Want to Invest

How Confident Are You? Take the Test

2009-07-12T04:25:00.000-07:00

"I think it's time for you to get a new dress"
"Your shoe stinks, you should get a new one"
"Dear, you just wear that shirt last friday, didn't you?"
Those are question that my wife often asking me recently. I just realize that personal appearance is one thing that i often missed to spend some times to think and invest.

I'm not saying that Appearance = Confident nor i disagree with "don't judge a book by it's cover", but i'm sure everyone would agree that first impression might be last for the unpleasant look.

Anyway, Confidence should comes from Preparation, which includes Skills, Experiences, Knowledge and Good-Faith or Positive-Reputation.

Here we go...
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How Confident Are You? Take the Test
by Andrew Tilin
Downturn or not, when it comes to confidence, there are two kinds of business leaders: those who are sure of themselves, and those who are absolutely sure of themselves. (Underconfident business leaders exist, but not for long.) Believe it or not, more confidence isn't always better. Here's a quick guide to seeing where you land on the confidence spectrum, plus advice for improving your game.

Overconfident

Jack Welch, former CEO of GE

What you see in the mirror: Someone who thinks the glass isn't just half-full; it's overflowing. The future is very bright, no matter what the economy's doing.

How you lead your company: Your every fiber goes into making the business successful. You let people go matter-of-factly. You have a strong vision - and it's your way or the highway.

You identify with: Jack Welch
Pros: Optimism from the corner office unquestionably lifts a business. "The evidence is clear," says Don Moore, an associate professor of organizational behavior and theory at Carnegie Mellon's Tepper School of Business. "You're a persuasive and effective leader when you say, 'I'm sure I know what's going to happen, and that our future is bright.'" Plus, nobody doubts that you're captain of the ship. Your subordinates know where they stand. Employees, possibly afraid that their necks could soon rest on the chopping block, work hard.

Cons: If your vision for the company is wrong, the business can quickly nosedive. Subordinates might rebel against a chain of command that resembles a dictatorship. And optimism can go too far. "Overconfident businesspeople routinely delude themselves," Moore says.

How you can improve: Invite input from others -- especially in a downturn. Even if your employees' ideas miss the mark, they may trigger an idea you hadn't considered. No CEO bats a thousand. "That's asking for too much," Moore says.

Confident

Michael Dell, CEO and founder of Dell, Inc.

What you see in the mirror: Someone who's optimistic but also self-critical. You ask an unending stream of hard questions: Are you making the right business decisions? Could you do things better? Can you make these times less scary - for yourself and for your employees?

How you lead your company: With humility. You have a game plan, but you seek suggestions from others. You're a realist who's often willing to tell it like it is.

You identify with: Michael Dell
Pros: Your peers know that your door is always open, or at least that you'll respond to their knocks. Your employees appreciate knowing that you, too, are trying hard to navigate stormy seas. "Good leaders practice what I call 'care-frontation,'" says Pat Hyndman, an executive coach at Vistage International. "You've got to like a boss better who uses words like 'adjust,' 'defer,' and 'reconsider' instead of 'cut' and 'slash.'"

Cons: You can be too honest. Boards of directors and shareholders don't like leaders who admit too much vulnerability. You could end up talking yourself out of a job. "If a board thinks you're undermining confidence in the firm, they could start making moves to replace you," Moore says. Another scenario: A power-hungry associate might sniff blood and go after your job.

How you can improve: Seek out fairness and sympathy, but don't become too big a pleaser. You might have to walk a fine line. In the end, remind yourself that leadership requires assertiveness.

Source : http://www.bnet.com/2403-13056_23-290516.html?promo=713&tag=nl.e713

Finance Tips for Newlyweds

2009-07-01T21:09:00.000-07:00

As a Newlywed i found this article interesting...

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(ARA) - Money can be a complicated aspect of marriage, especially when it comes to merging finances. Finding a system that works for both individuals can help couples achieve financial harmony.

"Figuring out a fair and comfortable way to share responsibilities and expenses can be challenging," says Sam Goller, award-winning author of "Yes, You Can... Achieve Financial Harmony" and contributor to YesYouCanOnline.info. "But it's essential for a healthy relationship. Couples should look at their monetary values and beliefs and work together to decide what type of system allows them to achieve their dreams
as a couple."

Talking about finances can be difficult for many people. Jim Stowers, co-author of the new book "Yes, You Can... Reach Your Goals and Achieve Your Dreams," recommends asking questions to begin a dialogue.

"Asking questions is a good way to toss the conversational ball into the other person's lap," says Stowers. "It not only helps you learn their point of view, but also what they believe and the direction their thinking is taking."

Goller suggests couples ask themselves the following five questions to help facilitate a discussion about spending and saving as a couple.

1. How many bank accounts will we have?
2. Who will pay the bills?
3. Are we getting our money's worth for what we buy?
4. What are our money histories -- what did our parents teach us about money?
5. What dreams do we have as a couple? What do we need to do financially to accomplish these dreams?

A couple's answers to these questions will help define a financial system that provides a foundation on which the relationship can grow. Goller offers three options for couples looking to merge their finances:

The Joint Account -- Whether checking or savings, this type of account allows couples to combine all of their financial resources. This option can make life easier for some couples by centralizing the household finances. However, if one person is in charge of managing the account, the other person can feel left out of the financial picture. It also requires that both partners diligently share when they use funds out of the account.

Separate Accounts -- Some couples prefer the autonomy of separate accounts. With this system both people are responsible for maintaining their own account, which may include paying some of the bills. If couples choose this option, Goller cautions that individuals may need to work harder to be equally involved in the financial relationship.

"Just because you have separate accounts, doesn't mean your financial decisions have separate consequences," says Goller. "You still need to meet on a regular basis and discuss how you are using your money to achieve your common goals."

A Combination of Accounts -- A combination of joint and separate accounts is another viable alternative. This option allows both partners to contribute while maintaining their autonomy. Couples often determine a percentage of income that will be put in both the joint and separate accounts. Individual accounts can be used for personal purchases. The joint account can contain funds for bills and joint purchases. With a clear definition of who's paying which bills couples can work together to bring financial balance and emotional harmony to the relationship.

"Regardless of the financial style a couple chooses, communicating about finances is key," says Goller. "The more you discuss how and why you each spend money, the deeper and stronger your relationship will grow."

For more information on merging finances as a couple and achieving financial harmony, please visit www.YesYouCanOnline.info.

Courtesy of ARAcontent

How to read a Financial Statement

2009-06-24T20:58:00.000-07:00

Beginners' Guide to Financial Statements

The Basics

If you can read a nutrition label or a baseball box score, you can learn to read basic financial statements. If you can follow a recipe or apply for a loan, you can learn basic accounting. The basics aren’t difficult and they aren’t rocket science.

This brochure is designed to help you gain a basic understanding of how to read financial statements. Just as a CPR class teaches you how to perform the basics of cardiac pulmonary resuscitation, this brochure will explain how to read the basic parts of a financial statement. It will not train you to be an accountant (just as a CPR course will not make you a cardiac doctor), but it should give you the confidence to be able to look at a set of financial statements and make sense of them.

Let’s begin by looking at what financial statements do.

“Show me the money!”

We all remember Cuba Gooding Jr.’s immortal line from the movie Jerry Maguire, “Show me the money!” Well, that’s what financial statements do. They show you the money. They show you where a company’s money came from, where it went, and where it is now.

There are four main financial statements. They are:

balance sheets;
income statements;
cash flow statements; and
statements of shareholders’ equity.

Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time. Cash flow statements show the exchange of money between a company and the outside world also over a period of time. The fourth financial statement, called a “statement of shareholders’ equity,” shows changes in the interests of the company’s shareholders over time.

Let’s look at each of the first three financial statements in more detail.

Balance Sheets
A balance sheet provides detailed information about a company’s assets, liabilities and shareholders’ equity.

Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as trademarks and patents. And cash itself is an asset. So are investments a company makes.

Liabilities are amounts of money that a company owes to others. This can include all kinds of obligations, like money borrowed from a bank to launch a new product, rent for use of a building, money owed to suppliers for materials, payroll a company owes to its employees, environmental cleanup costs, or taxes owed to the government. Liabilities also include obligations to provide goods or services to customers in the future.

Shareholders’ equity is sometimes called capital or net worth. It’s the money that would be left if a company sold all of its assets and paid off all of its liabilities. This leftover money belongs to the shareholders, or the owners, of the company.

The following formula summarizes what a balance sheet shows:
ASSETS = LIABILITIES + SHAREHOLDERS' EQUITY

A company's assets have to equal, or "balance," the sum of its liabilities and shareholders' equity.

A company’s balance sheet is set up like the basic accounting equation shown above. On the left side of the balance sheet, companies list their assets. On the right side, they list their liabilities and shareholders’ equity. Sometimes balance sheets show assets at the top, followed by liabilities, with shareholders’ equity at the bottom.

Assets are generally listed based on how quickly they will be converted into cash. Current assets are things a company expects to convert to cash within one year. A good example is inventory. Most companies expect to sell their inventory for cash within one year. Noncurrent assets are things a company does not expect to convert to cash within one year or that would take longer than one year to sell. Noncurrent assets include fixed assets. Fixed assets are those assets used to operate the business but that are not available for sale, such as trucks, office furniture and other property.

Liabilities are generally listed based on their due dates. Liabilities are said to be either current or long-term. Current liabilities are obligations a company expects to pay off within the year. Long-term liabilities are obligations due more than one year away.

Shareholders’ equity is the amount owners invested in the company’s stock plus or minus the company’s earnings or losses since inception. Sometimes companies distribute earnings, instead of retaining them. These distributions are called dividends.

A balance sheet shows a snapshot of a company’s assets, liabilities and shareholders’ equity at the end of the reporting period. It does not show the flows into and out of the accounts during the period.

Income Statements
An income statement is a report that shows how much revenue a company earned over a specific time period (usually for a year or some portion of a year). An income statement also shows the costs and expenses associated with earning that revenue. The literal “bottom line” of the statement usually shows the company’s net earnings or losses. This tells you how much the company earned or lost over the period.

Income statements also report earnings per share (or “EPS”). This calculation tells you how much money shareholders would receive if the company decided to distribute all of the net earnings for the period. (Companies almost never distribute all of their earnings. Usually they reinvest them in the business.)

To understand how income statements are set up, think of them as a set of stairs. You start at the top with the total amount of sales made during the accounting period. Then you go down, one step at a time. At each step, you make a deduction for certain costs or other operating expenses associated with earning the revenue. At the bottom of the stairs, after deducting all of the expenses, you learn how much the company actually earned or lost during the accounting period. People often call this “the bottom line.”

