Morning Bamboo Insight: 31 Jul 2014

Morning Bamboo Insight: 31 Jul 2014

Asia Pacific

  1. (China) – China Probe of Ex-Security Chief Cracks Immunity for Elite Families; Takedown of Zhou Yongkang Sets Potential Precedent as It Goes After His Relatives

http://online.wsj.com/articles/china-probe-of-ex-security-chief-cracks-immunity-for-elite-families-1406719244

  1. (India/Japan) – Could India Be Japan Inc.’s Next Big Investment Target?

http://blogs.wsj.com/economics/2014/07/29/could-india-be-japan-inc-s-next-big-investment-target/

  1. (Japan) – Saving Abenomics; Abe has rolled out a tranche of corporate-governance reforms that give institutional investors greater sway over management. This marks a new transmission mechanism for spreading corporate earnings through the economy

http://online.wsj.com/articles/joseph-sternberg-saving-abenomics-1406736728

  1. (China) – China’s Campaign Against Leftovers; To Beijing, declining marriages is not just a demographic concern -it’s a national crisis.

http://online.wsj.com/articles/anjie-zheng-chinas-campaign-against-leftovers-1406736849

5. (Korea) – S. Korean ‘Choco Pie’ balloons launched into North

http://news.asiaone.com/print/news/asia/s-korean-choco-pie-balloons-launched-north

  1. (Msia) – Norwegian fund Norges allots RM800mil to invest in Malaysian small, mid-cap stocks

http://www.thestar.com.my/Business/Business-News/2014/07/31/Norges-allots-RM800mil-for-small-midcap-stocks/

  1. (Philippines) – Who Believes Philippines Are Worth Fighting For?

http://www.thejakartaglobe.com/opinion/believes-philippines-worth-fighting-william-pesek/

  1. (Spore) – No-commission life insurance up ahead in Singapore

http://www.businesstimes.com.sg/premium/top-stories/no-commission-life-insurance-ahead-20140731

  1. (China) – Microsoft Aspirations in China Meets Perilous Climate prone to protectionism, unpredictable laws and unreliable suppliers.

http://www.businessweek.com/news/2014-07-29/microsoft-latest-company-finding-china-climate-arduous

10. (Spore) – S’pore’s savvy tax strategy keeps economy vibrant; This sets it apart from other jurisdictions regularly identified as tax havens

http://www.businesstimes.com.sg/premium/editorial-opinion/opinion/spores-savvy-tax-strategy-keeps-economy-vibrant-20140731

Life

  1. Tony Fernandes on driving ASEAN entrepreneurship

http://www.mckinsey.com/insights/public_sector/Tony_Fernandes_on_driving_ASEAN_entrepreneurship?cid=other-eml-alt-mip-mck-oth-1407

  1. The best performers do orders of magnitude better than the average, but how do you get them to work for your company?

http://ww2.cfo.com/hiring/2014/07/hire-simply-best

  1. Entrepreneurs are misunderstood; Unless we appreciate the value they create we can’t appreciate their contribution to society

http://www.theage.com.au/small-business/entrepreneur/entrepreneurs-are-misunderstood-20140723-3cecw.html

  1. The secret to Warren Buffett’s success: Charlie Munger; Munger is known for running a tight ship and training his executives on the “why” principle. This why-led strategy is responsible for the famous resurgence of Apple

http://www.theage.com.au/small-business/startup/the-secret-to-warren-buffetts-success-20140716-3c1ll.html

  1. Dilmah’s founder Merrill Fernando’s idea to produce and sell single-origin pure Ceylon tea helped to stop the trend towards the commoditisation of tea

http://www.thestar.com.my/Business/SME/2014/07/31/Tea-leads-to-philanthropy-Planters-success-allows-him-to-venture-on-to-bigger-things/

TMT

  1. Amazon Ups the Ante in India With $2 Billion Investment; Amazon Ups the Ante in India With $2 Billion Investment

http://online.wsj.com/articles/amazon-to-invest-2-billion-in-india-1406700828

2. (China/Tech) – Alibaba in Talks to Invest in Snapchat; New Round of Financing Could Value the Messaging App at $10 Billion

http://online.wsj.com/articles/alibaba-in-talks-to-invest-in-messaging-app-snapchat-1406746438

  1. (China/Tech) – Alibaba Entertains Chinese Willingness to Pay; Chinese Consumers Aren’t Accustomed to Paying for Home Entertainment

http://online.wsj.com/articles/heard-on-the-street-alibaba-entertains-chinese-willingness-to-pay-1406709568

  1. (China/Korea/Tech) – Is Huawei Eating Samsung’s Lunch?

http://blogs.wsj.com/digits/2014/07/30/is-huawei-eating-samsungs-lunch/

  1. Tech Companies’ Secret Weapon: Animal Logos

http://blogs.wsj.com/digits/2014/07/30/tech-companies-secret-weapon-animal-logos/

Consumer

  1. In New Zealand, All Eyes on Milk Prices; Dairy forms the backbone of the New Zealand economy, representing around 25% of exports

http://blogs.wsj.com/economics/2014/07/30/in-new-zealand-all-eyes-on-milk-prices/

  1. As Sales Flag Abroad, Coke Refocuses on Home Turf; Old Playbook May Not Work When Americans Are Rethinking Soda Consumption

http://online.wsj.com/articles/as-sales-flag-abroad-coke-refocuses-on-home-turf-1406765563

Healthcare

  1. World Ebola fears grow, with Europe and Asia on alert

http://www.channelnewsasia.com/news/health/world-ebola-fears-grow/1289770.html

  1. Drug-resistant malaria spreading fast in Southeast Asia

http://www.channelnewsasia.com/news/health/drug-resistant-malaria/1289992.html

Investing Process

  1. East Coast Asset Management Q2 Letter – Horse in Motion

http://cdn1.valuewalk.com/wp-content/uploads/2014/07/East-Coast-Q2-2014-Letter_-Horse-in-Motion.pdf

  1. Research – Opting Out of Good Governance

http://www.nber.org/papers/w19953

Evening Bamboo Insight: 30 Jul 2014

Evening Bamboo Insight: 30 Jul 2014

Macro

  1. Aerospace Aftermarket On the Rise; Spares and service demand has marked positive growth in the sector

http://online.barrons.com/news/articles/SB50001424053111903849404580057883763204458

  1. The Family Dollar deal embodies everything wrong with American capitalism

http://qz.com/241505/the-family-dollar-deal-embodies-everything-wrong-with-american-capitalism/

  1. Upstart trading venue IEX may prompt U.S. market rule change

http://www.reuters.com/article/2014/07/30/us-markets-regulations-iexgroup-idUSKBN0FZ09J20140730

  1. Fear of bubbles hides the danger of stagnation; The gloomier economic outlook is that interest rates are low for good reason

http://www.ft.com/intl/cms/s/0/06a6194c-1683-11e4-8210-00144feabdc0.html#axzz38vYpOhrD

  1. Why there is never such a thing as a single true and fair view; The absurdity whereby a fall in a bank’s credit standing becomes a source of profit

http://www.ft.com/intl/cms/s/0/73582ce2-167e-11e4-8210-00144feabdc0.html#axzz38vYpOhrD

  1. Financial window closes for Moscow businesses

http://www.ft.com/cms/s/0/8f054d20-1733-11e4-87c0-00144feabdc0.html#axzz38vbRzwTD

Asia Pacific

1. (Japan) – Investors Should Yen for Japanese Stocks

http://online.wsj.com/articles/investors-should-yen-for-japanese-stocks-1406600582

  1. (China) – Xi Rides the Tiger; The return to one-man rule will bring costs and risks to China

http://online.wsj.com/articles/xi-rides-the-tiger-1406653411

  1. (China) – Default settings in China

http://ftalphaville.ft.com/2014/07/29/1911482/default-settings-in-china/

  1. (India) – Nutrition Is A Silent Emergency In India: Vinita Bali, who recently stepped down as the MD of Britannia Industries, now wants to focus on the creative lateral part of solving social problems

http://forbesindia.com/article/real-issue/nutrition-is-a-silent-emergency-in-india-vinita-bali/38315/1

  1. (India) – How cool! Daikin eyes Indian market using Japanese technology; Daikin, the global leader in ACs, is betting on energy efficient technology and entrepreneurial dealers to succeed in India

http://forbesindia.com/printcontent/38305

  1. (China) – With China’s meat scandal, U.S. burger tycoon faces his biggest test yet

http://business.financialpost.com/2014/07/29/with-chinas-meat-scandal-u-s-burger-tycoon-faces-his-biggest-test-yet/

  1. (Korea) – Restructuring urgent for big Korean companies

http://www.koreatimes.co.kr/www/news/tech/2014/07/133_161893.html

  1. (China) – Will China ever have its own Harvard?

http://www.koreatimes.co.kr/www/news/opinon/2014/07/162_161914.html

  1. (China) – Ending the era of the untouchables

http://www.thestandard.com.hk/news_detail.asp?we_cat=17&art_id=147842&sid=42710162&con_type=1&d_str=20140730&fc=4

  1. (China) – Nobel laureate Thomas Sargent optimistic about Silk Road Economic Belt

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140730000001&cid=1202

  1. (India) – India must tackle bad bank debts to grow; Lenders need to deal with $60bn in problem loans

http://www.ft.com/intl/cms/s/0/a6937546-1348-11e4-8244-00144feabdc0.html#axzz38vYpOhrD

  1. (India) – India struggles to build up infrastructure dream

http://www.ft.com/intl/cms/s/0/a4152f94-1627-11e4-93ec-00144feabdc0.html?siteedition=intl#axzz38vYpOhrD

  1. (Japan) – Sony set to fail Japan index test

http://www.ft.com/intl/cms/s/0/4aa30c62-1706-11e4-8617-00144feabdc0.html#axzz38vYpOhrD

  1. (India) – India’s Tata Group earmarks $35bn for global expansion plan

http://www.ft.com/cms/s/0/7348fea8-179a-11e4-87c0-00144feabdc0.html#axzz38vbRzwTD

  1. (China) – Xi’s ‘tiger’ hunt breaks Communist party taboo; Xi Jinping takes risky path in disposal of ‘tiger’ Zhou Yongkang

http://www.ft.com/intl/cms/s/0/708c3c4e-1735-11e4-b0d7-00144feabdc0.html#axzz38vbzllhl

http://www.ft.com/intl/cms/s/0/f1999c0a-172b-11e4-b0d7-00144feabdc0.html#axzz38vbRzwTD

  1. (China) – China’s Going After Zhou Yongkang For Corruption – Here’s Everyone In His Inner Circle

http://www.businessinsider.sg/zhou-yongkang-political-aides-graphic-2014-7/#.U9iK3PmSxqU

Life

  1. The Power of the Doodle: Improve Your Focus and Memory; Research Shows That Doodling Helps People Stay Focused, Grasp New Concepts and Retain Information

http://online.wsj.com/articles/the-power-of-the-doodle-improve-your-focus-and-memory-1406675744

  1. Sealed Air, the company behind Bubble Wrap, the packing material that never seems to get old

http://online.wsj.com/articles/novelty-of-bubble-wrap-never-seems-to-get-old-1406681390

  1. No CEO Is Special Forever: Their customers might love them, but shareholders not so much

http://online.wsj.com/articles/holman-w-jenkins-no-ceo-is-special-forever-1406675198?mod=Opinion_newsreel_10

  1. How To Start Doing Work You Love And Illuminate The World With It

http://www.forbes.com/sites/kathycaprino/2014/07/29/how-to-start-doing-work-you-love-and-illuminate-the-world-with-it/

  1. How Loneliness Can Make You Sick — and Might Even Kill You

http://op-talk.blogs.nytimes.com/2014/07/29/how-loneliness-can-make-you-sick-and-might-even-kill-you/?ref=opinion

  1. The Former CEO of Ogilvy & Mather on Personal Branding

http://blogs.hbr.org/2014/07/the-former-ceo-of-ogilvy-mather-on-personal-branding/

  1. Beyond technology: Why one Canadian company chooses to innovate the old fashioned way

http://business.financialpost.com/2014/07/28/beyond-technology-why-one-canadian-company-chooses-to-innovate-the-old-fashioned-way/?__lsa=a503-9194

  1. An idiot’s guide to an argument: How to not offend

http://www.brw.com.au/p/leadership/an_idiot_guide_to_an_argument_how_JeaAwt7hjSkMLY4E5GkvYO

  1. A 15th century lesson: In the early 15th century, Korea possessed one of the most revolutionary technologies of its day: printing with moveable type. Although invented in China, Korea was the world’s leader in the application of the technology

http://www.koreatimes.co.kr/www/news/opinon/2014/07/396_161126.html

  1. Contenders for the patron saint of entrepreneurs: The greatest advocates for the entrepreneurial life from the humanities and social sciences; Nietzsche was a fierce proponent of humans living to their full potential, and taking risks in life

http://www.ft.com/intl/cms/s/0/b0532ee4-1651-11e4-8210-00144feabdc0.html#axzz38vYpOhrD

  1. A French revolution in work at O2: Creating jobs has made Guillaume Richard a business celebrity

http://www.ft.com/intl/cms/s/0/e0376352-1654-11e4-93ec-00144feabdc0.html#axzz38vYpOhrD

  1. Ebola stirs noise while silence greets other killers; Both the deadly virus and old scourges can be stopped by long-term strategies

http://www.ft.com/intl/cms/s/0/c3088086-1708-11e4-b0d7-00144feabdc0.html#axzz38vbzllhl

  1. 5 Brilliant Strategies That Make Honda One Of The World’s Most Innovative Companies

http://www.businessinsider.sg/strategies-that-make-honda-innovative-2014-7/#.U9iJKvmSxqU

  1. 5 Tricks To Instantly Appear Competent

http://www.businessinsider.sg/tricks-to-appear-competent-2014-7/#.U9iJaPmSxqU

  1. 22 Quotes By Richard Branson That Take You Inside The Mind Of The Self-Made Billionaire

http://www.businessinsider.sg/quotes-from-richard-branson-2014-7/#.U9iJ3vmSxqU

  1. Fascinating Facts About 10 Of The World’s Best-Selling Products

http://www.businessinsider.sg/10-of-the-worlds-best-selling-items-2014-7/#.U9iKePmSxqU

  1. 9 Subtle Things Leaders Do That Show They Have Integrity

http://www.businessinsider.sg/subtle-things-leaders-with-integrity-do-2014-7/#.U9iLQPmSxqU

  1. The 6th Mass Extinction Could Destroy The Future Of Medicine; The potent and diverse chemicals created by nature might hold the key to better treatments for cancer, many other diseases that stymie doctors – but only if we can reach them in time

http://www.businessinsider.sg/how-climate-change-could-destroy-medicine-2014-4/#.U9iLTPmSxqU

TMT

  1. Cheap Tablets Crack Corning’s Stock; lower-end devices less likely to use Gorilla Glass

http://online.wsj.com/articles/heard-on-the-street-cheap-tablets-crack-cornings-stock-1406657868?mod=yahoo_hs

  1. Researchers Fret as Social Media Lift Veil on Drug Trials; Online Chatter Could Unravel Carefully Built Construct of ‘Blind’ Clinical Trials

http://online.wsj.com/articles/researchers-fret-as-social-media-lift-veil-on-drug-trials-1406687404

  1. For Liberty Global, the Next Step Is the Content: CEO Mike Fries, Chairman John Malone Talk About Media Consolidation

http://online.wsj.com/articles/next-step-for-liberty-global-content-1406667563

  1. (Spore/Tech) – Gaming firm puts S’pore in billion-dollar club

http://business.asiaone.com/print/sme-central/prime-movers/gaming-firm-puts-spore-billion-dollar-club

  1. The New Bazaar: Online Shopping Catches On in India With Buyers and Global Investors

http://dealbook.nytimes.com/2014/07/29/the-new-bazaar-online-shopping-catches-on-in-india-with-buyers-and-global-investors/

  1. How the Internet of Things Changes Business Models

http://blogs.hbr.org/2014/07/how-the-internet-of-things-changes-business-models/

  1. (Australia/Tech) – Patrick Grove’s New York meeting with Rupert Murdoch ahead of REA investment in iProperty

http://www.brw.com.au/p/entrepreneurs/patrick_grove_investment_york_meeting_YavyYngApaByY2S2ohtRWM

  1. (Australia/Tech) – Australian duo turn uni lecture notes into cash: Online service built by an ex-AFL player and a Macquarie Bank employee lets students cash in on their notes

http://www.theage.com.au/digital-life/digital-life-news/australian-duo-turn-uni-lecture-notes-into-cash-20140730-zy2g0.html.html

  1. Why do subscription services still suck? When they do not own the content

http://www.theage.com.au/digital-life/computers/gadgets-on-the-go/why-do-subscription-services-still-suck-20140730-zyilb.html

  1. Chat app Line plans a ‘flash sales’ expansion in SE Asia

http://www.chinapost.com.tw/print/413586.htm

  1. E-Commerce Companies Have A Big Opportunity To Go After The Specialty Food Business

http://www.businessinsider.sg/e-commerce-companies-compete-against-legacy-grocers-on-specialty-food-2014-7/#.U9iK4_mSxqU

Consumer

  1. Celebrities Struggle in Prepaid-Card Business; Fortune Eludes Cards Backed by the Famous as Competition from Big Banks Mounts and Fees Come Under Pressure

http://online.wsj.com/articles/celebrities-struggle-in-prepaid-card-business-1406655667?mod=WSJ_hp_LEFTWhatsNewsCollection

  1. McDonald’s Ruling Sets Ominous Tone for Franchisers; NLRB Decision Will Allow Franchise Workers to Treat McDonald’s as ‘Joint Employer’

http://online.wsj.com/articles/nlrb-decision-could-make-mcdonalds-liable-for-labor-practices-of-franchisees-1406660591

  1. (Consumer/Australia) – Claiming for a cut of the coconut water boom

http://www.brw.com.au/p/business/claiming_for_cut_of_the_coconut_rnkhzC3NAj6juQoH5fgHeI

  1. McDonald’s should be the victim of the Shanghai-based Husi Food scandal involving the supply of expired meat. Instead, McDonald’s here is now perceived in a completely different light

http://www.thestandard.com.hk/news_detail.asp?we_cat=17&art_id=147761&sid=42698716&con_type=1&d_str=20140728&fc=4

Morning Bamboo Insight: 30 Jul 2014

Morning Bamboo Insight: 30 Jul 2014

Macro

  1. One-third of people in Europe say they don’t feel European

http://qz.com/241428/one-third-of-people-in-europe-say-they-dont-feel-european/

  1. Stock Market Keeps Its Faith in Humanity; After Years of Losing Ground to Computers, Human-Based Stock Trading Is Holding Its Own

http://online.wsj.com/articles/stock-market-regains-its-faith-in-humanity-1406564845

  1. Meet the SEC’s 6,500 Whistleblowers; People Are Offering Confidential Information Under a Securities and Exchange Commission Program

http://online.wsj.com/articles/meet-the-secs-6-500-whistleblowers-1406591157

  1. Cambodia: Wave of discontent; Hun Sen’s 29-year regime is tottering as a young population, angered by corruption, seeks change

http://www.ft.com/intl/cms/s/0/b01c354e-13f2-11e4-8485-00144feabdc0.html#axzz38oxKFIak

  1. Audit is no longer the chore the board dreads most; There is uncertainty about what risk committees should do, writes Howard Davies

http://www.ft.com/intl/cms/s/0/284b85ca-166d-11e4-8210-00144feabdc0.html#axzz38oxKFIak

6. (Shipping/Macro) – One of the shipping industry’s most influential partnerships is set to end after 19 years, after Tor Olav Trøim said he was stepping down from his role at John Fredriksen’s main holding company

http://www.ft.com/intl/cms/s/0/eae0ec20-1699-11e4-a5c7-00144feabdc0.html#axzz38p3CqhdE

  1. Jaded Argentines brace for looming debt default

http://www.reuters.com/article/2014/07/29/us-argentina-debt-insight-idUSKBN0FY09U20140729

  1. VW set to overtake Toyota as global auto leader

http://www.reuters.com/article/2014/07/29/us-japan-autos-idUSKBN0FY2AM20140729

Asia Pacific

  1. (Korea) – Collusion yet again in Korea: The Fair Trade Commission has imposed $424 million in fines on 28 local builders on charges of colluding on a W3.6tr state project to construct a bullet train network

http://www.koreatimes.co.kr/www/news/opinon/2014/07/202_161847.html

  1. (Australia) – All ovens blazing in Aussie pizza wars; How can small pizzerias capture a slice of the market in the face of the major chains’ $5 pizza deals?

http://www.theage.com.au/small-business/trends/all-ovens-blazing-in-pizza-wars-20140716-3c0ss.html

  1. (Korea) – If making investments in infrastructure in the North becomes possible, Korean companies must be the first.; Japan’s control of the ADB is apparent. Japan overwhelmingly won major projects

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992667

  1. (Australia/Commodities) – Aussie miners shift iron ore price in push back against China

http://www.theage.com.au/business/miners-shift-iron-ore-price-in-push-back-against-china-20140729-zxwzt.html

5. (China) – Policy predictions even harder in China than in a democracy

http://www.ft.com/intl/cms/s/0/db8330c8-1674-11e4-8210-00144feabdc0.html#axzz38p3CqhdE

6. (China) – China Said to Allow Five Regions to Create Bad-Loan Firms

http://www.bloomberg.com/news/print/2014-07-28/china-said-to-allow-five-regions-to-create-bad-loan-firms.html

  1. (China) – China Says Zhou Yongkang, Former Security Chief, Is Under Investigation

http://www.nytimes.com/2014/07/30/world/asia/china-says-zhou-yongkang-former-security-chief-is-under-investigation.html

  1. (China) – Zhou Yongkang: Oil man whose well of power finally ran dry; No safe haven in China’s corruption crackdown

http://news.asiaone.com/print/news/asia/zhou-yongkang-oil-man-whose-well-power-finally-ran-dry

http://www.reuters.com/article/2014/07/30/us-china-corruption-investigation-idUSKBN0FZ01Z20140730

  1. (Msia/Healthcare) – Malaysia tries to parlay appeal to Muslim visitors into medical tourism push

http://www.reuters.com/article/2014/07/29/us-malaysia-medical-idUSKBN0FY2AT20140729

  1. (China) – BBC profile of China’s Billionaire Ex-National Security Chief Investigated For “Serious Disciplinary Violation”

http://www.zerohedge.com/news/2014-07-29/chinas-billionaire-ex-national-security-chief-investigated-serious-disciplinary-viol

http://www.bbc.com/news/world-asia-china-26349305?print=true

  1. (HK) – Is Hong Kong-US Dollar Link About To End? HKMA Buys $715 Million To Support Peg

http://www.zerohedge.com/news/2014-07-29/hong-kong-us-dollar-link-about-end-hkma-buys-715-million-support-peg

  1. (Australia) – Aussie supermarket retailer giant Woolworths trademark maps out financial services ambition

http://www.theage.com.au/business/retail/woolworths-trademark-maps-out-financial-services-ambition-20140730-zy7ak.html

Life

  1. The Cardinal Sins of Innovation Policy

http://blogs.hbr.org/2014/07/the-cardinal-sins-of-innovation-policy/

  1. The Most Important Factor Of Startup Success

http://techcrunch.com/2014/07/28/the-most-important-factor-of-startup-success/

  1. Why Victorinox still screws with the Swiss Army Knife; Keeping sharp through constant innovation: “We Swiss live in a small country with no resources. In the good times we need to prepare for the bad times. Nature has forced us to use our brains.”

http://www.brw.com.au/p/business/why_victorinox_still_screws_with_SWD5e8QqsyV3wpbD5DAVeI

  1. Performance Niches in Trading: The Rage to Master; Greatness is a function of how we approach life; the rage to master is a form of obsession

http://adamhgrimes.com/blog/rage-master/

http://traderfeed.blogspot.co.uk/2014/07/performance-niches-in-trading-rage-to.html

  1. Entrepreneurs’ focus is on livelihood; Four out of 10 new businesses in Korea are started as a means to make a living

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992691&cloc=joongangdaily|home|newslist1

  1. Poll: How introverted are you? The results

http://blog.ted.com/2014/07/14/poll-how-introverted-are-you/

  1. How Old Industries Become Young Again: Five indicators reveal when your sector is about to be transformed by dematurity

http://www.strategy-business.com/article/00270?gko=42973&cid=20140729enews&utm_campaign=20140729enews

  1. When the Caregivers Need Healing

http://www.nytimes.com/2014/07/29/health/when-the-caregivers-need-healing.html?ref=health&_r=0

  1. Just as Dangerous as We Think: “The Norm Chronicles: Stories and Numbers About Danger and Death” is a kinetic trip through the percentages of risk and the primacy of perceptions

http://www.nytimes.com/2014/07/29/health/book-review-the-norm-chronicles.html?ref=health

  1. The Norm Chronicles: Stories and Numbers About Danger and Death

http://www.amazon.com/Norm-Chronicles-Stories-Numbers-Danger/dp/0465085709/

  1. Teaching Teaching: Teachers shouldn’t be learning on the job as they go

http://www.nytimes.com/2014/07/29/opinion/joe-nocera-teaching-teaching.html?ref=opinion

  1. When It’s Cool To Have Nothing: Living a stripped-down life with few possessions is becoming popular – but critics point out that getting rid of stuff looks is a status symbol only if you have stuff to begin with

http://op-talk.blogs.nytimes.com/2014/07/28/when-its-cool-to-have-nothing/?ref=opinion

  1. 6 Ways To Take Care Of Your ‘Mental Hygiene’

http://www.businessinsider.sg/how-to-take-care-of-your-mental-hygiene-2014-7/

  1. 7 Timeless Lessons On Resilience From ‘Philosopher King’ Marcus Aurelius

http://www.businessinsider.sg/marcus-aurelius-meditations-2014-7/

  1. 3 Risks Every Leader Should Take: Be alone. Be misunderstood. Don’t be like everyone else

http://www.businessinsider.sg/risks-every-leader-should-take-2014-7/#.U9dJ4vmSxqU

  1. Tom Hiddleston Sent An Amazing Email To Director Joss Whedon After Reading ‘The Avengers’ Script For The First Time

http://www.businessinsider.sg/tom-hiddlestons-avengers-email-to-joss-whedon-2014-7/#.U9dLqPmSxqU

  1. Are superstar architects, who often work in cities they know little about, creating buildings that don’t mesh well with the surroundings?

http://www.nytimes.com/roomfordebate/2014/07/28/are-the-star-architects-ruining-cities-9

  1. The Creative Art of Selling a Book by Its Cover

http://www.nytimes.com/2014/07/29/books/peter-mendelsund-book-designer-debuts-as-a-writer.html

  1. To Optimize Talent, Sweat the Small Stuff; Lots of little changes aimed at enhancing employee engagement and mindfulness can create a big payoff

http://ww2.cfo.com/analytics/2014/07/optimize-talent-sweat-small-stuff

  1. The Dark Triad at work

http://www.smu.edu.sg/perspectives/2014/07/30/dark-triad-work#.U9hLm_mSxqU

  1. Debunking myths in revitalising Chinese languages

http://www.todayonline.com/print/720741

TMT

  1. Here’s what automakers have to gain from connecting cars to the internet; carmakers will be able to decide whether they really need to honor a warranty claim or whether the problem was the customer’s fault

http://qz.com/240628/heres-what-automakers-have-to-gain-from-connecting-cars-to-the-internet/

  1. (China/Tech) – China’s Baidu follows Google steer with self-driving car

http://www.ft.com/intl/cms/s/0/8b87c5f4-163b-11e4-93ec-00144feabdc0.html#axzz38p3CqhdE

  1. (China/Tech) – UnionPay Said to Hand Payment Firms Hefty Fines over Illegal Operations; Companies were caught charging businesses less than the agreed-upon fees to attract users

http://english.caixin.com/2014-07-28/100709780.html

  1. Facebook to shut down Gifts service in latest e-commerce shift

http://www.reuters.com/article/2014/07/29/us-facebook-gifts-idUSKBN0FY2HQ20140729

  1. Does Your Company Collect Data – Or Hoard It? At what point does a company’s data collection become self-defeating?

http://sloanreview.mit.edu/article/does-your-company-collect-data-or-hoard-it/

Consumer

  1. L’Oréal make-up goes virtual for selfie age

http://www.ft.com/intl/cms/s/0/e980243e-13ee-11e4-8485-00144feabdc0.html#slide0

Healthcare

  1. Drugmakers juggle non-core assets

http://www.ft.com/intl/cms/s/0/94b69be8-1675-11e4-8210-00144feabdc0.html?siteedition=intl#axzz38p3CqhdE

Investing Process

  1. Polycentricity, Self-Governance, and the Art & Science of Association

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2436647

  1. The Shorting Premium and Asset Pricing Anomalies

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2471175

Commodities

 

Energy

 

 

When Heirs Become Major Shareholders in Asia’s Family Business Groups: Accounting Tunneling or Valuation Takeoff?

 image001

“Bamboo Innovators bend, not break, even in the most terrifying storm that would snap the mighty resisting oak tree. It survives, therefore it conquers.”

BAMBOO LETTER UPDATE | July 28, 2014
Bamboo Innovator Insight (Issue 42)

  • The weekly insight is a teaser into the opportunities – and pitfalls! – in the Asian capital jungles.
  • Get The Moat Report Asia – a monthly in-depth presentation report of around 30-40 pages covering the business model of the company, why it has a wide moat and why the moat may continue to widen, a special section on “Conversation with Management” to understand their thinking process in building up the business, the context – why now (certain corporate or industry events or groundbreaking news), valuations (why it can compound 2-3x in the next 5 years), potential risks and how it is part of the systematic process in the Bamboo Innovator Index of 200+ companies out of 15,000+ in the Asia ex-Japan universe.
  • Our paid Members from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing.
 

Dear Friends and All,

 

Our presentation at the Value Unplugged event organized by John and Oliver in Naples and at the Value Investing Summit (VIS) by Ciccio in Trani went well based on the feedback of the participants. We are very honoured to be invited back to speak again at the event, including at a potential new event that is to be held and organized in Denmark by the country’s top value investor. It is really wonderful to be able to meet up with friends from around the world in person and to get to understand one another better. We look forward to sharing more insights with like-minded value investors who appreciate the value of having a knowledge-based process in the marathon of value investing and life. The Value Unplugged presentation material and video “To Catch an Asian Snake: Detecting Accounting Fraud Ahead of the Curve” will be made available for our Moat Report Asia Members.

 

Warm regards,
KB

The Moat Report Asia

www.moatreport.com

——–

 

When Heirs Become Major Shareholders in Asia’s Family Business Groups: Accounting Tunneling or Valuation Takeoff?

 

“For investors who do not rely on professional advisers, stocks are usually more than just the abstract ‘bundles of returns’ of our economic modes. Behind each holding may be a story of family business, family quarrels, legacies received, divorce settlements, almost totally irrelevant to our theories of portfolio selection. That we abstract from all these stories in building our model is not because the stories are uninteresting but because they may be too interesting and thereby distract us from the pervasive market forces that should be our principal concern.”

– Nobel laureate Merton Miller (1923-2000)

 

The silent but fierce battle to control one of Asia’s top family business groups with sales of over $80 billion and asset of $86 billion has intensified last week as two sons worked to become the handpicked successor of their patriarch father who turned 92 this October and who had underwent emergency surgery late last year after falling down.

 

Could this be a precursor to the succession and in-fighting risk that will take place in Asia’s family business groups which could override any advantages of the family model? Are there opportunities arising from capitalizing on the uncertainty surrounding the event?

 

The opening quote and investment insight by Merton Miller could ring true for regimes where the dominant corporate form are companies with dispersed, widely-held shareholding structure, but may be less relevant in Asia where entrepreneurial firms are typically tightly-controlled by a family. Many patriarchs in Asia built their fortunes with risky bets in the early post-war years, when Hong Kong was a desolate rock and Singapore was a swamp. They have shifted to become “rent-collectors” from property and related businesses (ports, hotels, retail) or from government concessions (electricity, telco, gas, casino licences). The simplicity of the underlying businesses may account for the ferocity of the family battles since it does not require sacrifice and knowhow for those who take over the business to continue to make money. Asian patriarchs and matriarchs add value in ways that do not appear on balance-sheets through their relationship-based deal-making capabilities. These strengths and tacit knowledge are difficult to bequeath or transfer to one’s children, and these specialized and intangible assets cannot be capitalized easily in the markets. This is why Asian empires systematically struggle to outlive their founders and succession tended to coincide with tremendous destruction of value.

 

Importantly, many of the crown-jewel assets in Asia are either not in the listed vehicles (these are in the private holdings of the tycoons) or that a tycoon has multiple vehicles through complicated shareholding structure for the family to exercise controlling rights with minimal capital. Thus the questions: Why is it that when heirs become major shareholders in Asia, the succession of controlling equity stake to next generation is often associated with tunneling of resources through related-party transactions to firms where the heir holds significant equity stake? What are the accounting properties around the leadership/ownership succession? We will examine these issues, which have important implications for value investors in Asia in the next decade, through the case of Korean and Hong Kong family business groups and two accounting research papers.

 

But first, back to the silent battle. Last week, more than 10 affiliates of Lotte Group exchanged part of their shares with one another to streamline the complex cross-shareholding structure ahead of the implementation of a law banning it. Early this month, the Fair Trade Commission (FTC) had rebuked Lotte Group for having cyclical shareholding structures within the group that form an intricate web for controlling its affiliates. Among the 74 affiliates, Lotte Confectionery (004990 KS, MV $2.8bn), Lotte Shopping (023530 KS, MV $9.4bn) and the unlisted Lotte Hotel, Asia’s third largest hotel chain, are the most important assets in terms of business and the governance structure. Lotte is one of the top conglomerates in Korea and Asia, thanks to its stable cash flow and unique portfolio composed of cash-rich industries. The two successors to the Lotte empire have been accumulating stakes in the key affiliate Lotte Confectionery since last year. Lotte Confectionery is up 31% this year and still trades at price-to-book of 1x. The power struggle and sibling rivalry was started decades ago when the patriarch Shin Kyuk-ho sent the elder son Shin Dong-ju to Japan and the younger Shin Dong-bin to stay in Korea. But the Korean operations have grown ten times bigger than the Jap ops in the past decades. The cooperative relationship between Japan’s and South Korea’s Lotte groups is cemented only by a marginal capital tie-up, so it could be terminated if the balance of power, underpinned by this capital alliance, tilts too far to one side.

image002

Lotte Confectionery (Kospi: 004990 KS) – Stock Price Performance, 1983-2014

image003

Inspired by the German author Goethe’s novel The Sorrow of Young Werther which Napoleon Bonaparte considered as one of the great works of European literature, Shin Kyuk-ho named Lotte Group after the character Charlotte in the book. Founded in 1948 as a chewing gum maker in Tokyo, Shin built Lotte with his marketing flair. Lotte later expanded to Korea with the establishment of Lotte Confectionery in Seoul in 1967, after Korea and Japan re-established diplomatic ties in 1965. Shin had gone to Japan in 1942 during the Japanese occupation period to study. Desperately wanting his career in literature, Shin overcame the disadvantage as ‘a Korean’ through his extraordinary diligence. He obtained investment from a Japanese who witnessed his diligence and built a factory that manufactured cutting oil in 1944. It was his first step as a businessman. However, he had to suffer hardships as his factory was completely destroyed by the bombs in the chaos of World War II. He was able to bounce back from the failure and now, Lotte grew to become Korea’s fifth largest chaebol in businesses ranging from snacks, beverages, department stores, to insurance, construction, amusement parks and hotels.

 

<Article snipped>

 

Is there an opportunity for value investors to accumulate Lotte Group’s key affiliates in the governance battle for control in the succession ahead?…… But first, we need to understand the accounting issues, specifically why the succession of controlling equity stake to next generation is often associated with tunneling of resources through related-party transactions to firms where the heir holds significant equity stake.

 

<Article snipped>

 

Lotte reminds us of the case of Vitasoy (345 HK, MV $1.3bn), in that most succession events are not smooth and that it takes an idea greater than oneself for different parties to work together harmoniously, especially during crisis periods.

 

Vitasoy was started by Dr. KS Lo with a little bean in 1940 at a factory located at Causeway Bay. KS (Kwee-seong) was the eldest son of Lo Chun-hing, a loyal employee of Eu Tong-sen, patriarch of Singapore’s Eu Yan Sang (SGX: EYSAN SP, MV $290m). In the late 1930s, KS returned to the Chinese mainland and HK to seek out opportunities and was surprised to see severe malnutrition in children caused by diseases in both places. Having got the idea that soybeans could be turned into a milk-like drink with high protein content after attending a talk entitled “Soya Bean: The Cow of China” presented by the American Julean Arnold, KS experimented in 1939 and successfully produced a cheap, nutritious, high-protein soya milk.

 

<Article snipped>

 

Both Shin and KS were inspired by the idea larger than oneself: to bring about kindness and betterment to children and people in ruined lands through food technology and quality products and services. This larger idea has galvanized the trust and support among the community of customers, business partners and suppliers throughout the years. Whenever this core value is diluted, without the accompanying culture of trust and decentralization to empower the people in the pursuit of growth, globalization, size and diversification, chinks in the mighty armour start to appear and can deteriorate quickly into major problems that would bring down the organization.

 

As value investors in Asia over the decade plus, we have often observed that the emperor-like and FFF (fight-for-favors) culture in companies is the #1 factor that has resulted in tremendous value destruction around the succession event and why the business does not scale further. There will be doubts about the ability, intention, motivation and fairness in rewards with people not trusting another to act in good faith; there will be envy, anger, and schadenfreude (joy at someone’s misery). How can a system be in place to eliminate doubt, envy, and schadenfreude?

 

<Article snipped>

 

Beyond the financial numbers, we like to look for this intangible idea larger than oneself to overcome and transcend beyond the vicious political fight for distributive tangible pools of money and power in Asia’s family business groups. Only then can we be more certain that accounting tunnelling is less likely to occur and valuation takeoff will take place.

 

To read the exclusive article in full to find out more about the accounting tunneling risks when heirs become major shareholders, as well as the inspiring stories of Korea’s Lotte Group/Shin and HK’s Vitasoy/KS, please visit:

 

  • When Heirs Become Major Shareholders in Asia’s Family Business Groups: Accounting Tunneling or Valuation Takeoff?, Jul 28, 2014 (Moat Report AsiaBeyondProxy)

 

The Moat Report Asia
 

“In business, I look for economic castles protected by unbreachable ‘moats’.”

– Warren Buffett

 

The Moat Report Asia is a research service focused exclusively on competitively advantaged, attractively priced public companies in Asia.Together with our European partners BeyondProxy and The Manual of Ideas, the idea-oriented acclaimed monthly research publication for institutional and private investors, we scour Asia to produce The Moat Report Asia, a monthly in-depth presentation report highlighting an undervalued wide-moat business in Asia with an innovative and resilient business model to compound value in uncertain times. Our Members from North America, the Nordic, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing.

