The Selling Strategy

When To Sell?

If you read a book written by some experts covering buying strategies but never touched on selling strategy, your learning are not complete. A good investment gurus will definitely tells you (or teach you) on the importance of selling strategy. Yes, when to sell is just as important as when to buy. I am not an expert and certainly not a guru. But through years of reading and investment experience, I had developed my very own selling rules. So this is my own “when to sell” criteria:

1. When you need money. This should be self-explanatory. The first rule of investment is when you have spare cash that is not needed in the near future. If this assumption does not hold anymore, you should not invest; at least not in stocks.

2. When a counter has been heavily speculated, price surge aggressively not supported by any news. This is a common phenomenon whereby speculators switch their attention to a counter and trade aggressively. And usually you will see that particular company answering to the SGX’s queries with “we do not know any circumstances that could explain high trading volume”. Basically there is no change in the company’s fundamental. In this case, you should sell high and wait for Ms. Market to cool down. You can re-purchase again when the price retreated to a sensible level.

3. When the fundamental of the company you bought changed. This is really from the teaching of Warren Buffett. As a value investor, you invest in a company certainly due to a value in that company and that the price does not fully reflect that value. That’s why you buy its shares. But if the fundamental of that company changed, depending on the situation, usually you have to get out of the company ASAP. If Coca Cola no longer sell coke but hard disk, you got to get out immediately. A good example in Singapore context would be education provider – Informatics. For many years, Informatics enjoys reasonable growth and was well covered by analysts. It was investors’ favourite stock until the expose of its accounting scandal. The education provider’s brand was seriously damaged and student intake fell drastically. One of the mechanics in my company asked for my opinion in terms of investment and education (for his daughter) in this company. Objectively, I advised him to avoid this company whether it is for investment or education. The company’s brand name was the key reason for buying it. If the company losses its brand name, then you should sell immediately.

4. When the economy is on the downturn. If the generally economic, or the global economy is on the downturn (or recession), you must run like hell. With certain exception, if the economy is entering into a recession, you must make sure that you are one of the first to get out. I’ll discuss more on this point later.

5. When existing price fully valued a company. This means that the price reflects the value of a company. The obvious question would be what’s the value of a company, how to measure it. Well this is not easy and can be very academic. Generally people use discounting cashflow on dividends, free cashflow and other formula to assess a company’s value for whatever remaining life, today. This requires prediction of a company’s future growth and performance. It is a highly difficult task with many assumptions and even two analysts using the same formula may produce different answers. So usually I use other easy method that kill lesser brain cells. For example, I use PE ratio to determine if the company is over-priced. Another situation would be when you buy a company because of a catalyst, and when the price adjusted for that catalyst, generally you can sell it.

When The Economy Is On The Downturn

This is a more interesting topic and I like to talk more about it. My approach to investment is always to look at the generally economy, local and global. We like to invest long-term but not that kind like Warren Buffett because we are a bunch of poor little retail investors. So we must look at the business cycle. When the business cycle is on the recovery to its peak, generally, you will make money in most of the companies you purchased. Think about it again. You are sure to make money by mid-2007 if you buy in almost any company listed in SGX in 2005. You don’t need any analytical skill but just throw your dart on the list of listed companies. Even laggard stocks like the construction companies that hardly move until 2006, can create miracle. Most of them surged aggressively from end 2006 to mid-2007 ensuring that your average uncompounded annual returns is about 30% (I don’t have statistics here).

Now the same rule applies. If the economy is on the downturn, in the mid term, your portfolio will surfer a loss. Although a small group of companies can still outperform (I will cover in another write-up), the problem is that can you spot these and only these companies? Are you that good and lucky. I am afraid most of the time we are not. That is why if the economy is on the downturn, you really must run away from the equity.

“So what’s your opinion on the global economy now?”

Since November this year, or after the exposure of US subprime problem, I had been quite pessimistic about the generally economy. Together with rising oil prices, and that US is one of the highest consumers of oil; I think we have more bad news. It is extremely difficult to predict the future economy but if you ask me to place a bet with all my savings, I will bet that the US economy is on the downturn. This is simply the logic of probability. There is just more bad news than good ones. And we all know that if US economy goes down, she will drag everyone down especially Singapore (being an export country to mainly US and Europe). So if my assessment is true, which we will know very soon, then we are heading to a downturn or to put it clearly, a recession. When will that take place? God knows! But this is my assessment:

We had just passed the peak (or the tip) of the business cycle!

