Caveat Emptor

1) Signed up for May-bank Share-builder plan. Will be going down to their branch tomorrow to setup the share-builder plan (300SGD /month STI ETF) and GIRO DDA Linkage. 2) I have to sell off all of my shares in Philips share-builder plan before I can close off the account. I have suspended the GIRO payment. Transfer to CDP or Maybank account is too expensive and not cost effective. 3) I have successfully sold off my 100 shares of OCBC  (price 11.19) in the main market and 25 shares (price 11.16) in the unit share market. I have earned 19% returns (stopped DCA early). My initial hypothesis that the r ecession will be elongated was wrong and I successfully bought at market low and DCAed from $7 to $10.40 before I stopped the DCA. I didn't build up a sizeable position then due to risk aversion and limited cash flow.   Still, I made a sizeable profit which I realised now.  Why Sell OCBC i) OCBC is no longer cheap and the meat is all gone ii) Migration from Philips to Maybank / CDP

SilverLake Axis Sources 1) http://sgyounginvestor.blogspot.sg/2015/12/reflection-on-silverlake-axis.html 2) https://sg.finance.yahoo.com/news/silverlake-axis-ltd-why-did-080000700.html 3) http://fifthperson.com/12-things-i-learned-from-silverlake-axis-agm-2015/ 4) https://apenquotes.wordpress.com/2015/11/12/silverlake-axis-whats-behind-the-numbers/ 5) http://whatsbehindthenumbers.blogspot.sg/2015/06/silverlake-axis.html#comment-form Types of acquisitions and reasons 1) ATM Front End Processing for banks and front end sales management system 2) Silverlake Banking Systems Solution allows integrated end to end universal banking solutions through Silverlake Integrated Banking Solution (SIBS) – The one used at OCBC 3) Silverlake Japan which provides outsourcing services for credit cards systems and operations for many countries. 4) Structured Services Business (SSB) , and QR Tech . SSB contributes in application maintenance service portion to user of SIBS where

CHINA STOCK FRAUD SHOCKER: Banks Were Complicit In Longtop Fraud   Longtop Financial (LFT), a popular Chinese software company, has just been exposed as a colossal fraud . The "cash balance" on Longtop's balance sheet, it turns out, was fake--a fiction created by the company's managers and helpers. The Longtop fraud follows other China stock frauds that have made many of Wall Street's best and brightest look like fools. It has also increased the skepticism of American investors toward Chinese companies. As well it should. Unlike some of the more famous American-company frauds in recent years--Enron, Worldcom--it turns out that Longtop had institutional help in perpetrating its fraud. The reason Longtop was able to fend off skeptics for so long, despite multiple analysts arguing that it was a fraud , was that Chinese banks were complicit in the scam. According to an extraordinary letter that Longtop's auditor, Deloitte , sent the company when it

I am currently reviewing Silver-lake axis Annual report. 1) Reading through the annual report made me feel the depth of my ignorance. I may have used the OCBC bank's SIBS system in the past and I can hardly differentiate it from the other 2 banks I have worked in. I don't feel that the SIBS banking systems is superior / inferior to the home-made systems used by the 2 MNC banks. This may mean either SIBS is overhyped, or SIBS is so good to the point that they can compete with the best banking systems! But I admit that creation of a mainframe system is a very expensive and complex process requiring great minds to make it work intuitively for users as well as to fit the complexity of all the banking processes. Silver Lake Axis has significant economic moats. I read the annual report once and I barely understood it. 2) Operating from my circle of competence, the direction of the banking sector is to move towards a system integrated with blockchain / STP / Internet

Reflections after One and a half years of investing. 1) I need to refine the spreadsheet I have been using to value my shares. The discount rate is flawed in a way due to the STI bring negative returns in the previous year. I need to find a work-about (maybe use risk free rate of 10 year SGS bonds to give a new discount rate) 2) I need to refine my valuation models i) Price Earnings model (from historical 5 years to forecasted 5 year model) Deriving from peter lynch and John Templeton, I am following the traditional Benjamin Graham model whereby I only use historical numbers that do not lie. I however use the historical quantitative track record to support the qualitative outlook. My methods has its merits from the value standpoint but not growth orientated. For actual valuation of growth stocks, I need to improve on my intrinsic valuation of the stock 5 year onward. Granted, predicting 5 years into the future is a very foggy business and even the best get it wrong, but it is

John Templeton 1) User of market timing and undiscovered markets to buy Cheap Stocks. Global contrarian and focus on emerging markets (Japan) with good work ethic. Buy stocks for less than what they are worth, hold them as long as it takes for market to appreciate how undervalued they are. Know how to go analysis in depth and go against conventional wisdom. 2) Importance of building initial reputation of competence and branching out to advertise your latent skills. Although you are competent, if you don't advertise it sufficiently, you will not be profiting off your skills. 3) Templeton fund despite impressive long term returns, is nonetheless vulnerable to bear markets. In early to mid 1970s, value of fund fell in 3 out of 5 years. It can decrease by 9.9% in 1973 and further 12.1% in 1974. Loss is less severe due to defensive nature of rigorous value orientated approach in portfolio. Fluctuation of share price is approximately square root of price. A 4 dollar stock (st electro