 

Learn more about membership benefits here: http://www.moatreport.com/subscription/

 

  • Individual subscription at $1,994 per year:

https://www.moatreport.com/individual-subscription/?s2-ssl=yes

 

Our latest monthly issue for the month of July investigates an Asian-listed company who’s the global #1 and #2 maker of two types of patient monitoring devices for both clinical- and home-use. Founded in 1981 and listed in 2001, the company’s reliable manufacturing technology platform for over 30 years has enabled it to build a global durable franchise in the niche patient monitoring device market that has stable resilient growth and yet is experiencing potential disruptions led by its new innovation. A secret to its success is its in-house capabilities to combine Swiss design, high-precision electronics and sensors components with clinical healthcare to produce world-class products with cost competitiveness.The firm has competitive technology and patents especially its core competence of having an algorithm to allow fast reading/filtering of signals and outputting the accurate results in a short period of time. The company has the potential to consolidate the market further. The company is also a sticky ODM partner to reputable companies including Wal-Mart, Costco, CVS and it has a diversified customer base with none of the customers accounting for more than 10% of its sales. The company demonstrated that it has bargaining power over its powerful customers with the ability to build its own brand since 1998 (62% of overall sales). 91% of its sales are to developed markets in US and Europe. The company is trading at EV/EBIT 9.7x and EV/EBITDA 8.8x and has an attractive dividend yield at 5.6% and a strong balance sheet with net cash as percentage of market value and book equity at 23% and 47% respectively. The firm has also undertaken the unusual capital management program to reduce 10% of its shares outstanding in Sep 2012 to boost capital efficiency by utilizing the comfortable net cash position. The proactive shareholder-friendly stance backed by its strong net cash position should limit any downside in share price. The company’s terminal value and downside risk will be protected by giants such as J&J, Bayer, Abbott etc who wish to swallow it up to possess its valuable manufacturing technology platform and worldwide patents in algorithm-technology. The company’s worldwide patents in algorithm-technology has been commercialized into an innovative product series that is at the heart of its total solution service business model. This valuable intangible asset is not factored into long-term valuation. The innovative product with the algorithm measurement technology are not merely additional features; it “forces” the clinical community to adopt them as the standard, which in turn helps drive home-use penetration as patients seek a consistent and integrated healthcare experience. It transforms the product into a unique strategy that incorporates software development to create value-added services for health monitoring and collaborating with hospitals and governments on tele-healthcare projects. As a result of its wide-moat, the company has a far superior ROE at 20.9% that is nearly double that of its key giant conglomerate rival. When we compare EV/EBIT relative to ROE and ROA, the company is cheaper by as much as 120-150% when compared to its key giant conglomerate rival. The stock price of the company is down nearly 20% from its recent high in end March 2014 on profit-taking by short-term investors. Share price is back to May 2013 level, representing an attractive opportunity to take position in this long-term durable franchise. The stable long-term shareholdings and patient capital by the founder and the management team who together own around 48% of the equity has enabled the firm to adopt a very long-term approach to building its business and cultivating new growth areas. While he may sometimes be slightly over-optimistic and thinking too far ahead with his long-term opinions, this  idealistic engineer-visionary-philosopher has done a fantastic job in continuously defying the odds of many skeptics by growing the company from a small startup into one of the world’s leading patient monitoring equipment company. He is the rare Asian entrepreneur who was persistent in building his own brand despite the threat of offending his ODM customers. He was also early in cultivating and coordinating a global network with high-tech component, R&D and manufacturing in his home country, manufacturing, assembly and packaging in Shenzhen, China and medical R&D and clinical testing center in Europe, including making the difficult decision to establish a direct marketing sales force in Europe and North America given the high cost. Unlike most Asian business owners whose interest and focus in the core business starts to wane due to complacency from growing personal wealth and the inability to scale the core business, the founder is genuinely passionate in the company’s ability to add value to the patients and society. The firm can effectively run without the founder with the long-term corporate culture and management system in place, yet he can inject great value as the steward in new innovations; we believe that this combination is rare for an Asian company and deserves a valuation premium.

 

Our past monthly issues examine:

 

  • The world’s #1 ODM (Original Design Manufacturer) and global #5 manufacturer of a consumer healthcare device product that is used frequently, even daily, thus providing the foundation for stable recurring cashflow. This company is also a hidden champion in a niche product segment (50-55% of group’s sales) that has become a high-growth fashion product currently accounting for less than 10% of the overall industry. The company is able to mass-manufacture this niche product, but not the giants, because of its unique process IP in flexible manufacturing system and know-how to handle large-scale complex orders. The manufacture of this product itself is difficult to replicate and requires FDA/CE licenses because of its medical device nature and the entry barrier is not capital but the know-how and R&D expertise. In particular, the manufacturing integrates different fields of science including polymer chemistry, physics, optics, engineering, materials control, process control, microbiology, and, injection molding. The firm has also developed a proprietary system of tracking the manufacturing process of different sets of product so that if a quality issue arose, when and where the problem set of products was being produced could be swiftly identified, thus diminishing the scale and cost of product recall. This system has helped the firm win the long-term trust of its ODM customers to place stable large orders. The Big Four giants do not have such a system and have to incur substantial losses from product recalls. The company also possess its own brand which has many loyal followers and support in its home market where it enjoys a 30% market share and contributes to 25% of group’s sales while sticky ODM customers account for 75% of group’s sales, mainly from the Japan market. As a result of its wide-moat advantages, the firm enjoys a consistently high ROE of 41%, double or triple that of the giants. From FY07 onwards, even during the depths of the Global Financial Crisis in 2007/09, the firm has not raised equity. Since listing in Mar 2004, the company has only done one rights issue in May 2005. Also, it is able to sustain a strong stable cash dividend payout (>70% with 3% yield) with its healthy net-cash balance sheet (net cash $30m; net cash-to-equity ratio 23%) and proven management execution in prudent capex expansion to support sustainable quality earnings growth. M&A deals in the healthcare and medical device sector has been growing due to their strong defensive nature and giants seeking growth to overcome their own patent cliff. The firm will always be an attractive takeover target by giants who wish to swallow it up to possess its valuable flexible manufacturing system and know-how to fill their own missing competency gap and hence will enjoy long-term downside protection in its terminal value. In the battle between “ODM vs Brand”, we find the story of the company to be quite similar to that of TSMC (2330 TT, MV $103bn), now the largest ODM foundry in the world. “Skate to where the puck is going to be, not where it has been,” as hockey legend Wayne Gretzky advised. In our view, the profit and valuation premium in the value chain will start to skate to the “Inno-facturers” who are the hidden ODM innovators (the brand behind brands) consolidating the industry, such as TSMC and this company. While its valuation is not cheap with EV/EBIT (FY13) at 20.6x, when we compare EV/EBIT relative to ROE, the company is relatively cheap, by as much as 130-220% when compared to giants and other comparables. When we compare EV/EBITDA relative to ROE, the valuation gap is 90-160%. This long-term valuation gap implies that the company, with its far superior and sustainable ROE, could potentially double to $2.4bn, as it continues to consolidate its niche product segment and enter into a new product cycle of an innovative product whose patents are expiring in 2014/15 (US/worldwide) to make ASP/margin improvements in sustaining quality profits and cashflow. Its share price has dropped 18% from its recent high and underperformed the index by 26% in the last six months. This will present a buying opportunity for long-term value investors who can penetrate beyond conventional valuation metrics because of a deep understanding of its business model and underlying source of its wide-moat advantages. In Asia, many firms break apart or become value traps due to shareholder conflict, envy and differences in opinion on the business direction of the company. The stable long-term corporate culture infused by the late founder, who established the company in 1986 with the current executive chairman and 2 other key shareholders, to combine the energy and ideas of everyone to work hard to keep the business running forever is underappreciated.

 

  • The Home Depot of Asia which has the largest market share in its home country and now seeks to expand regionally. It is one of the few home improvement retailers in the world which is able to achieve a structural negative cash conversion cycle (CCC) at -39 days for resilient, recurring and sustainable operating cashflow to enable the expansion of its store network while keeping a healthy balance sheet. It is hard to achieve negative cash conversion cycle (CCC) as a home retailer as compared to a supermarket retailer as the product nature is more durable. Even Home Depot, Lowe’s and Bed Bath & Beyond (BBBY) are not able to achieve a negative CCC. Led by the capable owner-operators since 1995, the company is a pioneer in proactively creating awareness and demand in the minds of consumers that upgrading your home can be fun and in incremental affordable steps. Its creative branding has resulted in the firm to become the “first on customers’ mind”, or what Charlie Munger elucidated as the “psychological wide-moat” advantage. 80% of sales are generated customers looking for home improvement and renovation ideas and solutions.  Growth is supported by the management’s proven ability to identify and cater to dynamic changes in customer preferences. The firm’s comprehensive pre and aftersales service creates brand loyalty and sustains long-term sales. The merchandizing management is tailored to the peculiarities of customer preferences in each area to drive same store sales growth with creative customization by store, location, season and events. Its key strategy to expand its profit margin is to increase its higher-margin house brands and product-mix management. Its EBITDA/sqm of $400/sqm was higher than Home Depot until Home Depot experienced a rebound last year to $500/sqm. The firm’s resilient sales are supported by its unrivalled network of diverse locations throughout the country. Its bold vision and successful “Blue Ocean” execution in the highly fragmented second-tier markets has created a powerful wide-moat advantage that will last for many years to come. In short, the management have proven their ability to execute in difficult market and industry conditions especially in the past 5 to 7 years during the 2007/09 global financial crisis with the firm emerging much stronger. The Illinois Institute of Technology engineering graduate and quiet billionaire owner behind the home retailer is one of the few Asian business tycoons who has the thirst to scale up the business in a sustainable way, as opposed to opportunistic ventures, having been largely influenced by his early years experience observing the success of American wide-moat firms. If we can adjust the EV/EBITDA valuation metric to reflect the CCC, the company’s EV/EBITDA of 18.5x will be lower at 10-11x, while Home Depot’s EV/EBITDA 11x will be higher at 13x. Noteworthy is that Home Depot has a negative free cashflow throughout FY1989-2001 (13 consecutive years!) and yet market cap has climbed from $1.5bn to $103bn. Home Depot compounded despite the ugly valuations during the capex ramp-up. This once again highlights that the power of wide-moat is often underappreciated, misunderstood and overlooked. When Home Depot generated $180m in operating cashflow in FY1992, quite similar to this Asian firm now, Home Depot is valued at $5bn (vs $3bn). Store network is expected to double in the next 4-5 years, representing a potential doubling in market value.

 

  • The Northeast Asian-listed company who is the world’s largest maker of an essential component with applications in apparel, shoes, diapers, car seats etc. All top 20 global athletic shoe brands, including Nike, Adidas, Reebok, Sketchers, UnderArmor are customers and this Asian innovator with R&D capabilities has forged long-term “spec-in” partnerships with them. Its broad product offering is protected by over 110 patents. By locating its Pan-Asian production plant network in China, Taiwan, Vietnam and Indonesia close to its major clients, including sales/customer service centers and warehouses in US and Europe, the firm is better positioned to understand their requirements, deliver fast and meet their needs. While top 10 athletic shoe brands account 40% of its revenue, the firm has a diversified clientele base of over 10,000 customers, giving it resilience and growth with both the established and emerging brands as clients. The company is trading at PE14e 12x, EV/EBITDA 7.1x and EV/EBIT 10.6x with a dividend yield of 3.9%. Interestingly, its EBITDA margin is double that of Adidas and its 8.7% net margin is higher than Adidas’ 5.4%, though below Nike’s 9.8%. Given the tipping point of its Pan-Asian production network and contributions from its new products and as capex tapers off in the next few years, free cashflow could be around $50-60m and applying a P/FCF of 15x would yield a market value of $750-900m,, representing apotential upside of 100-150%. Thus, the firm offers a similar quality growth trajectory to Nike/Adidas with its unique knowledge-based business model and yet trades at a more attractive valuation and higher dividend yield as downside protection.

 

  • The Middleby of Asia commanding a dominant market share of over 80% in hypermarkets, 50% in chain outlets, 30% in 4- to 5-star hotels in China and an overall 30% in its home market. Yet, no single customer accounts for more than 5% of its revenue. Just to recall for value investors, NYSE-listed Middleby, with its sleepy and boring business, has compounded 100-fold from around $50m to $5.7bn since its tipping point in 1999. The founders of this Asian family business demonstrated clear dedication in building up the company with its wide-moat business model backed by a strong and unique distribution/marketing network in finding, winning and binding new customers to build massive brand equity and long-lasting relationships with clients over time. Their devotion to its core product for nearly 20 years results in maximum problem-solving skills, innovative strength and product leadership and hence, to ever greater customer benefit that will protect the company to consolidate the fragmented market and provide ample opportunities to continue its profitable growth. The company is currently trading at PE13e 15.8x and an undemanding EV/EBIT 10.1x and EV/EBITDA 9.5x and its growth potential based on its unique business model is not priced in. There is a structural re-rerating of niche business models with (1) diversified client base, (2) steady revenue streams, (3) lean capex requirements that creates ample free cashflow and defensive growth. Based on PE, P/CFO and EV/EBIT, the company is trading at a 40-50% discount to the foreign listed comparables despite more efficient use of assets in generating profits and cashflow. It has an attractive 7% earnings yield growing at 20% over the next 3-5 years and a 3.8% dividend yield that is supported by its strong cashflow generation ability, steady revenue stream and lean capex requirements to limit downside risks in valuation. Based on the growth plans to penetrate new product and customer segments; build its third plant in India in addition to the ones in its home market and in China; and potential bolt-on acquisition opportunities with its healthy balance sheet in net-cash position, it has the potential to double its operating cashflow in the next 3-5 years and market value could double, representing an upside potential of 100-140%.

 

  • An emerging Asian Walgreens which is a top 3 community pharmacy operator in its home market. Walgreens is a classic neglected American compounder up over 272-fold to $54 billion from under $200m as it quietly consolidates the market. Over the decade, we observed that it is difficult to scale services-based businesses without an entrepreneurial mindset, committment and execution and thebold and unique management system of the company since 2000 allowed the pharmacists to be part-owner of the business which will lead to increased level of commitment and an owner’s mindset in growing the business for the long-term in the community. The firm has strong cash generation ability due to its negative cash conversion cycle (CCC) in the business model to help the business stay resilient during difficult times and to fund capex needs internally without straining the business model scalability as the network expands. The centralized logistics system provide regular deliveries to all of its community pharmacies enables the outlets to maximize retail space without the need to have space to keep stocks. This also enables the community pharmacies to optimize retail space to carry a wide range of products which is important as consumers increasingly have top-of-mind recall for the company as the destination to go to for their healthcare needs. Like Walgreens, the company believed in the power of embedding technology into the business model to better compete and its financial and warehousing/inventory management systems are integrated with its in-house POS (point-of-sale) system which is linked among all its community pharmacies and head office via virtual private network. The company is founded by fivecollege friends who were somewhat frustrated that their pharmacy degrees were underappreciated and under-rewarded as compared to their medical degree counterparts even though they had studied hard for 4-5 years and had in-depth medical knowledge. They were eager to prove themselves that they are as capable, if not more so. This restless spirit to prove their capabilities resulted in them coming together to be entrepreneurs and they wish to provide the platform for similar restless pharmacists to apply their hard-earned knowledge acquired in the university. We find that this common purpose and camaraderie spirit is rare in Asian companies and makes the company unique to scale up sustainably. The company is currently trading at a EV/EBIT of 13.9x and EB/EBITDA 12.6%. In the next two to three years as the company expands its network of outlets, operating cashflow (CFO) could increase 50-60% and a re-rerating could result in a doubling in market value.

 

  • An Asian-listed pharmaceutical company which has a dominant franchise in a neglected but growing disease and is a leader with a domestic market share of 49% in this niche segment and is the only fully-integrated player amongst the few pre-qualified WHO firms,giving it >30% EBITDA margin, better pricing power compared to the competition, and significant advantage over other players in ramping up the global business from the current 30% market share in the most-common treatment drug (vs Novartis 50%). Furthermore, the pharma company has the second-highest GP/TA (gross profit/ total asset) ratio in the industry at 56.3% and the most conservative accounting practice in the industry which “depresses” earnings relative to its peers i.e. it is the only domestic firm which expenses, and does not capitalize, all R&D. With the new plant for formulations export to US, the deepening of the niche drug franchise, growing wins in chronic pain and other niche areas and the commercialization of the potential blockbuster product of blood thinner by FY16/17, EBITDA could potentially double to $200m in the next 4-5 years, triggering a valuation re-rating to a market value of $3.4bn, a 130% upside.

 

  • An Australian-listed company with market value $405m, EV/EBITDA 7.5x, EV/EBIT 10x, div 3%, 70% domestic market share whose management made the controversial bold decision to stop overseas exports in order to focus on cultivating the higher-margin domestic market with innovative marketing strategy and new products and is potentially doubling its supply in the next 3-5 years. It is in its 10thyear of listing after piling the foundation in consolidation, investment, rationalization for its next stage. It has an all-time low debt-equity position 18.6% with healthy balance sheet. “Buffett of Nordic” recently increased position between Apr-Sep this year in the peer comparable of the company and the billionaire investor announced in Nov an acquisition of a rival in a wave of global consolidation andwith the view on a sustained recovery in product prices.

 

  • Northeast Asia-listed company with global #1 market share leadership in 4 different products, including making the components for an innovative consumer product whose sales have climbed from $90 million to $526 million in the recent three years. The company is a hidden global consolidator with underappreciated growth. The stock is trading at PE 11.5x, EV/EBITDA 9x and generates a sustainable dividend yield 5.75%.

 

  • Taiwan and Southeast-Asian-listed entrepreneurial company, both with a dominant 80% domestic market share and have innovative business models to generate substantial cashflow to support both expansion and a 4-5% dividend yield.

 

  • There is also a behind-the-scene conversation with the CEOs of the companies to understand their thinking process in building up the business.

 

The Moat Report Asia Members’ Forum has been getting penetrating quality dialogues from our subscribers. Questions range from:

 

  • The nuances of internal dealings in Asia, including the case discussion of the recent deal in which HK billionaire’s Lee Shau-kee Henderson Land acquiring Towngas or Hong Kong & China Gas (3 HK) from his family holdings, seemingly déjà vu from the early Oct 2007 transaction when the market peak.
  • The case of F&N Singapore spinning out its property unit FCL Trust and getting “free” special dividend-in-specie and the potential risk in asset swap restructuring to deleverage the hidden debt in the entire Group balance sheet.
  • The dilemma of whether to invest in a Southeast Asian-listed company and hidden champion with a domestic market share of 60% due to family squabbles and a legal suit over the company’s ownership.
  • Discussion of the wise and thoughtful 107-year-old Irving Kahn’s investment into a US-listed but Hong Kong-based electronics company with development property project in Shenzhen’s Qianhai zone and the possible corporate governance risks that could be underestimated or overlooked, as well as their history of listing some assets in HK in 2004.. This is also a case study of “buy one get one free” in John’s highly-acclaimed book The Manual of Ideas in which the “free” property is lumped together with the (eroding) core business to make the combined entity look cheap and undervalued. What are the potential areas that value investors need to watch out for when adapting the SOTP (sum-of-the-parts) valuation method in Asia?
  • And many more intriguing questions.

 

Do find out more in how you can benefit from authentic and candid on-the-ground insights that sell-side analysts and brokers, with their inherent conflict-of-interests, inevitable focus on conventional stock coverage and different clientele priorities, are unwilling or unable to share. Think of this as pressing the Bloomberg “Help Help” button to navigate the Asian capital jungle. Institutional subscribers also get access to the Bamboo Innovator Index of 200+ companies and Watchlist of 500+ companies in Asia and the Database has eliminated companies with a higher probability of accounting frauds and  misgovernance as well as the alluring value traps.

 

Professional Development Workshops for Executives and Lifelong Learners
 

Our 8th run of the series of workshop From the Fund Management Jungles: Value Investing Exposed and Explored – (Part 1) Moat Analysis, (Part 2) Tipping Point Analysis and (Part 3) Detecting Accounting Fraud – on 14 June 2014 has been well-received with serious value investors, professionals, and serious lifelong learners attending, with some who flew in from Jakarta and KL!..

 

Our 9th workshop will be on Detecting Accounting Fraud Ahead of the Curve sometime later in the year.

 

Thank you for your support all this while!

 

 

Thank you so much for reading as always.

 

Warm regards,

KB Kee

image004

Managing Editor

The Moat Report Asia

Singapore

Mobile: +65 9695 1860

 

A Service of BeyondProxy LLC

1608 S. Ashland Avenue #27878

Chicago, Illinois 60608-2013

Other offices: London, Singapore, Zurich

 

 

P.S.1 Here is a little more about my background:

KB Kee has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company.

 

He holds a Masters in Finance and degrees in Accountancy and Business Management, summa cum laude, from Singapore Management University (SMU) and had also published articles on governance and investing in the media, as well as published an empirical research paper Why ‘Democracy’ and ‘Drifter’ Firms Can Have Abnormal Returns: The Joint Importance of Corporate Governance and Abnormal Accruals in Separating Winners from Losers in the Special Issue of Istanbul Stock Exchange 25th Year Anniversary Best Paper Competition,Boğaziçi JournalReview of Social, Economic and Administrative Studies, Vol. 25(1): 3-55. KB has also presented his thought leadership as a keynote speaker in global investing conferences. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic, industry trends, and detecting accounting frauds in Singapore, HK and China, and had taught accounting at the SMU where he is currently an adjunct lecturer.

 

P.S.2  Why do I care so much about doing The Moat Report Asia for you?

My personal motivation in embarking on this lifelong journey has been driven by disappointment from observing up close and personal the hard-earned assets of many investors, including friends and their families, burnt badly by the popular mantra: “Ride the Asian Growth Story!” Iwitnessed firsthand the emotional upheavals that they go through when they invest their hard-earned money – and their family’s – in these “Ride The Asian Growth Story” stocks either by themselves or through money managers, and these stocks turned out to be the subject of some exciting “theme” but which are inherently sick and prey to economic vicissitudes. They may seem to grow faster initially but the sustainable harvest of their returns is far too uncertain to be the focus of a wise program in investment. Worse still, the companies turned out to be involved in accounting frauds. Their financial numbers were “propped up” artificially to lure in funds from investors and the studiously-assessed asset value has already been “tunnelled out” or expropriated. And western-based fraud detection tools and techniques have not been adapted to the Asian context to avoid these traps.

 

After a decade-plus journey in the Asian capital jungles, it has been somewhat disheartening as I observe many fraud perpetrators go away scot-free and live a life of super luxury on minority investors’ hard-earned money. And these perpetrators make tempting offers to various parties in the financial community to go along with their schemes. When investors have knowledge in their hands, we have a choice to stay away from these people and away from temptations and do the things that we think are right. With knowledge, we have a choice to invest in the hardworking Asian entrepreneurs and capital allocators who are serious in building a wide-moat business.

 

CONNECT WITH US  image005 image006 image007 image008 image009
MOAT REPORT ASIA    OUR TEAM    SUBSCRIBE    MEMBERS    CONTACT US

The Moat Report Asia
A Service of BeyondProxy LLC
1608 S. Ashland Avenue #27878
Chicago, Illinois 60608-2013

Other offices: London, Singapore, Zurich

 

Morning Bamboo Insight: 29 Jul 2014

Morning Bamboo Insight: 29 Jul 2014

Macro

1. Asset bubbles could deflate global recovery

http://www.afp.com/en/news/asset-bubbles-could-deflate-global-recovery

2. The Real Raw Material of Wealth; The moral of the story is that adding value to raw materials is one path to diversification, but not necessarily a long or fruitful on

http://www.project-syndicate.org/print/ricardo-hausmann-advises-poor-countries-not-to-focus-solely-on-adding-value-to-natural-resource-exports

3. How Risk Management Can Spawn Competitive Advantage; CFOs should have the notion of competitive advantage on their minds when they consider the values and goals of their companies’ enterprise risk management

http://ww2.cfo.com/risk-management/2014/07/risk-management-can-spawn-competitive-advantage/

Asia Pacific

1. (Japan) – Abenomics Leading To Crisis? Post-‘Collective Security,’ With Support Plunging, Abe Gambles On Casinos

http://www.forbes.com/sites/stephenharner/2014/07/27/abenomics-leading-to-crisis-post-collective-security-with-support-plunging-abe-gambles-on-casinos/print/

2. (HK/China) – Two Disappearing Chairmen At Hong Kong Stock Exchange Underscore Investment, Governance Risks

http://www.forbes.com/sites/russellflannery/2014/07/27/two-disappearing-chairmen-at-hong-kong-stock-exchange-underscore-investment-governance-risks/print/

3. (China) – China’s Solution To “Property Companies Facing Huge Debt Burdens”: Much More Debt

http://www.zerohedge.com/news/2014-07-28/chinas-solution-%E2%80%9Cproperty-companies-facing-huge-debt-burdens%E2%80%9D-much-more-debt

4. (India/Tech) – Tata Consultancy Services Manages Its Size to Stay Agile; CEO Natarajan Chandrasekaran Promotes Democratic Decision-making Within Units

http://online.wsj.com/articles/tata-consultancy-services-manages-its-size-to-stay-agile-1406474692

5. (India) – New Poverty Formula Proves Test for India; Country Struggling With How To Define Poverty

http://online.wsj.com/articles/new-poverty-formula-proves-test-for-india-1406487289?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702304581004580055602538598566.html

6. (Australia/Consumer) – Solomon Lew accepts Country Road $200m offer, ending 17 year battle with South African retailer Woolworths

http://www.theage.com.au/business/retail/solomon-lew-accepts-country-road-offer-ending-17-year-battle-20140725-zwyys.html

7. (Isia) – Indonesia’s Widodo faces huge reform challenge; “The parliament is very hostile – if Jokowi wants good government, he would have to imprison half the lawmakers. He could easily be blocked by them,”

http://www.channelnewsasia.com/news/asiapacific/indonesia-s-widodo-faces/1284704.html#

8. (Korea) – S. Korean carmakers have succeeded in their game plan

http://www.thestar.com.my/Business/Business-News/2014/07/26/S-Korean-carmakers-have-succeeded-in-their-game-plan/

9. (China) – Probes and propaganda: Xi’s double strategy to consolidate power

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140728000004&cid=1101

10. (Taiwan) – Taiwan Minister presses for real estate transaction tax to prevent speculative investment in the housing market

http://www.chinapost.com.tw/print/413436.htm

11. (China) – China launches global ‘fox hunt’ for corrupt officials; Beijing vows to drive corrupt officials from their overseas refuges in a bid to save the Chinese Communist Party from extinction

http://www.telegraph.co.uk/news/worldnews/asia/china/10991255/China-launches-global-fox-hunt-for-corrupt-officials.html

12. (China) – Petitioners can no longer ‘seek the emperor’; A group of villagers from Fujian province found out the hard way that they no longer can petition the central government for help directly

http://news.asiaone.com/print/news/asia/petitioners-can-no-longer-seek-emperor

13. (China) – Chinese Corruption Probe Stretches Into Canada; Billion-Dollar Oil-Sands Project Is Left in Limbo

http://online.wsj.com/articles/chinese-corruption-probe-stretches-into-canada-1406588882

14. (Korea) – Seoul’s Economics Go Flat; Another major metropolis fails the Uber test

http://online.wsj.com/articles/seoul-s-economics-go-flat-1406566298

15. (Asean) – Asean’s Infrastructure Crisis; Leaders need to step up before inadequate infrastructure cripples the region’s economic potential

http://online.wsj.com/articles/groff-aseans-infrastructure-crisis-1406566174

Life

1. Book Review: ‘Rogue Elephant’ by Simon Denyer; The average Indian earns less than the average Chinese. But it’s in New Delhi-not Beijing-where you can call the prime minister an idiot without worrying about a knock on the door

http://online.wsj.com/articles/book-review-rogue-elephant-by-simon-denyer-1406496211

2. What The Wright Brothers Could Teach Today’s Innovators About Solving Problems

http://www.fastcodesign.com/3033613/what-the-history-of-aviation-could-teach-todays-innovators-about-solving-problems

3. European lessons for S’pore’s apprenticeship system

http://www.todayonline.com/print/717076

4. 8 Top Business Books From 2014 Summed Up In A Paragraph

http://www.valuewalk.com/2014/07/top-business-books

5. Michael Mauboussin: The True Measures Of Success

http://www.valuewalk.com/2014/07/michael-mauboussin-true-measures-success

http://cdn1.valuewalk.com/wp-content/uploads/2014/07/HBR_True-Measure-of-Success.pdf

6. Heads or Tails? Either Way, You Might Beat a Stock Picker

http://www.nytimes.com/2014/07/27/your-money/heads-or-tails-either-way-you-might-beat-a-stock-picker.html?ref=business

7. How To Get Your Confidence Back

http://www.forbes.com/sites/work-in-progress/2014/07/24/how-to-get-your-confidence-back/print/

8. Why the Last Five Years of Your Life Have Disappeared? Feel Like Time Is Flying By and You’ve Got Nothing to Show for It? There Are Scientific Reasons for That

http://www.fastcompany.com/3032980/work-smart/why-the-last-five-years-of-your-life-have-disappeared

9. The VP of Devil’s Advocacy; The tenth man. If nine of us look at the same information and arrive at the exact same conclusion, it’s the duty of the tenth man to disagree

http://techcrunch.com/2014/07/27/the-vp-of-devils-advocacy/

10. A head for Ferragamo footwear: Members of the Italian shoemaking dynasty use strict rules to protect their father’s legacy

http://www.ft.com/intl/cms/s/0/1cea2a1c-13e6-11e4-b46f-00144feabdc0.html#axzz38iqWKxc5

11. ‘Hello there’: eight lessons from Microsoft’s awful job loss memo; Elop’s job-loss announcement is a case study in how not to write, think or lead

http://www.ft.com/intl/cms/s/0/013511fa-13dd-11e4-8485-00144feabdc0.html#axzz38iqWKxc5

12. The Upside to Morning Sickness; Uncomfortable symptoms of pregnancy linked to healthier babies, study finds

http://online.wsj.com/articles/the-upside-to-morning-sickness-1406563253

13. How to Cope When You and Your Partner Are Falling out of Love; Experts say when a trait you used to adore in your partner starts driving you away, it’s a “fatal attraction”

http://online.wsj.com/articles/how-to-cope-when-you-and-your-partner-are-falling-out-of-love-1406588472

TMT

1. (India/Tech) – India prepares for ‘big bang’ in smartphone use

http://www.ft.com/intl/cms/s/0/15942a48-0e2c-11e4-85ab-00144feabdc0.html#axzz38kSdAuDS

2. Cisco CEO: Why the future of the Internet is already here

http://fortune.com/2014/07/16/cisco-ceo-why-the-future-of-the-internet-is-already-here/

3. (China/Tech) – Qualcomm’s Problems Just Got Worse As China Builds Chip Giant

http://www.forbes.com/sites/oliverbarron/2014/07/27/qualcomms-problems-just-got-worse-as-china-builds-chip-giant/print/

4. Can Reddit Grow Up? Efforts by the freewheeling online community to monetize without driving away its 114 million monthly users will require appealing to advertisers without sacrificing values like personal data privacy.

http://www.nytimes.com/2014/07/28/technology/can-reddit-grow-up.html?ref=business&_r=0

5. Tencent Holdings Gets Approval For New Private Bank; Did the New York Times Get Alibaba Excluded From China’s Private Bank Pilot?

http://www.forbes.com/sites/oliverbarron/2014/07/27/did-the-new-york-times-get-alibaba-excluded-from-chinas-private-bank-pilot/print/

http://www.forbes.com/sites/ywang/2014/07/25/tencent-holdings-gets-approval-for-new-private-bank/print/

6. (China/Tech/Healthcare) – Baidu’s Health Cloud Aims To Be The App Store For Distance Health Management

http://www.forbes.com/sites/ericxlmu/2014/07/25/baidus-health-cloud-aims-to-be-an-app-store-for-distance-health-management/print/

7. How Blynk, the fashionista of mobile apps, is stealing the startup spotlight

http://business.financialpost.com/2014/07/27/how-blynk-the-fashionista-of-mobile-apps-is-stealing-the-startup-spotlight/?__lsa=46a3-0f67

8. (Korea/Tech) – ‘Made in Korea’ revives in wearable device

http://news.mk.co.kr/breakingnews/view.php?no=1035320&year=2014&categorycode=MK400104

9. (China/Tech) – When China stops copying Western tech giants is when they should start worrying

http://qz.com/240943/when-china-stops-copying-western-tech-giants-is-when-they-should-start-worrying/

10. (Tech) – Fairchild is the Valley’s first trillion-dollar startup. It might even be the most important entrepreneurial company of the last hundred years

http://techcrunch.com/2014/07/26/the-first-trillion-dollar-startup/

11. Startups Are Finally Hacking Healthcare

http://techcrunch.com/2014/07/26/startups-are-finally-hacking-healthcare/

12. (China/Tech) – Tencent reportedly downsizing microblogging platform

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140727000094&cid=1103

13. (Taiwan/Tech) – Taiwanese companies are showing an increasing interest in building an industrial cluster to produce robots amid favorable global market conditions, but they still face challenges in integrating the supply chain

http://www.chinapost.com.tw/print/413446.htm

14. CIOs, Companies Sharpen Skills for ‘Internet of Things’ Future

http://blogs.wsj.com/cio/2014/07/28/cios-companies-sharpen-skills-for-internet-of-things-future/

15. What Amazon’s foray into 3D printing means for the industry

http://fortune.com/2014/07/28/what-amazons-foray-into-3d-printing-means-for-the-industry/

16. The Bear Case For Uber (Yes, There Is One)

http://www.forbes.com/sites/jeffbercovici/2014/07/28/the-bear-case-for-uber/print/

Consumer

1. Trendy Chipotle burritos show how pricing power belongs to the hip

http://www.reuters.com/article/2014/07/27/us-chipotle-mexican-prices-analysis-idUSKBN0FW0DE20140727

2. The girls’ construction toy taking America by storm; GoldieBlox founder Debbie Sterling is trying to quash gender norms; The toy system is based around a central character, Goldie, who “is not a genius but tries really hard”

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10994395/Goldieblox-The-girls-construction-toy-taking-America-by-storm.html

3. How the business of golf got stuck in the rough

http://business.financialpost.com/2014/07/26/how-the-business-of-golf-got-stuck-in-the-rough/

4. (China/Consumer) – Can Shenzhen handle two luxury good malls?

