fearfull when stock prices are plunging.
http://tinyurl.com/mathtoolbox
Saturday, February 21, 2009
How To Be Rich ( Article By Thomas & William )
As explained in the book The Millionaire Next Door by Thomas J. Stanley and William D. Danko, personal finance has as much to do with people's traits as it does with money. Many millionaires, in fact, have frugal ways.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
1. Patience
Patience is one of the most important traits when it comes to saving money.
This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.
Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
2. Satisfaction
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.
People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.
3. Organization
Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.
It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
4. Discipline
You need the discipline to continue to save money for specific, long-term goals every month.
Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
5. Reflectiveness
It's important to be able to look at your financial decisions and reflect on their results.
You're going to make financial mistakes. Everyone does.
The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
6. Creativity
The economy and our earnings don't always match our expectations.
Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.
Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.
In these ways, creativity plays a large role in keeping finances in order.
7. Curiosity
Having curiosity helps you learn, study and improve yourself.
The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
8. Risk-Taking
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.
The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
9. Goal-Oriented
The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.
Those who lack goals don't have a road map to take them to the financial destination they want.
10. Hard- and Smart-Working:
Creating wealth and staying out of debt rarely comes about without a lot of hard work.
Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.
You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.
Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
Understanding how personal traits can influence your finances is an essential ingredient for building wealth.
Here are 10 key traits:
1. Patience
Patience is one of the most important traits when it comes to saving money.
This means waiting until the first wave of product hype has passed, keeping a car for an extra few years before getting another one and waiting until something you want fits into your budget instead of putting it on credit.
Patience is often the difference between creating savings and being in debt. Having the patience to wait until you find a good deal is a cornerstone of good finances.
2. Satisfaction
When you're satisfied, there is no reason to spend money on nonessentials. The sole purpose of commercials is to make you believe that buying a product or service will make you happier, wealthier, better looking or improve whatever isn't bringing you satisfaction.
People spend because they want to capture the excitement shown in advertisements. When you are satisfied with what you have and your life (not trying to live like those on TV), your finances will be in a lot better shape.
3. Organization
Being organized can make you more productive and ensure that all the many issues pertaining to personal finances are addressed.
It means not paying late fees, not buying two of everything, knowing deadlines that can affect your finances and getting more done in less time. All these can greatly benefit your finances.
4. Discipline
You need the discipline to continue to save money for specific, long-term goals every month.
Personal finance isn't a way to get rich quick, but is a disciplined execution of your lifetime plans.
5. Reflectiveness
It's important to be able to look at your financial decisions and reflect on their results.
You're going to make financial mistakes. Everyone does.
The key is to learn from those mistakes so you don't make them again, or recognize if you keep repeating them.
6. Creativity
The economy and our earnings don't always match our expectations.
Unexpected developments wreak havoc to elaborate financial plans. When this happens, changes are needed to deal with the new circumstances. Creativity is essential to accomplish this.
Creativity allows you to make something last longer rather than purchasing it when you don't have the money. It means juggling money to stay out of debt rather than simply paying with a credit card. It means finding a cheaper alternative when money is tight.
In these ways, creativity plays a large role in keeping finances in order.
7. Curiosity
Having curiosity helps you learn, study and improve yourself.
The curiosity of wanting to know more, to take the time to study and then take what is learned and put into practice is an important process that is driven by curiosity.
8. Risk-Taking
To build wealth, one needs to be willing to take risks. This doesn't mean uncalculated risks. It means weighing all the options and taking calculated risks when appropriate.
The stock market has risks involved, but over the long term, history shows that it provides good returns on money that is invested wisely. Those who fear risk altogether end up saving money in accounts that likely lose money to inflation in the long run.
9. Goal-Oriented
The importance of setting and working toward goals is obvious. If you don't know where you are going, it's difficult to get there. It helps your personal finances immensely if you have money goals and are motivated to reach the goals that you have set for yourself.
Those who lack goals don't have a road map to take them to the financial destination they want.
10. Hard- and Smart-Working:
Creating wealth and staying out of debt rarely comes about without a lot of hard work.
Many people might hope that the lottery will solve all their financial problems. The true path to financial freedom, however, is to work hard to earn money while educating yourself to continue to have more value and increase your salary.
You may not possess all of the above traits. But knowing them can help you make changes so that you nourish the ones that you have and obtain the ones you're missing.
Ultimately they will help you with your personal finances and create a plan to accumulate the wealth you desire.
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