Doing One’s Job as a Value Investor and Entrepreneur in Asia, or How to Avoid Value Traps

Dear Friends and All,

Doing One’s Job as a Value Investor and Entrepreneur in Asia, or How to Avoid Value Traps

“Management must be willing to submit themselves to the disciplines required for growth.”

– Philip Fisher, Warren Buffett’s mentor

 

You are now a changed man. But you were just doing your job.” This is a feedback comment received by one of Singapores top-notch professionals in his conversation years ago with another outstanding top brass whos a shrewd observer of people. The professional shared this recollection with the Bamboo Innovator last Friday. The seemingly simple and unremarkable comment made in the course of a classic Asian-style conversation with its underlying  wisdom, reflects the inner sense of purpose of this highly dedicated professional when he was in a position that had made him possibly Singapore’s most feared professional in uncovering financial lapses and irregularities.

Often times, people only see the glamorous side of a leader, their eye-popping remuneration and big title, the power and influence they wield from their position, the perquisites and social respect they enjoy. In the case of a value investor, many think that it is attractive as a career and lifestyle with “work-life balance” given that one only has to do some readings without the long working hours and make twenty-idea punch card investment decisions to become another Buffett. Whether one is a Professional, Entrepreneur, Value Investor or Educator in “doing one’s job”, it is critical to think about what skill-set, professional care and personal sacrifices that job requires in order to become the best in that field so as to create value for the people around him or her. Everything else such as the perquisites is simply a distraction. True professionalism means the pursuit of excellence, which inspires the extra level of intensity and dedication to serve. True professionals understood that their time belong not to themselves but to creating value for others so it’s no longer about “retiring before 40” or having more perquisites to enjoy as all these thoughts and activities are secondary and distractions from “doing one’s job”. They care only about two simple yet profound things which we will elaborate shortly. Read more of this post

Some Key Differences between a Happy Life and a Meaningful Life

Some Key Differences between a Happy Life and a Meaningful Life

Roy Baumeister 

Florida State University – College of Arts & Sciences

Kathleen Vohs 

University of Minnesota, Twin Cities – Carlson School of Management

Jennifer Aaker 

Stanford University – Graduate School of Business

Emily N. Garbinsky 

Independent
October 1, 2012
Stanford Graduate School of Business Research Paper No. 2119

Abstract: 
Being happy and finding life meaningful overlap, but there are important differences. A large survey revealed multiple differing predictors of happiness (controlling for meaning) and meaningfulness (controlling for happiness). Satisfying one’s needs and wants increased happiness but was largely irrelevant to meaningfulness. Happiness was largely present-oriented, whereas meaningfulness involves integrating past, present, and future. For example, thinking about future and past was associated with high meaningfulness but low happiness. Happiness was linked to being a taker rather than a giver, whereas meaningfulness went with being a giver rather than a taker. Higher levels of worry, stress, and anxiety were linked to higher meaningfulness but lower happiness. Concerns with personal identity and expressing the self-contributed to meaning but not happiness. We offer brief composite sketches of the unhappy but meaningful life and of the happy but meaningless life. Read more of this post

Bad is stronger than good.

Bad is stronger than good.

Baumeister, Roy F.; Bratslavsky, Ellen; Finkenauer, Catrin; Vohs, Kathleen D.

Review of General Psychology, Vol 5(4), Dec 2001, 323-370. doi: 10.1037/1089-2680.5.4.323

Abstract

1.       The greater power of bad events over good ones is found in everyday events, major life events (e.g., trauma), close relationship outcomes, social network patterns, interpersonal interactions, and learning processes. Bad emotions, bad parents, and bad feedback have more impact than good ones, and bad information is processed more thoroughly than good. The self is more motivated to avoid bad self-definitions than to pursue good ones. Bad impressions and bad stereotypes are quicker to form and more resistant to disconfirmation than good ones. Various explanations such as diagnosticity and salience help explain some findings, but the greater power of bad events is still found when such variables are controlled. Hardly any exceptions (indicating greater power of good) can be found. Taken together, these findings suggest that bad is stronger than good, as a general principle across a broad range of psychological phenomena.

