Saturday, September 2, 2017

Trip to Osaka

2 Sept 2017

Dear Fellow Investors

Some of our successful investments  in the KLSE over the years  have been Japanese, American  and Taiwanese companies  with Malaysian subsidiaries.

For example Japan Tobacco, Inari, Tasco and recently purchased Uchi Tech are some which we bought.

They are able to leverage on lower wages, lower  taxes  and less government regulations than they would suffer in their home, countries.

If they export which all do they  benefit from  exchange rate differences.

Because they must report to their home office, they  tend to be more prudently managed. Aji a  maker of MSG is an example.

On 27 September, Dolly and I will be taking the night flight  to Osaka.

 We will spend 4 days in Kyoto and 3 days in Osaka to view the historical attractions, including the world’s largest aquarium which has a giant whale shark.




I am planning a visit to Nidec in Kyoto,  which is  the world’s largest manufacturer of miniature electric motors.

I want to find out if they have a Malaysian or Singapore subsidiary. If they do that could be a good investment for us.  Subsidiaries tend to perform better than their mother company.

The KLSE/ SGX continue to consolidate with poor momentum.  Singaporeans/ Malaysians are  pessimistic and have reduced their spending and increased their savings.  

My bet is the sun will rise again- it always does. So I do not advise being pessimistic and leaving your money in a fixed deposit. Look for good value while the market is quiet.

Continue to focus on solid companies with earnings growth/ dividends  Rubber glove demand is picking up and that will benefit our holdings in Kossan. 

The floods that have hit Houston, Texas  have destroyed over 100,000 homes, power lines roads and schools  with an increased risk of disease among the thousands of homeless.

Trump will allocate money to buy more hospital supplies, construction materials and rubber gloves. Trump is taking a hands on approach to the disaster so progress will be made to help the victims  

Trump in my opinion has a good heart although he is a rough, rude and frank talker. He donated out of his own pocket 1 million USD to the flood victim's cause. The Clintons, Bush or Obama never opened up their wallets to disaster victims. All talk and sympathy but no money. Money talks.  

Our investment  in Kossan is steadily rising and should bear more fruit.

Invest well and grow your wealth
Bill.




Today’s critter is a Zoo Negara sun bear. It is fun to watch them climb
They are really fast despite their lazy appearance.

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