Bamboo Innovator Daily: 23 May (Sat) – Lessons From a Buffett Believer; Why Do We Experience Awe? Because it moves us to do things for the greater good

Life

  • Every Man an Archimedes; Insights can seem to appear spontaneously, but fully formed. No wonder the ancients spoke of muses. WSJ
  • Why Do We Experience Awe? Because it moves us to do things for the greater good: NYT
  • 13 of the best graduation speeches of all time: BI
  • Lessons From a Buffett Believer: WSJ
  • Think different: Yancey Hai left a 21-year career in banking for power systems maker Taiwan’s Delta Electronics, and has not looked back.: BT
  • Watch Robert De Niro tell graduates about dealing with rejection: Quartz
  • Bouncing off Tharman’s trampoline: BT
  • Elon Musk didn’t like his kids’ school, so he made his own small, secretive school without grade levels: BI
  • 10 innovation lessons inspired by Homer Simpson: FP
  • Embracing Disruptive Change: Why Is it So Difficult? WSJ
  • What Google looks for in entrepreneurs when it’s thinking about acquiring a company: BI
  • How Discovery keeps innovating; CEO Adrian Gore describes how the South African company has been shaking up its industry through business-model innovation and explains what helps to catalyze new ideas. McKinsey
  • Inside “(Dis)Honesty – The Truth About Lies.”: Forbes
  • Signs That You’re Being Too Stubborn: HBR
  • Notes To The Charlie Rose 3 episode interview of Warren Buffett: RBCPA
  • Revealing Seven Personality Traits That Have Made Warren Buffett A Cheerful Billionaire: VW
  • Buffett in WSJ Op-Ed: Better Than Raising the Minimum Wage: Help Americans who need it with a major, carefully crafted expansion of the Earned Income Tax Credit: WSJ
  • SEC Commissioner Stein Says Overlooking Bank Criminal Activity Will Lead To Further Criminal Activity: VW
  • A new startup thinks it can stop Wall Street cheaters by monitoring how much traders laugh: BI
  • Meet the real-life ‘Wolf of Wall Street’ Instagrammer who claims he can turn your ‘pennies into millions’: BI
  • A Life-Changing Guide for Emotionally Sensitive People: TinyBuddha
  • Retelling Another Person’s Story Can Make It Your Own; Repeatedly retelling an incident can trick your brain into believing it was your own experience: WSJ
  • A great leadership reading list — without any business books on it: WaPo
  • Proof of Cheating Casts Pall Over the SAT: Barron’s
  •  Psychologist says this key skill can make people highly effective leaders: BI
  • Interview: M&A advisers Michael and Yoel Zaoui; Brothers Michael and Yoel have advised on takeovers worth $152bn in two years and changed the fate of business empires: FT
  • What’s Behind Big Science Frauds?: NYT

Books

  • The Emotionally Sensitive Person: Finding Peace When Your Emotions Overwhelm You : Amazon
  • The Good Struggle: Responsible Leadership in an Unforgiving World: Amazon
  • Defining Moments: When Managers Must Choose Between Right and Right : Amazon
  • Leading Quietly: Amazon

Investing Process

  • Hanergy: Bulk of Stock Collapse Occurred in Less Than a Second; Trading pattern echoes similar move seen in May 2010 ‘flash crash’: WSJ
  • Li Hejun, a solar billionaire feels the heat; A market plunge of less than an hour dethroned mainland China’s richest man, writes Lucy Hornby: FT
  • A Glimpse At The Market Endgame: How China’s (Formerly) Richest Man Crashed His Own Stock When He Tried To Sell: Zerohedge
  • Did Anti-Corruption Campaign Lead To Plunge In Hanergy Shares? VW
  • How the Rosewall family’s stockbroking company BBY collapsed; BBY Nominees is a principal account that was used by the company for BBY’s own trading activities. TheAge
  • CalPERS gives its managers ESG ultimatum; In what promises to be a transformational moment for ESG integration and investment manager accountability, CalPERS will require all of its managers to identify and articulate ESG in their investment processes: top1000funds
  • Sanjay Bakshi Discusses Contrarian Investing: VW
  • 10 Influential Investor Lessons You Can Benefit From Today: Endlessrise
  • Why Peltz Didn’t Have Icahn’s Apple Touch; Activist’s failure to win a board seat at DuPont might have had something to do with the incentives of passive investors: WSJ
  • Seven Lies Investors Tell Themselves: WSJ
  • FT Weekend 30: Thirty years of FT Money: FT