 

Top Anecdotal Signs of a Market Bubble

10 February 2014

Top Anecdotal Signs of a Market Bubble

By Jason Voss, CFA

At the risk of further inflating the bubble in discussion about whether or not global equity markets are in a bubble, I think it is worth discussing the topic from a qualitative point of view. Most of the talk of bubbles is data-driven analysis focusing on things like multiples, profit margins, revenue growth, historic equity market tops, equity risk premiums, and so forth. Read more of this post

BILL GATES’ STEVE JOBS MOMENT

BILL GATES’ STEVE JOBS MOMENT

Wednesday, February 5, 2014 — Tweet this article

Steve Jobs and Bill Gates, once pirates, now legends, are forever linked in tech history. You know the lore: both collaborators and competitors in the 80s; Gates dominant in the 90s; Jobs triumphant in the 00s. Their career arcs were different though: Gates went out on top, retiring to a life of philanthropy, while Jobs spent a decade in the wilderness, returning to Apple at its darkest hour and leading it to impossible heights.

It turns out, though, the story may not be over. Read more of this post

Twilight of the Brands; brands have never been more fragile

TWILIGHT OF THE BRANDS

by James SurowieckiFEBRUARY 17, 2014

Twelve months ago, Lululemon Athletica was one of the hottest brands in the world. Sales of its high-priced yoga gear were exploding; the company was expanding into new markets; experts were in awe of its “cultlike following.” As one observer put it, “They’re more than apparel. They’re a life style.” But then customers started complaining about pilling fabrics, bleeding dyes, and, most memorably, yoga pants so thin that they effectively became transparent when you bent over. Lululemon’s founder made things worse by suggesting that some women were too fat to wear the company’s clothes. And that was the end of Lululemon’s charmed existence: the founder stepped down from his management role, and, a few weeks ago, the company said that it had seen sales “decelerate meaningfully.” Read more of this post

Before you can focus your business, you must focus yourself

Before you can focus your business, you must focus yourself

Published 10 February 2014 16:45

New York Times

“On an average day we spend 2.1 hours on distraction,” says Robin Sharma, a best-selling author and personal coach. “We’re distracted by technology every 11 minutes, and it takes us 25 minutes to refocus our minds on the deep, creative work we were doing before we were distracted.” Read more of this post

The Internet of Things must move beyond mere novelty

The Internet of Things must move beyond mere novelty

BY JAMES ROBINSON 
ON FEBRUARY 10, 2014

A plain old basketball with all the features – nice bounce, right size, appropriate color, light enough to be passed from person-to-person and thrown through a hoop – costs about 20 bucks.

InfoMotion Sports Technologies’ 94Fifty basketball, on retail since late last year and proudly on display at this year’s CES, goes for $295. It comes equipped with nine lightweight sensors and abluetooth chip to relay data back to an iPhone app. Set it on a charger for a couple of hours and you can play with it for about eight. Read more of this post

A series of previously unthinkable fraud and information leaks have hit the Korean financial community hard, showing how vulnerable our financial system is

2014-02-10 17:44

Biggest financial scam

A series of previously unthinkable fraud and information leaks have hit the financial community hard, showing how vulnerable our financial system is.
The Financial Supervisory Service (FSS) last week revealed that the nation’s leading commercial and savings banks were unaware ― for more than five years ― of a massive loan fraud case in which an employee of KT ENS, a network operating subsidiary of KT Corp., embezzled nearly 300 billion won in loans allegedly in collusion with a number of subcontractors. The employee, surnamed Kim, is suspected of having issued fake bonds using an official stamp stolen from the company to the subcontractors, which were then used as collateral to take out loans from the banks.     Read more of this post

What 13 highly successful people read before bed

What 13 highly successful people read before bed

Alison Griswold, Business Insider | February 10, 2014 12:09 PM ET
The evening can provide a rare retreat from a jam-packed day for highly successful people.

