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22-Sep-2010 11:43

Straits Times Index / STI to cross 3000 boosted by long-term investors

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22-Sep-2010 11:41

User Research/Opinions / ^ Productivity ^ [Effecacy Efficiency Economy]

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22-Sep-2010 11:38

Fixed Deposits / ???????? CPF ? BANK ????????

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22-Sep-2010 11:36

Fixed Deposits / $$$$ F D Interest Abnormalisation MLM BUBBLE $$$

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22-Sep-2010 11:33

Others / TRADE FREELY & LiVE LONGER

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22-Sep-2010 11:31

Others / TRADE FREELY & LiVE LONGER

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22-Sep-2010 11:23

Others / TRADE FREELY & LiVE LONGER

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22-Sep-2010 10:55

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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*Berkshire Hathaway DNA*

P/E PEAKED 230

pharoah88 ( Date: 22-Sep-2010 10:50) Posted:

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22-Sep-2010 10:50

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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22-Sep-2010 10:30

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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22-Sep-2010 10:26

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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Berkshire Hathaway: Almost a screaming buy at more than $100,000 a share

Updated 11/17/2006 4:17 AM ET

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ASK MATT ABOUT STOCKS

Got a question about the stock market or a specific stock? Click here to ask Matt your question.

USA TODAY financial markets reporter Matt Krantz answers a new question every weekday at money.usatoday.com.

	Read previous Ask Matt columns



	Need a way to track your stocks or funds? Click here to set up a free portfolio at USATODAY.com



	Sign up for USA TODAY's free Personal Finance e-mail newsletter. Every Friday, get a week's worth of USA TODAY's personal finance news and columns. Sign up now. It's free.

Q: Let's suppose, strictly hypothetically, I had $100,000 to spend on a share of Berkshire Hathaway class A stock (BRKA). Would it be a wise move? What about class B shares (BRKB)?

A: Warren Buffett's Berkshire Hathaway made stock market history in October when it became the stock with the highest closing price ever: $100,000.

When a stock hits $100,000 a share, it's a jaw-dropping event. You can read more about the milestone here.

But it's important to remember that a better measure of the value of a company is market value, which is the number of shares times the stock price. And when you do that, Berkshire Hathaway doesn't seem so exceptional. With a market value of almost $162 billion as of late October, it ranked 13th among the Standard & Poor's 500 stocks in market value. No. 1 was ExxonMobil, worth almost $426 billion.

Should you buy the stock? First, keep in mind that class A and class B shares are similar and you do the same research if considering either one. To learn more about Berkshire's share classes, read this.

To find out if you should buy the stock, we'll put it through our usual four-step test:

Step 1: Evaluate risk and reward. We start by downloading the stock's trading history back to 1990, which is the furthest my database goes. This analysis shows us something everyone probably already knows: Berkshire Hathaway has been a big winner. The average annual return since 1990 has been 18.8%, which is almost twice the long-term average annual return of the Standard & Poor's 500 stock index. Big returns, such as a 57.4% and 52.2% gains in 1994 and 1998, helped power the stock. The biggest loss during that period was a 19.9% drop in 1999, as investors went tech crazy.

But return is only half the answer. You have to consider the risk you took to get that return. And in Berkshire's case, the risk (or standard deviation) is 20.9 percentage points. In other words, most of the time that stock is either up 41.4% or down 0.4% or somewhere in between. You have gotten 0.9 percentage points of return for every percentage point of risk.

Compare that with the Standard & Poor's 500, which between 1990 and 2005, posted a 10.5% average annual return, says S&P. And the risk: 17.9 percentage points. That means you got 0.59 percentage points of return for every percentage point of risk. So in this 16-year analysis, Berkshire is one of the few companies that beats the market in the risk-and-reward test.

Step 2: Consider the company's expected future cash flow. One way to evaluate a stock is to value the cash flow it's expected to generate as if you got it all today. A system from NewConstructs.com makes this easy. Entering Berkshire into the system returns a "neutral" rating. So, nothing too concerning here. Interestingly, this way of evaluating stocks is similar to the method Buffett himself uses.

