This post is dedicated to all working engineers and university graduates below 30. Aiya, so you are over 30? Nevermind lar, just pretend you are younger lor.

Most youngster think that MLM is the best opportunities to get rich. But when I look back at my friends who joined MLM for the pass few years, almost all of them quit and get back to their day job! When they try to recruit me in university time, they promised me a lot of get-rich-dreams and scold me stupid for not joining. Now they all quit. Imagine you have joined an MLM company because you believe in the sales pitch of your upline and later he quit! You are left alone! So think twice before you get into MLM.

I have 2 friends that are incredible Great Eastern insurance agent. One of them sold 97 covers last year. Another guy told me he can close 1 sale on every 5 meetings! Great! Unfortunately, I also have a lot of friends who can hardly sell 1 insurance policy in a month! Gave up, and got back to day job. Insurance is not for everyone.

How about trading? I have attended an Options Trading seminar 2 years ago. The speaker is the #1 options teacher in Asia based on the number of students he has. He is extremely high profile. I know he is very rich, but not all his students make it (including me).

You know what, when I talk to a few seminar participants in the graduates gathering few months later, most of them don’t even have a trading account yet! And the questions they ask me tell me that they simply learn nothing from the seminar. They are still not up to the kindergarden level!

Understanding the basic doesn’t guarantee you to make money, but NOT understanding the basic means you can’t even play the game! If I understand everything and actively trade for 2 years but still cannot make money, do you expect they can?

Again, it is not for everyone. You you haven’t heard me sing “My Money Live Over The Ocean“, you need to.

How about the current HOT make money online? Most people who teach you how to make money online make money by teaching you how to make money online. (sorry for this poor sentence structure.) They don’t know how to make money online. I have a long post on it.

How about starting your own business? Huh, if you can’t make money when somebody is helping you, i.e. MLM and Insurance, and you are having problem making money trading and internet marketing, then what is the success rate for you to start your very own business? Do you have the capital? Do you have the knowledge? Can you differentiate between a sole proprietorship and a Sdn Bhd?

MLM is out. Insurance is out. Trading is out. Internet marketing is out. Starting your own business is out. Then WHAT?

Just continue to work as an engineer! (or doctor or lawyer or anything that you study in University)

&@#^&$%^$#&%^&%^*$$%!

Ok ok, don’t get mad. Give me some time to explain. You just need to understand a simple concept. This concept is so SIMPLE that most engineers and university graduates CANNOT understand it because these professionals can only understand COMPLICATED things but not simple things. They know how to calculate e = mc² but tell you 1 + 1 = 3. They can measure the speed of light and the number of electrons in a piece of silicon plus the amount of laser required to cut your eye without blinding you but they cannot understand this simple concept-

The Power Of Compounding!

Albert Einstein has repeatedly telling people the power of compounding in a lot of occasions. And now AhYap is doing the same and this is not the first post I talk about it.

“Compounding,” Albert Einstein said, “is mankind’s greatest invention because it allows for the reliable, systematic accumulation of wealth.”

Einstein calls compounding the “8th wonder of the world.”

Einstein, “The most powerful force in the universe is compound interest.”

Here is how compounding works. If you have $100,000 today and if you can grow it by 20% each year, here is what it will become in the 30 years period.

Begin _ $---100,000
Year 5_ $ _-248,832
Year 10 $ _-619,173
Year 15 $ 1,540,702
Year 20 $ 3,833,760
Year 25 $ 9,539,622
Year 30 $23,737,631

Did you notice that you just need 15 years to become a millionaire if you have $100,000 right now and you are able to compound it 20% per year?

Let’s don’t argue in this post whether 20% is achievable or reasonable, I will explain it in another post. At this time, you just need to know that Warren Buffett, the 2nd richest man in the world compound his money at 21% for over 40 years! In his first 10 years from 1957 to 1967, he actually compounded at 29%. Peter Lynch, the best mutual fund manager in the world compounded his fund at 29% for 19 years. He is retired now. Tan Teng Boo, the Malaysia #1 fund manager compounded at 24% for 10 years! And he is STILL ALIVE and NOT RETIRED YET!

20% is definitely achievable if you know where to put your money.

There are 3 factors that is very important to compounding:-

1. The compound return rate (the interest rate)
2. The initial capital/money
3. The compounding period (how long you compound it)

We have talked about the compound return rate just now. From today onwards, I want you to remember the number 6!

AhYap, “If you can compound your money at 20% per year, your money will grow 6 times every 10 years.”

Remember it!

20% is what we are aiming for. If we failed, and say we only manage to compound at 15% (some Public Mutual Funds are able to compound at 15%), what will we get? For 15%, our money will grow 4 times every 10 years.

Notice the big differences? 20% = 6 times, 15% = 4 times. Don’t feel upset, even at 15% (4 times every 10 years), $100,000 will become $400,000 in 10 years and then $1.6 million in 20 years. Happy now?

What if you are good enough to get 25%? Your money will grow 9 times! Wow! 25% is still reasonable as Peter Lynch did 29% for 19 years. But don’t dream too big, everything beyond 30% for the long term is unreasonable and hard to achieve.

