Dear Mr Buffett: What an Investor Learns 1269 Miles from Wall Street

Book author is Janet Tavakoli.

I cant really give a book review for this book, as i don't know how to start penning my thoughts..

A total of 14 chapters with first 2 chapters more on introduction and some background information and last chapter for conclusion.

Issues she touches on, are the contributing factors to the more recent sub prime crisis (2008). Housing bubble in U.S, Bad Mortgage Loan, Securitize Bonds with Inaccurate Ratings, Acts of Major Financial Institute. More insights which gave me more understanding to the Sub Prime Crisis. More names and financial institutes mentioned of their greedy acts and ignoring of her warning.

Somehow find that this book turned out to be her ranting spot (on those who didn't heed her advices) and prising (3 leg in hokkien) for Mr Buffett. Thou i don't know their relationship in the financial circle. I find that the amount of time & effort, she use to praise Buffett is making me uncomfortable.

As mention in previous post that i find that the content is out of my reach. However, as i moved on, i find that her logical and clear of explaining, makes the reading more interesting. Although there are many big names mention, but i didn't bother to wiki on them.

So whats next? Finished all the books on hand. Now waiting for the arrival of the 6 books which i ordered from Amazon. So excited!! hoho! A sneak preview of what i got, 4 economic related books and 2 on how to spend money and how to use credit card.


1 year worth of books to read
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Digital Fortress Cracked Open!

Digital Fortress

Started reading Dan Brown's book which made him famous, the Da Vinci Code (not really due to the interesting plot, but rather his criticism faced by Christian communities. Anyway i find his other books better)

Order of his books i read: Da Vinci Code (2003), Angle and Demon (2000), Deception Point (2001) and lastly the Digital Fortress (1998).

Find that his story plot is always spanned within 1 day. Characters always running around or busy with a certain event, which he describe in great detail (to me). Unlike Robin Cook's novel which span across weeks or month. Best, Matthew Reilly which can have flashbacks of event decades ago or "One year after event"...

Just when i thought i finish his series of novels, then announced of his new novel, Lost Symbol. Again involved the same novel character from Da Vinci Code and Angle & Demon, Robert Langdon.. Publishing on 15 Sept 2009! My brother said he will be keen to read his next book (in fact, he finished reading Dan Brown Series earlier than me...)

Expecting it to be first published in Hard Cover, I will have to wait a few more months for its paperback to be published before i can lay my hands on them..


Currently reading, Dear Mr Buffett. What An Investor Learn 1269 Miles From Wall Street. A present from Wilson for my birthday. OH GOSH! The book is quite technical and at corporate level!! Debating about treating employee's stock option as an expense and hedge funds (read till here currently). Mentioning alot of powerhouse in Financial Sector, while i don't even know who are our national athletes, in the sports, which i had enthusiastically participated for half a decade.

Totally out of my range, can't even grasp what they talking. Now just taking their debate, word for word. But don't worry Wilson, for you i will finish the book even if i don't what the shit they are talking about.. I prefer Economic Books (*hint)



F*** who pulled out my bookmark AGAIN!!
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Microtrends: the small forces behind tomorrow's big changes

Title: Microtrends: the small forces behind tomorrow's big changes
Author: Mark J. Penn & E. Kinney Zalesne

First i thought this book is got to do with economics similar writing style as freakonomic. But it turn out to be more like sociology (not sure if its the right category), mixed in with politics, bits of marketing behavioral and supported with stats tics (which i cant decipher at my level, but basically is just graph line suggesting increase or decrease)

What I Like:
A total of 15 chapters which in all touch on 75 different case studies he made. Instead of the usual 50+ pages for a chapter from a non-fiction book. Each case study varies 4 to 10 pages, make lazy people like me easy to read. Each chapter talks about general issues we see in daily life (US context) but not spotting the 'micro' trend.

Some example:
Love, Sex Relationship: Office Romancer, Commuter Couple
Work Life: Working Retired, Extreme Commuters
Health and Wellness: Sun-Haters (sun-tanning issue), 30-Winkers (sleep issue)
Family Life's: Pet Parents, Late-Breaking Gays, Dutiful Sons
Author came out with interesting topic title to address the issue, maybe even suggesting a 'new term' for such trends. A new term commonly heard local recently "foreign talent"

What I Dislike:
No matter how interesting the author tries to present the findings, there is still some topics which i have no knowledge on, such as Politics and Race & Religions.. So end up just reading for the sake of reading for some of these topics.