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140728000001&cid=1202

5. Britain’s turbulent shopping aisles; Change at Tesco reflects shifts in consumers’ behavior

http://www.ft.com/intl/cms/s/0/91ccbc9a-13f6-11e4-8485-00144feabdc0.html#axzz38iqWKxc5

6. (China/Consumer) – Safer food is an invention that should be freely copied; Stroll through a local market in China and there is little sign of quality control or hygiene

http://www.ft.com/intl/cms/s/0/1f4f5bb2-1420-11e4-b46f-00144feabdc0.html#axzz38iqWKxc5

7. Why Dollar Tree-Family Dollar Deal May Spark a Bidding War; Deal, Valued at $8.5 Billion, Comes Amid Fight for Budget-Conscious Consumers

http://dealbook.nytimes.com/2014/07/28/why-dollar-tree-family-dollar-deal-may-spark-a-bidding-war

http://online.wsj.com/articles/dollar-tree-to-buy-family-dollar-for-74-50-a-share-1406542575

http://www.businessweek.com/printer/articles/777296?type=bloomberg

8. Dollar Stores’ Growth Bill Coming Due; Together, Dollar Tree, Family Dollar and Dollar General operate about 24,000 stores, roughly one-third more than before the recession hit

http://online.wsj.com/articles/heard-on-the-street-dollar-stores-growth-bill-coming-due-1406576431

Healthcare

1. (Thai/Healthcare) – Dusit sees global room for growth; The international appeal of the Thai hospitality brand is opening opportunities for domestic chains to duplicate their success worldwide as space shrinks at home

http://www.nationmultimedia.com/business/Dusit-sees-global-room-for-growth-30239587.html

Investing Process

1. Research – Motivated Monitors: The Importance of Institutional Investors’ Portfolio Weights

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2463718

Commodities

1. Deutsche Bank, HSBC and Bank of Nova Scotia were accused in a lawsuit of rigging the price of billions of dollars in silver, an allegation similar to earlier suits involving the London gold fix

http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=147768&sid=42698654&con_type=1&d_str=20140728&fc=1

Morning Bamboo Insight: 28 Jul 2014

Morning Bamboo Insight: 28 Jul 2014

Macro

1. How Krugman Fudged the Truth on U.S. Debt; By mentioning only the baseline projection from the Congressional Budget Office, he downplayed the potentially dangerous growth of U.S. debt as a percentage of GDP.

http://online.barrons.com/news/articles/SB50001424053111904780504580043323337920154?mod=BOL_hp_mag

2. Texas tycoon Sam Wyly and the estate of his late brother Charles should pay damages totaling $1.41 billion for their role in a scheme that hid trades in companies they controlled using offshore trusts, the SEC said

http://www.reuters.com/article/2014/07/26/us-sec-wyly-idUSKBN0FV0ND20140726

3. Four years later, Dodd-Frank fails to turn banks into pet shops

http://fortune.com/2014/07/25/dodd-frank-volcker-risky-trading/

4. Heeding 1994’s Bond-Market Lesson

http://online.wsj.com/articles/heard-on-the-street-heeding-1994s-bond-market-lesson-1406494856

5. (Macro) – Trillion-dollar boo-boo: Bad governments cost investors a fortune

http://www.economist.com.libproxy.smu.edu.sg/news/finance-and-economics/21608754-bad-governments-cost-investors-fortune-trillion-dollar-boo-boo

6. BIG MAC INDEX: Kroners And Swiss Francs Are Still Overvalued

http://www.businessinsider.sg/big-mac-index-kroners-and-swiss-francs-are-still-overvalued-2014-7/#.U9W2H_mSxqU

7. Market mania: a ‘how-to’ guide to hot assets; From spotting the signs to timing your exit, profiting is tricky

http://www.ft.com/intl/cms/s/0/36c2fb44-0c4d-11e4-9080-00144feabdc0.html#axzz38j4SYiuh

8. Germany: A nation of tenants; Only 40 per cent of Germans own their homes, compared with 70 per cent of Britons

http://www.ft.com/intl/cms/s/0/14fe8e4c-1567-11e4-ae2e-00144feabdc0.html#axzz38j4SYiuh

Asia Pacific

1. (China/HK) – In Chinese shadow, HK fights for its future

http://www.bigstory.ap.org/article/chinese-shadow-hong-kong-fights-its-future-0

2. (China) – Retired military officials ordered to return extra homes

http://news.xinhuanet.com/english/china/2014-07/26/c_133512259.htm

3. (China) – State media promoting China’s leader Xi with intensity unseen since Mao era

http://www.washingtonpost.com/world/asia_pacific/state-media-promoting-chinas-leader-xi-with-intensity-unseen-since-mao-era/2014/07/24/f5517d88-1247-11e4-8936-26932bcfd6ed_story.html

4. (China) – What Do Chinese Dumplings Have to Do With Global Warming? In the 12 years between 1995 and 2007, China’s domestic refrigerator-ownership numbers have jumped to 95 percent from just 7 percent of urban families

http://www.nytimes.com/2014/07/27/magazine/what-do-chinese-dumplings-have-to-do-with-global-warming.html

5. (China) – Artful Dodge: Why Chinese Collectors Are ‘Borrowing’ Their Own Pieces

http://blogs.wsj.com/chinarealtime/2014/07/28/artful-dodge-why-chinese-collectors-are-borrowing-their-own-pieces

6. (China/Asia) – Winners and losers in the great Chinese rebalancing; Slowing investment and resilient consumption in China are changing Asia’s economic order

http://www.economist.com.libproxy.smu.edu.sg/news/finance-and-economics/21608749-slowing-investment-and-resilient-consumption-china-are-changing-asias-economic

7. (China/Consumer) – Diageo to write down Chinese spirit stake

http://www.ft.com/intl/cms/s/0/6ad46aa0-15a1-11e4-9e18-00144feabdc0.html#axzz38j4SYiuh

8. (Japan) – Shinzo Abe faces rising disenchantment in Japan

http://www.ft.com/intl/cms/s/0/d88ec8dc-1543-11e4-85bc-00144feabdc0.html?siteedition=intl#axzz38iqWKxc5

Life

1. Where Reason Ends and Faith Begins: In the face of uncertainty, being precise about what you don’t believe in can shore up your confidence in what you do

http://www.nytimes.com/2014/07/27/opinion/sunday/t-m-luhrmann-where-reason-ends-and-faith-begins.html?ref=opinion&_r=0

2. Failure Is Our Muse: Writers are the professional losers. Three hundred thousand books are published in the United States every year. A few hundred could be called financial or creative successes

http://www.nytimes.com/2014/07/27/opinion/sunday/failure-is-our-muse.html?ref=opinion

3. Branding gone wrong: When bad logos strike back

http://fortune.com/2014/07/21/branding-gone-wrong-when-bad-logos-strike-back/

4. What Rock Concerts Teach Us About Creating Strong Customer Bonds; “Love unfolds and reverberates between and among people and thereby belongs to all parties involved, and to the metaphorical connective tissue that binds them together”

http://www.forbes.com/sites/ruthblatt/2014/07/23/what-rock-concerts-teach-us-about-creating-strong-customer-bonds/print/

5. Innovation Emerges From Stories We Tell; Plato told us that “those who tell the stories rule society

http://www.forbes.com/sites/henrydoss/2014/07/25/innovation-emerges-from-stories-we-tell/print/

6. Love 2.0: Creating Happiness and Health in Moments of Connection

http://www.amazon.com/Love-2-0-Creating-Happiness-Connection/dp/0142180475

7. Many would tell you that if you show someone your heart, especially in business – you are soft. Weak. Prey in a world of predators. In the world of artists and making a business out of artistry, sometimes all an emerging artist has is heart

http://www.forbes.com/sites/lorikozlowski/2014/07/23/talenthouse-is-technology-connecting-the-established-and-emerging/print/

8. There’s A Major Revolution In The Book Industry That’s Letting Novelists Make A Living

http://www.businessinsider.sg/publishing-industry-revolution-is-helping-indie-writers-2014-7/#.U9RkkfmSxqU

9. To live in anxiety is to be human; Paradoxically, bravery is often found in those with excessive fears over other things

http://www.straitstimes.com/news/opinion/more-opinion-stories/story/live-anxiety-be-human-20140726

10. Tailspotting: Identifying and profiting from CEO vacation trips

http://lsr.nellco.org/cgi/viewcontent.cgi?article=1298&context=nyu_lewp

11. C.S. Lewis on Suffering and What It Means to Have Free Will in a Universe of Fixed Laws

http://www.brainpickings.org/index.php/2014/07/25/c-s-lewis-problem-of-pain-free-will/

12. Paula Scher on Process versus Outcome

http://www.farnamstreetblog.com/2014/07/paula-scher-on-process-versus-outcome/

13. Commonplace Books as a Source for Networked Knowledge and Combinatorial Creativity

http://www.farnamstreetblog.com/2014/07/networked-knowledge-and-combinatorial-creativity/

14. My Favorite Heuristic for Evaluating Relationships: The Antifragile Person

http://taylorpearson.me/the-antifragile-person/

15. Daniel Kahneman Explains The Machinery of Thought: The best we can do is a compromise: learn to recognize situations in which mistakes are likely and try harder to avoid significant mistakes when the stakes are high

http://www.farnamstreetblog.com/2014/07/daniel-kahneman-the-two-systems/

16. 75 Years In The Making: Harvard Just Released Its Epic Study On What Men Need To Live A Happy Life

http://www.feelguide.com/2013/04/29/75-years-in-th-making-harvard-just-released-its-epic-study-on-what-men-require-to-live-a-happy-life/

17. Don’t Send Your Kid to the Ivy League: The nation’s top colleges are turning our kids into zombies

http://www.newrepublic.com/article/118747/ivy-league-schools-are-overrated-send-your-kids-elsewhere

18. MasterCard’s Ajay Banga: Why ‘Yes, If’ Is More Powerful Than Saying No

http://knowledge.wharton.upenn.edu/article/mastercard-competitive-strategy/

19. Books – Decide: Work Smarter, Reduce Your Stress, and Lead by Example

http://www.amazon.com/exec/obidos/ASIN/1118554388/

TMT

1. Flood of Rivals Could Burst Amazon’s Cloud; Large Telecom and Startups Are Forging Into the Computing Services Business

http://online.wsj.com/articles/storm-clouds-over-amazon-business-1406328539

2. Apple attempts a return to innovation; ‘Apple’s research and development spending in the three months to June represented 4 per cent of sales – the highest ratio since 2006’

http://www.ft.com/intl/cms/s/0/9b615ac0-1344-11e4-8244-00144feabdc0.html#axzz38dBAEGxR

3. Advertising’s New Frontier: Talk to the Bot; Chat App Kik Unveils Feature That Lets Users Converse With Dozens of Brands

http://online.wsj.com/articles/advertisings-new-frontier-talk-to-the-bot-1406493740?mod=WSJ_LatestHeadlines

Consumer

1. The fallout after Comet crashed to earth: Claims of wrongdoing, legal short-cuts and corporate greed emerge in case over the collapse of the high street, electrical goods chain

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10992858/The-fallout-after-Comet-crashed-to-earth.html

Commodities

1. Abundant Grain Ripples Through U.S. Farm Industry

http://online.wsj.com/articles/abundant-grain-ripples-through-u-s-farm-industry-1406505224?mod=WSJ_LatestHeadlines

Energy

1. Sun, wind and drain: Wind and solar power are even more expensive than is commonly thought

http://www.economist.com.libproxy.smu.edu.sg/news/finance-and-economics/21608646-wind-and-solar-power-are-even-more-expensive-commonly-thought-sun-wind-and

2. UK shale licences attacked as ‘reckless race’

http://www.ft.com/intl/cms/s/0/5fc456c0-15ab-11e4-9e18-00144feabdc0.html#axzz38j4SYiuh

Evening Bamboo Insight: 27 Jul 2014

Evening Bamboo Insight: 27 Jul 2014

Macro

1. The Right Way to Invest Globally; U.S. Investors Have Ramped Up Their Holdings of Foreign Stocks, But Some Do It the Wrong Way

http://online.wsj.com/articles/the-right-way-to-invest-globally-1406308068

2. (Macro) – How the U.S. Stumbled Into the Drone Era; Before 9/11, Washington was still locked in debate over a now familiar weapon

http://online.wsj.com/articles/how-the-u-s-stumbled-into-the-drone-era-1406234812

Asia Pacific

1. (Isia) – President-elect Jokowi crowdsources his Cabinet

http://www.todayonline.com/print/715286

2. (China) – China’s Guangdong province removes over 850 ‘naked officials’ from their posts

http://www.reuters.com/article/2014/07/26/us-china-corruption-idUSKBN0FV04F20140726

3. (Isia) – The small-town Mr Clean turned ‘accidental’ president; Many like him because he has ‘the face of someone from the village’. He also has a personal fortune of $2.5m

http://www.ft.com/intl/cms/s/0/5391098c-1328-11e4-8244-00144feabdc0.html#axzz38Zq4vtCl

4. (India) – Jailed Indian tycoon seeks ‘deal room’ to negotiate hotels sale

http://www.ft.com/intl/cms/s/0/319e8014-13f7-11e4-8485-00144feabdc0.html

5. (China) – Hollywood transformed: How China is changing the DNA of America’s blockbuster movies

http://www.ft.com/intl/cms/s/2/60338b6c-1263-11e4-93a5-00144feabdc0.html#axzz38ZqmWSwE

6. (China) – Jim Chanos Has A Whole New Reason For Going Dark On China

http://www.businessinsider.sg/jim-chanos-on-china-anti-corruption-2014-7/#.U9OnFPmSxqU

7. (Korea) – SK Group in paradox; Absence of chairman felt little amid stable growth

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_161707.html

8. (Isia) – A Beacon of Hope, Change to a Positive Yet ‘Exhausted’ Indonesia; New Indonesian President Jokowi Can Bring Certainty, Consistency to Mining

http://www.thejakartaglobe.com/opinion/beacon-hope-change-positive-yet-exhausted-indonesia/

http://www.thejakartaglobe.com/opinion/new-indonesian-president-jokowi-can-bring-certainty-consistency-mining/

http://www.thejakartaglobe.com/opinion/editorial-killing-new-order-good-jokowi/

9. (Korea) – CJ Group, a conglomerate engaged in diverse industries from food production to entertainment, is starting to totter more than a year after Chairman Lee Jay-hyun, 54, was arrested and sentenced to four years in prison for embezzlement

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992567&cloc=joongangdaily|home|newslist1

10. (Isia) – Jokowi Cabinet in Focus as KPK Pushes for Clean Line-Up

http://www.thejakartaglobe.com/news/jokowi-cabinet-focus-kpk-pushes-clean-line/

11. (China) – Top 1% Control a Third of China’s Wealth while the bottom 25 percent control just one hundredth

http://www.thejakartaglobe.com/business/top-1-control-third-chinas-wealth/

12. (China/Myanmar) – China’s cancelled Burma railway is its latest derailment in southeast Asia

http://qz.com/240436/chinas-cancelled-burma-railway-is-its-latest-derailment-in-southeast-asia/

13. (China) – PetroChina trying to trim $1.23-billion payment to Athabasca; the Chinese company, rocked by a corruption scandal, is frustrated with the high price it paid for the oil sands assets and massive cost overruns

http://business.financialpost.com/2014/07/26/petrochina-trying-to-trim-1-23-billion-payment-to-athabasca-source/?__lsa=5ec1-8bc8

14. (China) – Transformers 4: Unhappy Chinese advertisers sue

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140726000067&cid=1202

Life

1. Was America’s revolution driven by political philosophers, or practical men reacting to events?

http://online.wsj.com/articles/book-review-natures-god-by-matthew-stewart-independence-by-thomas-p-slaughter-1406320774

2. Engineer whose vision helped build Brazil; Norberto Odebrecht, construction executive, 1920-2014

http://www.ft.com/cms/s/0/54a19ed8-1344-11e4-8244-00144feabdc0.html#axzz38ZqmWSwE

3. Lions and tigers and… CEOs? ‘The Wizard of Oz’ as leadership guide

http://fortune.com/2014/07/25/wizard-oz-leadership-lessons/

4. The Life and Times of a Bamboo Artist; “Every time you work with bamboo, you get something new”

http://forbesindia.com/printcontent/38307

5. Books – Toto’s Reflections: The Leadership Lessons from the Wizard of Oz

http://www.amazon.com/Totos-Reflections-Leadership-Lessons-Wizard/dp/1478718021/

6. Powerful and Coldhearted: It’s hard for powerful people to feel empathy

http://www.nytimes.com/2014/07/27/opinion/sunday/powerful-and-coldhearted.html?ref=opinion&_r=0

7. No Time to Think; It could be because human beings, when left alone, tend to dwell on what’s wrong in their lives. We have evolved to become problem solvers and meaning makers

http://www.nytimes.com/2014/07/27/sunday-review/no-time-to-think.html?ref=opinion

8. How anti-capitalist Michael Moore built a £30m fortune

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/10990422/How-anti-capitalist-Michael-Moore-built-a-30m-fortune.html

9. Fruits and Vegetables Are Trying to Kill You; Antioxidant vitamins don’t stress us like plants do-and don’t have their beneficial effect

http://nautil.us/issue/15/turbulence/fruits-and-vegetables-are-trying-to-kill-you

10. Books That Can Boost Your Portfolio: Business Classics Every Serious Investor Should Read

http://online.wsj.com/articles/books-that-can-boost-your-portfolio-1406420208

TMT

1. (India/Tech) – Text and Ride in India; A handful of start-ups in India have begun to use technology to more easily connect auto-rickshaw drivers with customers – a twist to Uber and Lyft

http://www.nytimes.com/2014/07/26/business/international/start-ups-in-india-streamline-auto-rickshaw-business.html

2. (China/Tech) – Baidu Finds China’s Mobile Money

http://online.wsj.com/articles/heard-on-the-street-baidu-finds-chinas-mobile-money-1406268963

3. Ready to Wear? The Internet of Things is headed for your wrist: smart watches and fitness bands. Who wins, who loses in wearable technology

http://online.barrons.com/news/articles/SB50001424053111904780504580043384005466508

4. Apple Secretly Acquired “Pandora For Books” Startup BookLamp To Battle Amazon

http://techcrunch.com/2014/07/25/apple-booklamp/

5. (China/Tech) – Qualcomm sales data seized amid antitrust probe in China

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140726000125&cid=1102

6. (China/Tech) – Xiaomi may have exaggerrated website hits to create hype

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140726000131&cid=1206

7. (China/Tech) – Alibaba maps out mobile internet strategy with AutoNavi

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140726000059&cid=1502

Consumer

1. How Hotcha hopes to become the Domino’s of Chinese takeaway; Chinese food over took fish and chips to became the country’s favourite takeaway this year. But there is no national rival to the big pizza chains – yet

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10981638/How-Hotcha-hopes-to-become-the-Dominos-of-Chinese-takeaway.html

2. Koreans’ love of good coffee is getting even more intense; Seoul has 284 Starbucks-the most in the world and seven more than New York City’s 277

http://qz.com/240922/korea-love-of-good-coffee-is-getting-even-more-intense/

Healthcare

1. Hearing Aids: Mimicking a fly’s aural mechanism may replicate its acuity for humans

http://www.economist.com/blogs/babbage/2014/07/fly-inspired-hearing-aids

Investing Process

1. Finding Value Companies the Schloss Way

https://www.aaii.com/computerized-investing/article/stock-screening-with-walter-schloss.pdf

2. Research – The 52-Week High and Momentum Investing

http://basehitinvesting.com/wp-content/uploads/2013/01/52-Week-High-and-Momentum-Investing.pdf

Morning Bamboo Insight: 27 Jul 2014

Morning Bamboo Insight: 27 Jul 2014

Macro

1. Why Voters Aren’t Angrier About Economic Inequality

http://www.nytimes.com/2014/07/25/upshot/why-voters-arent-angrier-about-economic-inequality.html?ref=business

2. A Chinese Gold Standard?

http://www.nytimes.com/2014/07/25/opinion/a-chinese-gold-standard-renminbi.html?ref=opinion

Asia Pacific

1. (China) – How the Hammer Falls as China Nails Corruption; Twenty months into a campaign against corrupt leaders, the crackdown is accelerating and the public is in the loop

http://english.caixin.com/2014-07-24/100708615.html

2. (China) – Company secretaries in China earn big bucks

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140725000011&cid=1203

3. (China) – Finance may upset China’s reform efforts

http://news.xinhuanet.com/english/indepth/2014-07/24/c_133508682.htm

4. (India/Isia) – What India’s Arvind Kejriwal can learn from Indonesia’s new president

http://qz.com/239649/what-indias-arvind-kejriwal-can-learn-from-indonesias-new-president/

5. (China) – Where China Goes To Outsource Its Own Soaring Labor Costs

http://www.zerohedge.com/news/2014-07-24/where-china-goes-outsource-its-own-soaring-labor-costs

6. (China) – China’s ageing millions look forward to bleak future

http://news.yahoo.com/chinas-ageing-millions-look-forward-bleak-future-061521065.html;_ylt=A0SO805RptBTt28Av91XNyoA

7. (China) – Focus of Graft Fight Must Move from Party to Nation; a fundamental solution to China’s corruption problem lies in building institutions that command respect across the country

http://english.caixin.com/2014-07-25/100709008.html

8. (India) – Kushagra Bajaj Of India’s Bajaj Group Is Man On A Mission As He Takes It From Sugar To Power

http://www.forbes.com/sites/saritharai/2014/07/23/kushagra-bajaj-of-indias-bajaj-group-is-man-on-a-mission-as-he-it-from-sugar-to-power/print/

Life

1. New Spore: SIA was 1 Minute 44 Seconds From Disaster!

http://www.tremeritus.com/2014/07/24/sia-was-1-minute-44-seconds-from-disaster/

2. Billionaire couple Pan Shiyi and Zhang Xin have faced a deluge of criticism for donating US$15 million (HK$117 million) to Harvard, one of the richest and most prestigious universities in the United States

http://www.thestandard.com.hk/news_detail.asp?we_cat=3&art_id=147718&sid=42682578&con_type=1&d_str=20140725&fc=8

3. Being Powerful Distorts People’s Perception of Time; the more power people have, the more time they feel they have available in their lives

http://www.theatlantic.com/business/print/2014/07/being-powerful-distorts-peoples-perception-of-time/374940/

4. Don’t Teach Math, Coach It

http://www.nytimes.com/2014/07/25/opinion/dont-teach-math-coach-it.html?ref=opinion

5. Books – Building a Better Teacher: How Teaching Works (and How to Teach It to Everyone)

http://www.amazon.com/Building-Better-Teacher-Teaching-Everyone/dp/0393081591

6. Books – Indonesia Etc.: Exploring the Improbable Nation – review

http://www.theguardian.com/books/2014/jul/24/indonesia-etc-exploring-improbable-nation-elizabeth-pisani-review

7. Why Do Americans Stink at Math?

http://www.nytimes.com/2014/07/27/magazine/why-do-americans-stink-at-math.html?_r=0

8. Why Birds Fly In A V-Formation

http://www.businessinsider.sg/why-bird-fly-in-a-v-2014-7/#.U9Jx4_mSxqU

9. Can you care for an elderly parent and still succeed at work?

http://fortune.com/2014/07/24/elderly-parents-work-life-balance/

10. The complete guide to having a creative breakthrough

http://qz.com/238681/the-complete-guide-to-having-a-creative-breakthrough/

11. 3 Ways To Turn Customers Into Rabid Fans

http://www.forbes.com/sites/erikaandersen/2014/07/24/3-ways-to-turn-customers-into-rabid-fans/print/

12. CEOs, Get to Know Your Rivals

http://blogs.hbr.org/2014/07/ceos-get-to-know-your-rivals/

TMT

1. The Next Thing in Farm-to-Table? Mobile Slaughterhouses

http://www.businessweek.com/articles/2014-07-24/the-next-thing-in-farm-to-table-mobile-slaughterhouses

2. (China/Tech) – Xiaomi Unveils a Fresh Chapter in Its Plan to Conquer the World

http://www.businessweek.com/articles/2014-07-22/the-latest-slick-cheap-smartphone-from-xiaomi-chinas-rising-mobile-power

3. The Next Big Thing in Hardware: Smart Garbage

http://bits.blogs.nytimes.com/2014/07/24/the-next-big-thing-in-hardware-smart-garbage/?_php=true&_type=blogs&ref=business&_r=0

4. Do Media Startups Have Staying Power?

http://www.bloombergview.com/articles/2014-03-17/do-media-startups-have-what-it-takes

5. (China/Tech) – Alibaba’s maturity mismatch: To continue offering high yields, Yu’E Bao has started to display classic signs of maturity mismatch. If Yu’E Bao spawns trouble, the applause will not last

http://www.economist.com/blogs/freeexchange/2014/07/chinese-finance

6. (China/Tech) – China’s digital transformation

http://www.mckinsey.com/insights/high_tech_telecoms_internet/chinas_digital_transformation

http://www.mckinsey.com/~/media/McKinsey/dotcom/Insights/High%20Tech%20Telecoms%20Internet/Chinas%20digital%20transformation%20The%20Internets%20impact%20on%20productivity%20and%20growth/Chinas_digital_transformation_Full_report.ashx

7. (Tech) – Facebook is now worth more than Coca-Cola, Disney, Intel

http://qz.com/240540/facebook-is-now-worth-more-than-coca-cola-disney-intel/

8. (China/Tech) – Unplugged and unproductive: Chinese business has been slow to embrace the internet. As it does, productivity should soar

http://www.economist.com/news/business/21608639-chinese-business-has-been-slow-embrace-internet-it-does-productivity-should

9. (China/Tech) – Tencent Holdings Gets Approval for Shenzhen Private Bank; Wenzhou and Tianjin Will Also Get Private Lenders

http://online.wsj.com/articles/tencent-holdings-gets-approval-for-shenzhen-private-bank-1406271241

http://online.wsj.com/articles/heard-on-the-street-baidu-finds-chinas-mobile-money-1406268963?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702304297104580050470798826784.html

Healthcare

1. (China/Healthcare) – China considers traditional Chinese medicine legislation

http://news.xinhuanet.com/english/china/2014-07/24/c_133508656.htm

Investing Process

1. Fujian Nuoqi (1353) chairman and chief executive Ding Hui and his wife Chen Ruiying have absconded with funds, leaving the menswear maker owing huge debts, Sina Finance reported

http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=147734&sid=42682884&con_type=1&d_str=20140725&fc=8

Evening Bamboo Insight: 25 Jul 2014

Evening Bamboo Insight: 25 Jul 2014

Macro

1. Will A Handwritten Note From Warren Buffett Cause A Hedge Fund Exodus?

http://www.valuewalk.com/2014/07/warren-buffett-calpers

2. The dark, disturbing world of the visa-for-sale program

http://fortune.com/2014/07/24/immigration-eb-5-visa-for-sale/

3. Italy’s Richest Woman With A $10.4B Fortune Controls Menarini Group, Italy’s leading pharma company, But The Tax Man Is After Her

http://www.forbes.com/sites/afontevecchia/2014/07/24/italys-richest-woman-with-a-10-4b-fortune-controls-menarini-group-but-the-tax-man-is-after-her/print/

4. Why does Wall Street use a different kind of macroeconomic modeling than academia’s DSGE?

http://www.bloombergview.com/articles/2014-07-23/wall-street-skips-economics-class

5. Wall Street’s revenge of the nerds means fooling all the people all the time

http://www.theguardian.com/money/us-money-blog/2014/jul/24/wall-street-fooling-people

6. The Moral Chasm Between Israel and Hamas; The 3-mile-long tunnel from Gaza was designed for launching murder and kidnapping raids

http://online.wsj.com/articles/james-t-conway-the-moral-chasm-between-israel-and-hamas-1406243128?mod=Opinion_newsreel_11

7. Siemens: Fixing the German dynamo; Joe Kaeser is transforming Siemens’s structure; changing its culture will be harder

http://www.economist.com.libproxy.smu.edu.sg/news/business/21608637-joe-kaeser-transforming-siemenss-structure-changing-its-culture-will-be-harder-fixing

Asia Pacific

1. (China/Energy) – Inside Xi Jinping’s purge of China’s oil mandarins

http://www.reuters.com/article/2014/07/24/us-china-purge-cnpc-specialreport-idUSKBN0FT2NK20140724

2. (Thai) – Former Thai premier Yingluck meets, hugs brother Thaksin at Paris

http://news.asiaone.com/print/news/asia/former-thai-premier-yingluck-meets-hugs-brother-thaksin-paris

3. (Taiwan) – Taiwan wants to become an international financial center, but its regulators keep undermining that ambition. The latest example is a threatened prosecution of short-seller Glaucus who reported about suspicious accounting at Asia Plastic

http://online.wsj.com/articles/short-changing-taiwans-market-1406219784?mod=WSJ_LatestHeadlines

4. (Macro/China) – Ethiopia Becomes China’s China as Shoe Workers Chant in Mandarin

http://www.thejakartaglobe.com/business/ethiopia-becomes-chinas-china-shoe-workers-chant-mandarin/

5. Super Rich Indians now invest in Equity and Donate more; India’s rich lie in three segments – Inheritors, Entrepreneurs and Professionals

http://forbesindia.com/printcontent/38293

6. Japan’s eel farmers face state regulation to manage new extinction risk

http://www.japantimes.co.jp/news/2014/07/24/business/eel-farmers-face-state-regulation-manage-new-extinction-risk/#.U9HB-_mSxqU

7. Lotte World Adventure theme park has organized the special event, the nighttime multimedia parade and show “Let’s Dream”, in commemoration of its 25th anniversary, which fell on July 12

http://www.koreatimes.co.kr/www/news/culture/2014/07/320_161455.html

8. (Korea) – Experts agree on Choi’s grim outlook; Finance Minister Choi Kyung-hwan voiced concern that the Korean economy may follow in the path of Japan at the start of its so-called stagnant “lost two decades.”

http://www.koreatimes.co.kr/www/news/biz/2014/07/488_161669.html

9. (Korea) – Korea’s pension fund NPS stake in top 500 firms valued at $66bn; Stakes in Samsung and Hyundai Motor groups took up 47% of the total investment, and close to 70% when adding stakes in SK, LG and Lotte groups

http://news.mk.co.kr/english/newsRead.php?sc=30800016&cm=Finance&year=2014&no=1021873&selFlag=sc&relatedcode=&wonNo=&sID=308

10. (Korea) – Too much money held by South Korean large companies has led to an absurd situation in which their request to put the money into banks is often turned down for fear of negative margin

http://news.mk.co.kr/english/newsRead.php?sc=30800016&cm=Finance&year=2014&no=1026292&selFlag=sc&relatedcode=&wonNo=&sID=308

11. (Korea) – Over 70% LTV ratio Korean mortgages total $36 bn, two-thirds come from non-banks

http://news.mk.co.kr/english/newsRead.php?sc=30800016&cm=Finance&year=2014&no=1029073&selFlag=sc&relatedcode=&wonNo=&sID=308

12. (Korea) – South Korea Plans $40 Billion Stimulus to Tackle Weakening Growth

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992534

http://online.wsj.com/articles/south-korea-plans-spending-to-tackle-weakening-growth-1406163844

http://www.reuters.com/article/2014/07/24/us-southkorea-economy-idUSKBN0FT0VH20140724

http://www.bloomberg.com/news/print/2014-07-23/south-korea-growth-slows-more-than-forecast-as-consumption-drops.html

13. (China/HK/Consumer) – McDonald’s takes chicken nuggets off menu in Hong Kong amid food scare

http://www.reuters.com/article/2014/07/25/us-china-food-hongkong-idUSKBN0FU00J20140725

14. (China/India) – India’s Chinese Dream

http://www.project-syndicate.org/print/lee-jong-wha-outlines-how-india-can-replicate-china-s-economic-success

15. (China) – China meat supplier faced claims last year over unethical work practices

http://www.reuters.com/article/2014/07/25/us-china-food-dispute-idUSKBN0FU05Y20140725

16. (Isia/Spore) – Indonesians living in Singapore can soon remit money using cellphones

http://www.straitstimes.com/news/singapore/more-singapore-stories/story/indonesians-living-singapore-can-soon-remit-money-using-

17. (China) – Buyers and Brands Beware in China; The political realities behind the latest tainted food scandal

http://online.wsj.com/articles/buyers-and-brands-beware-in-china-1406220037

18. (China) – Beijing Has Top-Secret View of China’s Employment; the official unemployment rate-4.08% at last measure-is widely seen as useless as it barely budges in good times and bad

http://online.wsj.com/articles/heard-on-the-street-beijing-has-top-secret-view-of-chinas-employment-1406187890

Life

1. The importance of patience and the danger of information overload

http://ftalphaville.ft.com/2014/07/24/1905822/the-importance-of-patience-and-the-danger-of-information-overload/

2. The Highest-Paid Woman in Corporate America Is A CFO

http://www.forbes.com/sites/ruchikatulshyan/2014/07/24/the-highest-paid-woman-in-corporate-america-is-a-cfo/print/

3. How Internal Entrepreneurs Can Deal with Friendly Fire; You, your boss, and your organization can each be in one of four modes: Make It Happen (Make), Help It Happen (Help), Let It Happen (Let) or Keep It from Happening (Keep)

http://blogs.hbr.org/2014/07/how-internal-entrepreneurs-can-deal-with-friendly-fire/

4. Don’t Let Your Head Attack Your Heart

http://blogs.hbr.org/2014/07/dont-let-your-head-attack-your-heart/

5. Choose your parents wisely: There is a large class divide in how Americans raise their children. Rich parents can afford to ease up a bit; poor parents need help

http://www.economist.com/news/united-states/21608779-there-large-class-divide-how-americans-raise-their-children-rich-parents-can

6. Helicopter parents: Relax, your kids will be fine; Middle-class parents should give their children more freedom

http://www.economist.com.libproxy.smu.edu.sg/news/leaders/21608753-middle-class-parents-should-give-their-children-more-freedom-relax-your-kids-will-be-fine

7. 7 Everyday Phrases With Sinister Origins

http://www.businessinsider.sg/gruesome-origins-of-innocent-phrases-2014-7/#.U9Hul_mSxqU

8. 17 Things Successful People Never Say

http://www.businessinsider.sg/what-successful-people-never-say-2014-7/#.U9HuifmSxqU

9. The 12 Best Books The Marine Corps Wants Its Leaders To Read

http://www.businessinsider.sg/commandants-reading-list-2014-7/#.U9HvNvmSxqU

10. 12 Simple Ways To Be More Interesting

http://www.businessinsider.sg/how-to-be-interesting-2014-7/#.U9HvR_mSxqU

TMT

1. New Google Project Seeks to Define Healthy Human; Google has embarked on what may be its most ambitious and difficult science project ever: a quest inside the human body.

http://online.wsj.com/articles/google-to-collect-data-to-define-healthy-human-1406246214

2. How MasterCard became a tech company; Four years after taking the helm, CEO Ajay Banga has turned the payments processor into an innovator. The stock’s response? Priceless

http://fortune.com/2014/07/24/mastercard-tech-company/

3. (Tech/Healthcare) – Can Big Data cure cancer?

http://fortune.com/2014/07/24/can-big-data-cure-cancer/

4. Lessons from Jeff Weiner, LinkedIn’s Networker-in-Chief

http://fortune.com/2014/07/24/linkedins-networker-in-chief/

5. Apple could become “obsolete” in two years because the technology sector is so competitive, according to one hedge fund boss.

http://www.telegraph.co.uk/technology/apple/10989278/Apple-could-be-obsolete-in-two-years.html

6. Facebook is no longer a social network. It’s the world’s most powerful news reader

http://pando.com/2014/07/24/facebook-is-no-longer-a-social-network-its-the-worlds-most-powerful-news-reader/

7. Meal-Delivery Startups Look for Winning Recipe; Plated, Blue Apron Use Data to Focus on the Details; Measuring Demand for Crunchy Tofu

http://online.wsj.com/articles/meal-delivery-startups-look-for-winning-recipe-1406162891?mod=WSJ_hpp_sections_smallbusiness

8. (China/Tech) – Qualcomm’s China Hang-Ups

http://online.wsj.com/articles/heard-on-the-street-qualcomms-china-hang-ups-1406228307

9. Hot Employer Stocks Could End Up Burning Some Young Tech Tycoons; The Lesson of One-Time Highfliers Such as Pets.com Is to Diversify Your Holdings

http://online.wsj.com/articles/hot-employer-stocks-could-end-up-burning-some-young-tech-tycoons-1406217825

10. These Smart Shoes Will Make Sure You Never Get Lost Again

http://www.businessinsider.sg/lechal-smart-shoes-2014-7/

Consumer

1. Ford’s Epic Gamble: The inside story

http://fortune.com/2014/07/24/f-150-fords-epic-gamble/

2. Is T.J. Maxx the best retail store in the land? The off-price chain has built a fantastically loyal following. How have they done it? We got inside the playbook of parent company TJX

http://fortune.com/2014/07/24/t-j-maxx-the-best-retail-store/

3. Loblaw’s fresh approach giving it a big edge in heated grocery battle

http://business.financialpost.com/2014/07/24/loblaws-fresh-approach-giving-it-a-big-edge-in-heated-grocery-battle/

4. How adult diapers became paper-giant Domtar’s future (because they’re also yours)

http://business.financialpost.com/2014/07/24/how-adult-diapers-became-paper-giant-domtars-future-because-theyre-also-yours/

5. A Game of Golf? Not for Many Millennials; A drop in participation rates and disinterest among young people, particularly millennials, have sent both the retail and sporting ends of the business scrambling for a new strategy

http://online.wsj.com/articles/a-game-of-golf-not-for-many-millennials-1406159228

6. Burger King’s 33-Year-Old CEO Is Completely Reshaping The Company

http://www.businessinsider.sg/burger-kings-young-ceo-2014-7/#.U9Ht4_mSxqU

Healthcare

1. (Tech/Healthcare) – Can Big Data cure cancer?

http://fortune.com/2014/07/24/can-big-data-cure-cancer/

2. Beggar-Thy-Neighbor Medicine; A $1,000 pill ignites an ObamaCare war of all against all.

http://online.wsj.com/articles/beggar-thy-neighbor-medicine-1406245356

3. When Hospitals Buy Clinics, Prices Go Up

http://www.businessweek.com/printer/articles/215224-when-hospitals-buy-clinics-prices-go-up

4. Patients’ reviews: DocAdvisor; Patients around the world are starting to give doctors a piece of their mind. The result should be better care

http://www.economist.com/news/international/21608767-patients-around-world-are-starting-give-doctors-piece-their-mind-result

5. Mental illness: Some needles in the haystack; A consortium of researchers has shone a powerful light on schizophrenia

http://www.economist.com/news/science-and-technology/21608314-consortium-researchers-has-shone-powerful-light-schizophrenia-some

6. Clinical trials: The nation is losing its grip on a valuable industry

http://www.economist.com/news/britain/21608775-nation-losing-its-grip-valuable-industry-testing-testing

Investing Process

1. Do value stocks protect in market corrections?

http://www.pzena.com/uploads/documents/Commentary%202Q14.pdf

2. Research – Large shareholders and disclosure strategies: Evidence from IPO lockup expirations

Commodities

1. Bolivia’s Battery Ambitions; The country’s vast salt flats contain half of the global reserves of lithium

http://www.businessweek.com/articles/2014-07-24/bolivias-salt-flats-fuel-lithium-battery-ambitions

Research

1. Securities Lending, Empty Voting and Corporate Governance

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2443217

 

 

Increase Revenue or Reduce Expenses: Which Is More Effective

Increase Revenue or Reduce Expenses: Which Is More Effective

Running a successful business is a challenge not to be taken lightly. There is a considerable amount of issues to factor in, including short-term viability and long-term success. In general, you should carefully examine every important business decision to make sure it serves a short-term requirement, while at the same time keeping alignment with long-term company goals and values.

Businesses are being put under an enormous amount of pressure to increase profits regardless of the accompanying economic climate. To be able to deliver on this requirement companies need to tackle the challenge in two fronts:

  1. Increase Revenue

All companies sell some sort of good or service. To increase the amount of money coming in there are various alternatives that complement each other. The first one is to generate more money from existing customers. This can be accomplished either by upselling or cross selling. Another alternative is to increase the price of the current product. This approach poses a problem if demand is too elastic and an increase in price generates a drop in demand. A third option is to enter new markets with the current product line. This is possibly the most promising alternative and as such it should be the one that receives more attention and resources. To achieve the exponential growth businesses seek, entering new markets is a very efficient way of reaching a larger customer base. A side effect is the creation of economies of scale that in turn reduce spending to increase profits even more. You can learn more about entering new markets in this informative article: http://www.inc.com/karl-and-bill/5-step-primer-to-entering-new-markets.html

  1. Reduce Expenses

Even though rising revenues is by far the best approach to increase profits, since the limit up to which they can be increased depends on how big the market is, the other side of the profit equation is very important to manage as well. All things being equal, a decrease in expenses will translate into an immediate profit increase. The strategies by which expenses can be reduced vary greatly depending on the type of business and its cost structure. For labor-intensive companies, ensuring optimum staff levels might be the way to go, while for manufacturing companies an improved production process or vendor negotiation could have a bigger impact. One area where the majority of businesses can get an instant expense cut is by running their operations from an executive office suite. Since common area expenses are shared amongst various tenants, and space is optimized for the current workforce (no idle work stations for growth – they are procured and paid for as needed), the expense reduction starts from the day you move in to one of these spaces. Companies like the one found in http://www.officelist.com/ specialize in finding the perfect space to match business needs and reduce current expenses in the process. Another benefit is that these setups come already furnished, eliminating the cost of outfitting the space.

So there you have it. Increasing revenues and reducing expenses. In order to promote growth and alleviate the pressure to increase profits, every manager or C-Level executive should be focused on these two areas of their business.