Step 3: Compare a stock's price-to-earnings ratio now to its P-E ratio in the past. This analysis can tell you if investors are more enthusiastic for a stock right now than they have been. It can be a warning sign. The Stock Selection Guide from BetterInvesting helps us do this analysis. Here, we find Berkshire Hathaway is in the "buy" range as long as it can maintain its historical earnings growth rate of 14.7%.

Step 4: Evaluate the company's financial strength. Getting a cheap price on the stock of a shaky company isn't a good deal if the company hits tough times. That's why it's good to understand how strong the company is. That's certainly not a problem with Berkshire Hathaway, one of just a handful of companies with the AAA credit rating from S&P. As a double-check, we can look up Berkshire's USA TODAY StockMeter score, which comes in at a neutral 2.7. See it here.

What's the bottom line? This analysis is somewhat mixed. But it's hard to make a case that Berkshire Hathaway shares are overly expensive, even at more than $100,000 each.

Just remember, no matter what the share price, you need to do your research based on the value, or market value, of the company.

Matt Krantz is a financial markets reporter at USA TODAY. He answers a different reader question every weekday in his Ask Matt column at money.usatoday.com. To submit a question, e-mail Matt at mkrantz@usatoday.com.

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22-Sep-2010 09:59

Healthway Med / healthway, healthy?

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Last QoQ prOfIts dOwn 85%

neXt QoQ prOfIts UP 800%

pharoah88 ( Date: 24-Aug-2010 12:10) Posted:

Stock Calls
Healthway Medical
Buy | 17.5 cents
DMG cuts the target price to 23 cents from 30 cents after slashing the FY10 earnings estimate to $4.7 million from $16 million to reflect weak 2Q10 results and higher-than-expected start-up costs.

But it keeps the Buy call, saying “revenue is expected to pick up strongly in FY11, with full-year contribution from its new medical centres in China”.

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22-Sep-2010 08:59

Genting Sing / GenSp starts to move up again

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He is the Independent Director earning a living ? ? ? ?

He needs CASH for his living expenses ? ? ? ?

He was QUESTIONED by the FLOOR at the 1st AGM 2010 on WHY he was "so dIslOyal" tO sell his shares ? Especially WHEN it was sold BEFORE the AGM.

His reply was he needed CASH.

He was a RED HERRING.

Because Share Price ROCKETED on the 2nd Day after the AGM.

There was HUGE MARKET WEALTH RE-DISTRIBUTION during that perOId.

He will sell his shares every tIme fOr CASH ? ? ? ?

Habits die hard ? ? ? ?

cannotfind ( Date: 21-Sep-2010 21:14) Posted:

1. Date of change of Interest 20-09-2010

2. Name of Registered Holder Tjong Yik Min

3. Circumstance(s) giving rise to the interest or change in interest Sales in Open Market at Own Discretion

# Please specify details

4. Information relating to shares held in the name of the Registered Holder

No. of Shares held before the change	535,600
As a percentage of issued share capital	0.004 %

No. of Shares which are subject of this notice	250,000
As a percentage of issued share capital	0.002 %

Amount of consideration (excluding brokerage and stamp duties) per share paid or received 2.14

No. of Shares held after the change	285,600
As a percentage of issued share capital	0.002 %

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22-Sep-2010 08:50

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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*GENTING DNA*

P/E PEAKED 200

pharoah88 ( Date: 19-Sep-2010 17:07) Posted:

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22-Sep-2010 08:27

User Research/Opinions / ////// GENTING DNA ////// ^^^^^^^^P/E 200^^^^^^^^

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//////// GENTING DNA ////////

^^^^^^^^P/E 200^^^^^^^^

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22-Sep-2010 08:17

User Research/Opinions / ^ Productivity ^ [Effecacy Efficiency Economy]