If you are ignorant and you put your money in Amanah Saham 2020 which gives you averaged 8% return, how much will it grow? Your money will only grow 2 times (double) in 10 years. Now you know why I sold all my Amanah Saham 2020 to my parents after holding it for 10 years since 1997!

Now here is the most interesting thing. At 20%, your money grow 6 times every 10 years. If you eat enough ginseng and bird’s nest, you will probably have a lot of 10 years in your life! If you are 25 and you live until 75, you have five 10 years. Eat more ginseng and maybe you have six, seven or eight 10 years more.

Every 10 years, your money grow 6 times more!

$100,000 … (10 years later) … $600,000 … (10 years later) … $3,600,000 … (10 years later) … $21,600,000 … (10 years later) … $129,600,000 … (10 years later) … $777,600,000

If you have RM777,600,000 today, you will be ranked around the 20th richest men in Malaysia. But that’s too far fetched. 50 years is too long to imagine. Malaysia just celebrate his 50 year old birthday. So, we just target 20 years enough.

RM100,000 + 20 years + 20% compound = RM3.6 Million

Key understanding here is that the rewards from compounding come late in time. Early in time, the reward is not enough to feed chicken. Let me explain.

At the beginning, you will laugh at the return. On the first year, your money only increase RM20,000 from your RM$100,000. Most people make more than RM20,000 per year. So compare to their income, they can say, “So what?” It is not tasty at the beginning.

Even in the 2nd year, you only get RM24,000 from your nest eggs of RM120,000. Again “So what?”. Not tasty.

But when the snow ball grow bigger and bigger, your money actually increase to RM600,000 in 10 years. Your money will grow $120,000 on the 11th year! Well, there are still people who can make $120,000 per year. So nevermind, wait another 10 years until your snow ball grow to RM3.6 million. At the 21st year, your money will grow by $720,000! Now, tell me how many jobs can give you $720,000 per year? Even Hishammuddin doesn’t make it!

The power of compounding come late in time. It is like a exactly like a snow ball that roll bigger and bigger.

– NOW, THE PLAN –

1. Save RM100,000 in 5 years. You need to start as early as possible. If you start immediately after graduation, you should be able to save RM100,000 before 30.

Remember that the more money you are able to pump in at the beginning, the bigger rewards you are going to reap at the end. RM100,000 is the bare minimum. If you can, get more! RM100,000 gives you RM3.6 million in 20 years, RM200,000 will gives you RM7.2 million!

2. Aim for 20% compounded return. But you will still do fine with 15%. With initial capital of RM100,000, 15% will give you RM1.6 million in 20 years. 20% will give you RM3.6 million in 20 years.

At that time, petrol and toll fee at KL is dirt cheap for you and you will not be angry with Sammy Vellu.

Why The Early Stage Is The Most Critical!

A RM1,000 saved at 25 year old is worth a lot more than a RM1,000 saved at 35 year old. Because if you saved RM1,000 at 25, it will become RM6,000 when you are 35! (remember the magic number 6)

So it is the same for RM100,000! A RM100,000 saved at 30 year old is worth a lot more than RM100,000 saved at 40! Because the RM100,000 saved at 30 will grow 6 times to RM600,000 at 40!

This is why it is very important to start as early as possible and squeeze as much money as possible from your salary.

Here are my suggestions… these are not jokes!!!

1. Don’t buy a Toyota Vios or a Honda City yet! These are fresh graduates favorite cars. Don’t even buy a Proton Savvy or Proton Wira! Just buy a damn Proton Iswara (or Honda 70)! If you buy a Honda City, you probably will drive the Honda City for your whole life. But if you buy an Iswara and save the remaing for compounding, you can drive an S Class or BMW 7 series or even a Porsche 20 years later (buy 2nd hand one lar, cheaper). If you really want to buy a better car, buy it only after you have saved RM100,000.

[AhYap is still driving his damn Iswara]

2. Don’t buy a house yet! Rent a small cheap room for the first 5 years or stay with your mum! Buy a house only after you have saved your RM100,000 capital. If you get a housing loan too early, it is VERY hard for you to save the RM100,000 because of the heavy installments. A house is NOT an asset -> Read the book ‘Rich Dad Poor Dad’. It will only make your poorer.

3. Don’t buy medical card and insurance yet! My insurance friends are going to kill me on this. But I still have to say it. Buy it only after you have saved your RM100,000! If you really want to buy, a better plan is to kill yourself after 2 years so your family will have the RM100,000 insurance claim to compound and let them get rich.

Why can’t you just take the risk of not having an insurance policy for another 5 years? Most probably you don’t have any insurance policy when you are studying in University and in secondary school. Most people spend 10 to 20% of their income in insurance. That’s a lot of money!

4. Don’t get married yet! Uhhhh. This is not an advice, this is just the truth. When you have a family (even just a girlfriend), you will tend to overspend. Luxurious dinners, gifts and entertainments…

Furthermore, females are weaker with money (a.k.a. NUMBERS). It is very hard for them to understand why you need to save so much and the concept of compounding. I am not discriminating female, I am just telling the truth. Female hates physics and maths in secondary school because their brains are not design to process numbers. For girls, it is always better to buy a new shoe and a new Sony Ericsson right now, than to see it grow 36 times in 20 years so she can buy many many LV bags and Coach bags.