AsianExtractor: Unearthing Accounting Fraud in Asia

  • Detecting Accounting Fraud in Asia (Part 4): Introducing Six New Measures: AsianExtractor
  • Sihuan (460 HK) Updates on Audit Delay: Improper accounting treatment in consolidation trick of using MRAs (Market Research Agents) to exclude hidden sales and distribution expenses to artificially boost profits: AsianExtractor
  • China Environment FY2014: Significant Deterioration in Receivables Collectability And No Provision for Impairment: AsianExtractor
  • China Environment (SES: 50U, Bloomberg: CENV SP): Auditor Emphasis of Matter raises more questions on potential accounting tunneling risk: AsianExtractor
  • Open Letter to SGX/MAS: Reply to CFO of SGX-Listed China Environment (CENV SP) on report “Potential Accounting Tunneling Fraud at China Environment?” – Address the accounting and governance concerns in an SGX/MAS announcement: AsianExtractor
  • Does Auditor Explanatory Language in Unqualified Audit Reports Indicate Increased Financial Misstatement Risk? “Emphasis of matter” language predicts restatements + China Environment’s Auditor Emphasis of Matter: AsianExtractor

Greater China

  • HK watchdog on defensive after $36bn Hanergy and Goldin losses: FT
  • China bets on expanding its way out of debt; Latest data show credit squeeze risks morphing into a credit crunch: FT
  • China’s Tulipmania Full Frontal: Shenzhen’s Parabolic Stocks Just Hit 67x P/E: Zerohedge
  • In Fight Against Fakes, Alibaba Works With Israeli Startup To Assign Digital ID To 10 Bln Products: Forbes
  • China margin trading balance balloons to record high; Chinese investors’ borrowing to trade on the country’s stock markets has surpassed 2 trillion yuan for the first time: Yahoo

India

Japan & Korea

  • Toshiba’s broader probe exposing deep-rooted governance issues: Nikkei
  • Toshiba’s push for infrastructure may be factor in scandal: Nikkei
  • E-commerce giant Rakuten has managed to do what the educational system apparently can’t — get Japanese people to speak English competently: JT
  • Phone users in Japan still paying for plenty of stuff they don’t need: JT

ASEAN

  • As graduate numbers grow in Singapore, a hard truth: Not all degrees are equal: TODAY
  • Heat is on for PE funds to derive value in S-E Asia: Bain; there remains too much private-equity (PE) money chasing too few deals in South-east Asia; BT
  • A year after Thai coup, stability trumps growth for business: Reuters
  • Lower auditing standards seem to have been applied in 1MDB: Star
  • 1MDB’s cash crunch; The recipe for the downfall of any company is taking on short-term debt to fulfil long-term projects. : AsiaOne
  • Proposed ban on cigarette TV ads hits stocks of Indonesian media firms; Cigarette advertisements contribute 6-7 percent to Surya Citra’s total advertisement sales: Reuters

Macro

  • 572 Reasons Why The Fed Is Terrified To Hike: “One Rate Cut Every Three Trading Days”: Zerohedge
  •  Good times fade away: compliance holds sway in forex trading: FT
  • Risky Loans Shunned by Banks Are Booming in Wall Street’s Shadow: Bloomberg

