Advance along with the world

  Classical Economics Theories founder Adam Smith assumed everyone in the world can make decision rationally which they would only choose or buy or sell things on behave on their own benefit.

  This theory has been the core of the economics and never changed or challenged for a long time. Needless to say, the world has changed---many theories no longer suitable to be used and applied even some of the economists admitted that we should restructure the economics theory and come out the most suitable one to replace the out-dated theories. 

  Sometimes people are fear to change. Without the courage and common goals, changes of theories never happen. We are still studying the classical economics although we should have come out a new one. Mathematical method still be the priority way to solve the economic problem---the problem is that the complexity of human is out of range of any kind mathematical calculation. 

  Adam Smith might never think of that human would change quickly, which his assumption would never change as long as the people no change. The cruel truth is that people change all the time, in unbelievable way. What should the economists do?

  In many occasions, I always tell people something very "extreme" (for the listeners) , even surprised them. 

  Humanity---this is the thing has been omitted by economists all the time. Instead of emphasizing those GDP, CPI, we should focus more on humanity which I called it "humanity quality". No more index. It is something immeasurable. Ridiculous? Of course because this has out of the economics which more people-oriented.

  During old time, production and growth are the priority things. People having simple life. Nowadays, the society becomes more complex and specialized. Traditional values are vanishing. People tend to be pessimistic. The thing that unacceptable is that economists still applying the something like what they did during old time.

  Education System should be focusing on value-creation of every person. If people can find their own goal and create value for the world, society or even surroundings, it should be strongly encouraging. Like what Martin Lurther King did for the black people in America. How much impact he had brought? The influential persist until now. 

  I will share more next time. 

     

Who control the world?

  I think a lot recently. Until I can't even support my initial stand which I wanted to be an investor. So far I have not decided yet whether I should continue my investment analysis since I lack of patient to do so.

  Anyhow I have done some random-searching from the internet to know more about the world especially financial market. There is no direct relation about the investment but about how THE BANKS OR CENTRAL BANKS CONTROL THE WORLD. This require some macro-mindset which is called global view to figure out.

  Now there has been some international organisations have been said that they are controlling (supervise and monitor) the flow of the world capital.
 
  World Bank, an international organisation which monitors the worldwide economic and offers special loans to developing countries. It seems like this bank was set up by good, actually it is controlled by United States. Whatever U.S wants to do to the world, the bank would eventually do it for that purpose.

  IMF, International Monetary Fund which acts similar like World Bank but it serves every country around the world and monitors  the currency flowing around the world.

  Bank for International Settlement, a "mystery" and extreme low profile international organisation that set up for serving the world central banks to "stabilise" the worldwide economic.

  As seen above, those financial institutions are set up for "stabilising" and "monitoring" purpose but actually did they do it right?

  They have been making this world more complex and more uncertainty as all of them are controlled by the EU and US for benefit of themselves.

  I still find no real evidence to prove it. Perhaps I would find it until I work as an Insider of those organisations.

Review my choice

  About a month ago, I was determined to choose some good and undervalued companies which I thought some of them might be good enough for me to put my money in.

  As a human kind, I knew I might make mistake due to near-zero experience in choosing and investing companies. "Fortunately", it happened. I found out that Jobstreet is a good company, indeed. There is something I don't buy is that the management of the company seems like has no idea in utilising the company's cash.
 
  When I read the year 2011 annual report, it makes me disappointed that Jobstreet has invested nearly RM 11 million in Singapore listed Reits companies shares. As a growing and expanding company, every spending single sen should be looked like a big planet. I wondered if there is no other good choice for jobstreet to invest in which the REITs has neither direct nor indirect interest to the company business.

  Maybe, just maybe, from the view point of Mark Chang (Founder and CEO of Jobstreet) investing in REITs could bring infinite value to the shareholders and increase the side income of the company (an employment website company gets side income from property rental?). Or the action is just to avoid tax?

  Jobstreet has no further explanation against its investing act. This is the thing for sure he (Mark Chang) doesn't want to talk so much to avoid controversial. I doubt on his action that choosing unrelated business field to invest while the company still needs cash to maintain operations and improve technology over year-to-year.

  In case, he explains in details or otherwise this company should not be considered as my choice.

  Now I should focus on other companies.