For many CEOs, execs, and other high achievers, the day begins extremely early and iscrammed with emails, meetings, and events. But the evenings can be a time to unwind. And for those who love to read, there’s no better time to pick up a book or magazine. Read more of this post

Can Mild Electric Current Make People Better at Math? Scientists find mild jolts to the brain may improve performance with numbers

Can Electric Current Make People Better at Math?

Scientists find mild jolts to the brain may improve performance with numbers

SHIRLEY S. WANG

Feb. 10, 2014 8:37 p.m. ET

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Oxford University research assistant Amar Sarkar wears a cap that provides a type of transcranial electrical stimulation. Frantzesco Kangaris for The Wall Street Journal Read more of this post

Eight Essentials for Scaling Up Without Screwing Up

Eight Essentials for Scaling Up Without Screwing Up

by Robert I. Sutton  |   11:00 AM February 10, 2014

Back in 2006, my colleague Huggy Rao

and I launched an executive education program at Stanford called “Customer-focused Innovation.”  Mornings consisted of lectures and case studies in a traditional classroom in the Stanford Business School; this was the “clean models” part of the program. In the afternoons, we moved the group to the (then) new Hasso Plattner Institute of Design, or “Stanford d.school,” for the “hands on” part. That midday transition could be jarring. The d.school was in a crowded, messy, and rather run-down double-wide trailer in those days. And then there was the fieldwork. That first year, the d.school team (led by Perry Klebahn) sent the executives out to observe and interview customers in BP gas stations. Their assignment was to prototype solutions to problems they heard about, revise them in response to user feedback, and then present them to a demanding group of BP executives. Read more of this post

The brilliance of asking incredibly naïve questions; Most workplace conversations discourage real dialogue — the kind you get when people feel free to challenge plans, ideas, even one another.

The brilliance of asking incredibly naïve questions

February 10, 2014: 12:27 PM ET

Most workplace conversations discourage real dialogue — the kind you get when people feel free to challenge plans, ideas, even one another.

By Megan Hustad

FORTUNE — I was about to get on a conference call and asked the call organizer if he had scheduled a hard stop. No, he said, but he hoped the call would be over in 45 minutes.

The call started, and after 70 minutes I hung up knowing I could always pretend Skype had dropped the call. But no one complained. It seems I wasn’t the only one frustrated. Read more of this post

NUS develops screening tool able to diagnose cancer immediately

NUS develops screening tool able to diagnose cancer immediately

By Reshma Ailmchandani

 

POSTED: 10 Feb 2014 22:09

National University of Singapore (NUS) has developed a new tool that is able to diagnose cancerous and even pre-cancerous tissues immediately during endoscopy. Read more of this post

Use Co-opetition to Build New Lines of Revenue; Examples of high-profile failed business collaborations are everywhere

Use Co-opetition to Build New Lines of Revenue

by Marquis Cabrera  |   1:00 PM February 10, 2014

Examples of high-profile failed business collaborations are everywhere. From the WordPerfect-Novell acquisition that led to bankruptcy, to the misfires of the Target-Neiman holiday experiment, it’s clear that despite the plethora of management literature on how to launch a successful partnership, collaborations often go bust. It turns out, where there is money to be made, self-interest prevails, thus trumping cooperation in the process. Read more of this post

NASA Bets on Private Companies to Exploit Moon’s Resources

NASA Bets on Private Companies to Exploit Moon’s Resources

By Agence France-Presse

 on 4:26 pm February 10, 2014.
NASA — building on successful partnerships with private companies to resupply the International Space Station — is now looking to private entrepreneurs to help exploit resources on the moon. Read more of this post

Will Amazon Destroy the Market for Quality Books?

Will Amazon Destroy the Market for Quality Books?

By Matthew Yglesias

George Packer has an elegant story in The New Yorker recounting the book publishing industry’s struggles with Amazon with nobody quite wanting to go on the record against the leviathan that dominates the book industry, but nobody pleased at the way Jeff Bezos seems to be inexorably squeezing everyone out. It’s great reporting, and the human story of people wrestling with a Seattle-based technology company that doesn’t particularly care about literature is fascinating.

