though i might have procrastinated yet again,it's because i was busy slacking away my time.
Alright, during cny, i met up my cousin who's a banker over with some bank. He mentioned to me he is no longer the one giving loans, rather the banker who gets people to invest with him.
I am like, interesting, tell me more about your invesments. And he mentioned about the market doing badly, only a handful is willing to invest, but the type of investment he mentioned wasnt investment in my eyes. It's more of speculating what the market would be like in the future. Its like you put in 20k with the banker, he invest for u, he loses that amount of money, the client comes up with another 40k to play, so on and so forth.
Totally doesnt make sense to me, as he seen people losing and failing before. so why do more idiots come forth to lose more money to the market? Or is it simply human nature to just want to gamble and make the next bet...
Saturday, January 31, 2009
Monday, November 17, 2008
Second step to financial success!
I must say I have been procrastinating lately to do a lot of stuff. Other than the stories I have added on my blog to hopefully inspire you people. Some of you might prefer the practical approach to investment, other than the hardcore saving part.
First and foremost to begin any investment, I truly strongly believe that everyone is to be well insured and covered by insurance. By saying insurance, I meant only using it to cover you upon death or accidents. Upon death, your family might be losing a part of income which you could be providing them with, accidents are the worst off, hospital fees as we all should know, are killers. The bills usually amount to the sky for long term hospitalization. I preach what I said and what I believed in doing, my dad got me life insurance which I don’t think is enough due to my dangerous activities at times, so I get another term insurance which basically covers death from my secondary school friend, Shu Yang, he is really great and dedicated in introducing me the plans which I will need, instead of selling for the sake of selling. I will strongly recommend anyone without coverage to him Contact Shu Yang at 94355641.
First and foremost to begin any investment, I truly strongly believe that everyone is to be well insured and covered by insurance. By saying insurance, I meant only using it to cover you upon death or accidents. Upon death, your family might be losing a part of income which you could be providing them with, accidents are the worst off, hospital fees as we all should know, are killers. The bills usually amount to the sky for long term hospitalization. I preach what I said and what I believed in doing, my dad got me life insurance which I don’t think is enough due to my dangerous activities at times, so I get another term insurance which basically covers death from my secondary school friend, Shu Yang, he is really great and dedicated in introducing me the plans which I will need, instead of selling for the sake of selling. I will strongly recommend anyone without coverage to him Contact Shu Yang at 94355641.
Part 4
Harry Sonneborn came up with a solution, he thought McDonald’s could make money by leasing or buying potential store sites and than subleasing them to franchisees initially at a 20% markup, and then at a 40% mark up. Under this plan, McDonald would scout out sites and sign 20 year leases at fixed rates. Franchisees would pay McDonald’s either a minimum rate or a percentage of sales, whichever was greater. As sales and prices inevitably rose over the years, due to inflation and consumer price index, the company would collect more and more rent as its cost remained virtually constant.
Kroc set up a subsidiary, the franchise realty Corporation, to execute this strategy, flying around the country in a small airplane scouting suburban neighborhoods dotted with tract housing, schools, and churches which he regarded as fertile ground for the planting of new “Golden Arches.”
Kroc set up a subsidiary, the franchise realty Corporation, to execute this strategy, flying around the country in a small airplane scouting suburban neighborhoods dotted with tract housing, schools, and churches which he regarded as fertile ground for the planting of new “Golden Arches.”
Saturday, October 18, 2008
McDonald's story part 3
Although McDonalds’s franchises sprouted up across the Midwest and west like wildflowers after a spring rain the company’s success appeared to be short lived. While the original deal he had struck with the McDonald brothers endeared Kroc to early franchisees, it also set his fledgling enterprise on a direct course to insolvency. Thorough 1960, when the chain’s restaurants racked up $75million in sales, McDonald’s earnings were a mere $159,000. “In short Kroc’s concept for building McDonald’s was financially bankrupt”.
Unable to give valued employees like Martino and Sonneborn raises, Kroc paid them by granting them 30 percent of the company. He further diluted his equity by ceding 22 percent of McDonald’s stock to 2 insurance companies to get a 1.5million loan in 1961.
Even this loan, obtained at remarkably onerous terms, only temporarily slaked the firm’s thirst for capital: he needed to raise a huge sum of 2.7million to buy out the McDonald brothers. His relationship with them was a source of irritation as they did not meet his precise standards at the McDonald’s franchises they had sold in California. Kroc realized the value of product identification created by the more than 200 outlets bearing their name. “I needed the name,” kroc lamented. “How far could I go on Kroc burgers?” He mortgaged the company’s future and received the 2.7M.