Girls are also brain washed by their parents since they are kids. If you want to marry her, you need to buy her a house and put her name on it. No house, no wife. You will also need to buy her an EXPENSIVE wedding ring. Because she says the SIZE of the ring represent how much you love her! Wedding dresses, wedding dinner, wedding album…. you have got to show that you love her, with MONEY.

[Girls, if you have a RM5,000 budget to buy a diamond ring today and you spend all to buy it, your diamond ring will immediately worth 50% less because it is now 2nd hand. And you will never have the chance to sell it at RM5,000 again in your whole life. If you buy a RM1,000 ring and put the RM4,000 to compound, you can buy a RM96,000 diamond ring 20 years later]

Cibai… why my post is getting longer and longer…

There are thousands of ways to save more money from your salary. Don’t go to Mid Valley, One U and The Curve will guarantee to save you plenty of money. You all know Sunway Pyramid has just expanded with a new wing, but don’t go!

Can a University Graduate Really Save RM100,000 in 5 years?

University graduates usually will have an income from RM2,000 to RM5,000 in the first 5 years of their working horizon. It is even more if you are a Malaysian working overseas in places such as Hong Kong and Singapore. If you can stay alive with just a mere RM600 PTPTN in University, it is BULLSHIT that you can’t save RM100,000 in 5 years with such salary.

The point is whether you are willing to save those money by temporary lowering your standard of living so you can reap the BIG reward in the future. And on whether you understand how much your RM100,000 will be worth 20 years later.

Save the damn RM100,000 in the first 5 years. Live like you are depending on PTPTN for the first 5 years. Then you can do whatever you want to do with your salary after you got your initial capital (car, house, insurance, wife, Sky Bar, Lorenzo, prostitute …).

To make my earlier examples more easy to understand, I’ve asked you to compound only after you have RM100,000. But in real case scenario, you begin to compound the day you start putting money into your capital! If you save RM10,000 for the first year and compound it at 20% for 5 years, it will become RM25,000! So the money you save in early years will enjoy compound gain. So even if you save less at the beginning when your salary is low, the power of compounding is already working for you. And in the late years when your salary is higher, you can save a higher portion of your salary. So RM100,000 is really not that hard!

Savings Plan Example -

Year 1 - RM10,000
Year 2 - RM15,000
Year 3 - RM15,000
Year 4 - RM20,000
Year 5 - RM25,000
Total _- RM85,000

So you saved a total of RM85,000 from your salary in 5 years. But since you already have money saved in the first 2 years (RM25,000), you should be able to invest those money and earn your remaining RM15,000 easily on Year 5. So you will be able to get a minimum of RM100,000. Understand now why car, house, insurance and wife will slow you down?

Final Words

I have explained the power of compounding to a lot of people in the pass few months. And honestly, most of them listen with one ear in and one ear out. Some even feel so sleepy that they open their mouth as BIG as the mouth of hippopotamus. So I decided to blog everything out once and save my saliva next time.

I even told many of them to buy ICAP when it is traded in the range of RM1.60. Luckily my parents listened to me, and also 2 of my friends (one of them is soufulow. Yo! high five). But most of the others never listen. This is the market price of ICAP compare to KLSE Composite Index.

It is traded in the range of RM1.60 for several months, giving people a lot of time to buy. I bought from February to April at prices range from RM1.44 to RM1.66, with the final averaged bought price of RM1.55. Soufulow even bought at the peak at RM1.67 in May. I sold all my mutual funds, Amanah Saham 2020 and close all my FDs to invest almost ALL my money in this one single stock. It closed at RM2.04 on last Friday. A 31% growth for me.

This close end fund (listed as ICAP in KLSE), is managed by Tan Teng Boo, the guy who did 24% compound for the last 10 years. You can learn more about the fund here. I will definitely write more about ICAP in the future.

I’ve shared my knowledge here. It takes me more than 7 hours to write this post. I’ve done my part. I don’t have the responsibility to make you rich. I could have watch movies or sleep in the last 7 hours (it’s 6.18am now). I don’t make a single cent from blogging. I have read 20+ books on investing in the last 12 months and this is the essence I have for you. Plus a few more that I have written in Intelligent Investing. So whether you want to make use of these knowledge, is totally up to you.

Click here for Part 2

Sorry for not blogging for more than 6 weeks. I am hiding in a cave in Ipoh so that Hishammuddin cannot find me and put me in jail. Mr Hisham, I am not trying to make fun of you, I am just teaching people how to spell your name correctly only lar.

OK. The real reason I am not blogging is because I have put a lot of things into my NOT-TO-DO list. You have heard of TO-DO list many times, which list down a lot of things that you need to do. A NOT-TO-DO list on the other hand is a list of things that you want to remind yourself NOT TO DO!

When we have a long TO-DO list, we will be very stressful and overwhelmed. We have so much to do and yet we have so little time. But the good news is, a lot of things that we put in our TO-DO list can actually be eliminated without affecting our life! By transferring these meaningless TO-DO to a new NOT-TO-DO list, we earn a lot of extra time. You will feel more relax and focus. You get FREEDOM.