 

Credit to Jessica for the article. She can be contacted at info@officelist.com

Morning Bamboo Insight: 25 Jul 2014

Morning Bamboo Insight: 25 Jul 2014

Macro

1. Rethinking Buybacks: To earn a “return” on stock buybacks, you need a more sophisticated message and better execution

http://ww2.cfo.com/capital-markets/2014/07/rethinking-buybacks

2. Uncovering Cash and Insights from Working Capital; Companies that improve the performance of their working capital can generate cash and see benefits far beyond the finance department.

http://ww2.cfo.com/cash-flow/2014/07/uncovering-cash-insights-working-capital

Asia Pacific

1. (Korea) – Lotte’s power transition set in motion; More than 10 affiliates of Lotte Group exchanged part of their shares with each other in a move to streamline their cross-share holding structure ahead of the implementation of a law banning it

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_161586.html

2. (Korea) – The listed units of Korea’s top 10 conglomerates paid less than 1% of their profits as dividends last year

http://www.koreatimes.co.kr/www/news/biz/2014/07/488_161583.html

3. (India) – Biba Apparels: Redefining Ethnic Wear For Indian Women

http://forbesindia.com/printcontent/38262

4. (HK) – Why HK’s ‘donationgate’ is a big deal; The “Donationgate” dogging pan- democrats and their financial backer, Jimmy Lai Chee-ying, bears all the hallmarks of a Rashomon script.

http://www.thestandard.com.hk/news_detail.asp?we_cat=17&art_id=147678&sid=42675105&con_type=1&d_str=20140724&fc=7

http://www.thestandard.com.hk/news_detail.asp?we_cat=17&art_id=147618&sid=42667715&con_type=1&d_str=20140723&fc=7

5. (China) – Daqing oil workers push kids to follow in their footsteps

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140722000026&cid=1501

6. (India) – Milltec Machinery: Spreading Wings With Rice Mill Machines

http://forbesindia.com/printcontent/38266

7. (India) – SH Kelkar & Co: Infusing Fragrance In Lives

http://forbesindia.com/printcontent/38260

8. (India) – Magicrete: Building An Alternative Reality; Sourabh Bansal’s concrete units have the potential to disrupt the traditional construction material market

http://forbesindia.com/printcontent/38252

9. (Myanmar) – Burmese Tycoon Tay Za Under Scrutiny

http://www.forbes.com/sites/forbesasia/2014/07/23/burmese-tycoon-tay-za-under-scrutiny/print/

10. (Spore/HK) – ARA Asset Management’s John Lim See Real Returns With Li Ka-shing

http://www.forbes.com/sites/forbesasia/2014/07/23/john-lim-see-real-returns-with-li-ka-shing/print/

11. PTC Industries: Casting magic with metal; The Agarwals invested in unique technology for their foundry to attract A-list international clients

http://forbesindia.com/printcontent/38258

12. (Spore) – Singapore’s 50 Richest Score Big Gains Amid Buying Binge

http://www.forbes.com/sites/naazneenkarmali/2014/07/23/singapores-50-richest-score-big-gains-amid-buying-binge/print/

13. (Spore) – Singapore’s Goodpack Founder David Lam Awaits Payday from Private Equity Deal

http://www.forbes.com/sites/forbesasia/2014/07/23/david-lam-awaits-payday-from-private-equity-deal/print/

14. (Asia) – Asia’s Best Under A Billion; Discovering Asia-Pac’s ‘Sustainably’ Profitable SMEs

http://www.forbes.com/sites/christinasettimi/2014/07/23/asias-best-under-a-billion/print/

http://www.forbes.com/sites/timferguson/2014/07/23/discovering-asia-pacs-sustainably-profitable-smes/print/

15. (India) – India’s Time For Growth

http://www.forbes.com/sites/richkarlgaard/2014/07/23/indias-time-for-growth/print/

16. (Spore) – Billionaire’s Playground: Singapore Is The Most Expensive City Globally

http://www.forbes.com/sites/ruchikatulshyan/2014/03/04/billionaires-playground-singapore/print/

17. (China) – Food Safety in China Still Faces Big Hurdles

http://www.nytimes.com/2014/07/24/business/international/food-safety-in-china-still-faces-big-hurdles.html?ref=business&_r=0

18. (Korea/Consumer) – Paris Baguette, Korea’s largest bakery chain owned by SPC Group, opened its first store in the heart of the French capital, a move it had long desired during its 26 years of operation

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992455&cloc=joongangdaily|home|newslist2

19. (Korea) – It’s dividend time, Korea; The local business sector and stock market is abuzz over the new finance minister’s hint of a punitive tax on large companies sitting on piles of cash reserves

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992443

20. (China) – Chinese Appliance Giant Haier Decides Its Future Is to Think Small; Haier Group creates large number of micro companies to jump into a range of businesses, from films and finance to manufacturing and delivery

http://english.caixin.com/2014-07-23/100708077.html

21. (China) – Wenzhou’s real estate bringing down an economic heavyweight

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1202&MainCatID=12&id=20140724000054

22. (China) – Chasing China’s high-profile criminals across the world

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140724000070&cid=1103

23. (China) – Expired meat scandal in China seems a systemic problem

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140723000115&cid=1103

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140724000088&cid=1201

24. (China) – Golden toad offends former Chinese president; One of Beijing’s prime summer tourist attractions has become a grotesque embarrassment after someone noticed its resemblance to Jiang Zemin

http://www.telegraph.co.uk/news/worldnews/asia/china/10985560/Golden-toad-offends-former-Chinese-president.html

Life

1. Here’s The Number One Mistake That Kills Startups, According To Ben Horowitz

http://www.businessinsider.sg/ben-horowitz-budget-process-kills-startups-2014-7/#.U9DXAvmSxqU

http://www.bhorowitz.com/how_to_ruin_your_company_with_one_bad_process

2. 21 Quotes From Bill Gates That Take You Inside The Mind Of The World’s Richest Man

http://www.businessinsider.sg/quotes-from-bill-gates-worlds-richest-man-2014-7/#.U9DXA_mSxqU

3. This Mindset Can Prevent You From Succeeding At Work

http://www.businessinsider.sg/this-mindset-could-ruin-your-success-2014-7/#.U9DWyvmSxqU

https://www.linkedin.com/today/post/article/20140721225305-11458886-the-three-words-that-can-ruin-your-career

4. As full-time pastors become a thing of the past, more and more seminary grads are taking on secular jobs to supplement their incomes

http://www.theatlantic.com/business/print/2014/07/higher-calling-lower-wages-the-collapse-of-the-middle-class-clergy/374786/

5. How ‘Moral Licensing’ Ruins Your Diet, Savings, And Long-Term Goals

http://www.businessinsider.sg/moral-licensing-ruins-diets-savings-goals-2014-7/#.U9DW9fmSxqU

6. Meet The 22-Year-Old Student People Are Calling ‘The Italian Mark Zuckerberg’

http://www.businessinsider.sg/italian-mark-zuckerberg-matteo-achilli-2014-7/#.U9DWTPmSxqU

http://www.bbc.com/news/business-28211811?print=true

7. The Promise of 100% and Finding Fortune at the Bottom of the Pyramid

http://forbesindia.com/blog/business-strategy/the-promise-of-100-and-finding-fortune-at-the-bottom-of-the-pyramid/

8. With the Blessing of Bill Gates, “Business Adventures” Becomes an Unlikely Summertime Best Seller

http://bits.blogs.nytimes.com/2014/07/23/the-blessing-of-bill-gates-and-an-unlikely-summertime-best-seller/?ref=business

9. A Motivational Speech From The Greatest Entrepreneur, Muhammad Ali

http://pando.com/2014/07/23/startups-anonymous-a-motivational-speech-from-the-greatest-entrepreneur-muhammad-ali/

10. Tech Leaders Tell Interns What They Wish They Knew At Age 20

http://techcrunch.com/2014/07/23/tech-leaders-tell-interns-what-they-wish-they-knew-at-age-20/

11. The Modernization Of Computer Science Education: enabling students to focus on a particular project to build a skill set applicable to the real-world today

http://techcrunch.com/2014/07/23/modernizing-computer-science-education/

12. People Hate Bankers Because People Are Ignorant

http://www.bloombergview.com/articles/2014-07-16/people-hate-bankers-because-people-are-ignorant

13. The 9-to-5 workday is practically an invitation to ethical lapses. Here’s why. We are more likely to lie and cheat when we are tired

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/07/22/science-were-more-likely-to-lie-and-cheat-when-were-tired/

14. An Idiot’s Guide to Inequality; If you don’t have time for Thomas Piketty’s comprehensive best seller, here’s a quick five-point take on the gap between the rich and poor

http://www.nytimes.com/2014/07/24/opinion/nicholas-kristof-idiots-guide-to-inequality-piketty-capital.html

15. Robert Sutton’s Guide to Excellence; The Stanford professor’s latest research explores the practices that enable companies to scale what they do best

http://www.strategy-business.com/article/00276?gko=b7548&cid=TL20140724&utm_campaign=TL20140724&tid=27782251&pg=all

TMT

1. (Australia/Tech) – Australia’s Seek Takes Online Job Search Abroad (Seek Zhaopin)

http://www.forbes.com/sites/forbesasia/2014/07/23/australias-seek-takes-online-job-search-abroad-see-zhaopin/print/

2. (India/Tech) – KPIT: An Indian Tech Company With An Auto Focus

http://www.forbes.com/sites/anuraghunathan/2014/07/23/a-tech-company-with-an-auto-focus/print/

3. Open Source and the Challenge of Making Money

http://bits.blogs.nytimes.com/2014/07/23/open-source-and-the-challenge-of-making-money/?ref=business

4. (China/Tech) – China set to retain position as top e-commerce market

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140724000111&cid=1202

5. China/Tech) – Xiaomi faces hurdles on path to international expansion

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140723000048&cid=1502

Healthcare

1. Acetaminophen No Better Than Placebo for Back Pain; About two-thirds of adults have lower back pain at some point in their lives, and most are told to take acetaminophen

http://well.blogs.nytimes.com/2014/07/23/acetaminophen-no-better-than-placebo-for-back-pain/?_php=true&_type=blogs&ref=health&_r=0

Energy

1. Let Our Oil and Gas Go: America Should Rescind the Ban on Crude-Oil Exports

http://www.nytimes.com/2014/07/24/opinion/america-should-rescind-the-ban-on-crude-oil-exports.html?ref=opinion

2. Four reasons why US fracking could turn out to be a bubble

http://qz.com/238686/is-there-a-fracking-bubble/

 

Evening Bamboo Insight: 24 Jul 2014

Evening Bamboo Insight: 24 Jul 2014

Macro

1. How Dashboards Can Help CFOs Manage Risk; Dashboards, listening posts and other risk-sensing tools can help finance chiefs grasp how stakeholders perceive the strategic risks their companies assume

http://ww2.cfo.com/risk-management/2014/07/dashboards-can-help-cfos-manage-risk

2. Why the Wolf of Wall Street’s ‘Sucker List’ Won’t Be Released to ‘Inside Edition’; Financial criminals go to great lengths to hunt down and size up their prey, but to the con man, nothing can top the “sucker list” of people

http://dealbook.nytimes.com/2014/07/23/once-bitten-twice-shy-except-when-it-comes-to-fraud/

3. Calpers Pulls Back From Hedge Funds; California Pension Fund to Cut Investments by 40%

http://online.wsj.com/articles/calpers-pulls-back-from-hedge-funds-1406156915

4. The Lingering, Hidden Costs of the Bank Bailout; Why is growth so anemic? New economic activity has been discouraged. Here are some ways to change that

http://online.wsj.com/articles/vernon-l-smith-the-lingering-hidden-costs-of-the-bank-bailout-1406160075

5. The U.S. airline industry’s newfound health is breeding something not seen in years: a flock of startups. All share an optimism that they can defy the odds in an industry that has seen 77 bankruptcies in the 20 years

http://online.wsj.com/articles/new-startup-airlines-crowd-the-skies-1406143697

6. North Korea’s business guides; Pyongyang is enlisting tutors in the techniques of modern management

http://www.ft.com/intl/cms/s/0/9a6c1ee2-1192-11e4-a17a-00144feabdc0.html#axzz38MavqFEj

7. The spin-offs that followed Air Canada’s bankruptcy; Strategy created value but stripped airline of an economic engine

http://www.ft.com/intl/cms/s/0/7f494142-dc60-11e3-9016-00144feabdc0.html#axzz38MavqFEj

8. Bricks come loose from StanChart tower amid whispering campaign; Investors and insiders point to bank struggling to adapt

http://www.ft.com/intl/cms/s/0/2cf8b910-1278-11e4-a581-00144feabdc0.html#slide0

9. Pepsi to Nescafe Boycotted by Mumbai Muslims for Being ‘Israeli’; “For us, Coke and Pepsi is human blood. They are financing the war against Palestine.”

http://www.thejakartaglobe.com/international/pepsi-nescafe-boycotted-mumbai-muslims-israeli/

Asia Pacific

1. (China) – Young workers dying in their sleep in ‘world’s factory’ in Dongguan, China

http://news.asiaone.com/print/news/asia/young-workers-dying-their-sleep-worlds-factory

2. (China) – ‘Family corruption a new trend in Guangzhou’

http://news.asiaone.com/print/news/asia/family-corruption-new-trend-guangzhou

3. (China) – As credit dries up, troubled Chinese steel makers lose lifeline

http://www.reuters.com/article/2014/07/23/us-china-steel-idUSKBN0FR2FK20140723

4. (China) – McDonald’s CEO: ‘deceived’ by audit of China meat plant

http://www.reuters.com/article/2014/07/22/us-china-food-mcdonalds-idUSKBN0FR20I20140722

5. (China) – Homeowners abandon properties as prices plunge in Wenzhou

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140723000015&cid=1202

6. Long-derided Docklands acknowledged as economic powerhouse; For more than a decade Melbourne has derided Docklands as a failed planning experiment

http://www.theage.com.au/victoria/longderided-docklands-acknowledged-as-economic-powerhouse-20140722-zvsye.html

7. (Australia) – Aussie supermarket giant Woolworths has been forced to stop using the word ”banking” in the marketing of its financial services after it fell foul of regulators

http://www.theage.com.au/business/banking-and-finance/woolworths-reminded-it-isnt-a-bank-20140723-zw4jw.html

8. (China) – China Seals Off Yumen City After Outbreak Of Bubonic Plague

http://www.zerohedge.com/news/2014-07-23/china-seals-yumen-city-after-outbreak-bubonic-plague

9. (Myanmar) – Has the ‘Frontier’ Economy’s Time Finally Arrived?

http://knowledge.wharton.upenn.edu/article/rushing-myanmar-will-foreign-investments-pay/

10. (Vietnam) – Starbucks seeks to expand in cafe-clogged Vietnam

http://www.reuters.com/article/2014/07/23/us-vietnam-starbucks-idUSKBN0FS13B20140723

11. (China) – Beijing’s Real Anticorruption Goal; Xi Jinping can’t eradicate graft, but he can try to avoid an uproar over SOE reform

http://online.wsj.com/articles/joseph-sternberg-beijings-real-anticorruption-goal-1406134106

12. (India) – India to Use ETFs to Sell State Shares Again

http://online.wsj.com/articles/india-to-use-etf-to-sell-state-shares-again-1406099705?tesla=y&mod=WSJASIA_hpp_sections_india&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702304297104580046633749801628.html?mod=WSJASIA_hpp_sections_india

13. (India/Macro) – Revealed: The India-Israel Axis; A burgeoning strategic partnership with Israel matters more to India than reflexive solidarity with the Palestinian cause

http://online.wsj.com/articles/revealed-the-india-israel-axis-1406133666?mod=asia_opinion

14. (India) – Western anti-capitalists take too much for granted: India’s ‘untouchables’ are being emancipated by economic growth

http://www.ft.com/intl/cms/s/0/7db7d974-1252-11e4-93a5-00144feabdc0.html#axzz38MZmptYb

15. (China) – Why China’s hunt for tigers and flies is bound to fail

http://www.ft.com/intl/cms/s/0/c8cbf1dc-11c8-11e4-8279-00144feabdc0.html

16. (Isia) – Teatime with an Indonesian sultan: After decades of slumber, local sultanates and kingdoms are being kissed back to life by political decentralization

http://www.ft.com/intl/cms/s/2/8690e162-0861-11e4-9afc-00144feab7de.html#axzz38MavqFEj

17. China’s second-half rally becomes an annual event

http://www.ft.com/cms/s/0/2615bc7a-123b-11e4-93a5-00144feabdc0.html#axzz38MdIMcJN

18. (HK) – Swatch warns over uncertain Hong Kong outlook

http://www.ft.com/intl/cms/s/0/36769a40-118b-11e4-b356-00144feabdc0.html#axzz38Mpz1X00

19. (Isia) – Prabowo Calls on World Leaders to ‘Withhold Congratulatory Statements’ to Jokowi

http://www.thejakartaglobe.com/news/prabowo-calls-world-leaders-withhold-congratulatory-statements-jokowi/

20. (Isia) – Jokowi Promises to Make Life Easier for Investors; Jokowi’s humble “I’m just like the rest of you” style has made him the country’s most popular politician and it is an image he is careful not to lose

http://www.thejakartaglobe.com/news/jokowi-promises-make-life-easier-investors/

Life

1. Tips on Crafting a Popular Newsletter, from Top Newsletter Authors

http://www.fastcompany.com/3033338/most-creative-people/tips-on-crafting-a-popular-newsletter-from-top-newsletter-authors

2. No One Should Have to Choose Between Caregiving and Work

http://blogs.hbr.org/2014/07/no-one-should-have-to-choose-between-caregiving-and-work/

3. How Google’s Larry Page became a responsible entrepreneur; Four early influences helped shape the Google CEO’s world view and turn him into a change agent

http://www.theguardian.com/sustainable-business/2014/jul/23/entrepreneur-larry-page-google-innovation-change

4. Dogs do experience jealousy, according to a new study. And their motivations might teach us about our own

http://www.washingtonpost.com/news/to-your-health/wp/2014/07/23/to-understand-how-jealousy-works-take-a-look-at-your-dog/

5. PBS Interview with Peter Lynch; Lynch ran Fidelity’s Magellan Fund for thirteen years (1977-1990). In that period, Magellan was up over 2700%. He retired in 1990 at the age of 46

http://www.pbs.org/wgbh/pages/frontline/shows/betting/pros/lynch.html

6. MagicJack Founder Dies Of Sudden Heart Attack

http://www.valuewalk.com/2014/07/magicjack-dan-borislow

7. Zoo makes wild fashion statement with lion-ripped jeans

http://www.japantimes.co.jp/news/2014/07/23/national/zoo-makes-wild-fashion-statement-lion-ripped-jeans/#.U9C9qvmSxqU

http://www.youtube.com/watch?v=oBkqfiN6zJM

8. Behind every great entrepreneur is an even greater PA

http://www.telegraph.co.uk/finance/comment/michael-hayman/10986508/Behind-every-great-entrepreneur-is-an-even-greater-PA.html

9. The Most Powerful F Word In Leadership

http://www.forbes.com/sites/maseenaziegler/2014/07/22/the-most-powerful-f-word-in-leadership/print/

TMT

1. It’s not TV that Rupert Murdoch wants: It’s HBO

http://qz.com/235746/its-not-tv-that-rupert-murdoch-wants-its-hbo/

2. It’s Time to Split Up Microsoft

http://stratechery.com/2014/making-sense-microsoft/

3. It’s Worth What!? Pressure-testing Companies with Sky-high Valuations

http://knowledge.wharton.upenn.edu/article/worth-pressure-testing-companies-eye-popping-valuations/

4. Will Consumers Be Sold on an eBay-Sotheby’s Collaboration?

http://knowledge.wharton.upenn.edu/article/will-consumers-sold-ebay-sothebys-collaboration/

5. (Tech/China) – Qualcomm struggles to collect royalties in China

http://www.reuters.com/article/2014/07/23/us-qualcomm-results-idUSKBN0FS27N20140723

6. (Asia/Tech) – Apple iPhone Rollout Boosts Asia’s Component Makers; Apple Suppliers in Japan, Taiwan and South Korea Raise Forecasts Ahead of Expected New iPhone Launch

http://online.wsj.com/articles/apple-iphone-rollout-boosts-asias-component-makers-1406123257

7. (Healthcare/Tech) – Surgical Robot Fails to Show Advantages in Treating Bladder Cancer; Study Compares Intuitive Surgical’s da Vinci Device to Traditional Surgery

http://online.wsj.com/articles/surgical-robot-fails-to-show-advantages-1406149383

8. (Media/Tech) – Murdoch’s bid for Time Warner threatens the golden age of television; The fact that once-dominant cable companies face new online and digital competition is good

http://www.ft.com/intl/cms/s/0/c09ec8ea-11c8-11e4-8279-00144feabdc0.html#axzz38MZmptYb

9. (Japan/Tech) – Sega vs Nintendo: a review of Console Wars by Blake J Harris; A 1990s battle that could offer lessons for today’s smartphone makers

http://www.ft.com/intl/cms/s/0/4833f4bc-1190-11e4-a17a-00144feabdc0.html#axzz38MavqFEj

10. Content marketing: turn website visits into sales through the medium of video

http://www.theguardian.com/small-business-network/2014/jul/24/content-marketing-video-website-sales

Books

1. Bill Gates and Warren Buffett’s favorite book: Business Adventures 12 Tales from the World of Wall St (Full Book)

http://cdn1.valuewalk.com/wp-content/uploads/2014/07/Business-Adventures_-Twelve-John-Brooks-1.pdf

Consumer

1. Volatile Brew: Price-Matching and Social Media; A Dollar General Discount Spurs Backlash at Wal-Mart and Target

http://online.wsj.com/articles/discount-stores-combat-social-media-backlash-1406135415?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

Healthcare

1. (Healthcare/Tech) – Surgical Robot Fails to Show Advantages in Treating Bladder Cancer; Study Compares Intuitive Surgical’s da Vinci Device to Traditional Surgery

http://online.wsj.com/articles/surgical-robot-fails-to-show-advantages-1406149383

2. Hepatitis C Pill Rockets Gilead Into Big Leagues; Biotech’s Promising Treatment Continues Its Historic Drug Launch

http://online.wsj.com/articles/gilead-sciences-reports-strong-sovaldi-sales-1406146546

Investing Process

1. Importance of ROIC: Compounders and Cheap Stocks

http://basehitinvesting.com/importance-of-roic-part-1-compounders-and-cheap-stocks/

http://basehitinvesting.com/importance-of-roic-part-2-compounders-and-cheap-stocks/

http://basehitinvesting.com/importance-of-roic-part-3-compounding-and-reinvestment/

2. How Companies in Emerging Markets Are Winning at Home

https://www.bcgperspectives.com/content/articles/globalization_consumer_products_2014_bcg_local_dynamos_how_companies_emerging_markets_winning_home

https://www.bcgperspectives.com/Images/How_Companies_in_Emerging_Markets_are_Winning_at_Home_Jul_2014.pdf

3. Long-term returns boosted by illiquidity: The less liquid a stock, the better it will perform over time

http://www.ft.com/intl/cms/s/0/3c62469c-11af-11e4-b356-00144feabdc0.html

4. The Evolution of Value Investing: Past, Present and Beyond

http://www.fordhamgabellicenter.org/wp-content/uploads/2013/06/Calandro-Evolution-of-Value-Investing-MOAF.pdf

Energy

1. Oil traders hearing contango music again. Not loud yet

http://uk.reuters.com/article/2014/07/22/contango-oilstocks-idUKL6N0PR30U20140722

Morning Bamboo Insight: 24 Jul 2014

Morning Bamboo Insight: 24 Jul 2014

Macro

1. Countries can thrive without creating tech billionaires

http://www.ft.com/intl/cms/s/0/82122018-0e62-11e4-a1ae-00144feabdc0.html#axzz38G7rspZt

2. Middle age catches up with StanChart

http://www.ft.com/cms/s/0/c9dd6912-1104-11e4-94f3-00144feabdc0.html#axzz38GR1yF9f

3. Seeking to ease threats, SEC is poised to end $1 a share for some riskier money-market funds

http://www.foxbusiness.com/markets/2014/07/23/seeking-to-ease-threats-sec-is-poised-to-end-1-share-for-some-riskier-money/

Asia Pacific

1. (Korea) – Depressed Koreans, encouraged by the increasingly stifling atmosphere of Korean society, in which competition is intensifying, the crime rate is rising and the traditional family structure is collapsing

http://news.asiaone.com/print/news/asia/depressed-koreans

2. (Isia) – Jokowi: From bamboo shack to the presidential palace

http://news.asiaone.com/print/news/asia/jokowi-bamboo-shack-presidential-palace

3. (Korea) – Samsung’s First Family Struggles to Keep Grip on Company; “It was the cross shareholding structure that made it all possible for Chairman Lee and his family to control Samsung with a tiny stake,”

http://www.bloomberg.com/news/print/2014-07-22/inside-the-lee-family-s-struggle-to-keep-grip-on-samsung.html

4. (Korea) – South Korea Invites Foreigners to “Imagine Your Korea”, the spearhead for the country’s attempts to bring in 20 million tourists to the country – almost double the 12 million foreign visitors came in 2013

http://blogs.wsj.com/korearealtime/2014/07/22/south-korea-invites-foreigners-to-imagine-your-korea/

5. (China) – Luxury-Car Makers Attract Scrutiny in China; Economic-Planning Agency Speaks With Manufacturers About Consumer Complaints

http://online.wsj.com/articles/mercedes-picks-up-the-pace-in-china-1406012109

6. (Isia) – Living Dangerously in Indonesia; An election dispute risks becoming an assault on democracy

http://online.wsj.com/articles/living-dangerously-in-indonesia-1406047894

7. (Msia) – Vun, 6 others charged with rigging in Malaysia’s DVM Tech shares

http://www.thestar.com.my/Business/Business-News/2014/07/23/Seven-said-to-have-created-false-market-in-trading-of-DVM-Technology-shares/

8. (Japan) – Japan’s convenience store giants leave smaller rivals in dust

http://www.japantimes.co.jp/news/2014/07/22/business/corporate-business/convenience-store-giants-leave-smaller-rivals-dust/#.U88ggPmSxqU

9. (India/Healthcare) – Strand Life Sciences: Bringing Genetic Tests To The Average Customer

http://forbesindia.com/printcontent/38240

10. (India/Tech/Healthcare) – CitiusTech: Pioneers Of Health care Analytics

http://forbesindia.com/printcontent/38250

11. Hong Kong-Shanghai equities ‘through-train’ on track

http://www.ft.com/intl/cms/s/0/93579c80-113d-11e4-b116-00144feabdc0.html#axzz38G7rspZt

12. (Japan/Tech) – Wacom Launches Bamboo Paper On Android, Windows 8 And Kindle Fire

http://techcrunch.com/2014/07/22/wacom-launches-bamboo-paper-on-android-windows-8-and-kindle-fire/

13. (Isia) – A Child of the Slum Rises as President of Indonesia

http://www.nytimes.com/2014/07/23/world/asia/joko-widodo-populist-governor-is-named-winner-in-indonesian-election.html

14. (Japan) – Japan readies fuel cell subsidies in bet on Toyota’s next big thing

http://www.reuters.com/article/2014/07/23/us-japan-autos-fuelcells-idUSKBN0FS19420140723

15. (Isia) – Prabowo’s intransigence leads to self-humiliation

http://news.asiaone.com/print/news/asia/prabowos-intransigence-leads-self-humiliation

16. (Korea) – High-income earners with post-secondary education degrees in South Korea feel less obligated to support their parents, a study conducted by Yonsei University found

http://news.asiaone.com/print/news/asia/high-income-earners-less-obligated-support-parents

17. (Thai) – Thailand mulls end of free medical services for most 49 million Thais

http://news.asiaone.com/print/news/asia/thailand-mulls-end-free-medical-services-most

Life

1. “Authenticity Is As Rare As A Unicorn In Today’s Politically-Motivated Markets”

http://www.zerohedge.com/news/2014-07-22/authenticity-rare-unicorn-todays-politically-motivated-markets

2. The Top 100 Financial History Books As Voted By The Museum Of Finance

http://www.valuewalk.com/2014/07/financial-history-books

3. Tuning In: Improving Your Listening Skills; How to Get the Most Out of a Conversation

http://online.wsj.com/articles/tuning-in-how-to-listen-better-1406070727?mod=WSJ_hpp_MIDDLE_Video_Top

4. Expressing Your Vulnerability Makes You Stronger

http://blogs.hbr.org/2014/07/expressing-your-vulnerability-makes-you-stronger/

5. No-Excuse Leadership Lessons from a Marines Captain

http://www.forbes.com/sites/work-in-progress/2014/07/22/no-excuse-leadership-lessons-from-a-marines-captain/print/

6. Intent is important to bring about change

http://forbesindia.com/blog/accidental-investor/intent-is-important-to-bring-about-change/

7. When the time comes to fire the founder; As a company grows, its very success often exposes the founder’s lack of managerial skills

http://www.ft.com/intl/cms/s/0/51195410-10ea-11e4-b116-00144feabdc0.html#axzz38G7rspZt

8. SEEK’s Andrew Bassat takes aim at ‘gutless’ CEOs

http://www.brw.com.au/p/leadership/seek_andrew_bassat_takes_aim_at_genIxlZlbCwDj3tnYJsHnI

9. Why Chasing ‘Extrinsic Goals’ Can Wreck Your Happiness

http://www.businessinsider.sg/extrinsic-goals-are-an-obstacle-to-happiness-2014-7/#.U89FF_mSxqU

TMT

1.

 

Consumer

1. As Cereal Slips, a New Battle Over Breakfast Dollars; Kellogg Gets Squeezed by McDonald’s, Taco Bell as Tastes Shift to High-Protein Foods

http://online.wsj.com/articles/as-cereal-slips-a-new-battle-over-breakfast-dollars-1406053467?mod=WSJ_hp_Asia_EditorsPicks

2. Craving fresh over fake: How the growing trend is making waves in packaged foods

http://business.financialpost.com/2014/07/22/craving-fresh-over-fake-how-the-growing-trend-is-making-waves-in-packaged-foods/

Healthcare

  1. (India/Healthcare) – Strand Life Sciences: Bringing Genetic Tests To The Average Customer

http://forbesindia.com/printcontent/38240

2. (India/Tech/Healthcare) – CitiusTech: Pioneers Of Health care Analytics

http://forbesindia.com/printcontent/38250

3. A Dearth in Innovation for Key Drugs

http://www.nytimes.com/2014/07/23/business/a-dearth-of-investment-in-much-needed-drugs.html?ref=business

4. Apps have wide role in disease management

http://www.ft.com/intl/cms/s/0/5923518c-0b5f-11e4-9e55-00144feabdc0.html#axzz38G7rspZt

5. Mojang: smash-hit ‘Minecraft’ maker; The Swedish start-up behind the low-tech graphics game

http://www.ft.com/intl/cms/s/2/0283b57c-10ca-11e4-b116-00144feabdc0.html#axzz38G7rspZt

6. Amazon is building the retail world’s most unbreachable “moat”-and it’s called Prime

http://qz.com/237933/amazon-is-building-the-retail-worlds-most-unbreachable-moat-and-its-called-prime/

Investing Process

1. The Fine Art Of Picking Hidden Gems in India

http://forbesindia.com/printcontent/38244

Evening Bamboo Insight: 23 Jul 2014

Evening Bamboo Insight: 23 Jul 2014

Macro

1. Investors to Directors, ‘Can We Talk?’ Boards have long shunned speaking with investors for several reasons, including concern about accidentally disclosing sensitive information

http://dealbook.nytimes.com/2014/07/21/investors-to-directors-can-we-talk/?ref=business

2. Cash Crops With Dividends: Financiers Transforming Strawberries Into Securities; With its steady income stream, farmland is proving to be a ripe offering for sophisticated investors

http://dealbook.nytimes.com/2014/07/21/cash-crops-with-dividends-financiers-transforming-strawberries-into-securities/?ref=business

3. How Low Can Volatility Go? Why Tranquility Keeps Traders Awake at Night

http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=3363708

4. “Hide No Harm” Bill Goes After Top Executives; Could new legislation help law enforcement successfully prosecute a company’s highest executives for corporate misdeeds?

http://ww2.cfo.com/fraud/2014/07/hide-harm-bill-goes-top-executives

5. FASB Mulling a Revamped Income Statement

http://ww2.cfo.com/gaap-ifrs/2014/07/fasb-mulling-revamped-income-statement

Asia Pacific

1. Empowering elderly people key to Japan’s growth: ADB think tank chief

http://www.japantimes.co.jp/news/2014/07/21/business/economy-business/empowering-elderly-people-key-to-japans-growth-adb-think-tank-chief/#.U84Mw_mSxqU

2. (China) – More autonomy for China’s top graft watchdog: Duowei

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140722000079&cid=1101

3. (HK) – Next Media/Apple Daily and former Giordano boss and China pariah Jimmy Lai Chee-ying has close links with Burma’s political and military leaders, hobnobbing with its president during a June 2013 trip with a former US defense secretary

http://www.thestandard.com.hk/news_detail.asp?pp_cat=30&art_id=147610&sid=42661669&con_type=3

4. (HK) – Beleaguered MTR Corp chief executive Jay Walder will step down a year before his contract expires – over the two-year delay of the high- speed rail link to Guangzhou. MTRC risked ‘indigestion’ with five projects at once

http://www.thestandard.com.hk/news_detail.asp?we_cat=4&art_id=147559&sid=42655779&con_type=1&d_str=20140721&fc=1

http://www.thestandard.com.hk/news_detail.asp?we_cat=11&art_id=147425&sid=42633001&con_type=3&d_str=20140717&fc=7

5. (HK/China) – Shares of China Packaging Group (0572) plunged 39 percent after the company was informed that its major shareholder, Able Success Asia, would no longer be able to exercise its voting right

http://www.thestandard.com.hk/news_detail.asp?we_cat=2&art_id=147506&sid=42641304&con_type=1&d_str=20140718&fc=8

6. (India) – Sanitation in India: The final frontier; Fixing dreadful sanitation in India requires not just building lavatories but also changing habits

http://www.economist.com/news/asia/21607837-fixing-dreadful-sanitation-india-requires-not-just-building-lavatories-also-changing#sthash.r0fjEZLT.dpbs

7. (India) – India to investigate corruption in healthcare after TV sting operation

http://www.reuters.com/article/2014/07/22/us-india-corruption-idUSKBN0FR0KP20140722

8. (China/Tech) – China has more people going online with a mobile device than a PC

http://www.reuters.com/article/2014/07/21/us-china-internet-idUSKBN0FQ0UL20140721

9. (Isia) – Battered by election, Indonesia’s new president faces party clash

http://www.reuters.com/article/2014/07/22/us-indonesia-election-party-insight-idUSKBN0FR2EU20140722

10. (China) – China’s secretive military cracks open door for glimpse inside

http://www.reuters.com/article/2014/07/22/us-china-defence-idUSKBN0FR0KH20140722

11. (Japan) – Once again, Japan’s baby boomers are asking: What am I?

http://news.asiaone.com/print/news/asia/once-again-japans-baby-boomers-are-asking-what-am-i

12. (India) – Modi’s Ganges clean-up plan may sink amid tough challenge

http://news.asiaone.com/print/news/asia/modis-ganges-clean-plan-may-sink-amid-tough-challenge

Life

1. In an emotional farewell email to colleagues, co-founder Wayne Hsieh criticized Asus’s management style, saying the company’s leaders do not use people based on their abilities but on their personal relationships with them

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140721000124&cid=1602

2. Successful R&D management

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992342

3. Hello Kitty designer defends cat as brand turns 40

http://www.chinapost.com.tw/print/412623.htm

4. Australian invents ‘world’s smallest washing machine’; Australian inventor hopes his ‘travel size washing machine’ will help revolutionise the camping and trekking industry

http://www.theage.com.au/small-business/entrepreneur/australian-invents-worlds-smallest-washing-machine-20140702-3b8qv.html

5. In new comics, paintings and popular books, depictions of Hindu deities are being reimagined

http://online.wsj.com/articles/in-india-hindu-gods-get-a-muscular-makeover-1405996202

6. Why Power in the Workplace Makes People Feel They Control Time; Positions of Authority Create a Sense of Control Over the Clock, Studies Find

http://online.wsj.com/articles/why-power-and-status-in-the-workplace-make-people-feel-they-control-time-1405984403?mod=WSJ_hp_Asia_EditorsPicks

7. In the late 1800s, William Lever was looking at the slums in London and his mission statement is to make cleanliness commonplace. He believed that the humble bar of soap could have a major social impact by being a force for good

http://blogs.hbr.org/2014/07/reinventing-the-chief-marketing-officer-an-interview-with-unilever-cmo-keith-weed/

8. Hointer: How a mathematician got micro-robots to sell you jeans

http://www.theage.com.au/business/retail/hointer-how-a-mathematician-got-microrobots-to-sell-you-jeans-20140722-zvqel.html

9. Why the human resources department must go

http://www.brw.com.au/p/leadership/why_the_human_resources_department_QN8cMWKajxMWn0yNHhyaQK

10. Rob Arnott turned the world of passive index investing upside down; Funds running Arnott’s models manage almost $200 billion dollars

http://www.bloombergview.com/articles/2014-07-21/masters-in-business-rob-arnott

11. 7 Ways You Can Easily Increase Your Willpower

http://www.bakadesuyo.com/2014/07/willpower/

12. 9 Tricks For Waking Up Earlier

http://www.businessinsider.sg/how-to-wake-up-earlier-2014-7/#.U84VtvmSxqU

13. Does Your Company Keep Its Promises? Despite best intentions, many businesses struggle with “commitment drift.”

http://www.strategy-business.com/article/00267?tid=27782251&pg=all

14. How to Re-Discover Your Motivation

http://www.fastcompany.com/3033268/hit-the-ground-running/how-to-re-discover-your-motivation

15. Why You Lead Determines How Well You Lead

http://blogs.hbr.org/2014/07/why-you-lead-determines-how-well-you-lead/

16. Engagement the only way to transcend fear

http://www.todayonline.com/print/707476

17. Do-It-Yourself Leadership Training in China

http://sloanreview.mit.edu/article/do-it-yourself-leadership-training-in-china

TMT

1. Finland cashes in on cold by luring data storage firms

http://www.chinapost.com.tw/print/412852.htm

2. (Tech/Media) – Netflix, Growing, Envisions Expansion Abroad

http://www.nytimes.com/2014/07/22/business/media/netflix-says-it-topped-50-million-subscribers.html?ref=business&_r=0

3. Using The Computer to Predict Tech Startup Success; Correlation Ventures trusts only a computer to figure out which tech startups to bet on next. So far it appears to be working

http://forbesindia.com/printcontent/38248

4. (China/Tech) – Alibaba Says It Relies on Markets, Not Connections, To Drive Its Business

http://dealbook.nytimes.com/2014/07/21/alibaba-says-it-relies-on-markets-not-connections

5. Corporate computing: Big Blue Apple; A novel alliance may reshape mobile computing for companies

http://www.economist.com/news/business/21607858-novel-alliance-may-reshape-mobile-computing-companies-big-blue-apple

6. Little things that mean a lot: Businesses should aim for lots of small wins from “big data”, that add up to something big

http://www.economist.com/news/business/21607816-businesses-should-aim-lots-small-wins-big-data-add-up-something-big-little

Consumer

1. Fashion: A better business model; Inditex has become the world’s largest fashion retailer. But how long can its dizzying expansion last?

http://www.ft.com/intl/cms/s/2/a7008958-f2f3-11e3-a3f8-00144feabdc0.html#slide0

Healthcare

1. Probiotics might help lower blood pressure

http://www.reuters.com/article/2014/07/21/us-probiotics-blood-pressure-idUSKBN0FQ20M20140721

2. Probiotic Logic vs. Gut Feelings; Like all over-the-counter dietary supplements, probiotics undergo no premarket screening for safety, effectiveness or even truth in packaging

http://well.blogs.nytimes.com/2014/07/21/probiotic-logic-vs-gut-feelings/?ref=health

3. Low-cost fertility treatment: In vitro fertilisation, once seen as miraculous, is now mainstream in rich countries. Soon it may be cheap enough to help infertile people in poor places, too

http://www.economist.com/news/international/21607881-vitro-fertilisation-once-seen-miraculous-now-mainstream-rich-countries-soon#sthash.Xs0WKqIX.dpbs

4. Tests for Alzheimer’s are improving. Treatment is still some way off

http://www.economist.com/news/science-and-technology/21607761-tests-alzheimers-are-improving-treatment-still-some-way-recherche-du

5. A new home for orphans: Shire’s focus on rare-disease treatments may prove a long-term advantage

http://www.economist.com/news/business/21607859-shires-focus-rare-disease-treatments-may-prove-long-term-advantage-new-home-orphans

Investing Process

1. Research – Agency Theory in Practice: a Qualitative Study of Hedge Fund Activism in Japan

2. Research – Large Shareholders, Shareholder Proposals, and Firm Performance: Evidence from Japan

3. Research – Politically Connected Firms and Earnings Informativeness in the Controlling versus Minority Shareholders Context: European Evidence

4. Equities’ great survivors and the value of compounding

http://www.ft.com/intl/cms/s/0/ad4c8714-f85a-11e3-815f-00144feabdc0.html

5. Research – How Many Patents Does it Take to Signal Innovation Quality?

Morning Bamboo Insight: 23 Jul 2014

Morning Bamboo Insight: 23 Jul 2014

Macro

1. (Macro/Tech) – Will The UK Become The World’s Leading Urban Innovation Lab?

http://www.forbes.com/sites/federicoguerrini/2014/07/18/why-the-uk-believes-it-can-become-the-worlds-leading-urban-innovation-lab/print/

2. A horrible, ugly, stressful process’: The five-year legacy of Canada’s auto bailout

http://business.financialpost.com/2014/07/19/a-horrible-ugly-stressful-process-the-five-year-legacy-of-canadas-auto-bailout/

3. A corporate malaise is afflicting the West; Today’s moguls prefer safe takeovers and downsizing to ambitious risk-taking

http://www.telegraph.co.uk/finance/globalbusiness/10973878/A-corporate-malaise-is-afflicting-the-West.html

4. Indesit sale could be wake up call for Italy to support family businesses

http://www.campdenfb.com/article/indesit-sale-could-be-wake-call-italy-support-family-businesses

5. How Russian Hackers Stole the Nasdaq

http://www.businessweek.com/articles/2014-07-17/how-russian-hackers-stole-the-nasdaq

6. Imminent collapse of gigantic fraud Herbalife

http://ftalphaville.ft.com/2014/07/21/1903382/imminent-collapse-of-gigantic-fraud-promised-by-short-seller/

7. Putinism Thrives on Dirty Money; Western leaders ignored Putin’s bad behavior as long as Russian money flowed in. Flight 17 changes all that

http://online.wsj.com/articles/oliver-bullough-putinism-thrives-on-dirty-money-1405984666

