Daily Bamboo Innovator Insight: Sun 30 Nov 2014 – Small Victories: Spotting Improbable Moments of Grace; STARTUP GOD PAUL GRAHAM: Mean People Fail


STARTUP GOD PAUL GRAHAM: Mean People Fail: BI, PaulGraham

Hidden gems in our midst: We need to look at things and people not only with our eyes, but with our heart. Star

This Man Was Supposed To Become Steve Jobs 2.0 — Here’s What Happened Instead: BI

Mohnish Pabrai’s Million-Dollar Advice For A 12-Year-Old Investor: Forbes

In Praise of Melancholy and How It Enriches Our Capacity for Creativity: BrainPickings

Anne Lamott on Grief, Grace, and Gratitude; On the grace of redefining ourselves and redefining okayness when life throws us its merciless curveballs. BrainPickings

Voltaire on How to Write Well and Stay True to Your Creative Vision: BrainPickings

Lost in Translation: An Illustrated Catalog of Beautiful Untranslatable Words from Around the World: BrainPickings


Small Victories: Spotting Improbable Moments of Grace: Amazon

Investing Process

Stockpickers’ Blues: A leading market analyst finds that no particular style of stock selection is long successful in the current market. Barron’s

Greater China

Taiwan’s ruling Nationalist Party suffered a landslide defeat in local elections Saturday, prompting the resignation of the premier and leaving the party weakened before a presidential vote in two years. WSJ


How to Build an Empire, the Netflix Way; With “Marco Polo,” its lavish new series, the streaming service is placing one of its biggest bets yet on global expansion. NYTimes

Netflix CEO: Broadcast TV Will Die Within 16 Years; “It’s kind of like the horse, you know, the horse was good until we had the car”: BI

Lenovo’s $100 Billion Gambit; Yang Yuanqing built Lenovo into the world’s largest PC maker. His next target? Smartphones. Watch out Samsung, Apple. Barron’s

Uber needs rider goodwill to prevail in the many markets where it is facing significant regulatory resistance; Uber’s perceived lack of ethics is making it very difficult to rationalize advocating for them or to even ride with them: Stratechery

The Yellow Cab Bubble Pops: Taxi Medallion Prices Tumble 17% From Last Year’s Record Highs: ZeroHedge

Daily Bamboo Innovator Insight: Sat 29 Nov 2014 – Canadian Natural Resources chairman sees oil touching US$30 a barrel; Korea start-up leaders launch a fund with personal money to give back; the five IT legends (Kakao, NHN, Nexon, NCSoft, Daum) were also friends in college


Apple and the crisis of disruption; Clayton Christensen’s theory about what determines success or failure in high tech has to be rethought: Fortune

4 CEOs Who Are Making Frugal Innovation Work: HBR

Magnus Carlsen, an unlikely chess master; He moonlights as a model, naps on the job, skips homework – and snuffs out every rival: FT

Fee-Based Libraries Were Like Netflix for Books, 200 Years Ago: All-you-can-read lending services helped democratize reading. WSJ

Fishmongers Inspired This Practice That Boosts Employee Morale Around The World: BI

James Watson selling Nobel prize ‘because no-one wants to admit I exist’; World-famous biologist said he is selling the Nobel Prize medal he won in 1962 for discovering the structure of DNA because he has been ostracised and needs the money: Telegraph

DNA and the Randomness of Genetic Problems; The miraculously intricate process that transforms a few strands of DNA into a living creature is the product of blind biological forces. It can go wrong: WSJ

Isis fighters crave snacks and gadgets of the west they disdain; “They govern us in the name of religion, living the good life while everyone else suffers”: FT

How the Turkey Became the Thanksgiving Bird: WSJ

UK family businesses face succession crisis; Two-thirds of British family businesses could be sold off because there’s no one left to take over, a landmark survey report has found: Telegraph

Take a look at Yourself in the Leadership mirror: Forbes

Last of the traditional Dha sword makers in South East Asia: AsiaOne


Superintelligence: Paths, Dangers, Strategies: Amazon

Exponential Organizations: Why new organizations are ten times better, faster, and cheaper than yours (and what to do about it): Amazon

Bending Adversity: Japan and the Art of Survival : Amazon

Van Goh’s Ever Yours: The Essential Letters;  [Van Gogh’s] descriptions of his own paintings are poetically evocative, and his long, detailed, emotional outpourings offer insight into his suffering, loneliness and dreams: Amazon

FT Best books of 2014: FT

Investing Process & Research

How to X-Ray Your Portfolio; Online Tools Can Help Investors Review and Analyze Their Stock and Fund Holdings: WSJ

As Indexes Soar, Active Stock Pickers Can’t Get Off the Ground: WSJ

The Trouble With Hot Stocks; Picking Heavily Traded Shares Is No Guarantee of Good Results: WSJ

Dash for Cash: Month-End Liquidity Needs and the Predictability of Stock Returns; return reversals are stronger in countries where the mutual fund ownership is large: SSRN, ValueWalk

Greater China

China Said to Order Companies to Check Risks in Commodity Trades: Bloomberg

Dairy industry in China is utterly stagnant: WantChinaTimes

China Plan for Deposit Insurance Raises Worries About Bank Failures; Plan Could Place More Deposits With Big Banks That Are Seen as Too Big to Fail: WSJ

Graphics: China’s Overworked Workers: Caixin

The Disintegration of Rural China: NYTimes

Wuhan – China’s entertainment mecca: BT

China Motorists Exceed 300 Million as Cities Struggle: Bloomberg

Nowhere to Pun Amid China Crackdown: WSJ

China’s Transition Marks a New Reality for Emerging Markets: PI


Mahindra & Mahindra and the Power of Chance; M&M showed that if an organisation has the stomach for calculated risks and a focus on product development, results will often follow: Forbes

Dipping Into India, Dunkin’ Donuts Changes Menu; Adapting to Local Tastes, Chain Downplays Doughnuts, Adds Veggie Burgers: WSJ

India Allows Supermarkets, Mobile-Phone Companies to Start Banks: Bloomberg

Japan & Korea

Keep Korean conglomerates creative: JoongAng

As Japanese Bankruptcies Soar, Goldman Warns “Further Yen Depreciation Could Be A Net Burden”: ZeroHedge

Korea start-up leaders launch a fund with personal money to give back; the five IT legends (Kakao, NHN, Nexon, NCSoft, Daum) were also friends in college: JoongAng

Park turns to nostalgia politics; Park appears to be tugging the older generation’s heart strings by doing things that prompt memories of her youth and her father, the late President Park Chung-hee: KoreaTimes

Staff fear the chop in Samsung Electronics annual reshuffle: Reuters


Oil Price Slump May Force Indonesian Govt to Evaluate Fuel Subsidy: JGlobe

Impeachment process begins for ousted Thai PM Yingluck: Reuters

Slow Pace of Vietnam’s Privatizations Worries Investors; Vietnam Airlines IPO Attracts No Interest From Foreign Investors: WSJ

Indonesia’s ‘Toothless Mandate’ for Biofuel Hurting Palm: Bloomberg


Standard Chartered hit with first S&P downgrade in 20 years: Reuters

ECB vice-president warns of bond-buying risks as investors search for yield in an environment of ultra-low interest rates: FT

Superstar investor David Einhorn is raising cash for the first time since 2012 following three straight years of lagging performance – and some customer redemptions from his $10 billion hedge fund, Greenlight Capital: Reuters

Hedge-fund managers are increasingly persuading investors to lock up their money for longer-in many cases more than double the typical one-year period-and dangling lower fees to close the deal: WSJ


Electricity-free air conditioning: A cool idea; New materials may change the way temperatures are regulated: Economist

Under Pressure From Uber, Taxi Medallion Prices are Plummeting; “I’m already at peace with the idea that I’m going to go bankrupt,” said Larry Ionescu, who owns 98 Chicago taxi medallions. NYTimes

Shopping on a Phone Is Still Uncommon but Growing Fast: NYTimes

Cashless Society? It’s Already Coming: NYTimes

Energy & Commodities

Here Are The Breakeven Oil Prices For Every Drilling Project In The World: BI

Canadian Natural Resources chairman sees oil touching US$30 a barrel; Alberta big oil to feel the squeeze as world’s cheapest oil gets cheaperL FP

Billions wiped off energy shares as investors rush for exit: Reuters

OPEC’s Twist of Faith for Oil Investors; Fallout From Oil’s Rout Extends Beyond Producers: WSJ

Oil Prices Are Plunging. Here’s Who Wins and Who Loses. NYTimes

Free Fall in Oil Price Underscores Shift Away From OPEC: NYTimes

Energy Quakes as OPEC Stands Pat; Oil Stocks and the Currencies of Major Oil-Producing Nations Tumble: WSJ

The Geopolitical Impact of Cheap Oil: Project Syndicate

Is oil price plunge good or bad for global economy? Most of them would require a price of above US$80 per barrel to manage their budgets and some would need oil to be priced above US$100. BT

Rio Tinto, BHP Chart Divergent Courses; Narrow Commodity Focus or ‘Cherry-Pick’ From Range of Projects?: WSJ

Consumer & Others

Microbreweries shake up European market; Number of start-ups rises as drinking habits change: FT

Pie Face collapse: high rents, ‘expensive and unfashionable’ food blamed: BRW

Good News For Girls: Disney’s ‘Frozen’ Ices Out Barbie To Become Top Toy: Forbes

Buyout Firms Said Vie for World’s Biggest Cigar Company: Bloomberg

Daily Bamboo Innovator Insight: Fri 28 Nov 2014 – China has ‘wasted’ $6.8tn in investment; Record China Downgrades Test PBOC as More Defaults Seen


Making a success of succession: Companies are generally not good at changing their chiefs: Economist

Every damn day: how Milan Direct founder Dean Ramler keeps the passion for his business alive: BRW

Ways to pick the smart students; Cambridge’s website states that the school wants students who think like Newton, not those who know Newton well: JoongAng

Charlie Munger and Niederhoffering the Investors: Sova

How Mark Cuban, Richard Branson, And Other Entrepreneurs Started Their First Ventures As Kids: BusinessInsider

The Best Advice I Wish I’d Had Sooner by Marillyn Hewson, Lockheed Martin, Chairman, President and CEO: LinkedIn

13 Bizarre Sleeping Habits Of Super Successful People; Leonardo da Vinci’s sleep schedule included 20-minute naps every four hours. This unconventional sleep cycle may have given the artist/inventor/scientist more awake time: BusinessInsider

The joy of discovery for plant hunters: FT

Do the Jesuits hold the answer for misfiring multinationals? The order’s structure has attracted business school plaudits: FT

Insights From The Most Successful Investors In History: Ritholtz

How the Civil War Created Thanksgiving: NYTimes

Staff motivation key to raising productivity, more so than innovation: CFOs: CNA

How Much Trickery Is Legal on Wall Street? A Jefferies trader convicted of defrauding investors out of $2 million says he was just doing what any salesman does.: BW

C.S. Lewis and the Crises of Belief; Despite tragedies, the scholar and ‘Chronicles of Narnia’ author came down on the side of faith. WSJ

When Debt Is Opportunity: An ex-con-turned-collector notes that it is common to work in a few stolen accounts with legitimate ones to sweeten the return: WSJ

Greater China

China has ‘wasted’ $6.8tn in investment, warn Beijing researchers: FT

Record China Downgrades Test PBOC as More Defaults Seen: Bloomberg

Going Online to Borrow Down Payments in China; Online borrowing for down payments may reach 20 billion yuan this year and could climb to 1.2 trillion yuan a year.: BW

In Hong Kong, Tycoons and Fishermen Determine Who Leads the City: Bloomberg

Higher education: A matter of honours; China is trying to reverse its brain drain: Economist

Inheritance law: A lack of will power; Inheritance law needs to catch up with economic and social change: Economist

Prudential Betting China Will Trim Down State-Owned Giants: Bloomberg

Ting Hsin may be forced to liquidate its assets as financial pressure mounts: ChinaPost

Jack Ma’s e-commerce empire looks west to Xinjiang: WantChinaTimes

Formosa Group chairman and co-founder Wang Yung-tsai dies, aged 93: WantChinaTimes

The Next Phase of China’s Financial Deepening: Project Syndicate

The Ambition Explosion: China’s future may be determined as much by its spiritual struggle as by its new capitalist ethos: NYTimes

Beijing shop bans…. Chinese customers; Clothing shop in Chinese capital has angered domestic customers by banning them from entering the store: Telegraph

Open Sesame: Alibaba and the 16 Tiger Cubs : Novus


Budget carriers in India: In short-haul for the long run; Prospering in India’s aviation market requires patience and discipline: Economist

An inside tale of how Narendra Modi won the Indian election in 2014: Economist

Car-Sharing Startups Hit the Road in India: BW

Pressure Grows for Rajan to Follow China Rate Cut as India Slows: Bloomberg

Japan & Korea

Electricity firms in Japan: Solar shambles; Japan has failed to learn from Germany’s renewable-energy mess: Economist

South Korean President goes overboard in use of ‘scary’ metaphors; a good leader is one who moves people’s hearts with gentle words and strong action, not one who scares them. AsiaOne

What Sony Can Learn From Samsung: Bloomberg

‘Creative Korea 2014’ showcases potential of creative economy: Maeil

Heir apparent at LG is made a V.P.: JoongAng

Nongshim, Korea’s largest maker of instant noodles, is seeking to export its flagship product Shin Ramyeon to over 100 countries next year by capitalizing on the growing popularity of “K-food” overseas. KoreaTimes

Leadership change in full swing at Samsung, Hanwha; The so-called big deal between Samsung and Hanwha Group is evidence of a leadership changeover from fathers to sons at the two chaebol. KoreaTimes

There is no telling how the latest transaction ― the largest since the Asian financial crisis ― will work out for both Samsung and Hanwha.: KoreaTimes

PayAll, an online payment service developed by BC Card, is drawing a growing number of users for its simplicity and convenience as it doesn’t require a public key or Active-X tool for e-transactions.: KoreaTimes

Mutual funds will be allowed to match Samsung’s market weight on (15% of KOSPI) but are not allowed to overweight, which is not great for Samsung’s stocks: Barron’s


Singapore Wealthy Stung as Crude Rout Sinks Bonds; Singapore’s wealthiest residents may be regretting bank rolling the island’s oil industry: Bloomberg

Singapore central bank says it might do more to contain household debt; MAS lays out risks for Singapore private debt: Reuters

Private home prices still high, despite falls: MAS: TODAY

Vietnam yields cautionary tale over Chinese investment: FT

Can man-of-the-people Widodo micromanage 240 million Indonesians? Reuters

In Thailand, Firms Add Apprentice Programs; Manufacturers Address Skilled-Labor Shortage; ‘We Can’t Wait,’ BMW Executive Says: WSJ

Bumi to have global restructuring after court protection: JPost

Misuse of inside info on the rise as companies try to raise capital in on the Stock Exchange of Thaland and the Market for Alternative Investment: SEC: Nation

President Joko Widodo wants his ministers and other officials to adopt a humble lifestyle, asking them to stop throwing massive wedding parties and not show off their wealth: JGlobe

Indonesia’s palm revolution runs off track for smallholders: Reuters

A New Vision for Singapore; Treating social values and morality as commodities is a dangerous game. WSJ


Low-calibre munitions: Fears of a currency war in Asia are overblown: Economist

Reinsurance revolution changes landscape of risk management: FT

The good, the bad and the ugly of emerging market debt: FT

In parched bond markets, sparks are dangerous: FT

An Inclusive Emerging Economy, With Africa in the Lead; Village based savings groups now reach about 10 million people in more than 60 countries, many in remote rural areas without any other financial services. NYTimes

America’s Best Small Companies 2014: Forbes

ECB’s negative interest rates under fire in Germany: TheStar

New Entrepreneurs Find Pain in Spain; Startups Face Cratered Consumer Market, Scarce Capital, Dense Bureaucracy and Culture Averse to Risk: WSJ


Apple’s $100 Billion Waste: Tim Cook’s Single Biggest Mistake As CEO: Forbes

Myanmar Digital Startup NEX Gets 2nd Round Funds From Blibros; Ye Myat Min dropped out of Singapore Management University to work in Singapore’s Web world.: Forbes

Trustbusting in the internet age: Should digital monopolies be broken up? European moves against Google are about protecting companies, not consumers: Economist

How Apple Becomes A $1 Trillion Company: BusinessInsider

Wikipedia founder to float charity mobile phone company The People’s Operator for £100m: Telegraph

Amazon: We are not trying to destroy Royal Mail: Telegraph

Willy Wonka-style elevator uses magnets to move sideways; German company ThyssenKrupp says its revolutionary new design means you will never wait more than 30 seconds for a lift: Telegraph

What Airbnb Gets About Culture that Uber Doesn’t: HBR

The Startups of Nazareth: BW

These Apps Mean You’ll Never Wait in Line for Coffee Again; Mobile order-ahead apps cost stores about $25,000 to implement but increase traffic by as much as 30 percent.: BW

Europe escalated its war against U.S. technology superpowers to rein in the growing influence : WSJ

Internet-connected device sector deals accelerating: Reuters


The price of failure: A startling new cost estimate for new medicines is met with scepticism: Economist

China Nepstar: A Bitter Pill For Investors: China’s largest drugstore chain afflicted by high costs and online competition. Prognosis: negative.: Barron’s

Energy & Commodities

Oil price slide leaves energy bond investors facing zero returns: FT

“There Will Be Blood”: Petrodollar Death Means A Liquidity And Oil-Exporting Crisis On Deck: ZeroHedge

Alberta Producers With World’s Cheapest Oil Face Cascading Woes: Bloomberg

Ready or not: oil exporters facing low prices; A mixture of ants and grasshoppers with some having learned the virtues of hard work: FT

Opec members flounder in a flood of cheap oil; The cartel’s weakness is welcome now, but a warning for the future: FT

Tumbling crude oil prices are casting a shadow over almost $US70 billion ($82.3 billion) of natural gas projects planned in Australia, threatening what’s billed as the second leg of the nation’s energy boom. TheAge

Terence Corcoran: How markets finally beat OPEC’s oil-price chokehold: FP

OPEC’s Weapon of Mass Inaction; It will likely be years before we see triple-digit oil again: WSJ

Consumer & Others

Low-cost airlines: Making Laker’s dream come true; Low-cost airlines have revolutionised short-haul flying. Now, after several failed attempts, they are poised to do the same on longer routes: Economist

SABMiller’s Coca-Colanisation of Africa: FT

How the once high-flying fast-food chain. Pie Face cooked its own goose: TheAge

Munchery hopes stone-cold logistics will help it win the war over the evening meal; Tri Tran is taking the middle road between delivering it raw and rushing it over to you hot: Forbes

Spanx for Your Face: BW

Roy Choi Wants to Reinvent Fast Food; The food truck pioneer is betting on a tofu-laced burger: BW

Daily Bamboo Innovator Insight: Thurs 27 Nov 2014 – Asia’s Aging Tech Leaders Struggle to Find Successors: Many Now-Global Firms Are Still Run Like Family Businesses, Making Handoffs Difficult


What To Do When You Have Too Much To Do And Too Little Time: FastCo

What Maslow’s Hierarchy Won’t Tell You About Motivation: HBR

What Abraham Lincoln Can Teach You About Being a Better Investor: OldSchool

The New Habit Challenge: How To Trick Yourself Into Accomplishing Your Goals: FastCo

Steal Without Shame: The Legend of Bagger Vance was stolen from the Bhagavad-GIta; “I just changed Arjuna from a troubled warrior to a troubled golf champion—and changed Krishna from his charioteer to his caddie”: Steve Pressfield

When G.M. Was Google: The art of the corporate devotional. NewYorker

Back to the Future: When the CEO Returns: K@W

3 Subtle Differences Between Workaholics and High Performers: BusinessInsider, LinkedIn

Here’s An Exciting New Clue About Why Some People Stay Sharp As They Age: BusinessInsider

Billionaire Clive Palmer created ‘sham’ document to cover up dishonest use of funds, court told: BRW

Pilgrims and the Roots of the American Thanksgiving; English settlers of the 17th century were a diverse lot, and they became Americans despite themselves: WSJ

