There is a time line for wealth
1) Future Wealth
2) Present Wealth
3) Past Wealth
Future, present & past Wealth? What are they?
Let me illustrate
1) Future Wealth is represented by a young graduate fresh from School. Usually a young man in his mid twenties.
He is still young and yet to buy his own house. He might own an affordable car or just a motorbike.
What has he got? HE HAS HOPE. HE IS FULL OF DETERMINATION TO SUCCEED & FULL OF IDEAS!! But he has yet to make any real monies. His Wealth is Yet in The Future!
This is represented by a very young company. Management is full of ideas, ventures & mergers. Full of energy & hope. Lots of enthusiasm during IPO. See how many write up to promote this newly listed company. Gullible people are chasing. But the stock is yet untested. Business yet to prove itself. All hype and hope for Wealth still in the future!
Calvin rarely invest in this type of company. Better avoid.
Why avoid?
See this
Most Start-up Businesses Fail in the First Five Years, Myth or Reality?
Starting up a new business is proving to be a hard task for most of the entrepreneurs across the business world. The rate of failure within the first five years of business operations is still debatable and is said to be different from one economic zone to another. This is said to be depending on the various internal and external environmental forces operating in different industries. According to Griffith (2014), he postulates that over 60% to 70% of start-ups cannot survive beyond their first five years.
Yes! More than 50% of all new businesses will fail within the 1st five years
That is why Calvin generally avoid buying new unproven stocks. I need at least 3 years after listing to read its yearly Annual Reports before buying. Or else wait or give it a pass.
In real life Established Companies will only look for qualified workers with proven experience & skill with real results or testimonies of good performance from his previous companies. They don't hire you by what you claim. They only hire proven results from skill & qualifications
2) Present Wealth.
Represented by Growing Companies with Proven Income. Usually healthy PRESENT Growth that is visible. This is like a mature man in his 30s to 40s. He has bought his house & car. But the bulk of his monies still invested in his growing business.
So his wealth is still being generated in the present.
This is popular growth stocks.
Calvin will buy some. On one condition. He looks for a fair price to enter. Best is during a market crash or overlooked by the market.
BUT CALVIN WON'T PAY A HIGH PRICE FOR THEM WHEN PRICES ARE INTO OVERVALUATION. IF YOU OVERPAY FOR ANYTHING. CHANCES ARE THEY WILL UNDERPERFORM THE MARKET FOR A LONG TIME TO COME LATER.
3) Past Wealth.
This is an old matured person in his 50s, 60s, 70s or even 80s
He once was a young graduate with Vision. He moved on to be a very successful businessman in his prime. So he has used his earnings to buy lots and lots of Assets like Lands, properties, warehouses, shophouses & other investments of Value. CASH OR EARNINGS CONVERTED TO REAL GOOD SOLID ASSETS - SO HIGH NTA REFLECTED IN BOOK VALUE.
As he is already old he slows down. He takes less risk. He looks for Capital Preservation First with a View to Growth. But usually things are more settled as he is no longer as hungry like he was as a fresh graduate once.
So I avoid buying stocks with "future growth" hype. Selectively buying Present Growth Stock if I SEE VALUE. And love buying into PAST WEALTH STOCKS OF IMMENSE VALUE SELLING AT DEEP DEEP DISCOUNT
I avoid the young man company with hope of future wealth. I will buy some (only selectively) the mature company of present wealth if they sell at reasonable prices. I concentrate on Deep Value Stocks of PAST ACCUMULATED WEALTH SELLING AT DEEP DISCOUNT
Additional comments:
Now there is a Best New Idea
Buying Companies with Past Wealth, Present Wealth & Future wealth: The 3 in One Formula of Best Combination
Where can we find this?
Just discovered
Oil Palm Companies
Most oil palm companies have Past Wealth
Over the years they have bought lands at dirt cheap prices of long ago. Now they are literally sitting on gold mines
Take Bplant for example. It just sold oil palm lands for Rm428 Millions from book value of Rm62 millions for 690% gain/ and what is true of Bplant is also true in Thplant, Jtiasa, Fgv, SOP, Taann, Tsh Resources - all with over 200,000 Acres of highly valuable oil palm estates plus some with Palm oil mills & Refineries, various diversified businesses, Forest concession lands and other Assets of Value acquire through their many years of accumulation.
And now that Cpo prices have crossed Rm4,700 there is Present Wealth
Last year Cpo prices were as low as Rm2,200 a ton. So the Present Wealth has Increased by 100%
Oil Palm has Future Wealth
1) As Food
Palm oil is used in 50% of all Supermarket products
2) As Green Energy
World is turning more and more to Green Energy. From fossil fuel to biofuel
In November 2021 we can expect to SEE Fantastic results from all Oil Palm companies as the Earnings are Real (Right now! Not future hype)
SO THERE IS PAST WEALTH, PRESENT WEALTH & FUTURE WEALTH:
THERE IS ONE MORE.
ETERNAL WEALTH
Jesus said, "What shall it profit a man if he gains the whole world and lose his own soul. Or what shall a man give in exchange for his soul?"
In other words, the wealth of this life is only temporal but there is an afterlife which is far more important - because this life is eternal.