At the top of the income statement is the total amount of money brought in from sales of products or services. This top line is often referred to as gross revenues or sales. It’s called “gross” because expenses have not been deducted from it yet. So the number is “gross” or unrefined.

The next line is money the company doesn’t expect to collect on certain sales. This could be due, for example, to sales discounts or merchandise returns.

When you subtract the returns and allowances from the gross revenues, you arrive at the company’s net revenues. It’s called “net” because, if you can imagine a net, these revenues are left in the net after the deductions for returns and allowances have come out.

Moving down the stairs from the net revenue line, there are several lines that represent various kinds of operating expenses. Although these lines can be reported in various orders, the next line after net revenues typically shows the costs of the sales. This number tells you the amount of money the company spent to produce the goods or services it sold during the accounting period.

The next line subtracts the costs of sales from the net revenues to arrive at a subtotal called “gross profit” or sometimes “gross margin.” It’s considered “gross” because there are certain expenses that haven’t been deducted from it yet.

The next section deals with operating expenses. These are expenses that go toward supporting a company’s operations for a given period – for example, salaries of administrative personnel and costs of researching new products. Marketing expenses are another example. Operating expenses are different from “costs of sales,” which were deducted above, because operating expenses cannot be linked directly to the production of the products or services being sold.

Depreciation is also deducted from gross profit. Depreciation takes into account the wear and tear on some assets, such as machinery, tools and furniture, which are used over the long term. Companies spread the cost of these assets over the periods they are used. This process of spreading these costs is called depreciation or amortization. The “charge” for using these assets during the period is a fraction of the original cost of the assets.

After all operating expenses are deducted from gross profit, you arrive at operating profit before interest and income tax expenses. This is often called “income from operations.”

Next companies must account for interest income and interest expense. Interest income is the money companies make from keeping their cash in interest-bearing savings accounts, money market funds and the like. On the other hand, interest expense is the money companies paid in interest for money they borrow. Some income statements show interest income and interest expense separately. Some income statements combine the two numbers. The interest income and expense are then added or subtracted from the operating profits to arrive at operating profit before income tax.

Finally, income tax is deducted and you arrive at the bottom line: net profit or net losses. (Net profit is also called net income or net earnings.) This tells you how much the company actually earned or lost during the accounting period. Did the company make a profit or did it lose money?
Earnings Per Share or EPS
Most income statements include a calculation of earnings per share or EPS. This calculation tells you how much money shareholders would receive for each share of stock they own if the company distributed all of its net income for the period.

To calculate EPS, you take the total net income and divide it by the number of outstanding shares of the company.

Cash Flow Statements
Cash flow statements report a company’s inflows and outflows of cash. This is important because a company needs to have enough cash on hand to pay its expenses and purchase assets. While an income statement can tell you whether a company made a profit, a cash flow statement can tell you whether the company generated cash.

A cash flow statement shows changes over time rather than absolute dollar amounts at a point in time. It uses and reorders the information from a company’s balance sheet and income statement.

The bottom line of the cash flow statement shows the net increase or decrease in cash for the period. Generally, cash flow statements are divided into three main parts. Each part reviews the cash flow from one of three types of activities:

operating activities;
investing activities;
financing activities.

Operating Activities
The first part of a cash flow statement analyzes a company’s cash flow from net income or losses. For most companies, this section of the cash flow statement reconciles the net income (as shown on the income statement) to the actual cash the company received from or used in its operating activities. To do this, it adjusts net income for any non-cash items (such as adding back depreciation expenses) and adjusts for any cash that was used or provided by other operating assets and liabilities.

Investing Activities
The second part of a cash flow statement shows the cash flow from all investing activities, which generally include purchases or sales of long-term assets, such as property, plant and equipment, as well as investment securities. If a company buys a piece of machinery, the cash flow statement would reflect this activity as a cash outflow from investing activities because it used cash. If the company decided to sell off some investments from an investment portfolio, the proceeds from the sales would show up as a cash inflow from investing activities because it provided cash.

Financing Activities
The third part of a cash flow statement shows the cash flow from all financing activities. Typical sources of cash flow include cash raised by selling stocks and bonds or borrowing from banks. Likewise, paying back a bank loan would show up as a use of cash flow.

Read the Footnotes
A horse called “Read The Footnotes” ran in the 2004 Kentucky Derby. He finished seventh, but if he had won, it would have been a victory for financial literacy proponents everywhere. It’s so important to read the footnotes. The footnotes to financial statements are packed with information. Here are some of the highlights:

Significant accounting policies and practices – Companies are required to disclose the accounting policies that are most important to the portrayal of the company’s financial condition and results. These often require management’s most difficult, subjective or complex judgments.

Income taxes – The footnotes provide detailed information about the company’s current and deferred income taxes. The information is broken down by level – federal, state, local and/or foreign, and the main items that affect the company’s effective tax rate are described.

Pension plans and other retirement programs – The footnotes discuss the company’s pension plans and other retirement or post-employment benefit programs. The notes contain specific information about the assets and costs of these programs, and indicate whether and by how much the plans are over- or under-funded.

Stock options – The notes also contain information about stock options granted to officers and employees, including the method of accounting for stock-based compensation and the effect of the method on reported results.

Read the MD&A
You can find a narrative explanation of a company’s financial performance in a section of the quarterly or annual report entitled, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” MD&A is management’s opportunity to provide investors with its view of the financial performance and condition of the company. It’s management’s opportunity to tell investors what the financial statements show and do not show, as well as important trends and risks that have shaped the past or are reasonably likely to shape the company’s future.

The SEC’s rules governing MD&A require disclosure about trends, events or uncertainties known to management that would have a material impact on reported financial information. The purpose of MD&A is to provide investors with information that the company’s management believes to be necessary to an understanding of its financial condition, changes in financial condition and results of operations. It is intended to help investors to see the company through the eyes of management. It is also intended to provide context for the financial statements and information about the company’s earnings and cash flows.

Financial Statement Ratios and Calculations
You’ve probably heard people banter around phrases like “P/E ratio,” “current ratio” and “operating margin.” But what do these terms mean and why don’t they show up on financial statements? Listed below are just some of the many ratios that investors calculate from information on financial statements and then use to evaluate a company. As a general rule, desirable ratios vary by industry.

Debt-to-equity ratio compares a company’s total debt to shareholders’ equity. Both of these numbers can be found on a company’s balance sheet. To calculate debt-to-equity ratio, you divide a company’s total liabilities by its shareholder equity, or Debt-to-Equity Ratio = Total Liabilities / Shareholders’ Equity

If a company has a debt-to-equity ratio of 2 to 1, it means that the company has two dollars of debt to every one dollar shareholders invest in the company. In other words, the company is taking on debt at twice the rate that its owners are investing in the company.

Inventory turnover ratio compares a company’s cost of sales on its income statement with its average inventory balance for the period. To calculate the average inventory balance for the period, look at the inventory numbers listed on the balance sheet. Take the balance listed for the period of the report and add it to the balance listed for the previous comparable period, and then divide by two. (Remember that balance sheets are snapshots in time. So the inventory balance for the previous period is the beginning balance for the current period, and the inventory balance for the current period is the ending balance.)

To calculate the inventory turnover ratio, you divide a company’s cost of sales (just below the net revenues on the income statement) by the average inventory for the period, or Inventory Turnover Ratio = Cost of Sales / Average Inventory for the Period

If a company has an inventory turnover ratio of 2 to 1, it means that the company’s inventory turned over twice in the reporting period.

Operating margin compares a company’s operating income to net revenues. Both of these numbers can be found on a company’s income statement. To calculate operating margin, you divide a company’s income from operations (before interest and income tax expenses) by its net revenues, or Operating Margin = Income from Operations / Net Revenues

Operating margin is usually expressed as a percentage. It shows, for each dollar of sales, what percentage was profit.

P/E ratio compares a company’s common stock price with its earnings per share. To calculate a company’s P/E ratio, you divide a company’s stock price by its earnings per share, or P/E Ratio = Price per share / Earnings per share

If a company’s stock is selling at $20 per share and the company is earning $2 per share, then the company’s P/E Ratio is 10 to 1. The company’s stock is selling at 10 times its earnings.
Working capital is the money leftover if a company paid its current liabilities (that is, its debts due within one-year of the date of the balance sheet) from its current assets.
Working Capital = Current Assets – Current Liabilities

Bringing It All Together

Although this brochure discusses each financial statement separately, keep in mind that they are all related. The changes in assets and liabilities that you see on the balance sheet are also reflected in the revenues and expenses that you see on the income statement, which result in the company’s gains or losses. Cash flows provide more information about cash assets listed on a balance sheet and are related, but not equivalent, to net income shown on the income statement. And so on. No one financial statement tells the complete story. But combined, they provide very powerful information for investors. And information is the investor’s best tool when it comes to investing wisely.

http://www.sec.gov/investor/pubs/begfinstmtguide.htm

Indonesia's 40 Richest year 2009

2009-05-22T04:23:00.001-07:00

Range from age 40+ to 90+ these names are Indonesia's Top 40 reches people, with net worth range from USD$ 55 Mio to USD$ 2 Bio. Some were inherited, yet many were started from scratch. These people came from many different cultural background with different level of education. I personally don't know any of them in deep, yet their names or legacy are populating newspaper daily.

Spending more than enough hours of the day in building their Business Empire. Being asked of their Net Worth, i would pretty sure each of them would take more than 5 minutes to figure out how much do they own. Most of them were started their Empire on the early age and persistent in growth and will.

Their hardship definitely paid of today even if they didn't get to the list. Therefore i could say that it takes Time, Network, Education and Persitence to reach Top-40.

Have we investing enough on those ??

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Indonesia's 40 Richest

#1 Sukanto Tanoto & family
Age 56
Net Worth $2.8 billion

Began supplying equipment and materials to state oil firm. In 1973 moved into forest products. In 1995 took public pulp and paper business, Asia Pacific Resources International, on New York Stock Exchange, only to delist in 2001. Today his privately held RGM International thrives in paper, palm oil and energy.

#2 Putera Sampoerna & family
Age 58
Net Worth $2.1 billion

Was Indonesia's third-largest seller of kretek cigarettes until Philip Morris bought controlling stake in HM Sampoerna Tbk in 2005. Now University of Houston grad moving into gaming: bought London casino Les Ambassadeurs in March 2006. Donates to schools.

#3 Eka Tjipta Widjaja & family
Age 83
Net Worth $2.0 billion

Came from China to Indonesia as a child. Sold biscuits at age 17, but pulp, paper and palm oil became source of fortune. Created Asia Pulp & Paper, which defaulted on massive debt in 2001. His children and relatives now run privately held Sinar Mas and its listed Asia Food & Properties. Grandson Eric Oei invests in construction back on mainland China.