Conclusion

If you have been following my blog, you should recall that I mentioned that the stock market is a leading indicator of the economic movement. Yet it is highly difficult to predict the global economy. But we have to try. Based on what we know to-date, I am definitely not bullish. I believe that we had just crossed the peak and we must be prepared – for the worst. I had advised my friends to start looking at bonds which I had covered extensively in my blog. I don’t mean that you should damp everything away today and switch all your money to bonds. But certainly you should start getting defensive on equity and study the bond market. I am afraid that one of my selling rules has emerged. And I write this blog today to mark my analysis so that my judgment may be judged in the future.

STI Movement Nov 2007

The Days After Tomorrow

On 27 Nov, I returned to my office after a long weekend. If not because of the series of unfortunate events, I should be at Boracay Island now. But actually all my friends and colleagues were supportive instead of been sarcastic. I went out with ex-army friends during the weekend. He told me that, after reading my blog on “My Worst Holiday”, he would have make the same decision if he is in that situation. In my office, a few colleagues encouraged me that my friend in Manila would understand the agony I gone through; reconciliation would not be an issue.

And yesterday, TV Mobile on SBS bus reported that Typhoon Mitag killed 22 Filipinos. But if what Joshua told me is true, he will not be affected. According to him, Boracay Island is surrounded by islands thus having similar strategic location like Singapore. Based on the original schedule, we should be spending three days (26 – 28 Nov) in Boracay Island.

This evening, while I was on my way back home, the TV Mobile in SBS bus reported another shocking news – the army stormed a Manila hotel held by the rebels. Now this is really upsetting. The bad news from this country just keeps coming up none-stop. According to our original schedule, we should have leave Boracay Island on 28 Nov and spend two days at Sonya’s Garden. So I hope that Joshua and his family didn’t head back to Manila. But even if they did, most probably they are staying in another hotel not occupied by any rebels.

I actually thought of calling Joshua but I knew that he does not turn on his mobile phone during his holiday. Besides, I really don’t know what to say if I call him. This is because I might be perceived to be sarcastic because my instinct is, in a way, quite correct. I had emphasized many time that I don’t have the peace for this trip. In any case, I serious don’t think that anything could happen to Joshua and his family. This is because he is very familiar with The Philippines and he knows how to get help from our embassy if there is a need. We have a friend currently working in our embassy in Manila.

As for me, with this experience, I am not sure if I would ever visit Philippines unless the government is able to establish political stability. Notwithstanding the probability of future visit to Philippines, I still need to prepare a thousand dollar cheque for the damages when Joshua returns from his holiday. The damages can only be alleviated if he is able to change his hotel room. And I hope for the best.

Monkey-See-Monkey-Do Strategy

Follow The Experts

Does following experts blindly yield lucrative returns, or even beat the index? I remember some time last year (or the year before), there was article in the Business Times reporting that local investors enjoy high returns by simply following behind Temasek Holding's investment actions. According to the report, whenever Temasek invested in a listed company, you just follow, no question asked. At the end you still make relatively high returns (I don’t have the figure with me, need to find that article). Some of you may be able to recall such article.

So is monkey-see-monkey-do strategy works? In my opinion, it definitely will as long as:

1) You do not speculate
2) You follow, even blindly but the correct experts

Point 1) above is important because if you speculates and try to follow blindly, in my opinion, you will end up contributing to the “experts” you followed. But for value investment, which takes time to yield the expected result, it’s ok if you follow the right experts.

On 17 Nov 2007, there was a wonderful article on the Business Times further reinforce that monkey-see-monkey-do strategy does work – if you follow Mr Warren Buffett. When Warren Buffett bought PetroChina in 2003, my course mates and myself were aware of it and wanted to follow him. So what’s stopping me?

1) After Warren Buffett’s investment in PetroChina, its share price surged a bit….I was unhappy about it.
2) To buy Hong Kong stock, which I am not really familiar with, I will incur custodian fees. I don’t really like the additional cost especially when I am not buying large quantity.

Unfortunately, I was wrong. Warren Buffett makes big bucks from PetroChina. And if I followed blindly behind him, I am sure I will also make that kind of money. So we can use monkey-see-monkey-do strategy but do intelligently; at least follow the right experts.