8. Money Manager Foiled by Bad Bets: Balestra Capital’s James Melcher, Like Many ‘Macro Traders,’ Is Feeling the Pain This Year

http://online.wsj.com/articles/money-manager-foiled-by-bad-bets-1405988086

Asia Pacific

1. (Korea/Tech) – Korea’s Entrepreneurs Garner Global Validation As Local ‘Startup’ Valuations Soar Into The Billions

http://www.forbes.com/sites/alanmcglade/2014/07/18/koreas-entrepreneurs-garner-global-validation-as-local-startup-valuations-soar-into-the-billions/print/

2. (China) – Expired meat scandal rocks fast food chains across China

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140721000120&cid=1103

3. (Korea/Tech) – Seoul to crack down on Uber rides; Seoul may start its own ride-sharing app

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2992353

4. (Isia) – Tactical brains behind Prabowo campaign

http://news.asiaone.com/print/news/asia/tactical-brains-behind-prabowo-campaign

5. (Asean) – Rolls-Royces and rags mix on Phnom Penh’s streets

http://www.ft.com/intl/cms/s/0/c5379066-0e59-11e4-b1c4-00144feabdc0.html#axzz38AxO7Peo

6. (Isia) – Indonesian presidential candidate Prabowo Subianto wants a two-week delay in announcing the result of the election to allow investigations into allegations of mass cheating

http://www.channelnewsasia.com/news/asiapacific/prabowo-wants-two-week/1276296.html

7. (Spore) – Monetary Authority of Singapore (MAS) proposed a set of regulations for investments linked to land banks, gold and other physical assets to boost investor protection – following several scams that have left retail investors high and dry

http://www.businesstimes.com.sg/premium/top-stories/regulator-plans-new-rules-shield-investors-20140722

8. (Isia/Msia) – Jitters over Indonesia’s proposed banking bill; Malaysian ownership of Indonesian banks came under the spotlight again following a proposed bill that compels foreign banks to trim their interests to 40%.

http://www.thestar.com.my/Business/Business-News/2014/07/22/Jitters-over-Indonesias-proposed-banking-bill

9. (Isia) – In Indonesia’s Battle With Bootleg Goods, a Very Genuine Economic Toll

http://www.thejakartaglobe.com/business/indonesias-battle-bootleg-goods-genuine-economic-toll/

10. (Isia) – In Golkar, a Party Gravitating Toward Jokowi

http://www.thejakartaglobe.com/news/golkar-party-gravitating-toward-jokowi/

11. (Isia) – Basuki Admits Jakarta Smart Card Not Effective

http://www.thejakartaglobe.com/news/jakarta/basuki-admits-jakarta-smart-card-effective/

12. (Msia) – Najib’s Megabank Seen Challenging HSBC in Sukuk

http://www.thejakartaglobe.com/business/najibs-megabank-seen-challenging-hsbc-sukuk/

Life

1. New Video Games Teach Caring And Compassion

http://www.forbes.com/sites/jordanshapiro/2014/07/19/new-video-games-teach-caring-and-compassion/print/

2. Is Bigger Better? “There is not enough time to debate what are best practices. A company needs to get consistent before they can determine what is best.”

http://www.forbes.com/sites/loracecere/2014/07/18/is-bigger-better/print/

3. 5 Questions To Help You Define Your Leadership Brand

http://www.forbes.com/sites/work-in-progress/2014/07/18/5-questions-to-help-you-define-your-leadership-brand/print/

4. Patterns: How To Predict The Next Big Thing In Business

http://www.forbes.com/sites/cherylsnappconner/2014/07/16/pattern-recognition-how-to-predict-the-next-big-thing-in-business/print/

5. What Rockers Can Teach Entrepreneurs

http://www.forbes.com/sites/ruthblatt/2014/07/17/what-rockers-can-teach-entrepreneurs/print/

6. Four Success Strategies From Failed Business Models

http://www.forbes.com/sites/mitchfree/2014/07/21/four-success-strategies-from-failed-business-models/print/

7. The Fastest Way To Life Success: Vulnerability

http://www.forbes.com/sites/lawtonursrey/2014/07/20/the-fastest-way-to-life-success-vulnerability/print/

8. Podium Power: 7 Steps To A Rock Solid Speech

http://www.forbes.com/sites/rodgerdeanduncan/2014/07/18/podium-power-7-steps-to-a-rock-solid-speech/print/

9. How Do You Recognize A Great Entrepreneur?

http://www.forbes.com/sites/toddhixon/2014/07/18/how-to-recognize-a-great-entrepreneur/print/

10. The CEO Pivot Puzzle; Product definition is a challenge for any startup. But it’s significantly harder for a company that is in an evolving market

http://www.forbes.com/sites/stevenrosenbaum/2014/07/17/the-ceo-pivot-puzzle/print/

  1. Michael Dirda: A Science Fiction Reading List

http://www.forbes.com/sites/johnfarrell/2014/07/20/michael-dirda-a-science-fiction-reading-list/print/

12. Keep Time and Emotion from Killing a Negotiation

http://blogs.hbr.org/2014/07/keep-time-and-emotion-from-killing-a-negotiation/

13. Resentment, Jealousy, Feuds: A Look at Intel’s Founding Team

http://blogs.hbr.org/2014/07/resentment-jealousy-feuds-a-look-at-intels-founding-team/

14. The Industrial Revolution That Never Was; the creation of large-scale factories nearly began not in England, but in Great Britain’s American colonies, 250 years ago. The American version failed miserably

http://blogs.hbr.org/2014/07/the-industrial-revolution-that-never-was/

15. Don’t Sell a Product, Sell a Whole New Way of Thinking; Innovators change the lens through which we see the world; Mental models are how the brain makes sense of the vast amount of information to be processed every moment of every day

http://blogs.hbr.org/2014/07/dont-sell-a-product-sell-a-whole-new-way-of-thinking/

16. You Can’t Be a Great Manager If You’re Not a Good Coach

http://blogs.hbr.org/2014/07/you-cant-be-a-great-manager-if-youre-not-a-good-coach/

17. True leaders are absorbed in something much bigger than self. “One of the signals that a person is in wu-wei is that the person has de, translated as ‘virtue’, ‘power’, or ‘charismatic power.'”

http://blogs.hbr.org/2014/07/lead-without-trying-so-hard/

18. The one trait successful leaders share; An active coper quickly recovers from setbacks, opens up to the people around her and is aware of her own motivations, strengths and shortcomings

http://fortune.com/2014/07/17/successful-leadership-traits/

19. The art of predicting business risks: Why non-experts do it better

http://fortune.com/2014/07/15/the-art-of-predicting-business-risks-why-non-experts-do-it-better/

20. The Problem With Founders; Starting a business may be hard, but scaling a business is where all the value of a company gets built

http://techcrunch.com/2014/07/20/the-problem-with-founders/

21. Norberto Odebrecht, the man who turned his father’s small engineering firm into a construction empire, has died at the age of 93 in his hometown of Salvador, Brazil

http://www.campdenfb.com/article/odebrecht-founder-dies-brazil-aged-93

22. When familial ties force a young next-gen into leadership

http://www.campdenfb.com/article/when-familial-ties-force-young-next-gen-leadership

23. The Secret History Behind The Science Of Stress

http://www.npr.org/blogs/health/2014/07/07/325946892/the-secret-history-behind-the-science-of-stress

24. Why the Myers-Briggs test is totally meaningless

http://www.vox.com/2014/7/15/5881947/myers-briggs-personality-test-meaningless

25. Innovation: Australia can learn some (very) small things from Switzerland

http://www.brw.com.au/p/business/innovation_australia_can_learn_some_6qVXAeLT6kotdrwmqegFvM

TMT

1. When Amazon Acts Like A Start-up: Why Amazon Has Entered The Ebook Subscription Market

http://www.forbes.com/sites/jeremygreenfield/2014/07/18/when-amazon-acts-like-a-start-up-why-amazon-has-entered-the-ebook-subscription-market/print/

2. (Macro/Tech) – Will The UK Become The World’s Leading Urban Innovation Lab?

http://www.forbes.com/sites/federicoguerrini/2014/07/18/why-the-uk-believes-it-can-become-the-worlds-leading-urban-innovation-lab/print/

3. Selling apps, television shows, e-books, music and games through Google Play is becoming a big business for the tech giant. In five years, Google Play has gone from an upstart marketplace for mobile phone apps to a mammoth media hub

http://fortune.com/2014/07/18/the-rise-of-google-play/

4. Illiquid Till Exit: Is the golden era of secondary share sales over for startups?

http://fortune.com/2014/07/21/illiquid-till-exit-golden-era-secondary-share-sales-over-startups/

5. Xiaomi vs Huawei: The showdown of Chinese smartphone brands

http://e27.co/xiaomi-vs-huawei-the-showdown-of-chinese-smart-phone-brands-20140716/

6. (China/Tech) – Alibaba Has Big Hopes for New Big Data Processing Servic

http://english.caixin.com/2014-07-17/100705224.html

7. At EMC, Marriage Requires Investment; EMC’s marriage to VMware has stood the test of time so far. But outside pressure will put the tech giant on the spot to justify the continued relationship

http://online.wsj.com/articles/heard-on-the-street-at-emc-marriage-requires-investment-1405971209

Consumer

1. Tesco has forgotten what it was good at – and Aldi and Lidl have taken advantage; Britain’s biggest retailer has lost connection with customers and focus on price

http://www.telegraph.co.uk/finance/newsbysector/epic/tsco/10979808/Tesco-has-forgotten-what-it-was-good-at-and-Aldi-and-Lidl-have-taken-advantage.html

2. Cheap at sea, pricey on the plate: The voodoo of lobster economics

http://www.theglobeandmail.com/news/national/my-travels-with-larry/article19557387/

Investing Process

1. Sino-Forest CFO fined $700,000 and banned from boards in settlement with Ontario Securities Commission

http://business.financialpost.com/2014/07/21/sino-forest-cfo-fined-700000-and-banned-from-boards-in-settlement-with-ontario-securities-commission/

2. GMO 2Q14 Letter: Free Lunches and the Food Truck Revolution

http://www.gmo.com/websitecontent/GMO_QtlyLetter_2Q14.pdf

Books

1. Books – Trying Not to Try: The Art and Science of Spontaneity

http://www.amazon.com/Trying-Not-Try-Science-Spontaneity/dp/product-description/0770437613/

Morning Bamboo Insight: 22 Jul 2014

Morning Bamboo Insight: 22 Jul 2014

Macro

1. Revenue transition group debates difficult implementation issues

http://www.journalofaccountancy.com/News/201410572.htm

2. Why The 21st Century May Be Even More Of An ‘American Century’ Than The 20th Century Ever Was

http://www.businessinsider.com/why-the-21st-century-may-be-even-more-of-an-american-century-than-the-20th-century-ever-was-2014-7

3. DRUCKENMILLER: IBM Is The ‘Poster Child’ For What’s Wrong With Corporate Behavior Today

http://www.businessinsider.sg/stan-druckenmiller-on-ibm-2014-7/

4. Quite Contrary: Investors have shunned cyclical stocks in favor of utilities and Internet stocks. Time to bet on global growth

http://online.barrons.com/news/articles/SB50001424053111904255004580029403830727866

5. The conundrum of asset allocation

http://www.economist.com/news/finance-and-economics/21607848-conundrum-asset-allocation-no-easy-answers

6. The BRICS bank: Setting up rivals to the IMF and World Bank is easier than running them

http://www.economist.com/news/finance-and-economics/21607851-setting-up-rivals-imf-and-world-bank-easier-running-them-acronym

7. Africans Open Fuller Wallets to the Future; Across sub-Saharan Africa, consumer demand is fueling the continent’s economies in new ways, driving hopes that Africa will emerge as a success story

http://www.nytimes.com/2014/07/21/world/africa/economy-improves-as-middle-class-africans-open-wallets-to-the-future.html?ref=business

Asia Pacific

1. (Korea/Tech) – Foreign companies eye Korean mobile game market

http://news.asiaone.com/print/news/asia/foreign-companies-eye-korean-mobile-game-market

2. (China) – China Purge Fears Paralyzing Government And Undercutting The Economy

http://www.forbes.com/sites/gordonchang/2014/07/20/china-purge-fears-paralyzing-government-and-undercutting-the-economy/print/

3. (India) – Despite Dramatic Half-Billion-Dollar Award In Satyam Scandal, ‘India’s Enron,’ It May Be Years Before Investors See A Dime

http://www.forbes.com/sites/saritharai/2014/07/21/despite-dramatic-half-billion-dollar-award-in-satyam-scandal-indias-enron-it-may-be-years-before-investors-see-a-dime/print/

4. (Isia) – Cinemaxx Global Pasifik, the movie theater chain operator unit of Lippo Group, has set aside Rp 6 trillion ($517 million) to open up to 300 cineplexes across the country within the next 10 years

http://www.thejakartaglobe.com/business/cinemaxx-set-open-300-cineplexes-next-decade/

5. (Isia) – Indonesian Companies Don’t Focus Enough on Their Brand Values: Analyst

http://www.thejakartaglobe.com/business/indonesian-companies-dont-focus-enough-brand-values-analyst/

6. (Isia) – At Sinar Mas, a Land Giant in Safe Hands

http://www.thejakartaglobe.com/business/sinar-mas-land-giant-safe-hands/

7. (China) – China scolds regional governments, officials for being ‘lazy’

http://news.asiaone.com/print/news/asia/china-scolds-regional-governments-officials-being-lazy

8. (Spore) – Singapore’s Auditor-General lists govt agencies’ lapses

http://www.businesstimes.com.sg/archive/friday/premium/top-stories/auditor-general-lists-govt-agencies-lapses-20140718

9. (India/Consumer) – Switzerland’s Swatch to open stores in India: Report

http://business.asiaone.com/print/news/switzerlands-swatch-open-stores-india-report

10. (Thai) – Thai Brothers Emerge as Billionaires With CP Group Stakes

http://www.bloomberg.com/news/print/2014-07-13/thai-brothers-emerge-as-billionaires-with-cp-group-stakes.html

11. (Spore) – Singapore’s PastaMania bulks up to be big food group

http://www.businesstimes.com.sg/premium/top-stories/pastamania-bulks-be-big-food-group-20140721

12. (Taiwan) – Empty apartments in Hsinchu are missing Taiwan’s hi-tech glory days

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1204&MainCatID=12&id=20140706000003

13. (China/Taiwan) – Pu’er tea bricks become investment of choice for rich Taiwanese

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1203&MainCatID=12&id=20140719000116

14. (China) – Growing foreign presence in China’s dairy sector a concern: experts

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140720000022&cid=1202

15. (China/Tech) – Qualcomm to face strong competition in China’s 4G chip market

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140720000021&cid=1202

16. (China/Tech) – IBM launches ‘Green Horizon’ to help Beijing curb smog woes

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140720000023&cid=1206

17. (China/Tech) – Tencent QQ Wallet heating up competition in mobile payment market

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140721000004&cid=1202

18. (China) – Time will tell if anti-graft campaign is more than power struggle

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140721000011&cid=1701

Life

1. The case for employees to pick their CEO

http://fortune.com/2014/07/18/ceo-selection/

2. 7 Secrets Of Building A Customer-Centric Company Culture

http://www.forbes.com/sites/micahsolomon/2014/07/20/customer-centric-culture/print/

3. 4 Ways To Beat Disruptive Innovation

http://www.forbes.com/sites/gregsatell/2014/07/20/4-ways-to-beat-disruptive-innovation/print/

4. Karl Albrecht, Billionaire Co-Founder of Aldi Stores, Dies at 94

http://www.bloomberg.com/news/2014-07-21/karl-albrecht-billionaire-co-founder-of-aldi-stores-dies-at-94.html

5. The Lives and Times of the CEO: From 100 years back to a quarter century ahead, the evolution of the chief executive officer

http://www.strategy-business.com/article/00254?tid=27782251&pg=all

6. 10 Principles of Leading Change Management: These time-honored tools and techniques can help companies transform quickly

http://www.strategy-business.com/article/00255?tid=27782251&pg=all

7. James Altucher: Why Startup Founders Should Say No To Almost Everything

http://www.forbes.com/sites/danschawbel/2014/07/21/james-altucher-why-startup-founders-should-say-no-to-almost-everything/print/

8. The Myth Of Warren Buffett Is One Of The Greatest Misconceptions In The Financial World

http://www.businessinsider.com/myth-you-too-can-become-warren-buffett-2014-7

9. 14 Tricks To Improve Your Decision Making

http://www.businessinsider.com/make-better-decisions-2014-7

10. 7 Public Speaking Tips From A Toastmasters Pro

http://www.businessinsider.com/toastmasters-public-speaking-tips-2014-7

11. 4 Lessons Every Business Leader Can Learn From Legendary Marine General James ‘Mad Dog’ Mattis

http://www.businessinsider.com/mattis-leadership-talk-2014-7

12. After 17 years, Bill Campbell steps down from Apple’s board; The one-time Apple executive reflects on his long association with the company and its co-founder, Steve Jobs

http://fortune.com/2014/07/17/bill-campbell-apple-intuit-board/

13. How Brooklyn Brewery Tripled Sales In 5 Years Without Traditional Advertising

http://www.businessinsider.com/brooklyn-brewerys-growth-2014-7

14. How To Become So Good They Can’t Ignore You

http://www.businessinsider.com/become-so-good-they-cant-ignore-you-2014-7

15. These Are The Avoidable Mistakes Startup Founders Make Again And Again

http://www.businessinsider.com/avoidable-mistakes-startup-founders-make-2014-7

16. 37 Products With Crazy-High Markups

http://www.businessinsider.com/products-high-markups-2014-7

17. ASTRONOMER: We Think We’re Close To Finding Life On Another Planet; For the first time in history, humanity is within reach of finding Earth-like planets where life exists, but these extraterrestrials may not take the form of intelligent beings

http://www.businessinsider.com/aliens-wont-look-like-et-2014-7

18. Stuart Scott Gives A Powerful Speech About His Battle With Cancer

http://www.businessinsider.com/stuart-scotts-espy-speech-fighting-cancer-2014-7

http://www.youtube.com/watch?v=0Y6hOb0c1yc

http://www.youtube.com/watch?v=-50C_2Q5VO8

19. 5 Warning Signs A Startup Company Is A Terrible Investment

http://www.businessinsider.com/signs-startup-bad-investment-2014-7

20. This German Designer Told Young Steve Jobs His Computers Were Ugly, And What Happened Next Changed Apple Forever

http://www.businessinsider.com/early-apple-designer-hartmut-esslinger-2014-7

21. 13 Tricks For Falling Asleep Faster

http://www.businessinsider.sg/tricks-to-fall-asleep-faster-2014-7/#.U8wHiPmSxqU

22. A Call to Fight Malaria One Mosquito at a Time by Altering DNA

http://www.nytimes.com/2014/07/17/science/a-call-to-fight-malaria-one-mosquito-at-a-time-by-altering-dna.html?ref=science&_r=0

23. Be nice to your germs, they keep you alive

http://www.theage.com.au/technology/sci-tech/be-nice-to-your-germs-they-keep-you-alive-20140719-zua1w.html.html

24. Economics and ethics: Lying commies; The more people are exposed to socialism, the worse they behave

http://www.economist.com/news/finance-and-economics/21607830-more-people-are-exposed-socialism-worse-they-behave-lying-commies

TMT

1. What Qplay Got Right About Curated Content

http://www.forbes.com/sites/stevenrosenbaum/2014/07/19/what-qplay-got-right-about-curated-content/print/

2. (Korea/Tech) – Foreign companies eye Korean mobile game market

http://news.asiaone.com/print/news/asia/foreign-companies-eye-korean-mobile-game-market

3. This Is Why You Shouldn’t Launch Your Startup In Silicon Valley

http://www.businessinsider.sg/dont-launch-a-startup-in-silicon-valley-2014-7

4. Daktronics has become one of the largest makers of sports video displays as teams try to recreate the living room experience in their parks

http://www.nytimes.com/2014/07/20/sports/football/daktronics-plays-outsize-role-as-giant-sports-video-displays-proliferate.html

5. Tech World’s Challenge: Staying New; The paradox of innovation is that creative disrupters, assuming they succeed, eventually are in danger of being the disrupted

http://www.nytimes.com/2014/07/19/upshot/tech-worlds-challenge-staying-new-.html?ref=technology

6. Digital archaeologists dig up internet’s past; In an age in which uninterrupted access to the sum total of human knowledge now seems a given, we’re in paradoxical danger of losing a lot of recent history

http://www.theage.com.au/digital-life/digital-life-news/digital-archaeologists-dig-up-internets-past-20140719-zta4z.html.html

Consumer

1. Potbelly’s Latest Struggles Are A Reminder Of What Chipotle Does Best

http://www.businessinsider.com/potbellys-latest-struggles-are-a-reminder-of-what-chipotle-does-best-2014-7

2. Three Reasons Chick-fil-A Is Destroying KFC

http://www.businessinsider.com/report-chick-fil-a-is-bigger-than-kfc-2014-7

3. Hasbro to Collaborate With 3-D Printing Company to Sell Artwork

http://www.nytimes.com/2014/07/21/business/hasbro-selling-my-little-pony-fan-art.html?ref=business&_r=0

Healthcare

1. Biological Pacemakers: Researchers Have Created Cells That Help The Heart Keep The Perfect Pace

http://www.businessinsider.com/r-gene-therapy-creates-biological-pacemaker-cells-for-the-heart-2014-16

2. Busy Doctors, Wasteful Spending; Why cutting payments to physicians ends up costing money

http://www.nytimes.com/2014/07/21/opinion/busy-doctors-wasteful-spending.html?ref=opinion

 

Evening Bamboo Insight: 21 Jul 2014

Evening Bamboo Insight: 21 Jul 2014

Macro

1. The Risk Of Being Seen as Savvy; Who should get to invest in deals that aren’t available to the general public?

http://online.wsj.com/news/articles/SB20001424052702304223004580035533802993368

2. Germany’s Merkel Avoids Painful Economic Reforms; It’s what Merkel’s not doing that worries German economists

http://www.businessweek.com/articles/2014-07-17/germanys-merkel-avoids-painful-economic-reforms

3. The BRICS Don’t Need a Bank of Their Own

http://www.businessweek.com/articles/2014-07-17/brics-dont-need-development-bank-of-their-own

4. Through a flurry of recent enforcement actions, market cops are targeting suspected fraud among the thousands of tiny “microcap” companies, or penny stocks

http://online.wsj.com/articles/seven-indicted-on-a-charge-of-manipulating-stock-moves-1405613211

5. How Washington Whittles Away Property Rights; When government thinks that it ultimately owns all income, bureaucrats never tire of finding ways to spend it

http://online.wsj.com/articles/michael-boskin-how-washington-whittles-away-property-rights-1405552997

6. Companies are getting more expensive to buy. But instead of walking away, buyout firms are paying up

http://online.wsj.com/articles/buyout-shops-must-dig-deeper-into-wallets-for-purchases-1405550548

7. US Treasury Admits Collateral Problem In Bond Market; Considers Issuing Ultra Long-Dated Bonds

http://www.zerohedge.com/news/2014-07-18/us-treasury-admits-collateral-problem-bond-market-considers-issuing-ultra-long-dated

8. The Quiet Movement to Make Government Fail Less Often

http://www.nytimes.com/2014/07/15/upshot/the-quiet-movement-to-make-government-fail-less-often.html?ref=economy

9. Holding Company Of Portugal’s 2nd Largest Bank Just Filed For Bankruptcy Protection

http://www.zerohedge.com/news/2014-07-18/holding-company-portugals-2nd-largest-bank-just-filed-bankruptcy-protection

Asia Pacific

1. (China) – Huge embezzlement in China’s affordable housing projects

http://news.xinhuanet.com/english/china/2014-07/18/c_133493877.htm

2. A Japanese Hamlet Is Now an Economics Lab; Prime Minister Abe has designated six special economic zones for experiments in deregulation

http://www.businessweek.com/articles/2014-07-17/japans-economic-experiment-gives-yabu-hope-for-farming-revival

3. (China) – In China, Joining the Army Will Cost You; It can cost Chinese families 50,000 yuan to 100,000 yuan to secure a spot in the PLA for their son or daughter

http://www.businessweek.com/articles/2014-07-17/chinese-army-applicants-pay-recruiters-to-get-limited-slots

4. (China) – Chinese traders grew more cautious about private bond issuers after a construction company warned that it might default on a 400 million yuan ($64.5 million) bond

http://online.wsj.com/articles/chinese-construction-company-huatong-warns-on-bond-default-1405580900

5. (China/Tech) – Yahoo and Alibaba: Less Isn’t More

http://online.wsj.com/articles/heard-on-the-street-yahoo-and-alibaba-less-isnt-more-1405524610

6. (China/Energy) – China Flexes Might With Energy Giants; South China Sea Quarrel Chills Drilling by Some Oil Companies

http://online.wsj.com/articles/china-tells-oil-companies-to-choose-sides-in-territorial-dispute-1405529382

7. (China) – Chinese Commodity Contagion Leads To First Letter Of Credit Settlement Failure

http://www.zerohedge.com/news/2014-07-18/chinese-commodity-contagion-leads-first-letter-credit-settlement-failure

8. (India/Healthcare) – Sutures India: Growing In Stature with Wound-Care Products

http://forbesindia.com/printcontent/38234

9. Bikaji Foods: Taking the Taste of Bikaner Global; The Agarwals of Bikaner, descendants of Haldiram Bhujiawala, are packaging their local flavour for a national and global market

http://forbesindia.com/printcontent/38228

Life

1. Leonard Cohen on Creativity, Hard Work, and Why You Should Never Quit Before You Know What It Is You’re Quitting

http://www.brainpickings.org/index.php/2014/07/15/leonard-cohen-paul-zollo-creativity/

2. How to Find Yourself; “Little triumphs are the pennies of self-esteem.”

http://www.brainpickings.org/index.php/2014/07/17/florence-king-finding-yourself/

3. The Art of Self-Renewal: A Timeless 1964 Field Guide to Keeping Your Company and Your Soul Vibrantly Alive

http://www.brainpickings.org/index.php/2014/07/14/self-renewal-gardner/

4. Barbara Walters on the Art of Conversation, How to Talk to Bores, and What Truman Capote Teaches Us About Being Interesting

http://www.brainpickings.org/index.php/2014/07/16/barbara-walters-how-to-talk/

5. Claude Shannon: The Man Who Turned Paper Into Pixels; If Alan Turing is to be considered the father of modern computing, then the American mathematician Claude Shannon is the architect of the Information Age

http://www.farnamstreetblog.com/2014/07/claude-shannon-paper-into-pixels/

6. Seneca on Gathering Ideas And Combinatorial Creativity; Einstein: “Combinatory play seems to be the essential feature in productive thought.”

http://www.farnamstreetblog.com/2014/07/seneca-on-combinatorial-creativity/

7. Paul Graham: On Arguing With Idiots, Where Ideas Come From, and What Makes Good Programmers

http://www.farnamstreetblog.com/2014/07/paul-graham-hackers-painters/

8. Books – Hackers & Painters: Big Ideas from the Computer Age

http://www.amazon.com/Hackers-Painters-Big-Ideas-Computer/dp/1449389554

9. Learn or Die: Using Science to Build a Leading-Edge Learning Organization

http://www.amazon.com/exec/obidos/ASIN/0231170246/

10. What would you do to be a little smarter every single day?

http://www.quora.com/What-would-you-do-to-be-a-little-smarter-every-single-day/answer/Shane-Parrish-2?srid=i6uc&share=1

11. Interruptions Are Even Worse Than We Thought

http://www.newrepublic.com/article/118714/interruptions-work-make-you-way-less-productive

12. Book Review: ‘The Fantastic Laboratory of Dr. Weigl’ by Arthur Allen; Two scientists who worked to beat typhus and sabotage the Nazis

http://online.wsj.com/articles/book-review-the-fantastic-laboratory-of-dr-weigl-by-arthur-allen-1405713393

http://www.washingtonpost.com/opinions/book-review-the-fantastic-laboratory-of-dr-wiegl-by-arthur-allen/2014/07/18/6b7a85da-01fa-11e4-8572-4b1b969b6322_story.html

13. Book Review: ‘The Intel Trinity’ by Michael S. Malone; A born leader, an ethereal genius and a tough taskmaster built the most important company on the planet

http://online.wsj.com/articles/book-review-the-intel-trinity-by-michael-s-malone-1405718089

14. The Intel Trinity: How Robert Noyce, Gordon Moore, and Andy Grove Built the World’s Most Important Company

http://www.amazon.com/Intel-Trinity-Robert-Important-Company/dp/0062226762/

15. Job Hunting in the Network Age; The LinkedIn founder says you are no longer in charge of your résumé in an interconnected online world, but neither is your boss

http://online.wsj.com/articles/the-weekend-interview-job-hunting-in-the-network-age-1405724333

16. How to Get Ahead by Speaking Vaguely

http://www.businessweek.com/articles/2014-07-17/abstract-speakings-power-when-communications-not-in-the-details

17. How Indiana University Cut Student Debt; By specifying the real cost of loans, the university got students to cut back

http://www.businessweek.com/articles/2014-07-17/how-indiana-university-cut-student-debt

18. Peak Profanity: The Curse Of The Foul-Mouthed CEO; A Bloomberg review of thousands of conference calls recorded in the past 10 years shows CEO cursing spiked after the recession in 2009 and waned as the recovery strengthened

http://www.zerohedge.com/news/2014-07-17/peak-profanity-curse-foul-mouthed-ceo

http://www.bloomberg.com/infographics/2014-07-16/graphic-language-the-curse-of-the-ceo.html

19. Who Made That Scotch Tape?

http://www.nytimes.com/2014/07/20/magazine/who-made-that-scotch-tape.html?ref=economy

20. How To Persuade Anyone Of Anything In 10 Seconds

http://www.businessinsider.com/persuade-anyone-of-anything-2014-7

21. 23 Daily Habits That Will Make You Smarter

http://www.businessinsider.com/daily-habits-that-make-you-smarter-2014-7

22. Daniel Goleman: What Predicts Success? It’s Not Your IQ

https://www.linkedin.com/today/post/article/20140717120528-117825785-what-predicts-success-it-s-not-your-iq?trk=nus-cha-roll-art-title

23. GRANTHAM: Here Are 5 Lessons I Learned From 2 Failed Investments

http://www.businessinsider.com/grantham-5-important-lessons-2014-7

24. Here’s The Secret Behind Taco Bell’s 45-Year Success

http://www.businessinsider.com/secret-behind-taco-bells-45-year-success-2014-7

25. Bill Gates And Warren Buffett Have The Same Favorite Book – And You’ll Love It Too

http://www.businessinsider.com/bill-gates-and-buffett-have-the-same-favorite-book-2014-7

TMT

1. It’s Not TV, It’s HBO: 21st Century Fox and Time Warner’s game of clones

http://www.businessweek.com/articles/2014-07-17/fox-time-warner-combo-would-wield-much-bargaining-power

2. (China/Tech) – Yahoo and Alibaba: Less Isn’t More

http://online.wsj.com/articles/heard-on-the-street-yahoo-and-alibaba-less-isnt-more-1405524610

3. Chloe & Isabel Crafts Its Own Sales Model; Direct Jewelry Seller Branches Out With Help of Independent ‘Merchandisers,’ Considers Expanding Into Asia

http://online.wsj.com/articles/how-i-built-it-chloe-isabel-crafts-its-own-sales-model-1405557127

4. Coming Soon to Social Media: Click to Buy Now; Twitter and Facebook, which are fighting for the attention of social media users and advertisers, both announced baby steps into the world of e-commerce

http://bits.blogs.nytimes.com/2014/07/17/coming-soon-to-social-media-click-to-buy-now/?_php=true&_type=blogs&ref=technology&_r=0

Consumer

1. Pernod Makes a Little Vodka in a Berlin Garage; Pernod aims to win locavore tipplers with a small brand made by franchisees in cities worldwide.

http://www.businessweek.com/articles/2014-07-17/pernod-tries-small-batch-vodka-franchises-for-locavore-appeal

2. Chip Giants Struggle to Break Into Cars; Intel, Qualcomm, and Nvidia lag less well-known chipmakers in the $27.9bn market for car microprocessors. One barrier to entry is the car industry’s safety and reliability standards

http://www.businessweek.com/articles/2014-07-17/intel-qualcomm-and-nvidia-struggle-to-break-into-car-chips

3. Liberty’s Content to Wait at ITV; At a time when U.S. media companies are eyeing bigger content deals, staking a claim on ITV looks smart for Liberty

http://online.wsj.com/articles/libertys-content-to-wait-at-itv-1405604084

4. The outcome of 21st Century Fox’s battle for Time Warner will likely come down to which CEO shareholders trust more: Rupert Murdoch or Jeff Bewkes. Fox Move Signals M&A Time

http://online.wsj.com/articles/shareholders-choice-murdoch-or-bewkes-1405547743

http://online.wsj.com/articles/heard-on-the-street-fox-move-signals-m-a-time-1405539099

5. General Electric has stepped up efforts to find a buyer for its century-old appliance business, one of the company’s final ties to American consumer

http://online.wsj.com/articles/ge-seeks-to-sell-appliance-unit-1405543877

Healthcare

1. What Doctors Can Tell About Your Health Just By Looking At Your Nails

http://www.businessinsider.com/signs-of-disease-in-the-nails-2014-5

Investing Process

1. Buffett’s Achilles’ Heel: Investing in Retail; Billionaire and Berkshire Partner Munger Often Speak of ‘Failures’

http://online.wsj.com/articles/buffetts-achilles-heel-retail-investing-1405539148

Energy

1. (China/Energy) – China Flexes Might With Energy Giants; South China Sea Quarrel Chills Drilling by Some Oil Companies

http://online.wsj.com/articles/china-tells-oil-companies-to-choose-sides-in-territorial-dispute-1405529382

 

 

Morning Bamboo Insight: 21 Jul 2014

Morning Bamboo Insight: 21 Jul 2014

Macro

1. In a Subprime Bubble for Used Cars, Borrowers Pay Sky-High Rates

http://dealbook.nytimes.com/2014/07/19/in-a-subprime-bubble-for-used-cars-unfit-borrowers-pay-sky-high-rates/?_php=true&_type=blogs&emc=edit_th_20140720&nl=todaysheadlines&nlid=36114517&_r=0

2. This Way Up: Mobility in America; Economic mobility is alive and well for Americans who pursue technical or practical training

http://online.wsj.com/articles/this-way-up-mobility-in-america-1405710779?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

3. Slim’s Asset Sales Has People Wondering What He’ll Buy Next; Mexican Billionaire Carlos Slim Owns TracFone That Could Serve as Building Block

http://online.wsj.com/articles/carlos-slim-will-he-go-shopping-in-the-u-s-telecom-market-1405722201?tesla=y&mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424052702303984304580029233486852668.html

4. Bill Marriott: Where Hotels Are Going; The Marriott International chairman on Chinese menus, bigger lobbies and the future of hotels

http://online.wsj.com/articles/bill-marriott-where-hotels-are-going-1405716717?mod=WSJ_hp_EditorsPicks

Asia Pacific

1. (China) – Qingdao Port Warehouse Receipts Forged with Phony Seals, Says Source

http://english.caixin.com/2014-07-18/100706072.html

2. (China/Tech) – Short-seller target NQ Mobile dismisses independent auditor

http://www.reuters.com/article/2014/07/18/us-nq-mobile-auditor-idUSKBN0FN1C220140718?feedType=RSS&feedName=technologyNews

3. (China/Tech) – Red flags: Alibaba’s Ma and Ma’s private equity firm

http://www.reuters.com/article/2014/07/16/us-alibaba-yunfeng-idUSKBN0FL17220140716

4. (China/Tech) – A Westerner’s Inside View of Alibaba Successes and Failures

http://dealbook.nytimes.com/2014/07/16/a-westerners-inside-view-of-alibaba-successes-and-failures

5. (Australia) – Lessons From the Aussie Carbon Victory; Tony Abbott has shown it is possible to challenge the climate orthodoxy and roll back an unpopular tax

http://online.wsj.com/articles/australias-carbon-tax-message-1405616207

http://online.wsj.com/articles/switzer-lessons-from-the-aussie-carbon-victory-1405616379

Life

1. Danish People Really Do Have The Secret To Happiness: It’s In Their DNA; the Danish concept of arbejdsglæde means happiness at work

http://www.fastcoexist.com/3033219/danish-people-really-do-have-the-secret-to-happiness-its-in-their-dna?partner=newsletter

2. Lessons Learned in Emerging Markets Resonate Elsewhere Too; Innovation designed to exploit opportunities in emerging markets can be transferred back home to positive effect

http://ww2.cfo.com/global-business/2014/07/lessons-learned-emerging-markets-resonate-elsewhere/

3. Love People, Not Pleasure: What do fame, wealth and lots of sex bring? Exactly the opposite of what you think

http://www.nytimes.com/2014/07/20/opinion/sunday/arthur-c-brooks-love-people-not-pleasure.html

4. The Future of Robot Caregivers

http://www.nytimes.com/2014/07/20/opinion/sunday/the-future-of-robot-caregivers.html

5. Many wealthy families living off their investments are returning to active business operations, impact investing or philanthropy, as they feel they lack of purpose

http://www.campdenfb.com/article/many-wealthy-families-feeling-lack-purpose

6. Leadership Lessons from a War Zone

http://www.fastcompany.com/3033095/hit-the-ground-running/leadership-lessons-from-a-war-zone

7. Math Camp in a Barn: Intensive Instruction, No-Nonsense Discipline; In North Carolina’s poorest county, Indian children get the equivalent of a year’s schooling in three weeks

http://online.wsj.com/articles/naomi-schaefer-riley-math-camp-in-a-barn-intensive-instruction-no-nonsense-discipline-1405724859

8. Why Is It So Hard for Us to Do Nothing? A new study shows that many people would rather get an electric shock than just sit and think

http://online.wsj.com/articles/why-is-it-so-hard-for-us-to-do-nothing-1405697956?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

9. Financial Savvy Starts in Childhood; Early Financial Lessons Influence How Adults Handle Money

http://online.wsj.com/articles/financial-savvy-starts-in-childhood-1405816348?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth

10. Risk Is Never a Strict Numbers Game; We tell children to shun ecstasy but don’t fret about horseback riding-and other foibles of our view of danger

http://online.wsj.com/articles/risk-is-never-a-strict-numbers-game-1405728892

TMT

1. Amazon launches a Netflix-style subscription service for books

http://www.washingtonpost.com/blogs/the-switch/wp/2014/07/18/amazon-launches-a-netflix-style-subscription-service-for-books/

http://www.reuters.com/article/2014/07/18/us-amazon-kindle-idUSKBN0FN1NF20140718?feedType=RSS&feedName=technologyNews

2. IBM Preps for Post-Silicon Era

http://www.eetimes.com/document.asp?doc_id=1323078&elq=135f5c4b3c7c4793afb3de5cefcda3f2&elqCampaignId=18136

3. EE Times Silicon 60: Hot Startups to Watch

http://www.eetimes.com/document.asp?doc_id=1323068&print=yes

4. Forbes sells control of media business to Hong Kong group of investors

http://www.reuters.com/article/2014/07/18/us-publishing-forbes-idUSKBN0FN1XZ20140718

5. White spaces: An analyst explains the grand opportunities he sees for innovation

http://www.washingtonpost.com/blogs/innovations/wp/2014/07/14/white-spaces-an-analyst-explains-the-grand-opportunities-he-sees-for-innovation/?wpisrc=nl_inn