#4 Rachman Halim & family
Age 59
Net Worth $1.8 billion

Halim's family, the Wonowidjojos, own and run publicly traded Gudang Garam, Indonesia's No. 1 maker of kretek cigarettes. Got rich off majority stake in $2 billion (market cap) company. Still sells first type of cigarette Gudang Garam made: corn-husked kretek.

#5 R. Budi Hartono & family
Age 65
Net Worth $1.4 billion

Owns privately held kretekmaker Djarum. Started in 1951 in Kudus, Central Java as small hand-rolling operation. Ventured abroad; now boasts 70% of U.S. kretek market. First to sell light or flavored version. Has Bank Central Asia stake.

#6 Aburizal Bakrie & family
Age 59
Net Worth $1.2 billion

In 1980s took helm of Bakrie Group, which his late father founded in 1942 as trading company. Today in infrastructure, telecom, coal mining and media. Hit hard by Asian financial crisis but recovered. Presidential candidate in 2004; now country's coordinating minister for people's welfare.

#7 Eddy William Katuari & family
Age 55
Net Worth $1.0 billion

Son of Johannes Ferdinand Katuari, who cofounded Wings group as laundry detergent maker in 1948. Wings is now huge privately held company that sells range of consumer goods like toothpaste, shampoo and skin care. Eddy took Wings' helm when father died in 2004. Also invests in real estate and chemical plants.

#8 Trihatma Haliman
Age 54
Net Worth $900 million

Took over privately held Agung Podomoro in 1986 when it was fledgling real estate developer and built it into one of country's largest. Has built thousands of apartments. Now involved in 15 projects in Jakarta and has moved beyond residential into retail and commercial. May try to go public.

#9 Arifin Panigoro
Age 61
Net Worth $815 million

Founded oil company Medco Energi Internasional in 1980. Took it public in 1994 and used proceeds to buy small drilling company in South Sumatra. Big break: turned out to have enormous reserves. Brief political career. Brother Hilmi runs Medco Energi and holds Arifin's shares in trust.

#10 Liem Sioe Liong & family
Age 91
Net Worth $800 million

Salim clan head also goes by Soedono Salim. With sons Anthoni and Andree built Salim Group into vast empire in food, shipping and cement. Public stakes in Bank Central Asia and First Pacific, where Anthoni is chairman. Known as "Uncle Liem" at offices.

#11 Mochtar Riady & family
Age 76
Net Worth $570 million

Son of immigrant shopkeepers from Fujian, China. Bought a stake in ailing bank that catered to Fujianese immigrants and turned the investment into $2 billion (sales) finance, property and retail empire. Also controls group that owns the license to publish Indonesian edition of FORBES. Enjoys reading about nanotech.

#12 Peter Sondakh
Age 54
Net Worth $530 million

Owns bulk of privately held Rajawali Group. Established in 1984, now has 20,000 employees and diverse holdings in telecom, consumer goods and transportation. Owns large Indonesian hotel chain, which operates under Sheraton and Novotel names, and 50% of 4 department stores.

#13 Prajogo Pangestu
Age 55
Net Worth $510 million

Timber baron before 1997 financial crisis. Started in late 1970s at Djajanti timber group and formed listed Barito Pacific. His log operations are much smaller today, but he still has wealth built up in Tri Polyta Indonesia Tbk, Indonesia's largest polypropylene producer.

#14 Martua Sitorus
Age 46
Net Worth $475 million

Palm oil king. In 1991 cofounded, with nephew of Malaysian tycoon Robert Kuok, Wilmar International, one of Asia's largest palm oil producers that owns trees, refines oil and trades. Plans to launch palm oil biofuel plant in 2007. Listed on Singapore exchange in August, now a $2 billion market cap.

#15 Paulus Tumewu
Age 54
Net Worth $440 million

Founder and chairman of listed Ramayana, which offers quality goods at affordable prices. Recent rumor quelled: desire to sell controlling stake to foreign investors. Started clothing store in 1978; now has everything from food to toys.

#16 Murdaya Poo and Siti Hartati Cakra
Age 65/60
Net Worth $430 million

Husband-and-wife team made first fortune as supplier and contractor for state-owned electricity company. Founded Central Cipta Murdaya Group, also known as Berca Group, in 1990. Today the privately held conglomerate is in timber and makes Nike sneakers.

#17 Husein Djojonegoro & family
Age 57
Net Worth $360 million

Runs privately held ABC consumer-goods group. Founded in central Java in 1948 by his late father and uncle, who began with herbal wine and got into food, toothpaste, batteries. Now over 100 products.

#18 Chairul Tanjung
Age 44
Net Worth $310 million

Chairman and founder of privately held Para Group, which has holdings in financial services, broadcasting, property and energy. Para's roots trace to 1984, when Tanjung started as a shoe manufacturer while at University of Indonesia.

#19 Hadi Surya
Age 70
Net Worth $305 million

Heads Berlian Laju Tanker, which has grown into one of the country's largest shipping lines; its fleet currently has more than 50 vessels. Was the first shipper to be listed in Indonesia in 1990. Still largest shareholder, with 36% stake.

#20 Tan Kian
Age 48
Net Worth $300 million

Property baron. Through privately held Dua Mutiara, co-owns a Marriott and 2 Ritz-Carlton hotels in Jakarta and is building $250 million Pacific Place, a talked-about commercial, retail and hotel project. Known to believe in feng shui; makes sure his office faces east.

#21 Sjamsul Nursalim
Age 64
Net Worth $295 million

Set up Gajah Tunggal in 1951 as small maker of bicycle tires and got into motorcycle, car tires. Now claims it's among world's top automobile tire producers, with $740 million in sales. In mining, too.

#22 George and Sjakon Tahija
Age 48/53
Net Worth $265 million

Sons of Julius Tahija, who built diverse group from financial services to mining and died in 2002. Through family holding company listed Pearl Energy on Singapore stock exchange at 45 cents a share in April 2005. Nine months later sold 48% stake for $1.24 a share

#23 Edwin Soeryadjaya
Age 57
Net Worth $230 million

Cofounder, two-thirds owner of growing investment firm Saratoga Investama Sedaya. Second son of William Soeryadjaya, who started automaker Astra International but sold it in 1992 to pay off debts of brother who is now a treasurer of Indonesia's Golkar political party. Plans to build power plants.

#24 Kartini Muljadi and Dian Paramita Tamzil
Age NA
Net Worth $225 million

Muljadi, a former judge, took over drugmaker Tempo Scan Pacific in 1982 with sister-in-law Tamzil. In 1994 launched public offering. Muljadi, now retired, still does legal consulting. Tamzil is Tempo Scan president commissioner and Muljadi's son Handojo, 42, is president director.

#25 Harjo Sutanto & family
Age NA
Net Worth $220 million

Founded Wings group in 1948 with Johannes Ferdinand Katuari, father of Eddy William Katuari (No. 7). With family, estimated to own 25% of the consumer-goods group and manages distribution.

#26 Soegiharto Sosrodjojo
Age 72
Net Worth $215 million

In 1970s took helm of Sosro Group with 3 brothers. Built largely on Teh Botol Sosro, ready-to-drink bottled tea that competes head-to-head with Coke. Grandson now heads company.

#27 Tan Siong Kie
Age 90
Net Worth $200 million

Established privately held Rodamas Group in 1960 to distribute electronic components, air conditioners and industrial chemicals. Now in banking, food and seasoning. Lives in Singapore.

#28 Aksa Mahmud
Age 61
Net Worth $195 million

Thirty years ago a Mitsubishi dealer in South Sulawesi, in eastern Indonesia. Now his privately held Bosowa Investama is in energy, infrastructure. A brother-in-law to Indonesia's Vice President Jusuf Kalla (No. 36).

#29 Soetjipto Nagaria
Age 66
Net Worth $150 million

Made fortune turning a large swamp in North Jakarta into one of the city's most sought-after residential neighborhoods. After stint as real estate broker, founded Summarecon Agung developer in 1975; listed in 1990.

#30 Ciputra & family
Age 74
Net Worth $145 million

Uses one name. Majority-owner and head of Ciputra, a major, listed real estate group. Founded in 1981, caught big break building houses around Jakarta's airport. Now has real estate in Jakarta, Surabaya and Hanoi. Orphaned at age 12.

#31 Kris Wiluan
Age 56
Net Worth $140 million

Began supplying pipes for construction in Singapore and nearby Batam Island in the 1970s. Established factory land on Batam in 1979; well-positioned when it became industrial hub. Later launched tubing maker for oil and gas companies. Now also in tourism, transportation, property.

#32 Sutanto Djuhar & family
Age 77
Net Worth $135 million

Former business partner of Liem Sioe Liong (No. 10) of secretive Salim Group. Born in Indonesia, but Chinese name is Liem Oen Kian. Along with son Tedy sits on board of First Pacific; together own a 10% stake.

#33 Husein Sutjiadi
Age 52
Net Worth $120 million

Started as cocoa trader and moved into production and exportation when he bought 26% stake in Davomas from founding Hendrawan family in 1990. Took company public 4 years later. Influences company strategy, but no executive post or board seat.

#34 Boenjamin Setiawan & family
Age 73
Net Worth $115 million

Cofounded Kalbe Farma in a garage in 1966; today chairman. In December 2005 merged Kalbe with Enseval Putera Megatrading and Dankos Labs to form largest listed drug company in Southeast Asia, with revenue of $600 million. Has Ph.D. in pharmacology.

#35 Tomy Winata
Age 48
Net Worth $110 million

Hefty stakes in listed Artha Graha Bank and unlisted Agung Sedayu property. In 2003 brought libel suit against local magazine after a story about him. Several journalists were assaulted by protesters in front of magazine offices. In February Indonesia's high court said publication did nothing wrong.

#36 Jusuf Kalla
Age 64
Net Worth $105 million

Took control of privately held Hadji Kalla, his family's trading company in 1967. Expanded into engineering, property, construction and telecom before entering politics in 1999 and passing company helm to brother Achmad. Now Indonesia's vice president and president of its Golkar Party.

#37 Soedarpo Sastrosatomo & family
Age 86
Net Worth $100 million

Shipping agent in 1953 for Indonesian line owned by U.S. Steel. Eleven years later launched own line by buying and merging five firms. Today his Samudera Indonesia is the country's largest carrier. Not all has worked out: his chemical distributor went belly-up in late 1990s.

#38 Alim Markus & family
Age 55
Net Worth $95 million

His father and uncle founded Maspion Group in 1962 with eight people making aluminum kitchenware. Now privately held company has 30,000 employees and makes plasticware, glassware and electrical appliances. Took reins after father died in 2003.