What Managers Really Need from Academics: HBR

A Chief Innovation Officer’s Actual Responsibilities: HBR

Too many ‘thought leaders’; These days everyone purports to be an expert – but are they really? “A real thought leader changes a paradigm or way we think about something at a fundamental level” : TheAge

Stephen Hawking: How He Speaks & Spells: The technology that helped resurrect the life of Stephen Hawking after the physicist was stricken by Lou Gehrig’s disease. EETimes

Gut check: how vultures dine on rotting flesh, and like it: Reuters

Investing Process

Spot spin-off candidates to profit from activist activities: FT

Greater China

China Gerui Advanced Materials, a Chinese specialty steelmaker, was sued by an investor for spending more than $230 million on antique porcelain and the share price decline that followed: Bloomberg

China Says West Hampering Anticorruption Efforts; China Says Western Prejudices Blocking Efforts to Retrieve Fugitives Involved in Corruption Cases: WSJ

Fonterra learns from a corporate health scare in China: FT

Why Boston’s $29 billion man avoids China: Bloomberg

Fonterra learns from a corporate health scare in China: FT

Buzz Over Hong Kong Startups Gets A Reality Check; All It Takes Is 1 Hong Kong Startup To Break Through: Forbes

Why Venture Capital Is Declining In High-Tech Taiwan: Forbes

Chinese VIPs Flee Vegas Baccarat Amid Crackdown at Home: Bloomberg

Beijing watches anxiously as Taiwan readies for local polls: AsiaOne

How China’s shadowy agency is working to absorb Taiwan: Reuters

In Taiwan, a Retirement Delayed 17 Years; Bruce Cheng of Delta Electronics, the world’s largest maker of electronics power supplies, and the current chairman Yancey Hai, discuss a management transition more than a decade in the making: WSJ

Banking tricks blunt China’s drive to increase lending: Reuters


Alibaba Looks to Invest More in India: WSJ

Snapdeal: Connecting the Dots between Demand and Supply in India; Snapdeal co-founder Kunal Bahl discusses the company’s unique business model. K@W

Japan & Korea

Korea needs activist investors: JoongAng

The saving of Hynix; The Hynix turnaround can provide a solution to the entire lethargic Korean manufacturing sector: JoongAng

The way ahead:  Samsung Group has decided to sell off four subsidiaries in the petrochemicals and defense industries to Hanwha Group to focus on its core areas of competitiveness: JoongAng

Samsung’s affiliate sales intensify speculation about succession; Affected Samsung employees wary about future: JoongAng

IKEA’s entry into Korea; The truth is that Korean consumers, especially at the higher end of the spectrum, have created a strange market where overpricing is actually an effective marketing strategy. KoreaTimes

Asia’s 13% Carry Return Lures Record Japan Funds Amid Yield Hunt: Bloomberg

IKEA’s entry into Korea; The truth is that Korean consumers, especially at the higher end of the spectrum, have created a strange market where overpricing is actually an effective marketing strategy. KoreaTimes

Tabelog.com’s customer-generated restaurant reviews prompt food fight: JapanTimes

Nearly 50% of Japanese firms suffering due to weaker yen, online poll suggests: JapanTimes

Samsung’s Heir Makes Mark With $8 Billion of Deals: Bloomberg

Woowa Brothers, a South Korean startup that operates the country’s most popular food-delivery mobile service, attracted $36m in funding; processed about 4 million food-delivery orders from 145,000 registered restaurants: WSJ

Samsung to Buy Back $2 Billion Worth of Shares, First Such Move in Seven Years: WSJ

Toyota Aims to Bring Crash-Prevention Technology to Mainstream; Camera, Radar Would Help Detect Objects Near Car; Automated Braking Also Offered: WSJ


Singapore tests its success; Demographic shifts pose fresh challenges: FT

Philippine Economy Expanding Like It’s 1950s on Consumption Boom: Bloomberg

Golkar Split, a Proxy Fight for Leadership: JakartaGlobe

Thailand’s elections could be delayed until 2016: BBC

Singapore Civil Servants Win or Lose Bonuses on State of Economy: Bloomberg

Jets Depart Saigon Belly Full as Samsung Spurs Cargo Boom: Bloomberg


A Bearish Hedge Fund Bets Against the Bulls and Still Profits: Bloomberg

Global Investors Plow Cash Into Asian Stocks as Year-End Nears: WSJ

How to Build an ‘African Model’ for Success in Manufacturing: K@W

Gatekeepers digging deeper into smart beta strategies: FT

‘Vulture’ hedge funds set to target unprotected government debt: FT

Many wealth managers and private banks have been failing to make clear when they are placing customer money into funds they run themselves, a review by the UK financial watchdog has found. FT

Disclosure of funds’ “active share” figure should become the norm to prevent investors being misled into buying overpriced funds whose performance closely mirrors that of a benchmark index: FT

Fed’s game of pretend must end soon; Rate rise delay will make deleveraging more painful: FT


Asia’s Aging Tech Leaders Struggle to Find Successors; Many Now-Global Firms Are Still Run Like Family Businesses, Making Handoffs Difficult: WSJ

How the smart went out of the Samsung phone: South Korea’s group has never persuaded consumers its brand is as desirable as Apple’s: FT

Unsold. Unwanted. Unloved. Samsung’s Galaxy S5 Gamble Failed; Samsung is going to suffer continued pain over this over-confidence: Forbes

Those Amazon Delivery Drones? Not So Fast: WSJ

Now, Anyone Can Buy a Drone. Heaven Help Us. NYTimes

Now, Anyone Can Buy a Drone. Heaven Help Us. NYTimes

Global Tech Companies Make Melbourne Their Australian Home: Forbes

Proto Labs is turning the manufacturing process on its head: Forbes

Is Uber Really Worth $40 Billion? Bloomberg

GoPro to roll out consumer drones; Company Plans to Start Selling Multirotor Helicopters With High-Definition Cameras Late Next Year: WSJ

Behind Google’s Europe woes, American accents: Reuters

Ultra-strong graphene’s weak spot could be key to fuel cells: Reuters

Energy & Commodities

For The World’s Largest Rig Operator, The “Recovery” Is Now Worse Than The Post-Lehman Crash; Seadrill collapsed 20% following a shocking overnight announcement that it had once again halted its dividend: ZeroHedge

Opec price wars, then and now: FT

Oil price fall starts to weigh on banks; Banks including Barclays and Wells Fargo are facing potentially heavy losses on an $850m loan made to two oil and gas companies, in a sign of how the dramatic slide in the price of oil is beginning to reverberate through the wider economy. FT

OPEC price war fears evokes ugly memories of 1986 oil bust for U.S. drillers: FP

Cheap energy is the new cheap labour; For companies wondering where to locate, the world has turned upside down: FT

OPEC price war fears evokes ugly memories of 1986 oil bust for U.S. drillers: FP

Cheap energy is the new cheap labour; For companies wondering where to locate, the world has turned upside down: FT

Jim Rogers Weighs In on Commodities: Barron’s

Heavy Metals Weigh On Banks; Asian lenders are closely eyeing loans to resource companies. Which banks are most at risk? Barron’s

19 US Shale Areas That Are Suddenly Endangered, “The Shale Revolution Doesn’t Work At $80”: ZeroHedge


FDA Requires Calorie Labels at Groceries, Pizzerias to fight obesity: Bloomberg

Failed Allergan Deal Strains Valeant’s Business Model: NYTimes

What If We’re Wrong About Depression? Some researchers say we need new ways of thinking about depression entirely – and that one day, therapy could start with a blood test. NYTimes

Mt Elizabeth Hospital sets fixed surgery prices: AsiaOne

Stem Cells Hold Promise for Skin Disease Treatment: WSJ

Consumer & Others

Sir Terry Leahy ‘shocked’ by events at Tesco; Sir Terry Leahy, who has been accused of leaving a ‘very sad legacy’: Guardian

BMW’s genius move is from Apple’s playbook; BMW is redesigning the way its dealerships operate, a process that will include more “genius” product specialists and fewer sales personnel: Fortune

Yakult Falls After Danone Said to Consider Selling 20% Stake: Bloomberg

Luggage maker Tumi travels toward moatworthy status in the luxury goods industry: Morningstar

Daily Bamboo Innovator Insight: Wed 26 Nov 2014 – Google HR Boss Says This Is The Secret To Happiness: An “attitude of gratitude” is the secret to happiness


Google HR Boss Says This Is The Secret To Happiness: BusinessInsider, LinkedIn

Ndamukong Suh: “I want to understand [Buffett] as a person, not a stock tip or the next thing he’s getting involved in. I want to understand what made him successful.”: WSJ

Nations thrive by uniting professors and entrepreneurs; Business opportunities are lost when academics and entrepreneurs inhabit separate worlds: FT

How Marvel is opening up its universe to women and minorities; Marvel is addressing women and minorities more than ever before-in film, television, and print comics. Fortune

The Lives of Alexander Grothendieck, a Mathematical Visionary: NYTimes

How the Chicken Built America: NYTimes

Here’s How Legendary Industrialist Andrew Carnegie Defined Success: BusinessInsider

12 Surprising Things That Can Make You Successful: BusinessInsider

What yellow slime-yes, slime-can teach your organization: Explore, Remoeve hierarchies, Remember what you did wrong and tell someone: Quartz

Rethinking start-ups: The start-up spirit is important. But even more importantly, we need more successful entrepreneurs. JoongAng

How to Disagree with Your Boss: HBR

It Doesn’t Matter If Competitors Know Your Strategy: HBR

How to Give a Stellar Presentation: HBR

Fight fraud with six levels of authentication: BT

THE rise of Lockton Inc in the last 48 years to become the world’s largest privately-owned insurance broker is no mystery, says CEO John Lumelleau who attributes the glowing success to his people. BT

CEOs’ Test: Contending With Activist Investors; Executives Devise Strategies to Deal With Shareholders, Who Are More Assertive Since Financial Crisis: WSJ


How to Lie with Statistics: Amazon

The Value Proposition: Sionna’s Common Sense Path to Investment Success: Amazon, CFA

Best Books for Investors: A Short Shelf: WSJ

Greater China

Microsoft to pay China $140 million for ‘tax evasion’: Reuters

Fake invoicing rampant to disguise black money, say analysts: Reuters

Be careful what you do in China, you may be surcharged for it: WantChinaTimes

Why Family Business Succession is China’s Biggest Threat: CampdenFB

Spreading Black Friday Fever to China’s Shoppers: WSJ

Why $4 Trillion of China Stocks Are Hostage to a Few IPOs: Bloomberg

The 51% Chinese Stock Rout That Analysts Never Saw Coming: Bloomberg


Bollywood’s Window Onto India: Bloomberg

Rajan Seeks More Power for India’s Banks Over Big Bad Defaulters: Bloomberg

Japan & Korea

South Korea targets 5G global supremacy: FT

Chung taking Hyundai Motor Group global: KoreaTimes

Samsung to Sell Chemical, Defense Units for $1.7 Billion to Hanwha; Samsung Techwin Drops Most in 14 Yrs on Sale Plan; Hanwha Surges: Bloomberg


How Thai junta should respond to three-finger protest: TODAY

Vietnam Expands Foreign Property Ownership to Boost Economy: Bloomberg

Remisiers feel the chill as investors shun local market: AsiaOne

Joko “Jokowi” Widodo’s appointment of Franky Sibarani, a businessman, as the new chief of the Investment Coordinating Board (BKPM), reiterates the President’s overriding concern with expediting the bureaucracy of investment licensing: JakartaPost

Indonesia Cannot Afford Food Nationalism: JakartaGlobe

Indonesian politics will always be shaped by the Golkar Party regardless of the regime or president. As Indonesia’s own Grand Old Party, Golkar is a survivor and has managed to adapt to whatever changes the country has faced. JakartaGlobe

Blue Bird’s Road Forks in Family Feud, IPO: JakartaGlobe

Leaders Gather to Embrace Indonesia’s Consumers: JakartaGlobe

Bankers Doubt Indonesia’s Liquidity Rules Will Have Desired Effect: JakartaGlobe

Jokowi Urged to ‘Show Teeth’ to Transform BKPM in Simplifying Investment: JakartaGlobe


SEC Encouraging Firms to ‘Tell Their Story’ in MD&A: CFO

Radical cures for unusual economic ills; The crisis left a grim legacy, and the answers are likely to be unorthodox: FT

Asia needs to deepen financial markets: Xinhua

Let’s Make a Deal: The Outlook for Merger Funds; How increased merger activity shapes the risks and opportunities for this niche group of mutual funds. Morningstar

How Macquarie Makes Money By Losing Money on Toll Roads: StreetsBlog

How pensions make investing too complex; Pricey consultants have convinced many pension funds to pile into private equity, real estate and hedge funds, which don’t necessarily promise higher returns or long-term investing. Fortune

Poison-pill loans against hostile takeovers turn against some boards: TheAge

UK Government appoints 50 ‘watchdogs’ to safeguard interests of small firms; The officially titled Small Business Champions will handle appeals against decisions by regulators: Telegraph

Modi to Abe Favor Oil Bears as Price Plunge Aids Asian Economies: Bloomberg

How The World’s Most Leveraged Hedge Fund Got Away With Insider Trading: ZeroHedge


The Slippery Slope of Silicon Valley; Uber, Facebook and Others Bedeviled by Moral Issues: NYTimes

One Simple Fact Explains How Enormous Amazon Could Become: BusinessInsider

Apple joins the one-company $700bn club: FT

Jon Oringer, Shutterstock: the big picture in Silicon Alley; Shutterstock shows how NYC is a natural home for tech start-ups: FT

SnapShop CEO says you can buy an item within 20 seconds: JoongAng

3D printers coming close to daily life as patents related to 3D printers held by foreign companies were expired successively: Maeil

Samsung seeks to hit back as Alipay and Apple Pay fare well: Maeil

Venture Money Pours into Robotics Startups: WSJ

Accounting SaaS Japan raises US$8.5 million in Series B round: e27

Xiaomi The Money! No. 1 smartphone maker in the world’s biggest market is not publicly listed, but here are 3 ways to dial into Xiaomi’s boom. Barron’s

The Sharing Company: Behind the hype of peer-to-peer economics is a quiet B2B revolution. Strategy@

Energy & Commodities

HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says: Bloomberg

Expect iron ore prices to stay weak for longer, says ex-Rio boss Tom Albanese: TheAge

New mining projects at 10-year low: TheAge

World’s worst junk bond fueled by mining malaise: MineWeb

Consumer & Others

How Coca-Cola built a sugary empire, by outsourcing as much as possible: Fortune

Made in America, From Sheep to Shelf: Zady’s Feel-Good Sweater; Online Retailer Makes Imperial Sheep Ranch, Other Suppliers the Focus of Socially Conscious Marketing: WSJ

Daily Bamboo Innovator Insight: Tues 25 Nov 2014 – Why You Can’t Invest Like Warren Buffett – And Shouldn’t Try; A non-cheesy guide to gratefulness: What to read and watch

Investing Process

Why You Can’t Invest Like Warren Buffett – And Shouldn’t Try: Forbes

Beware initial euphoria over headline-grabbing deals: BT

Citi Analysts Thought Everyone Knew ‘Hold’ Meant ‘Sell’: Bloomberg

Once Lucky, Always Lucky? Institutional Trading in a Connected World: SSRN


A non-cheesy guide to gratefulness: What to read and watch: TED

How Innovators Think, And What They Do About It; 88% of award-winning projects began with an employee asking, “What difference would people love?” Forbes

Winning teams are tough to find-and even tougher to build. The former captain of New Zealand’s mighty All Blacks rugby team, David Kirk, explains how to develop superlative   McKinaey

Behind the Talent of Artistic Child Prodigies; Why Can Some Children Draw Realistic Pictures at a Young Age Without Any Training? WSJ

The Secret to Resisting Temptation; People who excel at resisting temptation might have a secret strategy: They deliberately avoid situations in which their self-control might fail, says a study.: WSJ

The Unifying Leader; The collaborative leader is willing to step back from the war posture of politics and be vulnerable. The collaborative leader understands the paradox; you have to take off the armor to build strong bonds. NYTimes

Innovation that succeeds by exploiting the past creatively; Gambling that a rare flash of genius will generate a new, viable idea is expensive: FT

Here’s Why ADHD May Have Been An Evolutionary Advantage: BusinessInsider

How Steve Jobs Fouled Up Presentations For The Rest of Us: Forbes

9 Tips To Drive Down The Price Of Just About Anything: BusinessInsider

11 Tricks Steve Jobs, Jeff Bezos, And Other Famous Execs Use To Run Meetings: BusinessInsider

After 96 Loan Rejections, This Guy Built A $750 Million Marketplace For Business Loans: BusinessInsider

IKEA has created a desk that converts from sitting to standing via a simple button: Quartz

Companions in Misery: What can Schopenhauer, philosophy’s best known pessimist, tell us about New Yorkers? NYTimes

Climbing a Glass Building? Try a Gecko’s Sticky Pads: NYTimes

Brains of People with Chronic Fatigue Syndrome Offer Clues About Disorder: NYTimes

Daum Kakao chairman stresses role of startups; Kim suggested the idea of “social impact” as the most important factor to be successful for a start-up. KoreaTimes

Strategist uses Harry Potter magic to lift fortunes of Osaka theme park: JapanTimes

Four conversations to build your team leadership: Nation

Research: Insecure Managers Don’t Want Your Suggestions: HBR

Interpreter of Maladies; For 30 years, Fouad Ajami took Westerners into the heart of Arab civilization, unafraid to show his readers its afflictions and dreams. WSJ

The Beauty of ‘Infrastructure’; Brian Hayes, author of the updated ‘Infrastructure: A Guide to the Industrial Landscape,’ discusses his book documenting the buildings, systems and networks that make everything in our world work: WSJ

Greater China

China rate cut unlikely to halt slowdown, say analysts: FT

Outside Forces Drive China’s Big Flip-Flop: Bloomberg

China Stock Surge Before Rate Cut Raises Investors’ Worries: WSJ

One reminbi to one US dollar in 25 years: Jim Rogers: WantChinaTimes

The Future of Chinese Arts and Creative Industries: Forbes

When You Give Your Team a Goal, Make It a Range: HBR

China Considers Tobacco Advertising Limits, Public-Smoking Ban: WSJ

Currency Wars Reignite As Yuan Tumbles Most In 2 Months And Chinese Bond Market Freezes: ZeroHedge


Burger King eyes a big slice of the Indian market: Forbes

Buyers Balk as Stressed Assets Pile Up on Rule: Corporate India: Bloomberg

Japan & Korea

Kuroda Tells Japan Inc. to Stop Hoarding Cash as Costs to Rise: Bloomberg

S. Korean companies squeezed in ‘new nut cracker’ between China and Japan: Maeil

IKEA under probe for overcharging consumers in Korea: KoreaTimes

Park pitches ‘creative economy’ in North Jeolla: KoreaTimes

Korean conglomerates to face tougher regulations in appointing financial CEOs: KoreaTimes

Japan’s young fret as unexpected recession kicks in: JapanTimes

Abe Sales Tax Backfiring With More Debt Not Less: Bloomberg


Indonesia Corruption Watch Gives Attorney General a Long To-Do List: JakartaGlobe

Holding of properties from all over the world by Singapore property trusts means that the market has been able to grow beyond expectations. BT

Should Pemandu scale down and close shop; is it duplicating civil service role? Star

Rural Philippine Call Center Shows Promise of New Business Model: WSJ

World’s Longest Stock Gain Has Top Malaysia Fund Piling Cash: Bloomberg

S’pore must exploit IT advantage to stay ahead: PM: TODAY


Companies Still Sorting Through Revenue Recognition Rule, Survey Shows: ComplianceWeek

Fears Australian banks ill-prepared for housing-induced crisis: TheAge

BlackRock: Beware of Dividend Stocks; If interest rates rise even modestly in 2015, these defensive plays are likely to perform poorly. Barron’s

The World According to Goldman: Barron’s

The Unsettling Mystery of Productivity; Since 2010 U.S. productivity has grown at a miserable rate. And no one, not even the Fed, seems to understand why. WSJ