So, unfortunately, I have temporary put blogging into my NOT-TO-DO list. Not because of Hishammuddin invites me to drink tea at ISA lar.

Another thing that I have put into my NOT-TO-DO list is StreamyxSucks.com. Since they setup a new 10Gbps link in July, I have been enjoying incredible speed with Streamyx. But I find out that while I am enjoying decent speed, there are actually more people complaining after the upgrade. But until today, I still enjoy my Streamyx very much and it is the best connection I have gotten for the pass 5 years.

So I have decided not to continue my StreamyxSucks.com project and will stop collecting emails today. Sorry to act like a politician - Talk COCK a lot but do nothing at the end. Maybe I do have some politician blood? Wahaha.

I will give you guys some direction on what’s next.

For All Torrent Freaks and P2P Addicts

For torrent freaks and P2P addicts, all you need is a VPN service. A VPN route your torrent and P2P connections to another server to bypass the capping done by Tmnet. You can easily get 50kb to 100kb torrent speed by using VPN. Current I am using BolehVPN.

You will need to pay for this service because these guys need to pay for the Server. The price is around RM1 per day and there are several packages. However, I suggest that you never pay more than 2 months at once! This is because there are several VPN providers that have run away! I paid my last provider 6 months in advance and he run away after 2 months. So only pay the amount you are comfortable to loss. You can find other VPN providers here.

For Those Who Just Want To Rant and Complaint

Lowyat Forum, the biggest Malaysia community has a very active Streamyx forum where you can meet a lot of Streamyx users online. They even setup a special rant thread for you to fxxk tmnet CEO’s mama and grand-mama (over 1,700 replies!).

Soufu has also collected a lot of streamyx complaints here and he wants you to submit more.

For Those Who Want To Have a Streamyx Sucks T-Shirt.

Soufu called me and say he is very interested in printing the T-Shirt and I am sure a lot of you are very eager to wear it, so please check out Soufu’s Streamyx Sucks T-Shirt Design and push him to print it as soon as possible!

For Those Who Want To Quit Using Streamyx And Use Other ISPs

Unfortunately, almost all ISP are more fucked-up than Streamyx. For Streamyx, you can at least call 1300-88-9515 to send your regards to their mother and father but for most other ISPs, they don’t even pick up your phone calls. You will get more depressed and end up complaining at AhYap.com.

But there is always hope, check out Redesign Malaysia - Better Broadband for a list of ISPs and activities that you can participate in.

For Those Who Want To Screw AhYap’s Ass Hole For Overpromise and Underdeliver for StreamyxSucks.com

I will wear 16 underwears beginning today so it won’t be easy for you! I am protecting my asshole at all cost!!!

—

Free Streamyx Sucks banners will always be available at StreamyxSucks.com. Comments for this post is now closed as you can now find more abang adik at Lowyat.net’s Streamyx forum.

Cerita ini direka semata-mata untuk tujuan pendidikan.

Ong Ka Ting sedang berada di dalam rancangan “Who Wants To Be A Millionaire” siaran NTV7. Keadaan sangat genting kerana dia telah menjawab soalan 500 ribu Ringgit dan sedang menunggu sama ada jawapannya betul!

Jalalludin Hassan, “Jawapan anda … … … … … SELEPAS INI!”

AhYap di depan TV, “Diu!”

(selepas iklan dan banyak lagi air liur dari Jalalludin Hassan)

Jalalludin Hassan, “… Jawapan anda … … … … … BETUL! Syabas dan anda sekarang mendapati 500,000 ringgit!”

(tepukan penonton)

Jalalludin, “Sekarang ke soalan 1 juta! Adakah anda dapat membawa balik 1 juta hari ini? … (air liur lagi) .. Adakah anda sudah bersiap sedia?”

Ong Ka Ting, “Ya, sila teruskan.”

Jalalludin, “Oh, soalan ini memang senang. Ini soalan politik! Tentu YB dapat menjawabnya dengan cepat!”

Ong Ka Ting pun shock sendiri apabila dia terdengar soalan itu soalan politik! Politik adalah mangkuk nasi beliau. Hadiah 1 juta sudah dekat di tangannya.

Jalalludin, “Di antara berikut, yang manakah ejaan betul bagi Menteri Pendidikan Malaysia? …

A. H-i-s-h-a-m-u-d-i-n,

B. H-i-s-h-a-m-u-d-d-i-n,

C. H-i-s-h-a-m-m-u-d-d-i-n,

D. H-i-s-h-a-r-m-u-d-d-i-n”

Ong Ka Ting, “Oh! Diu Lor!”

Jalalludin, “Apa tu? D?”

Ong Ka Ting, “Oh bukan, saya ingin mengunakan life line saya yang terakhir - Call-a-Friend.”

Jalalludin, “Siapa YB nak call?”

Ong Ka Ting, “Datuk Seri Abdullah Badawi.”

NTV7 cuba menghubungi Perdana Menteri…

Jalalludin, “Hello, Perdana Menteri? Saya Jalludin Hassan dalam rancangan ‘Who Wants To Be a Millionaire’ dan di sini adalah Datuk Seri Ong Ka Ting. Dia perlukan bantuan anda untuk menjawap soalan 1 juta! Anda ada 30 saat. Mulai sekarang.”