#39 Jakob Oetama
Age 75
Net Worth $90 million

Launched daily Indonesian newspaper Kompas in 1965 with best friend P.K. Ojong, who died in 1980. Built Kompas into country's top daily. Still owns it, now under Kompas-Gramedia group. Also runs hotel chain and bookstores.

#40 Tjandra Kusuma
Age NA
Net Worth $80 million

With son Eka Tjandranegara started Mulia Group in 1980. Has major stakes in 2 listed companies: Mulia Land boasts it is Jakarta's largest commercial property owner, Mulia Industrindo makes ceramics and glass.

Source : http://www.forbes.com/2008/12/10/richest-indonesian-billionaires-biz-indonesiarichest08-cz_sn_1210ndonesia_land.html

Cantik vs Kaya

2009-01-27T05:03:00.000-08:00

Sebuah analogi menarik tentang hal yang bisa kita investasikan...

=============

Seorang gadis muda dan cantik, mengirimkan surat ke sebuah majalah terkenal, dengan judul: "Apa yang harus saya lakukan untuk dapat menikah dengan pria kaya?"

Saya akan jujur, tentang apa yang akan coba saya katakan di sini. tahun ini saya berumur 25 tahun. Saya sangat cantik, mempunyai selera yang bagus akan fashion. Saya ingin menikahi seorang pria dengan penghasilan minimal $500ribu/tahun. Anda mungkin berpikir saya matre, tapi penghasilan $1juta/tahun hanya dianggap sebagai kelas menengah di New York .

Persyaratan saya tidak tinggi. apakah ada di forum ini mempunyai penghasilan $500ribu/tahun? apa kalian semua sudah menikah? yang saya ingin tanyakan:

Apa yang harus saya lakukan untuk menikahi orang kaya seperti anda? Yang terkaya pernah berkencan dengan saya hanya $250rb/tahun. Bila seseorang ingin pindah ke area pemukiman elit di City Garden New York , penghasilan $ 250rb/tahun tidaklah cukup. Dengan kerendahan hati, saya ingin menanyakan:

Dimana para lajang2 kaya hang out?
Kisaran umur berapa yang harus saya cari?
Kenapa kebanyakan istri dari orang2 kaya hanya berpenampilan standar?
Saya pernah bertemu dengan beberapa wanita yang memiliki penampilan tidak menarik, tapi mereka bisa menikahi pria kaya?
Bagaimana, anda memutuskan, siapa yang bisa menjadi istrimu, dan siapa yang hanya bisa menjadi pacar?

Si Cantik

++++++++++++ +++++++++ +++++++++ +++++++

Inilah balasan dari seorang pria yang bekerja di Finansial Wall Street :

saya telah membaca surat mu dengan semangat. saya rasa banyak gadis2 di luar sana yang mempunyai pertanyaan yang sama. ijinkan saya untuk menganalisa situasi mu sebagai seorang profesional. Pendapatan tahunan saya lebih dari $500rb, sesuai syaratmu, jadi saya harap semuanya tidak berpikir saya main2 di sini. dari sisi seorang bisnis, merupakan keputusan salah untuk menikahimu.

Jawabannya mudah. Saja, saya coba jelaskan, coba tempatkan "kecantikan" dan "uang" bersisian, dimana anda mencoba menukar kecantikan dengan uang: pihak A menyediakan kecantikan, dan pihak B membayar untuk itu, hal yg masuk akal. Tapi ada masalah disini, kecantikan anda akan menghilang, tapi uang saya tidak akan hilang tanpa ada alasan yang bagus. faktanya, pendapatan saya mungkin akan meningkat dari tahun ke tahun, tapi anda tidak akan bertambah cantik tahun demi tahun.

Karena itu, dari sudut pandang ekonomi, saya adalah aset yang akan meningkat, dan anda adalah aset yang akan menyusut. bukan hanya penyusutan normal, tapi penyusutan eksponensial.

Jika hanya (kecantikan) itu aset anda, nilai anda akan sangat mengkhawatirkan 10 tahun mendatang. dari aturan yg kita gunakan di Wall Street, setiap pertukaran memiliki posisi, kencan dengan anda juga merupakan posisi tukar. jika nilai tukar turun, kita akan menjualnya dan adalah ide buruk untuk menyimpan dalam jangka lama, seperti pernikahan yang anda inginkan. Mungkin terdengar kasar, tapi untuk membuat keputusan bijaksana, setiap aset dengan nilai depresiasi besar akan dijual atau "disewakan." siapa saja dengan penghasilan tahunan $500rb, bukan orang bodoh, kami hanya berkencan dengan anda, tapi tidak akan menikahi anda.

Saya akan menyarankan agar anda lupakan saja untuk mencari cara menikahi orang kaya. lebih baik anda menjadikan diri anda orang kaya dengan pendapatan $500rb/tahun. ini kesempatan lebih bagus daripada mencari orang kaya bodoh. mudah2an balasan ini dapat membantu. jika anda tertarik untuk servis "sewa pinjam," hubungi saya.

TTD,
J.P.. Morgan _,_._,___

Banker-turned-'barista' predicts big things for gourmet coffee

2008-11-26T19:48:00.000-08:00

Kouta-san, Thank you for sharing your courage on changing your life & career direction... it is very inspiring... i wish to have the same courage too...

i hope i can have the opportunity to taste your specialty coffee...

Gambate Kudasai !!!

==============================

Banker-turned-'barista' predicts big things for gourmet coffee
By TETSUSHI KAJIMOTO - Staff writer

Kouta Matsuda's obsession with world food began in his childhood, when he traveled around the globe with his father, a trader.

Kouta Matsuda spells out the taste -- and profit -- in specialty coffee.
But the 32-year-old president, CEO and chief "barista" (a specialist in making gourmet coffee) of Tully's Coffee Japan Co. didn't fall in love with specialty coffee until a trip to Boston for a friend's wedding in 1995.

He was so impressed by the taste of specialty coffee that he resigned from Sanwa Bank in 1996 and decided to pursue a career in coffee. When Tom O'Keefe, Tully's founder, chairman and head barista, came to Tokyo later that year, Matsuda negotiated with him to obtain a franchise for the third-largest coffee shop chain in the U.S., which is based in Seattle.

Matsuda admits that he couldn't care less about the taste of coffee during his banking days.
"I used to drink coffee like smokers smoked cigarettes -- like at times when I was working on a report and could do with a little something to keep my mouth busy," he said in a recent interview.

"But now I can't drink canned or instant coffee."

Matsuda launched the affiliate firm in May 1998, about nine months after he set up a Tully's coffee shop in Tokyo's posh Ginza district, which proved a success.

With deflation now gripping the economy, some wonder why relatively expensive specialty coffee shop chains like Starbucks and Tully's are proving so popular.

But Matsuda firmly believes that business opportunities still exist in a dour economic environment as long as value is added to the product and a strong brand image is projected.
"The sheer taste and quality of the coffee make a difference after all," Matsuda said. "And many Japanese consumers have a subtle sense of taste and can distinguish one type of coffee from another by its aroma and appreciate high-quality coffee."

Matsuda believes businesses such as his will increase in popularity as Japanese people increasingly embrace their individuality. This is in stark contrast to their tendency to sway between polarized extremes, as was evident in consumer sentiment during and after the asset-inflated bubble economy years.

"During the bubble (years of the late 1980s), people were infatuated with big-name brands and anything expensive," Matsuda said, recalling his college senior year around 1990 when he didn't mind paying 800 yen to 900 yen for a cup of coffee while job-hunting.

"Then the bubble burst, and people suddenly leaped at coffee served for 150 yen to 180 yen," he said. "And now consumers have become more mature and are willing to spend a little extra money on what they consider worthwhile.

"Also, when businesspeople are forced to tighten their purse strings, they may feel a sense of luxury and relief in sipping a cup or two of specialty coffee, which costs about 100 yen more than some low-priced brands."

Despite an initial struggle to get the business off the ground, Matsuda said he has never been happier, pursuing his childhood dream to own his own business in the food industry.
What's more, the chain has now secured a foothold in the Tokyo metropolitan area with 34 outlets, and recently went public to facilitate further expansion.

The entrepreneur predicted, "This is just the beginning, since specialty coffee has only 1 percent of the overall coffee market share in Japan now."

The Japan Times: Sunday, Sept. 23, 2001(C)
All rights reserved

Source : http://search.japantimes.co.jp/print/nn20010923b3.html

why there is no recession in the world's leading Muslim economy By Terry Lacey

2008-11-11T19:19:00.000-08:00

Following the election of US President-elect Barack Obama there is likely to be a slow recovery in confidence in the United States financial and banking system. A recession is unavoidable in the US and EU, but with only a downturn in developing countries. This crisis of confidence in the Western banking and financial system comes during the dying days of the most unpopular American presidency in living memory. Financial mismanagement and weak regulatory frameworks have devastated the US economy, making the rich richer and the poor poorer. Two million Americans may lose their homes. Millions in the US and Europe will lose their jobs.

Yet the devastating legacy of the Bush presidency leaves open great opportunities for Indonesia, the Muslim world and the developing countries of the South.

Indonesia can play a key role in leading the Muslim world toward economic recovery, and help minimize the impact of global recession.

First, by managing its national economy to maintain growth, demand, imports and exports. The nominal Gross Domestic Product for 2009 is projected at $547 billion. Indonesia is already in the top 20 economies of the world.

Indonesia is currently overtaking Belgium and Sweden. It will soon overtake Turkey, the Netherlands and Austria as it enormous size, resources and population come into play. It is a strong candidate to join the top 10 economies in the world within two decades.

Second, by mobilizing investment for oil, gas, energy projects, biofuels, infrastructure (roads, railways, ports), manufacturing and retailing sectors. It needs over $40 billion for electricity alone, to finance an additional 40,000 MWe of power by 2025. Indonesia will become a nuclear power, and plans four power stations. Total foreign investment needed overall during the next 15 years exceeds $100 billion.

Investment is still coming from the US and EU (including Eastern Europe) but increasingly from the BRICs (Brazil, Russia, India and China), and also from Asia-Pacific Economic Cooperation countries like Canada, Japan, Korea, Taiwan, and from Association of Southeast Asian Nations member states (including Brunei, Malaysia, Philippines, Singapore, Thailand). Investment is also coming in greater volume from the Gulf Arab states, Israel and South Africa.

Third, Indonesia can help lead Muslim economies by using its economic size and prestige as a member of the United Nations Security Council to join Brazil, Russia, India, China and Southern countries to bring about changes in policies and in the balance of power in world organizations dealing with trade, finance and development, especially the World Bank, the International Monetary Fund (IMF) and World Trade Organization (WTO).

Indonesia has major reservations about the IMF following its own experience in 1998. German Finance Minister Peer Steinbrueck said that the world should not slip into creating a shadow world economic government run by an inner IMF council. Indonesia is also tired of being kept on the fringes in the WTO.