New Abnormal Means Relying on Central Banks for Growth: Bloomberg

Hedge Funds Lose Money for Everyone, Not Just the Rich: Bloomberg

Global ‘QE glut’ to brim through 2015 as funds swim with the tide: Reuters


How Google Glass Helped This Blind 13-Year-Old Dancer Get His Vision Back: BusinessInsider

How to make a fortune without ‘doing’ anything: The Uber, Airbnb story: Fortune

Is Spotify the music industry’s friend or its foe? NewYorker

Huawei aims to turbocharge design of self-driving vehicles: FT

Melbourne, Becoming A World Class Tech Hub: Forbes

A startup planned on the kitchen table is among America’s top 20 web properties: Forbes

Facebook ‘Newspaper’ Spells Trouble for Media: JakartaGlobe

It Won’t Be Easy Making Money Off of Cherry-Picking Shoppers; Successful Retailers Must Create a Better, Memorable Customer Experience: WSJ

Wake Up, Brick-and-Mortar Retailers: The Web Has Opened Shoppers’ Eyes to Selection, Ease, Transparency: WSJ

The End of the Impulse Shopper: The Web Has Made Consumers More Intentional, Smarter: WSJ

Amazon Offers Help Finding Local Handymen; Listing Service in 3 Cities Aims to Connect Customers With Service Providers: WSJ

Uber and a Fraught New Era for Tech; Consumer-Privacy Troubles Are Likely to Transform Silicon Valley: WSJ


Radiologists Are Reducing the Pain of Uncertainty: NYTimes

I Asked 20,000 Doctors About Fitbit And Apple’s HealthKit, And Here’s The Answer: Forbes

Bringing the Customer’s Voice into Medicine: HBR

U.S. Buys Up Ebola Gear, Leaving Little for Africa; Manufacturers Strain to Meet Demand Amid Rising Anxiety: WSJ

More Patients Opt to Replace Ankle Joints Instead of Fusion; Increased Range of Motion; Expect Repeat Surgery a Decade Later: WSJ

Surgical Tool Gets Strongest Warning; Morcellator Used in Hysterectomies Can Spread Undetected Cancer, FDA Says: WSJ

RealView Imaging’s 3D holographic display enables doctors to view a real-time 3D hologram of a patient’s anatomy “floating in the air” and interact with it either by stylus or with their hands: WSJ

Commodities & Energy

Global metals markets are becoming more difficult to regulate as manipulation takes more subtle forms and new trading platforms spring up: FT

Petrobras scam allegations weigh on Brazil as blacklist fears rise: FT

Black hole in mining sector profits leads to ‘vanishing’ returns; FTSE 100 miners are feeling the pain from a collapse in commodity prices as the Chinese economy hits the skids: Telegraph

OPEC Fault Lines Spur Hedge Funds to Trim Bullish Oil Bets: Bloomberg

BHP Billiton digs deep as tough times get tougher: TheAge

Consumer & Others

4 Reasons Nike’s Business Will Explode: BusinessInsider

The boss of Domino’s Pizza Enterprises says his company has “far from peaked”, after he capitalised on the company’s skyrocketing share price to sell $2.2 million worth of shares. TheAge

Bud Crowded Out by Craft Beer Craze: Faded Beer Brand Unhitches Clydesdales in Favor of Fresher Pitches to Young People: WSJ

Supermarket price war now claiming food producers as victims; Cost-cutting by the UK’s largest grocers has squeezed the margins of its suppliers, driving up corporate failure in the sector while it has declined elsewhere: Telegraph

Coca-Cola to release expensive low-sugar milk that will ‘rain money’: Telegraph

Pay per puff? Caffeine stick? E-cigarette boom sparks race for new patents: Reuters

Bamboo Innovator Weekly Insight – The Urgency for a Composite Measure to Detect Accounting Tunneling Fraud in Asia

 “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 | November 24, 2014
Bamboo Innovator Insight (Issue 60)§  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 “Inside the Leader’s Mind” 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 All,

The Urgency for a Composite Measure to Detect Accounting Tunneling Fraud in Asia

“This is a huge international scandal,” Wang Donglei, the newly-appointed chief executive of China’s largest lighting and energy-saving lamp manufacturer, roared at a conference call on last Monday 17 Nov about the accounting fraud committed by the firm’s founder and controlling owner. “These banks misled the company and investors with false information. They did illegal things. These are major banks listed in Hong Kong. The embezzlement is being investigated by Chinese police.”

Last Monday is also the opening day of the much-anticipated Shanghai-Hong Kong Stock-Connect “through-train” door, creating direct access for foreign investors to one of the largest stock markets in the world with a combined value of $5.6tr. By expanding beyond qualified foreign institutional investors and sucking in new investment into Shanghai-listed stocks, the Connect was supposed to lower borrowing costs for mainland companies.

Could the prevalence of accounting fraud put the Connect at risk? Through the cases that follow, value investors need to be aware of a particularly brazen form of accounting fraud in which controlling owners use intercorporate loans to siphon off or tunnel out cash. Similarly, in Australia, intercorporate loans helped to facilitate the building (and later collapse) of the Alan Bond empire when the accounting fraud unravel. Descriptive cases detailing chronological events can inform about the fraudulent accounting acts after they happened but are inadequate in staying ahead of the devil who will invariably develop more sophisticated methods to escape detection. Thus, value investors need to out-think the devil – by first going back in time eight years ago to Nov 7, 2006 to understand the importance of the “Eight-Ministry Joint Announcement” that managed to curb accounting tunneling fraud, albeit for a short-while – and importantly, how controlling owners adapted the rule to continue their expropriation acts. Importantly, we spell out the urgency and opportunity for top accounting researchers-practitioners and regulators to develop a composite measure to detect tunneling acts to alert and prevent “live” cases of corporate abuse instead of fighting fire with “forensic accounting” of “dead” companies in which the harm had been done. But first, let’s get back to the recent cases of accounting fraud and examine their hidden footnotes.

NVC Lighting (2222 HK) Stock Price Performance, 2010-2014


Wang alleged that Wu Changjiang, the founder and former CEO of NVC Lighting (2222 HK, MV $709m) whom he had ousted in August, had embezzled funds totalling RMB623m ($101.7m) on behalf of a company subsidiary. Employees of four leading Chinese banks – Bank of China (BOC), ICBC, China Construction Bank (CCB), Minsheng Bank – who “conspired in the crime of diverting and defrauding” the company’s funds were also under police investigation. NVC stock has been suspended since 11 Aug when Wu was expelled on 29 Aug from the company. NVC’s products are said to be used in the 2008 Beijing Olympics and 2010 Shanghai World Expo, and Wu is also a prominent entrepreneur featured by BBC, thus attracting reputable investors including private equity firm SAIF Partners, Goldman Sachs and French electrical systems giant Schneider Electric (SU EN, MV $46.7bn) when it was listed in May 2010 raising $196m in a deal underwritten by Goldman Sachs and HSBC. Schneider had invested HK$1.27bn ($163m) in Jul 2011 for a 9.1% stake in NVC.

In the week before the official launch of the Stock Connect, Wison Engineering Services (2236 HK, MV $450m) saw its share price plunged by nearly 60% in a day when its suspension for over a year was lifted on 12 Nov. Wison is a vast engineering-services empire controlled by its founder and billionaire Chairman Hua Bangsong, one of Chinese richest man. Wison builds refineries and chemical plants for domestic and international oil companies that include PetroChina and BASF. Wison was said to have obtained China’s highest certification to undertake petrochemical engineering work in 2007 when it bought a licensed, but near-bankrupt, quasi-government institute in Henan province. The 48-year old billionaire has not been seen since he was detained by Chinese investigators in Aug on bribery charges. Since the arrest, the company warned investors that it could post a “significant loss” for 2013 and might default on bank loans that total around $215m. Wison had earlier raised $195m in its IPO in Dec 2012. Similarly, when the billionaire chairman of Agile Property (3383 HK, MV $2bn) was taken into custody at end Oct by authorities, the disclosure was a shock to Western banks that had lent money to the company.

Wison Engineering Services (2236 HK) Stock Price Performance, 2012-2014


Underlying the accounting frauds at NVC, Wison etc is the use of intercorporate loans to “tunnel out” cash and assets from the firm. During 1996-2006, tens of billions in RMB were siphoned from hundreds of Chinese firms by controlling shareholders. Typically reported as part of “Other Receivables”, these intercorporate loans did not …

<Article snipped>

As we have discussed, intercorporate loans classified under “Other Receivables” have shifted to other accounts in disguised forms that include … Thus, even though the income statement, balance sheet and even operating cash flow may appear healthy, the cash and assets are already tunnelled out and propping acts are continuously fashioned to draw in external funds and cash inflow to carry on the accounting charade. The different legal systems between Hong Kong and China create additional opportunities for expropriation by companies that can shift assets across the border, because rulings by courts in Hong Kong are not enforceable in the mainland. And the Connect could potentially exacerbate the propping-tunneling problem. Thus, there is a sense of urgency to develop a composite measure that captures the true “Other Receivables” that has artificially inflated revenue and earnings.

The tunneling problem in China and Asia has stubborn roots. Until these root tensions are fully addressed, insider tunneling will pose an ongoing challenge to reform in China and the seemingly pretty-looking financial ratios and accounting numbers at the typical firms are potentially propped up to suck in capital for subsequent tunneling acts.

Warm regards,


Managing Editor

The Moat Report Asia


SMU: http://accountancy.smu.edu.sg/faculty/profile/108141/Kee%20Koon%20Boon

To read the exclusive article in full to find out more about the story of NVC and Wison and the accounting and economics of tunneling that can provide an important organizing framework for value investors to navigate the Asian capital jungles, please visit:

·        The Urgency for a Composite Measure to Detect Accounting Tunneling Fraud in Asia, Nov 24, 2014 (Moat Report Asia, BeyondProxy)

A new monthly issue of The Moat Report Asia is now available!

Access the in-depth idea presentation:


Daily Bamboo Innovator Insight: Mon 24 Nov 2014 – To boost GDP, China may be making a mortgage bomb; Alastair Mitchell, on Running With Your Dreams: A chief executive describes what he calls the “big red bus test”: If a bus were about to run you over, what would be the one thing you’d regret not doing?


Alastair Mitchell, on Running With Your Dreams: A chief executive describes what he calls the “big red bus test”: If a bus were about to run you over, what would be the one thing you’d regret not doing? NYTimes

Tips on staff productivity from a happiness evangelist; Trust and freedom can make staff more productive: FT

Jack Dangermond, billionaire founder of the 45-year-old mapping software company Esri, thinks every businessperson needs more geospatial awareness. Fortune

From graft to gadgets: Chinese official becomes inventor in jail: WantChinaTimes

Inventing Products is Less Valuable Than Inventing Ideas: Forbes

‘How Adam Smith Can Change Your Life: An Unexpected Guide to Human Nature and Happiness’, by Russ Roberts: FT

Creating a Niche Beyond SL Green’s Real Estate Empire; Gary Green, Son of Stephen L. Green, Runs a Successful Building-Services Firm: WSJ

The mind map of blue ocean leadership: JakartaPost

Razon Moves Quickly, From Ports to Resorts; Philippine Billionaire Takes Undemocratic Approach to Running Two Big Businesses: WSJ

Warren Buffett: The three things I look for in a person: FarnamStreet

Ideas are not singular: FarnamStreet

Building a Business and Making Your Mark: FarnamStreet 

《天龙八部》: 修习任何武功之间,总是心存慈悲仁善之念,倘若不以佛学为基,则练武之时,必定伤及自身。功夫练得越深,自身受伤越重。每一项绝技,均须有相应的慈悲佛法为之化解: Zaobao

Greater China

To boost GDP, China may be making a mortgage bomb: Bloomberg

Has the Big China Golf Course Boom Finally Gone Bust? Dan Waornk

vLoan ‘Guarantee Chains’ in China Prove Flimsy; Companies Renege on Promises to Pay Up in a Default: WSJ

Fear Of “Surge In Debt Defaults, Business Failures And Job Losses” Means Many More Chinese Rate Cuts: ZeroHedge

Mainland Investors Turn Sellers Through Hong Kong Stock Link: Bloomberg

Hong Kong Moves to Refashion Itself as a Global Hub of Creativity: NYTimes

Hong Kong-Shanghai-Just Barely-Connect; The much-hyped connection between the two bourses was mostly one way-and can’t overcome China’s economic problems. Barron’s

China’s Surprise Rate Cut Signals Desperation, Bad News Ahead: Fornes

Communist Party should try imperial China’s impeachment system to fight graft, says novelist: SCMP

Ex-CFO of China’s Longtop found liable in rare U.S. investor trial: Reuters

Taiwan ruling party faces rout in biggest ever local polls: Asiaone

China ready to cut rates again on fears of deflation : Reuters

With A Hard-Landing Imminent, China Reminds Residents It Is Illegal To Jump Off Tops Of Buildings:ZeroHedge

Has the Big China Golf Course Boom Finally Gone Bust? Dan Washburn

Chinese leaders committing suicide in droves: WaPo

China to force bosses at central government-run firms to reveal pay: AsiaOne

In China Coal Hub, City Struggles to Survive Amid Economic Slowdown; Workers Go Unpaid, Factories Collect Dust in One of China’s Slowest-Growing Cities: WSJ

China Central Bank Cut in Rates May Be Short on Impact: WSJ


India is world’s biggest food delivery market: foodpanda’s Ralf Wenzel: E27

Apollo Hospitals’ Prathap Reddy grooms daughters for leadership positions: Forbes

Modi Seeks to Insure India’s Future; India’s parliament to introduce reforms vital to boosting growth. Insurers to benefit, so too the nation’s poor. Barron’s

Japan & Korea

Himpel CEO may be Korea’s biggest clean-air fan: JoongAng

Super-rich Koreans rush to withdraw cash from borrowed-name accounts: Maeil

Samsung Mobile Executives Set to Pay Price in Overhaul; Samsung Considering Shake-Up in Management; Co-CEO B.K. Yoon May Assume Leadership of Mobile Division: Bloomberg, WSJ

Dongsuh Food CEO accused of cereal fraud; This is the first time that the head of a major food company has been put on trial in connection with a food fraud case here. KoreaTimes

Lotte Homeshopping’s license may be revoked; Lotte Homeshopping’s future hangs in the balance as a former senior staff member has received a prison term in its worst bribery scandal. KoreaTimes

Teaching quality, not lesson quantity, may be key to Japan’s top math marks: JapanTimes

Rich get richer, poor poorer under mixed results of Abenomics’: JapanTimes

Sagging yen saps South Korean export muscle: JapanTimes

South Korea holds winning hand as Japan gambling bill dies: AsiaOne


World’s Oldest Spice Bears Vietnam Modern Riches: Bloomberg

SE Asia fast-growing source of whistleblowing to US regulator; The jump in number of tipoffs on wrongdoing ‘points to lack of in-house whistleblowing channels’: BT

Falling value and output raise questions about S’pore chemicals hub; Chemicals’ value added has fallen from its peak of S$7.36 billion in 2004 to S$3.98 billion in 2013; new growth from knowledge-intensive specialty chemicals: BT

Alarm for Singapore bonds as private bank bid falters: Reuters

ASEAN Economic Community 2015: Will it happen? JakartaPost

An Ethnic Chinese Christian, Breaking Barriers in Indonesia: NYTimes


How Canada’s auto loan bubble has become a ticking time bomb: FP

Why Christopher Wood is bullish on India and the Philippines and bearish on Hong Kong and Singapore. Barron’s

What Big Economies Got Right, or Wrong, After Crisis: WSJ


Jeremy Male, Outfront Media: the billboard goes digital; CEO takes CBS’s old outdoor advertising arm into 21st century: FT

Telecoms groups find it difficult to connect with content strategies; Telcos should focus on the core task – connecting people – and let others work out what to push down the pipes: FT

The Hassle of ‘Hands Free’ Car Tech; Voice-Activated Systems Often Don’t Work Right, Can Add to Driver Distraction: WSJ

Goldman Sachs Has Invested In A Company That Could Replace Analysts With Algorithms: BusinessInsider

Commodities & Energy

Hedge Funds Bet on Coal-Mining Failures; Investors Make Trades in Anticipation of Bankruptcies: WSJ

Solar and Wind Energy Start to Win on Price vs. Conventional Fuels: NYTimes

Fed signals curbs on banks’ commodities trading business: FT

Miners in a hole should stop digging; Ramping up iron ore output is a losing game: FT

Oil markets: A new chapter for Opec? After enjoying years of stability, the producers’ cartel is facing a prolonged stretch of lower prices: FT

‘Immoral, but not illegal’: metal warehousing games in the spotlight: Reuters

In China Coal Hub, City Struggles to Survive Amid Economic Slowdown; Workers Go Unpaid, Factories Collect Dust in One of China’s Slowest-Growing Cities: WSJ

Singapore’s offshore and marine sector appears to be sailing into a perfect storm of sinking oil prices, rig oversupply and cuts in capital spending by oil companies: AsiaOne

Energy IPO Boom Leaves Some Wary; Investors Pour Cash Into Master Limited Partnerships, but Experts Urge Caution: WSJ

Some fund managers see oil falling to $60 without OPEC cut: Reuters


How physiotherapy chain Back in Motion plans to expand by franchising: BRW

What Sleep Deprivation Does to Your Brain, in One Stunning Infographic: MIC

Consumer & Others

Brazilian Billionaire Trio Reportedly Sets Up New Fund, Possibly To Acquire All-American Brand Coca-Cola: Forbes

Pie Face, one of the first Australian fast-food chains to expand overseas, has gone into voluntary administration, leaving dozens of high-profile, wealthy investors and scores of franchisees pondering the company’s future: TheAge

Airbus deepens carmaker thinking to drive jet output: Reuters

Daily Bamboo Innovator Insight: Sun 23 Nov 2014 – Albert Camus’s Beautiful Letter of Gratitude to His Childhood Teacher After Winning the Nobel Prize


Albert Camus’s Beautiful Letter of Gratitude to His Childhood Teacher After Winning the Nobel Prize: BrainPickings

Ursula K. Le Guin on Where Ideas Come From, the “Secret” of Great Writing, and the Trap of Marketing Your Work: BrainPickings

Indonesia’s new president causes a buzz by flying economy: AsiaOne

Sometimes the Best Ideas Come from Outside Your Industry: HBR

Being thankful for little things: Star

The Introvert on the Podium: NYTimes

The Creative Gifts of ADHD: ScientificAmerican

How to use self-doubt to your advantage: NextWeb

The truth about your ego: Why we’re so resistant to change: NextWeb

The Most Difficult Question I Ask Founders: HunterWalk


Leonardo’s Brain: Understanding Da Vinci’s Creative Genius: Amazon, BrainPickings

Uncommon Genius: How Great Ideas are Born: Amazon, BrainPickings

The Most Influential Books of the Past Decade: AdamGrant

Investing Process

Why Alpha’s Getting More Elusive: ETF


China’s rate-cut likely to hurt banks, curb new loans to small borrowers: Reuters

New energy car batteries to be subsidized in China: WantChinaTimes


Central Banks in New Push to Prime Pump; Steps by China, ECB Lift Stocks, but Risk Lurks: WSJ


The Apple Watch Will Have One Key Advantage Over Other Smartwatches: BusinessInsider

At Spain’s Door, a Welcome Mat for Entrepreneurs: NYTimes


Viruses as a Cure: NYTimes

Energy & Commodities

The Downside of the Boom; North Dakota took on the oversight of a multibillion-dollar oil industry with a regulatory system built on trust, warnings and second chances. NYTimes

Opec ‘can’t hold back new era of cheaper oil’: Telegraph

Consumer & Others

The next pop can? How Ford’s new F-150 trucks are shaking up the aluminum industry: FP

Daily Bamboo Innovator Insight: Sat 22 Nov 2014 – How to Tell if You’ve Made a Good Decision; The End of China’s Economic Miracle? Debt and corruption are hobbling the Asian giant.


