March, 2007:

Commuting to Work

I live very close to my current work place in the city. During the cold weather I take mass transportation. It takes me 20 minutes by bus and train, and costs me $76 for a monthly unlimited Metocard. When the weather is nice, I usually walk to work. It takes me 20 minutes to reach work by foot, and costs me nothing. During the summer, I buy Pay-Per-Ride metrocards since I don’t use the metrocard everyday. But more importantly, walking is a healthy exercise. Sometimes waiting for the bus can get frustrating. Walking lightens your mood and relieves stress.

Of course, I know not everyone walks to work. Tell us about your commute. How much do you spend for your commute? And how long is it? Do you think it’s worth the time and money?

StarBucks Coffee Break

Book Review: Profit From China

I received a complimentary copy of the book, Profit From China in December. Unfortunately, I was so busy I had not had a chance to read it until March. Thanks to Peter from John Wiley & Sons for sending me a copy.

Profit From China talks about the growth and opportunities in China. It illustrates the kind of pace china is growing at and predicts what China will be in the near future. After reading this book, I became more interested in investing in China.

For specific investments, the book recommends buying PetroChina (PTR), Bunge (BE) and iShares MSCI China Index (FXI). China is growing through a huge growing phase and is consuming a lot of oil and resources.

The book also talks about The Investment U’s Philosophy to a successful investing. One principle is a Trailing Stop Strategy of 25%. This is when you put a trailing stop of 25% on a stock to protect your profits or limit your losses from 25% off the peak. Another principle is Position Sizing. You should not have more than 2% of your portfolio in any individual stock. And the other principles are Emotionless Investing and Asset Allocation.

The book was easy to read and short enough to finish in a short time. It took me a few days, because I read it only during my train rides, but it could be finished in one sitting.

Recommended: Yes

Disclaimer: No compensation was received for this review. The contents on the post are entirely opinions of the blogger.

Deal or No Deal

In tonight’s episode, two different contestants picked a case with a million dollars in it, but both sold the case for a cheaper offer. One of the contestants was a retired General and another one was a body builder. The General sold his case for $99,000 and the bodybuilder sold his case for $81,000. Had either one of them gone all the way, he would have hit the million dollar jackpot.

I can understand why the bodybuilder took the offer. He was broke, so $81K seemed like a huge amount to him. But, why the retired General? I was surprised the General took the offer for $99,000 when he still had a fair chance to hit the million. I presume he would have a nice pension by his age and wouldn’t need to worry about money. Why not go all the way? $99,000 may seem like a lot of money, but after taxes, paying fees, buying dinner, passing off some gifts, this and that, there’s really little left. Correct me if I’m wrong, but taxes would chop the $99,000 to roughly half the amount, or about $45,000. And then you take your friends and relatives out to dinner. You give some money to your relatives and friends. Eventually, you’d end up with $20,000. $20K is still good money, especially when it’s free, but it wouldn’t change your life.

I thought if I had a chance in the Deal or No Deal game, I would aim for an amount that would change my lifestyle. For god sake’s, $100,000 is not even enough for down payment these days in NYC. So I would not settle for less than $500,000. Again, I think taxes take about half of the amount off, so I’m really settling for $250,000.
If you were either one of those two contestants, would you have gone all the way? How much of a risk-taker are you? How much would you sell your game for?

Daylight Savings

Daylight Savings begins on March 10, the second Sunday of March this year at 2 am. Don’t forget to push the hour hand on your clock forward one hour. My manager joked that he’s not accepting lateness on Monday because we forget to move the clock forward.

Daylight Saving Time – Saving Time, Saving Energy 

Sunday’s Quote

Wealth is not his that has it, but his that enjoys it. – Benjamin Franklin

Starbucks Coffee Break on March 15 from 10 a.m. to noon

Starbucks is giving out free coffee on March 15 from 10:00 to 12:00 pm in participating stores.

Saturday’s Quote

A bank is a place that will lend you money if you can prove that you don’t need it. – Bob Hope

Book Review: Monkey Business

Monkey Business – Swinging Through the Wall Street Jungle
by John Rolfe and Peter Troob
ISBN 0-446-67695-0
Retail $13.95 US / $19.95 CAN

Monkey Business is a book about two investment bankers’ life stories in investment banking. The stories are expressed explicitly in colorful detail. The authors shamelessly tell us about every thing that happens in their career.

One of my favorite parts are the interviews. Peter goes to the bathroom, which is next to the interview area and after Peter does his business, the odor from the bathroom fills up the whole room during the interview. The interviewers are obviously affected by the smell but they try hard not to be bothered by it. In another interview, Peter is sat in the middle of a huge, long table. Two interviewers sit on either ends of the tables and take turns drilling him with questions. Peter bounces his attention left and right across the two sides of the table like a ping pong ball. Peter knew the company did this on purpose to see how he would perform in this setup. It is a funny scene.

The life of an investment banker is very chaotic. It is not for everyone. You’re working 80-hour weeks and are always on the run. You could be working in New York one day and be in a client meeting in London another day, and then meet another client in Tuscan on the day after.

There are good perks in investment bank, however. You get to fly first class, stay in five star hotels, and go to fancy restaurants. You also make good money, even though you may not have time to enjoy it.

The book talks about the pros and cons of investment banking and all the things that goes on behind closed doors. The book is captivating and easy to read. After reading this book, you will find yourself either loving investment banking or hating it.

Disclaimer: No compensation was received for this review. The contents on the post are entirely opinions of the blogger.

XFML IPO

CLWR’s action today has gotten me worried about the IPO market. I have to confirm my XFML interest today. XFML is priced at $13, middle of its $12 – $14 range. How do you think XFML will react once it opens in the secondary market?