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# QUALITY RISK

# SECURITY RISK

# INTEGRITY RISK

# OFF-GUARDITY RISK

# CORRUPTION RISK

# COMPLACENCY RISK

# INCOMPETENCY RISK

# NEGLIGENCY RISK

# EXUBERANCY RISK

# IGNORANCE RISK

# CARE LESS RISK

# DON'T DEVELOP INTERNAL TALENT

# DON'T DEVELOP INTERNAL COMPETENCY

# DON'T DEVELOP INTERNAL EDGE

# OUTSOURCER IS LIKE A "MIDDLE-MAN OVERHEAD" WHICH WILL BE ELIMINATED SOONER OR LATER

# WHY SHOULD CUSTOMERS GIVE ORDERS TO AN OUTSOURCER ? IF THEY CAN GO DIRECT ?

pharoah88 ( Date: 22-Sep-2010 08:09) Posted:

What is Your View on Outsourcing?	305 comments »
Started by Victoria Ipri, Digital Marketing Magician \| Social Media Consultant and Author \| Copywriting \| Profile Overhaul \| Public Speaking
The US state of Ohio has banned outsourcing of government IT and back office projects to offshore locations as a populist and... More » By Rohan Ayyar, BDO at Maven Infosoft Pvt Ltd

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22-Sep-2010 08:09

User Research/Opinions / ^ Productivity ^ [Effecacy Efficiency Economy]

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What is Your View on Outsourcing?	305 comments »
Started by Victoria Ipri, Digital Marketing Magician \| Social Media Consultant and Author \| Copywriting \| Profile Overhaul \| Public Speaking
The US state of Ohio has banned outsourcing of government IT and back office projects to offshore locations as a populist and... More » By Rohan Ayyar, BDO at Maven Infosoft Pvt Ltd

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22-Sep-2010 08:05

Others / TRADE FREELY & LiVE LONGER

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WInners dOn't dO dIfferent thIngs.

They dO thIngs dIfferently.

By Sushruth G

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21-Sep-2010 21:07

Fixed Deposits / ???????? CPF ? BANK ????????

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CPF SMRA minimum interest rate extended for another year

SINGAPORE

In a statement yesterday, Manpower Minister Gan Kim Yong said that, despite Singapore’s strong economic recovery, interest rates have remained low.

He added that a sharp drop in interest rates at the expiry of the four-per cent floor rate may impact CPF members who have yet to benefit fully from the economic recovery.

Since January 2008, SMRA savings have been invested in 10-year Singapore Government Securities (10YSGS), a market-based rate — plus one-per cent — for instruments of comparable risk and duration.

To provide for the transition, the Government had committed to the 4-per cent floor rate for SMRA interest up to last December.

This was first extended a year, due to global economic conditions and the exceptionally low interest-rate environment last year.

Citigroup economist Kit Wei Zheng told MediaCorp the latest move would protect CPF savings from being “eroded” should the inflation rate rise from its current level of “over three per cent to four per cent by the end of the year”.

From 2012, the minimum interest rate will be 2.5-per-cent per annum.

When he explained the CPF changes in 2007, Finance Minister Tharman Shanmugaratnam said the peg to long-term bond rates would offer members “better returns over time with slightly higher interest rate risk” on their SMRA.

The 10YSGS is now 2.15 per cent. In January last year, it was 1.7 per cent.

Mr Kit said Singapore bond yields are influenced by United States bond yields and that interest rates are “near historic lows” and expected to remain so for some time with the “sluggish” US recovery.

So does the decision to peg SMRA rates to long-term bond rates hold?

“It appears it’s not working well. Back in 2007, no one anticipated the 10YSGS yield would fall or that the US would be hit by a deep recession,” said Mr Kit, who suggested adding two per cent to the 10YSGS instead of the current one per cent.

Interest rates could rise, though, if the US economy improves. “How fast and when depends on global economic outlook,” said Mr Kit.

When that happens, the Government would probably not extend the floor rate of 4 per cent since the formula of 10YSGS plus one per cent would give better returns, he added. — The Government has extended the 4-per cent minimum interest rate for Central Provident Fund savings in the Special, Medisave and Retirement Accounts (SMRA) for another year — the second time it has been extended.Esther Ng

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21-Sep-2010 21:06

Fixed Deposits / ???????? CPF ? BANK ????????

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shOUld CPF bOard be rUn as CPF Bank ? ? ? ? ? ? ? ?

fOr ALL members' prOsperIty ? ? ? ? ? ? ? ?

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