How to Tell if You’ve Made a Good Decision: HBR

America excels at absorbing immigrants; There is simply no precedent in US history for deporting millions of people in one fell swoop: FT

The Surprising Secret To Performing At Your Best: Forbes

Tony Robbins Shares His 3 Best Public Speaking Tips: Add more value than anyone expects. Tap your audience’s emotions. BusinessInsider

What Makes Employee Resilience Possible: NYTimes

How Christianity Explains Beauty and Suffering; An argument for a religion based not on cosmology but the way it makes sense of the author’s everyday life. WSJ

Automation Makes Us Dumb: Human intelligence is withering as computers do more, but there’s a solution.: WSJ

What Steve Jobs, Elon Musk, And 11 Other Tech Visionaries Were Like In College: BusinessInsider

Companies Use This Four-Step Process To Hook You To Their Products: BusinessInsider

17 Top Executives Share Their Favorite Interview Question: BusinessInsider

Carolyn McCall: Flying high at easyJet; Initially seen as an outsider, the airline’s chief executive has won over staff and investors: FT

Entrepreneurial UK: 10 things Britain has given the world; The UK has been named the most entrepreneurial country in Europe and comes fourth overall in the 2015 Global Entrepreneurship Index. Here are some of the best innovations invented in UK: Guardian

How a Tim Minchin song inspired 73 year-old Buderim Ginger to reinvent itself: BRW

Japanese construction company says modern-day Atlantis is possible from 2030; Forget colonies in space, one construction company says in the future humans could live in huge underwater complexes that corkscrew deep into the ocean. JapanTimes

Poetry is the most democratic of the arts, says Vijay Seshadri; Pulitzer-winning poet Vijay Seshadri talks about his craft, what inspires him, and how poetry can perhaps not be taught: Forbes

Talent Strategies in Asia: Do Asian Leaders Behave Differently? Forbes

The Discipline of Business Experimentation: HBR

Are Most CEOs Too Old to Innovate? HBR

7 Gift Books on Leadership: WSJ

Growing a Second Green Revolution; The ‘golden rice’ champion on the bewildering campaign to stop a miracle food that could save millions of children from blindness and death: WSJ

The young Stalin made a name by organizing “expropriations”-audacious robberies of banks and armored couriers-to raise the funds for the revolution. WSJ

The Trouble With Trustees: Beneficiaries Can Clash With Trust Officials. Here’s How to Manage a Delicate Relationship. WSJ

Wall Street Stunned As Iceland Dares To Jail Banker Involved In 2008 Crash In Manipulating the Bank’s Stock Price: ZeroHedge

Investing Process

Rocked by accounting scandal, Penn West has now turned the corner, CEO says: FP

IMF Working Paper Suggests Dual Criteria For Spotting Bubbles: ValueWalk, PDF

Call to close ‘loophole’ that allows shadowy short selling: FT

No need for the Tiger’s elaborate camouflage; Short selling is a legitimate activity that does not need to be disguised: FT

What Is Russell Investments? Lured by the indexing business, the London Stock Exchange got a consultancy and asset manager in the bargain. So what happens to them?: CIO

Baidu’s Andrew Ng on Deep Learning and Innovation in Silicon Valley: WSJ

Ex-Longtop CFO Blamed for ‘Foundation of Lies’; An investor lawsuit accuses a CFO of ignoring signs of fraud when he signed off on financial results, but the CFO says he believed they were accurate. CFO


China’s surprise rate cut shows how freaked out the government is by the slowdown: Quartz

The End of China’s Economic Miracle? Debt and corruption are hobbling the Asian giant.: WSJ

Rethinking China’s state-owned enterprises: FT

What to make of the Chinese Stock Connect’s big, splashy bellyflop: Quartz

The Art of Xi Jinping; Xi said the emphasis by artists on “quantity over quality” has led to a one-size-fits-all approach to the production of art that is “mechanized fast food” : NYTimes

The world’s oldest monopoly is finally coming to an end; Starting in 2016, China will start liberalizing its nearly 2,600-year-old monopoly on table salt—opening up the world’s oldest monopoly to competition at last: Quartz

China’s Interest-Rate Cut: A Primer: Quartz

Japan & Korea

Pantech fails to secure a single bid: JoongAng

Japanese artists and performers find that YouTube brings them pay and applause: JapanTimes

Japanese wives’ secret savings triple that of their husbands: JapanTimes

KCC plunges on HHI stock buying plan; “If KCC would buy the shares directly from Hyundai Heavy or its affiliates, it could raise the suspicion that it is providing cash support to the shipbuilder”: KoreaTimes

Hyundai Mobis modules lead Hyundai Motor’s growth: KoreaTimes


Indonesia: The Winners and Losers from Reforms; Citi says the fuel hike signals first step of reforms. Which four sectors will benefit the most? Barron’s

Thai Junta Chief Brushes Off ‘Hunger Games’ Salutes: JakartaGlobe

A Mental Revolution; For some, the idea of having a non-Muslim and non-pribumi, or native Indonesian, becoming their leader, is not only unpalatable but outright abhorrent: JakartaGlobe

The AEC – end of 2015 and beyond: TheStar

Malaysian households are addicted to debt; the estimated debt-service-ratio of civil servants in the country at around 60%. TheStar

CREADOR the private equity fund and its founder Brahmal Vasudevan are fast becoming household names in Malaysia’s investment scene: TheStar

Keep watch over Jokowi’s business-licensing reform : JakartaPost

Indonesia’s Financial Services Authority (OJK) targets deeper financial market with new rules: JakartaPost

Singha to continue successful sports marketing; Singha was among the first Thai companies to use sports marketing to enhance brand awareness: Nation


Companies on trial: are they ‘too big to jail’? Brandon Garrett asks whether America’s legal system has swung too far towards rehabilitation at the expense of deterrence and punishment: FT

When It Comes to Stocks, No Investor Is an Island: WSJ

Private-Equity Firms Wrestle With Investors as Competitors; Politics of Industry Shift as Investors Seek to Commit More Money Under Fresh Terms: WSJ

The hidden opportunity in container shipping; By taking advantage of savings and revenue opportunities, container lines can return to profit.: McKinsey


Someone Invented A Watch That Can Shoot Real Lasers — And You Need To See It In Action To Believe It: BusinessInsiderYouTube

Thomas Middelhoff: the rise and fall of a dotcom evangelist; Former Bertelsmann chief finds sentence humiliating: FT

News Corp’s new reality: Rupert Murdoch losing grip on empire: TheAge

Big data key to success of modern businesses: Alibaba founder: WantChinaTimes

Alibaba wants to say “open sesame” to the world marketplace: WantChinaTimes

Indix: The ‘Google of Products’ Helps Retailers Take Real-Time Decisions: Forbes

Tech-savvy customers find their FairPrice online; With its portal mobile-optimised now, shopping for groceries on-the-go has become much easier: BT

Xiaomi’s CEO Knows How to Make an Entrance – And an Exit: Bloomberg

The Future of AI: An Ubiquitous, Invisible, Smart Utility: WSJ

Startup Aims to Be Amazon.com of Indonesia; Lazada Tries to Get a Head Start in a Country Where Just a Third of Population Has Web Access

The TechCrunch Bubble Index: Parsing Headlines to Quantify Startup Hype: TS

Not So “Fab”: From $1 Billion Valuation To $15 Million In A Year: ZeroHedge

Singapore to regulate taxi-booking apps Uber, GrabTaxi: Reuters

Megachips: Japan’s Best Kept Secret; Can it become Japan’s MediaTek?: EETImes


Surgeons embrace 3D printed implants to save NHS time and cash: FT

A Medical Device Is Sidelined, but Too Late for One Woman; New Scrutiny Over Morcellator Tool Used in Hysterectomies May Save Lives, but Some Women Pay : WSJ

Energy & Commodities

Oil ETF defies crude slide to break over $1bn: FT

The cocoa crisis: why the world’s stash of chocolate is melting away: Guardian

Oil Boom Returns to Gulf After Deepwater Horizon Disaster; Exxon, Shell-Even BP-Push Ahead With Giant Offshore Projects: WSJ

Consumer & Others

Nike Just Launched A Direct Threat To Lululemon: BusinessInsider

To Energize Sales, Nintendo Introduces Toys That Roam Virtual Realm: NYTimes

Aldi double-act that revolutionised the retailer to break up: Telegraph

What’s behind Target’s new openness; The once-insular company is embracing transparency. A top Target explains why. Fortune

Why Barnes & Noble Is Selling Beer Kits, Popcorn Makers: WSJ

Daily Bamboo Innovator Insight: Fri 21 Nov 2014 – Passion for Reality: The Extraordinary Life of the Investing Pioneer Paul Cabot


The tyranny of the long term: Let’s not get carried away in bashing short-termism: Economist

How A Top Creative Director Learned To Embrace The Chaos Of Creativity And Make Great Work: FastCo

Boxing: Pacquiao, the street kid who conquered the world: AsiaOne

SEC official: Stop spending time writing rules to protect millionaires: Reuters

Quantum biology: Nature, the physicist; How quantum theory is helping to explain the mysteries of life science: Economist

5 Books Celebrity Life Coach Tony Robbins Thinks Everyone Should Read: BusinessInsider

What It Was Like To Hear Jeff Bezos Pitch Amazon In 1994: BusinessInsider

The Secret To Creating A Huge Company, According To Peter Thiel: BusinessInsider

Warren Buffett Had An Epiphany At Age 10 That Set Him On The Path To Being America’s Second-Richest Man: BusinessInsider

Jim Parsons, ‘Big Bang Theory’ Star, to Promote Intel as Innovator: NYTimes

Love and Gravity: Christopher Nolan’s “Interstellar” illustrates how modern science has changed the way we look at love, philosophy and religion: NYTimes

The Art of Not Working at Work: Atlantic

Stop Worrying About Making the Right Decision: HBR

For Any Product to be Successful, Empathy Is Key: HBR

How to Improve Your Business Writing: HBR

What Net Present Value Can’t Tell You: HBR

The Container Store’s CEO on Finding and Keeping Front-Line Talent: HBR

Half of Employees Don’t Feel Respected by Their Bosses: HBR

Saving SeaWorld: “Performing for food is the worst option of all captive environments.. When you have an entertainment-driven business model, you cannot afford to have a whale not performing up to par. You’ll lose business.”: BW

Sotheby’s Surges As Chairman and CEO Ruprecht Steps Down Amid Board Pressure; Sotheby’s shares surged over 7% in after-hours trading on its announcement of a pending CEO change.: Forbes, WSJ

Lavish Perks Spawn New Job Category; At Tech Companies, Aim-to-Please Specialists Provide Yoga Classes, Jell-O Shots: WSJ

From bottom to top: Turning around the top team; A case study of change at Philips illustrates the importance of the “soft stuff.”: McKinsey

The Common Traits Of The Most Successful People; Do you have a routine for focus and a feeling of connectedness in your work? These great innovators had these traits in common: They are emotionally committed: FastCo


Passion for Reality: The Extraordinary Life of the Investing Pioneer Paul Cabot: Amazon

400 Things Cops Know: Street-Smart Lessons from a Veteran Patrolman; ‘400 Things Cops Know’ Is the New Bible for Crime Writers: Amazon, WSJ

When Books Went to War: The Stories that Helped Us Win World War II; How Paperbacks Helped the U.S. Win World War II; Armed Services Editions created a new audience of readers back home: Amazon, WSJ

Investing Process

Tiger Global used shell company to short sell Quindell: FT, ValueWalk

Ebola becomes latest stock scam, SEC says: Reuters, CFO

Why Should an Investor Consider International Small-Caps? A conversation between David Nadel and Francis Gannon: Royce

Blowing the whistle on Sinoref: Webb

When Activist Investors Target Strong Companies: NYTimes


Half of Chinese provinces deserve junk ratings, S&P warns: FT

Distressed Debt in China? Ain’t Seen Nothing Yet, Buyers Say: Bloomberg

Aldi plans China move: Guardian

Rich values, poor rules dog Hong Kong-Shanghai stock volumes: Reuters

Ghosts Create Bargains in Hong Kong Housing: BW

Google Looks to Get Back Into China; Company Hopes to Unveil New Store in Country It Mostly Exited in 2010: WSJ

BMW Plays Catch-Up in China; Despite Good Reputation, Car Maker Faces Strong Competition From VW’s Audi: WSJ

Hong Kong-Shanghai Stock Connect Needs China Reforms; Simply Opening the Gates to Shanghai Doesn’t Guarantee a Flood of Investors: WSJ

Hedge Hunters Double China’s Default-Swaps as Views Split: Bloomberg

China Starts $2 Trillion Leap Forward to Slash Pollution: Bloomberg

China’s Financial System Shows Fresh Signs Of Stress; Banks Charge Sharply Higher Borrowing Costs Ahead of Share Offerings, Tax Payments: WSJ

PBOC Targets Bad Loans With Rate Cut as Property Slump Deepens: Bloomberg


How GIS mapping could end corruption in India: e27

Drinks groups push for inclusion in simplified India tax system: FT

Modi Presses Reform for India-But Is it Enough? WSJ

Modi Races to Give Indians Biometric IDs in Graft Fight: Bloomberg

Japan & Korea

Japan’s stimulus plan is not courageous but foolhardy; Abenomics in Peril; Japan’s No. 1 Reflationist Does a Victory Dance: FT: BW, WSJ

Deregulation at heart of Japan’s new robotics revolution: Reuters

Weed out ‘zombie firms’: Korea’s currency crisis in the late 90s was attributed partly to the government’s failure to deal with nonviable companies: KoreaTimes

AB InBev seizes full control of its Korean unit Oriental Brewery OB: KoreaTimes

Outside directors face tougher regulations in Korea; Korea adopted the system of outside directors in 2000, following the 1997-98 Asian financial crisis in order to keep management in check: KoreaTimes

Getting crafty with ideas at Maker Faire Tokyo: JapanTimes

Japan needs to begin thinking outside the box: JapanTimes

Temp workers’ strike halts school meals in Korea: AsiaOne

Japan Should Be More German: Bloomberg

Korean Unification Costs Clouded by Dearth of Data on North: Bloomberg


The Singaporean government has won praise for good administration but it seems to have lost the ability to sense the pulse of the people: TheStar

‘Hunger Games’ Keeps Inspiring Coup Resistance in Thailand: Bloomberg

Malaysia Scraps Fuel Subsidies as Najib Ends Decades-Old Policy: Bloomberg

Vietnam’s state firms: Excess baggage; The 400 firms the government wants to part-privatise are mostly unappealing: Economist

Jokowi Raises Hackles With Choice of Attorney General; Just a Pawn: Critics say the new attorney general will be beholden to party interests and is hardly thebest person for the job; A Clean Attorney General’s Office Is Now Just a Pipe : JakartaGlobe

‘Batman’ Jokowi Inaugurates ‘Robin’ Basuki as Jakarta Governor: JakartaGlobe

TDSR running out of steam in bringing down housing prices in Singapore?: TODAY

Electronic products from Malaysia may face restrictions in entering the United States should the country be placed on a watch list by the US authorities on Dec 1. TheStar

Tony Fernandes to play bigger role in turning AirAsia X around: TheStar

L&H eyes Bt10-billion hospitality REIT in 2015: Nation

Indonesia Rally on Fuel Masks Dim Profit Outlook: Bloomberg


Government-controlled firms: State capitalism in the dock; The performance of state-owned enterprises has been shockingly bad: Economist

FX War Reaps Collateral Damage Across Asia; South Korea, Taiwan on alert as Japan and Europe battle to weaken their currencies. Exporters set to profit.: Barron’s

Thinking outside the Bank: Powerful central banks are subject to their own biases and failings: Economist

Business-development companies: Shadowy developments; In the gap left by embattled banks, an alternative emerges: Economist

Cool watches, real jobs: How makers are reshoring American know-how: Quartz

EM corporate hard-currency debt: a bank run in the making? FT

Concern rises as cracks appear in Nordic model; Cracks are beginning to appear in the vaunted Nordic model. FT

The Stockpicker’s Last Stand; After suffering outflows of $250 billion from 2008 through 2013, Capital Group is trying to regain investor confidence.: BW

Smaller companies are not keeping up with larger rivals in adopting new internal controls framework, known as COSO 2013, as the first line of defense against fraud and financial misstatements as the Dec. 15 deadline approaches. WSJ

Pentagon Presses Contractors to Innovate; U.S. Defense Department Worries About Loss of Military Superiority: WSJ

Winner Take All in Asset Management


Mobile telecoms: The endangered SIM card; Moves to reinvent, or even abolish, the SIM card could have big consequences: Economist

Mobile payments: The cheque is in the tweet; Sending and receiving money on your smartphone is getting easier: Economist

Analytics Meets Mother Goose; Want to get your point across about data? You’d better learn to tell stories. MITSloan

Catching Up with Scantily Clad Analytics Emperors: MITSloan

Practically Every Notable Founder In Silicon Valley Just Invested In This Payroll Startup: BusinessInsider

Intel CEO: We’re ‘Not Ashamed’ Of How Far Behind We Are In Mobile: BusinessInsider

Apple is already using one-fourth of the world’s sapphire supply: Quartz

Inside Elon Musk’s $1.4 Billion Battery Plant in the Nevada Desert: Fortune

EBay retools local delivery push in renewed bet on retail: Reuters

Blockbuster military shooter video game “Call of Duty” has blasted past US$10 billion (S$13.01 billion) in lifetime sales, propelled by demand for the latest instalment in the 11-year-old franchise: AsiaOne

Will Microsoft’s ‘Productivity’ Mantra Prove Counterproductive? Microsoft’s new CEO appears to be making good on his mobile-first promise. Now he has to persuade people to care. BW

Targeted Ads? TV Can Do That Now Too; Data That Combine Viewing and Shopping Habits Help Marketers Zero In on Hispanic Bacon Lovers: WSJ

Startups Mine Market-Moving Data From Fields, Parking Lots-Even Shadows; Firms Seek Exclusive Insights on Business Outlook for Investors Seeking an Edge: WSJ

Uber’s legacy hangs in the balance: Digital robber baron or respectable innovator?: WaPo


Antibodies v bacteria: Making resistance futile; A new way to fight bacterial infections: Economist

Alex Abrahams and Alison Hughes, the two suburban dentists who founded Pacific Smiles in 2003, saw market value of firm climbed to $267m on debut; Pacific Smiles has preferred-provider agreements in place: TheAge

Health Care Needs Less Innovation and More Imitation: HBR

Energy & Commodities

Food supply: Uncharted waters; Consumption of farmed seafood grows amid sustainability concerns: FT

Sashimi Trend Helps Edge Pacific Bluefin Tuna Towards Extinction: JakartaGlobe

Oil Tankers: Ahoy, China! With oil prices off about 30 percent since June, China is importing record amounts of crude to build up a strategic reserve. Cheap fuel is giving tanker companies their best profits in years.: BW

Oil at $75 Means Patches of Texas Shale Turn Unprofitable: Bloomberg

Consumer & Others

Fund managers buying Middleby, heat behind the fast-casual trend: Reuters

Don’t blame a change in shopping habits, Britain’s supermarkets just got it so wrong; strategic blunders, rather than a change in shopping habits, is at the centre of their problems: Telegraph

The Big Business of Ugly Christmas Sweaters; Novelty holiday apparel is helping entrepreneurs pay college tuition and quit their jobs as lawyers and endodontists. BW

Heineken Wants to Play Santa With an At-Home Beer Tap; Heineken is rolling out an elegant $314 home beer tap in Europe. It can be used to serve nine different brews. BW

Daily Bamboo Innovator Insight: Thurs 20 Nov 2014 – Barefoot to Billionaire: Reflections on a Life’s Work and a Promise to Cure Cancer; Why True Entrepreneurs Go Down ‘and Still Come Back Fighting’; Jon Huntsman Sr. discusses how he built a successful business


The Way Warren Buffett Sold Gum As A 6-Year-Old Reveals A Trait That Made Him A Billionaire: BusinessInsider

How A Top Creative Director Learned To Embrace The Chaos Of Creativity And Make Great Work: FastCompany

Marina Mahathir: Warriors who lack vision: TheStar

How Humans Learn to Communicate With Their Eyes; Human understanding of expressions and what they mean emerges very early: WSJ

This Insight Helped Kobe Bryant Become A Better Leader; “People carry emotions with them. They have lives off the court. That helped me communicate better.”: BusinessInsider

Gregg Popovich Shares His Philosophy On Handling Failure: BusinessInsider

Invisibility lens creator to talk about his work; A Korean-American physicist made headlines in late September when he proved that Harry Potter’s invisibility cloak can exist in the real world: JoongAng