(30, 29, 28 …)

Ong Ka Ting, “Pak Lah! Bagaimana mengeja Hishamuddin?! H-i-s-h-a-m-u-d-i-n, H-i-s-h-a-m-u-d-d-i-n, H-i-s-h-a-m-m-u-d-d-i-n, H-i-s-h-a-r-m-u-d-d-i-n”

Abdullah, “Huh? Apa lu cakap, boleh perlahan sikit?”

Ong Ka Ting, “Lu eja terus bagi saya lah”.

Abdullah, “Ok, aku cuba, H-I-S-H-A … eh ada R tak? H-I-S-H-A-M … hmmm, satu M ke dua M? H-I-S-H-A-M-U-D-D … eh, satu D ke dua D?! …ehhh … ehhh … H-I-S-H-A ….”

Jalalludin, “5, 4, 3, 2, 1 ….”

Ong Ka Ting, “Harlooooo… harlo? Uh.”.

Jalalludin, “YB, apa jawapan yang anda ingin pilih.”

Ong Ka Ting, “Hmmm… Hmmm… Saya mau ambil 500 ribu dan balik. Tak mau teka lah! Susah sangat ni!”

—-TAMAT—-

Tujuan utama saya menulis cerita ini adalah untuk mengajar para pembaca ejaan yang betul bagi Menteri Pendidikan kita. Jika nama Menteri Pendidikan pun tak boleh eja, macam mana boleh kita kata Sistem Pendidikan kita baik?

Jawapan yang betul, adalah … … … … SELEPAS INI!

&*%@$!^%^&%^

Jawapan yang betul mengikut wikipedia adalah C. H-i-s-h-a-m-m-u-d-d-i-n.

Tak ada ‘r’. Dua ‘m’ dan dua 2 ‘d’.

Tak payah malu jika anda eja salah sebab ada 741 laman web pun eja salah menurut Google.

Lagipun, dalam wikipedia Hishammuddin, ejaan Hishammuddin (dua ‘m’) digunakan 9 kali dan Hishamuddin (satu ‘m’) digunakan 6 kali.

Google punya spell-check pun tak tepat.

Mana satu yang memang memang betul? Kita perlu check dia punya IC lor!

Read this good joke - Malaysian Hell.

I wrote a comment to the post, but Maria, the owner of the blog, modified my comment to -

“This post is really good! I like it very much!”

But what I originally wrote was

“This post is fucking good! I like it very much!”

Wahahaha. This teaches me a lesson not to simply fuck at others people blog.

I was shocked with the responds to my previous post AhYap’s Rants On His Beloved Country Malaysia

I rant that day because I suddenly got so upset with our country. I have been following the country development for so many years and things have never been improved.

Just look at the last few days, MCA youth is raising the Constitution in the meeting, then yesterday the headline of Utusan Malaysia - Jangan tunduk — Tuntutan tender terbuka MCA bercanggah dengan DEB. The fight is never ending. The definition of ‘fair’ and ‘equal’ in Malaysia is so far from the real meaning.

At the end of the post I wrote that I am not voting in the election. The responds do really shocked me when all the people are asking me to vote!

When I wrote the post, what I expect is either

1. People will also get angry and they also don’t want to vote (but none said so. So it looks like I am the most childish one), or

2. People will criticized me being stupid, not patriotic, childish, useless, etc. The way that NTV7 Edisi Siasat will critized. For example, if they know AhYap is not voting, the 2 hosts might say things like, “Tengoklah remaja sekarang ini, macam mana negara kita boleh ada harapan dengan remaja macam ini …” [Look at the teenagers nowadays, how can the country has hope with such teenagers ...]

But both are not happening. It ends up that people are actually telling me something else that broaden up my horizon! Instead of critizing me, they actually motivate me and point me to the right direction. I suddenly realized the meaning of voting!

The most interesting comment is from DB.

Because of Negarakuku and AhYap, I just registered with SPR to vote on the next election. Just my vote is not important but ours are. Come on AhYap. Join me. Join Us. For the sake of Malaysia and our future, we have to vote to show them (you, me, us know who they are) our power.

And for that, I rushed to register as a voter today! Thanks for all of you who have commented in my posts!

Everyday 8.2 girls in Malaysia get raped (and that is only for reported cases). The government seldom discuss about it.

But then when Negaraku is being sang in R&B by a Malaysia student studying in Taiwan, it is discussed so many times in the parliament, and has been commented by so many ministers and government officers. Chinese papers have a few pages on it everyday.

There are people who want to revoke his citizenship. There are people who want to forfeit his passport so he can’t return home. There are people who say he must be punished although they don’t know exactly which law to use (Oh!). They say, they can definitely find one to prosecute him.

Our government had built the highest building in the world, and yet their heart is so small. They are extremely sensitive and is unable to tolerate small little things. And yet, they ignore all the big issues and pretend they don’t see it. They like to make small issues big and keep quiet about the big issues.

What is the use of celebrating our 50th year-old birthday when there are still double standard on so many things?

Why is it that someone with status apologized, thing can be settle and why a small citizen apologize, he still have to be punished?