The following is an excerpt of the article in Business Times. Enjoy.


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Business Times - 17 Nov 2007

Even a monkey can get 24% with this investment formula

Investors could beat the S&P 500 just by imitating Warren Buffett's trades

(NEW YORK) Buying whatever billionaire Warren Buffett bought, often months after his share purchases, delivered twice the return of the Standard & Poor's 500 Index during the past three decades.

Investors would have earned an annual return of 24.6 per cent by buying the same stocks as Mr Buffett after he disclosed his holdings in regulatory filings, sometimes four months later, according to a soon-to-be-released study by Gerald Martin of American University in Washington and John Puthenpurackal of the University of Nevada, Las Vegas.

The S&P 500 rose 12.8 per cent a year in the same period.

'A monkey would have beaten the pants off the S&P 500 by following Warren's buying and selling,' said Mohnish Pabrai, who manages US$600 million at Pabrai Investment Funds in Irvine, California.

Mr Pabrai and a friend paid US$650,100 this year in an annual charity auction to lunch with the 77-year-old Buffett.

Mr Buffett's stock picks outperformed his Omaha, Nebraska-based Berkshire Hathaway Inc from 2002 to 2006 when Berkshire shares advanced at a yearly rate of 7.8 per cent.

By comparison, Berkshire holding USG Corp, the biggest maker of gypsum wallboard in North America, increased about 1,140 per cent and PetroChina Co, China's largest oil producer, soared eight-fold.

Mr Buffett built Berkshire Hathaway during the past four decades into a US$200 billion company with businesses ranging from ice cream and bricks to insurance and corporate jet leasing.

Berkshire had US$77.9 billion invested in stocks at the end of September, according to a filing with the US Securities and Exchange Commission.

The company's shares closed on Thursday at US$135,300, the highest price on the New York Stock Exchange.

My Worst Holiday

Today, I am going to share my worst holiday, something unrelated to investment management. I jot it down here partly to apologise to my best friend Joshua and his wife Lessie for the most unfortunate event. The damage was severe.

At The Beginning

Somewhere in mid-2007, during an old-buddies gathering, one of my “brothers”, Joshua, revealed that he and his family will be going to Manila In Nov for visits and holiday. Joshua was previously posted to Manila and spent a few years there. So he is very familiar with the country. Instantly I expressed my interest since I had been deprived of distant travel for couple of years. Another brother also expressed his interest. A few months later, this brother decided not join us as his wife just gave birth to a baby. But I was determined to go according to plan. In Oct, I visited Joshua new home to discuss on itinerary. The plan was as follow:

Duration – 14 days (24 Nov to 7 Dec 2007)
Place to visit – Boracay Island, Sonya's Garden and Manila City
Initial budget - S$2,000

But Joshua and his family will flew off a few days earlier for visiting purposes. And they will pick me up at the airport upon my arrival. As safety was always my first concern, I choose to fly on SIA instead of any other airline especially budget airline. While budget airline cost less than S$200, SQ will cost me S$650. But I accept it. This is the first time I am flying alone and I am set to go.

During The Last Month

In early Nov, local news reported a bomb blast in Manila. I was shocked and disappointed although I already knew The Philippines’ always has security issue especially at the southern part. But I still take the courage to ignore it. The reason was because they don’t get bomb blast everyday and everywhere. With proper safety measures, it should be fine. For example, avoid loitering around hotel lobby or shopping mall entrance. Anyway, since Joshua is not worry at all, there is no reason I should. In fact, I go around joking with colleagues that if a bomb hit me, then it is God’s will – if it is my time, it is my time!!!

I visited Joshua again to do my budget. I am an analyst, I am a finance guy and I never believe in “no plan is best plan”. However, when we sat down to do the figures, I was shocked to discover that I have to up my budget to S$3,000 - S$4,000 mainly due to long period of hotel stay. Spending more than S$3,000 in The Philippines will make me a laughingstock. I might as well go to Australia or even Japan. But Joshua assured me that, although I need to up my budget, S$3,000 is guaranteed to be sufficient. So I booked my air-ticket while Joshua booked all hotel accommodations at various locations.

The Day Before Tomorrow

On 22 Nov night, I packed my luggage and I am all ready. I checked in my flight through the internet before I sleep. On 23 Nov morning, I was having breakfast with colleagues and they broke the news to me – there was another bomb blast at southern part and Typhoon Mitag is expected to land during the weekend!!!!!!!!! All these were report the night before (I did not watch TV).