Singapore-Listed GLP Co-Founder Jeffrey Schwartz Dies at Age 55: Bloomberg

7 Successful People Share The Defining Moments That Shaped Their Careers: BusinessInsider

A Programmer Describes How He Nearly Went Insane Learning How To Code, And How To Avoid His Mistakes: BusinessInsider

The 5 Best Ways To Start A Presentation: BusinessInsider

Millionaire YouTube Star Bethany Mota Shares The Secrets To Being Successful Online: Be real and be yourself. Be consistent and upload videos as often as you can. You have to have passion, and refuse to coast. Stay connected with your audience: BusinessInsider

Avoiding the dark side of creativity: TheStandard

Simplify Your Life: FarnamStreet

Family business needs equality not hierarchy: Tim Slattery of Slattery Auctions: BRW

How Do Asia’s Rich View Succession Planning? Forbes

Finding innovative ideas in unexpected places; Looking far outside your own industry can yield surprising solutions to tough problems. Fortune

Why Japan And China Cannot Compete With America in Entrepreneurship: Forbes

A List of Goals Is Not a Strategy: HBR

A corporate balance sheet with a little added love: FT

The Post-PC CEO: No Desk, No Desktop; Starwood’s Frits van Paasschen Turns to Smartphones, Tablets as Primary Work Tools: WSJ

Former Billionaire Batista Faces Insider Trading Trial as Brazilian Middle Class Watches: Bloomberg

Voo Soo Sang, managing director of Woodlands Transport – Singapore’s largest private bus operator with annual revenue of $130m – has not forgotten his humble beginnings.: AsiaOne

The Latest Innovation: Redesigning the Business Model: K@W


Best Business Books 2014: Strategy&

Barefoot to Billionaire: Reflections on a Life’s Work and a Promise to Cure Cancer; Why True Entrepreneurs Go Down ‘and Still Come Back Fighting’; Jon Huntsman Sr. discusses how he built a successful business.: Amazon. K@W

Accelerate: Building Strategic Agility for a Faster-Moving World: Amazon

The Moment You Can’t Ignore: When Big Trouble Leads to a Great Future: Amazon

Joy, Inc.: How We Built a Workplace People Love: Amazon

It’s Not the How or the What but the Who: Succeed by Surrounding Yourself with the Best: Amazon

The Moment of Clarity: Using the Human Sciences to Solve Your Toughest Business Problems: Amazon

Romancing the Brand: How Brands Create Strong, Intimate Relationships with Consumers: Amazon

Business Strategy: Managing Uncertainty, Opportunity, and Enterprise: Amazon

Fewer, Bigger, Bolder: From Mindless Expansion to Focused Growth: Amazon

Tilt: Shifting Your Strategy from Products to Customers: Amazon

The Art of Asking (Signed Edition): How I Learned to Stop Worrying and Let People Help: Amazon

Amanda Palmer on expanding her TED Talk into a book and getting a lesson in vulnerability from Brené Brown: TED

Investing Process & Research

Muddy Waters is Short Superb Summit (1228.HK); Muddy Waters Strikes Again, Says HK-Listed Superb Summit Uses M&A To Fake Books: MW, Barron’s

China’s NVC Lighting ex-CEO, bankers investigated for suspected $100 mln fraud: Reuters, SCMP, IBTimes

McLaren Group has signed an alliance with KPMG to apply the same predictive analytics and technology it does to its Formula One team to KPMG’s audit and consulting clients: FT

What is Special About Hedge Fund Activism? Evidence from 13-D Filings: SSRN


Distressed Debt in China? Ain’t Seen Nothing Yet, Buyers Say: Bloomberg

How China Is Disrupting The Mobile And CE Markets: TechCrunch

A conversation with a Melbourne billionaire real estate developer turned unexpectedly to his dislike of Chinese investors. What? Surely he’d welcome Asian buyers? TheAge

Demand for a new stock trading scheme linking Shanghai and Hong Kong has fallen sharply just three days after launch, prompting the head of the Hong Kong exchange to admit that the project was overhyped; Enthusiasm for China Trading Link Fades Further, Exchange Chief Says the ‘Market Is God’. FT, WSJ

What goes up must come down – even China; Regression to mean could spell trouble for Asian powerhouses: FT

Oaktree Capital to Exit Taiwan’s Fusheng Group at $1 billion; Oaktree owns a 48% stake in the conglomerate, which manufactures golfing equipment, industrial air compressors, and electronic products: WSJ

China Wages Policy Backfires as Costs Prompt Sock-City Blues: Bloomberg

Rule of law in China? Still a long way to go: AsiaOne

How China’s Economy Can Weather a ‘Long, Slow Fall’: K@W


Cheap Electricity for Poor Squeezing Out Solar in India: Bloomberg

Indian retailers hobble online as e-commerce firms race ahead: Reuters

India Regulator Approves New Insider-Trading Rules: WSJ

Japan & Korea

Takata’s Switch to Cheaper Airbag Propellant Is at Center of Crisis; Takata switched to ammonium nitrate, which is cheaper but is highly sensitive to temperature changes and breaks down over time: NYTimes

Big macro trade is way to profit in Japan; Stock-picking opportunities that are usual in these circumstances are hard to identify: FT

As Yen Slides, Investors Shun Other Asian Currencies: WSJ

Japan Consumers Feel Squeezed, and That’s a Problem for ‘Abenomics’; Big Challenge for Prime Minister Shinzo Abe Is Restoring Confidence and Lifting Real Wages: WSJ

S Korea chaebol growth model hits limits: FT

AmorePacific rides high on China beauty demand: FT

The list of malpractices committed by a subsidiary of state-run Korea Electric Power Corporation (Kepco) underscores how corrupt a state entity can be when it is left unsupervised: JoongAng

Korea History Points to Samsung Reviving Failed Merger: Bloomberg


District Thai: ‘Hunger Games’ Comes to Life in Defiant Salute to Coup Leader: Bloomberg

Growth Isn’t God in Indonesia: Bloomberg

Indonesia Rally on Fuel Masks Dim Profit Outlook: Bloomberg

S’pore tops Asia-Pac in corporate governance: study; Recent revisions to the CG Code and the SGX Listing Rules have enhanced the CG landscape here; UK pips US to lead global ranking: BT

Bursa wants feedback on ACE Market to enhance competitiveness: TheStar

AirAsia X, the long-haul, low-cost affiliate of AirAsia, facing trouble paying staff salaries: AsiaOne


Buy Emerging Market Stocks Says Value Investor Rob Arnott; As money flows to America, Research Affiliates’ iconoclast Rob Arnott recommends heading overseas. Barron’s

Robert Horrocks on the Promise of Asia Markets; Matthews Asia’s CIO sees rising wages and reform helping Asian consumers. Some areas he likes now. Barron’s

In a City Wary of Skyscrapers, a New Tower May Rise; first skyscrapper in Paris in 40 years: NYTimes

Half of British people expect another global crash in next 12 months: FT

Sweden’s central bank: Stockholm syndrome; Swedish experience puts the Riksbank at the fore on crisis-fighting measures: FT

Fresh SEC crackdown on ‘flash crashes’: FT

Some business owners are rethinking how-and on what terms-they will sell their firms to employee-stock-ownership plans in the wake of a Labor Department crackdown on inflated valuations that could jeopardize worker savings.: WSJ

Irish Bubble Deja-Vu Again Unites Bankers, Politicians: Bloomberg


India’s Micromax Seeks to Challenge Samsung With Premium Unit: Bloomberg

‘People Don’t Tune In To FM Just For Music’: Forbes

Alibaba facing its ‘most dangerous’ moment says Jack Ma: TheAge

Tourists Discover German Legal Quirk Deters Free Wi-Fi: Bloomberg

Searching For Truths In Big, Enormous, Massive Data: TechCrunch

Google to launch its app store in China: The Information: Reuters

Inside Apple’s Broken Sapphire Factory; How $1 Billion Bet on iPhone Screens Failed; The ‘Boule Graveyard’: WSJ

MailOnline Wins Readers, Will Target Profit; Aggregation Approach, Focus on Scandal and Celebrities Pay Off: WSJ

Global Forum in China Examines the Web; Chinese Regulators, Executives Assert Rise of a Carefully Filtered Internet: WSJ


Drug summit aims to inject urgency into innovation: FT

Lambda promises to speed cloud software development to help Parkinson’s sufferers; Imagine a software platform so smart, it can take care of all the data analysis needed to allow Parkinson’s disease researchers to find a cure: TheAge

Energy & Commodities

Oil at $75 Means Patches of Texas Shale Turn Unprofitable: Bloomberg

Cheap-Oil Era Tilts Geopolitical Power to U.S.: Bloomberg

Iron Ore’s Rout Seen Relentless by SocGen as Miners’ Stocks Fall: Bloomberg

From Iron Awe to Iron Gore; Miners hurt as iron ore hits fresh five-year low. Will someone blink first and cut supply? Barrons

Petrobras May Write Off Up to $15 Billion on Audit: Bloomberg

Commodities catastrophes could cost banks up to $15bn: FT

Asian Rubber Producers Agree to Manage Exports to Fight Oversupply: JakartaGlobe

Plump profit margins in the US chicken business may be about to fly the coop, a top food and agriculture investor warned as he hinted at listing shares in a poultry producer he controls. FT

Goldman, Morgan Stanley Commodities Heyday Gone as Units Faulted: Bloomberg

Iron ore slump halves Andrew ‘Twiggy’ Forrest’s fortune: TheAge

Consumer & Others

Exercise in a Bottle Is Next Food Frontier for Nestle: Bloomberg

Shariah Beer Thirst Shows Halal Stock Promise: JakartaGlobe

For Coke, Smaller Packages May Be Better; Soda Giant Increasingly Pushes Smaller Sizes as Consumers Fret About Calories: WSJ

Victoria’s Secret Has A Billion-Dollar Strategy For Casting Models: BusinessInsider

Cavernous Stores Wear on Forever 21; Teen Retailer Faces Challenge Filling Expansive Floor Space With Right Merchandise: WSJ

Will Tesla have to franchise? Elon Musk has said that Tesla may be easing up on its franchise policy. Here’s what it means for the company. Fortune

Where Wal-Mart Can’t Beat the Dollar Stores; Dollar General and Dollar Tree are better alternatives for exposure to the lower-income consumer. Barron’s

Daily Bamboo Innovator Insight: Wed 19 Nov 2014 – PayPal’s Peter Thiel: “Most people think originality is easy, but I think it’s actually really hard, and when you find it, it’s really valuable”


PayPal Cofounder Peter Thiel Loves This Job Interview Question; “Most people think originality is easy, but I think it’s actually really hard, and when you find it, it’s really valuable” BusinessInsider

How music education influenced Larry Page; The importance of timing in music has come to define the Google CEO’s approach to his company’s products: Fortune

How To Deal With Anxiety, Tragedy Or Heartache – 4 Steps From Research: Barking up the wrong tree

14 Quotes That Show The Ambition And Genius Of Google’s Larry Page: BusinessInsider

A founder’s epitaph: he was vitally engaged in his pursuits; The late retail designer Rodney Fitch embodied the greatest qualities of an entrepreneur: FT

Contemporary art is judged by its price tag not by aesthetics; We have lost the ability to assess art for ourselves and on its own merits: FT

The Purpose Driven Marketer: How Patagonia Uses Storytelling to Turn Consumers into Activists: FastCompany

6 reasons why everyone loves Big Hero 6: TODAY

10 Million Child Deaths Attributed to a Lack of Toilets: Bloomberg

Robert Shiller: Creativity, Corporatism, and Crowds: ProjectSyndicate

Why early-stage investing works for people and technology; The temptation to cut long-term investment in economic hard times stalks the private and public spheres: Guardian

A Successful M&A Considers the Human Element: HBR

How to avoid becoming a workaholic: Fortune

Advice from women in tech: ‘Be yourself and you’ll be legend’: Fortune

Ancient Prophecies Motivate Islamic State Militants; Battlefield Strategies Driven by 1,400-year-old Apocalyptic Ideas: WSJ

The Science of Slacking at Work: WSJ

Corporate fraud: rewards for whistleblowers make sense: TheAge

The trouble with mergers: Our advice from 1994 to lustful companies: Economist


The End of Copycat China: The Rise of Creativity, Innovation, and Individualism in Asia: Amazon, FT

Emergence: The Connected Lives of Ants, Brains, Cities, and Software: Amazon

Critical Mass: How One Thing Leads to Another: Amazon

Curiosity: How Science Became Interested in Everything: Amazon

Investing Process & Research

Deal Tips From Buffett and Berkshire’s Other Managers: NYTimes

Rob Terry’s exit from Quindell has called into question the judgment of several high profile City fund managers who repeatedly defended the entrepreneur. FT

An intriguing question for investors is whether any reliable link can be made between capital expenditure and share price performance. FT

The Three Factors That Make Corporate Fraud More Likely: ValueWalk

The Folklore of Finance: How Beliefs and Behaviors Sabotage Success in the Investment Management Industry; Active Managements Fees Top $600 Billion A Year: State Street: ValueWalk, PDF

The John Malone Complex – A Study in Financial Brilliance: ValueWalk, PDF

Is Historical Cost Accounting a Panacea? Market Stress, Incentive Distortions, and Gains Trading: SSRN

Unleashing Innovation; Using a sample of venture capital (VC)-backed initial public offering (IPO) firms, we study the effect of financial intermediaries’ tight leash on entrepreneurs’ innovation productivity: SSRN

Greater China

RMB1.3tn robotics market has China teeming with competition: WantChinaTimes

Reform Hiccup Leaves Some Classrooms in Guangzhou Sitting Empty: Caixin

Head of Troubled Li-Ning Co. Hands Baton to Company’s Founder; Jin-goon Kim, of investment firm Texas Pacific Group, steps down as Li Ning himself announces a new chief executive will be named in near future: Caixin

Why Shanghai-Hong Kong Stock Connect Was One-Way Road; The start of Hu-Gang Tong saw Hongkongers much more interested in mainland stocks than the other way around. Here is why: Caixin

Shanghai Stock Link Flows Plunge as CLSA Sees Ghost Train: Bloomberg

At Factory Waste Ponds, Fumes Choke Fantasies; Northwest China factories with wastewater evaporation ponds pledged zero-emissions and then failed miserably: Caixin

In Hong Kong, One-Bedroom Apartments That Could Fit in a Bedroom: NYTimes

China’s robust economic activity is only an illusion: Forbes

Many of China’s TV shows, films are rubbish, minister says: Reuters

Jack Ma Challenges China Stigma With Alibaba Bond: Bloomberg

China’s Gift-Bearing Evokes Ancient Ritual: WSJ

Mining’s $120 Billion Ore Bet Sours as Peak Steel Looms in China: Bloomberg

HK student opens yellow umbrella at graduation, is refused diploma: AsiaOne

Chinese Dream for IC Powerhouse Is Coming True: EETimes


The certainty of taxes would benefit business investment in India; Selective levies have deterred overseas companies considering doing deals in India: FT

In space-starved Mumbai, docklands provide room for a view: Reuters

Japan & Korea

Japan at the Brink; Japan’s multinationals adapt even as Abenomics falters. WSJ

Could This Be the End of Reform in Japan? Prime Minister Shinzo Abe’s policies may be coming undone, and with it Japan’s last chance at saving itself from national decline. WSJ

Better Economic Policy Won’t Save Japan: Bloomberg

Japan Inc. Still Has Its Head in the Sand: Bloomberg

Why Japan’s 8% Tax Mauled Economy as Europe Tolerates 20%: Bloomberg

Is Sony Too Big to Succeed? EETimes

‘Zombie companies’ crimping employment and investment in Korea: Maeil

Mobile game companies have become one of the biggest beneficiaries of the widespread use of phablets and tablets, with soaring stock values on the Kosdaq boosting the wealth of CEOs: JoongAng

Samsung axes $2.3bn shipbuilding merger amid shareholder pressure; Cancellation could complicate power transfer by founding family: FT, Bloomberg

Is CEO’s moonlighting hurting MCM? “MCM seems to focus on developing products for Chinese customers. For example, the company increased the production of gold or red bags, two colors favored by Chinese people” KoreaTimes

Hong Kong billionaire bets on Incheon Free Economic Zone: AsiaOne


Thai Exchange Plans Curbs on Speculation After Small-Cap Surge: Bloomberg

Tycoon Dhanin weighs buying back Tesco’s $10 billion Thai unit: Reuters

Jokowi’s Achilles Heel Found in Bumi to Berau Debt Stress: JakartaGlobe

How a late booking jammed the brakes on Trans-Cab’s IPO: BT

Medical Tourists Flock to Thailand Spurring Post-Coup Economy: Bloomberg

Suu Kyi Faces Extra Myanmar Election Obstacle; Myanmar parliament chief throws doubt on Suu Kyi’s presidential chances: WSJ, Reuters

Widodo Subsidy Cut Seen Threatening Fuel Profits in Asia: Bloomberg

S’pore investors settle Morgan Stanley rigged financial products law suit; “I was told by the agent that Pinnacle has issued so many series already, so what’s to worry?”: AsiaOne


FASB Weighs Delaying New Revenue Rule; Accounting standard setters may push back the effective date of new revenue recognition rules, says a FASB assistant director: CFO

Brazil vs Mexico: a tale of two scandals: FT

The curse of weak global demand; Feeble economic performance has occurred despite the most aggressive monetary policies: FT

Jeremy Grantham Calls the Next Market Top; The investing legend writes that the S&P 500 could gain another 10% before “crashing at it always does.” Barron’s

An Offshore Swan: Could the next financial crisis be sparked by China being pulled into the Currency War? SoberLook

Seven big U.S. companies paid CEOs more than Uncle Sam in 2013: Reuters

Hedge fund operator and currency mavenStephen Jen has developed a loose Ratio of Words to Actions (RWA) to apply to the world’s big-three central banks. WSJ

Russian Accountant Loses Tooth in Ruble Devaluation: Bloomberg

Anti-HFT Revulsion Grows: IEX Ties For Fourth In Dark Pool Trading Thanks To World’s Largest Wealth Fund: ZeroHedge

Flash Boys Raise Volatility in Wild New Treasury Market: Bloomberg

Cayman Islands Are Now America’s Biggest Foreign Investor: ValueWalk

Blackstone chases Buffett with ‘core’ private equity: Reuters


Peter Thiel: Uber is ‘most ethically challenged company in Silicon Valley’; Uber, a Start-Up Going So Fast It Could Miss a Turn: CNNNYTimes

Nine Entertainment boss David Gyngell has put regional TV stations on notice, saying their big-city counterparts won’t be needing them within five years. TheAge

Technology groups in a war to dominate the world of work; The war between the giants of the technology industry for the attention of the world’s office workers look like it is about to take an unexpected turn. FT

Why Silicon Valley Shouldn’t Be the Model for Innovation: HBR

Who could buy Netflix? Fortune

A Bend in Amazon’s E-Commerce River; Online Retail Giant Faces Tougher Growth Hurdles: WSJ

Software-Defined Networking Will Take Off in 2015: Verizon Enterprise CIO: WSJ

Soon to Be Single, eBay Gets Back to Shopping; President of eBay.com Marketplace Says Split with PayPal Will Reap Benefits: WSJ

Apple releases WatchKit for Apple Watch: TheAge

Encrypting Web site traffic could become easier next year: WaPo


Cost to Develop a Drug More Than Doubles to $2.56 Billion: Bloomberg

Tragedy highlights India’s fake drug crisis: FT

Beating Ebola Means Drinking,  Last Thing Patient Wants to Do: Bloomberg

A digital prescription for pharma companies; Pharmaceutical and medical-device companies have been slow to adopt digitization. Here are five reasons they should get moving. McKinsey

This Indian start-up could disrupt health care with its powerful and affordable diagnostic machine: WaPo

Energy & Commodities

Oil price rout to curb U.S. drilling costs even with mega merger: Reuters

Oil Below $80 Yet to Upset Bond Market Seeing Arab Wealth: Bloomberg

China Home Price Slump Sends Iron Ore Plunging To 2009 Lows (-50% In 2014): ZeroHedge