I don’t, however, quite understand the conclusion: Read more of this post

We need a new Bismarck to tame the machines; The power of the new technology barons must be held in check

February 10, 2014 4:18 pm

We need a new Bismarck to tame the machines

By Michael Ignatieff

The power of the new technology barons must be held in check, says Michael Ignatieff

Aquestion haunting democratic politicseverywhere is whether elected governments can control the cyclone of technological change sweeping through their societies. Democracy comes under threat if technological disruption means that public policy no longer has any leverage on job creation. Democracy is also in danger if digital technologies give states powers of total surveillance. Read more of this post

DeepMind and NaturalMotion lead charge of London’s tech start-ups; Unlike in Silicon Valley, tech start-ups in the UK rarely ascend to the lofty heights of multibillion-dollar valuations

February 10, 2014 7:05 pm

DeepMind and NaturalMotion lead charge of London’s tech start-ups

By Sally Davies

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Unlike in Silicon Valley, tech start-ups in the UK rarely ascend to the lofty heights of multibillion-dollar valuations. Read more of this post

Philippine TV networks to compete for airtime on smartphones

Philippine TV networks to compete for airtime on smartphones

February 10, 2014

by Phoebe Magdirila

Last December, Philippine television network ABS-CBN announced its foray into mobile. Through ABS-CBNmobile, the new telco has launched a live-streaming app for its customers, following a growing trend among Philippines TV networks. Read more of this post

Starry-Eyed Budget Carriers in Southeast Asia Stare at Overcapacity

Starry-Eyed Budget Carriers in Southeast Asia Stare at Overcapacity

By Anshuman Daga on 2:08 pm February 10, 2014.
Singapore. Low-cost carriers are flying high in Southeast Asia on the back of sharp growth in air travel, but as hundreds of new jets swarm into the region concerns are rising about its ability to absorb the record numbers of planes on order. Read more of this post

Perils Mount As Debt Costs Swell in China; Dangers Include Slower Growth, Weaker Profits and Potential Defaults

Perils Mount As Debt Costs Swell in China

Dangers Include Slower Growth, Weaker Profits and Potential Defaults

SHEN HONG

Feb. 10, 2014 5:29 p.m. ET

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SHANGHAI—Borrowing costs for Chinese companies are rising strongly, a shift that could herald weaker corporate profits, slower economic growth and even the first defaults by indebted corporations on the mainland. Read more of this post

Singapore comes late to the stock regulation party

Singapore comes late to the stock regulation party

UNA GALANI

HONG KONG — Reuters Breakingviews

Published Monday, Feb. 10 2014, 8:00 PM EST

Last updated Monday, Feb. 10 2014, 8:00 PM EST

Singapore’s overhaul of its stock market is overdue. The city-state has proposed a raft of new trading rules in response to last year’s painful crash in penny stocks. Though welcome, the joint proposals from the Singapore Exchange (SGX) and the Monetary Authority of Singapore (MAS) look mostly like playing catch-up with Hong Kong. Read more of this post

Tacit agreement that SGX’s dual role is untenable

Tacit agreement that SGX’s dual role is untenable

Business Times

11 Feb 2014

Michelle Quah

SINGAPORE’S market regulators seem to finally be in agreement with a position that The Business Times has taken for years – that having a profit-driven market regulator, one with dual roles of revenue generation and market oversight, is simply not tenable. Read more of this post

If Nestlé Sells Its Stake in L’Oréal… Chain Reaction of Share Sales Could Occur With Expiration of Pact in April

If Nestlé Sells Its Stake in L’Oréal… Chain Reaction of Share Sales Could Occur With Expiration of Pact in April

CHRISTINA PASSARIELLO and NOÉMIE BISSERBE in Paris and JOHN REVILL in Zurich

Feb. 10, 2014 12:39 p.m. ET

A knot tying three of Europe’s biggest corporations together could soon be untangled with billions of euros in share buybacks.