Why the UMNO representatives who make sensitive comments LIVE on TV only get some ‘discipline action’ from the party?

Why someone who build a multi million castle without permit can settle by a few tears saying that his old house is too small for his family? He only needs to pay a small sum of fine.

Why my Primary School Sam Tet Ipoh doesn’t even have a small field and a hall for so many years? And we only have a basketball court for our assembly. While other school have big halls with air-cond and big football fields!

Why our Minister of Education, Mr H (I don’t know how to spell it so I don’t want to spell it because if I spell in wrongly, I might end up in the jail! This is Malaysia) can be a hero and make the headline of Chinese papers when he allows 2 Chinese schools in Malaysia to reallocate?

He can be a hero just by giving the ‘permission’ to relocate and not the money! And the Chinese society have to find money themselves to relocate. Poi Lam and Wan Hwa Ipoh has been trying to relocate without sufficient fund for more than 10 years.

And yesterday paper, why some schools have to pay for their own electricity and water bills while some schools can be paid by the government?

Why we need to build the highest building in the world that has never been occupied fully until today WHILE we don’t have enough seats in our local Universities?

The government want to sue YouTube because of the Negaraku video. This shows how intelligent our leaders are when it comes to understanding the internet. Youtube has hundred of thousands videos online and how they are going to monitor all of them?

Even if they monitor all of them, you really think Negaraku is so popular in the world that they know what is it? Mr Nazri, how many countries National Anthem can you sing and recognized? How do leaders like that can build a good internet infrastructure for us when their understanding on how the internet works is so little.

Some leaders (ahem, leaders) says the Government should stop sending Chinese students to study in Taiwan. Oh! Chinese students who study in Taiwan are those who can’t get into the local universities and they are actually paying for themselves! They thought that the Government is paying for them because they got so many JPA and government scholarships for themselves! They are just slapping their own face. And the lyrics of the song does talked about this and it proofs again that they didn’t listen to the song before they comment.

I am not voting on the next election. I am not celebrating our 50th birthday day. If I have to go to jail if I don’t vote, then I will go to vote. If I have to go to jail if I don’t celebrate our national day, then I will celebrate. Don’t play play! You can go to jail for a lot of reasons in Malaysia. Our government is hypersensitive on a lot of small things.

Nazri , “We cannot be like the West where you can have the underwear with the design of the Union Jack. In Britain, you can insult the Queen or the flag, I don’t care, but in this country we have laws and we cannot create a precedent where you commit an offence, apologise and get away with it.”

We have the highest building in the world but we have the smallest heart! We always criticized the value of the West and yet we are the one with the smaller heart.

The market is very hot in the pass few months. Almost all people are talking about the stock market. The newspaper even make a few headlines for the market plunge last week alone.

Most people don’t understand what is stock and what they are buying. All they know is that there is a counter NAME and then there is a PRICE. And what they need to do is to speculate the movement of price, hoping to buy low and sell high to make some money.

They can use numerous techniques and most of them rely on rumors and tips. Some that are more advanced might use charting techniques which is know as technical analysis. Tips or charts, they are the same gang. They try to speculate on the price movement to make money.

Let’s say you have RM100,000 to invest in KLSE.

You speculate all in 1 counter and your investment go up to RM110,000 in 1 month (you may have used tips or charts in making the buying decision). Speculators believe that stocks are only paper money and only cash is the real money. When they hold stock, they feel risky. They believe that their money is in ‘unsafe’ position. So in order to see the real money and to protect their profit, they need to sell the stock and get the cash. After selling, they think their profit is now ’safe’. This is called ‘profit taking’ or ‘taking profit’.

The problem IS -

What are you going to do with your RM110,000 ’safe’ cash now? It might be safe now, but what do you want to do with it now? You might spend a few hundred or a few thousand to celebrate, but most probably you will still end up having RM100,000+ in cash.

So probably you will have to buy another counter (using another tip or chart). And this is irony because at first, you sell a counter because you believe holding a stock is risky and you must take profit. Now after you sell one, you have to buy another one and put yourself back to the ‘risk’ of holding a stock!

Are you sure you can pick a new one that can make you money again? If you invest based on pure luck, you can still be lucky for a few times but not definitely not forever. If you have to switch from 1 counter to another every month, you have to switch 12 times a year and 120 times in 10 years! Can you have a lucky streak of 120 times based on tips and charts? And most of us have more than 10 years to live!

While you can make money in stock, you can also lose money! You can always lose $10,000 instead of making $10,000.

This is the problem with short term trading. You didn’t reduce your risk in anyway because after ‘taking profit’ you still need to buy another counter. By thinking that ‘taking profit’ make your money safe, you are just lying to yourself. Your money is never ’safe’. You are just transferring the risk to another counter.

What do you need to do with your money after you sell is the biggest problem for a short term trader.

You need to trouble yourself in making new decisions and selections every time after you sell. And you won’t be lucky every time with your new picks. When the market is hot, you might have more luck on picking the next right counter. But in a sideway (now) or bear market, I don’t think you will have much luck speculating.

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A long term value investor, on the other hand doesn’t need to do much with his investment. The market is so red on the week I went to Sipadan, and yet I can dive happily without looking at the market.