What Bourbon Producers Can Teach the Oil Industry: NYTImes

Iron Ore Bear Market Deepens as China Home Prices Spur Concern; “Construction accounts for about 50 percent of China’s steel demand, reflecting the importance of China’s property market to iron oreprices” Bloomberg

Consumer & Others

Urban Outfitters CEO Reveals The Brand’s Biggest Problem: BusinessInsider

In Overhaul, Pizza Hut Tries Adventurous Menu Offerings and a Dash of Irreverence: NYTimes

Winemaker Without Vines in View as Treasury Emulates Coke: Bloomberg

Daily Bamboo Innovator Insight: Tues 18 Nov 2014 – 10 brilliant quotes from Warren Buffett


10 brilliant quotes from Warren Buffett, America’s second-richest person: Fortune

Secrets of the Most Productive People: FastCompany

Here’s The Untold Story Of How Tesla Motors Got Its Name: BusinessInsider

11 Surprising Things That Affect Your Willpower And Decision Making: BusinessInsider

The beautiful bike path that was inspired by Van Gogh’s ‘Starry Night’: WaPo

Building a Fraud Resistant Organization: AccountingToday, PDF

The 7 Laws of Regenerative Enterprises: HBR

Finding the Right Metaphor for Your Presentation: HBR

The trouble with mergers: Our advice from 1994 to lustful companies: Economist

Nike’s Martin Lotti on Just Doing It; The Nike Football vice president and creative director talks about the importance of design, the future of shoes and the place where he’s happiest: WSJ

Inside Peter Thiel’s mind: The billionaire on Snowden, Twitter, and why competition is overrated: Vox

Radical change that starts with small steps at big companies; Only ‘top-down leaders’ are comfortable enough to liberate people to develop new ideas: FT

Arts and culture can go a long way to help revive Britain’s cities; The chancellor understands that our towns must have souls as well as sewers: FT

Korea’s poultry king Kim Hong-kuk, chairman of Harim Group with $4.3bn sales, buys Napoleon’s hat for $2.4m; “Chairman Kim, who in his youth raised 10 chicks that became the foundation of Harim Group, has always emphasized ‘Escaping the safety zone’ and a pioneering spirit and not to settle for the status quo.” JoongAng

Billionaire Plans Cure for Blindness as He Approaches 90: Bloomberg

Will Disney’s ‘Big Hero 6’ Be The Year’s Quietest Box Office Smash? Forbes

Top Women CEOs On How Bold Innovation Drives Business: Forbes

Ultimate Starbucks fan turns coffee cups into works of art; Cartoon lover Joshua Hara draws animals and cute pictures on his used takeaway cups: Telegraph

‘I find it very hard to price my work high’; Entrepreneur Louise Pocock, who teaches and creates her own hats, reflects on how to make a living from a traditional craft business: Guardian

End of communism not all good for Christianity: Vatican: Reuters

Elon Musk is Neo from ‘The Matrix?’ His cousin, SolarCity’s CEO, explains. WaPo

The 10 biggest R&D spenders worldwide: Fortune


Rethinking Positive Thinking: Inside the New Science of Motivation: Amazon, WSJ

Everyday Bias: Identifying and Navigating Unconscious Judgments in Our Daily Lives: Amazon

Zoom: How Everything Moves: From Atoms and Galaxies to Blizzards and Bees: Amazon, NYTimes

Investing Process & Research

Chinese Firm Says Bank Workers Are Investigated; NVC Lighting Alleges Ex-CEO Improperly Withdrew Funds: WSJ

Gotham casts a long shadow over Quindell; Quindell’s share price has never recovered since the attack by the US short-seller: Telegraph

The Revolving-Door of Sell-Side Analysts: A Threat to Analysts’ Independence? SSRN

Do Indian Business Group Owned Mutual Funds Maximize Value for Their Investors? SSRN

The Faustian Contract of Deep Value Investing: Wendl


GMO Quarterly: Is This Purgatory, Or Is It Hell? GMO

Is Stock Market Living on Borrowed Time? LBO king Wilbur Ross and Prem Watsa, the “Warren Buffett of Canada,” have their concerns.: Barron’s

Bonds: anatomy of a market meltdown; Fall in Treasury bond yields has left investors asking if world’s safe haven needs shoring up: FT

Mega-Mergers Popular Again on Wall Street: NYTimes

Africa Makes Strides in Corporate Accounting, Governance; The Nigerian Stock Exchange has launched a corporate-governance rating system that subjects its 190 major companies to a rigorous assessment: WSJ

The Fund that Reshaped the Gold Market; Rise and Fall of GLD Exchange-Traded Fund Mirror’s Metal’s Appeal: WSJ


China faces debt crunch as property values fall; Chinese property accounts for a third of Asian high yield issuance: FT

Beijing crackdown fails to stem inflated invoicing on exports: SCMP

China’s internet TV sites in $1 billion battle for foreign shows: Reuters

China’s blitz against corruption hits some U.S. travel companies: Reuters

Competition for analysts heats up as credit risks rise in China: Reuters

Reforming China’s Commanding Heights: Michael Spence: Project Syndicate

Lopsided Link Shows Chinese Rejection of Hong Kong Stocks: Bloomberg

McDonald’s Enlists Orcs and Elves in Chinese Food Fight: Bloomberg

Hong Kong Bourse Loses 7.1% in Two Days as Link Optimism Fades: Bloomberg

Haixin Enters Bankruptcy Proceedings Amid Steel Industry Woes, making it the largest mill in the nation to enter the procedure: Bloomberg

Tingyi’s a Staple for Your Pantry – and Portfolio; Noodle giant’s shares are marked down after recent scandals, but margins and profits are ready to serve: Barron’s


In India, Growth Breeds Waste: NYTimes

Billionaire Ambani Makes Quiet Entry Into India’s E-Commerce Sector: Forbes

Modi Believers Lock in Wagers on India Stocks: Chart of the Day: Businessweek

Two competing innovators join hands to light up India’s dark belt; By slowly refining a distribution model, Greenlight Planet has been rapidly selling solar lamps to villagers: Forbes

Why Realty Did Not Bite Piramal; Deploying Rs 12,000 crore in a slowing real estate market is no easy task. Under the leadership of Khushru Jijina, Piramal Fund Management may have cracked the code: Forbes


Abe $1 Trillion Gift to Stock Market Shields Recession Gloom: Bloomberg

The Failure of Abenomics; Japan’s Keynesian Recession: The familiar advice to spend more and raise taxes fails again. WSJ

Disappointment Becomes Norm for Global Growth as Japan Contracts: Bloomberg


Samsung gives cold shoulder to humanities majors: JoongAng

Samsung Moving Phone Engineers a Lesson in Speed for Sony: Bloomberg

Poäng! IKEA Hits Headwinds In Korea: WSJ

Bad News for Kospi Is Good News for Korean Stock Brokers: Bloomberg


The SME advantage in Asian markets; SMEs can draw lessons from OSIM, Ichitan and MAS, which are no longer small firms but global players that dominate markets which MNCs will find hard to penetrate: BT

Singapore to Face Fire Sales With Home Curbs, Developer Says: Bloomberg

Return of the Myanmar Military? NYTimes

H.E. U Soe Thane: Myanmar Needs Time: NYTimes

Property developer Sawasdi Horrungruang has decided to part ways with Hemaraj, the company he founded and struggled with after the 1997 financial crisis, by selling the family’s 15-per-cent stake for Bt6.55 billion to WHA: Nation

Jokowi Proves Himself as a Man of Action: JakartaGlobe

Boom Times Over, But Telco Growth Still Unfinished In Indonesia: JakartaGlobe

Auto Sales Slump in Indonesia on Economic Slowdown: JakartaGlobe

Ahok the Bold ; Acting Jakarta governor Basuki “Ahok” Tjahaja Purnama has proven himself to be a fearless figure when it comes to defending his principles: JakartaPost

Singapore’s Trans-Cab halts IPO over rise in insurance premiums: TODAY


Angela Merkel, Narendra Modi take time to check out Australian innovation: TheAge


When wireless worlds collide: As Wi-Fi hotspots proliferate, who needs cellular wireless? Economist

Alibaba: Here’s Why Apple Needs Us In China: BusinessInsider

Microsoft Is Sick Of PowerPoint, Too: BusinessInsider

Kings of the Cloud: The leading companies in the tech industry are reworking their business models to deliver everything-as-a-service. Strategy@

Q&A: Alibaba Senior Executive On Apple, M&A and U.S. Plans: WSJ

iProperty’s Patrick Grove to sell Australian apartments online, as Tesla proves trend for ‘$100,000 clicks’: BRW

Researchers Announce Advance in Image-Recognition Software: NYTimes

Uber Vies For Users’ Hearts And Ears With Spotify PartnershipUber Vies For Users’ Hearts And Ears With Spotify Partnership: Forbes

The Alibaba-Effect: Index funds are considering rule changes that would allow them to own Alibaba. Barron’s

Warby Parker Adds Storefronts to Its Online Sales Strategy: WSJ

With funky name but big demand, BlaBlaCar eyes global push: Reuters

Intel’s upscale bracelet has Google alerts, AT&T data plan: Reuters

Amazon Moves to Extend Cloud-Computing Dominance: NYTimes


Study Finds Alternative to Anti-Cholesterol Drug: NYTimes

World’s top drugmaker Novartis takes aim at tech, casting their net beyond biotech into the wider pool of wearable, or even edible, technology: Reuters

Energy & Commodities

$100 Billion Deal Day Evokes 1998’s Exxon-Mobil: Bloomberg

Youngest Oil Tycoon Finds Fortune After Washout as Trader: Bloomberg

Six years ago, Bryan Sheffield had no energy industry experience. Today, he’s on track to become a billionaire before his 40th birthday. How it happened is one of the greatest Texas oil stories of all time: Forbes

Consumer & Others

There Are 2 Main Differences Between People Who Eat At Chipotle And McDonald’s; McDonald’s customers are “motherly,” “bighearted” and “loving”;  Chipotle fans are “imaginative,” “outgoing,” and “confident”: BusinessInsider

Goldman Sachs: Supermarket groups must close one in five stores: Telegraph

Bamboo Innovator Weekly Insight – Buffett’s (Non)Cash-Hitter and the Wide-Moat Asian Beauty Creator

 “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 | November 17, 2014
Bamboo Innovator Insight (Issue 59)

§  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 “Inside the Leader’s Mind” 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 All,

Buffett’s (Non)Cash-Hitter and the Wide-Moat Asian Beauty Creator

“Instead, our problem has been that we own a truly marvellous collection of businesses, which means that trading away a portion of them for something new almost never makes sense. An example from sports will illustrate the difficulty we face: For a baseball team, acquiring a player who can be expected to bat .350 is almost always a wonderful event — except when the team must trade a .380 hitter to make the deal. Because our roster is filled with .380 hitters, we have tried to pay cash for acquisitions, and here our record has been far better.”

– Buffett in his 1997 Annual Letter to Shareholders

“I will be on the phone and out there on a regular basis to convince them that we’re still a very good investment.”

– P&G’s CEO A.G. Lafley at the analyst meeting after the Duracell divestment to Buffett’s Berkshire Hathaway who paid for the deal using P&G shares instead of cash

Is Buffett partly defeated by the “Water Sleeping Pack” and “Cushion Compact” when he signaled that P&G (PG US, MV $238bn) is possibly overvalued by using $4.7bn worth of its stock to acquire P&G’s Duracell business into Berkshire Hathaway (BRK/A, MV $358bn) despite having accumulated a cash hoard of over $62 billion?

While the billion-dollar tax savings is an important factor in the deal since BRK’s cost basis of P&G was $336m and corporate capital gains are taxed at 35%, the beauty engine behind P&G’s growth, led by the billion-dollar Japanese cosmetics brand SK-II, looks to have slowed down. P&G’s beauty business contributed 24% and 23% of sales and earnings respectively in FY2014, flat since 2011 and down from 30-31% in 2007. In Korea, one of the largest beauty markets in Asia, the import of Japanese cosmetics had plunged over 22% since 2012 and SK-II is one of the brands hit hardest. SK-II is considered a must-have item among adult career women despite the relatively high prices.

Since the Fukushima nuclear incident in Mar 2011, savvy Korean and Chinese women have increasingly stopped using Japanese cosmetics due to safety concerns. The Kanebo incident in 2013 had also shattered some confidence after its skin-whitening products left ugly blotches on the faces of over 15,000 customers. Kanebo is Japan’s second-largest cosmetics firm with more than a century old history and was acquired in Feb 2006 by Kao Corp (4452 JP, MV $20bn) after the infamous Kanebo/PwC-ChuoAoyama accounting fraud in 2004-05 that was comparable to the Enron scandal in size and social impact. Amid falling sales in Korea, Japanese cosmetics firm Orbis (4927 JP, MV $2bn) has shut its Korean office in Feb this year. Japanese brand DHC has closed over 10 outlets in Korea.

The losers are Japanese cosmetics and P&G’s SK-II. The winner can be found in visa-free Jeju Island, 60 miles off the southern coast of South Korea. 2.3 million Chinese tourists have stomped the island this year, up by nearly 50% a year ago. At the Shilla Duty Free Jeju, the island’s largest duty-free store owned by Hotel Shilla (008770 KS, MV $3.3bn), they are snapping up Korean cosmetics that include the “Water Sleeping Pack”, a gel-like nighttime facial moisturizer and one of the hottest cosmetic products under the brand Laneige that is owned by Korea’s largest cosmetics maker AmorePacific Corp (090430 KS, $11.8bn) and the holding company AmorePacific Group (002790 KS, MV $8.1bn). Another hugely popular product is the world’s first “cushion compact”, a mixture of colored foundation, sunscreen and moisturizer that users apply by touching a foam pad to a spongy, liquid-filled air cushion that blocks UV rays and covers imperfections naturally. Unlike BB cream, it can be reapplied throughout the day. Developed by AmorePacific’s research labs in 2008, women around the world have snapped up more than 30 million of them. AmorePacific reported 1H14 duty-free sales in South Korea to customers from China, Taiwan and Hong Kong surged 184% versus 1H13. Korean cosmetics are arguably the hottest category in travel retail worldwide. AmorePacific has also entered the global duty-free market since May 2010 in Singapore’s Changi Airport Terminal 3 with the Laneige shop.

AmorePacific Group (KOSPI: 002790 KS) Stock Price Performance, 1995-2014

AmorePacific Group

Value investors in Asia cannot look purely at quant “valuation” metrics since many business models are “permanently impaired”. Once-successful “Stage 1” entrepreneurs have scaled their companies by multiple-folds to say under a billion dollar in market cap in the past decade. But as a result of them mishandling risks, or preventing them in the first place through business model design, the companies fail to make the successful transition from a billion to $10bn in market value and are stuck. Often, these successful, achievement-oriented entrepreneurs start to “stray” as they find it easier to seek “growth” by engaging in private business interests outside of the listed vehicles, particularly in property development. Thus, under KB Suh’s leadership, AmorePacific is an exemplary example of a Bamboo Innovator who has been able to stay focused and give a good fight to the resourceful MNCs.

We often wondered aloud and lament at the low valuations in Asia as compared to the West. Alfred Chandler’s 1977 Pulitzer-Prize masterpiece, The Visible Hand: The Managerial Revolution in American Business, offered timeless practical insights and fundamental lessons for diligent value investors to stay ahead of the curve in Asia, uplifting us beyond the unsustainable realm of trading in and out and manipulating share prices and volumes in syndicates. Chandler narrated the emergence in 19th century America, the age of robber barons, of firms which transform themselves by “organizational innovation” and “managerial innovation” to generate and sustain competitive advantage – to become Bamboo Innovators like AmorePacific.

Besides GE in 1890s…

<Article snipped>

Warm regards,


Managing Editor

The Moat Report Asia


SMU: http://accountancy.smu.edu.sg/faculty/profile/108141/Kee%20Koon%20Boon

 To read the exclusive article in full to find out more about the story of AmorePacific and KB Suh’s leadership, and Alfred Chandler’s business wisdom for value investors in Asia, please visit:

·        Buffett’s (Non)Cash-Hitter and the Wide-Moat Asian Beauty Creator, Nov 17, 2014 (Moat Report Asia, BeyondProxy)

 A new monthly issue of The Moat Report Asia is now available!

Access the in-depth idea presentation:


Daily Bamboo Innovator Insight: Mon 17 Nov 2014 – ‘Death bond’ investors face heavy losses up to 70 per cent of their original investment and cannot access their money for at least three years


‘Death bond’ investors face heavy losses up to 70 per cent of their original investment and cannot access their money for at least three years: FT

Buffett’s family business tests the ties that bind; Lawrence Cunningham’s ‘Berkshire Beyond Buffett’ outlines an orphanage for the corporate homeless: FT

7 steps to becoming the next Leonardo da Vinci: Try and obsess over something: Today

The Future of Writing In the Age of Information: FarnamStreet

How to Make a Bestselling Book: Atlantic

Ben Horowitz Lecture 15: How to Manage (Anotated Transcript): StartupClass

Is Entrepreneurship Addictive? Forbes

‘Don’t think, just play’: MIT engineers football success: Reuters

The Knowledge, London’s Legendary Taxi-Driver Test, Puts Up a Fight in the Age of GPS: NYTimes

If active managers’ fees were a country, it would have the GDP of Switzerland: TheReformedBroker

Marcus Aurelius: Debts and Lessons: FarnamStreet

How This 25-Year-Old Made $66,000 In A Month By Teaching An Online Course: BusinessInsider

“I don’t know” and the need for humility in an unprecedented era. InstitutionalInvestor

Follow These 10 Steps To Achieve Transformational Change: Forbes

The Great Escape Business; In troubled times, corporate evacuation planners are thriving. Fortune

Small businessman’s Chinese Dream; public thought he was crazy to give up an engineering job to start a small grilled pig trotter business in Shanghai and now he earns over 8x than before; two-thirds of sales were ordered online: AsiaOne

Spared in war, Italy’s ‘greatest picture’ saved again by benefactor: Reuters

Renowned Buddhist leader Sik Kok Kwong, co-founder of Hong Kong’s largest Buddhist organization, has died at the age of 95. TheStandard


How Great Leaders Think: The Art of Reframing: Amazon

Learn or Die: Using Science to Build a Leading-Edge Learning Organization: Amazon

Investing Process

Norway Wealth Fund Outsmarts Flash Boys as Algorithms Abandoned: Bloomberg

Asia’s Top Investment Managers Focus on Fundamental Value: InstitutionalInvestor

Greater China

Now absolutely everyone can invest in China’s risky, fraud-ridden stock market: Quartz

Shanghai Stocks Out of Step With World Is Key to Allure: Bloomberg

Exploring China’s stock market: Even non-investors can glean insights from the financial statements of the A-Share “small-caps”. Time to brush up on your Chinese and separate the wheat from the chaff: BT

It’s not art thieves but tax evaders the Chinese gov must worry about: WantChinaTimes

Rinehart’s Formula For Success: Feed the Babies; Got Milk? Australian billionaire’s deal to supply China with baby formula shows milk is vital to every portfolio. Barron’s

With 2 New Jets, Chinese Manufacturer May Become Global Contender: NYTimes

China’s New Old Financial Capital; A stock-exchange deal shows Hong Kong’s advantage over Shanghai. WSJ

China’s Shadow Banking Grinds To A Halt As Bad Debt Surges Most In A Decade: ZeroHedge

Chinese policymakers eye e-commerce as linchpin of growth: Reuters

Ting Hsin taking heat over NT$3 billion promised Food Safety Fund (食安基金) to take responsibility for their actions in the food contamination scandal. ChinaPost

Pepsico’s Chinese partner Tingyi hit by downturn: FT

How Taiwan Will Make Its People Think Harder To Stoke The Economy: Forbes


Modi Moves Like Jagger as Indian Diaspora Flocks to Sydney: Bloomberg

Indian government: The full lotus; Smaller government? That’s a stretch: Economist