Asia and Southern countries want a new deal. Muslim countries collectively represent an increasingly important source of capital, while Western liquidity has partly dried up. Muslim economies represent important investment sources as well as investment destinations. The collective size of Muslim economies represents significant demand for Western goods and services, relatively unaffected by the recession in the West.

Indonesia can still deploy export credits, sovereign funds, Islamic finance and other non-traditional financial sources, such as environmental funds and carbon credits. Despite the global downturn Indonesia is still pulling in some bank finance.

A $140 million syndicated loan for Excelcomindo for telecommunications expansion was announced recently. Low-cost airline Lion Air is buying 12 Boeing 737 planes even though the required local cash contribution for the last four has risen to 30 percent. Lion Air will use its own cash to carry on expanding. St. Miguel Corp. of the Philippines is competing with a US-led consortium to clinch a $1.3 billion coal supply deal, to buy PT Bumi Resources from Bakri Brothers. There is money here and money coming in.

Standard and Poors is holding Indonesian credit ratings stable and its credit rating may even be raised. Singapore could slip into recession but Indonesia will not, and the reason is mostly sheer size plus improved financial and economic management.

Indonesia is in a key position as the largest Muslim country in the world with a population of 230 million and a land area of 1.9 million square kilometers.

The Indonesian Gross Domestic Product was $843.7 billion in terms of purchasing power and $432.9 billion in terms of official exchange rates in 2007. It has fixed foreign investment of $57.6 billion and holds $9 billion of investment in other countries. It has more than 3,500 millionaires holding over $100 million each, of whom 70 percent live in Jakarta.

Its current economic growth is 6.5 percent and may fall below 6 percent in 2009 due to reduced exports. Government will stimulate growth using the national budget which already reached $100 billion in 2008. Government is confident it can hold growth at 6 percent. The World Bank has set aside a $2 billion standby loan for 2009 only to be triggered if growth falls below 5.8 percent.

In 2007 Indonesian exports were $118 billion and imports $86 billion, a trade surplus of $32 billion, and foreign exchange reserves as of this month were $50 billion.

Indonesia has already lost some jobs in sectors like textiles. Some exports to the US and Europe fell in the fourth quarter. The stock market, government bonds and the national currency also fell in value during the global financial crash in the first week of October.

The government launched a securities buy-back program spearheaded by state-owned enterprises and defended the rupiah currency by intervening in the currency market via the Bank of Indonesia. The government also took steps to increase liquidity and focused on getting inflation under control and on maintaining growth.

The government has increased guarantees on personal deposits to 2 billion rupiahs ($190,000), which covers 100 percent of deposits for over 99.7 percent of 81 million bank accounts.

Indonesian banks are strong, with adequate reserves, low non-performing loans and almost no exposure to subprime losses. Only a small group of investors lost money on Lehman-related instruments purchased via international banks.

The Indonesian inflation rate is declining from a high of 12 percent to maybe 9 percent by January with reductions planned to between 9 percent and 7 percent for the rest of 2009. The bank rate is being stabilized at 9.5 percent after six months of consecutive rises. It will be held for a while and then reduced to 7.5 percent in 2009.

Indonesian bonds are recovering from their recent nose-dive and the stock market is stabilizing. Local economists say the stock market was over-valued and more normal values and returns will be restored as part of the local share trading cycle.

The government is now focusing on trying to mobilize its massive $115 billion dollar national budget for 2009, up from $100 billion in 2008, to push projects and overall spending forward and help substitute local demand for declines in exports, with every hope of keeping economic growth for 2009 at between 5.5 and 6.0 percent.

Despite the collapse of the Bank of Indonesia subsidiary Indover Bank in the Netherlands, there is no sovereign default. Indonesian Finance Minister Sri Mulyani Indrawati and the new central bank governor, Boediono, have taken a stand against previous mismanagement.

In contrast to the kid-glove treatment of failed bankers and financial managers in the West, who took imprudent and possibly illegal risks, the Indonesian government is directing the work of its Corruption Eradication Commission and Corruption Court against corrupt central bankers and parliamentarians who took bribes.

The Indonesian government also says it will pursue legally those who misused its name and dragged it into the Indover collapse, by implying there were sovereign guarantees backing Indover borrowing when there were none. It also intends to pursue allegations of short trading and fraudulent practices in the stock exchange.

Indonesia lost 10 years as a result of the 1998 banking crash when it put its fate in the hands of the IMF, which initially failed to understand local strengths and exaggerated local weaknesses. An historical photo shows President Suharto sitting at his desk, signing his own political death-warrant while the IMF representative stood over him, as he signed the IMF agreement.

A lot has changed between the Asian banking crash of 1998 and the Wall Street crash of 2008. The economic balance of power in the world has changed and the balance of global power has shifted to the South and East. British Prime Minister Gordon Brown recognized this when he urged the Gulf states and the G20 to help stabilize the world economy.

In the 1998 bank crash Indonesia had no freedom and no choice. This time in 2008 Indonesia has freedom and is stronger, and can chose to tread its own path. Hopefully its greater strength and determination will inspire Muslim and Southern countries not to panic in the face of recession in the West, but to work together to avoid the spread of recession to the South and to build and strengthen a new world economic order.

Terry Lacey is a development economist who writes from Jakarta, Indonesia, on modernization in the Muslim world, investment and trade relations with the European Union and Islamic banking. This article is published with permission from the author.

Source : http://www.dailystar.com.lb/article.asp?edition_id=1&categ_id=2&article_id=97616

Time is All We Have: 3 Ways to Increase Return on Investment

2008-10-29T03:28:00.000-07:00

"Do not squander time for that is the stuff life is made of."- Benjamin Franklin

Return on investment (ROI) is a term you hear frequently, usually in relation to business and finance. The goal (obviously) is to maximize return on the money you invest. The implications of this concept go much deeper when you start to think of time as your primary investment rather than money. Everything you do is an investment of time. When you watch television, you’re making an investment in entertainment. If you watch a show that sucks, you’ve made a bad investment and receive a poor return for your time.

In many ways time is more valuable than money. You’ll always have the opportunity to make more money, but once time has been spent it’s gone forever. When you think of time as a commodity, and all of your actions as investments, it changes the way you approach every day decisions.

We spend time in many different ways: working, eating, sleep, exercise, entertainment, etc. All of these things are important. When we start investing too heavily in one area and not enough in another we create problems for ourselves. The key is investing our time in a manner that perfectly balances each of these areas and forms a productive and pleasurable life.

Deciding how to invest our time is a formidable task. Unlike business, there are no percentages or spreadsheets to reference. We have to rely on experience and intuition. I’m far from a master at this, but these are a few principals I use to guide my decision making.

1. Look for Multiple Positives
A multiple positive is an activity that generates a positive return in more than one area. These are great for ROI because they multiply returns and incur fewer losses. One of my best multiple positives is working on this website. It’s something that I find extremely entertaining, it contributes to a small (but steadily growing) stream of income, and it develops skills that I’ll be able to use the rest of my life like writing, web design, and networking.

Every individual will have different multiple positives, the important part is finding ones that work for you. A multiple positive for a software developer might be working on open source or a personal project. It can even be as simple as playing basketball, a fun game that’s also great exercise. The key to finding multiple positives is finding areas where different positive actions intersect. If I can find a way to get paid to eat delicious food I’ll be golden.

2. Avoid Multiple Negatives
Multiple negatives are the same as multiple positives, except the complete opposite. These are activities that detract from multiple areas of life. One of my favorite weaknesses is going out drinking. This hurts me in three ways: the time spent isn’t productive, drinks are expensive, and the effect of staying up late and being hungover usually ruins the following day. If I don’t have a good time, this is basically the worst possible scenario.

I’m not saying you should never go out and have a good time. To be happy we need socialization and excitement. My point is that we should always try to minimize the negative impact of our actions. I try to do this by minimizing the amount I drink and only going out when I know it will be enjoyable. Often we get caught in a pattern of poor investment. Over time, the benefits fade away and what remains is mostly negative, but we keep doing it out of habit. This can be avoided by periodically analyzing our behavior. Is it still a good investment, or is it time to make a change?

3. Utilize the Power of Compounding
I’m sure that everyone reading this understands the power of compound interest. When you invest money you earn interest. Then you start earning interest on the money you earned from interest. Over many years this continues to compound and eventually leads to a very large sum of money. The same concept applies to time. If you invest time by working hard when you’re young, you put yourself in a position to succeed that will continue compounding for the rest of your life. If you waste time when you’re young, you can’t make up for it later because you’ve lost the opportunity to utilize the power compounding.

Many people my age fail realize this, in fact I didn’t, or at least I didn’t act on it, until fairly recently. The primary reason is that we’re trapped in the childish mindset. As a child, your only responsibility is entertaining yourself. You needn’t worry about investing your time because Mommy and Daddy are there to take care of you and they’re usually happy as long as you stay out of trouble. These days many young adults ride the childish mindset straight through college.

After graduation we’re expected to adopt the adult mindset (and the responsibility of investing our time) instantaneously. A lot of people don’t get it, and every year they waste trying to extend the college days is an opportunity that can never be replaced.

Many people think their time isn’t valuable when they aren’t working, so they throw it away on activities that have a poor return on investment and don’t build for the future. The truth is, no one else is going to consider your time valuable until you do. If you want to acquire the wealth that will provide the freedom to live your ideal lifestyle, start thinking of every decision as an investment. Nothing is insignificant.

One mental model that can help you make better decisions is imagining that your life is a corporation and you’re the only employee. If you were the CEO of John Doe Incorporated, and were obliged to maximize profit on behalf of investors, what would you make yourself do? You’ll find that this sort of analysis simplifies many decisions and increases return on investment.

Source : http://www.pickthebrain.com/blog/time-is-all-we-have-3-ways-to-increase-return-on-investment/

Are You Born to Be a Billionaire?

2008-09-22T02:45:00.000-07:00

by Maureen Farrell, Forbes.com

Empire builders like Bill Gates and Sam Walton aren't just great businessmen. They are bona fide revolutionaries.

Self-made billionaires don't dominate industries--they transform them and spawn new ones. That takes more than intelligence, courage and luck. It takes divine-like vision.

Billionaire entrepreneurs are "not working within the confines of the current market," says Gerald Kraines, chief executive of the Levinson Institute, a business consulting firm in Jaffey, N.H. "They're anticipating things much further afield. You have to see spaces that no one else sees."

The world's self-made billionaires certainly have vision in spades, spanning everything from how computers work to how people shop. But the ability to see around corners isn't the only quality that separates the very accomplished from the stratospherically wealthy. To crack the $1 billion barrier, you need total, unwavering belief in your vision--and an immutable will to pull it off.