TMT

  • Disney: Let it grow; Bob Iger boldly bet on media content when he bought Pixar, Marvel and Lucasfilm — and it looks like money well spent: FT
  • Buzz Is No Substitute for Real News; Journalists have rightly discarded the technology of the past, says a 50-year veteran, but the old standards still apply: WSJ
  • Five Top Venture Capitalists Name The Top 10 Tech Trends Of The Next 5 Years: Forbes
  • This $1 billion Swedish payment company thinks it can save newspapers: BI
  • Overvalued in Silicon Valley, but Don’t Say ‘Tech Bubble’;  “I guess it is a scary word because in some sense no one wants it to stop. And so if you utter it, do you pop it?”: NYT
  • As Chromebook Prices Fall, Market Leader Acer Resists; Some cheaper brands use a cut-rate processor designed by China-based Fuzhou Rockchip Electronics. Those are likely to run more slowly than the Intel Celeron processor: Forbes
  • Spotify Wants You To Run Harder, Better, Faster, And Stronger: Forbes
  • Audi will enhance Chinese connected-car services with Baidu: Reuters
  • The Inside Story of How the iPhone Crippled BlackBerry; ‘Losing the Signal’ examines Research In Motion’s efforts to take on Apple’s game-changing smartphone: WSJ
  • Amazon Targets Etsy With ‘Handmade’ Marketplace: WSJ
  • Why Wal-Mart’s E-Commerce Group Embraces Open Source: WSJ
  • Can Netflix make your TV smarter? With Netflix recommended TVs, the streaming company is helping manufacturers make their products as easy to use as, well, Netflix. FastCo
  • Zendrive Uses Mobile Phones as Sensors To Reinvent The Accuracy of Auto Insurance In Partnership With Guild: Techcrunch
  • New Approach, a powerful artificial intelligence technique known as “deep learning, Trains Robots to Match Human Dexterity and Speed: NYT
  • Driverless cars will shave ‘£265’ off insurance premiums in five years; Why bad driving will be eliminated by 2020 – and car insurance costs will plummet: Telegraph1, 2
  • Meet Density, a startup that lets you see if your favorite coffee shop is full; This startup makes it easy and cheap to get anonymous counts of people in a physical space, which is valuable information for merchants, customers and even city planners: Fortune
  • Sony to license high-res audio tech to jump-start market; Using Sony’s technology, high-resolution music can be transmitted wirelessly from a device to speakers: Nikkei

Healthcare

  • The Family-Run Company That’s Making Super Sophisticated “Robot” Patients: Forbes

Consumer & Others

  • Patagonia’s Anti-Growth Strategy; Anti-consumerism is clearly helping to build the Patagonia brand—the company is seeing double-digit annual growth: NewYorker
  • Lean times for the diet industry: Fortune
  • The man who built Sainsbury’s Nectar card thinks supermarkets need to totally rethink loyalty: BI
  • Wal-Mart Encourages Meat and Egg Suppliers to Curb Antibiotic Use: WSJ
  • Companies See ‘Massive Shift’ in Search for Supply Chain Talent: WSJ
  • Obama Scales Back Overly Ambitious Goals for Electric Car Use: Bloomberg
  • The ridiculous reason McDonald’s sold Chipotle and missed out on billions of dollars: BI
  • Fighting Pollution From Microbeads Used in Soaps and Creams: NYT
  • Innovation helps Warburtons’ bread brand rise; The business has spent more than £400m on new bakery technology and machinery in the past decade. The Warburtons say holding on to staff means they have more money to invest. FT
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About bambooinnovator
KB Kee is the Managing Editor of the Moat Report Asia (www.moatreport.com), a research service focused exclusively on highlighting undervalued wide-moat businesses in Asia; subscribers 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. KB has been rooted in the principles of value investing for over a decade as an analyst in Asian capital markets. He was head of research and fund manager at a Singapore-based value investment firm. As a member of the investment committee, he helped the firm’s Asia-focused equity funds significantly outperform the benchmark index. He was previously the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. KB has trained CEOs, entrepreneurs, CFOs, management executives in business strategy, value investing, macroeconomic and industry trends, and detecting accounting frauds in Singapore, HK and China. KB was a faculty (accounting) at SMU teaching accounting courses. KB is currently the Chief Investment Officer at an ASX-listed investment holdings company since September 2015, helping to manage the listed Asian equities investments in the Hidden Champions Fund. Disclaimer: This article is for discussion purposes only and does not constitute an offer, recommendation or solicitation to buy or sell any investments, securities, futures or options. All articles in the website reflect the personal opinions of the writer.

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