6. Time Warner win would make Murdoch U.S. media king

http://www.reuters.com/article/2014/07/16/us-time-warner-fox-idUSKBN0FL15T20140716

7. Gtech of Italy to Acquire Slot Machine Maker for $4.7 Billion; Lottomatica, controlled by the De Agostini family, acquired the United States lottery company Gtech in 2006 for $4.65 billion

http://dealbook.nytimes.com/2014/07/16/gtech-of-italy-to-acquire-slot-machine-maker-for-4-7-billion

8. (China/Tech) – A Westerner’s Inside View of Alibaba Successes and Failures

http://dealbook.nytimes.com/2014/07/16/a-westerners-inside-view-of-alibaba-successes-and-failures

9. (Tech/Healthcare) – Little-known InterSystems grows to dominate an IT market in age of Obamacare

http://www.washingtonpost.com/business/little-known-intersystems-grows-to-dominate-an-it-market-in-age-of-obamacare/2014/07/17/db975f82-0ba0-11e4-8341-b8072b1e7348_story.html

10. How The Internet Of Things Impacts Industrials

http://www.valuewalk.com/2014/07/how-the-internet-of-things-impacts-industrials

Healthcare

1. (Tech/Healthcare) – Little-known InterSystems grows to dominate an IT market in age of Obamacare

http://www.washingtonpost.com/business/little-known-intersystems-grows-to-dominate-an-it-market-in-age-of-obamacare/2014/07/17/db975f82-0ba0-11e4-8341-b8072b1e7348_story.html

Consumer

1. (Tech/Consumer) – Home Depot, Lowes bring the Internet of Things to DIYers

http://www.washingtonpost.com/business/on-it/home-depot-lowes-bring-the-internet-of-things-to-diyers/2014/07/19/e5247790-0b75-11e4-8c9a-923ecc0c7d23_story.html

2. Acquisitions Are a Value-Enhancing Strategy for VF; Moat-building cost and brand advantages position the firm well.

http://news.morningstar.com/articlenet/article.aspx?id=656350

Investing Process

1. Research – Do Hedge Funds Prefer Safe Stocks? Revisiting Hedge Fund Preferences for Stock Characteristics

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2449165

 

 

Morning Bamboo Insight: 18 Jul 2014

Morning Bamboo Insight: 18 Jul 2014

Macro

1. Putin Cornered as Malaysia Jet Crash Shows Isolation on Ukraine

http://www.bloomberg.com/news/2014-07-17/putin-cornered-as-malaysia-jet-crash-shows-isolation-on-ukraine.html

Asia Pacific

1. (China/Tech) – China’s JD.com takes aim at Alibaba with Paipai relaunch

http://www.reuters.com/article/2014/07/17/us-jd-com-relaunch-idUSKBN0FM1DV20140717?feedType=RSS&feedName=technologyNews

2. (India/Healthcare) – Innovation and the Three “P’s”: A 360-degree View of Indian Health Care

http://knowledge.wharton.upenn.edu/article/indias-health-care-industry/

3. (China) – China’s anti-graft chief vowed on Wednesday to maintain a “high-voltage” crack down on corruption and resolutely contain the spread of corruption

http://news.xinhuanet.com/english/china/2014-07/16/c_133489155.htm

4. (China) – Undermining China, One Knockout at a Time

http://sinosphere.blogs.nytimes.com/2014/07/17/undermining-china-one-knockout-at-a-time/

5. (China) – Note to Cadres: Hands Off the Black Audi and Chauffeur

http://mobile.nytimes.com/blogs/sinosphere/2014/07/16/note-to-cadres-hands-off-the-black-audi-and-chauffeur

6. (Thai/China) – In Thailand, baby gender selection loophole draws China, HK women to IVF clinics

http://www.reuters.com/article/2014/07/15/us-thailand-ivf-gender-selection-idUSKBN0FK2H020140715?feedType=RSS&feedName=healthNews

Life 

1. Leadership Lessons From A War Zone; U.S. Air Force Brigadier General John Michel knows about leadership in challenging environments

http://www.fastcompany.com/3033095/hit-the-ground-running/leadership-lessons-from-a-war-zone

2. Bill George: Authentic Leadership and Letting Your Strengths ‘Bloom’

http://knowledge.wharton.upenn.edu/article/authentic-leadership/

TMT

1. (China/Tech) – China’s JD.com takes aim at Alibaba with Paipai relaunch

http://www.reuters.com/article/2014/07/17/us-jd-com-relaunch-idUSKBN0FM1DV20140717?feedType=RSS&feedName=technologyNews

2. Kicking the Tires on Uber’s $17 Billion Valuation: Is It Worth That Much?

http://knowledge.wharton.upenn.edu/article/kicking-tires-ubers-17-billion-valuation-worth-much/

3. In Modern Media Realm, Big Mergers Are a Bulwark Against Rivals

http://www.nytimes.com/2014/07/17/business/media/in-modern-media-realm-big-mergers-are-a-bulwark-against-rivals.html

Healthcare

1. Gene therapy creates ‘biological pacemaker’ cells for the heart

http://www.reuters.com/article/2014/07/16/us-science-heart-idUSKBN0FL2BU20140716?feedType=RSS&feedName=healthNews

 

Morning Bamboo Insight: 17 Jul 2014

Morning Bamboo Insight: 17 Jul 2014

Macro

1. Insiders don’t break the law if they trade on a hunch, securities watchdog says

http://business.financialpost.com/2014/07/15/insiders-dont-break-the-law-if-they-trade-on-a-hunch-securities-watchdog-says/

2. (Macro) – The declining quality of equity research

http://digitstodollars.com/2014/07/14/the-declining-quality-of-equity-research/

Asia Pacific

1. (Australia/Tech) – Webjet pivots to B2B to fight online travel disruption

http://www.brw.com.au/p/business/webjet_pivots_to_to_fight_online_sVNuAPgFFwdaIJ755uAYWL

2. (China) – Secret path for Chinese on property buying spree

http://www.theage.com.au/business/property/secret-path-for-chinese-on-property-buying-spree-20140716-ztidl.html

3. (Australia/Consumer) – Discount grocer Aldi may soon be facing competition from cut-price European rivals if trends in the $88 billion Australian grocery market mirror those in the UK

http://www.brisbanetimes.com.au/business/retail/move-over-aldi-more-discount-supermarkets-could-be-on-the-way-20140716-ztoiz.html

4. (China) – Chris Patten: From Beethoven to Beijing

http://www.project-syndicate.org/print/chris-patten-ponders-what-the-opera–fidelio–has-to-tell-us-about-china-today

5. (China) – China knows it has a problem, but it just can’t kick the investment habit

http://qz.com/235461/china-knows-it-has-a-problem-but-it-just-cant-kick-the-investment-habit/

6. (India) – India’s 75 million dairy farms now produce more milk than all of the European Union

http://qz.com/235085/india-75-million-dairy-farms-now-make-more-milk-than-all-of-the-european-union/

7. (China/Tech) – Alibaba now wants to be the Netflix of China

http://qz.com/234978/alibaba-now-wants-to-be-the-netflix-of-china/

8. (China/Tech) – Fridges in Villages as E-Commerce Goes Rural; The shopping websites run by JD.com and Alibaba are reaching out to rural China with special campaigns

http://english.caixin.com/2014-07-15/100704252.html

9. (China) – With New Rules for PE Investing, CSRC Focuses on Transparency; Securities regulator wants private equity funds to provide more details about their investments, but secrecy allows them to make better deals

http://english.caixin.com/2014-07-14/100703737.html

10. (China) – China machinery maker Zoomlion tightens customer credit as property market sags

http://www.reuters.com/article/2014/07/15/zoomlion-outlook-idUSL4N0PQ1WD20140715

11. (Korea/Tech) – Samsung In Talks To Scoop Up SmartThings For Around $200 Million

http://techcrunch.com/2014/07/15/samsung-to-scoop-up-smartthings-for-around-200-million/

12. (Taiwan) – Taiwan Education Minister resigns amid fraud scandal

http://news.asiaone.com/print/news/asia/taiwan-education-minister-resigns-amid-fraud-scandal-0

13. (Isia) – More irregularities reported in Indonesia’s vote counting where vote counts were inflated in favour of the Gerindra Party’s presidential candidate, Prabowo Subianto

http://news.asiaone.com/print/news/asia/more-irregularities-reported-vote-counting

14. (Taiwan) – Taipei City’s double-standard hospitality

http://news.asiaone.com/print/news/asia/taipei-citys-double-standard-hospitality

15. (Japan) – Convenience stores in Japan turn to creative collaborations

http://news.asiaone.com/print/news/asia/convenience-stores-japan-turn-creative-collaborations

16. (Korea) – S Korea’s tallest skyscraper opens in Songdo International Business District, Incheon

http://business.asiaone.com/print/news/s-koreas-tallest-skyscraper-opens-business-district

Life

1. How to turn a small business into a bigger one

http://www.brw.com.au/p/business/mid-market/how_to_turn_small_business_into_QvnrXkckt9SYeaoPmAoGVL

2. 10 tips for better slide decks

http://blog.ted.com/2014/07/15/10-tips-for-better-slide-decks/

3. 10 Lessons Entrepreneurs Can Learn From Failing Startups

http://www.businessinsider.com/lessons-failing-startups-2014-7

4. Here’s How To Create A Life With The Perfect Amount Of Stress To Keep You Motivated But Not Kill You

http://www.businessinsider.com/become-resilient-to-deal-with-stress-2014-7

5. 22 Lessons From Stephen King On How To Be A Great Writer

http://www.businessinsider.com/stephen-king-on-how-to-write-2014-7

6. The 25 Best Universities In Europe

http://www.businessinsider.com/best-european-universities-2014-2014-7

7. Master Distillers At Wild Turkey On The Recipe For Mixing Business With Family; It involves one part patience, two parts hard work, and a dash of love

http://www.fastcompany.com/3033066/master-distillers-at-wild-turkey-on-the-recipe-for-mixing-business-with-family

TMT

1. Yahoo’s dependence on Alibaba is starting to get silly

http://pando.com/2014/07/15/yahoos-dependence-on-alibaba-is-starting-to-get-silly/

2. (China/Tech) – 10 Startups You Can’t Miss in China’s Burgeoning Women-Focused Service Industry (Part I)

http://technode.com/2014/07/15/10-startups-you-cant-miss-in-chinas-burgeoning-women-focused-service-industry-part-i/

3. How to Miss By a Mile: An Alternative Look at Uber’s Potential Market Size Vs Uber Isn’t Worth $17 Billion

http://abovethecrowd.com/2014/07/11/how-to-miss-by-a-mile-an-alternative-look-at-ubers-potential-market-size/

http://fivethirtyeight.com/features/uber-isnt-worth-17-billion/

4. Investor At Google Ventures Thinks Uber Will Be A $200 Billion Company

http://www.businessinsider.com/uber-200-billion-company-2014-7

5. Scientists Have Made A Material Darker Than Black

http://www.businessinsider.com/material-darker-than-black-2014-7

6. Here’s A Great Explanation Of The ‘Big Data’ Phenom In 8 Words: “big data” can capture things as they are happening and “can affect events as the events are unfolding.”

http://www.businessinsider.com/explanation-of-big-data-in-8-words-2014-7

7. Silicon Valley is one step closer to being its own state. No, really

http://www.washingtonpost.com/blogs/the-switch/wp/2014/07/15/silicon-valley-is-one-step-closer-to-being-its-own-state-no-really/?wpisrc=nl_swbd

Consumer

1. (Consumer) – Discount fashion chain Primark has made its mark in Europe by offering fast-changing fashion at rock-bottom prices. The secret of its success: placing huge orders for top-selling items like tops and jeans and passing on savings

http://www.reuters.com/article/2014/07/16/us-primark-usa-idUSKBN0FL0GH20140716

2. 3 Reasons Dollar Stores Are A Huge Threat To Supermarkets

http://www.businessinsider.com/dollar-stores-are-selling-more-food-2014-7#ixzz37cj7dRig

3. Lay’s Is About To Start Selling A Cappuccino-Flavored Potato Chip

http://www.businessinsider.com/cappuccino-flavored-lays-chips-2014-7

 

 

Evening Bamboo Insight: 16 Jul 2014

Evening Bamboo Insight: 16 Jul 2014

Macro

1. A world without water: the cost to companies

http://www.ft.com/intl/cms/s/2/8e42bdc8-0838-11e4-9afc-00144feab7de.html#slide0

2. Janet Yellen on the Everything Bubble

http://www.nytimes.com/2014/07/16/upshot/janet-yellen-on-the-everything-bubble.html?ref=business

Asia Pacific

1. (China) – China Picks COFCO, SDIC for State Asset Investment Reform Trials

http://www.bloomberg.com/news/print/2014-07-15/china-picks-cofco-sdic-for-state-asset-investment-reform-trials.html

2. (China) – Free of graft and technically skilled: the qualities Xi seeks in new PLA generals

http://www.scmp.com/print/news/china/article/1555044/free-graft-and-technically-skilled-qualities-xi-seeks-new-pla-generals

3. (China) – China and the cost of stimulus

http://ftalphaville.ft.com/2014/07/15/1898852/china-and-the-cost-of-stimulus/?utm_medium=email

4. (China) – The Implications of China’s Anti-Corruption Drive; The West should worry about a campaign that makes an autocratic regime with revisionist intent more effective

http://thediplomat.com/2014/07/the-implications-of-chinas-anti-corruption-drive/

5. (China) – Beijing is ramping up its efforts to identify “naked officials” – those whose relatives have moved abroad

http://www.news24.com/World/News/Beijing-steps-up-naked-officials-crackdown-20140715

6. (China) – Fast, Cheap and In the Red: Beijing’s Subway System Bled $558 Million Last Year

http://blogs.wsj.com/chinarealtime/2014/07/15/fast-cheap-and-in-the-red-beijings-subway-system-bled-558-million-last-year

7. (China) – China’s fight for cleaner air

http://www.marketplace.org/topics/sustainability/we-used-be-china/chinas-fight-cleaner-air

8. (China) – In China, Beijing Fights Losing Battle to Rein In Factory Production; Some Chinese Localities Stymie Efforts to Curb Industrial Overcapacity and Pollution

http://online.wsj.com/articles/in-china-beijing-fights-losing-battle-to-rein-in-factory-production-1405477804

9. (India) – Satyam Founder Ordered to Pay Back Alleged Accounting-Fraud Gains; Satyam Founder Ramalinga Raju, Former Executives Ordered to Pay More Than $300 Million From 2009 Scandal

http://online.wsj.com/articles/satyam-founder-ordered-to-pay-back-alleged-accounting-fraud-gains-1405447107?mod=rss_Technology

10. (Isia) – Indonesians Question Election Quick Counts

http://blogs.wsj.com/searealtime/2014/07/16/indonesians-question-election-quick-counts/

11. (China) – China announces plan for reform of state-owned enterprises

http://www.ft.com/intl/cms/s/0/07928638-0c24-11e4-a096-00144feabdc0.html#axzz37cCRFmEp

12. (Msia) – Malaysian corporate credibility hangs in balance with bank merger; Strong disclosure and governance key to avoiding hypocrisy

http://www.ft.com/intl/cms/s/0/2e760b60-0bcc-11e4-8693-00144feabdc0.html#axzz37cAgVRGc

13. (China) – China’s debt-to-GDP level: 200% and counting

http://www.economist.com/blogs/freeexchange/2014/07/china-s-debt-gdp-level

14. (China) – Chinese property developers at risk as trust funds dry up

http://www.reuters.com/article/2014/07/15/china-property-trusts-idUSL4N0PB20920140715

15. (Viet) – Rising bad debts may undermine Vietnam’s banks, says S&P

http://www.thestar.com.my/Business/Business-News/2014/07/15/Rising-bad-debts-may-undermine-Vietnam/

16. (China) – The biggest challenge for BRICS success? Big brother China

http://in.reuters.com/article/2014/07/15/brics-summit-china-idINL2N0PN0F720140715

17. (Isia) – Postcolonialism and the Need for a ‘Mental Revolution’ in Indonesia

http://www.thejakartaglobe.com/opinion/postcolonialism-need-mental-revolution-indonesia

18. (Isia) – Indonesia’s Democracy Test

http://www.nytimes.com/2014/07/16/opinion/indonesias-democracy-test.html?ref=opinion

19. (India/Healthcare) – Medanta-The Medicity: World class health care, with a soul; Dr Naresh Trehan’s vision for his latest venture is to emulate the best-in-class health care facilities in the world

http://forbesindia.com/printcontent/38218

20. (India) – Sansera Engineering: Staying afloat in a volatile industry

http://forbesindia.com/printcontent/38220

21. (Japan/Tech) – Employing all-purpose robots endowed with artificial intelligence as a workforce in the manufacturing industry is the solution to staving off any impending labor shortage in Japan, SoftBank CEO Masayoshi Son

http://www.japantimes.co.jp/news/2014/07/15/business/corporate-business/robots-can-solve-labor-woes-son/#.U8Y38PmSxqU

22. (Australia/Consumer) – If physical retail is dying, someone forgot to tell Dick Smith CEO Nick Abboud

http://www.brw.com.au/p/business/smith_physical_retail_abboud_dying_0lryMbgYVim3DHPpTJthUI

Life

1. Confidence is shaped by failure

http://www.todayonline.com/print/695786

2. Failure is fine if entrepreneurs do not sweeten the truth

http://www.ft.com/cms/s/0/848fceac-0b61-11e4-9e55-00144feabdc0.html#axzz37cCRFmEp

3. Great product design? It’s about empathy and delight

http://fortune.com/2014/07/15/product-design-empathy-delight/

4. The Importance of Doing Nothing; By giving the brain ‘downtime’ we can improve mental health and allow ideas to incubate

http://forbesindia.com/printcontent/38144

5. Shedding Hierarchy: Could Zappos Be Setting An Innovative Trend?

http://www.forbes.com/sites/nicoleleinbachreyhle/2014/07/15/shedding-hierarchy-could-zappos-be-setting-an-innvoative-trend/print/

6. Indonesia, Etc.: Exploring the Improbable Nation Hardcover

http://www.amazon.com/Indonesia-Etc-Exploring-Improbable-Nation/dp/product-description/0393088588/

7. Bamboo flute musician Tosha borrows from the modern to teach traditional tranquility

http://www.japantimes.co.jp/culture/2014/07/15/music/tosya-hopes-teach-traditional-tranquillity/#.U8Y4CfmSxqU

http://www.youtube.com/watch?v=E9rQ0p_6p9c

8. Withnail & I actor Richard E Grant builds perfume empire; Richard E Grant, actor turned entrepreneur, talks trademark battles, marijuana high notes, being a ‘deluded amateur’ perfumier, and why he would never create a celebrity fragrance

http://www.telegraph.co.uk/finance/businessclub/10966195/Withnail-and-I-actor-Richard-E-Grant-builds-perfume-empire.html

TMT

1. Microsoft surpass Yahoo Inc for the first time in the $140.2 billion worldwide digital advertising market; Google Inc will remain No. 1 with a 31.54 percent share, trailed by Facebook Inc with 7.79%

http://www.reuters.com/article/2014/07/15/us-advertising-digital-idUSKBN0FK1OP20140715?feedType=RSS&feedName=technologyNews

2. (Tech) – Apple, IBM in Deal to Create Apps, Sell Phones; Tech Firms Plan to Create Business Apps and Sell iPhones, iPads to IBM’s Corporate Customers

http://online.wsj.com/articles/apple-ibm-in-deal-to-create-apps-sell-phones-1405456933

3. (Tech) – Novartis and Google to Work on Smart Contact Lenses; Eyewear Will Monitor Blood-Sugar Levels for Diabetics

http://online.wsj.com/articles/novatis-google-to-work-on-smart-contact-lenses-1405417127

4. (Tech/Healthcare) – Big pharma teams up with big data; Google’s link with Novartis has beneficial implications for health

http://www.ft.com/intl/cms/s/0/9738eec8-0c0e-11e4-9080-00144feabdc0.html#axzz37cAgVRGc

5. Rocket Internet’s Oliver Samwer responds to critics ahead of IPO

http://www.ft.com/intl/cms/s/0/c475c952-091f-11e4-906e-00144feab7de.html#axzz37cAgVRGc

6. (Tech) – Google Glass creator sees future at Amazon

http://www.ft.com/intl/cms/s/0/2c856a0a-0c38-11e4-943b-00144feabdc0.html#axzz37cCRFmEp

7. Yahoo’s long goodbye with Alibaba takes heat off Mayer

http://in.reuters.com/article/2014/07/16/us-yahoo-results-alibaba-group-idINKBN0FL05Q20140716

8. Controlling the Home, Google Style

http://bits.blogs.nytimes.com/2014/07/15/controlling-the-home-google-style/?ref=technology

9. (Korea/Tech/Consumer) – Samsung to join forces with Under Armour for wearables

http://www.koreatimes.co.kr/www/news/tech/2014/07/129_161088.html

Healthcare

1. Teva faces fresh shareholder showdown over management structure and corporate governance

http://www.ft.com/intl/cms/s/0/17e18ec2-0b65-11e4-ae6b-00144feabdc0.html#axzz37cCRFmEp

Consumer

1. America’s Smokers: Still 40 Million Strong; Who’s the Real Cigarette Monopolist? Lorillard and Reynolds American are pikers next to Uncle Sam

http://online.wsj.com/articles/holman-jenkins-whos-the-real-cigarette-monopolist-1405468178?mod=yahoo_hs

http://online.wsj.com/articles/americas-smokers-still-40-million-strong-1405468491

2. E-Cigarette Makers Are in an Arms Race for Exotic Vapor Flavors

http://www.nytimes.com/2014/07/16/business/e-cigarette-makers-are-in-an-arms-race-for-exotic-vapor-flavors.html?_r=0

Investing Process

1. Research – Pick Your Poison – Fragmentation or Market Power? An Analysis of Regnms, High Frequency Trading, and Securities Market Structure

2. Research – Attracting Long‐Term Investors Through Integrated Thinking and Reporting: A Clinical Study of a Biopharmaceutical Company

Energy

1. (Energy) – Energy: The indispensable country; The US shale revolution has averted the threat of a global oil crisis caused by growing levels of conflict and instability

http://www.ft.com/intl/cms/s/0/601a8476-0b5d-11e4-ae6b-00144feabdc0.html

 

 

Morning Bamboo Insight: 16 Jul 2014

Morning Bamboo Insight: 16 Jul 2014

Macro

1. Alarm bells went off as the Federal Reserve warned of a bubble in social media and biotech stocks

http://money.cnn.com/2014/07/15/investing/fed-bubble-social-media-biotech/

2. The Failure of Stock Buybacks

http://www.businessweek.com/stories/2007-11-07/the-failure-of-stock-buybacksbusinessweek-business-news-stock-market-and-financial-advice

3. Do Buybacks Destroy Shareholder Value?

http://www.valuewalk.com/2014/07/buybacks-shareholder-value/

Asia Pacific

1. (Isia) – Indonesian Economy in Wait-and-See Mode

http://www.thejakartaglobe.com/opinion/indonesian-economy-wait-see-mode/

2. (Korea) – Samsung, Hyundai Motor’s clout in economy causes concern

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_161075.html

3. (Korea) – South Korea recently enacted new disclosure rules for individual compensation of registered directors. Companies must now disclose individual compensation for registered directors when it exceeds 500 million won

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_161080.html

4. (Korea) – Debt on river project snowballing; The former Lee Myung-bak administration pushed ahead with a controversial four-river refurbishment project costing a total of 22 trillion won without a national consensus

http://www.koreatimes.co.kr/www/news/biz/2014/07/488_161063.html

5. (China) – Zoomlion’s Old Excesses Still Leave Investor Indigestion

http://online.wsj.com/articles/heard-on-the-street-zoomlions-old-excesses-still-leave-investor-indigestion-1405419037?mod=yahoo_hs

6. (Taiwan/Tech) – ChipMOS’s odd corporate structure: Under its two listings, the entity on the Nasdaq acts like a holding company that owns about 60% of the Taiwan entity’s shares

http://online.wsj.com/articles/activist-finds-chipmos-value-is-easy-to-compute-1405410002

TMT

1. Yahoo Seeks to Bring the Concert to Your Couch

http://www.nytimes.com/2014/07/15/business/media/yahoo-seeks-to-bring-the-concert-to-your-couch.html?ref=technology

2. Hardware Is The New Software

http://techcrunch.com/2014/07/12/hardware-is-the-new-software/

3. BlackBerry Ltd tapping into ‘Internet of Things’ for more than just buzz

http://business.financialpost.com/2014/07/15/blackberry-ltd-internet-of-things-alec-saunders/?__lsa=20d8-60b5

4. (Taiwan/Tech) – ChipMOS’s odd corporate structure: Under its two listings, the entity on the Nasdaq acts like a holding company that owns about 60% of the Taiwan entity’s shares

http://online.wsj.com/articles/activist-finds-chipmos-value-is-easy-to-compute-1405410002

Investing Process

1. Introduction of Innovations during the 2007-8 Financial Crisis: The Role of Innovator Type

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2430675

 

Evening Bamboo Insight: 15 Jul 2014

Evening Bamboo Insight: 15 Jul 2014

Macro

1. The Smartest Man in Europe Sees a New Industrial Revolution

http://www.blackstone.com/news-views/market-commentary/blog-detail/byron’s-market-commentary/2014/07/02/the-smartest-man-in-europe-sees-a-new-industrial-revolution

2. To Infinity and Beyond? Don’t Be Surprised If the U.S. Stock Market Cracks

http://www.institutionalinvestor.com/Popups/PrintArticle.aspx?ArticleID=3361273

3. How A Crackdown On Chinese Money Laundering Could Squeeze The US Housing Market

http://www.businessinsider.com/bis-stocks-are-irrational-china-poised-to-crash-2014-7

Asia Pacific

1. (Korea) – South Korea’s visa-free Jeju Island has become a Chinese tourism gold mine

http://qz.com/233985/south-korea-visa-free-jeju-island-has-become-a-chinese-tourism-gold-mine/

2. (Isia) – Cracks in Golkar – call for party chief’s removal

http://news.asiaone.com/print/news/asia/cracks-golkar-%E2%80%93-call-party-chief%E2%80%99s-removal

3. (India) – E-rickshaws take over Delhi’s roads

http://news.asiaone.com/print/news/asia/e-rickshaws-take-over-delhis-roads

4. (China) – Logistics spending in China is 18% of GDP, higher than in other developing countries (India and South Africa spend 13-14% of GDP) and double the level seen in the developed world

http://www.economist.com/news/china/21606899-export-superpower-china-suffers-surprisingly-inefficient-logistics-flow-things

5. (China) – China demands wall around wealth management sector to cut risk

http://in.reuters.com/article/2014/07/12/china-banking-idINKBN0FH09E20140712

6. (China) – Asian Nations’ Fears of War Elevated as China Flexes Muscle, Study Finds; Majority of Filipinos, Japanese and Vietnamese Say They Fear Armed Conflict With China

http://online.wsj.com/articles/asian-nations-fears-of-war-elevated-as-china-flexes-muscle-study-finds-1405361047

7. (China) – Inside the Chinese Market That Produces 45% of the World’s Tablets

http://blogs.wsj.com/chinarealtime/2014/07/14/inside-the-chinese-market-that-produces-45-of-the-worlds-tablets/

8. (Thai) – Thailand Lottery Changes Have Some Saying Leaders Are Pressing Their Luck; Vendors Who Traffick in Lucky Numbers Say New Rules Threaten Their Business

http://online.wsj.com/articles/thailand-lottery-changes-have-some-saying-leaders-are-pressing-their-luck-1405373312

9. (China/Tech) – Alibaba Pushes Further Into Entertainment; Latest Effort Involves Adding Lions Gate Video to Set-Top Boxes

http://online.wsj.com/articles/alibaba-pushes-further-into-entertainment-1405389902

10. (China/Tech) – Alibaba Pushes Further Into Entertainment; Latest Effort Involves Adding Lions Gate Video to Set-Top Boxes

http://online.wsj.com/articles/alibaba-pushes-further-into-entertainment-1405389902

12. (China/Tech) – Corporate Governance Print of Alibaba’s Payment Plan; Alibaba shed light on one of its biggest controversies-the transfer into the hands of key managers of payments business Alipay, similar to PayPal, back in 2011

http://online.wsj.com/articles/heard-on-the-street-fine-print-of-alibabas-payment-plan-1405337521

13. (China/Commodities) – Miners Struggle as China’s Appetite for Coal Eases

http://online.wsj.com/articles/miners-struggle-as-chinas-appetite-for-coal-eases-1405340884

14. (China) – This China Slowdown Is Different; Beijing is starting to curb investment-led growth. It won’t be painless

http://online.wsj.com/articles/miller-charney-this-china-slowdown-is-different-1405356554

15. (India/Healthcare) – India Imposes Price Controls on Diabetes and Heart-Disease Drugs; Price Cuts Likely to Pinch Profits of International Pharmaceutical Companies in India

http://online.wsj.com/articles/india-imposes-price-controls-on-diabetes-and-heart-disease-drugs-1405346553

16. (China) – Chinese Banks Halt Experimental Yuan-Remittance Program that helped citizens transfer large sums overseas despite government capital controls

http://online.wsj.com/articles/chinese-banks-halt-experimental-yuan-remittance-program-1405345453

17. (China) – China’s “Secret Money Laundering” Story Goes Mainstream; Is Promptly Censored

http://www.zerohedge.com/news/2014-07-14/chinas-secret-money-laundering-story-goes-mainstream-promptly-censored

18. (China) – Michael Pettis Warns China Bulls: “Bad Debt Cannot Simply Be ‘Socialized'”

http://www.zerohedge.com/news/2014-07-14/michael-pettis-warns-china-bulls-bad-debt-cannot-simply-be-socialized

19. (China) – Bank of China-CCTV drama may reveal power struggle in Beijing

http://www.scmp.com/print/business/banking-finance/article/1553552/bank-china-cctv-drama-may-reveal-power-struggle-beijing

20. (India/Tech) – Indian Messaging App Thrives By Blocking Snooping Moms

http://blogs.wsj.com/indiarealtime/2014/07/15/indian-messaging-app-thrives-by-blocking-snooping-moms/

21. (HK) – End of the high life for Hong Kong’s unwanted rooftop dwellers

http://www.thestar.com.my/Business/Business-News/2014/07/15/End-of-the-high-life-for-Hong-Kongs-unwanted-rooftop-dwellers

Life

1. Never top up your own drink, and other tips for doing business in Japan

http://www.brw.com.au/p/leadership/never_business_doing_your_japan_UjGbwOEDcr0tCMGCsFXJPI

2. How To Beat The Cops At Their Own Game When You’re Being Interrogated

http://www.businessinsider.com/police-interrogation-advice-2014-7

3. Here’s The Secret To Germany Becoming The Most Dominant Soccer Team In The World

http://www.businessinsider.com/germany-youth-system-2014-7

4. One Thing Extraordinary People Never Do

http://www.businessinsider.com/what-extraordinary-people-never-do-2014-7

5. Too many employers are highly suspicious of their staff…can you guess why?

http://www.theage.com.au/small-business/managing/blogs/work-in-progress/its-a-trust-issue-20140711-3bqka.html#ixzz37Vv5awdO

6. The Best Way to Make Up After Any Argument; And the One Word Never to Say

http://online.wsj.com/articles/the-best-way-to-make-up-after-any-argument-1405379667?mod=WSJ_hpp_sections_lifestyle

7. Three Secrets of Organizational Effectiveness; How the practices of “pride builders” can help you build a high-performance culture

http://www.strategy-business.com/article/00271?gko=d819d&cid=20140715enews&utm_campaign=20140715enews

8. New Spore: 83-year-old grandmother dies after Singapore hospital fails to turn on oxygen tank

http://www.straitstimes.com/news/singapore/courts-crime/story/oxygen-tank-not-turned-then-patient-dies-20140715

9. Does corporate governance matter? Regardless of size, companies need high standards of corporate governance if they are to create sustainable value in the long term

http://www.singaporelawwatch.sg/slw/index.php/headlines/45185-does-corporate-governance-matter

10. Auditing: From respected profession to mug’s game?

http://www.businesstimes.com.sg/premium/editorial-opinion/bottom-line/auditing-respected-profession-mugs-game-20140715

TMT

1. (China/Tech) – Alibaba Pushes Further Into Entertainment; Latest Effort Involves Adding Lions Gate Video to Set-Top Boxes

http://online.wsj.com/articles/alibaba-pushes-further-into-entertainment-1405389902

2. (China/Tech) – Corporate Governance Print of Alibaba’s Payment Plan; Alibaba shed light on one of its biggest controversies-the transfer into the hands of key managers of payments business Alipay, similar to PayPal, back in 2011

http://online.wsj.com/articles/heard-on-the-street-fine-print-of-alibabas-payment-plan-1405337521

Healthcare

1. (Healthcare) – Alzheimer’s Disease Fight Focuses on Preventive Treatment; Delaying Onset by Five Years Could Greatly Reduce the Number of Patients

http://online.wsj.com/articles/alzheimers-disease-fight-focuses-on-preventive-treatment-1405396803?mod=WSJ_hpp_sections_health

Investing Process

1. Here’s The Real Story Behind The Founding Of CYNK, The Mysterious Penny Stock With The Surge That Shocked The Internet

http://www.businessinsider.com/cynk-founding-2014-7#ixzz37XqdFH7K

 

Morning Bamboo Insight: 15 Jul 2014

Morning Bamboo Insight: 15 Jul 2014

Macro

1. “We will continue to swim in a sea of liquidity”; Three top-investors Felix Zulauf, James Montier, David Iben in the round-table-discussion

http://www.fuw.ch/article/we-will-continue-to-swim-in-a-sea-of-liquidity/

2. Investors beware: economists at large; Analytical underpinnings of risk-taking are far from robust

http://www.ft.com/intl/cms/s/0/11284bb6-0773-11e4-81c6-00144feab7de.html#axzz37Smlxstp

3. Redefining SMEs; When Karl Friedrich Benz started Benz & Cie in 1883 to produce industrial machines, little did he know he would make history in the automotive world

http://www.thestar.com.my/Business/SME/2014/07/14/Redefining-SMEs-Efforts-are-underway-to-get-more-targeted-assistance-to-small-Malaysian-businesses/

4. How Italy became a submerging economy

http://uk.reuters.com/article/2014/07/14/us-italy-economy-submerging-specialrepor-idUKKBN0FJ0QT20140714

5. Boeing and Airbus Dominate Skies as Air Show Looms; Jetliner Output Is at Record Highs, but Incrementalism Is Unofficial Theme of This Year’s Farnborough Exhibition

http://online.wsj.com/articles/boeing-and-airbus-dominate-skies-as-farnborough-air-show-looms-1405311335

6. Shoemaking Gets a Foot in the Door in the U.S.; Hong Kong-based Producer of Work Boots Opens Factory in Tennessee; Stalwart Souls That Produce Shoes in the U.S.

http://online.wsj.com/articles/shoemaking-gets-a-foot-in-the-door-in-the-u-s-1405294724

http://online.wsj.com/articles/stalwart-souls-that-produce-shoes-in-the-u-s-1405295062

7. Companies That Offer Help With Student Loans Are Often Predatory, Officials Say

http://dealbook.nytimes.com/2014/07/13/companies-that-offer-help-with-student-loans-often-predatory-officials-say/?ref=business

8. World economy ‘more fragile than before great crash of 2007,’ warns watchdog as global debt piles balloon

http://business.financialpost.com/2014/07/14/world-economy-more-fragile-than-before-great-crash-of-2007-warns-watchdog-as-global-debt-piles-balloon/

9. Ratings agency Fitch calls for more government action in ‘overvalued’ Canadian housing market

http://business.financialpost.com/2014/07/14/canada-housing-maket-fitch/

Asia Pacific

1. (Tech/Myanmar) – Tech Scene in Myanmar Hinges on Cellphone Grid

http://www.nytimes.com/2014/07/14/business/international/tech-scene-in-myanmar-hinges-on-cellphone-grid.html?emc=edit_th_20140714&nl=todaysheadlines&nlid=36114517&_r=0

2. Secret Path Revealed for Chinese Billions Overseas

http://www.bloomberg.com/news/print/2014-07-14/secret-path-revealed-for-chinese-billions-overseas.html

3. (Isia) – Jokowi is open to rival parties joining his coalition in what seems like a change of tack from his Indonesian PDI-P earlier aim of keeping its coalition small

http://www.todayonline.com/print/693631

4. (India) – India Inc’s top CEOs track the route to double-digit growth

http://forbesindia.com/printcontent/38182

5. (Japan/Consumer) – Unhappy hour for Kirin as its beer sales tumble in Japan

http://www.japantimes.co.jp/news/2014/07/14/business/corporate-business/unhappy-hour-kirin-beer-sales-tumble-japan/#.U8RRGPmSxqU

6. (Korea) – Hyundai Motor chief Chung Mong-koo urges to sharpen edge; “There is no other way to overcome risk but making oneself competitive”

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_160958.html

7. (China/Tech) – As giant U.S. IPO nears, Alibaba’s China e-commerce crown slips

http://www.reuters.com/article/2014/07/14/us-china-ecommerce-idUSKBN0FJ0CT20140714?feedType=RSS&feedName=technologyNews

8. (Australia) – A rogue, Storm and poor advice; The big four banks and AMP have spent billions of dollars buying up wealth management businesses in the past decade or so and now own or control up to 80 per cent of the financial planners

http://www.smh.com.au/business/a-rogue-storm-and-poor-advice-20140714-3bx9c.html#ixzz37Tzq6Rae

Life

1. Lessons From The Man Who Managed Reddit’s Community Of Millions

http://www.fastcompany.com/3032943/hit-the-ground-running/lessons-from-the-man-who-managed-reddits-community-of-millions

2. Cool heads improvise in crisis and calm; Leaders and their teams who become too wedded to one approach may be doomed

http://www.ft.com/intl/cms/s/0/195e0058-081f-11e4-9afc-00144feab7de.html?ftcamp=published_links%2Frss%2Fworld_asia-pacific_japan%2Ffeed%2F%2Fproduct#axzz37Smlxstp

3. White spaces: An analyst explains the grand opportunities he sees for innovation

http://www.washingtonpost.com/blogs/innovations/wp/2014/07/14/white-spaces-an-analyst-explains-the-grand-opportunities-he-sees-for-innovation/

4. The Problem with Prediction Addiction

http://forbesindia.com/printcontent/38180

5. The Vanderbilts: How American Royalty Lost Their Crown Jewels

http://www.forbes.com/sites/natalierobehmed/2014/07/14/the-vanderbilts-how-american-royalty-lost-their-crown-jewels/print/

6. ‘Unbelievable money maker’ Christopher Hohn and charity worker wife fight over $1.3-billion in largest case ever to hit Europe’s divorce capital

http://business.financialpost.com/2014/07/14/unbelievable-money-maker-christopher-hohn-and-charity-worker-wife-fight-over-1-3-billion-in-largest-case-ever-to-hit-europes-divorce-capital/

7. How Do You Get to Carnegie Hall? Talent

http://www.nytimes.com/2014/07/15/science/which-matters-more-talent-or-practice.html?ref=science

TMT

1. (Tech/Myanmar) – Tech Scene in Myanmar Hinges on Cellphone Grid

http://www.nytimes.com/2014/07/14/business/international/tech-scene-in-myanmar-hinges-on-cellphone-grid.html?emc=edit_th_20140714&nl=todaysheadlines&nlid=36114517&_r=0

2. Advertisers seek to harness the power of parent bloggers; Advertisers are courting influential mums – and the odd dad

http://www.ft.com/intl/cms/s/0/fbf48cfe-0110-11e4-b94d-00144feab7de.html

3. Bulls and bears prepare for insurance processor Quindell valuation showdown; The company recognises revenues as it processes an insurance claim – which is often many months before any payment is received

http://www.ft.com/intl/cms/s/0/2d1c07e8-0b49-11e4-9e55-00144feabdc0.html#axzz37Smlxstp

4. Spain’s Gowex files for bankruptcy, ex-CEO could face 10 years in jail

http://www.reuters.com/article/2014/07/14/us-gowex-bankruptcy-idUSKBN0FJ1EV20140714?feedType=RSS&feedName=technologyNews

5. BitTorrent’s bold new proposition: A paywall and crowdfunding

http://business.financialpost.com/2014/07/14/bittorrents-bold-new-proposition-a-paywall-and-crowdfunding/?__lsa=1c82-dc92

6. (China/Tech) – As giant U.S. IPO nears, Alibaba’s China e-commerce crown slips

http://www.reuters.com/article/2014/07/14/us-china-ecommerce-idUSKBN0FJ0CT20140714?feedType=RSS&feedName=technologyNews

Healthcare

1. We Are Our Bacteria: A rise in diseases and other ailments is linked to the changing composition of microbes in the gut

http://well.blogs.nytimes.com/2014/07/14/we-are-our-bacteria/?ref=health

 

To Catch An Asian Snake: Detecting Accounting Fraud Ahead of the Curve – Value Unplugged 2014 in Naples and Value Investing Seminar 2014 in Trani

“Bamboo Innovators bend, not break, even in the most terrifying storm that would snap the mighty resisting oak tree. It survives, therefore it conquers.”