You cannot imagine the shock on my face. I had stayed positive even with previous hiccups. But now, this is really too much to bear. Around 0830hrs, my colleagues forwarded to me the news report in the office. According to the report:

- The typhoon is coming and the soldiers are evacuating hundreds of thousands of people who live around the danger zone.
- Typhoon speed estimated 100km/h, almost speed of our cars along PIE.
- Arroyo is leaving Singapore ahead of schedule to prepare for the typhoon.
- Last year Nov, the typhoon killed thousands people.

On reading this news, I could not function properly in my office (luckily my boss understand). Quickly I send SMS to Joshua who is already in Manila with his family. There was no response after two SMS and I started asking for advice – colleagues, some friends at MINDEF. There are basically two schools of thought:

1) “If all along you do not have the peace, and together with this news, you should trust your instinct and following your feeling. After all, your life worth more than S$2,000 (air-ticket plus hotel) and sometime, you have to believe in your gut feel.”

2) “There should not be a problem since your friend is already there. Otherwise he would have called you. In any case, Philippines is big. Just go and don’t think so much. If it is really your time, it will happen no matter where you are.”

I started calling Joshua but could not get through the line. The anxiety inside is about to kill me. The feeling is that I am not going for holiday; I am preparing myself for a war. I called SIA and was told, luckily, that I can refund my ticket with S$75 admin charges. But I should make my decision one day before departure. Since my departure time is 0945hrs the following day, that means I need to make a decision in one hour time. There was still no respond from Joshua, and there are two schools of thought, I almost breakdown.

Critical Decision At 1000hrs 23 Nov 2007

A critical decision is urgently needed. I was forced to assess/analyse alone.

1) The typhoon is worst than bomb blast. While bomb blast is random and occasional, typhoon is not. Nobody expected Tsunami to be that devastating. Assumption is the mother of XXXX.

2) Chances for typhoon to disappear suddenly should be remote especially when we are at the end of the year. I assessed that it will not disappear suddenly.

3) The visit to Boracay Island is most probably impossible. I think the island is facing South China Sea. We need to take an internal flight first and then to cross to the island by boat. Both these mode of transports are dangerous with typhoon. Even if we somehow get to the island, it is almost 100% impossible for any sea activities like diving or jet skiing. I assessed that the most important destination – Boracay Island is out.

4) Under such poor weather condition, I assessed that terrorist has no plan for any homemade bomb.

5) Assuming that Typhoon Mitag really spend its holiday with us, then the most likely outcome is that we may be grounded in Manila hotel for 14 days.

I could not wait for Joshua’s respond anymore but to perform damage control. At around 1000 hrs, I called SIA to request cancellation of flight and asked for a refund. And it was done. Then I cancelled all my annual leave and re-applied by spreading them into different days. I have leave balances that I must clear by end of this year or else it will be forfeited.

2nd Chances?

I don’t believe that this is happening to me. I still try to call Joshua but there was no response. At 1230hrs when I was going for lunch (actually no mood to eat), I send another SMS and this time, Joshua called back! He was shocked of the outcome like he missed the whole part of 2nd World War. Joshua swears that he did not receive any SMS or missed call from me in the morning until a minute ago. He assured me again and again that it is a sunny day there right now. He said that The Philippines is very big and the typhoon does not cover the whole country. He assured that the trip will be relaxing and enjoying and even if I still wish to head back early, he will send me off and covers the remaining hotel expenses. He wanted me to undo everything!!!!!

This is really madness! To undo everything, I got to get my boss involved (cancel the new leave application and re-apply again) and SIA involved (try to revive the air ticket again with possible admin charges). But this is not the most important question. The most important question is after all these worries which actually started with the first bomb blast, is it an indication that I should not go against “HIS” will? And if I go against HIS will, I may have to pay for it…. with my life? Why I just couldn't reach Joshua in the morning before I was forced to make a decision alone? One thing for sure, I have no peace! Joshua sends a few more SMS to calm me down but was not successful. I also called SIA to check whether it is possible to undo everything. The SIA girl replied that she need to check since my request in the morning has been processed. I told her don’t bother as I am still “unconscious”.