India’s Narendra Modi faces awkward fiscal challenge: FT

India Seeks to Cash In on Global Demand for Ancient Remedies: JakartaGlobe


Tiger Economy Loses Its Roar as Thailand’s Exports Slump: Bloomberg

No one home as Singapore executive condominiums wait for occupants: AsiaOne

Japanese entertainment firms flock to Thailand: Nation

Anies’s Education Reform Quiets Critics; Stressful Exams: Teachers and students are eager to change national exams, which don’t reflect student achievements: JakartaGlobe

Nathaniel Rothschild, the British financier and scion of a centuries-old banking dynasty, has proposed debt-stricken Asia Resource Minerals raise funds in a share sale next year that he’s prepared to underwrite. JakartaGlobe

Smartphones Will Mediate the Future Business Models in Indonesia: JakartaGlobe

Indonesia’s ‘Energy Mafia’ in the Crosshairs: JakartaGlobe

Jokowi Goes All-In on Fuel Subsidies; It’s time to allocate the money spent on the subsidy to more productive uses: JakartaGlobe

Dicey times ahead for gaming sector; The gaming story for the Genting group is far from over, although the jackpot remains a tad elusive for now. TheStar

In lean times, Singapore shopping malls face the problem of plenty: AsiaOne


Corporate Japan keeps production abroad; Aggressive monetary easing is undermining the yen, but that is not stopping Japanese companies from producing more of their goods overseas. FT

Weak yen fuels Japan Inc: FT

Japan’s Abe should seek more than a mandate if he calls election; It may take a tough tax on accumulated earnings to force businesses to act: FT

Abe is a man on a mission – destination unknown: FT


Victims in Korea’s pyramid scheme team up to track down con artist: JoongAng

Samsung in internet of things push as phone profits fade: TheAge

IKEA pricing under fire in Korea; IKEA seems to be mimicking Korean conglomerates that “regard local consumers as pushovers.” KoreaTimes

Yen weakness painful for S. Korean companies: Maeil

The Korean government pledged to grow a regional cluster of food businesses, called Foodpolis, into a hub of Northeast Asian food markets. KoreaTimes

Fortress Korea car market cracks under German luxury barrage: Reuters


Ultranet’s costly failure an education in politics and procurement; Good intentions and vision undermined by cost-cutting and flawed bidding process. TheAge

Australian stocks shine as global dividends get set to hit record $1.4 trillion next year: TheAge


BoE to come up with anti-orthodox research as a “bulwark against hubris, overconfidence and group-think”. FT

Stringent rules for hedge funds make the financial system fragile; Charging 2 per cent to hold assets when returns are low is wrong: FT

A Call for Stricter Rules for Bankers in Britain: DealBook

Rising dollar America’s currency, everybody’s problem: Reuters

We Need Stock Prices to Fall 25%; At Current Prices, Investors Should Have Mixed Feelings: WSJ


Virtual Reality Fails Its Way to Success; For decades, V.R. was a complete flop. But now with the nausea-free Oculus Rift, it may be a total win: NYTimes

Little-known Taiwanese chip designer spawns low-priced smartphone boom: Reuters

mAirbus patents flying doughnuts; Experimental design could redefine widebody aircraft: FT

Fuel-cell cars will be commercially viable by 2025: Bosch executive: Reuters

UPS Sees Wider Margins as E-Tailing Nears Business Shipping: Bloomberg

Can Lenovo replicate PC success in smartphone sector? WantChinaTimes

BYD considers joining Ramos to enter tablet computer market; BYD seems to have missed the golden period for entering the consumer electronics market and has put its investment at risk for entering the mature mobile phone market: WantChinaTimes

The Kingmaker Strategy: Pioneered By The Chinese Internet Giants, Coming To America? TechCrunch

Many teachers say the ClassDojo app helps them automate the task of recording classroom conduct, but some critics say such apps are being adopted without sufficiently considering the ramifications for data privacy and fairness. NYTimes

The Web Is Dying; Apps Are Killing It: WSJ

Evernote Chief Executive Phil Libin is focused on making people more productive during a time of rapid technological change. WSJ


Ebola Vaccine Challenge: Motorbikes and Kerosene Fridges: Bloomberg

Alzheimer’s Test Detects Disease Decade Ahead of Onset: Bloomberg

Electrical Scalp Device Can Slow Progression of Deadly Brain Tumors: NYTimes

Anticlotting Push Urged for Heart Patients With Stents: WSJ

Corruption tars drug industry drive to improve access for poor: Reuters

Energy & Commodities

José Manuel Entrecanales, Acciona CEO: establishment eco-warrior; Spanish conglomerate boss does not regret costly bet on renewables: FT

World’s first oil well still bubbling up black gold in Poland: AsiaOne

Falling Oil Prices Test OPEC Unity: WSJ

Shale Boom Helps North Dakota Bank Earn Returns Goldman Would Envy: WSJ

Risk of sour grapes as wine prices continue to disappoint: FT

Diners could soon be paying more for their plate of sushi as the price of fishmeal, the crucial feed for shrimp, prawns and salmon leaps to an all-time high. FT

Standard Chartered Is Stung by Mining Loans; Bank’s Push Into Lending to Commodity Firms Has Contributed to a Jump in Its Soured Loans: WSJ

Consumer & Others

Estee Lauder Cos., seeking to capitalize on Kendall Jenner’s 30 million social-media followers, hired the model to represent its flagship cosmetics brand worldwide. Bloomberg

Law gets fashionable as labels learn to love litigation: France24

Daily Bamboo Innovator Insight: Sun 16 Nov 2014 – The New China? Surging exports are making Vietnam, Cambodia, Laos, and Myanmar dynamic economic rivals to their much larger neighbor


Welcome to the Failure Age! In this economy, losers will be the biggest winners. NYTimes

Three years ago, Matt Haag was flipping burgers at McDonald’s. Today he makes his living playing video games and has 1.5 million YouTube subscribers and a million-dollar income: NYTimes

How successful people stay productive: Quartz

3 Reasons You Can’t Just Ask Customers What They Want: TechCrunch

One way to lose money even when you’ve made 5000% on your home: FP

Why You Don’t Want to Give Financial Information to All of Your Investors + How founders get screwed on convertible notes: Both Sides of the Table

Lessons from rainbow: Even in the midst of an impending storm, something beautiful and colourful can emerge. TheStar

Amanda Palmer on the Art of Asking and What Thoreau Teaches Us about Accepting Love; “You’re an artist when you say you are. And you’re a good artist when you make somebody else experience or feel something deep or unexpected.” BrainPickings

Rewriting the Book of Belonging: Anne Lamott on the True Gift of Friendship and the Uncomfortable Art of Letting Yourself Be Seen; “Trappings and charm wear off. Let people see you.” BrainPickings

The Language of Lying: Animated Primer on How to Detect Deception: BrainPickings

Diane Ackerman on What Working at a Suicide Prevention Hotline Taught Her about the Human Spirit: BrainPickings

Adrienne Rich on Lying, What “Truth” Really Means, and the Alchemy of Human Possibility: BrainPickings

The Fluid Dynamics of “The Starry Night”: How Vincent Van Gogh’s Masterpiece Explains the Scientific Mysteries of Movement and Light; “In a period of intense suffering, Van Gogh was somehow able to perceive and represent one of the most supremely difficult concepts nature has ever brought before mankind.” BrainPickings

The Day Dostoyevsky Discovered the Meaning of Life in a Dream: BrainPickings

Showroom vs. Sanctuary: Rebecca Solnit on What Our Dream Homes Reveal about Our Inner Lives: BrainPickings

The Day Dostoyevsky Discovered the Meaning of Life in a Dream: BrainPickings

Pico Iyer on What Leonard Cohen Teaches Us about Presence and the Art of Stillness; “Faith is the ability to honor stillness at some moments, and at others to ride the passion and exuberance.” BrainPickings

Failure Has Never Been More Successful; With Fuck-Up Nights and Other Storytelling Venues, People Are Sharing Stories of Business Disasters Like Never Before: Fast Company


The Innovation Paradox: Why Good Businesses Kill Breakthroughs and How They Can Change: Amazon, CFA


Swat the “flies” dead; In China many “flies”, political jargon for corrupt low-ranking officials, have grown bigger than the tigers by feeding on money. Xinhua

Beijing denies blocking G20 graft initiative on shell companies and hidden assets: SCMP

Loss prevention safeguards key to SOE reform in China: WantChinaTimes

Economic integration: The flying factory; Asia has built a web of economic interdependence which China would be ill-advised to unravel: Economist


Change Of Guard At Havells – India’s Leading Electrical Goods Company: Forbes


‘Godfather’ of Abenomics: Japan’s sales tax hike must be delayed; Koichi Hamada, one of the key architects of Abenomics, says Japan’s “Ponzi game situation” will be made worse if policymakers go ahead with second hike: Telergraph


The New China: Surging exports are making Vietnam, Cambodia, Laos, and Myanmar dynamic economic rivals to their much larger neighbor. Barron’s


Aussie fat cats rake in super-sized fees; Brycki’s study of 496 of Australia’s largest managed funds found that no less than 45 per cent of returns were frittered away in fees in five years: TheAge

Aussie Budget cuts spark fears of muzzled watchdogs: TheAge


Banking is changing, slowly, but its culture is still corrupt: Guardian

Height of ambition, or of folly? London’s rising skyline knows no limit: Guardian

Keeping Active: The $2 trillion exchange-traded fund industry offers specificity and flexibility, but these experts haven’t ruled out active management. Barron’s

Pandora’s Box Or Panacea? Lessons From The U.K.’s Liberalization Of Law-Firm Ownership: Forbes

Oil-Producing Countries’ Currencies Are Getting Crushed; oil exporters are now pulling liquidity out of financial markets rather than putting money in: Zerohedge


Henry Blodget: Now I Know Why Investors Are Going Hog Wild About Uber; How Uber Is Changing the U.S. Economy Like No One Ever Imagined: BusinessInsider, TheStreet

Apple Pay Gives Glimpse of Mainstream Appeal for Mobile Payments: NYTimes

Energy & Commodities

In Oil’s Slide, Echoes of a Fall; Adapted From the Paperback Edition of ‘The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters: WSJ

Oil and water: North America’s energy revolution will have a ripple effect around the Pacific: Economic Times

Consumer & Others

Supermarkets could start to close, warns Waitrose boss; The ‘Big Four’ grocers may be forced to close existing stores as the industry struggles to cope with falling sales and profits: Telegraph

Mike Ashley looks to add Kitbag to sportswear empire; Sports Direct is circling Findel’s Kitbag, which sells replica football strips for major teams including Manchester United: Telegraph

Savile Row tailor fears overseas threat to rich tapestry of tradition; Shirtmaker believes buyouts detract from street’s fashion cachet, with only two family-owned tailoring houses left on Savile Row: Guardian

Carolyn McCall’s easyJet success could catch the eye of a retailer: Telegraph

Caesars warns of potential casino bankruptcy: Fortune

Brunswick, the maker of Boston Whaler boats and Mercury engines has restructured, which is beginning to pay off. Barron’s

Cummins: Plenty of Gas in the Tank: Barron’s

Vail Resorts’ CEO: Transforming the Business of Skiing:  Barron’s

McDonald’s Won’t Buy Simplot’s GMO Potato: WSJ

Investing Process

A Dozen Things I’ve Learned From Henry Singleton About Value Investing & Venture Capital: 25iq

Top Lessons Learned From Great Angel Investors: RobGo

Building a Better Beta: Combining Fundamentals Weighting, Low Volatility, and Momentum Strategies: Research Affiliates

The Lesson of Forex Trading: Learn From Your Losses: WSJ

Daily Bamboo Innovator Insight: Sat 15 Nov 2014 – Oranges, lemons and forex: How to understand the market-rigging scandal


Oranges, lemons and forex: How to understand the market-rigging scandal: Medium

The importance of sparking entrepreneurial spirit in family businesses: FP

Google CEO on moonshots: Find a ‘zero million dollar’ research problem; To succeed at a moonshot, you need curiosity, impulse, and a problem that no one seems to be investing in. Fortune

13 Misconceptions 20-Somethings Have About Success: BusinessInsider

This 5-Year-Old Genius Just Aced A Computer Science Test From Microsoft; The boy, now 6, is officially a Microsoft Certified Professional which is highly regarded in the information technology industry: BusinessInsider

Prospects for growth: An interview with Robert Solow; The economist who won a Nobel Prize for advancing our understanding of technology looks at the past and future of productivity-led growth.: McKinsey

Thinking Like a Writer: Steven Pressfield

9 Powerful Leadership Lessons From The US Military: BusinessInsider

The Man Who Made the Modern Music Industry; Ralph Peer became the father of country through sheer commercial calculation: Southern folk music, he realized, was a vast untapped well of copyright-free songs: WSJ

The Life of Ivan Pavlov: His discoveries fueled grandiose hopes of curing psychiatric illness and breeding humans with more refined nervous systems—in short, of saving the world through physiology. WSJ

Nike’s Martin Lotti on Just Doing It; The Nike Football vice president and creative director talks about the importance of design, the future of shoes and the place where he’s happiest: WSJ

Where to Look for Insight: HBR

Being Happy at Work Matters: HBR

Bring Agile to the Whole Organization: HBR

How to Motivate Yourself When Your Boss Doesn’t: HBR

Why No One’s Reading Your Marketing Content: HBR

John Kotter (2001): What Leaders Really Do; The idea of getting people moving in the same direction appears to be an organizational problem. But what executives need to do is not organize people but align them. HBR

Galleons and gunships: Pacific history has been defined by bullies enforcing their rules: Economist

Large family businesses are in decline in Spain, but their ability to innovate has renewed interest in the sector. CampedenFB

Finding Our Place in the Stars; The physicist who kept the ‘Interstellar’ science sharp talks about black holes, space travel and his optimistic vision of human possibility. WSJ

The Classical Roots of ‘The Hunger Games’; The blockbuster film franchise reaches back to the myth of Theseus, ancient Greece and Rome, and the very foundations of Western culture: WSJ

Do You Want To Know About Your Brain? New research suggests many peopledon’t think that much about brain science. Should they? NYTimes

Is Quantum Entanglement Real? Einstein thought not. But experiments suggest so. NYTimes

How To Make Transparency Part Of Organizational Culture: Forbes

How ColaLife learned to think outside the crate; The award-winning charity used to distribute medicines packaged with Coke bottles to remote rural areas, but it had to adapt and move on as it became more successful: Guardian

Demand-based pricing strategy: A matter of avoidance or appreciation; Uber reintroduced the world to the basic economic theory of dynamic pricing when demand and supply are at play, naming it “surge pricing”. Nation

A Malaysian company called Heart and Shawl is using e-commerce to change the way headscarves are priced and the way they are acquired by Muslim women. TheStar

‘The Art of Things’: Pioneering Product Design; “The industrial revolution was made by engineers,” she writes. “Today it is the designers who are building machines.”: WSJ

Seth Klarman: The Patient Investor: ValueWalk

Multitasking: No more than a mirage? AsiaOne

Sick of scams: but what is the cure? AsiaOne


China finance official says shadow banking major issue: Reuters

China Busts Underground Banks With $23 Billion Transactions: Bloomberg

The Not-So-Mighty Chinese Consumer: WSJ

NQ Mobile Inc Dumped By Uber Bull Oberweis: ValueWalk


Three megatrends for Asean growth: TheStar

Sleepless in Singapore; The property market in Singapore, described by a developer “to be in a (state) of slumber” and by a Singaporean analyst that it “could get worse”: TheStar

More luxury homes go under the hammer as defaults spike in Singapore: Today

Japan & Korea

Why Subaru’s Profit Is Surging; Weaker Yen, Sluggish Demand at Home Gives Big Car Exporter Strong Lift: WSJ

Samsung SDS strong debut frees cash for Lee’s successors; Samsung SDS became the 5th most valuable company on the South Korean bourse with a market capitalisation of about US26bil: TheStar


Jim Rogers On Putin, His Suspicions About Oil Prices, And Why 26-Year-Olds On Wall Street Have The Biggest Advantage: BusinessInsider

“World’s Richest Restaurateur” Sees An Imminent Crash In America’s “Crazy” Real-Estate Market: ZeroHedge

Economic integration: The flying factory; Asia has built a web of economic interdependence which China would be ill-advised to unravel: Economist

A Once Bullish Crispin Odey Fears Recession In Emerging Markets: ValueWalk

Spreading deflation across East Asia threatens fresh debt crisis; Asia’s currency skirmishes are happening in a region of festering grievances and territorial disputes, with no Nato-style security structure to dampen down fires: Telegraph

Corporate buybacks fuel all-time highs – but for how long? US companies will buy $450bn of their stock this year, but when will this become too expensive? FT

Regulation: Banks count the risks and rewards; Crackdown on money laundering threatens to leave parts of developing world cut off from global finance: FT

Mexico Hit by Unrest and Scandal; Mexico’s Spreading Unrest and Sense of Lawlessness Are Shaping Up as Major Political and Economic Challenges to President Enrique Peña Nieto: WSJ


What Steve Wozniak Got Wrong About The iPhone 6; Apple is almost never first-to-market in any product category. Their strategy is to come up with dramatic, generational improvements to products that others have done not as well. BusinessInsider

Kinpo’s (金寶) subsidiary –YZprinting unveiled its new 3D Food Printer yesterday, which allows users to prepare healthy and delicious snacks simply by feeding food ingredients into the machine. ChinaPost

Is YouTube the new television? Why the video website is rewriting the rules of broadcasting: FT

Twitter Is Junk. Why Are You Surprised? Bloomberg

Russia plans alternative version of ‘Wikipedia’: Reuters

Apple Could Swallow Whole Russian Stock Market: Bloomberg

Sam Jain’s CheapOair is really taking off; His CheapOair website has kept its focus in air tickets-and human customer service. Fortune

How Formula One Teams Are Using Big Data To Get The Inside Edge: Forbes

CHART OF THE DAY: Mobile Messaging Is Poised To Overtake Social Networks: BusinessInsider

Apple doesn’t own applepay.com: Fortune

Google Glass future clouded as some early believers lose faith: Reuters

Marc Andreessen: the ’90s Had It Right; In a Q&A at WSJD Live, the Venture Capitalist Said the Dot-Com Crash Was Catastrophic but the Ideas Weren’t: WSJ

Jualo, in Emulation to eBay, Woos Indonesia’s Secondhand Market: JakartaGlobe

BlackBerry Has no Immediate Plans to Crack ‘Sensitive’ China Market: JakartaGlobe

Stanley Gibbons enters the internet age with stamp auction site; Stamps worth less than £50 can now be bought and sold via the philately auctioneer’s online marketplace: Guardian

5 Ways Product Design Needs to Evolve for the Internet of Things: HBR


The Dengue Fever Scourge; Vaccines in the pipeline could help control a pandemic that sickens millions each year. NYTimes

In India, Latrines Are Truly Lifesavers: NYTimes

What the U.S. Can Learn From India and Brazil About Preventive Health Care: HBR

Energy & Commodities

Shipbrokers in merger talks after 30% plunge in oil price; Clarkson hoping to acquire Platou, while Icap and Howe Robinson also say they are considering their options: Guardian

Oil price slump to trigger new US debt default crisis as Opec waits; Falling oil prices and and US shale drillers drowning in a sea of debt could be the spark for a new credit crunch: Telegraph

Plunging oil price triggers warning of defaults and ‘distress’ in the energy sector; Who will blink first as global oil prices collapse? FP1, FP2

How a Halliburton-Baker Hughes deal would shake up the Canadian oil field services market: FP

Proposed merger of oilfield firms poses challenge to Schlumberger: Reuters

IEA sees new era, no quick rebound in oil prices: Reuters

There Will Be Blood – How The Fed Has Flooded The Shale Patch With Junk Debt: ZeroHedge

The Fall of a National Champion: Petróleo Brasileiro offers an epic lesson in how to squander a windfall. Petrobras Scandal Widens, Earnings Delayed; Former Engineering Director at Brazil’s Oil Firm Arrested Along With 17 Others; Shares Plunge: WSJ1, WSJ2

Cotton stockpiles are swelling so large that there will be enough in global warehouses to make about 23 billion pairs of jeans, or three for every person on the planet. The glut sent prices to a five-year low: Bloomberg

