Fareed Zakaria (CNN) talks to Michael Lewis (Liar’s Poker) about the economic crisis and Wall Street’s future

Have a look at this video:
[Read more…]

When the economic crisis bites, ego still prevails

Talking about the economic crisis, here’s a true story that I want to share with you.

Junior (Not real name) owns three cars. Not three kancils, but three luxury cars. When the economy was good, he had no problems whatsoever in paying off his car loans and maintaining those cars. He was living a good life.

However, recently, he got conned by a bunch of folks. Also, his business was not doing well anymore due to the bad economy. He was struggling.

[Read more…]

Who’s richer? Siapa lagi kaya? Part 2

Part 1 is located here.

Now, consider this:

You earn a salary of $10,000 per month and your expenses amount to $9,900 per month. You live an extravagant lifestyle, accompanying yourself with a the latest gadgets and machines, expensive cars, and etc.

Your friend earns a salary of $2,000 per month and his expenses amount to $1,500 per month. He lives a modest lifestyle.

Assume also that other things remain constant (ceteris paribus).

Now, the big question. Who’s better off?

[Read more…]

Who’s richer? Siapa lagi kaya? Part 1

Here’s something to think about.

Consider this:

You own a one-billion-dollar asset, fully financed by the bank. i.e. you took a loan of $1 billion, thus owing $1 billion.

The homeless person you usually see on the streets has no assets at all and has no debts.

Assume also that other things remain constant (ceteris paribus).

Now, the question is, who’s richer?

[Read more…]

Back to Basics: Investment Asset Classes

Previously in the Back to Basics series, I have written about:

Today, we shall be perusing at what’s out there and what’s available for us to invest in.

Generally, there are four major asset classes available.

They are:

  1. Equity
  2. Cash/Money Market Securities
  3. Fixed Interest Securities
  4. Property

Here are some explanations and examples of the above-mentioned asset classes:

EQUITY MARKET

In the most simplistic sense, equity is another name for stocks or shares.

Examples that come under this category are:

  • Malaysian stocks
  • Australian company stocks
  • Unit trust funds/managed funds/mutual funds
  • Foreign stocks

CASH/MONEY MARKET

The money market forms a part of the debt market. Generally, securities traded in the money market have maturity periods of less than 12 months. Maturity basically means, your positions will be exited within the time frame.

Examples:

  • Bills of Exchange
    • Bank Bills
    • Treasury Bills
  • Promissory Notes
  • Certificates of Deposit
  • Treasury Notes
  • Unit trust fund or mutual funds dealing with money markets

[Read more…]

Public Asia Ittikal Fund not Syariah Compliant?

I’ve been meaning to blog about this topic for quite sometime now.

While I was in Malaysia, I received Public Asia Ittikal Fund’s (PAIF) annual report for the financial period from 2nd of August 2006 to 31st October 2007.

In the “notes to financial statements” section, they listed out pretty much all of the companies that they are holding in their portfolio.

One company caught my attention. ABC Learning Centre, an Australian company.

According to ABC Learning Centre’s financials, I noticed that their total debt divided by market capitalisation is somewhat in the vicinity of more than 50%.

[Read more…]

Return to top of page

Copyright © 2019 · Faliq Fauzi · Log in