Long term value investors are buying for the long term. They don’t need to adjust their portfolio daily, weekly or monthly. And because they only buy GOOD businesses at DISCOUNT price, their risk is minimized. They don’t chase price upwards and they will even refuse to buy GOOD businesses that is not selling at DISCOUNT. They will stay away from BAD businesses that don’t have a good future. They don’t speculate on the next BIG thing, e.g. the next Microsoft.

You might argue to me that it is very hard to know the value of a stock. I FULLY agree with you because after I read 20+ books on investing, I still don’t know exactly how to evaluate a business. It does require a lot of work just to understand a business before you can put a value on it.

After reading 20+ investing books doesn’t make me a super investor that can pick and evaluate stocks. But, it let me know exactly what is the RIGHT STRATEGY for investing. It is not tips, not charts, not short term, not speculating. You also don’t need to guess who is in the next Microsoft or Bill Gates. That strategy is called ‘Value Investing’. It can be explained in 1 short sentence -

“Buy wonderful businesses at discounted price.”

People like you and me don’t have much time in evaluating businesses and calculating their value. If we believe in Value Investing, then all we need to do is to find a fund manager who practice value investing, who has a good track record for the pass few years (the longer the better) and have him invest the money for us! They are professionals, they spend all their time on evaluating businesses. Let outsource the job to them and have them work for us!

That explain why most of my money is in ICAP and why I can still dive happily in Sipadan when the KLSE dive 100+ points to below 1,300 last week. It only screws short term traders and speculators, it doesn’t screw value investor. Irony, value investor are more happy when the stock market dive because that’s the time when lots of wonderful businesses are sold at discounted price!

It takes me 4 years to fully adapt to value investing. I have been a short term trader and speculator. I have used tips and charts. I have been an active options trader for 2 years (buy and sell for over 1,000 times). I have attended several seminars and read a few books on trading, options and technical analysis. I have gone thorough a lot before I come to this understanding. For most of you, I don’t think you can understand the power of value investing from this post alone. Most people have to go through things themselves before they can understand. And unfortunately, most will never understand.

Good luck with your money!

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Related Post:
Value investing has a lot to do with Price and Earning. Earning let you know the value of a business while the price let you know if it is selling at a discount.

This is an update to the TM-Net Streamyx IP - 219.x, 218.x and 60.x post that I wrote a year ago.

Last few weeks, I have been enjoying incredible fast connection of internet on my 219.x IP. Surprise? Usually, I will have to connect to 218.x to get a decent connection like this. But last few weeks is totally different, my 219.x can connect as good as 218.x.

I am like living in heaven.

But what is funny is that while I am surfing in heaven, suddenly soufulow complains a lot about his poor streamyx connection. He has download that is less than 10KB/s for certain sites. I have no idea why. He is shouting EXACTLY the way I am shouting for years in my blog.

Also, at the very same time, MORE people actually complaint about slower speed in my blog comments and also other forums. Suddenly more people are searching for ’streamyx sucks’. It is like, suddenly I live in heaven and all other people live in hell.

Then, one day I got a very bad speed (back to hell). I look at the IP and I got a 60.x!

IP numbers are sticky to area and in my area, I will get 90% of 219.x and 9% of 218.x and 1% of 60.x. I have gotten 60.x for less than 10 times in the last 5 years using Streamyx. And everytime I got a 60.x, I will get incredible speed and I will refuse to turn off my router and let it hook up for weeks so I won’t lose the connection.

While looking at the IP of people who wrote a comment in my blog and also soufulow’s IP, they usually get the 60.x as opposed to the 219.x. [There are a lot more people on 60.x then on 219.x]

I quickly do a disconnection and reconnect with a 219.x. Boom! My internet connection is blasting fast again.

My conclusion is that 219.x suddenly become a blessed IP and 60.x is now cursed!

My think it is related to the 10Gbps upgrade by Tmnet. And there are 2 possible scenarios.

Scenario #1

The 10 Gbps link is added to 219.x so 219 is very fast now. But that didn’t explain why 60.x deteriorate.

Scenario #2

The 10 Gbps link is added to 60.x and Tmnet allows more people to hook up to 60.x after the upgrade. But unfortunately, it end up that the new 10 Gbps link are not able to support the amount of new users being transfer to 60.x and making 60.x even more congested. While those remain in 219.x like me enjoy decent connection speed due to less congestion.

I am just guessing… But it is very true that suddenly more people are getting pissed off by streamyx.

Update: AhYap no longer wants to complaint about Streamyx so he can live in PEACE. Please read his final post on how to solve your slow streamyx connection for the last episode. Commenting for this post has also been closed.

Sojai is different than Sohai. Sohai are normal people with normal brain but do stupid stuff. Sojai do weird stuff because their brain already got some wiring problem. So here means ‘crazy’ or ‘insane’ and jai means ‘kid’. Sojai that are serious will be locked up in Hospital Tanjung Rambutan or Hospital Tampoi.

This series is not to look down on them but is for laugh only because I can’t understand why there are so many sojai near my house! You will be amazed.

