Which lifestyle do you choose Grade A, B, C?

I recently read this web article provided by my ex-Motorolan friend on lifestyle. Basically it discusses about the pros and cons of 3 categories of lifestyle in terms of income where:

Grade A: You live the Hollywood lifestyle. You own a business or highly paid. You are famous. People highly respect you. You can just drive your Beamer of Merc at the front of a 5 star hotel, the car jockey will come and give you a very bright smile and gladly handle your car while you walk in glamorously into the hotel with your wife dressed sparkling in diamonds by your side. You have it all, big house, big car, big vacations every year, maid, driver...you name it you can get it with a snap. BUT there's hardly any minute whereby you are at peace. You are constantly thinking about your business. How to solve the problems being faced, how to beat your competitors. Your handphone rings like every 20 mins whereby it's either your client, business partner, or someone screwed up in the company. You don't have much time for your kids although you can send them to the best school, tuition, dance class, piano class, swimming instructor. You expect your kids to be top in school. All As in the report card. Top Notch. They are probably as stressed up as you. You have time for them during weekends, weekdays you see them but unfortunately your mind is filled with business. This is Grade A lifestyle.

Grade B: You live in a medium size landed property in PJ/KL. You drive a Proton Waja. Your wife drives a Perodua Kelisa. Your combine income with your spouse is enough to cover the household expenses. Enough to pay the maid. Enough to pay the kids tuition. Enough to give parents some pocket money. Good enough to eat at nicely cooked dishes in well-known chinese open-air restaurants. Esquire Kitchen or Tai Thong once in a blue moon. However, lavish lifestyle is a no no to you and your family. Taboo words: Starbucks, Gucci, Dior, New car, Latest Playstation for your son, Latest Sony Ericsson handphone for your daughter, Chilis, Madam Kwans, Japanese buffet. In essence you think twice about spending on anything not necessary, and then think twice again when you are about to take out your wallet. BUT you work a 9am-7pm job everyday (sorry la, 9-5 jobs hardly exists anymore). After work you no longer need to think of your job. You can just switch it off and think about it tomorrow. You have time to play with your kids at night. Maybe watch some TV with them on your 21 inch TV or take them to McDonalds to get the latest Happy Meal disney toy in your Proton Waja. To some people, this is known as the rat race. Basically you are not so burdened but you will need to work your whole life. You have time for your kids but you won't do things like going for big holidays or playing games with your son on the latest PS on a 40 inch plasma TV. This is the Grade B lifestyle.


Grade C: Total freedom for your kids. You have no worries in your job really. As long as you do what your boss ask you, you can even go back at around 5pm. You are perhaps what people label you as a blue collar worker. You have a lot of time to play with your kids. BUT you struggle to provide for the family. Dinner is usually rice with lotsa vege but minimal meat. You drive an old car to work. No need to wash also, no worries. Kids don't go to tuition cause cannot afford. Your wife instead tries to guide them with their school work. You just provide for each day. Kids education and your retirement fund has never pass your mind. Perhaps you don't want to think about it either. This is the Grade C lifestyle.

Which one do you choose?

I have learned that life is an equation. You can't win all. Perhaps above average and you are comfortable but you can't reach at maximum level at all of them: Money, Time, Peace. (unless you are a decendant of Michael Jackson, Britney Spears, David Beckham, or any royalty)

Please click on the poll on your right to vote ->

Warren Buffet: Who is he?

Warren Buffet

There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

1. He bought his first share at age 11 and he now regrets that he started too late!

2. He bought a small farm at age 14 with savings from delivering newspapers.

3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4. He drives his own car everywhere and does not have a driver or security people around him.

5. He never travels by private jet, although he owns the world’s largest private jet company.

6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis.

He has given his CEO’s only two rules.
Rule number 1: do not lose any of your share holder’s money.
Rule number 2: Do not forget rule number 1.

7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.

8. Bill Gates, the world’s richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
His advice to young people: “Stay away from credit cards and invest in yourself and remember:

A. Money doesn’t create man but it is the man who created money.

B. Live your lives as simple as you are.

C. Don’t do what others say, just listen to them, but do what you feel good.

D. Don’t go on brand name; just wear those things in which you feel comfortable.

E. Don’t waste your money on unnecessary things; just spend on them who really in need rather.

F. After all it’s your life then why give chance to others to rule our life.”

The most ironic factor I find from this true hero is that he is the simplest yet richest man you ever want to be! The picture featured is none other than the great Fundamental Analyst Warren Buffet, who is the 2nd richest man in the world. Not very leng chai i know, but if you have half of his brains, you will be in your own private jet by now!

Investor basics: Fundamental Analysis vs. Technical Analysis

If you were to be listening to news or radio channels everyday which talks about investments, the term Fundamentals is frequently used by the financially incline people to evaluate stocks. You will hear something like "This stock has very good fundamentals, it's a good stock to go for" or "Looking at company XYZ strong fundamentals ...". So what does the term Fundmentals really mean in that context?

I have learned from http://www.investopedia.com/ that there are basically 2 genres of investing approach: Fundamental Analysis & Technical Analysis. By definition, Fundamental Analysis means looking at any data, besides the trading patterns of the stock itself, that can be expected to impact the price or perceived value of a stock. As the name implies, it means getting down to basics. And on the other hand, Technical Analysis means focussing only on the trading and price history of a stock, in essence the behaviour of the price fluctuations.

Confused?

Allow me to give you a simple day-to-day example:
Take for example a stock of a company which sells shoes for ladies. The fundamental analysis approach will be to study the company's annual performance. You will start by taking out the annual reports, studying its profits/loss, the assets and liabilities, how the management has been fairing and its strategies in managing its business. In short, you are evaluating its intrinsic value. The question you are really answering in this approach is "Is this stock of this company worth it based on its track performance and future?"

On the other hand, the Techinical Analysis for this approach will be to study the behaviour of the price fluctuations such as monitoring the price movement of the stock itself. You will be looking at its market activity which makes up of prices and volumes in general. Coming back to our example, a technical analysis will be to observe these questions "At which peak period do these ladies buy shoes?" , "When will the price of the shoes increase?" and "When is it most likely that they will have a sale to boost the sales which will in turn contribute to the stock price increase?" This approach has nothing to do with studying its reports, balance sheets, assets and liabilities, management skills or such. It's purely on the behaviour and price patterns.

In summary, Fundamental analysis approach is on the value of the stock in terms of its business structure, and Technical analysis approach is on the psychology of the stock itself which has no relation with the company's business structure.

One of THE greatest fundamental analyst is Warren Buffet, 2nd richest man in the world. I will write about him in my next post ;-)

Welcome to marcussiow.blogspot.com

Hi!

Welcome to my blog! This is my first time with no whatsoever experience in blogging. As the title of the blog says, this blog is intended for anyone to share their opinions or experiences in a constructive manner. I welcome all perspectives and opinions provided there's no vulgarity or any elements of violence, crime, and prejudice.

I promise no rubbish on this blog. I wouldn't want to waste your time either. Feel free to blog with me ;-)

Cheers!

Marcus.