"[Billionaire entrepreneurs] need a deep passion and a point of view about the future," says Peter Skarzynski, chief executive of Strategos, a Chicago-based consulting firm that advises global companies, including Nokia and Whirlpool. "They fundamentally believe that they have a better way to solve a set of problems than how they're being solved now."

Billionaires also have a seemingly ravenous appetite for risk. It's hard enough for many of us to muster the courage to abandon our cubicles and start a small company, let alone build an empire. And while the risks pile up as businesses expand, billionaires have a confidence bordering on arrogance that checks their fear and doubt, says Skarzynski.

Are you a born billionaire? Before you tackle a serious growth strategy and all its attendant hassles, ask yourself some hard questions at the outset, says executive psychologist Debra Condren, who has worked with big names like 3M, Chevron and Hewlett-Packard.

The most important one: Why go big at all? Are you looking to cash out in a sale? Enamored of the thought of having your own stock ticker? Suffused with competitive desire? Whatever your reason, get a grip on it before you decide to kick your zealous pursuits into high gear.

Next, ask yourself if you are willing to make tough decisions for the growth of your company. If you have an intense loyalty to the small group who helped get things off the ground, understand that those folks may not be able to come along for the ride. If you're not comfortable supplanting (or firing) them, stay small.

For entrepreneurs who prize their independence, ask yourselves how much of it you're willing to give up. As the demands mount, both your schedule and decisions become less your own; worse, you may have investors and board members to appease.

"It becomes very hard for company founders to accept that they are no longer the real boss," says Carl Robinson, a psychologist who works primarily with growing, middle-market companies.

Like holding forth in public? You'd better, because companies of any significant size need a public face. Entrepreneurs who thrive on public performances--weekly meetings, shareholder gripe sessions, even television interviews--have an easier time than those who shun the spotlight.

"You need to have the ability to fill a room and inspire people," says Condren. If public speaking isn't your forté, but you're still hankering to grow, find a confident substitute who can sell your story.

Not only do you have to be able to communicate, you need a knack for building consensus. In most cases, the bigger your business, the more input you need from those around you--and that means being willing and able to marshal them to your cause. Have a my-way-or-the-highway mentality? Can your growth plans.

In the end, chasing billionaire status--and not crashing along the way--is as much about knowing who you are as it is about knowing how to nab new customers or manage inventory. Who knows? Maybe a modest $100 million might be a better fit.

Copyrighted, Forbes.com. All rights reserved.

Source : http://finance.yahoo.com/banking-budgeting/article/104565/Are-You-Born-to-Be-a-Billionaire?

Seven Forehead-Slapping Stock Blunders

2008-06-19T01:57:00.000-07:00

by Glenn Curtis

Ignorance may be bliss, but not knowing why your stocks are failing and money is disappearing from your pockets is a long way from paradise. In this article, we'll uncover some of the more common investing faux pas, as well as provide you with suggestions on how to avoid them.

1. Ignoring Catalysts
The financial pundits, trade journals and business schools teach that proper valuation is the key to stock selection. This is only half of the picture because calculating P/E ratios and running cash flow spreadsheets can only show where a company is at a given point in time - it cannot tell us where it is heading.

Therefore, in addition to a quantitative evaluation of a company, you must also do a qualitative study so that you can determine which catalysts will drive earnings going forward.

Some good questions to ask yourself include:

* Is the company about to acquire a very profitable enterprise?
* Is a potential blockbuster product about to be launched?
* Are economies of scale being realized at the company's new plant and are margins about to rise dramatically?
* What will drive earnings and the stock price going forward?

2. Catching the Falling Knife
Investors love to buy companies on the cheap, but far too often, investors buy in before all of the bad news is out in the public domain, and/or before the stock stops its free fall. Remember, new lows in a company's share price often beget further new lows as investors see the shares dropping, become disheartened and then sell their shares. Waiting until the selling pressure has subsided is almost always your best bet to avoid getting cut on a falling knife stock. (To learn more, read How Investors Often Cause The Market's Problems.)

3. Failing to Consider Macroeconomic Variables
You have found a company you want to invest in. Its valuation is superior to that of its peers. It has several new products that are about to be launched, and sales could skyrocket. Even the insiders are buying the stock, which bolsters your confidence all the more.

But if you haven't considered the current macroeconomic conditions, such as unemployment and inflation, and how they might impact the sector you are invested in, you've made a fatal mistake!

Keep in mind that a retailer or electronics manufacturer is subject to a number of factors beyond its control that could adversely impact the share price. Things to consider are oil prices, labor costs, scarcity of raw materials, strikes, interest rate fluctuations and consumer spending. (For more on these factors, see Macroeconomic Analysis and Where Top Down Meets Bottom Up.)

4. Forgetting About Dilution
Be on the lookout for companies that are continuously issuing millions of shares and causing dilution, or those that have issued convertible debt. Convertible debt may be converted by the holder into common shares at a set price. Conversion will result in a lower value of holdings for existing shareholders

A better idea is to seek companies that are repurchasing stock and therefore reducing the number of shares outstanding. This process increases earnings per share (EPS) and it tells investors that the company feels that there is no better investment than their own company at the moment. (You can read more about buybacks in A Breakdown Of Stock Buybacks.)

5. Not Recognizing Seasonal Fluctuations
You can't fight the Fed. By that same token, you can't expect that your shares will appreciate even if the company's shares are widely traded in high volumes. The fact is that many companies (such as retailers) go through boom and bust cycles year in and year out. Luckily, these cycles are fairly predictable, so do yourself a favor and look at a five-year chart before buying shares in a company. Does the stock typically wane during a particular part of the year and then pick up during others? If so, consider timing your purchase or sale accordingly. (To learn more, see Capitalizing On Seasonal Effects.)

6. Missing Sector Trends
Some stocks do buck the larger trend; however, this behavior usually occurs because there is some huge catalyst that propels the stock either higher or lower. For the most part, companies trade in relative parity to their peers. This keeps their stock price movements within a trading band or range. Keep this in mind as you consider your entry/exit points in a stock.

Also, if you own stock in a semiconductor company (for example), understand that if other semiconductor companies are experiencing certain problems, your company will too. The same is true if the situation was reversed, and positive news hit the industry.

7. Avoiding Technical Trends
Many people shy away from technical analysis, but you don't have to be a chartist to be able to identify certain technical trends. A simple graph depicting 50-day and 200-day moving averages as well as daily closing prices can give investors a good picture of where a stock is headed. (To learn about this method, read the Basics Of Technical Analysis.)

Be wary of companies that trade and/or close below those averages. It usually means the shares will go lower. The same can be said to the upside. Also remember that as volume trails off, the stock price typically follows suit.

Lastly, look for general trends. Has the stock been under accumulation or distribution over the past year? In other words, is the price gradually moving up, or down? This is simple information that can be gleaned from a chart. It is truly surprising that most investors don't take advantage of these simple and accessible tools.

The Bottom line
There are a myriad of mistakes that investors can and do make. These are simply some of the more common ones. In any case, it pays to think about factors beyond what will propel the stock you own higher. A stock's past and expected performance in comparison to its peers, as well as its performance when subjected to economic conditions that may impact the company, are some other factors to consider.

To read about more investor follies, check out Seven Common Investor Mistakes, Learning From Others' Mistakes and Seven Common Financial Mistakes.

by Glenn Curtis, (Contact Author Biography)

Glenn Curtis started his career as an equity analyst at Cantone Research, a New Jersey-based regional brokerage firm. He has since worked as an equity analyst and a financial writer at a number of print/web publications and brokerage firms including Registered Representative Magazine, Advanced Trading Magazine, Worldlyinvestor.com, RealMoney.com, TheStreet.com and Prudential Securities. Curtis has also held Series 6,7,24 and 63 securities licenses.

Source : Forbes

Nasehat Warren Buffett untuk Kaum Muda

2008-06-13T04:00:00.000-07:00

Found this on Kompas Cyber Media, i thought that i could use all these advices someday...

Buffet has No Cellphone, No Credit Cards and No Personal Computer... gee... that must be a hard way on spending weekend... :p

Thanx to Zeverina for sharing...

JT

================================================

Nasehat Warren Buffett untuk Kaum Muda

WES - Australia

Dear Zeverina & KoKiers

Email address ini hanya untuk Zeverina.

Baru-baru ini aku mendapat Email yang berjudul "Excellent presentation of Warren Buffett" yang setelah membacanya aku pikir baik maka langsung aku forward keberbagai handai taulan. Kemungkinan besar ada KoKiers yang juga mendapat kiriman Email serupa, kalau ada ya silahkan forward ke Email address Zeverina untuk bisa dimuat di KoKi. Atau barangkali Zeverina juga sudah menerimanya dari sumber lain ? Dalam Email tersebut diperlihatkan rumah kediaman dan mobil Warren Buffett.

Disini aku mau membagikannya untuk KoKiers yang sudah aku terjemahkan secara bebas dan aku komentari.

Ada beberapa aspek kehidupannya yang menarik, patut disimak, dijadikan bahan pertimbangan untuk diteladani serta dipraktekkan sepanjang sesuai dengan karakter dan sikon kalian. Different people have different financial requirement and personality.

Aku sering mengutip dan MEMUJI buah pikiran, kepribadian maupun langkah-langkah Warren Buffett serta terkadang menerapkan beberapa teorinya. TETAPI AKU TIDAK AKAN PERNAH MEMUJA WARREN BUFFETT ATAU SIAPAPUN MANUSIA DIDUNIA INI DAN MANUT ATAU MENJIPLAK HABIS "PERSON" YANG AKU PUJI-PUJI. Kalian pasti tahu bedanya "MEMUJI" dan "MEMUJA" !

INILAH 10 ASPEK GAYA HIDUP WARREN BUFFETT :

DORONG ANAK-ANAK ANDA UNTUK BERINVESTASI. Buffett membeli saham pertama ketika berusia 11 tahun dan dia menyesal mengapa memulainya agak terlambat padahal ketika itu harga saham-saham sangat murah. Komentarku : barangkali usia 11 tahun terlalu muda dan sepertinya sekarang ini menurut undang-undang anak-anak dibawah usia 18 tahun tak boleh menandatangani kontrak entah beli mobil, property, saham dsb. Entah di jaman-nya Buffett ?

DORONG ANAK-ANAK ANDA MULAI BERBISNIS. Seseorang dapat memulai banyak hal dengan sedikit uang tabungan. Buffett pada umur 14 tahun membeli sebuah pertanian kecil dengan uang tabungan hasil mengantarkan koran.

Komentarku : lihat nomor 1.

