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Archive for April 2010

40,000 to attend billionaire Buffett’s company annual meeting

30 April 2010 Tinggalkan komen

Siapa yg tak kenal Warren Buffett. Tahun ni pastinya rekod baru bila dianggarkan seramai 40,000 org akan hadir dlm AGM syarikat Berkshire.

Petikan drp StarBiz:

OMAHA, Nebraska: The throng of people attending Berkshire Hathaway’s annual meeting on Saturday will surely grow again this year in the wake of the company’s first stock split and its acquisition of the nation’s second-largest railroad.

The event’s main attraction of listening to billionaires Warren Buffett and Charlie Munger share their value-oriented views hasn’t changed.

But shareholders also are likely to ask tough questions about Berkshire’s investment in Goldman Sachs, its position on proposed derivatives regulation and the economy, in addition to their perennial inquiries about the future of Berkshire after the two men depart.

“It’s going to be big. I’m sure it’ll be a record,” Buffett said about the crowd.

The AP headline said ‘Berkshire’s annual meeting to draw roughly 40,000’.

Berkshire’s Chairman and CEO declined to discuss any possible discussion topics ahead of the May 1 meeting.

Buffett’s investment bank of choice, Goldman Sachs, is facing civil fraud charges and scrutiny in Congressional hearings.

Berkshire holds a significant stake in Goldman, and Buffett has praised the company’s performance during the Great Recession, so he’s sure to face questions about it.

Berkshire bought US$5 billion worth of Goldman Sachs preferred shares in the fall of 2008 in exchange for 10 percent interest and warrants to convert those shares into common stock at $115 per share anytime up to the fall of 2013.

Goldman shares were selling for about $160 Thursday.

Shareholder Howard Alter said he’ll be interested to hear what Buffett thinks about Goldman, but he’s comfortable with the deal because of its favorable terms and because the Goldman shares can be sold anytime.

“It does look like a very smart investment,” said Alter, who is managing partner of New Jersey investment firm Roundview Capital.

Berkshire also has been in the headlines for its role in Congressional discussions about financial reform legislation and proposed rules for derivatives.

It’s not clear exactly what role Berkshire has played, but Nebraska Sen. Ben Nelson opposed a version of the reform bill that would have applied new rules retroactively to existing derivative contracts because of concerns he was hearing from Nebraska businessmen.

If the new regulations were retroactive, Berkshire might have to post additional collateral on its derivative portfolio, which helped Buffett’s company generate a $787 million gain on investments in 2009.

That’s up from a $7.5 billion investment loss that Berkshire recorded in 2008.

Most of Berkshire’s roughly 100 derivatives operate similar to insurance policies.

Some of them cover whether certain stock market indexes will be lower 15 or 20 years in the future.

Others cover credit losses at groups of 100 companies, and some cover credit risks of individual companies.

Over the past year, Berkshire completed its biggest acquisition ever with the $26.7 billion purchase of the Burlington Northern Santa Fe railroad, and the company finally joined the S&P 500 index after it split its Class B shares 50-for-1, making the stock more affordable and tradable.

Both those events are expected to boost the size of the crowd at the Qwest Center Omaha arena to about 40,000 this year.

“There’s got to be some new shareholders who are very excited to see what this is about,” said Andy Kilpatrick, the stockbroker-author of “Of Permanent Value, the Story of Warren Buffett.”

“And with the B’s I think that makes more shareholders and you may get a little bit younger, more excited crowd.”

Kilpatrick predicted Buffett will find a way to showcase the BNSF acquisition at the meeting, but the exhibit hall also will be filled with displays selling products from several of Berkshire’s more than 80 subsidiaries.

Full details of what Burlington Northern means to Berkshire may have to wait until the week after the annual meeting when the company’s first-quarter earnings report is released on May 7.

Berkshire owns clothing, furniture, jewelry, utility and corporate jet firms, but its insurance businesses accounted for nearly one-third of the company’s profit in 2009.

The collection of different businesses gives Buffett insight into the health of the overall economy.

Several of Berkshire’s subsidiaries, like Acme Brick and Shaw Carpet, are linked to the housing market so they have been slow to rebound even though the economy has begun to recover.

Their businesses may accelerate now that the housing market is showing signs of life.

“Things have started to pick up lately in ways that are more meaningful to Berkshire subsidiaries,” Morningstar analyst Bill Bergman said.

Succession is always a concern for Berkshire shareholders because of 79-year-old Buffett’s and 86-year-old Munger’s ages, although both men appear to be in good health and haven’t announced plans to retire.

“Based on Buffett’s moves over the past few years, he still seems to be in his prime,” Alter said.

Buffett has said the plan to replace him includes splitting his job into three parts – chief executive officer, chief investment officer and chairman.

But he hasn’t identified the candidates for the CEO and chief investment officer posts. Buffett’s son, Howard, is slated to succeed him as chairman.

OMAHA, Nebraska: The throng of people attending Berkshire Hathaway’s annual meeting on Saturday will surely grow again this year in the wake of the company’s first stock split and its acquisition of the nation’s second-largest railroad.

The event’s main attraction of listening to billionaires Warren Buffett and Charlie Munger share their value-oriented views hasn’t changed.

But shareholders also are likely to ask tough questions about Berkshire’s investment in Goldman Sachs, its position on proposed derivatives regulation and the economy, in addition to their perennial inquiries about the future of Berkshire after the two men depart.

“It’s going to be big. I’m sure it’ll be a record,” Buffett said about the crowd.

The AP headline said ‘Berkshire’s annual meeting to draw roughly 40,000’.

Berkshire’s Chairman and CEO declined to discuss any possible discussion topics ahead of the May 1 meeting.

Buffett’s investment bank of choice, Goldman Sachs, is facing civil fraud charges and scrutiny in Congressional hearings.

Berkshire holds a significant stake in Goldman, and Buffett has praised the company’s performance during the Great Recession, so he’s sure to face questions about it.

Berkshire bought US$5 billion worth of Goldman Sachs preferred shares in the fall of 2008 in exchange for 10 percent interest and warrants to convert those shares into common stock at $115 per share anytime up to the fall of 2013.

Goldman shares were selling for about $160 Thursday.

Shareholder Howard Alter said he’ll be interested to hear what Buffett thinks about Goldman, but he’s comfortable with the deal because of its favorable terms and because the Goldman shares can be sold anytime.

“It does look like a very smart investment,” said Alter, who is managing partner of New Jersey investment firm Roundview Capital.

Berkshire also has been in the headlines for its role in Congressional discussions about financial reform legislation and proposed rules for derivatives.

It’s not clear exactly what role Berkshire has played, but Nebraska Sen. Ben Nelson opposed a version of the reform bill that would have applied new rules retroactively to existing derivative contracts because of concerns he was hearing from Nebraska businessmen.

If the new regulations were retroactive, Berkshire might have to post additional collateral on its derivative portfolio, which helped Buffett’s company generate a $787 million gain on investments in 2009.

That’s up from a $7.5 billion investment loss that Berkshire recorded in 2008.

Most of Berkshire’s roughly 100 derivatives operate similar to insurance policies.

Some of them cover whether certain stock market indexes will be lower 15 or 20 years in the future.

Others cover credit losses at groups of 100 companies, and some cover credit risks of individual companies.

Over the past year, Berkshire completed its biggest acquisition ever with the $26.7 billion purchase of the Burlington Northern Santa Fe railroad, and the company finally joined the S&P 500 index after it split its Class B shares 50-for-1, making the stock more affordable and tradable.

Both those events are expected to boost the size of the crowd at the Qwest Center Omaha arena to about 40,000 this year.

“There’s got to be some new shareholders who are very excited to see what this is about,” said Andy Kilpatrick, the stockbroker-author of “Of Permanent Value, the Story of Warren Buffett.”

“And with the B’s I think that makes more shareholders and you may get a little bit younger, more excited crowd.”

Kilpatrick predicted Buffett will find a way to showcase the BNSF acquisition at the meeting, but the exhibit hall also will be filled with displays selling products from several of Berkshire’s more than 80 subsidiaries.

Full details of what Burlington Northern means to Berkshire may have to wait until the week after the annual meeting when the company’s first-quarter earnings report is released on May 7.

Berkshire owns clothing, furniture, jewelry, utility and corporate jet firms, but its insurance businesses accounted for nearly one-third of the company’s profit in 2009.