BAMBOO LETTER UPDATE | July 12, 2014
Bamboo Innovator Insight (Issue 41)

  • The weekly insight is a teaser into the opportunities – and pitfalls! – in the Asian capital jungles.
  • Get The Moat Report Asia – a monthly in-depth presentation report of around 30-40 pages covering the business model of the company, why it has a wide moat and why the moat may continue to widen, a special section on “Conversation with Management” to understand their thinking process in building up the business, the context – why now (certain corporate or industry events or groundbreaking news), valuations (why it can compound 2-3x in the next 5 years), potential risks and how it is part of the systematic process in the Bamboo Innovator Index of 200+ companies out of 15,000+ in the Asia ex-Japan universe.
  • Our paid Members from North America, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, some of the world’s biggest secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing.
 

To Catch An Asian Snake: Detecting Accounting Fraud Ahead of the Curve

– Value Unplugged 2014 in Naples and Value Investing Seminar 2014 in Trani

 

Dear Friends and All,

 

We will be making our way to Italy to present in two definitive events for serious value investors:

 

(1)    John and Oliver Mihaljevic’s Value Unplugged 2014 in Naples on July 14-16

(2)    Ciccio Azzollini’s Value Investing Seminar 2014 in Trani on July 17-18.

 

Value Unplugged:

Why are western-based red flags, fraud detection tools and techniques inadequate in analyzing and detecting accounting fraud in Asian companies? Many have snapped forensic scenes of the fraudulent, but it was usually with a sense of distance, as if they were outsiders peeking in. To paraphrase Sherlock Holmes, to murder (to engage in earnings management) is easy, but to dispose the murdered body (to expropriate or tunnel out the cash and assets out of the company) is harder as it is detectable. We don’t discover the “murderer” or fraud perpetuators by separating ourselves from them or just following clues. We need to delve deep into the psychological state where we can most easily identify with the “murderer”. Yet, too close an immersion can be very harmful when we fail to extricate ourselves out of the situation.

 

At the Value Unplugged, we will be doing a mini-workshop on “To Catch An Asian Snake: Detecting Accounting Fraud Ahead of the Curve” that draws upon our experience of interacting with the diverse players and “Extractors” in the Asian capital jungles, including the true-north focus on the positive “Compounders” who create sustainable value, to dissect multiple actual and potential cases of Asian corporates. We have been approached by the White Collar CrimeInvestigation special unit from the relevant Singapore government authorities and we are potentially conducting a workshop for them on detecting accounting fraud.

 

The exclusive 208-slides workshop material will be available for our Members after the Value Unplugged event. To download the proprietary content, please click here.

 

image003

Value Investing Seminar:

Q: Why is it that throughout the financial crisis, Italy has remained Europe’s second-largest export economy, after Germany, despite Italy being ranked as the 80th place in the World Bank’s “Ease of Doing Business” survey because of his strong labor unions, seemingly boundless bureaucracy, organized crime, and endemic tax evasion?

 

At Ciccio’s Value Investing Seminar, we will attempt to shed light on how even in the most austere of environment, wide-moat Bamboo Innovators such as the low-profile IMA SpA, who is the hidden global champion behind our tea bag packaging and pharmaceutical packaging controlled by the Vacchi family, are able to compound value in uncertain times. The predominant form of ownership that drives sustainable value creation in Italy/Europe and Asia is that of the family business. While some family business are known for their patient capital, in both regions, most are value destroyers given that the salient corporate governance risk is expropriation or tunneling of cash and assets by the controlling shareholders. Yet, while corporate control is highly concentrated in both Europe and Asia, there are critical differences to take note at the firm-level, particularly relevant given that Asia is at a critical transition phase in succession risk (and opportunity) with the patriarchs and matriarchs handing over the reins of their business empires to the right capital allocators. We will share briefly about:

 

(1)    Our investment framework to systematically uncover the misunderstood, overlooked, underappreciated and undervalued wide-moat compounder

(2)    An investment idea in Asia

(3)    Talk about a mistake and at the end

(4)    Recommend some amazing books for the audience who are lifelong learners in the art of value investing.

 

The exclusive 79-slides workshop material at the Value Investing Seminar event is available for our Members. To download the proprietary content, please click here.

 

Our plans to provide potential value-added content over the long-term:

 

1)      Video interviews with hidden Asian business leaders

2)      Analysis on Asian financial footnotes for the accounting and governance pitfalls

3)      New Moat Report Asia product focusing on Japan wide-moat compounders, and hopefully China A-share equities

4)      Leadership framework and insights of Bamboo Innovators

5)      Book project on “Compounders Vs Extractors in the Asian Capital Jungles”

 

We thank you for your patience and understanding while we dedicate our life and energy towards executing and delivering these content. We also seek friends and business partners who wish to collaborate.

 

The Moat Report Asia
 image001

“In business, I look for economic castles protected by unbreachable ‘moats’.”

– Warren Buffett

 

The Moat Report Asia is a research service focused exclusively on competitively advantaged, attractively priced public companies in Asia. Together with our European partners BeyondProxy and The Manual of Ideas, the idea-oriented acclaimed monthly research publication for institutional and private investors, we scour Asia to produce The Moat Report Asia, a monthly in-depth presentation report highlighting an undervalued wide-moat business in Asia with an innovative and resilient business model to compound value in uncertain times. Our Members from North America, the Nordic, Europe, the Oceania and Asia include professional value investors with over $20 billion in asset under management in equities, secretive global hedge fund giants, and savvy private individual investors who are lifelong learners in the art of value investing.

 

Learn more about membership benefits here: http://www.moatreport.com/subscription/

 

  • Individual subscription at $1,994 per year:

https://www.moatreport.com/individual-subscription/?s2-ssl=yes

 

Our latest monthly issue for the month of July investigates an Asian-listed company who’s the global #1 and #2 maker of two types of patient monitoring devices for both clinical- and home-use. Founded in 1981 and listed in 2001, the company’s reliable manufacturing technology platform for over 30 years has enabled it to build a global durable franchise in the niche patient monitoring device market that has stable resilient growth and yet is experiencing potential disruptions led by its new innovation. A secret to its success is its in-house capabilities to combine Swiss design, high-precision electronics and sensors components with clinical healthcare to produce world-class products with cost competitiveness. The firm has competitive technology and patents especially its core competence of having an algorithm to allow fast reading/filtering of signals and outputting the accurate results in a short period of time. Thecompany has the potential to consolidate the market further. The company is also a sticky ODM partner to reputable companies including Wal-Mart, Costco, CVS and it has a diversified customer base with none of the customers accounting for more than 10% of its sales. The company demonstrated that it has bargaining power over its powerful customers with the ability to build its own brand since 1998 (62% of overall sales). 91% of its sales are to developed markets in US and Europe. The company is trading at EV/EBIT 9.7x and EV/EBITDA 8.8x and has an attractive dividend yield at 5.6% and a strong balance sheet with net cash as percentage of market value and book equity at 23% and 47% respectively. The firm has also undertaken the unusual capital management program to reduce 10% of its shares outstanding in Sep 2012 to boost capital efficiency by utilizing the comfortable net cash position. The proactive shareholder-friendly stance backed by its strong net cash position should limit any downside in share price. The company’s terminal value and downside risk will be protected by giants such as J&J, Bayer, Abbott etc who wish to swallow it up to possess its valuable manufacturing technology platform and worldwide patents in algorithm-technology. The company’s worldwide patents in algorithm-technology has been commercialized into an innovative product series that is at the heart of its total solution service business model. This valuable intangible asset is not factored into long-term valuation. The innovative product with the algorithm measurement technology are not merely additional features; it “forces” the clinical community to adopt them as the standard, which in turn helps drive home-use penetration as patients seek a consistent and integrated healthcare experience. It transforms the product into a unique strategy that incorporates software development to create value-added services for health monitoring and collaborating with hospitals and governments on tele-healthcare projects. As a result of its wide-moat, the company has a far superior ROE at 20.9% that is nearly double that of its key giant conglomerate rival. When we compare EV/EBIT relative to ROE and ROA, the company is cheaper by as much as 120-150% when compared to its key giant conglomerate rival. The stock price of the company is down nearly 20% from its recent high in end March 2014 on profit-taking by short-term investors. Share price is back to May 2013 level, representing an attractive opportunity to take position in this long-term durable franchise. The stable long-term shareholdings and patient capital by the founder and the management team who together own around 48% of the equity has enabled the firm to adopt a very long-term approach to building its business and cultivating new growth areas. While he may sometimes be slightly over-optimistic and thinking too far ahead with his long-term opinions, this  idealistic engineer-visionary-philosopher has done a fantastic job in continuously defying the odds of many skeptics by growing the company from a small startup into one of the world’s leading patient monitoring equipment company. He is the rare Asian entrepreneur who was persistent in building his own brand despite the threat of offending his ODM customers. He was also early in cultivating and coordinating a global network with high-tech component, R&D and manufacturing in his home country, manufacturing, assembly and packaging in Shenzhen, China and medical R&D and clinical testing center in Europe, including making the difficult decision to establish a direct marketing sales force in Europe and North America given the high cost. Unlike most Asian business owners whose interest and focus in the core business starts to wane due to complacency from growing personal wealth and the inability to scale the core business, the founder is genuinely passionate in the company’s ability to add value to the patients and society. The firm can effectively run without the founder with the long-term corporate culture and management system in place, yet he can inject great value as the steward in new innovations; we believe that this combination is rare for an Asian company and deserves a valuation premium.

 

Our past monthly issues examine:

 

  • The world’s #1 ODM (Original Design Manufacturer) and global #5 manufacturer of a consumer healthcare device product that is used frequently, even daily, thus providing the foundation for stable recurring cashflow. This company is also a hidden champion in a niche product segment (50-55% of group’s sales) that has become a high-growth fashion product currently accounting for less than 10% of the overall industry. The company is able to mass-manufacture this niche product, but not the giants, because of its unique process IP in flexible manufacturing system and know-how to handle large-scale complex orders. The manufacture of this product itself is difficult to replicate and requires FDA/CE licenses because of its medical device nature and the entry barrier is not capital but the know-how and R&D expertise. In particular, the manufacturing integrates different fields of science including polymer chemistry, physics, optics, engineering, materials control, process control, microbiology, and, injection molding. The firm has also developed a proprietary system of tracking the manufacturing process of different sets of product so that if a quality issue arose, when and where the problem set of products was being produced could be swiftly identified, thus diminishing the scale and cost of product recall. This system has helped the firm win the long-term trust of its ODM customers to place stable large orders. The Big Four giants do not have such a system and have to incur substantial losses from product recalls. The company also possess its own brand which has many loyal followers and support in its home market where it enjoys a 30% market share and contributes to 25% of group’s sales while sticky ODM customers account for 75% of group’s sales, mainly from the Japan market. As a result of its wide-moat advantages, the firm enjoys a consistently high ROE of 41%, double or triple that of the giants. From FY07 onwards, even during the depths of the Global Financial Crisis in 2007/09, the firm has not raised equity. Since listing in Mar 2004, the company has only done one rights issue in May 2005. Also, it is able to sustain a strong stable cash dividend payout (>70% with 3% yield) with its healthy net-cash balance sheet (net cash $30m; net cash-to-equity ratio 23%) and proven management execution in prudent capex expansion to support sustainable quality earnings growth. M&A deals in the healthcare and medical device sector has been growing due to their strong defensive nature and giants seeking growth to overcome their own patent cliff. The firm will always be an attractive takeover target by giants who wish to swallow it up to possess its valuable flexible manufacturing system and know-how to fill their own missing competency gap and hence will enjoy long-term downside protection in its terminal value. In the battle between “ODM vs Brand”, we find the story of the company to be quite similar to that of TSMC (2330 TT, MV $103bn), now the largest ODM foundry in the world. “Skate to where the puck is going to be, not where it has been,” as hockey legend Wayne Gretzky advised. In our view, the profit and valuation premium in the value chain will start to skate to the “Inno-facturers” who are the hidden ODM innovators (the brand behind brands) consolidating the industry, such as TSMC and this company. While its valuation is not cheap with EV/EBIT (FY13) at 20.6x, when we compare EV/EBIT relative to ROE, the company is relatively cheap, by as much as 130-220% when compared to giants and other comparables. When we compare EV/EBITDA relative to ROE, the valuation gap is 90-160%. This long-term valuation gap implies that the company, with its far superior and sustainable ROE, could potentially double to $2.4bn, as it continues to consolidate its niche product segment and enter into a new product cycle of an innovative product whose patents are expiring in 2014/15 (US/worldwide) to make ASP/margin improvements in sustaining quality profits and cashflow. Its share price has dropped 18% from its recent high and underperformed the index by 26% in the last six months. This will present a buying opportunity for long-term value investors who can penetrate beyond conventional valuation metrics because of a deep understanding of its business model and underlying source of its wide-moat advantages. In Asia, many firms break apart or become value traps due to shareholder conflict, envy and differences in opinion on the business direction of the company. The stable long-term corporate culture infused by the late founder, who established the company in 1986 with the current executive chairman and 2 other key shareholders, to combine the energy and ideas of everyone to work hard to keep the business running forever is underappreciated.

 

  • The Home Depot of Asia which has the largest market share in its home country and now seeks to expand regionally. It is one of the few home improvement retailers in the world which is able to achieve a structural negative cash conversion cycle (CCC) at -39 days for resilient, recurring and sustainable operating cashflow to enable the expansion of its store network while keeping a healthy balance sheet. It is hard to achieve negative cash conversion cycle (CCC) as a home retailer as compared to a supermarket retailer as the product nature is more durable. Even Home Depot, Lowe’s and Bed Bath & Beyond (BBBY) are not able to achieve a negative CCC. Led by the capable owner-operators since 1995, the company is a pioneer in proactively creating awareness and demand in the minds of consumers that upgrading your home can be fun and in incremental affordable steps. Its creative branding has resulted in the firm to become the “first on customers’ mind”, or what Charlie Munger elucidated as the “psychological wide-moat” advantage. 80% of sales are generated customers looking for home improvement and renovation ideas and solutions.  Growth is supported by the management’s proven ability to identify and cater to dynamic changes in customer preferences. The firm’s comprehensive pre and aftersales service creates brand loyalty and sustains long-term sales. The merchandizing management is tailored to the peculiarities of customer preferences in each area to drive same store sales growth with creative customization by store, location, season and events. Its key strategy to expand its profit margin is to increase its higher-margin house brands and product-mix management. Its EBITDA/sqm of $400/sqm was higher than Home Depot until Home Depot experienced a rebound last year to $500/sqm. The firm’s resilient sales are supported by its unrivalled network of diverse locations throughout the country. Its bold vision and successful “Blue Ocean” execution in the highly fragmented second-tier markets has created a powerful wide-moat advantage that will last for many years to come. In short, the management have proven their ability to execute in difficult market and industry conditions especially in the past 5 to 7 years during the 2007/09 global financial crisis with the firm emerging much stronger. The Illinois Institute of Technology engineering graduate and quiet billionaire owner behind the home retailer is one of the few Asian business tycoons who has the thirst to scale up the business in a sustainable way, as opposed to opportunistic ventures, having been largely influenced by his early years experience observing the success of American wide-moat firms. If we can adjust the EV/EBITDA valuation metric to reflect the CCC, the company’s EV/EBITDA of 18.5x will be lower at 10-11x, while Home Depot’s EV/EBITDA 11x will be higher at 13x. Noteworthy is that Home Depot has a negative free cashflow throughout FY1989-2001 (13 consecutive years!) and yet market cap has climbed from $1.5bn to $103bn. Home Depot compounded despite the ugly valuations during the capex ramp-up. This once again highlights that the power of wide-moat is often underappreciated, misunderstood and overlooked. When Home Depot generated $180m in operating cashflow in FY1992, quite similar to this Asian firm now, Home Depot is valued at $5bn (vs $3bn). Store network is expected to double in the next 4-5 years, representing a potential doubling in market value.

 

  • The Northeast Asian-listed company who is the world’s largest maker of an essential component with applications in apparel, shoes, diapers, car seats etc. All top 20 global athletic shoe brands, including Nike, Adidas, Reebok, Sketchers, UnderArmor are customers and this Asian innovator with R&D capabilities has forged long-term “spec-in” partnerships with them. Its broad product offering is protected by over 110 patents. By locating its Pan-Asian production plant network in China, Taiwan, Vietnam and Indonesia close to its major clients, including sales/customer service centers and warehouses in US and Europe, the firm is better positioned to understand their requirements, deliver fast and meet their needs. While top 10 athletic shoe brands account 40% of its revenue, the firm has a diversified clientele base of over 10,000 customers, giving it resilience and growth with both the established and emerging brands as clients. The company is trading at PE14e 12x, EV/EBITDA 7.1x and EV/EBIT 10.6x with a dividend yield of 3.9%. Interestingly, its EBITDA margin is double that of Adidas and its 8.7% net margin is higher than Adidas’ 5.4%, though below Nike’s 9.8%. Given the tipping point of its Pan-Asian production network and contributions from its new products and as capex tapers off in the next few years, free cashflow could be around $50-60m and applying a P/FCF of 15x would yield a market value of $750-900m,, representing a potential upside of 100-150%. Thus, the firm offers a similar quality growth trajectory to Nike/Adidas with its unique knowledge-based business model and yet trades at a more attractive valuation and higher dividend yield as downside protection.

 

  • The Middleby of Asia commanding a dominant market share of over 80% in hypermarkets, 50% in chain outlets, 30% in 4- to 5-star hotels in China and an overall 30% in its home market. Yet, no single customer accounts for more than 5% of its revenue. Just to recall for value investors, NYSE-listed Middleby, with its sleepy and boring business, has compounded 100-fold from around $50m to $5.7bn since its tipping point in 1999. The founders of this Asian family business demonstrated clear dedication in building up the company with its wide-moat business model backed by a strong and unique distribution/marketing network in finding, winning and binding new customers to build massive brand equity and long-lasting relationships with clients over time. Their devotion to its core product for nearly 20 years results in maximum problem-solving skills, innovative strength and product leadership and hence, to ever greater customer benefit that will protect the company to consolidate the fragmented market and provide ample opportunities to continue its profitable growth. The company is currently trading at PE13e 15.8x and an undemanding EV/EBIT 10.1x and EV/EBITDA 9.5x and its growth potential based on its unique business model is not priced in. There is a structural re-rerating of niche business models with (1) diversified client base, (2) steady revenue streams, (3) lean capex requirements that creates ample free cashflow and defensive growth. Based on PE, P/CFO and EV/EBIT, the company is trading at a 40-50% discount to the foreign listed comparables despite more efficient use of assets in generating profits and cashflow. It has an attractive 7% earnings yield growing at 20% over the next 3-5 years and a 3.8% dividend yield that is supported by its strong cashflow generation ability, steady revenue stream and lean capex requirements to limit downside risks in valuation. Based on the growth plans to penetrate new product and customer segments; build its third plant in India in addition to the ones in its home market and in China; and potential bolt-on acquisition opportunities with its healthy balance sheet in net-cash position, it has the potential to double its operating cashflow in the next 3-5 years and market value could double, representing an upside potential of 100-140%.

 

  • An emerging Asian Walgreens which is a top 3 community pharmacy operator in its home market. Walgreens is a classic neglected American compounder up over 272-fold to $54 billion from under $200m as it quietly consolidates the market. Over the decade, we observed that it is difficult to scale services-based businesses without an entrepreneurial mindset, committment and execution and the bold and unique management system of the company since 2000 allowed the pharmacists to be part-owner of the business which will lead to increased level of commitment and an owner’s mindset in growing the business for the long-term in the community. The firm has strong cash generation ability due to its negative cash conversion cycle (CCC) in the business model to help the business stay resilient during difficult times and to fund capex needs internally without straining the business model scalability as the network expands. The centralized logistics system provide regular deliveries to all of its community pharmacies enables the outlets to maximize retail space without the need to have space to keep stocks. This also enables the community pharmacies to optimize retail space to carry a wide range of products which is important as consumers increasingly have top-of-mind recall for the company as the destination to go to for their healthcare needs. Like Walgreens, the company believed in the power of embedding technology into the business model to better compete and its financial and warehousing/inventory management systems are integrated with its in-house POS (point-of-sale) system which is linked among all its community pharmacies and head office via virtual private network. The company is founded by five college friends who were somewhat frustrated that their pharmacy degrees were underappreciated and under-rewarded as compared to their medical degree counterparts even though they had studied hard for 4-5 years and had in-depth medical knowledge. They were eager to prove themselves that they are as capable, if not more so. This restless spirit to prove their capabilities resulted in them coming together to be entrepreneurs and they wish to provide the platform for similar restless pharmacists to apply their hard-earned knowledge acquired in the university. We find that this common purpose and camaraderie spirit is rare in Asian companies and makes the company unique to scale up sustainably. The company is currently trading at a EV/EBIT of 13.9x and EB/EBITDA 12.6%. In the next two to three years as the company expands its network of outlets, operating cashflow (CFO) could increase 50-60% and a re-rerating could result in a doubling in market value.

 

  • An Asian-listed pharmaceutical company which has a dominant franchise in a neglected but growing diseaseand is a leader with a domestic market share of 49% in this niche segment and is the only fully-integrated player amongst the few pre-qualified WHO firms, giving it >30% EBITDA margin, better pricing power compared to the competition, and significant advantage over other players in ramping up the global business from the current 30% market share in the most-common treatment drug (vs Novartis 50%). Furthermore, the pharma company has the second-highest GP/TA (gross profit/ total asset) ratio in the industry at 56.3% and the most conservative accounting practice in the industry which “depresses” earnings relative to its peers i.e. it is the only domestic firm which expenses, and does not capitalize, all R&D. With the new plant for formulations export to US, the deepening of the niche drug franchise, growing wins in chronic pain and other niche areas and the commercialization of the potential blockbuster product of blood thinner by FY16/17, EBITDA could potentially double to $200m in the next 4-5 years, triggering a valuation re-rating to a market value of $3.4bn, a 130% upside.

 

  • An Australian-listed company with market value $405m, EV/EBITDA 7.5x, EV/EBIT 10x, div 3%, 70% domestic market share whose management made the controversial bold decision to stop overseas exports in order to focus on cultivating the higher-margin domestic market with innovative marketing strategy and new products and is potentially doubling its supply in the next 3-5 years. It is in its 10th year of listing after piling the foundation in consolidation, investment, rationalization for its next stage. It has an all-time low debt-equity position 18.6% with healthy balance sheet. “Buffett of Nordic” recently increased position between Apr-Sep this year in the peer comparable of the company and the billionaire investor announced in Nov an acquisition of a rival in a wave of global consolidation and with the view on a sustained recovery in product prices.

 

  • Northeast Asia-listed company with global #1 market share leadership in 4 different products, including making the components for an innovative consumer product whose sales have climbed from $90 million to $526 million in the recent three years. The company is a hidden global consolidator with underappreciated growth. The stock is trading at PE 11.5x, EV/EBITDA 9x and generates a sustainable dividend yield 5.75%.

 

  • Taiwan and Southeast-Asian-listed entrepreneurial company, both with a dominant 80% domestic market share and have innovative business models to generate substantial cashflow to support both expansion and a 4-5% dividend yield.

 

  • There is also a behind-the-scene conversation with the CEOs of the companies to understand their thinking process in building up the business.

 

The Moat Report Asia Members’ Forum has been getting penetrating quality dialogues from our subscribers.Questions range from:

 

  • The nuances of internal dealings in Asia, including the case discussion of the recent deal in which HK billionaire’s Lee Shau-kee Henderson Land acquiring Towngas or Hong Kong & China Gas (3 HK) from his family holdings, seemingly déjà vu from the early Oct 2007 transaction when the market peak.
  • The case of F&N Singapore spinning out its property unit FCL Trust and getting “free” special dividend-in-specie and the potential risk in asset swap restructuring to deleverage the hidden debt in the entire Group balance sheet.
  • The dilemma of whether to invest in a Southeast Asian-listed company and hidden champion with a domestic market share of 60% due to family squabbles and a legal suit over the company’s ownership.
  • Discussion of the wise and thoughtful 107-year-old Irving Kahn’s investment into a US-listed but Hong Kong-based electronics company with development property project in Shenzhen’s Qianhai zone and the possible corporate governance risks that could be underestimated or overlooked, as well as their history of listing some assets in HK in 2004.. This is also a case study of “buy one get one free” in John’s highly-acclaimed book The Manual of Ideas in which the “free” property is lumped together with the (eroding) core business to make the combined entity look cheap and undervalued. What are the potential areas that value investors need to watch out for when adapting the SOTP (sum-of-the-parts) valuation method in Asia?
  • And many more intriguing questions.

 

Do find out more in how you can benefit from authentic and candid on-the-ground insights that sell-side analysts and brokers, with their inherent conflict-of-interests, inevitable focus on conventional stock coverage and different clientele priorities, are unwilling or unable to share. Think of this as pressing the Bloomberg “Help Help” button to navigate the Asian capital jungle. Institutional subscribers also get access to the Bamboo Innovator Index of 200+ companies and Watchlist of 500+ companies in Asia and the Database has eliminated companies with a higher probability of accounting frauds and  misgovernance as well as the alluring value traps.

 

Professional Development Workshops for Executives and Lifelong Learners
 

Our 8th run of the series of workshop From the Fund Management Jungles: Value Investing Exposed and Explored – (Part 1) Moat Analysis, (Part 2) Tipping Point Analysis and (Part 3) Detecting Accounting Fraud – on 14 June 2014 has been well-received with serious value investors, professionals, and serious lifelong learners attending, with some who flew in from Jakarta and KL!..

 

Our 9th workshop will be on Detecting Accounting Fraud Ahead of the Curve sometime later in the year.

 

Thank you for your support all this while!

 

 

Thank you so much for reading as always.

 

Warm regards,

KB Kee

image004

Managing Editor

The Moat Report Asia

Singapore

Mobile: +65 9695 1860

 

A Service of BeyondProxy LLC

1608 S. Ashland Avenue #27878

Chicago, Illinois 60608-2013

Other offices: London, Singapore, Zurich

 

 

P.S.1 Here is a little more about my background:

KB Kee has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company.

 

He holds a Masters in Finance and degrees in Accountancy and Business Management, summa cum laude, from Singapore Management University (SMU) and had also published articles on governance and investing in the media, as well as published an empirical research paper Why ‘Democracy’ and ‘Drifter’ Firms Can Have Abnormal Returns: The Joint Importance of Corporate Governance and Abnormal Accruals in Separating Winners from Losers in the Special Issue of Istanbul Stock Exchange 25th Year Anniversary Best Paper Competition, Boğaziçi JournalReview of Social, Economic and Administrative Studies, Vol. 25(1): 3-55. KB has also presented his thought leadership as a keynote speaker in global investing conferences. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic, industry trends, and detecting accounting frauds in Singapore, HK and China, and had taught accounting at the SMU where he is currently an adjunct lecturer.

 

P.S.2  Why do I care so much about doing The Moat Report Asia for you?

My personal motivation in embarking on this lifelong journey has been driven by disappointment from observing up close and personal the hard-earned assets of many investors, including friends and their families, burnt badly by the popular mantra: “Ride the Asian Growth Story!” I witnessed firsthand the emotional upheavals that they go through when they invest their hard-earned money – and their family’s – in these “Ride The Asian Growth Story” stocks either by themselves or through money managers, and these stocks turned out to be the subject of some exciting “theme” but which are inherently sick and prey to economic vicissitudes. They may seem to grow faster initially but the sustainable harvest of their returns is far too uncertain to be the focus of a wise program in investment. Worse still, the companies turned out to be involved in accounting frauds. Their financial numbers were “propped up” artificially to lure in funds from investors and the studiously-assessed asset value has already been “tunnelled out” or expropriated. And western-based fraud detection tools and techniques have not been adapted to the Asian context to avoid these traps.

 

After a decade-plus journey in the Asian capital jungles, it has been somewhat disheartening as I observe many fraud perpetrators go away scot-free and live a life of super luxury on minority investors’ hard-earned money. And these perpetrators make tempting offers to various parties in the financial community to go along with their schemes. When investors have knowledge in their hands, we have a choice to stay away from these people and away from temptations and do the things that we think are right. With knowledge, we have a choice to invest in the hardworking Asian entrepreneurs and capital allocators who are serious in building a wide-moat business.

 

CONNECT WITH US   image005 image006image007image008image009
MOAT REPORT ASIA    OUR TEAM    SUBSCRIBE    MEMBERS    CONTACT US

The Moat Report Asia
A Service of BeyondProxy LLC
1608 S. Ashland Avenue #27878
Chicago, Illinois 60608-2013

Other offices: London, Singapore, Zurich

 

Evening Bamboo Insight: 14 Jul 2014

Evening Bamboo Insight: 14 Jul 2014

Macro

1. Industrial conglomerate Johnson Controls is wheeling and dealing its way into more-profitable businesses; founded in 1885 BY Warren Johnson, inventor of the thermostat, JCI strives to provide power and comfort in eco-friendly ways

http://online.barrons.com/news/articles/SB50001424053111904248904580005053922209586?mod=BOL_mp_emailed_today

2. How capital captured politics; WikiLeaks has shown us that western democracies are now ruled by market forces that debase the very notion of freedom

http://www.theguardian.com/commentisfree/2014/jul/13/capital-politics-wikileaks-democracy-market-freedom

3. As some high-risk assets take a hit, investors fear worse is to come

http://www.reuters.com/article/2014/07/13/us-usa-markets-risks-analysis-idUSKBN0FI0T820140713

4. Private equity: A fee too far; Regulators are probing conflicts of interest and high fees charged by fund managers to the companies they own

http://www.ft.com/intl/cms/s/0/9dd43216-0857-11e4-9afc-00144feab7de.html#axzz37OPUp7V5

5. What central banks should do to deal with bubbles; It is a mistake to view macroprudential regulation as a potent independent policy tool

http://www.ft.com/intl/cms/s/0/e5cbf972-08ee-11e4-9d3c-00144feab7de.html

6. Fortunes of wealthiest French keep growing; Corporate success abroad is main driver behind 15% rise

http://www.ft.com/intl/cms/s/0/87c21f4a-08f9-11e4-8d27-00144feab7de.html

7. Turbine makers adapt to winds of change

http://www.ft.com/intl/cms/s/0/e7a93ac4-068d-11e4-ba32-00144feab7de.html#slide0

8. Regulators, Traders Are Out of Sync; As trading hits warp speed, market cops have a growing headache: Clocks can’t always keep up

http://online.wsj.com/articles/regulators-traders-are-out-of-sync-1405295799?mod=rss_about_india

9. In Canada, a Central Banker’s Unusual Approach; Head of Bank of Canada Looks Beyond Economic Models for Clues

http://online.wsj.com/articles/in-canada-a-central-bankers-unusual-approach-1405287298

10. Railroads’ Gravy Train Heads for a Bump

http://online.wsj.com/articles/railroads-gravy-train-heads-for-a-bump-1405286429

11. For Fed, Raising Rates Won’t Be Easy; Central Bank’s Old Method Won’t Work Anymore

http://online.wsj.com/articles/heard-on-the-street-for-fed-raising-rates-wont-be-easy-1405276688

12. The Government Bond Racket; Regulators figure out that sovereign debt isn’t risk free.

http://online.wsj.com/articles/the-government-bond-racket-1405290654

Asia Pacific

1. (Myanmar) – Mandalay’s Chinese Muslims Chilled by Riots

http://www.nytimes.com/2014/07/13/world/asia/mandalays-chinese-muslims-chilled-by-riots.html?emc=edit_th_20140713&nl=todaysheadlines&nlid=36114517&_r=1

2. (China) – China detains prominent financial TV anchor in what appears to be the latest target in a corruption crackdown

http://www.channelnewsasia.com/news/asiapacific/china-detains-prominent/1259014.html#

3. (Isia) – Ruminating on Indonesia’s Future Amid Uncertainty

http://www.thejakartaglobe.com/business/ruminating-indonesias-future-amid-uncertainty/

4. (China/Consumer) – Pizza Express sells for £900m to Chinese investment group

http://www.theguardian.com/business/2014/jul/12/pizza-express-sells-900m-chinese-investments-group-hony-capital

5. (Taiwan) – Taipei ranked world’s 61st most expensive city for expats Vs HK 3rd, Singapore 4th, Zurich 5th, Geneva 6th

http://www.wantchinatimes.com/news-subclass-cnt.aspx?cid=1202&MainCatID=12&id=20140713000027

6. (China) – Chen Xiaoxin, grandson of Communist Party ‘immortal’ Chen Yun

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140712000012&cid=1601

7. (Japan) – Economic reform is the key to fixing the Japanese constitution; With fresh challenges emerging it is crucial to give the people a bigger say

http://www.ft.com/intl/cms/s/0/33aa4fce-090b-11e4-8d27-00144feab7de.html#axzz37OPUp7V5

8. (Korea/Tech) – Owen Mahoney of Nexon: a US geek at the helm of a Japanese game developer

http://www.ft.com/intl/cms/s/0/ab753e3e-0865-11e4-9afc-00144feab7de.html#axzz37OPUp7V5

9. (Msia) – Analysts query logic of Malaysia three-way bank merger

http://www.ft.com/cms/s/0/9331446e-0a3e-11e4-a55e-00144feabdc0.html

10. A flight less ordinary: How Air New Zealand became Australasia’s most profitable airline

http://www.smh.com.au/business/a-flight-less-ordinary-how-air-new-zealand-became-australasias-most-profitable-airline-20140714-zt6di.html#ixzz37QJeP3tB

11. (China) – World Bank Pens a Paean to China’s Low-Cost, High-Speed Trains

http://blogs.wsj.com/chinarealtime/2014/07/14/world-bank-pens-a-paean-to-chinas-high-speed-trains/

12. (China/Consumer) – Chinese Buyer Taps Into Coconut Water Craze; Owner of Vita Coco Is Selling a 25% Stake in the Top-Selling U.S. Brand to Beijing’s Reignwood

http://online.wsj.com/articles/chinese-buyer-taps-into-coconut-water-craze-1405300157

13. (China/Consumer) – China’s Wine Market Shifts Toward Entry Level; Crackdown on Lavish Gift-Giving Sours High-End Segment, But Lower Priced Wine Is in Bloom

http://online.wsj.com/articles/chinas-wine-market-shifts-toward-entry-level-1405305923

14. (India) – India Finance Minister: Public Might Not Be Ready for Broad Overhauls; Jaitley Philosophy Seems to Clash With That of Prime Minister Modi

http://online.wsj.com/articles/india-finance-minister-public-might-not-be-ready-for-broad-overhauls-1405252761

Life

1. Unspoiled Children, No Rod Needed; How Parents Can Be Generous Without Turning Children Into Entitled Little Terrors

http://online.wsj.com/articles/unspoiled-children-no-rod-needed-1405210274

2. Chinua Achebe on the Meaning of Life and the Writer’s Responsibility in Society

http://www.brainpickings.org/index.php/2014/07/11/chinua-achebe-meaning-of-life/

3. Buddhist Economics: How to Stop Prioritizing Goods Over People and Consumption Over Creative Activity

http://www.brainpickings.org/index.php/2014/07/07/buddhist-economics-schumacher/

4. Forget The “To-Do” List, You Need A ‘Stop Doing’ List

http://www.farnamstreetblog.com/2014/07/jim-collins-stop-doing-list/

5. Sir William Osler: A Way of Life; “Our main business is not to see what lies dimly in the distance, but to do what lies clearly at hand.”

http://www.farnamstreetblog.com/2014/07/william-osler-a-way-of-life/

6. The Uses Of Being Wrong

http://www.farnamstreetblog.com/2014/07/the-uses-of-being-wrong/

7. How to Talk About Pain: Modern medicine has impoverished the language we use to describe our suffering

http://www.nytimes.com/2014/07/13/opinion/sunday/how-to-talk-about-pain.html?ref=opinion

8. All Children Should Be Delinquents? It’s how they learn right from wrong

http://www.nytimes.com/2014/07/13/opinion/sunday/all-children-should-be-delinquents.html?ref=opinion

9. How a conversation with Warren Buffett led to a hit tequila

http://fortune.com/2014/07/11/avion-tequila-pernod-buffett/

10. Back from Bankruptcy: The Billion-Dollar Families Whose Fortunes Survived Near Brush With Death

http://www.forbes.com/sites/chloesorvino/2014/07/13/back-from-bankruptcy-the-billion-dollar-families-whose-fortunes-survived-near-brush-with-death/print/

11. Beethoven Used This Strategy To Keep Creative Ideas Flowing

http://www.businessinsider.com/beethovens-creative-strategy-2014-7

12. A Dozen Things I have Learned from Jeff Bezos

http://25iq.com/2014/04/26/a-dozen-things-i-have-learned-from-jeff-bezos/

13. Sigmund Freud, the Never-Ending Storyteller

http://www.vqronline.org/nonfiction-criticism/2014/06/sigmund-freud-never-ending-storyteller

14. Superintelligence: Paths, Dangers, Strategies, by Nick Bostrom; In ‘Superintelligence’, Nick Bostrom argues that we need to endow robots with human values

http://www.ft.com/intl/cms/s/2/021d3484-fd1d-11e3-8ca9-00144feab7de.html#axzz37OPUp7V5

15. The Vatican bank: Managing Mammon; A shake-up of Catholic finances

http://www.economist.com/news/finance-and-economics/21606897-shake-up-catholic-finances-managing-mammon

16. How confidence boosts motivation

http://www.todayonline.com/print/684786

17. The Corruption of Peer Review Is Harming Scientific Credibility

http://online.wsj.com/articles/hank-campbell-the-corruption-of-peer-review-is-harming-scientific-credibility-1405290747

TMT

1. The huge exposure Univision has received from the World Cup shows how the growth of America’s Hispanic population is reshaping the media landscape

http://www.nytimes.com/2014/07/13/business/media/biggest-scorer-in-world-cup-maybe-univision.html?ref=business&_r=0

