Evening Bamboo Insight: 25 Jul 2014

Evening Bamboo Insight: 25 Jul 2014


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

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

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

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

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

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

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

Asia Pacific

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

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

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

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

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

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

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.”

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

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

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

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

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

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

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

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

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

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


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

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

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)

4. Don’t 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

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

7. 7 Everyday Phrases With Sinister Origins

8. 17 Things Successful People Never Say

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

10. 12 Simple Ways To Be More Interesting


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.

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

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

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

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

6. Facebook is no longer a social network. It’s the world’s 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

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

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

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


1. Ford’s Epic Gamble: The inside story

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

3. Loblaw’s 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)

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

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


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

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

3. 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

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

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

Investing Process

1. Do value stocks protect in market corrections?

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


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


1. Securities Lending, Empty Voting and Corporate Governance




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:

  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 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

Morning Bamboo Insight: 25 Jul 2014

Morning Bamboo Insight: 25 Jul 2014


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

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.

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

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

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

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.

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

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

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

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

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

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

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

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

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

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

15. (India) – India’s Time For Growth

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

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

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|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

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

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

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

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

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


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

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

3. This Mindset Can Prevent You From Succeeding At Work

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

5. How ‘Moral Licensing’ Ruins Your Diet, Savings, And Long-Term Goals

6. Meet The 22-Year-Old Student People Are Calling ‘The Italian Mark Zuckerberg’

7. 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

9. A Motivational Speech From The Greatest Entrepreneur, Muhammad Ali

10. 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

12. 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

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

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


1. (Australia/Tech) – Australia’s Seek Takes Online Job Search Abroad (Seek Zhaopin)

2. (India/Tech) – KPIT: An Indian Tech Company With An Auto Focus

3. Open Source and the Challenge of Making Money

4. (China/Tech) – China set to retain position as top e-commerce market

5. China/Tech) – Xiaomi faces hurdles on path to international expansion


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


1. Let Our Oil and Gas Go: America Should Rescind the Ban on Crude-Oil Exports

2. Four reasons why US fracking could turn out to be a bubble


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