Food for Thought

"By the time a trends hits 1%, it is ready to spawn a hit movie, best-selling book, or new political movement. The power of individual choice is increasingly influencing politics, religion, entertainment, and even war. In today's mass societies, it takes only 1% of people making a dedicated choice - contrary to the mainstream choice - to create a movement that can change the world"

"An average person cannot tell the difference between 4% unemployment and 8% unemployment. If you have 100 friends, and a few more are employed or unemployed, you cant accurately gauge whether the economy is going up or down. If twenty of them were unemployed, could; in other words you can easily see firsthand the complete disasters and depressions. But you cant see the changes in the normal range of statistics. You cant really see the difference between an economic boom and a recession, which would be the difference between 4% and 8% unemployment"

Paragraph taken from the Introduction and Conclusion of the book

So any trends we can spot in our local context other than above mention foreign talent?
Actually i don't really see it as a new trend. Its has been around since the day, Sir Stamford Raffles landed on this small island (first foreign talent). We are just happen to be the foreign talents' descendants. Look at it from this perspective, it just take 2 generations to produce a "Singaporean", who are speaking better English that's all..

Will my favorite color Pink be the next new Black? Will I have children ended announcing they are attracted to their same sex? Or animals being my grandchildren? How about Internet government critics group, the ruling party for our nation?

WHY NOT, Since all it takes is 1% ?!

Trend Spotting
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The Undercover Economist

Hoho finally finished reading this book. Thanks to my self-declared study week (so no work). Intend to read this book while taking a break or before sleep. But soon, it overtaken the time im supposed to be revising. Haha!

A brief scan through of his chapters:

1. Who Pays For Your Coffee
2. What Supermarket Dont Want You To Know
3. Prefect Markets and the 'World Of Truth'
4. Crosstown Traffic
5. The Inside Story
6. Rational Insanity
7. The Men Who Knew the Value of Nothing
8. Why Poor Countries Are Poor
9. Beer, Fries, and Globalization
10. How China Grow Rich

Not going to repeat the mistake i had with Buyology, which is to refer to the book and bring out some of its point. If do so, i will be another long post, dry and boring. So this time, my approach will be just to touch on "what i think/like about this book", a closed book review.

Concepts. This book came in while I'm in the mid of revising for my exams, which need to memorise key concepts of theories.. Was surprised to see keywords appearing in this book, but not from my economic module. From Marketing: Price Targeting, Game Theory.. Banking And Finance:
Adverse Selection, Moral Hazard. Typical Economic terms: Demand & Supply, Marginal cost/utility. But he had made it easy for readers to understand these terms.

There's more, but cant recall without referring which I'm not intend to do so. So this brings me to a point that, the theories which i learnt from PBF and PMKG could be brought over from economics to explain the situations/events in their related field.

Style of writing. Had read freakonomics (another similar book on economics). Find Freakonomics not as engaging as this writer. His opening for a new chapter can be as long as 3-4 pages before going into the main points. He illustrates some of his points using simple activities such as shopping in supermarket, the frustration from traffic jams and even just drinking of Starbucks coffee. Slowly adding in the economic concepts and elaborate his point further.

Perspective on Economic. Got to learn of economic from school. Always the DD and SS (demand and supply), Relationship between IR (interest rates) and P (Prices). GDP, GNP, blah blah blah.. So much of text books theories, figures and statistics. He wrote this topics within his Chapter, Crosstown Traffic, named "Epilogue: What is Economics really about". Stated in his sentences (ok~ i flipped the book) "Most economics has very little to do with GDP. Economics is about who gets what and why." Wah can see lights shining above me liao..

Whats next. Ya its going to be Microtrends.
But my last point isn't about what book im reading next. After finishing this book, it had a few other topics which I'm keen on reading about. Ageing Population, Globalisation..

I'm not good at choosing books. Hence only choose based on a few methods.
Interesting titles (buyology, freakonomics)
Topics they are covering, whether they can attach me when i just browse through them in bookshops (Microtrend, Undercover Economist).
Recommendation from others (robin cook's book)
Loyalty to the Author. Continue reading the author's other books
Recommended/Mentioned in other books/magazine. For them to be about to be mention, should be good. Although can subject to marketing plots


Why can't revision be easier
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Dear Mr. Wilson | Birthday Present

This is what i got. Guess, he knows that i have been reading business fiction books. He told me, his other option is actually Classical Non Fiction Book. For those who don't what is classical books (which i also don't initially) its old time titles such as Dr Jekyll, Dracula, etc.. Was super thankful he didn't make this choice, if not i will throw the book on his face after i finish reading it.