Warmest regards
Calvin
Jurong, Singapore
This article is for information only
Please buy or sell after doing your own due diligence or consult your remisier/fund manager
HARGA BULANAN TEMPATAN PRODUK KELAPA SAWIT
2020 & 2021 (RM/TONNE)
|
PRODUCT |
CRUDE PALM OIL(LOCAL DELIVERED) |
PALM KERNEL(EX-MILL) |
CRUDE PALM KERNEL OIL(LOCAL DELIVERED) |
FRESH FRUIT BUNCHES(1% OER)(EX-MILL) |
RBD PALM OIL(LOCAL DELIVERED) |
RBD PALM OLEIN(LOCAL DELIVERED) |
RBD PALM STEARIN(LOCAL DELIVERED) |
|
PENINSULAR MALAYSIA |
MALAYSIA |
|
MONTH |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
2020 |
2021 |
|
AVERAGE |
2,686.00 |
4,202.00 |
2,685.50 |
4,207.00 |
1,532.00 |
2,573.50 |
3,247.00 |
5,192.00 |
28.51 |
NT |
2,887.00 |
4,285.50 |
2,898.50 |
4,450.00 |
2,975.50 |
4,240.00 |
|
January |
3,015.50 |
3,749.00 |
3,013.50 |
3,748.50 |
1,929.50 |
2,553.00 |
4,129.50 |
5,355.50 |
31.63 |
40.77 |
3,155.00 |
4,052.00 |
3,189.50 |
4,146.50 |
3,116.50 |
4,002.00 |
|
February |
2,714.50 |
3,896.50 |
2,714.50 |
3,895.50 |
1,632.00 |
2,456.00 |
3,319.50 |
4,822.50 |
28.03 |
41.81 |
2,878.50 |
4,094.50 |
2,887.50 |
4,126.50 |
2,866.00 |
3,915.00 |
|
March |
2,383.00 |
4,043.00 |
2,382.00 |
4,041.50 |
1,441.50 |
2,587.00 |
2,882.50 |
5,306.00 |
24.17 |
43.74 |
2,472.00 |
4,080.00 |
2,489.00 |
4,286.00 |
2,560.50 |
4,184.00 |
|
April |
2,302.00 |
4,224.00 |
2,299.00 |
4,220.00 |
1,366.50 |
2,627.50 |
2,870.50 |
5,302.50 |
23.16 |
45.52 |
2,521.00 |
4,359.50 |
2,524.50 |
4,401.50 |
2,646.50 |
4,283.50 |
|
May |
2,072.50 |
4,576.50 |
2,074.00 |
4,572.00 |
1,231.00 |
2,790.50 |
2,538.50 |
5,700.50 |
20.52 |
49.35 |
2,253.50 |
4,910.00 |
2,264.50 |
4,851.00 |
2,270.00 |
4,672.00 |
|
June |
2,413.00 |
3,838.00 |
2,411.50 |
3,830.50 |
1,422.00 |
2,472.00 |
2,951.50 |
5,121.50 |
24.43 |
41.18 |
2,549.00 |
4,216.00 |
2,570.00 |
4,101.50 |
2,471.50 |
4,121.50 |
|
July |
2,520.50 |
4,133.50 |
2,519.00 |
4,128.50 |
1,375.50 |
2,450.50 |
2,778.50 |
4,925.00 |
25.37 |
44.18 |
2,615.00 |
4,443.00 |
2,612.50 |
4,448.50 |
2,504.50 |
4,318.00 |
|
August |
2,818.00 |
4,562.00 |
2,815.00 |
4,555.00 |
1,482.50 |
2,545.00 |
2,980.50 |
5,181.00 |
28.59 |
48.76 |
2,957.50 |
4,823.50 |
3,008.50 |
4,853.00 |
2,905.50 |
4,664.50 |
|
September |
2,924.00 |
4,558.50 |
2,924.00 |
4,556.00 |
1,606.00 |
2,588.00 |
3,174.50 |
5,236.00 |
29.99 |
NT |
3,054.00 |
4,839.00 |
3,104.00 |
4,860.50 |
3,051.50 |
4,598.50 |
|
October |
2,983.00 |
|
2,979.50 |
|
1,624.50 |
|
3,190.50 |
|
30.65 |
|
3,102.00 |
|
3,084.00 |
|
3,152.50 |
|
|
November |
3,436.00 |
|
3,422.00 |
|
2,169.00 |
|
4,317.50 |
|
36.60 |
|
3,536.00 |
|
3,552.50 |
|
3,543.50 |
|
|
December |
3,624.50 |
|
3,620.50 |
|
2,399.00 |
|
4,730.50 |
|
38.96 |
|
3,690.00 |
|
3,721.00 |
|
3,678.00 |
|
Note:
All prices are weighted average / Semua harga dalam purata wajaran
NT - No Trade / Tiada Urus Niaga
PH - Public Holiday / Cuti Am
Any enquiries email to / Sebarang pertanyaan emal kepada
mohd.izwan@mpob.gov.my, firdaus.mnasir@mpob.gov.my, hasnita@mpob.gov.my, khairina@mpob.gov.my, ayat@mpob.gov.my
Last Update : 01/10/2021 13:21 PM
Note:
Highlighted in yellow
2021 Peninsular Palm oil Prices
July ----------- Rm4,133.50
August ------- Rm4,562.00
September-- Rm4,556.00
Average Price of 3 months = Rm4,417.16
With Cost of Cpo production from Rm1,400 to Rm1,600 a ton
Example: Thplant Cost of Cpo production is only Rm1,465 per ton
So Rm4,417.16 - Rm1,465.00 = Rm2,952.16 gross profit per ton
By percentage
Divides Rm2,952.16 by Rm1,465
= 201% Gross Profit
Can any other industry or businesses give you 200% gross profit in Current Time?
So in conclusion:
A Company with past, present & future Wealth is a Healthy Company
calvintaneng
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2022-03-26 10:35