Daddy M & M

Driving home today, I saw something that made me shake my head – several motorcycles weaving through the middle lane. It's a common sight, unfortunately, but today it really got me thinking. Do these riders understand the principle of defensive riding? In Singapore, sticking to the left lane isn't just about traffic flow; it's about survival. If you're hit while riding in the left lane, the odds are higher that you'll be thrown to the side of the road. But in the middle lane, you could be flung left or right, potentially into the path of oncoming traffic. Imagine being hit once, then helplessly careening into another vehicle. The chances of surviving a second impact are tragically slim. It's a stark reminder that even seemingly small decisions can have life-or-death consequences. Yesterday was Total Defence Day in Singapore, a day we commemorate the fall of Singapore in 1942. But Total Defence isn't just about military might. It encompasses so much more: ci...

I'm a firm believer in keeping things simple, especially when it comes to investing. My approach can be summed up in one phrase: circle of competence, which I learned from Warren Buffett. I stick to what I understand, and that's primarily investing in individual stocks. Forget calls, puts, futures, or warrants – they're not in my toolkit. I also steer clear of currencies and commodities. These instruments come with their own unique risks, and I see no need to expose myself to them. As Mark Twain wisely said, "Only things you know bring you trouble." My aim is to minimize the unknown. This disciplined approach simplifies my investment life considerably. Just as I meticulously read the manual for any new piece of equipment, I pore over the financial reports of every company I consider investing in. It baffles me how some people throw thousands of dollars at stocks without ever cracking open a financial statement. It's like buying a complex machine without unders...

I've noticed a trend on Xueqie (雪球) – some bloggers act like gambling kings, confidently predicting exactly how high a stock price will climb. This kind of forecasting falls into one of three categories: Paid Pumping: Someone is paying them to artificially inflate the stock's price. Heavy Bag Holders: They've bought a ton of the stock and are trying to talk it up. Plain Foolishness: They're genuinely mistaken about their ability to predict the market. Regardless of the reason, Warren Buffett and Charlie Munger have consistently taught us that no one can reliably predict stock prices. So, if someone claims they can, you know they fall into one of the above categories. This reminds me of a passage in the Bible. Even Jesus said he didn't know when he would return, and he cautioned against making such predictions. Yet, throughout history, many evangelists have done just that, especially after gaining fame. It's baffling. Why ignore such a clear directive? I read...

This morning, I read a story about a man who discovered Bruce Lee, Jackie Chan, and Jet Li. A legendary figure in the Hong Kong film industry, right? Yet, despite this incredible track record, he ended up bankrupt in his old age after a film investment flopped. This story highlights a critical issue: path dependency. This man, I believe, fell victim to relying too heavily on his past success in a single, highly competitive industry. Even if you've succeeded in nine out of ten films, one failure can wipe you out. His long string of wins likely lulled him into a false sense of security. He had deep industry knowledge, but he overlooked the critical vulnerabilities that could lead to financial ruin. This is a stark reminder: no matter how much you know, if you ignore the potential pitfalls, your fate is sealed. This isn't just about the film industry. It's a lesson for all of us. We need to constantly be aware of the risks that could jeopardize our financial well-being. I'...

There's a huge difference between hearing about something and experiencing it firsthand. Sometimes, you just have to get your hands dirty to truly understand. Relying solely on secondhand information can lead to misconceptions and missed opportunities for improvement. My experience growing kangkong (water spinach) taught me a valuable lesson about this. I used to plant kangkong from seeds, waiting months for a single harvest. But I discovered that kangkong , like many plants, is perennial. This means you can harvest it repeatedly without replanting from seed each time! Instead of pulling up the whole plant, you simply harvest what you need and let it regrow. It's a much more sustainable and efficient approach. Why do we still see kangkong sold as whole plants? It's a practice ripe for change, and it requires a shift in mindset. Germinating seeds also provided a learning experience. Initially, I just buried the seeds and let the sun do its work. Often, they wouldn't g...

Ever wonder how banks seem to create money out of thin air? It's not magic, but it's pretty close. It's called the money multiplier effect, and it's a fundamental part of how our financial system works. Let's say you deposit $100 in your bank. That money doesn't just sit in a vault. The bank is allowed to lend out a portion of it, keeping a small percentage in reserve (let's say 10%). So, they lend out $90 to someone who wants to buy a car. The car dealer then deposits that $90 in their bank. That bank, in turn, lends out 90% of that amount ($81), and the cycle continues. This process repeats itself, with each loan creating a new deposit. Theoretically, that initial $100 can multiply into $900! It's like a chain reaction of lending and depositing. The catch? There's only $100 of actual physical cash. The rest is essentially electronic entries in bank accounts. If reduce reserve percentage from 10% to 5%, the loan amount will increase to $1900! This i...

I've come to realize that much of what I thought I knew before 40 was just that – thought. Life, especially when it comes to understanding complex systems like nature and the market, requires time and observation. My 40 years+ have been a fascinating education, and water, surprisingly, has been one of my greatest teachers. Growing up in the tropics of Malaysia, I initially oversimplified the origins of rivers. I pictured them fueled solely by tropical downpours. But I learned that the reality is far more nuanced. Water's journey begins high in the mountains for country with winter, often as snow. Winter's chill transforms water vapor into frozen crystals, which then melt in the spring, feeding the rivers. This explained why river flow often diminishes in the summer – the snow has already melted. Mountains like Kota Kinabalu taught me another lesson. Their height creates cooler temperatures, causing water vapor in the air to condense, forming waterfalls seemingly out of thin...