2. From Obamacare to Marks & Spencer: when websites go wrong

http://www.theguardian.com/business/2014/jul/13/marks-spencer-obamacare-websites-go-wrong

3. Cybercrime: Hackers Inc; Cyber-attackers have multiplied and become far more professional

http://www.economist.com.libproxy.smu.edu.sg/news/special-report/21606420-perils-connected-devices-home-hacked-home

4. A special report on cyber-security

http://www.economist.com.libproxy.smu.edu.sg/news/special-report/21606416-companies-markets-and-countries-are-increasingly-under-attack-cyber-criminals

Consumer

1. How American Apparel fell into ‘dangerous trap’ of retail expansion hype

http://business.financialpost.com/2014/07/12/how-american-apparel-fell-into-dangerous-trap-of-retail-expansion-hype/

2. Michael Kors Should Study Coach’s Errors; Same-Store Sales Have Tumbled for Coach; Kors Is Gaining Market Share

http://online.wsj.com/articles/heard-on-the-street-michael-kors-should-study-coachs-errors-1405287468

3. A Tobacco CEO Who ‘Vapes’ Could Alter the Industry; As Reynolds Talks With Lorillard, Susan Cameron Is Known Exploring New Avenues

http://online.wsj.com/articles/a-tobacco-ceo-who-vapes-could-alter-the-industry-1405297837?mod=yahoo_hs

Healthcare

1. Key to Detecting Alzheimer’s Early Could Be in the Eye

http://online.wsj.com/articles/key-to-detecting-alzheimers-early-could-be-in-the-eye-1405253029?mod=WSJ_hp_RightTopStories

 

 

 

Morning Bamboo Insight: 14 Jul 2014

Morning Bamboo Insight: 14 Jul 2014

Macro

1. How Overvalued Markets Translate Into Lower Returns; The stock market isn’t poised to match its long-term annualized average return of around 10%.

http://online.wsj.com/articles/how-overvalued-markets-translate-into-lower-returns-1405099363

2. Investing in retirement: The $15 trillion question; Many retired people don’t have proper pensions any more. The financial-services industry may end up cashing in

http://www.economist.com/news/finance-and-economics/21606894-many-retired-people-dont-have-proper-pensions-any-more-financial-services

Asia Pacific

1. (China/India) – India and China – clash of the titans

http://www.ft.com/intl/cms/s/0/6d93cb7c-06a2-11e4-ba32-00144feab7de.html#axzz37EV0xvH2

2. (Isia) – ‘Puppet President’ Fears Unfounded, Observers Say

http://www.thejakartaglobe.com/news/puppet-president-fears-unfounded-observers-say/

3. (Myanmar) – Generals fail to market Myanmar; Three years after Myanmar’s ruling generals shed their uniforms and propelled the country on an ambitious journey toward democracy, security forces are back on the streets of the former military dictate

http://www.deccanherald.com/content/419189/generals-fail-market-myanmar.html

4. (China/Consumer) – Not even China can drink enough milk to prevent the coming global glut

http://qz.com/233328/not-even-china-can-drink-enough-milk-to-prevent-the-coming-glut/

5. (China) – Many of the nouveau riche in China made their fortunes illegally

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140712000010&cid=1103

Life

1. Bill Gates’s Favorite Business Book; John Brooks’s 1960s collection ‘Business Adventures’ still offers many insights into running a strong business

http://online.wsj.com/articles/bill-gatess-favorite-business-book-1405088228

2. Book Review: ‘How the Bible Became Holy’ by Michael L. Satlow; Jews cherished scripture as one of the few things that allowed them to endure and transcend alien hegemony

http://online.wsj.com/articles/book-review-how-the-bible-became-holy-by-michael-l-satlow-1405114209

3. Can books cross borders? Have we arrived in an era of global literature, or is it important that writers share a common language, culture – or at least context – with their readers?

http://www.ft.com/intl/cms/s/2/a68127ea-0765-11e4-b1b0-00144feab7de.html?ftcamp=published_links%2Frss%2Flife-arts%2Ffeed%2F%2Fproduct#axzz37EV0xvH2

4. The dissolution of the Soviet Union; Ukraine’s role and how Mikhail Gorbachev, George HW Bush and Boris Yeltsin were resistant to the break-up

http://www.ft.com/intl/cms/s/2/5e852474-0831-11e4-9afc-00144feab7de.html#axzz37EV0xvH2

5. Schumpeternomics: Gotta’ keep on learning

http://www.thestar.com.my/Business/Business-News/2014/07/12/Schumpeternomics-Gotta-keep-on-learning/

6. (Msia) – Story behind CIMB merger plan; With Islamic finance gaining global acceptance, it’s only natural to set up the biggest Islamic bank in Malaysia. More M&As ahead in the banking sector?

http://www.thestar.com.my/Business/Business-News/2014/07/12/Story-behind-CIMB-merger-plan-With-Islamic-finance-gaining-global-acceptance-its-only-natural-to-se/

http://www.thestar.com.my/Business/Business-News/2014/07/12/More-MAs-ahead-in-the-banking-sector-An-analyst-does-not-discount-the-possibility-of-a-Mayba/

7. The Trouble With Brain Science; It’s not just that we lack answers. We don’t even agree on the questions

http://www.nytimes.com/2014/07/12/opinion/the-trouble-with-brain-science.html?ref=opinion&_r=0

8. American Apparel Is a Lesson in How Not to Run a Company

http://www.nytimes.com/2014/07/12/opinion/joe-nocera-american-apparel-is-a-lesson-in-how-not-to-run-a-company.html?ref=opinion

Investing Process

1. Cynk Technology’s Valuation Defied Gravity Without Revenue, Rousing SEC; Market Capitalization Shot Up to $6 Billion; Regulator Flags ‘Potentially Manipulative Transactions’

http://online.wsj.com/articles/sec-suspends-trading-in-cynk-technology-1405088036?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+(WSJ.com%3A+What%27s+News+US)

2. Short sellers, beware – the price also rises; The Gowex case focuses on the ethics of raising doubts, writes Izabella Kaminska

http://www.ft.com/intl/cms/s/0/f1698bfe-082c-11e4-acd8-00144feab7de.html#axzz37EV0xvH2

 

Evening Bamboo Insight: 13 Jul 2014

Evening Bamboo Insight: 13 Jul 2014

Macro

1. Philips: Lights out; The Dutch electronics firm restructures, yet again; In the early 1980s the company that had invented the rotary shaver

http://www.economist.com/news/business/21606847-dutch-electronics-firm-restructures-yet-again-lights-out

2. Junk-Rated Loans Could Incur Big Losses: OCC Comptroller; Should the economy come under stress, a large number of leveraged loans could default and cause record losses, according to one banking regulator.

http://ww2.cfo.com/credit/2014/07/junk-rated-loans-incur-big-losses-occ-comptroller

3. UK banks may have to hold more capital than under global rule

http://www.reuters.com/article/2014/07/11/us-britain-boe-leverage-idUSKBN0FG0MQ20140711

4. A Cash Headache for Companies

http://online.wsj.com/articles/heard-on-the-street-a-cash-headache-for-companies-1405091857?mod=yahoo_hs

5. (Taiwan/Tech) – TSMC Starts Shipping Microprocessors to Apple; After Samsung Dispute, the iPhone and iPad Maker Seeks to Diversify Suppliers

http://online.wsj.com/articles/tsmc-starts-shipping-microprocessors-to-apple-1404991514

Asia Pacific

1. Japanese electronics firms: Eclipsed by Apple; Electronics companies in Japan are starting to turn themselves around, but they are a shadow of their former selves

http://www.economist.com/news/business/21606845-electronics-companies-japan-are-starting-turn-themselves-around-they-are-shadow

2. (China/Tech) – Alibaba Has a Long Runway for Growth

http://news.morningstar.com/articlenet/HtmlTemplate/PrintArticle.htm?time=93321861

3. (Spore) – $5 meals, $500 holidays and $50k homes for SG50, Singapore’s 50th anniversary

http://news.asiaone.com/print/news/singapore/5-meals-500-holidays-and-50k-homes-sg50

4. (China/Tech) – Alibaba Sets Latest Value at $130 Billion; The Chinese E-Commerce Company Values Each Share at $56, up from $50 in an Earlier Filing

http://online.wsj.com/articles/alibaba-sets-latest-value-at-130-billion-1405119989

5. (Asean/Tech) – Southeast Asia E-Commerce Set to Boom

http://blogs.wsj.com/digits/2014/07/10/southeast-asia-e-commerce-set-to-boom/

6. (China) – China Unveils Measures to Regulate Banks’ Wealth-Management Products; New Requirements Another Step to Tighten Grip on Shadow-Banking Business

http://online.wsj.com/articles/china-unveils-measures-to-regulate-banks-wealth-management-products-1405079528

Life

1. The Epic Story Of How A ‘Genius’ Hedge Fund Almost Caused A Global Financial Meltdown

http://www.businessinsider.sg/the-fall-of-long-term-capital-management-2014-7/#.U8AfovmSxqU

2. The Surprising Benefits Of Being Superstitious

http://www.businessinsider.sg/surprising-benefits-of-superstitions-2014-7/#.U8AgZvmSxqU

3. 2 Economists Have A Radical Proposal To Make It Legal To Steal Other People’s Ideas

http://www.businessinsider.sg/america-without-patents-2014-7/#.U8AgXPmSxqU

4. German lessons: Many countries want a Mittelstand like Germany’s. It is not so easy to copy

http://www.economist.com/news/business/21606834-many-countries-want-mittelstand-germanys-it-not-so-easy-copy-german-lessons

5. Kimberly-Clark Finance Chief to Staff: Think Like a CFO; Mark Buthman’s ‘Power of a CFO’ mantra aims to instill a business-leader mindset in every team member

http://ww2.cfo.com/leadership/2014/07/kimberly-clark-finance-chief-staff-think-like-cfo

6. 5 Great Business Books To Look Out For In Q3

http://www.valuewalk.com/2014/07/great-business-books

7. The Intel Trinity: How Robert Noyce, Gordon Moore, and Andy Grove Built the World’s Most Important Company

http://www.amazon.com/gp/product/0062226762/

8. Driving Honda: Inside the World’s Most Innovative Car Company

http://www.amazon.com/gp/product/1591844738

9. The Power of Noticing: What the Best Leaders See

http://www.amazon.com/gp/product/147670029X

10. The Organized Mind: Thinking Straight in the Age of Information Overload

http://www.amazon.com/gp/product/052595418X

11. Smartcuts: How Hackers, Innovators, and Icons Accelerate Success

http://www.amazon.com/Smartcuts-Hackers-Innovators-Accelerate-Success/dp/product-description/0062302450

12. The small BIG: small changes that spark big influence

http://www.amazon.com/small-BIG-changes-spark-influence/dp/1455584258

13. Zero to One: Notes on Startups, or How to Build the Future

http://www.amazon.com/gp/product/0804139296

14. The Innovator’s Hypothesis: How Cheap Experiments Are Worth More than Good Ideas

http://www.amazon.com/gp/product/0262028360

15. The Sense of Style: The Thinking Person’s Guide to Writing in the 21st Century

http://www.amazon.com/Sense-Style-Thinking-Person%C2%92s-Writing/dp/0670025852

16. The Innovators: How a Group of Inventors, Hackers, Geniuses, and Geeks Created the Digital Revolution

http://www.amazon.com/gp/product/147670869X/ref=as_li_qf_sp_asin_il_tl

17. Winners Dream: A Journey from Corner Store to Corner Office by SAP co-CEO Bill McDermott

http://www.amazon.com/gp/product/1476761086

18. Would You Buy Abraham Lincoln’s Sweater? Many believe that people leave their immaterial essences on objects they owned

http://online.wsj.com/articles/would-you-buy-abraham-lincolns-sweater-1405090692

19. Skin Cells’ Sense of Smell; Researchers have found that skin has olfactory receptors-and that a synthetic sandalwood scent facilitates wound-healing

http://online.wsj.com/articles/skin-cells-sense-of-smell-1405104181

20. Disinformation: A Deliberately Devious Word; The CIA’s style guide makes a careful distinction between misinformation and disinformation

http://online.wsj.com/articles/disinformation-a-deliberately-devious-word-1405127883?mod=rss_Books

21. Famous Lost Words; A brief history of dubious edits, from a book-burning Chinese emperor to the Bowdlers’ rewrites of Shakespeare

http://online.wsj.com/articles/famous-lost-words-1405121109

TMT

1. Microsoft CEO Satya Nadella Just Rejected Steve Ballmer’s Big Plan to be a “devices and services” company (devices came first) by becoming a “productivity and platforms” company

http://www.businessinsider.sg/nadella-just-rejected-ballmers-vision-2014-7/#.U8AgTvmSxqU

2. The biggest internet companies

http://www.economist.com/news/business/21606850-biggest-internet-companies

3. Japanese electronics firms: Eclipsed by Apple; Electronics companies in Japan are starting to turn themselves around, but they are a shadow of their former selves

http://www.economist.com/news/business/21606845-electronics-companies-japan-are-starting-turn-themselves-around-they-are-shadow

4. Intel’s Answer to iPad: Cheap Tablets; Chip Maker, Frozen Out of Market, Is Wooing Little-Known Suppliers in Shenzhen, China

http://online.wsj.com/articles/for-intel-chinese-city-of-shenzhen-holds-key-to-tablet-market-1405106599?mod=LS1

Consumer

1. Levi Strauss: The Boss and the yogi; The world’s biggest jeans-maker makes an unfashionable bet on the middle market

http://www.economist.com/news/business/21606849-worlds-biggest-jeans-maker-makes-unfashionable-bet-middle-market-boss-and

Investing Process

1. Accounting fraud: Got ’em, Gotham; The company-accounts detectives collar another suspect

http://www.economist.com.libproxy.smu.edu.sg/news/business/21606838-company-accounts-detectives-collar-another-suspect-got-em-gotham

 

Morning Bamboo Insight: 13 Jul 2014

Morning Bamboo Insight: 13 Jul 2014

Macro

1. The UK and 50 years of public sector over-reach

http://www.telegraph.co.uk/finance/economics/10960674/The-UK-and-50-years-of-public-sector-over-reach.html

2. African family businesses have significantly outperformed those in the Middle East and Asia when it comes to good corporate governance

http://www.campdenfb.com/article/african-family-businesses-beat-other-emerging-markets-corporate-governance

3. Despite Exposure of Madoff Fraud, New Ponzi Schemes Emerge

http://dealbook.nytimes.com/2014/07/10/despite-exposure-of-madoff-fraud-new-ponzi-schemes-emerge/?smid=tw-share

Asia Pacific

1. (India) – Discovering India’s Hidden Gems

http://forbesindia.com/printcontent/38158

2. (China) – Three ways ordinary Chinese companies are driving innovation

http://forbesindia.com/printcontent/38130

3. (Spore) – What Makes An Asian Tiger? Singapore’s Unlikely Economic Success Lies In Its History

http://www.forbes.com/sites/forbesasia/2014/07/10/what-makes-an-asian-tiger-singapores-unlikely-economic-success-lies-in-its-history/print/

4. (China/Tech) – Youdao Bets Its 400M Free Dictionary Users Ready to Pay for Online Educational Products

http://technode.com/2014/07/11/youdao-bets-400m-free-dictionary-users-ready-pay-online-educational-products/

5. (China/Tech) – 3 Types of Chinese Internet Companies May Find Opportunities in Overseas Market: Tools, Virtual Products and M-commerce companies

http://technode.com/2014/07/10/3-types-of-chinese-internet-companies-may-find-opportunities-in-overseas-market-ggv-capital-hans-tung/

6. (China) – China ventures into SOE mixed-ownership reform; China relaxes asset restructuring rule for listed firms

http://news.xinhuanet.com/english/china/2014-07/11/c_133477278.htm

http://news.xinhuanet.com/english/china/2014-07/11/c_133477630.htm

7. (China) – Tesla entangled in familiar trademark troll problem in China

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140711000136&cid=1206

8. (China) – Red Nobility: Liu Xiaoxiao, youngest daughter of Liu Shaoqi

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140710000008&cid=1601

9. (China) – Mysterious Shanghai private firms makes Fortune Global 500; CEFC China Energy came in at No.349 with an operating income of US$33.6 billion

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140711000019&cid=1206

10. (China) – How wealthy Chinese smuggle their money overseas

http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140711000115&cid=1103

11. (China) – Top Chinese Economists Debate Role of Gov’t in Economy

http://english.caixin.com/2014-07-11/100702690.html

12. (China/Tech) – Is UnionPay Really Trying to Handle Payments with QR Codes? The central bank banned paying via quick-response codes, so why is a company closely linked to the PBOC getting involved?

http://english.caixin.com/2014-07-10/100702388.html

13. (Asean) – Lavish Phnom Penh procession to enshrine former Cambodian king Sihanouk

http://www.scmp.com/print/news/asia/article/1551950/lavish-phnom-penh-procession-enshrine-former-cambodian-king-sihanouk

14. (Japan) – Outside directors alone won’t help Japan’s corporate governance

http://www.japantimes.co.jp/opinion/2014/07/11/editorials/outside-directors-alone-wont-help/#.U8AYL_mSxqU

15. (Japan/Tech) – RareJob Inc. hopes to attract as many as 10 million Japanese to its English classes; “We aim to become like a driving school, a place where every person becomes able to drive”

http://www.japantimes.co.jp/news/2014/07/10/business/corporate-business/rarejob-aims-make-10-million-english-speakers/#.U8AYrvmSxqU

16. (China/Tech) – China’s hottest app inspired by devotion to Japanese manga

http://www.japantimes.co.jp/news/2014/07/09/business/corporate-business/chinas-hottest-app-inspired-devotion-japanese-manga/#.U8AY-vmSxqU

17. (Taiwan) – Taiwan is a bad place for entrepreneurs: NDC

http://www.chinapost.com.tw/print/412169.htm

18. (Korea/Tech) – Hyundai Heavy Industries, the nation’s largest shipbuilder, said it has developed a new welding method using robots to build offshore facilities

http://koreajoongangdaily.joins.com/news/article/article.aspx?aid=2991854&cloc=joongangdaily|home|newslist2

19. (Korea) – Words of advice for the beleaguered financial industry in Korea

http://mengnews.joins.com/view.aspx?gCat=050&aId=2991910

20. (China) – Trademark Headaches for Tesla in China

http://blogs.wsj.com/moneybeat/2014/07/10/trademark-headaches-for-tesla-in-china/

21. (Spore) – Bond fever grips Singapore’s rich

http://www.todayonline.com/print/677156

Life

1. 6 Ways To Thrive In Chaos

http://www.forbes.com/sites/jeffboss/2014/07/09/6-ways-to-thrive-in-chaos/print/

2. Rooted In Recession: The Richest Families Whose Businesses Started During the Great Depression

http://www.forbes.com/sites/chloesorvino/2014/07/11/rooted-in-recession-the-richest-families-whose-businesses-started-during-the-great-depression/print/

3. The Forbes Quote Bible: Inspiring, Eye-Opening And Motivational Words For Success

http://www.amazon.com/Forbes-Quote-Bible-Eye-Opening-Motivational-ebook/dp/B00LMOSHOO/

4. Preparing to make big-ticket investment decisions; When the stakes couldn’t be higher, the quality of the decision making can make all the difference. Process improvements can help

http://www.mckinsey.com/Insights/Strategy/Preparing_to_make_big-ticket_investment_decisions

5. How Simon Sinek’s TEDx success made him think deeply about trust; leaders who get the most out of their people are the leaders who care most about their people

http://blog.ted.com/2014/07/10/how-simon-sineks-tedx-fame-made-him-think-deeply-about-trust-issues/

6. Happy 8th anniversary, TED.com! A throwback look at the early days

http://blog.ted.com/2014/06/26/throwback_ted_happy_8th_anniversary/

7. The Iron Auntie: Peng Gang was one of the first women to become a People’s Liberation Army general and was widely recognized as driving force in fighting corruption

http://english.caixin.com/2014-07-11/100702968.html

8. Buyer of brandsExclusive, Cudo shares his 5 rules for a good acquisition

http://www.brw.com.au/p/business/buyer_of_brandsexclusive_cudo_shares_pmvkthRQFAWo1m5wBlplLL

9. Treat ‘crisis manual’ like the Bible

http://www.koreatimes.co.kr/www/news/biz/2014/07/123_160859.html

10. If only the U.S. had stayed out of WWI; Did U.S. intervention in the latter stage of World War I end up in just prolonging the European slaughter?

http://www.japantimes.co.jp/opinion/2014/07/11/commentary/world-commentary/what-if-u-s-had-stayed-out-of-wwi/#.U8AYLfmSxqU

11. Is the present FPA, which now has $30 billion under management, of the same vintage as it was in its uncompromising leader’s heyday?

http://news.morningstar.com/articlenet/HtmlTemplate/PrintArticle.htm?time=11716141

12. How ‘Practical Pessimism’ Can Make You More Successful

http://www.businessinsider.sg/how-pessimism-can-make-you-more-successful-2014-7/#.U8AdxPmSxqU

13. 10 Scientific Breakthroughs That Could Help Us Cheat Death And Live Forever

http://www.businessinsider.sg/how-scientists-are-helping-us-cheat-death-and-live-forever-2014-7/#.U8Ad4_mSxqU

14. What To Do If You Forget Someone’s Name Immediately After Meeting Them

http://www.businessinsider.sg/what-to-do-if-you-forget-someones-name-2014-7/#.U8AeZPmSxqU

15. Kicking Back With Rakuten’s Shin Hasegawa

http://www.businessinsider.sg/kicking-back-rakutens-shin-hasegawa/#.U8Aec_mSxqU

TMT

1. Can A 50-Person Startup Threaten Oracle, IBM, And Microsoft? NuoDB sells a distributed database management system (DBMS) to companies that use SQL databases, operate their data centers in the cloud and want guarantees of great service

http://www.forbes.com/sites/petercohan/2014/07/11/can-a-50-person-startup-threaten-oracle-ibm-and-microsoft/print/

2. CYNK Technology shares suspended by SEC after 25,000% gain in recent days

http://business.financialpost.com/2014/07/11/cynk-technology-shares-halted/

http://business.financialpost.com/2014/07/10/a-social-networking-stock-has-exploded-25000-in-a-few-days-and-its-not-even-clear-if-the-company-exists/?__lsa=200d-db2c

3. Bill Gurley schools NYU professor: Uber will be 25x bigger than you think; Uber driver kidnaps rider, takes him on high speed case.

http://pando.com/2014/07/11/bill-gurley-schools-nyu-professor-uber-will-be-25x-bigger-than-you-think/

http://pando.com/2014/07/10/uber-driver-kidnaps-rider-takes-him-on-high-speed-case-new-background-checks-working-great/

4. How did CYNK, a seemingly fake social network from Belize, become worth billions?

http://pando.com/2014/07/10/how-can-a-seemingly-fake-social-network-from-belize-become-worth-billions/

5. (China/Tech) – Youdao Bets Its 400M Free Dictionary Users Ready to Pay for Online Educational Products

http://technode.com/2014/07/11/youdao-bets-400m-free-dictionary-users-ready-pay-online-educational-products/

6. (China/Tech) – 3 Types of Chinese Internet Companies May Find Opportunities in Overseas Market: Tools, Virtual Products and M-commerce companies

http://technode.com/2014/07/10/3-types-of-chinese-internet-companies-may-find-opportunities-in-overseas-market-ggv-capital-hans-tung/

7. Satya Nadella’s Vision For A New Microsoft; “All strategy gets eaten by culture.”

http://techcrunch.com/2014/07/10/satya-nadellas-vision-for-a-new-microsoft/

8. Here’s Even More Evidence That Apple Plans To Use A Nearly Indestructible Sapphire Screen In The iPhone 6; The iPhone 6′s display could be durable enough to resist scratches even from a knife

http://www.businessinsider.sg/iphone-6-sapphire-display-rumors-2014-7/#.U8AdTPmSxqU

9. Microsoft CEO Is Betting On A New Product You’ve Probably Never Heard Of: Delve

http://www.businessinsider.sg/nadella-bets-heavily-on-delve-2014-7/#.U8AfsfmSxqU

Healthcare

1. Meet The Fitness Band That Shocks You And Publicly Shames You Into Breaking Your Bad Habits

http://www.businessinsider.sg/pavlok-bracelet-2014-7/#.U8AfJPmSxqU

Consumer

1. Italy’s home-appliance maker Indesit has reached an agreement to sell shares equal to 60.4 percent of its capital to American giant Whirlpool for $1.03bn

http://english.sina.com/business/2014/0711/717595.html

Commodities

1. Geologists seek work – any work – as mining boom goes bust

http://www.smh.com.au/business/mining-and-resources/geologists-seek-work–any-work–as-mining-boom-goes-bust-20140711-zt3rn.html

 

Morning Bamboo Insight: 12 Jul 2014

Morning Bamboo Insight: 12 Jul 2014

Macro

1. As Atlantic City’s fortunes fade, casino workers fear bleak future

http://www.reuters.com/article/2014/07/10/us-usa-gambling-new-jersey-idUSKBN0FF0CG20140710

2. How 20 Years Have Transformed the Chemical Industry; The 2013 Chemical Industry Value Creators Report

https://www.bcgperspectives.com/content/articles/process_industries_value_creation_strategy_how_20_years_have_transformed_chemical_industry/print

3. The Crisis on the Border; No one who wants to help has authority, and no one with authority is helping. The horrifying sight of children from Central America sitting in camps at the U.S. border has turned the immigration debate mad

http://online.wsj.com/articles/the-crisis-on-the-border-1405029753?mod=Opinion_newsreel_1

http://online.wsj.com/articles/a-better-border-solution-1405035850

4. Unhappy Fed feels understood by markets

http://uk.reuters.com/article/2014/07/10/column-markets-saft-idUKL2N0PK2E720140710

5. Scoping the new subprime as watchdogs cry ‘bubble’

http://www.reuters.com/article/2014/07/09/us-investment-analysis-idUSKBN0FE0F420140709

6. ‘Anyone with half a brain’ could do buy-to-let; Property tycoons Fergus and Judith Wilson to sell portfolio

http://www.ft.com/intl/cms/s/0/64112204-084e-11e4-9380-00144feab7de.html#axzz37Amj7mro

7. Carlos Slim, Mexico’s mogul of mobile; A new monopoly-busting law could yet prove fruitful for the telecoms tycoon

8. Regulators turn aim on broker research

http://www.ft.com/intl/cms/s/0/6c88e796-083f-11e4-9afc-00144feab7de.html#axzz37Amj7mro

9. BlackRock’s Aladdin: genie not included; Risk management technology is no substitute for investor instinct

http://www.ft.com/cms/s/0/300145d2-0841-11e4-acd8-00144feab7de.html#axzz37ApSSeur

10. Hedge funds miss out on equity surge; “We need markets to be driven more by fundamentals and less by cheap money.”

http://www.ft.com/intl/cms/s/0/41d8a9f6-08fc-11e4-9d3c-00144feab7de.html

11. Gates, Adelson and Buffett Scold Congress on Immigration

http://www.bloomberg.com/news/print/2014-07-11/gates-adelson-and-buffett-scold-congress-on-immigration.html

http://www.nytimes.com/2014/07/11/opinion/sheldon-adelson-warren-buffett-and-bill-gates-on-immigration-reform.html?_r=0

Asia Pacific

1. (Asean) – Cambodia garment workers struggle to survive

http://news.asiaone.com/print/news/asia/cambodia-garment-workers-struggle-survive

2. (Msia) – A day after their operations were deemed illegal, two of the multi-level marketing schemes run by self-proclaimed Chinese millionaire Zhang Jian were raided by the Malaysian authorities

http://news.asiaone.com/print/news/malaysia/crackdown-mlm-schemes

http://news.asiaone.com/print/news/malaysia/management-controversial-chinese-company-denies-it-illegal

3. (Isia) – Fraud fears as Indonesia awaits end to presidential deadlock

http://news.asiaone.com/print/news/asia/fraud-fears-indonesia-awaits-end-presidential-deadlock

4. (China) – 11 Disturbing Charts About The Chinese Economy

http://www.zerohedge.com/news/2014-07-10/11-disturbing-charts-about-chinese-economy

5. (Korea/China) – Is Korean Steel Really Chinese? China Looms Large in a U.S. Decision on Whether to Impose Tariffs on South Korean Steel

http://online.wsj.com/articles/is-korean-steel-really-chinese-1405020098?mod=WSJAsia_hpp_LEFTTopStories

6. Catholics in Business Wrestle With Pope Francis’ Attacks on Capitalism; ‘If the Pope’s Message Is Going to Be Effective, It Has to Be Realistic’

http://online.wsj.com/articles/catholics-in-business-wrestle-with-pope-francis-attacks-on-capitalism-1405016794?mod=Business_newsreel_3

7. (Myanmar) – Burma’s Struggle to Stay Ancient; As tourism skyrockets, Burma needs to prioritize preserving its heritage

http://online.wsj.com/articles/gluckman-burmas-struggle-to-stay-ancient-1405011609

8. (India) – Modi Blueprint Lacks Bold Designs for India

http://online.wsj.com/articles/heard-on-the-street-modi-blueprint-lacks-bold-designs-for-india-1405004372

http://online.wsj.com/articles/indias-limited-budget-1405011937

9. (Japan) – Japan’s GPIF allocates to smart beta

http://www.top1000funds.com/profile/2014/07/11/japans-gpif-allocates-to-smart-beta/print/

10. (Msia) – The whereabouts of the self-proclaimed Chinese millionaire Zhang Jian remain unclear even after multiple raids have been conducted on his MLM offices in the country

http://www.thestar.com.my/News/Nation/2014/07/11/Has-millionaire-left-the-country-Zhangs-whereabouts-remain-unclear/

11. (Japan) – Japanese firms near crisis point as labour shortage deepens

http://uk.reuters.com/article/2014/07/11/uk-japan-economy-labour-idUKKBN0FF2H220140711

12. (China) – Stop indulging China’s banks or risk another crisis

http://www.ft.com/intl/cms/s/0/a42ca6c0-078a-11e4-b1b0-00144feab7de.html#axzz37ApSSeur

13. (Philippines) – Philippines’ Aquino Keeps Budget Chief Amid Corruption Scandal

http://www.reuters.com/article/2014/07/11/us-philippines-corruption-idUSKBN0FG0CE20140711

14. (Thai) – Thai junta to share power with new government despite international calls for a return to full civilian rule

http://www.channelnewsasia.com/news/asiapacific/thai-junta-to-share-power/1255232.html#

15. (Japan) – Japan’s pachinko parlor operators take in $187 billion in bets annually. A decline has them eyeing casinos

http://www.businessweek.com/articles/2014-07-10/japans-pachinko-operators-mull-casino-alliance-to-stem-decline

16. (Japan/Tech) – Nintendo slashes earnings outlook to a loss on grim sales; Since October 2007, when its market capitalisation peaked amid excitement over the new Wii console, Nintendo has lost almost 80 per cent of its equity value

http://www.ft.com/intl/cms/s/0/3f5e0db6-7f58-11e3-b6a7-00144feabdc0.html#slide0

17. (India) – The success of a loan applicant in India hinges overwhelmingly on the language he speaks

http://qz.com/229913/the-success-of-a-small-loan-applicant-in-india-hinges-overwhelmingly-on-the-language-he-speaks/

18. (China/Tech) – Local investors miss out on sizzling Chinese tech stocks

http://fortune.com/2014/07/11/local-investors-miss-out-on-sizzling-chinese-tech-stocks/

19. (China) – Xi Jinping’s corruption purge is pitting China’s state-owned giants against each other

http://qz.com/233252/xi-jinpings-corruption-purge-is-pitting-chinas-state-owned-giants-against-each-other/

Life

1. Shorter sleep may speed brain aging

http://www.reuters.com/article/2014/07/10/us-brain-aging-sleep-idUSKBN0FF23H20140710

2. PBS Interview with Peter Lynch

http://www.pbs.org/wgbh/pages/frontline/shows/betting/pros/lynch.html

3. How Does Creativity Really Work? BCG’s Alan Iny Discusses the Implications of Creativity on Business

https://www.bcgperspectives.com/content/interviews/innovation_alan_iny_how_creativity_really_work/print

4. The Daily Routines Of 26 Of History’s Most Creative Minds

http://www.fastcodesign.com/3032874/infographic-of-the-day/the-daily-routines-of-26-of-historys-most-creative-minds?partner=newsletter

5. How DARPA’s Brain Chip Could Restore Lost Memories

http://www.fastcompany.com/3032898/healthware/how-darpas-brain-chip-could-restore-lost-memories?utm_source=Fast+Company&utm_campaign=4ac9eb6915-Fast+Company+Daily+Newsletter&utm_medium=email&utm_term=0_74b5a87bf7-4ac9eb6915-235239941

6. Crack Down on Scientific Fraudsters; Millions of dollars in government grants are misused for fake results

http://www.nytimes.com/2014/07/11/opinion/crack-down-on-scientific-fraudsters.html?emc=edit_th_20140711&nl=todaysheadlines&nlid=36114517

7. Game Theory Secrets for Parents; Can’t get your children to eat their vegetables or clean up their toys? Game theory offers some solutions

http://online.wsj.com/articles/game-theory-secrets-for-parents-1405005848?mod=WSJ_hpp_sections_lifestyle

8. Eileen Ford, Founder of Ford Model Agency, Dies; Known for Her Eye for Talent, Ford Launched the Careers of Numerous Supermodels

http://online.wsj.com/articles/eileen-ford-founder-of-ford-model-agency-dies-1405042849?mod=WSJ_hpp_sections_news

9. How Fashion Legend Issey Miyake Stays Creative; At 76, Miyake is still trying to make people think critically about design

http://www.fastcodesign.com/3032857/innovation-by-design/how-fashion-legend-issey-miyake-stays-creative

10. How “Dawn Of The Planet Of The Apes” Raised The Blockbuster Bar With Emotion, Realism

http://www.fastcocreate.com/3032789/how-dawn-of-the-planet-of-the-apes-raised-the-blockbuster-bar-with-emotion-realism?partner=newsletter

11. Lego: King of the castle; Focus on detail and digital expansion have helped the Danish toymaker thrive in a tough market

http://www.ft.com/intl/cms/s/2/ee8941f8-01c5-11e4-ab5b-00144feab7de.html#axzz37Amj7mro

12. Moshi Monsters creator Michael Acton Smith to step down; Entrepreneur struggles with operational demands atop Mind Candy

http://www.ft.com/intl/cms/s/0/8e3895ae-0852-11e4-9380-00144feab7de.html

13. Many levels of mistrust: Multi-level marketing schemes have made many millionaires who live it up. But for every one of those success stories, there are many more who have lost their life’s savings

http://www.thestar.com.my/Opinion/Columnists/Why-Not/Profile/Articles/2014/07/11/Many-levels-of-mistrust/

14. This is Bill Gates’ favorite business book of all time

http://qz.com/233147/bill-gates-favorite-business-book-business-adventures/

15. Wait. You can trademark the layout of a store?

http://qz.com/232971/wait-you-can-trademark-the-layout-of-a-store/

16. Unpaid taxes, guns, and potential bankruptcy: The bitter battle for AriZona iced tea; The recently concluded six-week trial between the beverage company’s founders shows how a successful business relationship can go so, so wrong

http://fortune.com/2014/07/10/arizona-iced-tea/

17. Restore Trust at Work with These 3 Words: We are allies

http://blogs.hbr.org/2014/07/restore-trust-at-work-with-these-3-words/

18. Why Marketing Needs More Introverts

http://blogs.hbr.org/2014/07/why-marketing-needs-more-introverts/

19. How to Avoid Collaboration Fatigue

http://blogs.hbr.org/2014/07/how-to-avoid-collaboration-fatigue/

TMT

1. Internet Of Things: Shifting From Proprietary To Standard

http://www.valuewalk.com/2014/07/internet-of-things-iot

2. This practically ancient Internet technology supports speeds 1,000 times the national average

http://www.washingtonpost.com/blogs/the-switch/wp/2014/07/10/this-practically-ancient-internet-technology-supports-speeds-1000-times-the-national-average/

3. Forget Sun Valley, Media Moguls Should Take Latin Road Trip

http://online.wsj.com/articles/forget-sun-valley-media-moguls-should-take-latin-road-trip-heard-on-the-street-1405026972

4. Fraud lurks in shadows of changing digital advertising landscape

http://www.ft.com/intl/cms/s/0/85492590-0801-11e4-9afc-00144feab7de.html#axzz37AsfvHdX

5. Crowdsourcing website shakes up car repair market

http://www.ft.com/intl/cms/s/0/4f1d7a7e-0758-11e4-b1b0-00144feab7de.html#axzz37AsfvHdX

6. (Tech) – The downfall of a Spanish corporate icon took place while the country was still sleeping, in the early hours of Sunday morning.; Jenaro García Martín to face court over Gowex collapse

http://www.ft.com/intl/cms/s/0/f0c25ffa-08f4-11e4-9d3c-00144feab7de.html#axzz37AsfvHdX

7. 3D printing starts to add up for GE Aviation

http://www.ft.com/cms/s/0/1736cd0c-fe3b-11e3-b4f1-00144feab7de.html#axzz37AuTwto7

8. Happy birthday, iTunes App Store. Apple’s App Store turns six today, and now offers consumers over 1.2 million apps, which have been downloaded 75 billion times

http://techcrunch.com/2014/07/10/the-app-store-six-years-later/

Healthcare

1. Mental illness is our most pressing health problem; Given the considerable economic costs to society, treatment would pay for itself

http://www.ft.com/intl/cms/s/0/1bd87d6e-076f-11e4-81c6-00144feab7de.html#axzz37ApSSeur

2. ‘Welcome packs’ help keep Malawi’s cancer patients in hospital

http://www.ft.com/cms/s/2/9612d9ca-68dd-11e3-996a-00144feabdc0.html#ixzz37Av0I7uy

Consumer

1. The Power Menu, Taco Bell’s Appeal to Protein Junkies

http://blogs.wsj.com/corporate-intelligence/2014/07/10/taco-bell-to-beef-up-offerings-on-cantina-bell-menu/?mod=WSJ_hpp_sections_management

2. Magnolia CEO: Crumbs May Die, But the Cupcake Lives On

http://blogs.wsj.com/corporate-intelligence/2014/07/10/magnolia-ceo-crumbs-may-die-but-the-cupcake-lives-on/

3. Crumbs Cupcake Chain: “It wasn’t really a bakery, it was retail points of sale that sold baked goods. There was no experience to be had in the stores or product.”

http://online.wsj.com/articles/investors-circle-shuttered-cupcake-chain-crumbs-1405011862

4. Eating out threatens supermarkets’ bread and butter

http://www.ft.com/intl/cms/s/0/7b292cfa-085f-11e4-9380-00144feab7de.html

Investing Process

1. Tales from the Bretton Woods

http://www.nber.org/papers/w20270.pdf

Commodities

1. ICE at pains to take cotton global; Malaysia’s import requirements have become a sticking point

http://www.ft.com/intl/cms/s/0/113054a4-08c8-11e4-9d3c-00144feab7de.html#axzz37ArTHiBm

2. Demand for agricultural products is set to increase at a slower pace over the next decade, but demand for protein-rich foods will rise substantially as consumers in the developing world adopt a more western diet

http://www.ft.com/intl/cms/s/0/b1fc9cf2-08dd-11e4-9d3c-00144feab7de.html#axzz37AsfvHdX

Energy

1. The Fight to Export U.S. Oil

http://www.businessweek.com/articles/2014-07-10/u-dot-s-dot-oil-export-ban-the-debate-heats-up

<span>%d</span> bloggers like this: