{"id":5,"date":"2014-11-30T09:25:51","date_gmt":"2014-11-30T14:25:51","guid":{"rendered":"http:\/\/www.newlonkong.com\/English\/?page_id=5"},"modified":"2016-10-03T05:36:58","modified_gmt":"2016-10-03T10:36:58","slug":"home","status":"publish","type":"page","link":"https:\/\/www.newlonkong.com\/English\/home\/","title":{"rendered":"Philosophy"},"content":{"rendered":"<audio class=\"wp-audio-shortcode\" id=\"audio-5-1\" loop autoplay preload=\"none\" style=\"width: 100%;\" controls=\"controls\"><source type=\"audio\/mpeg\" src=\"http:\/\/www.newlonkong.com\/English\/wp-content\/uploads\/2014\/11\/AmDerSchoenerDonau.mp3?_=1\" \/><a href=\"http:\/\/www.newlonkong.com\/English\/wp-content\/uploads\/2014\/11\/AmDerSchoenerDonau.mp3\">http:\/\/www.newlonkong.com\/English\/wp-content\/uploads\/2014\/11\/AmDerSchoenerDonau.mp3<\/a><\/audio>\n<p>\n\n<div class=\"ngg-galleryoverview ngg-slideshow\"\n\t id=\"ngg-slideshow-473-18491455400\"\n     data-gallery-id=\"473\"\n     style=\"max-width: 900px; max-height: 600px;\">\n\n \t<div id=\"ngg-image-0\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide01.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide01.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide01.jpg\"\n           data-image-id=\"32\"\n           data-title=\"Slide01\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='32'\n                 title=\"\"\n                 alt=\"Slide01\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide01.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-1\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide02.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide02.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide02.jpg\"\n           data-image-id=\"33\"\n           data-title=\"Slide02\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='33'\n                 title=\"\"\n                 alt=\"Slide02\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide02.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-2\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide03.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide03.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide03.jpg\"\n           data-image-id=\"34\"\n           data-title=\"Slide03\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='34'\n                 title=\"\"\n                 alt=\"Slide03\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide03.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-3\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide07.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide07.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide07.jpg\"\n           data-image-id=\"35\"\n           data-title=\"Slide07\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='35'\n                 title=\"\"\n                 alt=\"Slide07\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide07.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-4\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide09.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide09.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide09.jpg\"\n           data-image-id=\"36\"\n           data-title=\"Slide09\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='36'\n                 title=\"\"\n                 alt=\"Slide09\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide09.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-5\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide11.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide11.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide11.jpg\"\n           data-image-id=\"37\"\n           data-title=\"Slide11\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='37'\n                 title=\"\"\n                 alt=\"Slide11\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide11.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-6\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide13.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide13.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide13.jpg\"\n           data-image-id=\"38\"\n           data-title=\"Slide13\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='38'\n                 title=\"\"\n                 alt=\"Slide13\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide13.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-7\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide15.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide15.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide15.jpg\"\n           data-image-id=\"39\"\n           data-title=\"Slide15\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='39'\n                 title=\"\"\n                 alt=\"Slide15\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide15.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-8\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide17.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide17.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide17.jpg\"\n           data-image-id=\"40\"\n           data-title=\"Slide17\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='40'\n                 title=\"\"\n                 alt=\"Slide17\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide17.