Had seen this book everytime i passed by any book shop. Didn't even picked it up to read their short summary. Maybe because it has Warren Buffett printed on it and its placed on the 'INVESTMENT' section. At first i was very keen in getting investment books, the idea of fast money and building your wealth fast from stocks, property etc. But after reading a few other books and putting some thoughts into it. I feel that money should be earned in a more realistic manner. Investment should be used to 'growth' wealth not to make a living (at least for this stage of my life)

Anyway thanks Wilson for adding another book to the current pile of books which are still unread. Currently, trying hard to digest the content from Undercover Economist. Progression is further set back due to my exam papers coming up. In the queue are Undercover Economists (in progress), Micro Trend and Dear Mr Buffett.

Lastly please read this post by Wilson. I'm just damn glad that my writeup is not as gay as his...


Thankful
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Buyology: Truth and Lies About Why We Buy | Part 2

okok back from studies. Looking back at my previous post. I think its pretty lengthy, so maybe will shorten this part 2.

Chapter 5: Do You Believe In Magic?
This chapter explains how rituals and superstitions affect our buying decision. No brain scanning.. I wouldn't say much about superstition, maybe just a few examples happening in the market..

• Working in BQT, usually for wedding, you would set tables number with the number '4'.
• Same for hotel rooms and floor
• BQT will hit low peak during Lunar '7th' month
  
• Flight demand on air/sea trips will drop on Friday 13th..
  

How about rituals? In army, have you heard your commander telling you this story/joke.

Saying about this religion, worshiping to Cats. While the origin of the story is actually a priest tie a cat to a table while preaching. Hence over time, new priests take over and continue with the same routine, start thinking that the cat is a religious symbol.

Morale of the story from commanders: Don't be complacent with our routine task and forget about its purpose.

So maybe i go around Tri Team and start telling the juniors that i prefer eating yong tau hu before races. Maybe past a few generations, there will be this 'ritual' spreading around saying that yong tau hu can improve your timings during race~ haha!

Chapter 6: I Say A Little Prayer
Pretty much similar to the previous chapter, but this time on faith and religion. Pretty sensitive topic, so I'm more like quoting from the book. People willing to pay money for things, they believe have religious or spiritual significance.

An local example: Remember childhood, our parents will come home with this talisman, telling you to keep by your side. Or a talisman which you parents will burn them into ashes and mix with water for you to drink. Basically its a yellow paper with red ink, a simple item yet having money value on them.

This topic isn't just about the religion we pray to. But also talks about a BRAND being a 'religion', a BRAND with its attitude, vision and symbol.

Take example for Harvey Davidson, I have this Director of BQT, riding it. You will see him wearing this ARMY helmet (i don't there is any protection), leather vest and jean. Topically what you see in the U.S commercials/shows/movies.

Or Apple? Users often 'label' themselves as Apple User instead of Mac User. You don't see people proudly telling others, "Hey im a window user" -_-".. People tend to associates Apple users being cool and hip while Windows user, GEEK.. (its ok i prefer user friendliness)

Chapter 7: Why I Choose You?
This topic's key work is Somatic Markers, part of our brains which stores the memory of 'impressions (good/bad)' Author linked this chapter with 1 of the 4Ps in Marketing -Promotions and Advertising. How advertisers make use of their advertisement to create an impression to spark a desire/need.

Impressions doesn't need to be good to achieve the buying effect.
Look at Shampoo or Facial Advertisement: They tend to put up a negative effects, bad hair conditions as thou you went thought Sahara Desert or a face which seems like it been through a mine cluster. After which they show the after-effect of using their product. Wah~ plastic like face, silky like hair. Old lady can also become a young teenager.

Chapter 8: A Sense Of Wonder
This chapter caught my attentions. Suggesting that our visual are over-simulated by all the brand advertising. In fact, smell and sound are better attention grabber and holds better impression.

Smell: Johnson & Johnson, why we know this brand? Its our childhood partner! Do you know its brand logo? No... When you go to Supermarket with no preference for powder, most probably we will choose J&J.

Do you know, Hotels got their own air fresher smell and same for their toilet soap and the detergent to wash their towel and robes? So guests with impression of the smell will tend to plan a revisit to the hotel.

Touch: When buying clothing, we will stroke, rub, caress or run of fingers along the line-up of clothing. We have this ideal impression of 'good quality' judging the clothing by its material coarseness and thickness.

Weight of an object also plays a part, related to its quality. For some products which are too light, consumers will associates them as low quality, plastic feeling e.g. Shades, MP3 ..
Take example, Bang and Olufsen's ear piece and Ipod products, using metals for their products.
Some of them are actually lighter than the actual weight, producers add in aluminum inside to make them 'feel' heavier.

Sound:
In public areas, how often you hear Nokia Default Ring Tone and SMS Tone? Its their unique tone which differentiate them from competitors. Or have you been to spa, where the outlet plays relaxing melody on the background. Same goes for hotel where they tend to play jazz music at their lounge or lobby.

I think this post is getting out of hand. Will skip Chapter 9 and 11 as they are the Future of Neuromarketing and Conclusion.

But Chapter 10 is the topic he printed on his book as the first question he plans to explore. (damn its turn out to be the LAST, another marketing strategy)

Chapter 10: Let's Spend The Night Together
This chapter, he asked himself this question whether 'Does Sex Actually Sells". A 'NO' in his book. "Sex sells nothing but itself", i like this sentence..

Look at advertisement of Perfumes, Undergarments and Jeans. Topical scene of female or male model have naked either wearing the product or at the end, they say out the tag line with the product. Usual theme of Lust, Temptation, Sex and Seduction. Are we able to smell the perfumes or feel the texture of the undergarment and jeans when watching TV advertisement? No~ What works at that point of time is the mirror neurons (remember Chapter 4?)

His studies shows that while looking at half naked poster/advertisement. People (guys) are more attracted to the model and not the brand. How about half naked male advertisement? Most probably only attracts gay~

True male are not keen in looking at Calvin Klein undergarment models, their 6 piece abs and the bulging you-know-what. So why such ads exist? Do you know that most male undergarments are bought by women? From child to young adults, its always mother who buy for me. I would be special there are army boys who dont even know what size they should be wearing.

I know this so far the longest and boring post i ever had (just scrolled the page). If you don't enjoy it, never mind. DON'T TELL ME! I take it as my personal super long book review.


The Undercovered Economist Next
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Buyology: Truth and Lies About Why We Buy | Part 1

Some of my friends have been hearing me talking about this title for ages, or even read from my blog posts about it. Finally finish reading it! A hard-covered book, measured 22cm by 15cm by 2cm, isn't as thick as i think it is. Almost 1/8 of the book is Foreword, Introduction, Appendix, Acknowledgment... So finished within 2 days, possible to finish within 1 day.

Total of 11 chapters,

Chapter 1: A Rush of Blood To The Brain.
To claim that the author conducted the largest neuromarketing study ever. Introducing the sophisticated brain scanning machine, fMRI and Electroencephalography, SST.

Using smoking as an case study for this chapter. Look at the cigarettes boxes, you see those gruesome images which suggest to you that if you smoke, you will turn out like this?

Thought the studies (from the book), findings show that there is not affect on smoker when comes to discourage them from smoking. In FACT! the warnings label which tells them that they have risk of getting 'blah blah blah' diseases, lights up a certain neurons which suggest our body is desire for something. In short, the warning label appears to encourage smokers to light up..

So relating this to our team, whenever coach advise us not to join certain races, for which we will tend to get injure.. Does it also lights up our desire to join that races? Verbally agreeing with the risk, yet subconscious tempting to sign up.. Ok~ i plead guilty~! haha!

Chapter 2: This Must Be The Place
Covering product placement. If you remember American Idols, what are the drinks the judges are drinking. Yeah~ you will be right guessing Coke. A topical example, my marketing lecturer like to give during lectures. How about the brands you see in James Bond movie? From his phones to shades, suits and watches, cars to boat.. (FYI: there is a total of 23 brands featured in Die Another Day in the 123min movie, which the author suggest the title to be BUY ANOTHER DAY)

So he question in the chapter is, does the product placement really work? He suggest that in order for product placement to work, the product must make sense/play a certain role within the show.

Another point, A good product placement not only increase our memory of the product but also decrease the ability to remember other brands.

Chapter 3: I'll Have What She's Having
Covering Mirror Neurons, which suggest that we tend to copy the actions of others mentally. What spark of this idea is from a macaque (monkey). Seeing a student licking an ice cream, but its arm aren't moving nor its tongue licking anything. But its brain is mentally imitating the same gesture.

Have it ever had the desire to get the same product when you see people owning a certain product e.g. ipod. Or when looking at the mannequin wearing this nice dress, you will imagine you looking like it? When coaches show you videos clips of pro athletes swimming/running/cycling, a sudden surge of 'motivation', making you wanna be like them? ok white flag up~ i surrender...
Another 'thing' that works with mirror neurons is Dopamine. Lay man term, our brain's pleasure chemical, also a kind of addiction. Have it ever hit you when you went into a shop, e.g. the recent Adidas sale. You looked at all the items, and your just feel like buy! Buy! BUY!. Good news to shopping addicts, the it only takes 2.5sec to make a purchasing decision. Bear with it, when you exit the shop, you will be thinking "Chey i don't really need them, Heng Ah~"

Chapter 4: I Can't See Clearly
Touches on Subliminal Messaging. In short, a message conveyed to you subconsciously or brainwashed. Listed out 1 method which is banned in the late 70s. E.g. projecting a series of text to users, 1/300o per second for a interval of 5mins. However subliminal advertising still exist, but in a more indirect form.

A good case study of Marlboro. Click on the hyperlink to check out the wiki site. Just look at the pictures. The striking white color and its triangle shaped design cutting into the striking red region. The F1 team, dressed in the similar colour combi.

Saw this example on some documentary show before. Try recall some clubs (for smokers) with a similar color combi or that triangular shaped design painted on their wall. And Yes they do have effect of smokers to have the desire to smoke.

***OK TIME OUT***

Going TP for Lunch then Study
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Intellectually Challenged

Was looking over the World Wide Web for a decent definition for 'Intellectually Challenged', but none seems to give me a answer which i wanted. All suggested retarded, brain damaged or lowly educated..

Decided to use this term to label my book related stuffs. Find that past few months of reading had proven effective, not totally to my academic but more to my visualizing skill. initial phase of reading really made me feel intellectually challenged haha! maybe due to the ability to visualize what the author is trying to portray and some 'chim' chapters/endings which i failed to comprehend even now..

So how to helps in academic? Well if i can finish a 1 inch thick by A5 size book with size 12 font, why cant i read a 1 inch thick by A4 size text book with size 14 font? Actually size isn't the matter, but the fact that actually i can finish reading.. haha! For someone who never finish reading a decent book since Pri to Sec, Sec to Poly.

When pri sch, books are those less-than-a-cm thick story books with almost half of the book filled with pictures. In sec sch literature, still remember 'Red Sky in the Morning'. I wonder how i complete this subject... always copied and edit the summary at the back.. Poly, I had bought numerous text books but all still in book store condition. They are only used for tutorial by me. But soon find out that copying or lending a book is a faster and cheaper method.

Other than 1 book which i lent to Pauline. The book seems like underwent a traumatizing gang rape. Every page seems to be offended, stained by her finger print. The front cover had been flipped so much that it shares the same softness as the other pages! Thats the difference between 1 who gets top in poly while the other figuring what the hell 'GPA' stands for whenever looking at the results slip.

After posting 'Read Your Way Through' had follow up by finish the Dan Brown books except the Digital Fortress. As for Matthew Reilly's Six Sacred Stones, i still have not get my hands on it too, instead i got his Temple. Meanwhile waiting for his 'Five Greatest Warriors', which marks an end to this action/adventure series. Stumbled across wiki on his other books, a long list of them.. Same as Robin Cook, another author recommended by me from Mr Teo, especially his 'Coma' and some other title which i lost track.

Together with Temple, i bought another 2 books which are Robin Cook's Abduction and 'Think and Grow Rich' which i think is mention in 'Rich Dad Poor Dad', nearing the end. Got these books from the Popular Sale in my campus for $5 each.

Wondering how i laid my hands on 'Rich Dad, Poor Dad'? It was lent to me by another sec sch teacher, Mr Soh, who happen to know I'm taking Banking & Finance. Enthusiastically, he passed me his finance related books. Kinda hard to digest such technical books at my current literacy to finance.

It really a big deal if i can finish 'Big Deal' and the 'Temple' with the size of my Dictionary

Brain Hemorrhage
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Read your way through!

haha! So happy reading these books. Still though never in my life i will be reading. First the Freakonomic recommended by Wilson, follow by Stephen's self improvement/inspire books which i though it will be useful in my life, which turn out to be a good lulabye before bed. 'Seven Ancient Wonders' which is a good past time for me while in Thailand. Lastly, a series of Dan Brown's thrilling novels, still required the 'Digital Fortress' to complete the whole Dan Brown collection which im going to get next! And waiting for Matthew Reilly to complete his series, a part 2 of the 'Seven Ancient Wonders' with all the characters.

School had just started, guess i wouldn't be that free anymore to read much books. But always welcome people to recommend me interesting books to read! Want to increase my book collection! haha!

Book Worm
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