Everything was in a shit mess! I decided to get last word of advise from wise man - my boss. He was very accommodative in terms of undoing all my leaves application especially with that kind of assurance from someone (Joshua) I trust. But he wanted me to make a decision based on this question:

“If tonight the news report the typhoon get worst and perhaps there are casualties, would you change your mind again? Or whether there is any possible chance that you may change your mind again? If you do this too many times, it’s really not going to be a nice things to do”

At the same time, with excellent service, SIA staff knew that I am hesitating and called me to offer their help. According to them, although they are processing my refund, they can stop it but I must make a final decision ASAP. By tomorrow morning if there is no decision, then I have pay a penalty fee. I promised to call back ASAP.

The Last Hour

I gave myself another half an hour to calm down and think through. There are only two options:

1) Let my friend and his family down and reconcile when they are back together with thousand dollars cheque for damages.

2) Undo everything and to go with the fear in my heart. I will incur full budgeted costs and… hopefully I return alive.

I chose option 1).

I called SIA again to confirm my refund request and apologise for the trouble I created. I confirm with my boss that I will not re-apply my leave again. And then I send the most difficult SMS in my life; to tell my friend that I had thrown in my towel and I will not retract. Then my boss called me in to do my year-end appraisal. This is the first time I am so quiet, inactive and kept looking at the table while doing the appraisal. I believe he understands.

In the evening on my way home, Lessie SMS me that she still hope that I can join them. But now there is no chance I will retract. It is ok to make one mistake but not two. If I continue to be indecisive, I will only create more problems and that my boss may be disappointed with me. I apologise again and commit to pay for the damages if they are unable to change the hotel room.

Lesson Learnt

I established new criteria for any subsequent holiday:

1) Never to go for holiday between November – January.
2) Never plan for long holiday like 14-days in regional countries unless I am going to Europe.

-

My worst holiday.....sigh.... I didn't even get the chance to board my plane.

Warren Buffett's Teaching - Goes Beyond Stock Investment

Value Investment – It’s True Value

If anyone asked me the best book I ever read, that would be “Essay of Warren Buffett”. I read this book somewhere in 2002 which totally changed my approach and strategy in investment management. The book covers Warren Buffett’s approach in investment analysis and some technical concepts. But if you only read the book and never put it into practice, you gained nothing. You must put it into practice. And this is always the problem with many people; they read self-enrichment books like any storybooks such as Lord of the Rings.

Last year, one of my colleagues was complaining about our job (again) and that he says that likes to read books. Out of curiosity, I asked him if he have read Robert Kiyosaki’s “Rich Dad, Poor Dad”? He couldn’t remember initially, but finally recalled. I continued to ask him for his comment on the book, and whether the book changed his life in any way? He replied “ok lah, it’s a good book, nothing much lor”. I smile and changed the subject. That was an expected but disappointed answer. He read the book like any storybooks – no wonder it took him sometime to recall.

Whenever I lent a self-enrichment book to a friend or colleague, I always tell them beforehand not to read it like a storybook. Instead they are to understand it, appreciate it and try to relate it to their current situation. Buying self-enrichment book is an investment; we should expect a return from it. If you need a storybook, go to library and borrow for free.

Impact Of Reading Essay Of Warren Buffett

After I read Essay of Warren Buffett, I immediately put it into practice. I totally change my approach and strategy in stock investment. I start to analyse company’s annual report and evaluate those figures vigorously. I also use Warren Buffett mindset to question certain figures and corporate announcements. For example, many companies frequently announce to market that it has plans to do this and that. Or that it believes that it can sustain growth by certain percent. Or it targets to maintain certain profit margin or market share etc. But after applying Warren Buffett’s approach, I always disregard this kind of empty promises. On the newspaper, you can also find many analysts writing reports on companies and like to use motherhood statements such as company so and so is expected to clinch so much contracts, or expected to benefit from industrial growth, or pursuing active for mergers and acquisitions etc. I will throw this kind of report immediately into the dustbin.

So what have I actually learnt from Warren Buffett? A few months ago when I attended a seminar conducted by a land banking company, I use exactly the same mindset/approach when I asked critical questions to evaluate its business (you can find it in my archive). If you invest in anything, check for its real (or intrinsic) value. Check the facts and double checks again. The word “expecting” or “target” has zero value. But “signed million-dollar contract" has good value. Also when we study a company’s fundamental, focus on company’s cashflow and not on items that can easily be manipulated. What else have I learnt? I also learnt to overcome greed and fear. If you think that this is pure commonsense and going to rebuke me, don’t! I can show you tonnes of examples on how people got cheated or loss lots of money because of greed and fear. I was once one of them. Commonsense.... my ACCA lecturer used to say that “commonsense is the least common human attributes”.

So Warren Buffett’s teachings not only make me a winner in stock investment but also equipped me with the skill to evaluate any investment objectively. Everyday, there are someone in another part of the world coming up with new investment scheme to “make money”. Some may be genuine while others are scams. I like to ask all readers of my blog, how do you:

1) Differentiate between a genuine investment and scam?

2) For genuine investment, how do you evaluate its risk and return?

If you are hoping that in this article I am going to share the answer with you, you are going to be disappointed. It is not that I am stingy in my sharing, but that this is a huge topic. I can only share with you my experience for a start. To be that good in the above two points, you must keep reading, learning and practicing.

My Approach To Sunshine Empire’s Scheme

I had previously shared my experience on Sunshine Empire in my blog. I never jump to any conclusion; I never allege that it is a scam. But based on what I learnt from Warren Buffett, I am able to evaluate the scheme objectively (point 2 above). Last Saturday, I went back to office to finish a report for Monday. One of my colleagues was working on shift then. She came to me and then suddenly we talked about Sunshine Empire again. It’s a hot topic now. She asked for my opinion. The following is what I shared with her:

1) I discovered that many retail investor, aunties and uncles are seriously lacking of fundamental knowledge in investment evaluation. I am talking about really simple knowledge.

2) If you want to invest in any scheme or products, you must first understand how it generates the income and whether it is sustainable. Preferably, we want to see growth of course.

3) You should never be convinced by PowerPoint slides, pictures or video clips on company's assets and finance. You must obtain assurance by somebody trustworthy which, in an unfortunate event, you can hold him/her responsible if there is negligence or fault. This “somebody” must be qualified and independent. For example, it must be a lawyer, external auditor, independent property evaluator etc. This qualified professional must sign on his report and you must see (and even obtain a copy) of such black and white. Preferably, get a copy of Sunshine Empire’s annual report together with the external auditor’s report.

4) We must be satisfied with all the questions on risk before even talking about return, regardless of the rate. I meant what’s the point of talking about return if you cannot ascertain or manage risk? If risk is not an issue so long the return is very high, then a casino would probably solve everything. There is a chance to earn 100% return in every minute if risk is not an issue! Sunshine Empire certainly cannot provide such return.

5) I told her to first overcome greed if she wants to protect herself forever from all tempting schemes. Of course that does not means that we should become so timid that we place all our savings with the bank. With higher expected inflation next year, you may even incur a loss (in value of money) even if you save your money in fixed deposit.

6) Do not succumb to hard sales tactical. There is no such nonsense as “this opportunity comes only once in a lifetime and valid only for three days” etc. Anyone making this statement, give him/her 50 cents to buy a kite – to fly.

My colleague continues to ask me if there are better investments that come with low risk but reasonable return, at least higher than the inflation rate. I shared with her a few products such as bonds which I had covered intensively in my blog.

So is my approach to Sunshine Empire’s scheme correct? If you read The New Paper on Sunday (18 Nov), page 12 – 13 gives some updates.

1) The press check with the relevant authority in Taishung, Taiwan, found that Sunshine Empire’s affiliate Emcom is not in partnership for the wireless broadband business. Emcom has never contacted them on this project.

2) Malacca theme park. The paper reported that Malacca City Council did not receive any such proposal.

Lacking Basic Knowledge In Investment Evaluation

So I found many aunties and uncles (and sometimes young men) seriously lacks very basic skills in investment evaluation. And I am not talking about reading annual report or legal document. I am talking about not knowing how to “get the facts correct”. And they actually believe that someone is there to help them to reach financial freedom. I asked one of the Sunshine Empire’s partners on why would the founder wants to share such lucrative returns? He could have borrow from the bank cheaply and keep all the remaining. I mean if their investment yield approximately 10% returns a month, the founder could have borrowed from the bank at less then 10% cost a year! The answer given to me was “the company wants to share wealth with commoners instead of bankers”!

I didn’t know Jesus walks the earth again! If anyone can believe such statement, he/she is not naïve – he/she is stupid at an unbelievable level. Perhaps I should start a course on basic investment evaluation.