In late April, Nestlé SA NESN.VX -0.07% will be free to unwind its 30% stake in L’Oréal SA, and, according to people familiar with the matter, that is one of the options the Swiss food giant is studying. If Nestlé’s stake is up for grabs, L’Oréal wants to buy at least part of it, one of the people said. That could trigger L’Oréal selling its 9% stake in French pharmaceutical company Sanofi SA, SAN.FR +1.78% according to the person. Read more of this post

Asian Group Tries to Stem Rubber’s Swoon; Bangkok-Based Group Urges Members Not to Sell After Commodity’s Prices Drop on Signs of Economic Slowdown in China

Asian Group Tries to Stem Rubber’s Swoon

Bangkok-Based Group Urges Members Not to Sell After Commodity’s Prices Drop on Signs of Economic Slowdown in China

HUILENG TAN

Feb. 10, 2014 7:13 a.m. ET

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LOOKING FOR A BOUNCE: The Bangkok-based International Rubber Consortium told members not to sellthe commodity, an effort to stem a plunge in the price of rubber. Above, a glove assembly line in Zibo, ChinaReuters Read more of this post

South Korean Startup Support Gets Mixed Reception; Plan’s First Year Raises Efficacy Concerns; Government Says Project Continues to Improve

South Korean Startup Support Gets Mixed Reception

Plan’s First Year Raises Efficacy Concerns; Government Says Project Continues to Improve

JONATHAN CHENG

Updated Feb. 10, 2014 9:01 p.m. ET

SEOUL—Government officials here hope that a thriving local startup scene could soon put fresh Korean technology names on the global stage—and they are sparing no expense to make it happen. Read more of this post

Can Indonesia Really Weather the Looming Economic Crisis?

Can Indonesia Really Weather the Looming Economic Crisis?

By Alexander Ugut on 9:56 pm February 10, 2014.
Ask the above question to policy makers or supervisory authorities and the most likely answer you will get is an affirmative one. Yes indeed, our banking sectors are better capitalized now, leverage of public and private sector including households are low, foreign exchange reserves are adequate for roughly six months of imports. Our exposure to potentially toxic securitized transactions or shadow banking activities is negligible. Bank Indonesia, the central bank, has also made significant preparations for a much worse situation by signing option contracts with China, Japan and South Korea that give it the right to execute cross currency swap contracts in the total amount of $49 billion. In addition to that, another $5.5 billion is ready in the form of standby loans from multilateral financial institutions. Read more of this post

Book Review: ‘The Contest of the Century,’ by Geoff Dyer; China can’t change its history as a regional hegemon. It can’t change its size and population. And it can’t change its location.

Book Review: ‘The Contest of the Century,’ by Geoff Dyer

China can’t change its history as a regional hegemon. It can’t change its size and population. And it can’t change its location.

ALI WYNE

Feb. 10, 2014 7:24 p.m. ET

There is a tendency to view China‘s policies as part of a long-term strategic design, first for restoring its historic centrality in Asia and ultimately for displacing the U.S. as the world’s top power. But as Geoff Dyer observes in his stellar book, “The Contest of the Century,” the likelier explanation is more banal: Given its rapid economic growth, China is adopting a more expansive vision of its national interests and modernizing its military to match that vision. The challenge is to distinguish between those policies of Beijing that any other rising power would develop and those that could fundamentally alter the postwar global order.

Chinese leaders insist that they will avoid the mistakes that Germany and Japan made in the first half of the 20th century: As Communist Party foreign-policy adviser Zheng Bijian wrote in a 2005 Foreign Affairs magazine article, Beijing would achieve a “peaceful rise” by transcending “ideological differences to strive for peace, development, and cooperation with all countries of the world.” Today that optimism seems misplaced. The more China attempts to push the U.S. back into the Pacific Ocean and resolve its territorial disputes, the more it stimulates the formation of a countervailing coalition in the Asia-Pacific.

Mr. Dyer, a journalist for the Financial Times, cites three recent events that have shaped China’s current strategic predicament. In May 2009, the regime resurrected its “nine-dash line”—a self-declared maritime border that encompasses some 80% of the South China Sea—in a communiqué to United Nations Secretary-General Ban Ki-moon. Then, in 2010, China stood on the sidelines after North Korea torpedoed a South Korean warship, killing 46 sailors. And when in the same year Tokyo detained the captain of a Chinese trawler that had collided with two Japanese military vessels in Japanese-controlled waters, Beijing imposed an embargo on the export of rare earths to Japan.

As Mr. Dyer shows, China’s embattled position within the region also stems from immutable factors. It can’t change its history as a regional hegemon, which continues to alarm its neighbors. It can’t change its size—though former Foreign Minister Yang Jiechiwas remiss to declare at a 2010 regional forum that “China is a big country, and other countries are small countries, and that is just a fact.” And it can’t change its location: Mr. Dyer notes that it is encircled by “successful and ambitious states who also believe this is their time.”

Enlarge Image

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The Contest of the Century

By Geoff Dyer
(Knopf, 308 pages, $26.95)

Complicating matters is that numerous voices now shape China’s foreign policy. Its leaders confront “powerful vested interests within the party-state,” the author writes, as well as “an officer class that has its own hawkish take on global affairs” and the “nationalist views of a rising middle class.” There are marked divisions within these factions, and, because of the opaque nature of party decision-making, Beijing’s conduct can appear malign and conspiratorial even when it isn’t.

Momentum also undermines China’s regional charm offensives. After three and a half decades of torrid growth, it has the world’s second largest economy and is the largest trading country. Progress of such rapidity and scale is an invitation to scrutiny. China’s leaders are acutely aware, moreover, that their legitimacy depends in large part on continuing to improve their citizens’ livelihoods. The frenetic pace at which China is securing vital commodities around the world reflects this anxiety. As environmental degradation worsens, resource shortages grow and demographics deteriorate, China will become more dependent on outsiders to sustain its growth. Where its leaders discern vulnerability, however, many others see a Chinese dragon trying to buy the world.

But China’s myriad challenges don’t guarantee U.S. victory in the contest referred to by Mr. Dyer’s title. According to an “iron rule” that he says governs the region’s geopolitics, Washington will lose if it tries to enlist China’s neighbors in an effort to contain its rise. Instead, the U.S. must establish “a convincing long-term economic agenda” that binds theAmerican economy to that of the Far East. Thus stagnation in negotiations over the Trans-Pacific Partnership, he writes, “would be an enormous setback to the U.S.’s efforts to demonstrate that it has more to offer Asia than just its navy.” But demonstrating staying power carries a significant risk of its own: If China’s neighbors conclude that the U.S. will protect them no matter what contingency arises, they may opt to free-ride on U.S. security guarantees rather than develop their own capabilities.

Mr. Dyer is optimistic that the U.S. will “win”: that is, “retain its role at the center of international affairs.” But he doesn’t subscribe to unwarranted zero-sum logic. Given that China wasn’t too long ago an isolated, impoverished backwater, vulnerable to predation from without and collapse from within, becoming the second most important pillar of the international system would scarcely constitute a “loss.”

The real prize in U.S.-China competition would be the “new model of great-power relations” that President Obama and President Xi have proposed. One hopes that historians of a century hence will commend the two countries for inaugurating a new era of international relations, one in which a pre-eminent power and its principal challenger were able to both compete and collaborate in service of the global interest.

Mr. Wyne is an associate of the Belfer Center for Science and International Affairs at Harvard University’s Kennedy School of Government and a co-author of ” Lee Kuan Yew : The Grand Master’s Insights on China, the United States, and the World.”

 

Is Sweden Raising a Generation of Brats? Scandinavian country’s child-centric ways stir backlash

Is Sweden Raising a Generation of Brats?

Scandinavian country’s child-centric ways stir backlash

JENS HANSEGARD

Feb. 10, 2014 6:46 p.m. ET

Is Sweden raising a generation of brats?

The country has built a child-friendly reputation on its mandates for long parental leave and provision for state-funded day care from age 1. But a new book paints an ugly underbelly to Scandinavia’s child-centric ways. Youngsters here—deemed “competent individuals” by the state and legally protected from spanking—are becoming the chief decision makers in homes at very young ages in what some Swedes think is an alarming trend. Read more of this post

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