Here are some quotes from the book:
Over time, the aggregate gains made by shareholders must of necessity match the business gains of the company.
It is dangerious ... to apply to the future inductive arguments based on past experience.
Accurately forecasting swings in investor emotions is not possible. But forecasting the long-term economics of investing carries remarkably high odds of success.
The stock market is a giant distraction.
When there are multiple solutions to a problem, choose the simplest one.
The record of the first index mutual funds: $15,000 invested in 1976; value in 2006, $461,771.
It's amazing how difficult it is for a man to understand something if he's paid a small fortune not to understand it.
$10,000 grows to $469,000 ... or $145,400. Where did that $323,600 go?
The miracle of compounding returns is overwhelmedby the tyranny of compounding costs.
Inflamed by heady optimism and greed, and enticed by the wiles of mutual fund marketeers, investors poured their savings into equity fund as the bull market peaks.
When ever-counterproductive investor emotions are played on by ever-counterproductive fund industry promtions, little good is apt to result.
Wednesday, January 23, 2008
Logic Quiz B2
There are four houses with different colours in a row. Each occupant keeps a different pet and drives a different car.
1. The red house is to the left of the green house.
2. The person who keeps cat lives next to Francis.
3. The person who keeps cat lives to the left of the person who drives Rover.
4. The person who keeps parrot lives to the left of the purple house.
5. George drives Toyota.
6. The person who keeps bird lives to the left of Bobby.
7. The white house is occupied by the person who drives Volvo.
8. The person who keeps parrot lives in the second house.
9. Daniel lives next to the person who keeps hamster.
Question: Who drives Honda?
You can find the answer here
http://www.tankinlian.com/logicquiz/answerb2.html
Here are more quizzes at three levels:
http://www.tankinlian.com/logicquiz/quiz.html#B1
You can download the teaser to share with your friends:
http://www.tankinlian.com/downloads/Logic_Quiz_Teaser.pdf
1. The red house is to the left of the green house.
2. The person who keeps cat lives next to Francis.
3. The person who keeps cat lives to the left of the person who drives Rover.
4. The person who keeps parrot lives to the left of the purple house.
5. George drives Toyota.
6. The person who keeps bird lives to the left of Bobby.
7. The white house is occupied by the person who drives Volvo.
8. The person who keeps parrot lives in the second house.
9. Daniel lives next to the person who keeps hamster.
Question: Who drives Honda?
You can find the answer here
http://www.tankinlian.com/logicquiz/answerb2.html
Here are more quizzes at three levels:
http://www.tankinlian.com/logicquiz/quiz.html#B1
You can download the teaser to share with your friends:
http://www.tankinlian.com/downloads/Logic_Quiz_Teaser.pdf
Joke: Black Gowns
"Why do barristers wear black gowns?"
"They first started wearing them in mourning for the death of Queen Anne."
"Why do they still wear them?"
"Well, Queen Anne is still dead, isn't she?"
"They first started wearing them in mourning for the death of Queen Anne."
"Why do they still wear them?"
"Well, Queen Anne is still dead, isn't she?"
Behaviour of a Bear Market
We are now experiencing the behaviour of a bear market. The market falls by several percentage points every day. There is total loss of confidence.
Weak investors and margin traders are being squeezed out. Hedge funds are selling massively. There are virtually no buyers.
The market will rebound, after all of the selling has been done. Long term investors should just sit back and wait for the rebound. At the current level, the market is probably over-sold and is showing less than its fair value.
Weak investors and margin traders are being squeezed out. Hedge funds are selling massively. There are virtually no buyers.
The market will rebound, after all of the selling has been done. Long term investors should just sit back and wait for the rebound. At the current level, the market is probably over-sold and is showing less than its fair value.
Availability of Low Cost Funds
Dear Mr. Tan,
I was reading a commentary somewhere that the state of fund investing in Singapore was reminiscent of a decade ago in the US, with consumers exposed to upfront loads of more than 3% and expense rations of more than 1%.
Why are no load or low expense ratio Index Funds have not gained popularity here? Is it a question of banks/companies not earning enough from such products? ( i.e. Fundsupermart does not sell Index Funds, DollarDex only sells the Lion Capital Infinity US500 Stock Index SGD (feeder fund in the Vanguard® U.S. 500 Stock Index Fund) with 1% commission.
I, for one, would be interested in low cost Index Funds (such as those from Vanguard) pegged to the STI. For some reason, the STI-ETF does not trade at NAV most times, possibly because of high demand?. Can I check if you have made progress towards arranging for such offerings in Singapore?
REPLY
We need to educate the public about low cost Indexed funds, and be comfortable with investing in them. I will try my best to provide this educational service through my blog and website. If there is stronger demand, the banks and Internet portals will be willing to sell these products.
I was reading a commentary somewhere that the state of fund investing in Singapore was reminiscent of a decade ago in the US, with consumers exposed to upfront loads of more than 3% and expense rations of more than 1%.
Why are no load or low expense ratio Index Funds have not gained popularity here? Is it a question of banks/companies not earning enough from such products? ( i.e. Fundsupermart does not sell Index Funds, DollarDex only sells the Lion Capital Infinity US500 Stock Index SGD (feeder fund in the Vanguard® U.S. 500 Stock Index Fund) with 1% commission.
I, for one, would be interested in low cost Index Funds (such as those from Vanguard) pegged to the STI. For some reason, the STI-ETF does not trade at NAV most times, possibly because of high demand?. Can I check if you have made progress towards arranging for such offerings in Singapore?
REPLY
We need to educate the public about low cost Indexed funds, and be comfortable with investing in them. I will try my best to provide this educational service through my blog and website. If there is stronger demand, the banks and Internet portals will be willing to sell these products.
Help the Less Fortunate People
Singapore has gone through many difficult and trying times in its short history. The ones who are hardest hit are the poor, the elderly and the sick and there is only so much the authorities can do for these people.
Luckily we have many volunteers who stepped forward and help in many fields and they made the difference to the lives of these less fortunate folks. In our effluent society there is fear that the numbers of volunteers may shrink because of other priorities.
Dr. & Mrs. Lee Kum Tatt, who have experience working with hundreds of volunteers in their lives, give some insight on how some of the volunteers think and work. If more volunteers can be persuaded to step forward it will be a great help. Given the right environment they are confident that the number of volunteers will not dwindle.
Read their views in their Blog www.leekumtatt.blogspot.com.
Luckily we have many volunteers who stepped forward and help in many fields and they made the difference to the lives of these less fortunate folks. In our effluent society there is fear that the numbers of volunteers may shrink because of other priorities.
Dr. & Mrs. Lee Kum Tatt, who have experience working with hundreds of volunteers in their lives, give some insight on how some of the volunteers think and work. If more volunteers can be persuaded to step forward it will be a great help. Given the right environment they are confident that the number of volunteers will not dwindle.
Read their views in their Blog www.leekumtatt.blogspot.com.
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