Miniute - EoE Session May 16, 2020
Miniute - EoE Session May 16, 2020
- Three (3) member attended: Eddie(E), James(J), and SD(S)
- Three (3) Articles selected
1. Spring freeze
https://www.economist.com/china/2020/05/02/in-china-millions-of-students-brace-for-joblessness?frsc=dg%7Ce
1. Spring freeze
J: Did you know that stingy Amazon doesn’t have a free cafeteria for their employees, unlike Google. And they charge a lot. But I think Bezos is overall a stoic because he's well-discipline and trying not to spend money unnecessary stuff.
SD: What is your definition of a stoic?
J: It is like I focus on what really matters staying indifferent over unnecessary external factors. Likewise, Amazon focuses its resources on what's essential trying not to waste their valuable resources on extravagant wellfares or perks like Google. In other words, I think it is about humility. You cannot win every battle. So focus on what you can control. Stillness is the key to everything.
We don’t have to feel too frustrated about what's happening in the world just because we think that the world feels like being unfair to us. We cannot control what's uncontrollable. It doesn't make sense if we are angry over the world, just because we don't understand them.
Nietzsche is quoted as saying "when fighting a monster, you should be careful not to become the monster because when staring at the abyss, the abyss is also staring at you".
I personally believe that, although the truth comes in different shapes, the underlying essence of it is basically not different. Many truth-seekers in different areas labelled what they found in their own jargons and words. However, in many cases, those found by them especially indicate the one true nature of the universe or human behaviours.
One day, when I was listening to Amor Fati while running, ‘that’ moment came and I was in tears. By the way, Marcus Aurelius is one of the most famous stoics and I can lend you books like Meditation.
E: The article is about the dark reality of the labour market in China and I wanted to imagine what is going on there. I have some Chinese friends (who can update me with the situation there) but I had to read the articles because I wanted some facts and figures.
(It is important to remember that) China is a precedent when it comes to COVID-19. As they experienced subsidies and government-provided employment related to the pandemic (I think we have to pay attention to China’s case.)
J: Eddie and I went to China for several times, and the college graduates we met in Qingdao were working as part-timers and they were complaining “There are no jobs”.
E: COVID makes me worry about my own future. I am a worker, and I see many workers becoming self-made entrepreneurs eventually.
J: Bought fairly low at bottom. Not buying back now, because prices will bounce back (even more).
These days I am paying attention to multi-disciplinary approaches: Charlie Munger and Latticework Investing.
2. A dangerous gap
E: By now, all listed (Korean companies) reported their Q1 earnings. Samyang Optics report was below expectation, but in market barely moves these days. Banks, insurance companies, Kakao earnings had little impacts.
J: It is all about sentiment, but prices did not move by the earnings (this time). In general, I think Korean and US markets kind of move together. (hence more notable factor)
E: The gap between the market and economy in this article is similar to that of stock prices and earnings. Samyang went down by 6% after the earnings report, (but it was not that bad considering the disappointing operating profit (-8%)). I think Samyang Optics is still expensive and the price may go down further.
J: Hearing from you all these, I think it has got more room to go down.
E: I am looking at SsangYong Cement, (as it appears to have some upside potentials).
J: But I think there will be less construction.
E: (Nonetheless) they are more consistent with their dividend policy than Samyang Optics.
J: Stockholder policy and recapitalization can make companies be healthier, but the bottom line is made by their business. (All in all) I think you made a good decision when you rebalanced your portfolio. We have entered a COVID-era. Earnings are disappointing. (But note that) the pandemic is a lagging indicator.
We are seeing a sharp recovery in the stock market since it is 1900-ish now. But I think it went up too soon, and that looks reckless and too optimistic. Central bank’s quick response and government subsidies are behind this, but COVID can be prolonged, (factor that in as well).
E: So many investors have become too optimistic. I want to sell some US and China stocks in my AssetPlus active fund. It is making some good records, but I am a contrarian.
J: (Are you suggesting there is) too much optimism in US?
J: I wanted to buy Disney, but I missed the opportunity.
SD: Why Disney?
J: Disney’s IP. And contents everlast. Plus, they do not have inventory costs, carrying costs. Yet some loss was there with Disney World closure.
Now is not a time to buy Disney. I wanna see it go down first.
E: How about CJ E&M?
J: Not really. I do not watch K-drama, and like Warren Buffett who invested in Coke because he liked it, I am going to invest in what I like.
E: So will the American dream continue? I want to catch up with K-moves in KBO, movies(Parasite), etc.
J: (Interesting to watch KBO now has overseas viewers).
(In this COVID era,) any company that’s got a tailwind from the pandemic will eventually prosper, considering that consumers generally stick to their choices, or products. Some say this will be temporary, but I am looking at 5-10 year time span, and companies e.g. Market Kurly, Oasis Market, Peloton, Amazon, Coupang, cosmetics.
3. Prognosis: mixed
E: (This article is about) covid’s negative impact on some hospitalsm, and remdesivir is not helping, as it is not a good medicine that can lower fatality.
J: I think it is being used to make the market go up.
E: They(experts) say it usually takes 3-6 months to assess some drug’s efficacy, and chloroquine, used in treatment for malaria, seems to have side effects.
J: The 9th paragraph caught my attention and it says the epidemic is not really profitable. The pharmaceutical industry has been paying attention to (that line of business) for a long time.
In the end, it all depends on human’s ability to develop immunity themselves. Same thing with COVID. And time’s the (other) solution.
E: Social distancing is likely to continue and that looks like why Buffett will sell his airline stocks.
- Three (3) member attended: Eddie(E), James(J), and SD(S)
- Three (3) Articles selected
1. Spring freeze
https://www.economist.com/china/2020/05/02/in-china-millions-of-students-brace-for-joblessness?frsc=dg%7Ce
2. A dangerous gap
3. Prognosis: mixed
J: Did you know that stingy Amazon doesn’t have a free cafeteria for their employees, unlike Google. And they charge a lot. But I think Bezos is overall a stoic because he's well-discipline and trying not to spend money unnecessary stuff.
SD: What is your definition of a stoic?
J: It is like I focus on what really matters staying indifferent over unnecessary external factors. Likewise, Amazon focuses its resources on what's essential trying not to waste their valuable resources on extravagant wellfares or perks like Google. In other words, I think it is about humility. You cannot win every battle. So focus on what you can control. Stillness is the key to everything.
We don’t have to feel too frustrated about what's happening in the world just because we think that the world feels like being unfair to us. We cannot control what's uncontrollable. It doesn't make sense if we are angry over the world, just because we don't understand them.
Nietzsche is quoted as saying "when fighting a monster, you should be careful not to become the monster because when staring at the abyss, the abyss is also staring at you".
I personally believe that, although the truth comes in different shapes, the underlying essence of it is basically not different. Many truth-seekers in different areas labelled what they found in their own jargons and words. However, in many cases, those found by them especially indicate the one true nature of the universe or human behaviours.
One day, when I was listening to Amor Fati while running, ‘that’ moment came and I was in tears. By the way, Marcus Aurelius is one of the most famous stoics and I can lend you books like Meditation.
E: The article is about the dark reality of the labour market in China and I wanted to imagine what is going on there. I have some Chinese friends (who can update me with the situation there) but I had to read the articles because I wanted some facts and figures.
(It is important to remember that) China is a precedent when it comes to COVID-19. As they experienced subsidies and government-provided employment related to the pandemic (I think we have to pay attention to China’s case.)
J: Eddie and I went to China for several times, and the college graduates we met in Qingdao were working as part-timers and they were complaining “There are no jobs”.
E: COVID makes me worry about my own future. I am a worker, and I see many workers becoming self-made entrepreneurs eventually.
J: Bought fairly low at bottom. Not buying back now, because prices will bounce back (even more).
These days I am paying attention to multi-disciplinary approaches: Charlie Munger and Latticework Investing.
2. A dangerous gap
E: By now, all listed (Korean companies) reported their Q1 earnings. Samyang Optics report was below expectation, but in market barely moves these days. Banks, insurance companies, Kakao earnings had little impacts.
J: It is all about sentiment, but prices did not move by the earnings (this time). In general, I think Korean and US markets kind of move together. (hence more notable factor)
E: The gap between the market and economy in this article is similar to that of stock prices and earnings. Samyang went down by 6% after the earnings report, (but it was not that bad considering the disappointing operating profit (-8%)). I think Samyang Optics is still expensive and the price may go down further.
J: Hearing from you all these, I think it has got more room to go down.
E: I am looking at SsangYong Cement, (as it appears to have some upside potentials).
J: But I think there will be less construction.
E: (Nonetheless) they are more consistent with their dividend policy than Samyang Optics.
J: Stockholder policy and recapitalization can make companies be healthier, but the bottom line is made by their business. (All in all) I think you made a good decision when you rebalanced your portfolio. We have entered a COVID-era. Earnings are disappointing. (But note that) the pandemic is a lagging indicator.
We are seeing a sharp recovery in the stock market since it is 1900-ish now. But I think it went up too soon, and that looks reckless and too optimistic. Central bank’s quick response and government subsidies are behind this, but COVID can be prolonged, (factor that in as well).
E: So many investors have become too optimistic. I want to sell some US and China stocks in my AssetPlus active fund. It is making some good records, but I am a contrarian.
J: (Are you suggesting there is) too much optimism in US?
J: I wanted to buy Disney, but I missed the opportunity.
SD: Why Disney?
J: Disney’s IP. And contents everlast. Plus, they do not have inventory costs, carrying costs. Yet some loss was there with Disney World closure.
Now is not a time to buy Disney. I wanna see it go down first.
E: How about CJ E&M?
J: Not really. I do not watch K-drama, and like Warren Buffett who invested in Coke because he liked it, I am going to invest in what I like.
E: So will the American dream continue? I want to catch up with K-moves in KBO, movies(Parasite), etc.
J: (Interesting to watch KBO now has overseas viewers).
(In this COVID era,) any company that’s got a tailwind from the pandemic will eventually prosper, considering that consumers generally stick to their choices, or products. Some say this will be temporary, but I am looking at 5-10 year time span, and companies e.g. Market Kurly, Oasis Market, Peloton, Amazon, Coupang, cosmetics.
3. Prognosis: mixed
E: (This article is about) covid’s negative impact on some hospitalsm, and remdesivir is not helping, as it is not a good medicine that can lower fatality.
J: I think it is being used to make the market go up.
E: They(experts) say it usually takes 3-6 months to assess some drug’s efficacy, and chloroquine, used in treatment for malaria, seems to have side effects.
J: The 9th paragraph caught my attention and it says the epidemic is not really profitable. The pharmaceutical industry has been paying attention to (that line of business) for a long time.
In the end, it all depends on human’s ability to develop immunity themselves. Same thing with COVID. And time’s the (other) solution.
E: Social distancing is likely to continue and that looks like why Buffett will sell his airline stocks.
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