Jobstreet is a good choice?

  As a beginner I know there are a lot of thing I need to learn especially when it comes to the real practical, I may not able to follow the target or rules that I have set.

  Being independent in thinking becomes the most necessary element in investing. I admit that I can't even ignore others' opinion when I say I want to invest in Jobstreet. It might be due to the characteristics of the company that is sensitive to worldwide economy---highly depends on the economy up-and-down. World economy deeply influences Jobstreet performance.

  Ok, I am not going to invest for now and observe it for some time to make decision. Good choice?

   This is what I have done. The main point is that ROE is  keep on decreasing every year. ROE means return on shareholders' equity---How much of the return for each dollar shareholder invests in its shares. Profit increasing and the peak time shall be from 2004 until 2007. Never forget that the company intends to pay dividends out of 50% of net profit start from 2011.

  Now I am not going to talk about the figure information (your can look at it by yourselves). Let's have SWOT analysis apply in this company.

  Strength : No doubt Jobstreet is the leader of employment website in Malaysia. Malaysia continues to be the major revenue contributor to the company. Also it is expanding the business across the region in India,Japan, Hong Kong, Philippine, Singapore, Indonesia, Taiwan and Thailand. Diversification has indicated that the Management has the ambitious to become the region champion in this business.
Beside that, the brand of "Jobstreet" has been the famous name among the jobseekers who always seek for the jobs through Internet.
Branding decides a company profit sometimes, the best instance : Coca-cola has the best ever brand among its competitors, even an american is given coke and pepsi, he or she would choose coke although those drinks have not much different from taste.

  Weakness: Obviously Jobstreet is a employment website that depends heavily on technology which comes out some uncertainties in its future. Perhaps by strong branding, Jobstreet continues to be the biggest player but never forget that the company invests heavily on its technology year by year in order to maintain or improve its service. Providing services by technology is risky due to rapidly changes in technology which could impact the company investment. Since it is still in growing stage, somehow cash flow needs to be retained for technology.
Those who expect high dividend payment from Jobstreet should reconsider and think twice before you really put money into this company. Since they less borrow from the banks, the best way to raise fund is through share market.

 There is another weakness which the company could not get into the region market easily especially in Hong Kong and Taiwan, Jobstreet formed partnership with local big players by buying shares. It means that Jobstreet faces some problem of presence in those areas, it may due to their very competitive market. Also they have founded new services which is the autoworld.com where has yet to make any profit (could be dragging cash flows)

  Opportunities: Southeast Asia is one of the most fastest growing economy region among the others. Jobstreet expands its business into Southeast Asia could be the insight of the CEO. Indonesia has over 200 million population and it is still increasing, online users too. Since the young people are getting into job market, more and more demand on jobs could spur the presence of jobsteet. Also, more and more western companies are shifting their focus to Asia especially Southeast Asia. Investment in those company is keep on increasing and more branches are established, jobs are created.

Threats: No sector has little competition. In employment website sector, the services providers are increasing. This has created highly competitive market. Threaten by the increasing number of competitors, Jobstreet could be affected by "war of price" which services providers compete each other by price cutting. Profit would be affected most.
Also, the company is very sensitive to world economy as its profits showed that it is highly depending on world economy up-and-down. Please beware that this company has its own cycle which follows the trend of world economy.

In fact, no company is perfect. Indeed Jobstreet is good company but still needs times to prove its own strength whether it delivers value to shareholders and clients or not.

Talk about Jobstreet

  Almost 1 year I have studied things about the share investment in fundamental way and I tried to learn how to analyse those information that stated on the annual reports in order to find out the company's strength and weakness before I really start putting my money into the company.

    What is so special about Jobstreet? Like what Buffett's method states that we must invest in a company which has :

1.  the power to monopoly the market in long term (at least the biggest or best player in the related field) and able to survive although there were financial crisis or high market competition.
2.  the strong brand that can deeply influence the people when they make consumption decision. 
3.  the demands for the products or services consistently increase year by year or remain steady growth until the end of the world *
   *:(This is what Warren Buffett says, perhaps the he believes that those companies would not fall down as long as the people do not change their demand on it.)