The collection of different businesses gives Buffett insight into the health of the overall economy.

Several of Berkshire’s subsidiaries, like Acme Brick and Shaw Carpet, are linked to the housing market so they have been slow to rebound even though the economy has begun to recover.

Their businesses may accelerate now that the housing market is showing signs of life.

“Things have started to pick up lately in ways that are more meaningful to Berkshire subsidiaries,” Morningstar analyst Bill Bergman said.

Succession is always a concern for Berkshire shareholders because of 79-year-old Buffett’s and 86-year-old Munger’s ages, although both men appear to be in good health and haven’t announced plans to retire.

“Based on Buffett’s moves over the past few years, he still seems to be in his prime,” Alter said.

Buffett has said the plan to replace him includes splitting his job into three parts – chief executive officer, chief investment officer and chairman.

But he hasn’t identified the candidates for the CEO and chief investment officer posts. Buffett’s son, Howard, is slated to succeed him as chairman.

Kategori:Pelaburan, Saham

Will China crash economically?

29 April 2010 Tinggalkan komen

Artikel yg ditulis oleh Tan Teng Boo (CEO icapital.biz). Beliau adalah antara pelabur ekuiti Malaysia yg sangat berjaya. Disini beliau menulis tentang China yg asyik kena belasah oleh Barat. Sedangkan ada negara di sana yg lebih banyak menyumbang kpd keadaan ekonomi yg kurang memberangsangkan ketika ini.

Taken from StarBiz:

CHINA bashing by now must surely be the most popular sport among Western investors, mass media and institutions. China crashing now, China crashing a few years later, China crashing anytime and crashing forever is the mantra.

A mantra is like a hymn. If you chant it endlessly and repeatedly, it gets stuck in one’s head. However, the fact that it may get stuck in one’s head does not mean that it will happen or that it represents the reality.

In fact, a mantra based on superfluous analysis or worse, an inherent bias, would block the real realities from surfacing. An objective analysis of the global economic conditions would show that this is what is actually happening.

With all the high profile, high publicity given to China bashing, all eyes are centred on China in general and its property sector in particular. Will China crash? When will China crash? i Capital’s managing director gets these questions all the time.

In contrast to all the dire predictions about China, i Capital expects China’s economy to nicely soft land this year. When the Lehman Panic broke out in September 2008, and almost collapsed the world economy, China was ahead of every other economy in implementing economic expansion measures.

China very quickly bottomed out and pulled the global economy out of its worst conditions (which, of course, no Western country has given China any credit). While the US led the world economy into possibly the worst recession in a long time, China and the rest of Asia quickly pulled the world economy out of a US-created catastrophe (see charts).

As China’s economy recovered quickly and strongly, the Chinese government has subsequently acted very quickly and effectively again. Measures to cool the hot property sector down have already been announced months ago.

China’s government is ahead of the property “bubblet” curve. However, it takes time for the impact to be felt, which is expected to take place in the coming months.

Selected segments of the property sector will cool down but the rest of the economy will still be performing well. China’s economy is huge and a cooling of the property sector will not crash the continental economy.

The decision by The People’s Bank of China not to raise interest rates so far is correct. Why kill the rest of the economy when there is no need to? There are many other effective ways to tackle the property “bubblet”, especially when the cause of the rise in property prices is not low interest rates.

Another unnoticed development that favours China soft-landing this year is that the current global economic recovery is not synchronised. The recovery in the United States is behind that of China and the rest of Asia but it is gathering momentum.

The growth in US exports and the recovery in the industrial sector have led the US recovery. Consumer spending is also recovering and will gather momentum as the US job market improves further. The US housing sector is also expected to contribute positively this year.

As 2010 progresses, the US economic recovery will play a greater role in global economic growth. This is ideal, as it will allow China to turn to other economic sectors for growth while it tackles its property bubblet.

In short, as the US economic recovery gathers momentum in 2010, China’s GDP growth would slow to a healthy, high single-digit rate.

Based on the economic outlook of the United States and China, i Capital sees a benign global economy. Unlike 2006 or 2007, 2010 will see a healthy unsynchronised global recovery. This upbeat view can, of course, be turned topsy-turvy by unexpected events. There seems to be plenty nowadays.