Sojai #1 is a happy sojai. He calls every man God-Father (义父) and every woman God-Mother (义母). If he sees you he will come to you and says, “God Father, give me 1 ringgit.” (义父，俾一文我). Then after he get his 1 ringgit, he will run to a nearby grocery store to buy 2 cigarettes. He will immediately start smoking one and stuck the other one to his ear. He will then walk like the king on the street enjoying every buff.

He will shit anywhere when he wants to shit. He will just pull down his pants and shit. There is a kind of firecracker that look like a match. You scratch it and throw it away and it will explode in a few seconds, something like a grenade. And one time when this sojai is shitting happily, some naughty kid lighted up the firecracker and threw it under his ass. The firecracker exploded and he jumped up like a rocket!

My father never gives him money because if you give him once, he will come to you everyday. But even if you don’t give him money, he will still come to you occasionally. And what surprise us is last week, when he come to my dad again, he didn’t say,”God father, give me 1 Ringgit.”

Instead, he said, “God father, give me 50 cents.” Wow! After so many years, he finally realized my father will not give him 1 ringgit and he is now offering my father 50% discount to hope that my father will change his mind. He is getting smarter and using psychology on us!

There are more sojai stories that I will be writing, such as the ‘fuck you sojai’, the ‘I am useless sojai’, the ‘lottery sojai’ and a lot more. And they all stay near and wander near my house.

I live in a kampung called Ipoh where we only have 200,00 people. In KL, there are 4.2 million people! That’s 21 times more than Ipoh. In recent years, I have been traveling to KL quite often and I find that I really have to pay my honor to KL people. A lot of things that seems unbearable to me are acceptable to KL people.

1. Respect for KL Drivers in Traffic Jam.

KL people can spend a few hours in the traffic everyday. Usually they will have to drive 1 hour+ to work and 1 hour+ back to work. At least 2 hours a day is wasted in the car. This number is scary if you multiplied that with the number of people driving everyday.

2. Respect for KL People Carrying Laptop while Shopping and Dining.

KL is popular of laptop thieves. Leaving your laptop in the car is unsafe and thus you can see a lot of KL people carrying their laptop while walking in KLCC and dining in SS2. Those who go clubbing after work also need to carry their laptop along.

3. Repect for KL People Paying for Parking Fee

Parking everywhere cost money. Parking at KLCC can cost more than RM10! Parking outdoor at Bukit Bintang area is RM5 on weekdays and RM7 on weekends. Parking fee at Mid Valley is now per hour basis instead of per entry. And more scary, parking at night at some places that should be free are now required to pay as well because the heavily-tattooed guard will tell you, “We take care of your car and make sure no one will scratch your car”.

4. Respect for KL People Paying for lots of Toll.

Thanks to our Minister of Toll, Sammy Vellu on this. If I drive home to Bangi using Jalan Cheras I have to pay 3 tolls.

5. Repect for KL People Queuing for Cinema Tickets

KL has the biggest cinemas and yet people have to queue so long for the tickets. The KLCC queuing line is especially shocking to me where the cinema waiting area can be full of queued up people waiting to buy their tickets.

6. Repect for the KTM Komuter that always break down

Ride it 3 times and it broke down twice. In one occasion it broke down over 1 hour without air conditioning. Baby is crying non-stop and everyone is sweating like shit. Rude words can be listen all the time. I am OK because I am staring at a pretty girl for that 1 hour. Wahahaha. Later they need to send another komuter to pull our broken komuter back to the station and we have to ride another komuter.

7. Respect for the non-standard price Taxi Drivers charge

Taxi drivers in KL are very interesting. They can charge multiple ways, such as pre-negotiated rate, meter rate or mouth rate. Mouth rate means he don’t use the meter nor the pre-negotiated rate but after you reach, he open his mouth and tell you how much he wants. Short distance in KL can cost RM10! Passengers always feel like they are overpaying while drivers always feel like they are undercharging.

8. Respect for KL People Sense of Direction

Ok, this is a real respect. With so many roads and so many places in KL. I do really respect KL people who can navigate everywhere in KL and didn’t get lost.

9. Respect for KL People who Live So Near to Highway (and Electric Cable)

This is suggested by Ernest in his comment and I totally agree with it! Especially the highway near Sri Petaling. Some also live very near to Electric cable tower where they can hang their cloths there free of charge.

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Here is why I love Ipoh. Sometimes there will be traffic jam but it is bearable. You will wish to have our type of traffic jam. Not much high-tech people here so not much people carrying notebook around. Parking is easy and cheap everywhere. Parking at Ipoh Parade is RM1 per entry and parking at other shopping complexes are free including Jaya Jusco, Tesco, Giant, etc. There is no toll in Ipoh. And you don’t need to queue 100 meters for your movie tickets.

Need a taxi? Call the taxi call center 2534188 and all prices are fixed. And the town is so small that there is no need for LRT or KTM komuter. Although a little sense of direction is required, you won’t get that lost in Ipoh. The last time I wanted to go to KLCC, the two jagung were very big and near to me. I made a bad turning and I lost until the jagung were missing from my eyesight. That’s KL.

But don’t feel disappointed if you are a KL people, because Streamyx in Ipoh is as fucked up as yours.