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<div id=\"ngg-image-9\" class=\"ngg-gallery-slideshow-image\" style=\"height:600px\">\n\n        <a href=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide19.jpg\"\n           title=\"\"\n           data-src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide19.jpg\"\n           data-thumbnail=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/thumbs\/thumbs_Slide19.jpg\"\n           data-image-id=\"41\"\n           data-title=\"Slide19\"\n           data-description=\"\"\n           class=\"ngg-fancybox\" rel=\"473\">\n\n            <img data-image-id='41'\n                 title=\"\"\n                 alt=\"Slide19\"\n                 src=\"https:\/\/www.newlonkong.com\/English\/wp-content\/gallery\/philosophy\/Slide19.jpg\"\n                 style=\"max-height: 580px;\"\/>\n        <\/a>\n\n        <\/div> \n<\/div>\n\n\n\n<\/p>\n<ul>\n<li>John Maynard Keynes:<\/li>\n<\/ul>\n<p>Markets can remain illogical longer than we can remain solvent.<\/p>\n<ul>\n<li>Warren Buffet:<\/li>\n<\/ul>\n<p>Rule No. 1: Do not lose money.<\/p>\n<p>Rule No.2: Do not forget Rule No. 1.<\/p>\n<ul>\n<li>To invest in individual stocks or the index?<\/li>\n<\/ul>\n<p>In June 2014 we are convinced that the H shares (China State-owned enterprises listed on the Hong Kong stock exchange ) are about to take off. We then invest in both the H index and individual stocks. Now 8 months later, we analyze the results, and find that there is no much difference, click here to see the results (click to see the picture): \u00a0<a href=\"http:\/\/www.newlonkong.com\/English\/wp-content\/uploads\/2014\/11\/IndexOrStocks20150309.htm\">IndexOrStocks20150309<\/a><\/p>\n<ul>\n<li>What do the financial numbers mean for a business ?<\/li>\n<\/ul>\n<p>Return on assets (ROA) : \u00a0this is particularly useful for established businesses . If the borrowing cost is like 7% (such as a corporate bond) , then a ROA like 10% means the business can earn 10% on the operational assets (or total assets), and the business can keep 10% &#8211; 7% = 3%. \u00a0 Then the company management can borrow more money to expand the business.<\/p>\n<p>Return on equity (ROE): \u00a0if the company has no borrowing, then equity is just assets, and ROE = ROA.<\/p>\n<p>As in the above example, when the company borrows money (either from a bank or from issuing bonds), then Equity = Asset &#8211; Loan , so ROE is higher than ROA. It shows how efficient the company management uses capital.<\/p>\n<p>Loan to value ratio (LTV) = Loan \/ Asset x 100% = Loan \/ (Equity + Loan) . It is more conservative to keep it &lt; 30 %. \u00a0If LTV &gt; 60%, the management is engaging a lot of more risk, unless the business AHEAD is going to be very promising and ROA will be high (&gt;10%), the business is risky. Many real estate developers use a very high LTV to expand the business, especially when the property market is booming.<\/p>\n<p>Revenue : \u00a0It should keep going higher and higher each year, otherwise the business stalls and problem comes. \u00a0If it starts to drop consistently , it shows the customers do not like the products and the business is losing steam !<\/p>\n<p>Net profit : \u00a0how much the company earns after a hard-working year .<\/p>\n<p>Net profit margin: \u00a0Net profit \/ revenue x 100% \u00a0shows if the business is a profitable one. If it is below 10%, the business is not a strong one, any change in the business conditions (like price drop, declined sales, interest rates rise, etc. ) may derail the business. \u00a0If it is &gt; 20%, it is very good !<\/p>\n<p>Operational profit margin: this has to be good, better &gt;20%, ideally &gt; 35%.<\/p>\n<p>Cash flow: \u00a0if cash flow is positive, the management has an easy life. When a company invests in R&amp;D or in production capacity, a lot of cash is used, so cash flow may not be positive for a short time. When these activity is reduced (such as a new production line or factory starts to be fully operational), cash flow then will become positive again (assuming the new products are still in good demand and very profitable.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>John Maynard Keynes: Markets can remain illogical longer than we can remain solvent. Warren Buffet: Rule No. 1: Do not lose money. Rule No.2: Do not forget Rule No. 1. To invest in individual stocks or the index? In June<span class=\"ellipsis\">&hellip;<\/span><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/www.newlonkong.com\/English\/home\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"open","template":"full-width-page.php","meta":{"ngg_post_thumbnail":0,"footnotes":""},"class_list":["post-5","page","type-page","status-publish","hentry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/pages\/5","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/comments?post=5"}],"version-history":[{"count":21,"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/pages\/5\/revisions"}],"predecessor-version":[{"id":4355,"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/pages\/5\/revisions\/4355"}],"wp:attachment":[{"href":"https:\/\/www.newlonkong.com\/English\/wp-json\/wp\/v2\/media?parent=5"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}