JANGAN MEMBELI SESUATU LEBIH DARIPADA YANG ANDA BETUL-BETUL BUTUHKAN, LALU DORONG ANAK-ANAKMU UNTUK MELAKUKAN HAL YANG SAMA ! Dia tinggal dirumah yang sama yang dibelinya sejak 50 tahun yang lampau ketika baru menikah. Rumah itu hanyalah rumah "kecil" dengan 3 kamar tidur, tetapi dia bilang dia memperoleh segala yang diperlukan dirumah itu. Rumahnya tidak berpagar.

Komentarku :

Buat apa punya rumah besar ada amusement park segala kayak Michael Jackson tetapi hati Jackson tidak happy dan selalu dirundung problem padahal kekayaan Jackson tidak ada apa-apanya dibandingkan Buffett ? Memang betul kita tidak perlu punya rumah kayak istana, tetapi kalau mampu ya apa salahnya beli yang lebih besar, lebih nyaman dan lebih aman (dipagari).

BERLAKULAH APA ADANYA (YOU ARE WHAT YOU ARE) ! Dia menyetir sendiri mobilnya karena tidak punya supir atau pengawal pribadi. Komentarku : Buffett.....buffett........sederhana sih okay-okay saja, tetapi ya jangan kebangetan !

SENANTIASA BERPIKIR EKONOMIS ! Dia nyaris tidak pernah bepergian naik pesawat jet pribadi, padahal dia adalah pemilik perusahaan pesawat jet pribadi terbesar didunia. Komentarku : Ya benar-benar keterlaluan si Buffett ini.

REKRUT ORANG YANG TEPAT UNTUK JABATAN YANG TEPAT ! Perusahaan induknya Berkshire Hathaway menaungi 63 perusahaan besar. Dia hanya perlu menulis satu surat saja setiap tahunnya kepada para CEO perusahaan-perusahaan tersebut sekedar memberikan "goals" tahun itu. Dia tidak pernah menghadiri rapat atau memanggil mereka secara berkala.

Komentarku : No comment !

SODORKAN "GOALS"NYA DAN PASTIKAN MEREKA (CEO) MEMFOKUS DIRI ! Dia hanya menetapkan 2 aturan yaitu "Aturan pertama" : Jangan merugikan pemegang saham dan "Aturan kedua" : Jangan lupa Aturan pertama.

JANGAN SOK PAMER ! BERLAKU WAJAR SAJA DAN LAKUKAN APA YANG ANDA SUKAI ! Dia jarang bergaul pesta-pesta dikalangan atas (jet set). Sepulang kerja, dia langsung pulang kerumah nonton TV sambil mengunyah Popcorn.

Komentarku :

Ya memang bisnisnya dia sebagai investor di bursa saham tidak perlu sosialisasi begituan terkecuali dia mau lakukan "inside trading" yang melanggar hukum. Orang sekaliber dia buat apa bikin kotor tangan dan pakaian ? Aku pribadi pun (yang cuma kelas teri) semenjak retired hanya jadi investor, tidak terjun bisnis secara langsung lagi - maka ya membatasi diri untuk sosialisasi macam begitu. Wong tidak perlu approach-approach-an atau koneksi-koneksi-an. Sosialisasiku cukup yang santai-santai dengan keluarga dan sahabat-sahabat non-komersil saja.

BUFFETT JARANG BAWA CELL PHONE (HP) DAN DIMEJANYA TAK ADA KOMPUTER.

Komentarku :

Ah Buffett belum tahu ada "KoKi", belum kenal dia sama Zeverina dan KoKiers. Coba kalau dia sudah melongok ke "KoKi" pasti kecanduan.

BILL GATES MENJADI PENYANJUNG WARREN BUFFETT. Ketika Bill Gates yang saat itu jadi orang terkaya didunia, untuk pertama kalinya akan bertemu dengan Warren Buffett...............maka Bill Gates hanya menjadwalkan pertemuan itu 30 menit saja. Tetapi begitu Bill Gates mengobrol dengan Warren Buffett maka pertemuan itu jadi molor sampai 10 jam dan sejak itu Bill Gates tak sungkan-sungkan memuji dan menyanjung Warren Buffett. Komentarku : Baru tahu dia !

6 NASEHAT WARREN BUFFETT UNTUK KAUM MUDA :

Hindari pemakaian Kartu Kredit dan Pinjaman Bank !

Komentarku :

Kayaknya susah dijaman sekarang hidup tanpa Kartu Kredit, karena situasi dimana-mana menuju "cashless society" (masyarakat tanpa uang, semua serba Kartu dan Pin Number). Juga tanpa Pinjaman Bank, ya kapan bisa beli rumah dan berbisnis ? Mungkin maksudnya adalah "pembelanjaan yang terkontrol" dari Kartu Kredit meski diberi limit tinggi. Sedangkan Pinjaman Bank hanya digunakan untuk maksud produktif, bukan konsumtif.

UANG TIDAK MEMBUAT MANUSIA, MANUSIALAH YANG MEMBUAT UANG !

HIDUPLAH SEDERHANA DAN WAJAR MENURUT KEMAMPUAN KALIAN !

JANGAN LAKUKAN APA YANG ORANG LAIN KATAKAN - CUKUP DENGARKAN APA KATA MEREKA, TETAPI LAKUKANLAH SESUATU YANG KALIAN ANGGAP BAIK !
JANGAN MEMAKSAKAN PAKAI BARANG BERMEREK, PAKAILAH YANG NYAMAN DAN COCOK (COMFORTABLE) UNTUK KALIAN !

JANGAN BOROSKAN UANG ANDA UNTUK SESUATU YANG TAK PERLU, MELAINKAN GUNAKANLAH UNTUK SESUATU YANG BERGUNA UNTUK KALIAN DAN MASYARAKAT !

KESEMUANYA ADALAH KEHIDUPAN KALIAN MAKA MENGAPA KALIAN BIARKAN ORANG LAIN MENGATUR HIDUP KALIAN !

ORANG YANG BERBAHAGIA TIDAK PERLU MEMILIKI YANG TERBAIK SELURUHNYA - YANG TERUTAMA MEREKA MAMPU MENGHARGAI SETIAP HAL YANG MEREKA DAPATKAN DALAM PERJALANAN HIDUP MEREKA.

Regards

WES, Australia

Catatanku : Tidak semua gaya hidup dan nasehat Warren Buffett bisa dipraktekkan dan cocok untuk kita. Mengapa ? Kita bukan Warren Buffett ! Dia lahir, besar dan tinggal di USA, pusatnya keuangan dan bisnis dunia.

Ayahnya adalah local stockbroker di Wall Street. Warren adalah lulusan Columbia Business School dimana punya dosen-dosen jempolan (teori dan praktek) seperti Benjamin Graham & David Dodd yang juga adalah securities analyst. Dia juga tamatan Wharton Business School dan menjadi anggota Apha Sigma Phi Fraternity (suatu perkumpulan orang-orang berprestasi dibidang ilmu pengetahuan) dimana ayah dan para pamannya pun bergabung disitu. Salah satu mentornya John Maynard Keynes adalah pakar ekonomi terkenal didunia sekaligus seorang investor yang sukses.

Kehidupan pribadinya kelihatannya dari luar tak bercela dan anggota keluarganya tak pernah berkeluh kesah kepada siapapun - semuanya nampak baik-baik. Apakah mereka benar-benar berbahagia sejati ? Inilah yang aku berhasil mengintipnya : Isterinya (mantan penyanyi nightclub) Susan Thompson dinikahi tahun 1952 sampai meninggal karena stroke pada 29 Juli 2004, berarti pernikahan itu bertahan selama 52 tahun dan mereka berdua menghadiri berbagai pesta atau pertemuan sebagai suami isteri yang rukun. Susan juga tetap menjadi pemegang saham besar di perusahaan Berkshire Hathaway. Tetapi yang tidak diketahui orang kebanyakan adalah bahwa Susan sudah hidup berpisah dengan Warren sejak tahun 1977 setelah memberikan 3 orang anak dan Susan pindah ke San Francisco, sedangkan Warren tetap di Omaha.

Lucunya Susan memperkenalkan sahabatnya Astrid Menks (ex-waitress) untuk menemani (look after) dan hidup bersama Warren dirumahnya di Omaha. Susan dan Astrid tetap bersahabat. Kok bisa, ya ? Astrid hidup bersama dengan Warren sejak September 1978 tetapi baru dinikahi secara sah pada 30 Agustus 2006 setelah lewat 2 tahun Susan wafat. Sopan juga, ya ?

Anak-anak Buffett (dari Susan, isteri pertama) adalah Howard G. Buffett (photographer), Susie Buffett (homemaker) dan Peter Buffett (musician) tidak ada profesinya yang meng-copy jejak Warren Buffett meskipun sudah pasti mereka masing-masing diwarisi portfolio kepemilikan saham yang solid.

Apakah anak-anak ini berbahagia yang sejati ? Hanya mereka yang tahu, namun dari sorot dan raut wajah mereka ketika diwawancarai di TV aku punya firasat mereka agak "tertekan" juga perasaannya bukan saja karena mereka berada dibawah bayang-bayang kebesaran nama Buffett, melainkan juga sepertinya Warren yang kelihatannya sopan, santun, ramah, bijak dan pemurah itu terhadap anggota keluarganya pun bertindak dan bersikap seperti terhadap CEO-nya, kurang kasih sayang dan ketulusan. Manusia memang tidak ada yang sempurna.

Biarpun begitu Warren Buffett sepertinya enak diajak "kongkow" (ngobrol santai), pribadinya menarik dan kuat - banyak hal yang bisa dicontoh darinya. Aku juga kepingin bisa bertemu muka dengan muka dengannya. Sayangnya beberapa kali ikut kompetisi untuk memenangkan hadiah gratis bertemu dengan Warren Buffett di Rapat Tahunan Pemegang Saham Berkshire Hathaway di USA tak pernah dapat. Cara lain adalah membeli beberapa unit sahamnya maka pasti dikirimi undangan, tetapi ya .............itu yang bikin mules.............harga sahamnya per unit sekitar US $ 70,000 an. Mana tahan ? Iya kalau naik terus (bull), bagaimana kalau lagi turun terus (bearish).

Achirul kata :

Itulah sebabnya aku biar bagaimana "gandrungnya" dan "kesengsemnya" akan kepribadian atau kharisma seseorang pemimpin, terus terang tak sudi memujanya apalagi mengorbankan diri. Tak usah, ya ? Aku berharap kalian juga para KoKiers angkatan muda ! Jangan mau diperbodoh dijadikan "fanatik", "martir" atau "tumbal" !

Hidup ini indah, kalian harus bisa menikmatinya !

