- High Profit Margin
- High ROE
- Dividend Payout Ratio of 60%
- Conservative Management (one of the rare brokerage that likes to ban trading in hot stock)
- Largest brokerage in Singapore with operations in Hong Kong and Thailand
- It's a matter of time that the retails investor will return
- Brokerage demand has high potential for growth given that only 12% of population are trading or investing. This compared to 30% in Hong Kong and 50% in USA
Tuesday, February 28, 2012
Sunday, February 26, 2012
"The logic is simple: If you are going to be a net buyer of stocks in the future, either directly with your own money or indirectly (through your ownership of a company that is repurchasing shares), you are hurt when stocks rise. You benefit when stocks swoon. Emotions, however, too often complicate the matter: Most people, including those who will be net buyers in the future, take comfort in seeing stock prices advance. These shareholders resemble a commuter who rejoices after the price of gas increases, simply because his tank contains a day’s supply."
"To fulfill its societal obligation, BNSF regularly invests far more than its depreciation charge, with the excess amounting to $1.8 billion in 2011.
Massive investments of the sort that BNSF is making would be foolish if it could not earn appropriate returns on the incremental sums it commits. But I am confident it will do so because of the value it delivers. Many years ago Ben Franklin counseled, “Keep thy shop, and thy shop will keep thee.” Translating this to our regulated businesses, he might today say, “Take care of your customer, and the regulator – your customer’s representative – will take care of you.” Good behavior by each party begets good behavior in return."
Our dearest 2 Public Transport Operators should really take note of this point. This is perhaps the difference in running a business with a owner's mentality. This is also why I do have a slight preference for a family-owned business sometimes.
"This group of companies sells products ranging from lollipops to jet airplanes. Some of the businesses enjoy terrific economics, measured by earnings on unleveraged net tangible assets that run from 25% after-tax to more than 100%. Others produce good returns in the area of 12-20%. A few, however, have very poor returns, a result of some serious mistakes"
"The major asset in this category is gold, currently a huge favorite of investors who fear almost all other assets, especially paper money (of whose value, as noted, they are right to be fearful). Gold, however, has two significant shortcomings, being neither of much use nor procreative. True, gold has some industrial and decorative utility, but the demand for these purposes is both limited and incapable of soaking up new production. Meanwhile, if you own one ounce of gold for an eternity, you will still own one ounce at its end.
What motivates most gold purchasers is their belief that the ranks of the fearful will grow. During the past decade that belief has proved correct. Beyond that, the rising price has on its own generated additional buying enthusiasm, attracting purchasers who see the rise as validating an investment thesis.
As “bandwagon” investors join any party, they create their own truth – for a while. "
This is a short and sweet summary of what a long-term investment should be.
The annual letter does deserve a read and I have find that reading his letter to shareholder proves to be more worth it than many other books out there. And what's more its free, which implies an infinite return on investment:)
Saturday, February 25, 2012
Sunday, February 19, 2012
Saturday, February 18, 2012
Saturday, February 11, 2012
The number of vehicles due for inspection is expected to remain high as the de-registration rate of vehicles continues to be low.
With a comprehensive range and variety of services, it is expected that the test and inspection business will continue to sustain its performance despite the anticipated economic slowdown."