One, while the currency pressure on China seems to have reduced somewhat, the United States is now cleverly turning to other countries and US-dominated global institutions to crack China’s position. Apparently, even India and Brazil are now joining in the bandwagon as prominently headlined on the front page of the Financial Times.

So, although the currency pressure cooker is not boiling over for now, the threat of a trade war needs close watching.

Is China crashing the real worry? Or is the eurozone breaking up the real worry? Actually, an economy that has crashed but that has not been described in this way is the eurozone a.k.a a continent of discontent.

First, it was the PIGS (Portugal, Ireland, Greece and Spain). The budget deficit for Iceland is 14.3%, Greece 13.6%, Spain 11.2%, Portugal 9.4% and China 2.2%. The China bashers say that China’s budget deficit is actually higher because it does not include the local governments. We wonder why the clever Greeks did not think of this simple trickery.

Anyway, the Greek civil servants are on strikes and the budget deficit is running at unsustainable levels. No wonder the Greek economy is not in a sustainable mode. This continent of 35-hour working week but with wages paid equivalent to 350-400 hours of work in China or India is declining fast, faster than what is generally realised or acknowledged.

Greece, supposedly the birthplace of democracy, has transformed itself into a “debtmocracy”. Will China crash, as we all are led to believe, or will Greece be the Sword of Damocles for the eurozone and thus the global economy?

Then, as if Greece et al is not enough, as if an evil spell has been cast on Europe, we all discovered that cash-starved Iceland is actually rich with ashes. Imagine Iceland, more than 1,800km away from London and more than 2,100km away from Germany, taking revenge on the eurozone. Who would imagine that?

The hiatus caused by the volcanic eruption is not small. That a volcano from Iceland is causing so much havoc in the eurozone is symbolic of the very difficult period that this fledgling economic bloc is undergoing.

Almost every economy in the eurozone, including that of the United Kingdom, is in trouble. As i Capital wrote above, this is the reality, this is what is actually happening.

China and the rest of Asia are not crashing. The United States crashed and the eurozone has crashed. Should the East follow the West?

i Capital does not think so although there are many out there who would want to see this happening.

Once again, we have to say, In China We Trust. As i Capital advised previously, “This decoupling is here to stay”.

Kategori:Pelaburan, Saham

Pulangan 8.2% bagi Dana PBIEF untuk 3 Bulan pertama 2010

19 April 2010 1 komen

Dana PB Islamic Equity Fund (PBIEF) memberikan pulangan 8.2%, bagi tempoh 3 bulan pertama (Jan – Mac) tahun 2010. Prestasi yg amat memberangsangkan. ASB kena tunggu setahun untuk dapat pulangan macam tu. Cuma perlu diakui, prestasi sekarang tidak menjamin prestasi dana ini pada masa depan. Sebab kena ikut mod pasaran saham semasa.

Kategori:Macam-macam

Untung Besar Pinjaman ASB (ASB Loan)

15 April 2010 14 comments

Setakat ini, pakej pinjaman ASB yg paling best ditawarkan oleh RHB. Ada 1 pakej tu, hanya perlu bayar interest sahaja utk 3 tahun pertama. Kemudian tahun ke-4 hingga ke-6, baru la buat bayaran spt biasa (termasuk principal).

Maknanya 3 tahun pertama, bayaran bulanan hanya sekita RM400 (interest sekarang 5.8%-1% = 4.8%), utk pinjaman RM100,000 (tempoh 20 tahun). Kalau kira Return On Investment (ROI), ini the best in the country. Sebab:

Jumlah Modal setahun: 400 x 12 = 4,800.

Dividen ASB 7%: 100,000 x 7% = 7,000.

Untung: 7,000 – 4,800 = 2,200.

Peratus pulangan: 2,200/4,800 * 100% = 45.8%

Wooo…macam mana tu. Pulangan 45.8%, mana lagi nak cari pulangan macam tu, di tempat lain. Siapa yg tak ambil ni, memag rugi la. Saya pulak, kurang nasib baik, kouta dah penuh. Kena tunggu loan sekarang ni abiss locking period, baru boleh tukar.

Kategori:Macam-macam