Taming the Wild Tuna: Why Farmed Fish Are Taking Over Our Dinner Plates: WSJ

Consumer & Others

Wei family to sell their Taipei 101 shares? WantChinaTimes

McDonald’s CEO: Here’s Why We Don’t Want To Be Like Chipotle: BusinessInsider

McDonald’s Created Broccoli That Tastes Like Bubble Gum: BusinessInsider

Insiders Think Lululemon Is In Serious Trouble: BusinessInsider

The New Breed of High-Performance Wool Clothing; Long a tried-and-true textile for outdoor apparel, wool is getting engineered for higher performance by companies like Voormi, Duckworth and others: WSJ

Inventure Foods has succeeded when it comes to healthier snacks and even healthier margins: Forbes

Nestlé Explores Sale of Frozen Food Unit Davigel; Swiss Food Giant Presses Ahead With Consolidation of its Portfolio of Fringe Businesses: WSJ

Daily Bamboo Innovator Insight (Life & Books): Friday 14 Nov 2014 – A popular currency trading website vanished overnight and $1-billion of investors’ money disappeared with it


Building Legacies: Family business succession in South-east Asia: Economist, CampdenFB

A popular currency trading website vanished overnight and $1-billion of investors’ money disappeared with it: FP

From crew member to CEO of McDonald’s Singapore; “Somewhere, some time in my career, someone gave me a break. Someone saw some potential in me and opened that door.” AsiaOne

Open letter to the G20: exposing the corporate shell game is good for business – and the world: Guardian

Billionaire Investor Ray Dalio Says These 5 Habits Made Him Successful: BusinessInsider

Family Businesses of the First World War: CampdenFB

Avian navigation: Flight risk; Pigeons appear to use gravity to set a course back to their lofts: Economist

European history: Reactionary days; How Europe invented the modern repressive state: Economist

Veterans break 50-year silence on China’s first nuclear test: WantChinaTimes

What the stock market can teach you about your own personality; Money brings out the insecurity in everyone. But here’s the good news: you can defeat it: Guardian

Why cats never became man’s best friend: Quartz

Why the Wagner family has outsourced almost nothing at its $200 million airport: BRW

The evolution of a TED Book cover: TED

Unraveling Why Some Mammals Kill Off Infants: NYTimes

The meaning of solitude: KoreaTimes

Auto Parts Billionaire Shahid Khan: I Felt The American Dream In My First 24 Hours Here: Forbes

Five Smart Risks To Set Yourself Apart In Cautious Times: Forbes

Transportation, divergence, and the industrial revolution (and the oil tanker king John Fredriksen), Climateer Investing

Plants talk to each other using an internet of fungus: Hidden under your feet is an information superhighway that allows plants to communicate and help each other out. It’s made  of fungi: BBC

Cost management: A path to sustainable performance improvement: Nation

Taylor Swift Is the Music Industry: BusinessWeek

In the sleepy world of podcasts, ‘Serial’ murder mystery is a sensation and a global phenomenon —a testament to the power of great story-telling. WSJ

Three ways CEOs can improve the supply chain. CEOs increasingly view the supply chain as a critical point of competitive differentiation. Here’s how to make it better. McKinsey


The Liar’s Ball: The Extraordinary Saga of How One Building Broke the World’s Toughest Tycoons: Amazon

Zeckendorf: The autobiography of the man who played a real-life game of Monopoly and won the largest real estate empire in history: Amazon

Daily Bamboo Innovator Insight (Investing Process, Research): Friday 14 Nov 2014 – AP investigation shows Tianhe is a fraud

Investing Process

AP investigation shows Tianhe is a fraud: AA, AP


A Disruption Mechanism for Bribes: Review of Law & Economics

The 52-Week High and Momentum Investing: AlphaArchitect, JF

Daily Bamboo Innovator Insight (Investing Process, Research): Thursday 13 Nov 2014 – Michael Mauboussin: Attributes of a Good Investment Process

Investing Process

Michael Mauboussin: Attributes of a Good Investment Process: ValueWalk, PPT

Legendary Finance Professor Ben Graham Revealed The Problem With Earnings Announcements Decades Ago: BusinessInsider

Asset Management: A Systematic Approach to Factor Investing: Amazon

Buffett Said He Paid a Lot. $15 Billion Later, BNSF Is a Cash Machine. ‘He Stole It’: Bloomberg


Does Culture Matter for Development? SSRN

Acquisition Decisions of Zero-Leverage Firms: SSRN

Daily Bamboo Innovator Insight (Sector): Thursday 13 Nov 2014 – Cathay Financial to Buy $92 Billion Asset Manager Conning for $240m, or 0.26% of AUM

Consumer, Financial and Others

Coke CEO faces super-sized challenges: ValueWalk

British supermarkets: A trolley-load of pain; Even Sainsbury’s, an upmarket grocer, is feeling the heat from the discount retailers: Economist

Billionaire Corona Beer Heir Mesmerizes Junk Bond Buyers: Bloomberg

Cathay Financial to Buy $92 Billion Asset Manager Conning for $240m, or 0.26% of AUM: Bloomberg

Why Tesla Motors Inc. Is Simplifying Its Vehicle Lineup: Nasdaq

Commodities and Energy

Brent Falls Below $80 For First Time in 4 Years on Glut: Bloomberg

Economic and practical obstacles limit Mexico’s shale ambitions: FT

Accuracy of Bakken Volatility Tests Face More Challenges; Industry, Canadian Officials Fear That Explosive Risk of North Dakota Oil Is Understated: WSJ

Ford in vanguard of aluminium revolution: FT

Daily Bamboo Innovator Insight (Macro & Country): Thursday 13 Nov 2014 – Wison Stock Collapses After Halt Lifted And Billionaire Chairman Charged

Greater China

Wison Stock Collapses After Halt Lifted And Chairman Charged: Bloomberg

China’s Property Market Bottoming Out? Not So Fast: WSJ

Hong Kong fund managers eye Shanghai stock linkup as China investment quotas run out: Reuters

China Hunger for Clean Energy to Leave No Rooftop Behind: Bloomberg

19 Chinese provinces to reform and securitize state-own businesses: WantChinaTimes

China transforming from world’s factory into world’s investor: WantChinaTimes

In China, small potatoes corrupt big: OffBeat

Japan and Korea

Yen Capitulation Awakens Intervention Ghosts: Chart of the Day: Bloomberg

Japan actions risk igniting currency war; Devaluation is becoming a habit in an economy that has lost its edge: FT

Japan firms overwhelmingly want Abe to delay tax hike: TheStar

Honda grandees chide CEO over quality, recalls: TheStar

Novelis, the world’s leading aluminum rolling and recycling company, has recycled 20 billion aluminum beverage cans in Korea; Novelis recycles about 50 billion used beverage cans a year across the globe. KoreaTimes


Vietnam Tightens Valuations to Clean Up Bad Debt: Southeast Asia: Bloomberg

Singapore to Face Fire Sales With Home Curbs, Developer Says: Bloomberg

Joko Widodo — CEO of Indonesia Inc. JakartaPost

‘Thailand could become financial hub’ rivalling Singapore, Malaysia: Nation

Shedding light on a company that is increasingly subject to public scrutiny. From humble beginnings, the company is on its way to becoming a leading player in Malaysia’s real estate sector: TheStar

Pelikan is transferring RM1.05bil assets to its 71.32%-owned Germany-listed subsidiary Herlitz AG at a discount, as the struggling stationery maker seeks to boost current stock valuations and raise fresh funding for future growth: TheStar

To lure the bull, SGX must look beyond the China shop: BT

Shanghai-HK link leaves a Singapore divide: BT

Bakries say ‘no easy fixes’ to Bumi default: JakartaPost

Myanmar Paper Replays Junta’s Tunes; Makeover for State-Run New Light of Myanmar Appears to Be Short-Lived: WSJ


Million-Dollar Homes in Sydney Highlights RBA’s Dilemma: Bloomberg


Italians Say No to Risk as Slump Takes Toll on Startups: Bloomberg

The US is a huge hedge fund: FT

An imperfect plan for fixing the next crisis; In a serious crunch, it would be every bank regulator for itself: FT

Tim Geithner reveals in the raw how Europe’s leaders tried to commit financial suicide; Taped transcripts of the former US Treasury Secretary expose a catalogue of errors that will haunt Europe for years, made worse by misplaced righteousness: Telegraph

Japan-China Face Off in Asian Currency War; A snap Japan election may undermine reforms and put Asia’s two economic titans on a collision course. Barron’s

The Wolves of Forex; Foul-mouthed traders aren’t the biggest manipulators of currency markets. WSJ

Asian Companies Flock Into Aircraft Leasing; Li Ka-shing, Chinese Players, Japanese Seek Assets: WSJ

Daily Bamboo Innovator Insight (TMT): Thursday 13 Nov 2014 – MediaTek chief named as one of world’s best CEOs


MediaTek chief named as one of world’s best CEOs: ChinaPost

As YouTube pushes into paid content, other online music outlets are being forced to defend or change their business models to better compensate artists: NYTimes

Hasbro Said to Be in Talks to Buy DreamWorks Animation: NYTimes

Tokopedia to initiate ‘Silicon Valley’ in Indonesia: JakartaPost

Samsung Electronics chases curved smartphone wave to beat flat-screen crowd: Reuters

CIOs Turn to “Deputies’ So They Can Stay ‘Out of the Weeds’: WSJ

Venture capital world changing as hedge funds target tech startups: ValueWalk

Amazon to keep investing in cloud despite margin pressure: Reuters

Amazon: ARM Chipmakers Aren’t Matching Intel’s Innovation: Bloomberg

In One Word, Here’s Why Microsoft Should Copy Amazon’s Echo: BusinessInsider

Daily Bamboo Innovator Insight (Life & Books): Thursday 13 Nov 2014 – Peter Thiel’s very negative – and very useful – advice for entrepreneurs


Peter Thiel’s very negative – and very useful – advice for entrepreneurs: Fortune

America’s Youngest Female Billionaire Explains How She’s Transforming Medicine: BusinessInsider

Some Of The Most Successful Businesses In The US Were Started By Entrepreneurs Over Age 50: BusinessInsider

Why Panera’s CEO Wrote A 20-Page Memo About How He Would Destroy Panera: BusinessInsider

Jerry Seinfeld Explains How He’s Remained Consistently Successful: BusinessInsider, WNYC

China’s Philosopher-CEO Zhang Ruimin; Haier’s leader describes how he built a winning global company by continually reframing his management philosophy. Strategy&

The books that illuminate a turbulent decade in business: FT

6 Hustles Warren Buffett Used To Make $53,000 By Age 16: BusinessInsider

From the Knowledge Economy to the Human Economy: HBR

Why Time — Not Money — Is the Key to Happiness: Knowledge@Wharton

Nicholas Kristof’s ‘Path’ to More Effective Giving; New York Times columnist Nicholas Kristof discusses how to use your time and money for the greatest good. Knowledge@Wharton

The ‘Too Rich to Succeed’ Challenge Facing Start-ups: Knowledge@Wharton

Customer Loyalty in the Age of Big Data: Knowledge@Wharton

CEO of SAP: Why Writing About the Past Helped Me Lead in the Present: 250 words

Bringing a healthy dose of pragmatism to strategy: McKinsey

The Most Underutilized Tool in Making People Happier at Work: LinkedIn

Is It Legit? A Quick Look At Different Types Of Financial Fraud: Aleph

Scientific Insights From Rats Filled With Regrets; Researchers learn that rodents share what appears to be a uniquely human emotion: WSJ

Problems Plagued Virgin Galactic Rocket Ship Long Before Crash; Richard Branson’s Projections on Launch Ran Counter to Technical Capabilities: WSJ

Making ‘Profit’ a Dirty Word in Higher Education; A million students may lose financial aid thanks to rules that don’t apply to public universities. WSJ

Inventiveness isn’t always the exclusive realm of educated boffins: TheStar

Tatsumi: Godfather of alternative manga is reborn on film: JapanTimes

What would you like to learn today? Building a center for research into Self-Organized Learning: TED

Let it go, let it go: 4 strategies to help you stop micromanaging: BRW

The 7 secrets to Gail Kelly’s success: BRW

Study Reveals The Career Strategy That Top CEOs Have In Common: BusinessInsider

The productivity of PhDs: Lazy graduate students? Economist

8 Ways to Motivate People to Say Yes More Often: FastCompany


Scaling Up: How a Few Companies Make It…and Why the Rest Don’t: Amazon

The Innovator’s Method: Bringing the Lean Start-up into Your Organization: Amazon

My role model is Fuzukawa Yukichi, the Benjamin Franklin of Japan


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

BAMBOO LETTER UPDATE | November 3, 2014

Bamboo Innovator Insight (Issue 57)

§  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 “Inside the Leader’s Mind” 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.


Can You Guess This Asian Wide-Moat Company?

“My role model is Fuzukawa Yukichi, the Benjamin Franklin of Japan.”

Q: “Who has influenced you the most? Any role model(s) that you have?”

Mr. H: “There are many people who have influenced me. My role model is … Fuzukawa Yukichi. Yukichi-san is regarded as one of the founders of modern Japan and is called the Voltaire and Benjamin Franklin of Japan. His ideas about government and social institutions made a lasting impression on a rapidly changing Japan during the Meiji Era. He is an author, writer, teacher, translator, journalist, and entrepreneur who also founded the newspaper Jiji-Shinpo and the Institute for Study of Infectious Diseases. He is also a civil rights activist and liberal ideologist, believing that whether one is a child of a samurai or farmer, male or female, they should have the right to be educated. An interesting story about his creativity to overcoming resistance. During his era, Japanese don’t eat beef. Besides religious belief and cultural influences, an aversion to beef is because of its taste. So Fuzukawa added soya sauce, spring onion, sugar into what we now know as the hugely popular Sukiyaki, the Japanese beef hot pot. From this small story, you can see that without Yukichi-san, there is no modern Japan! In those conservative and stifling times, he is able to see Japan a hundred years ahead with incredible foresight. Hence the Japanese commemorate his contributions by putting him on the highest-denomination (¥10,000) of the Japanese yen currency note.”


Can you guess who is this Asian entrepreneur? Our latest monthly Moat Report Asia for November investigates an Asian-listed company who is the global #3 leader in a product with multiple applications from shale gas to submarines, overtaking General Electric (GE). For a world-class company possessing deep intangible know-how, the company has an undemanding valuation at EV/EBITDA 10.2x and Price-to-book value 1.45x. Its P/B is even lower at 1.2x after taking in account the property revaluation gains from unlocking the value of its land bank near the MRT earmarked for urban renewal and development that would drive up its book value by 21%. The firm’s short-term downside is also protected by its healthy balance sheet with net cash of $230m and a decent dividend yield of 3.23%.


From Mr. H’s role model, we get to perhaps examine Kuroda’s massive monetary stimulus from a different perspective by traveling back in time. Japan’s postwar economic miracle was driven especially by companies that exported materials, parts and industrial products – not by consumer-goods companies. Hitachi, Toshiba and NEC have grew after the war by exporting industrial products like locomotives, gas turbines. Now, quietly, some Japanese giants have returned back to their industrial and robotics roots. In recent years, the three – Hitachi, Toshiba, NEC – have shed many consumer operations and doubled down on businesses like heavy machinery, industrial electronics. Take the case of Hitachi. After posting cumulative losses of ¥985bn for four fiscal years ended Mar 2010, Hitachi swung back to a cumulative net income of ¥1.03tr in the four years since then. Panasonic has quit the consumer smartphone market, stopped making plasma screen TV sets and sharply reduced its camera output.


Besides Japan, America is also experiencing a manufacturing-industrial renaissance and re-shoring driven by the decline in energy costs, the increase in American labor productivity and the rising wages in China and Asia. American factories are producing more expensive and complicated goods – medical equipment, computer chips, commercial and military jets and oil and gas equipment.

And Mr. H’s products are part of these structural trends that will take place in the years ahead.

Who is Mr. H and his company?

His personification is Fuzukawa Yukichi and Benjamin Franklin – Mr. H is also you.

Warm regards,


Managing Editor

The Moat Report Asia


SMU: http://accountancy.smu.edu.sg/faculty/profile/108141/Kee%20Koon%20Boon

A new monthly issue of The Moat Report Asia is now available!

Access the in-depth idea presentation:


PS: We have also posted the presentation slides to a talk given by Mr Wai Phyo Kyaw (the technopreneur behind Rebbiz: MyanmarCarsDB, MyanmarJobsDB, MyanmarHouseDB) and Ms Chua Mei Mei (executive director of Beauty Palace) to the students in the Singapore Management University (SMU) for the official course Accounting Study Mission to Myanmar (Dec 2014) upon the invitation of KB Kee, managing editor of The Moat Report Asia and adjunct faculty (accounting) in SMU. Wai Phyo is akin to the early days of Greg Roebuck who founded the highly successful carsales.com.au (CRZ, MV $2.2bn). Beauty Palace, a former distribution partner of Unilever, demonstrates how emerging companies stay relevant and competitive to the extent that they become the targets of MNCs/Unilever who send people to learn from them. Beauty Palace also sheds insights into the dynamics of the listed Asian operations of Unilever –Unilever Indonesia (UNVR IJ, MV $18.9bn), Hindustan Unilever (HUVR IN, MV $25.4bn). KB wrote the following thank-you note to Wai Phyo and Mei Mei on behalf of SMU:

Dear Mei Mei (and Kenneth), Wai Phyo and Ye Lin,


Many thanks for coming down to SMU to share with the students your hands-on experience in building up businesses in the rapidly-evolving Myanmar with its distinctive challenges and opportunities.

One thing that all of us felt very strongly from all three of you is the sense of national pride that you have in being involved in the transformational changes gripping the country as both an entrepreneur and a citizen!

Indeed, from urban Yangon/Mandalay to the rural towns/villages, every Burmese desire an improvement in their lot in life, whether they be shampoo-toothpaste or trustworthy information about cars-houses-jobs.


Mei Mei: You remind all of us of Hyflux’s Olivia Lum who was the first woman to win the Ernst & Young World Entrepreneur of the Year. Both of you are willing to brave uncertainties and hardship in traveling to far-flung, dangerous places to sell products and forge relationships – Olivia had shared with the world the tale of her trip to Maldives where she was the lone passenger in a boat manned by two men; a storm broke during the four-hour trip to an island and sea water gushed through a crack that had opened up in the bottom of her boat. You have shared with us your inspiring story of courage and grit in traveling to different parts of Myanmar to do business with integrity and values.

·        One question that all of us would like to learn from you in an ongoing conversation is this: Your unique background has shaped your outstanding character, values and success – from having the sense of responsibility as the eldest in the family of five siblings to the heightened sense of business awareness in the family business relationship with Unilever over the years that the foreign partner could go independent one day and hence a need to stay hungry and capable. So how can someone “ordinary” have the drive and grit that you have?

Wai Phyo: Startups are all-consuming and we are thankful for your sharing on the tech startup scene in Myanmar and your inspiring leap of faith (long working hours, commitment, and responsibility) that resulted in your business success in Rebbiz (MyanmarCarsDB, MyanmarJobsDB, MyanmarHouseDB)! Your success remind us of what Facebook co-founder Dustin Moskovitz shared in the photos “What It’s Actually Like” below: “This is an actual scene from Palo Alto, [Mark Zuckerberg] spent a lot of time at this desk, head down and focused…this is just him signaling his intention to be focused and keep working, not be social.”

https://static-ssl.businessinsider.com/image/5422bf37ecad0456680c1bf3-960-720/so-a-scene-from-the-social-network-this-is-us-partying-and-working-at-the-same-timesomebodys-spraying-champagne-everywhere.jpgdustin moskovitz startup entrepreneurship launch advice deck

·        One question that all of us would like to learn from you in an ongoing conversation is this: In building up a Minimum Viable Product (MVP) in a startup to improve from the interaction and feedback from the actual users, how does one overcome the anxiety and fear when bigger, more resourceful rivals (eg Rocket Internet) actually emerge with a seemingly better product, especially since everyday the entrepreneur and his team are fighting fire with limited time and resources?

“In what you burn, you ignite in others.” – We are inspired by your authentic sharing today and all of us look forward to continuing our conversation with you in Yangon in the Alumni Event on 7 Dec! Thank you once again for your valuable time in sharing with all of us your knowledge and wisdom!


Warm regards,


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