   From the Buffett way, we know that there are some companies fulfill those requirements in Malaysia. As an  investor I cannot merely follow what others exactly did or do, bear in mind that we should keep our mind independence to avoid overflow information that would affect our decision making.

   Jobstreet is the best player ever among the employment website companies, in Malaysia and whole region---Southeast Asia.  Mark Chang who graduated from MIU, USA, and found MOL in 1995. Two years later, Mark sold MOL to another prominent entrepreneur Vincent Tan while at the same time Jobstreet was founded. Now Jobstreet has expanded to Singapore, Philippines, India, Bangladesh, Japan ,Thailand, and Indonesia 


   As you can see Jostreet isn't only in Malaysia but also across to the region market to make it bigger. 

    I would say that Jobstreet has changed the job-finding way in Malaysia as there are getting more and more people rely on Internet to find information, therefore finding a job through online isn't impossible. Early in 1992-1995, the age of establishments of Internet , there were other countries companies had done so before Jobstreet had so. But since Jobstreet did well, many people started involving into this business and compete each other with "war of price" strategy.

   Jobstreet still faces the challenge from the competitors in the region, but it doesn't affect much to its profitable business in Malaysia. There was one research saying there were almost 70% of the Labour force find jobs through Internet and most of them preferred Jobstreet.com. My opinion is that Jobstreet provides various type of jobs and classified it. In other words, Jobstreet is more use-friendly compared with other employment websites in Malaysia.

   Now we know that Jobstreet has established a strong brand which deeply plants into people hearts and created demand to the never-ending desire of jobseekers who always seek for the best employers or suitable positions.

   I have done some homework about Jobstreet. Continue next time.


    
  
   

Minority thoughts

  As a business student, I used to expect that I would meet up with a lot of people with full of financial knowledge or ambitious enough to have own business in one day. Sometimes, I thought I might meet up with a mentor who can teach me about the business stuff in order to grow me up.

  Expectation often higher than reality, very much, till I am disappointed with the reality. People that I met up usually have no ambitious or finance or business related knowledge which I expected to get one. Through this, I have a conclusion : Majority have similar thoughts, behaviors,and even lifes.

  I want to be the minority who enjoy the business or investment in one day, perhaps I could start it now if I were brave enough.

   Minority (here refers to rich or rare people) have high ambitious in their life. To become a successful person in the world. What successful is referring to? wealth? I think not really is about the wealth but is about creating   value to the world or people around them.

  Majority try to get something from the minority and use it for themselves, not even to create something valuable to social.

   Minority want to contribute something to the world by solving people's problem. They don't wait others do for them, indeed they make it by themselves.
 
  Majority often keep waiting the problems being solved automatically without taking initiative.

   So, which do you want to be?

Brain---The Greatest Asset of ours.

  During the recession time, investors or rather be called as speculators were fear of loss money in stock market or commodity market and got themselves out from it in order to stop bleeding.
 
   If you were smart enough or having high Financial Intelligence, recession was the best time for you to get into the market and sweep the stocks as much as you can(must prepare well and know what are you doing before entering the market).

  This was how Warren Buffet and George Soros made money through market over retail investors reactions.

  But shall we act like them to become the most successful investors?

  My answer is, depends on you as no advice is the best unless you found the one which suits for you. I would not take others' advice easily because I should know that everyone has the different way in thinking and no standard can be made after the teller speaks out the things.

  We must find a suitable way for ourselves to avoid over-following. I admire Buffett even Kiyosaki but I do not really follow what they say and actually choose some of the advice which I think it would suit to me.

  Kiyosaki has changed the way I thought for my future. He changed my mindset as I only realized lack of financial education is the worst. To be success, change in mindset is the key. Kiyosaki prefers using good debt to make money if you are able to manage the high leverage risk

  Buffett has taught me how to be an investor, and how should an investor act during the bull or bear market. Fundamental analysis and businessman-thinking-way are the ways to make it. To be success, rational is the key. Buffett doesn't like making money by debt and cash is the only safety way.

  Both of them have some differences and similarity, but both of them are great. They have changed a lot of people including me.

  In order to success in this century, keep learning. Do not stop doing that. At last, If you do not know what you are doing, no asset can make you rich. Ultimately, what makes you rich is your financial intelligence. Your greatest asset is your brain — so take care of it and protect it from bad advice.