MODERATOR - Penanggungjawab: ZEVERINA

Pembaca "KOLOM KITA" (KoKi) entah di Bontang, Inggris, Bali, Belanda, New Jersey, Kuwait, Australia, atau di Kediri, silakan berbagi peristiwa seputar kehidupan sehari-hari. Kirimkan artikel dan foto melalui form "Kirim Artikel", jika mengalami kesulitan kirimkan melalui email: zeverina@kompas.co.id ; zeverina.koki@yahoo.co.id

The Three "Bedrock" Ideas Behind Warren Buffett's Billions

2008-05-27T22:40:00.000-07:00

The Three "Bedrock" Ideas Behind Warren Buffett's Billions

Posted By:Alex Crippen

Topics:Stock Market Investment Strategy Warren Buffett

Companies:Berkshire Hathaway Inc.

During his European tour last week, Warren Buffett held four news conferences in four days and answered a lot of questions.

While a few of his answers generated headlines, most did not.

There was, however, one answer in Madrid that stood out to me as I listened to all those questions and answers in a variety of languages.

It's not new, so it's not news. But this one, brief, answer is essential to understanding how Warren Buffett has been so incredibly successful with his investments over the decades.

Buffett was asked to name the most important lesson he learned from his mentor, Benjamin Graham.

Instead he listed three, using just 85 seconds to deftly describe the trio of "bedrock" ideas that have helped make him the world's richest man.

It all comes from this ....

Warren Buffett: The three most important lessons I learned were all from the same book, The Intelligent Investor. It was written first by (Benjamin) Graham in 1949. They appear in chapters 8 and chapters 20.

The first is, to look at stocks as pieces of businesses, not as little items on a chart that move around, not as ticker symbols, not as something that might split next week or next month or something of the sort. But, rather, to look at the business, value the business, divide by the shares outstanding, and decide whether you really want to own a piece of that business at that price.

The second one was his commentary about your attitude toward the stock market. That it is there to serve you rather than to instruct you, and he used the famous Mr. Market example of that. That attitude is fundamental to making money in stocks over time.

And the final item he talked about was margin of safety. When you buy a stock that you think is worth 10 dollars, you don't pay $9.95 for it, because you can't be that precise in estimating its value. So you leave a considerable margin of safety for both what you don't understand and for the vagueries of the future.

And those three ideas, which I learned when I was 19 years old, have been the bedrock of everything I've done since.

Current Berkshire price:

Berkshire Hathaway Inc

US%3bBRK.A

127910.0 3940.00 +3.18%

NYSE

Quote Chart News Profile

[US;BRK.A 127910.0 3940.00 (+3.18%) ]

Strategi Melakukan Investasi

2008-01-06T00:00:00.001-08:00

Ada banyak cara melakukan investasi. Tapi sebelumnya, ada beberapa hal yang perlu diperhatikan:

1. Pahami Kondisi Keuangan

Sebelum melakukan investasi, Anda harus benar-benar memahami kondisi keuangan pribadi. Bukan hanya kondisi keuangan saat ini, tapi juga kondisi keuangan, sumber penghasilan, jumlah tanggungan, dan gaya hidup Anda di masa depan. Kalkulasikan secermat mungkin, hingga Anda dapat menentukan besarnya dana yang bisa diinvestasikan.

2. Tujuan Investasi

Setelah mengetahui kondisi kocek pribadi, tentukan apa tujuan investasi Anda. Untuk menggandakan dana, untuk jaminan hari tua, atau sekedar menyimpan uang agar aman. Untuk tujuan hari tua, misalnya, investasi bisa diarahkan pada sebuah produk yang menghasilkan tingkat pengembalian yang lumayan dalam jangkan panjang, seperti dana pensiun atau deposito.

3. Sisa Waktu yang Dimiliki

Bila sudah menentukan tujuan investasi, Anda perlu memperhitungkan berapa lama investasi tersebut berjalan. Hal ini tentu harus disesuaikan dengan usia Anda saat ini. Jika sisa waktu terbatas, sebaiknya Anda memilih produk investasi yang lebih agresif.

4. Tingkat Risiko

Setiap jenis investasi mengandung risiko. Tapi hal itu sangat tergantung dari sisi mana Anda melihatnya, karena setiap orang mempunyai pandangan berbeda terhadap sebuah masalah. Oleh sebab itu, yakinkan Anda mengetahui batas-batas kemampuan diri.

Setelah memahami dan yakin akan itu semua, barulah Anda bisa menentukan sarana dan cara investasi yang tepat.

Investasi Apa yang Cocok untuk Anda?

2008-01-06T00:00:00.000-08:00

Ada banyak produk investasi yang baik dan menarik untuk diikuti. Tapi, produk apa yang benar-benar cocok untuk Anda?

Tabungan

Tak terbatas waktu dan tempat. Anda bisa menyimpan uang dan mengambilnya kapan saja, dimana saja.
Jumlah uang yang disimpan dijamin utuh, bahkan mendapat bunga.
Jumlah penyertaan awal relatif kecil.
Cocok untuk investasi harian atau jangka pendek

Deposito

Relatif terbatas. Anda hanya bisa menyimpannya sekali untuk satu rekening dan hanya bisa mengambilnya pda waktu yang ditentukan.
Jumlah uang yang disimpan dijamin utuh, bahkan mendapat bunga yang lebih tinggi.
Jumlah penyertaan awal relatif lebih besar.
Cocok untuk investasi jangka panjang atau dana pensiun.

Valuta Asing (Valas)

Tak terbatas waktu dan tempat. Anda bisa membeli valas dan menjualnya kapan saja.
Bisa disimpan dalam bentuk tabungan atau deposito dengan jaminan dana utuh dan bunga menarik.
Memberi peluang mengeruk keuntungan yang lebih besar, bila dibeli ketika nilai rupiah rendah dan dijual ketika nilai rupiah tinggi.
Nilainya cenderung berfluktuasi, karena RI menerapkan sistem devisa bebas.
Cocok bagi yang ingin mencari keuntungan, dan yang berurusan dengan luar negeri.

Emas

Tak terbatas waktu dan tempat. Anda bisa membeli dan menjualnya kapan saja.
Bisa digunakan sebagai perhiasan (aksesori).
Nilainya (harga) relatif stabil.
Tak mendapat bunga walau disimpan bertahun-tahun.
Beratnya (kadar) bisa menyusut karena gesekan.
Tidak bisa digunakan sebagai alat transaksi sehari-hari.
Cocok bagi yang berjiwa konvensional, atau yang nggan ke bank.

Properti (Tanah dan Bangunan)

Bisa beli atau dijual kapan saja, tergantung kemampuan dana.
Relatif aman, kecuali terjadi kebakaran atau bencana alam.
Harga jualnya cenderung naik, terutama bila terjadi inflasi.
Harus punya banyak uang untuk membelinya.
Sulit dijual bila inflasi (dayabeli) menurun.
Cocok bagi yang punya dana berlebih.

Saham

Terbatas pada tempat (secara resmi). Harus dilakukan di Bursa Efek.
Bisa dilakukan secara periodik atau cukup sekali.
Memberi peluang mengeruk keuntungan yang sangat besar.
Harganya berfluktuasi, tergantung sentimen pasar.
Resiko tinggi, harus siap rugi besar.
Cocok untuk yang berjiwa petualang.

Reksadana

Gabungan antara tabungan, saham dan obligasi dengan risiko yang diminimalkan.
Terbatas pada tempat (secara resmi). Harus dibeli atau dijual pada satu tempat.
Bisa dilakukan secara periodik atau cukup sekali.
Memberi peluang mengeruk keuntungan yang besar, meski tak sebesar bermain saham.
Cocok bagi investor yang ingin mendapatkan hasil tinggi dengan resiko rendah

Rich Dad List

2007-12-20T00:00:00.000-08:00

Sebuah list yang menampilkan names of Rich Dads, it never came across my mind to have them as my dad... don't think they have the same thought either...

Meskipun saya belum masuk dalam daftar ini, izinkan saya berbagi sebuah kata-kata kosong yang penuh hikmat...

"Semuanya dimulai dari sebuah tindakan dalam kesempatan yang ada, dari sebuah kesempatan yang merupakan hasil dari sebuah tekad."

Jangan khawatir, jika belum masuk daftar berikut, masih banyak daftar-daftar lain yang bisa mencantumkan nama anda. Daftar Hitam Bank Indonesia, Daftar Teroris, Daftar Pemilih, Daftar Ulang... bahakan Daftar Menu...

Selamat Mendaftar...

Salam Pendaftaran,

Panitia Pendaftaran Peserta Kendurian (P3K)

Kamis, 13/12/2007 19:48 WIB
Aburizal Bakrie jadi terkaya di Indonesiaoleh : Lahyanto Nadie

JAKARTA: Aburizal Bakrie bertengger di Daftar Orang Terkaya Indonesia tahun ini yang dipublikasikan oleh Forbes Asia. Bakrie, yang juga menjabat Menteri Koordinator Kesejahteraan Rakyat (Menkokesra) RI, mengelola grup Bakrie yang bergerak di bidang infrastruktur, properti, dan telekomunikasi. Nilai bersih kekayaannya melesat menjadi $5,4 miliar dari us$1,2 miliar, tahun lalu. Saat itu dia menduduki posisi keenam di daftar tersebut.

Posisi kedua diduduki oleh orang terkaya nomor dua di Indonesia, Sukanto Tanoto, pemilik April, salah satu produsen bubur kertas (pulp) dan kertas terbesar di Asia. Dia juga merupakan pemilik Asian Agri, salah satu di antara lima produsen minyak kelapa sawit terbesar di Indonesia. Kekayaan bersih Tanoto melonjak menjadi US$4,7 miliar dari US$2,8 miliar, tahun lalu, namun angka tersebut tidak cukup untuk menyamai kekayaan Bakrie.

Daftar Orang Terkaya di Indonesia, seperti 10 daftar orang terkaya Asia lainnya yang disusun Forbes Asia, mengilustrasikan kekayaan para konglomerat Asia tahun ini. Secara keseluruhan, nilai bersih gabungan dari mereka yang tercantum di daftar orang terkaya Forbes Asia naik menjadi US$938 miliar dari US$575 miliar, tahun lalu, berkat kuatnya pasar saham dan ril estat, ditambah dengan pelemahan dolar.

Empat puluh orang terkaya di Indonesia telah menambahkan US$18 miliar ke jumlah kekayaan gabungan mereka tahun ini, sehingga jumlah totalnya menjadi US$40 miliar. Syarat untuk masuk ke dalam daftar tersebut adalah kekayaan bersih minimal US$120 juta, naik dari US$80 juta, tahun lalu.

Indonesia saat ini memiliki 11 orang miliarder, empat orang lebih banyak dibandingkan tahun lalu, dan satu orang lebih banyak dibandingkan tahun 1996, persis sebelum krisis finansial Asia. (t01)