Johnny has a farm that produces 1000 apples. Johnny thought to himself, if I hold all the apples to myself, the market may look elsewhere for business, especially now when market got many buyers. So johnny thought of a good plan. Why not I subdivide some of the extra apples I don't need and sell it to the market. Afterall, this year got good bonus harvest and now he can see many buyers of apple coming to town. He concluded he just needed to retain the farm and enough apples (say 30%) for my family for future business.
So johnny spoke to some middlemen, and he said, if sell those bonus apples from my good harvest, will you help me to sell? I will sell to you at low price and whatever you sell later, you keep the profit for yourself. Just make sure its sold all eventually! The middlemen agreed. So johnny begin to sell everytime when there are middlemen coming to take stock. So johnny is happy and so are the middlemen concluding the transactions now. They know eventually both of them gonna make tons of money and the market will lap up all his current cheap but quality apples. What market middlemen & buyers gonna do later, is entirely none of Johnny's business. He is going to the dance with the prom queen and Jho Low! The middlemen are happy too. They will get fat bonus cheque from their bosses at year end thereafter. They going to the ballroom dance also with their own escorts. The buyers......lets wait foe the conclusion of the story. Happy ending or not, sama sama kita tunggukan episod yang akan datang. I am especially waiting they do x-file or shark makan theory! Macam macam Ada!
So Johnny continuously go on a selling spree after the initial agreement with the apple seller middlemen, who had helped him arranged the earlier bonus issues and cleverly subdivided his apples into many slices to create more interest and generate more income for themselves later.
Johnnny's other plantation owner friends somehow were puzzled why he was willing to sell his apples at such a low price. They questioned his motive and methodology. Afterall, they said why provoke such a bad image for the whole apple industry?
"My dear ignorant coolies...." replied Johnny. Why would I not want to sell to these middlemen when they are interested? "I am already having so much money to take my prertty lil' Shirley (in his all too typical country slang) to the ballroom dance end of the month as recommended by Jho Low. And the best part is, I still get to keep my money and my farm when the rest of you MBA and PhD ignorant coolies gets to keep your prized apples! "
Moral of the story? I am a better investor because I am a businessman and a better businessman because I am an investor ~ Buffett
"Ahaaa .... but there is a flaw in your calculation, Johnny!" replied one old veteran Cary NC farmer. "Convention wisdom dictates that you hold and wait for the non-apple season to come. The price will eventually go up then due to value and demand! that is the norm how we do business here, young man! "
"Yup, you are right dear sir!" replied Johnny. "But would it not be better to sell now,wait for the middlemen to soon jack up the price, and then eventually whatever small percentage left of my apples will also rise in price rather than to wait it out and miss the chance to take perrtty lil Shirley to the ballroom dance at the end of the month? Won't then for my smaller existing holding of apples to have the same nett then? "
"I guess that's true then young man."replied the southpaw. Pulling the veteran coolie aside, Johnny whispered to his ears, "don't tell anyone, but Shirley's dad is an Eastern Jew. And I had learnt that trick from him! :)
Chart | Stock Name | Last | Change | Volume |
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Created by Tan KW | Nov 25, 2024
Created by Tan KW | Nov 25, 2024
Created by Tan KW | Nov 25, 2024
Created by Tan KW | Nov 25, 2024
Created by Tan KW | Nov 25, 2024
Dear kc Loh
We re waiting for the truth....btw i like it..no a SHIT....hahahah
2013-06-08 15:10
The bonus issue will definately dillute the earning per share (just like the cut apples).. Dividend will be reduced accordingly..
2013-06-14 10:47
after reading the story...a noob has to ask...how many apples he has to sell?...and how small are the apple slices now? =)
2013-08-02 15:44
after finding out that Gan family still holds about 80% of shares, i think still a long while to go! no apple slices yet! :(
2013-08-02 16:38
chieng8182
kcloh got blog?
2013-05-31 20:42