Unable to give valued employees like Martino and Sonneborn raises, Kroc paid them by granting them 30 percent of the company. He further diluted his equity by ceding 22 percent of McDonald’s stock to 2 insurance companies to get a 1.5million loan in 1961.
Even this loan, obtained at remarkably onerous terms, only temporarily slaked the firm’s thirst for capital: he needed to raise a huge sum of 2.7million to buy out the McDonald brothers. His relationship with them was a source of irritation as they did not meet his precise standards at the McDonald’s franchises they had sold in California. Kroc realized the value of product identification created by the more than 200 outlets bearing their name. “I needed the name,” kroc lamented. “How far could I go on Kroc burgers?” He mortgaged the company’s future and received the 2.7M.
Monday, October 6, 2008
The recent events
This is an emergency write up for everyone, does anyone of you take notice of the US market, I been on and off it for a while and I long believe it has sink into recession. During the war with Iraq, the amount of money spent on producing weapons and supplying the army already causes the country to run on deficit. Unless they make use of Iraq’s Oil quickly to their benefits, where on earth are they going to come up with 700 billion dollars?
The world is round, so is businesses, it’s all thanks to the generosity of US consumers that we in Singapore can run businesses, manufacture products to be exported to them. They mostly live on credit I presume or else how do they afford luxuries which were not known to 3rd world countries. Guys do let me know whether you agree with me, is it not because they overspend and they run out of a job suddenly, were they unable to pay their mortgages otherwise all will still be peaceful. Continuing to pay on time to the banks which will also continue to pay fat bonuses for their top bankers?
In another light, if the US does not consume these products who on earth are we going to export our products to? I guess it’s a pretty vicious cycle; we need their spending power to propel our economy in a way.
In conclusion, why not just spend wisely for now, if you do have a huge cash reserve it could be around time to spurge on investment products or buying a few properties. When the market gets better again you can make your profits than.
The world is round, so is businesses, it’s all thanks to the generosity of US consumers that we in Singapore can run businesses, manufacture products to be exported to them. They mostly live on credit I presume or else how do they afford luxuries which were not known to 3rd world countries. Guys do let me know whether you agree with me, is it not because they overspend and they run out of a job suddenly, were they unable to pay their mortgages otherwise all will still be peaceful. Continuing to pay on time to the banks which will also continue to pay fat bonuses for their top bankers?
In another light, if the US does not consume these products who on earth are we going to export our products to? I guess it’s a pretty vicious cycle; we need their spending power to propel our economy in a way.
In conclusion, why not just spend wisely for now, if you do have a huge cash reserve it could be around time to spurge on investment products or buying a few properties. When the market gets better again you can make your profits than.
Thursday, September 25, 2008
Ray Kroc part 2
As a milk-shake machine salesman, Raymond Kroc routinely paid visits to clients. Anything but routine when he visited 2 of his biggest client in southern California, Maurice and Richard McDonald.
While most restaurant than bought 1 or 2 Prince Castle multi-mixers, which could mix 5 shakes at once, the Mc purchased 8, and Kroc was curious to witness what sort of operation required the capacity to churn 40 milkshakes at one time. What he saw changed his life, he watched the male crew, clad in white paper hats and white uniforms, hustle about the squeaky clean restaurant dishing out burgers, fries, and shakes to the working class families that drove up. The McDonald brothers brought efficiency to a slap-dash business. They offered a 9 item menu- burgers, fries, shakes and pies, eliminated seating and used paper and plastic utensils instead of glass and china. The Mc had devised the rudiments of a hamburger assembly line so that they could deliver orders in less than 60 seconds. The prices were remarkably low!
Raymond persuaded and cut a deal with the brothers: Kroc would sell McDonald’s franchises for the price of $950; in exchange he will get to keep 1.4% of all sales and channel 0.5% back to them. Because franchisees kicked back such a meager percentage of total sales, just 1.9 percent, the corporate parent made very little money.
This arrangement was far more advantageous to the Mc’s than to Kroc, for that small slice of revenues would have account for Kroc’s overhead and marketing costs and profits. But it was the act of a desperate man. Kroc made 12k a year from mulit-mixer sales and it was marked for extinction due to heavy competition from another brand. Too old to start again from scratch, the middle-aged salesman believed the comfortable existence he and his wife, Ethel, would vanish if this venture failed. “If I lost out on McDonald’s, I will have no place to go,” He said.
While most restaurant than bought 1 or 2 Prince Castle multi-mixers, which could mix 5 shakes at once, the Mc purchased 8, and Kroc was curious to witness what sort of operation required the capacity to churn 40 milkshakes at one time. What he saw changed his life, he watched the male crew, clad in white paper hats and white uniforms, hustle about the squeaky clean restaurant dishing out burgers, fries, and shakes to the working class families that drove up. The McDonald brothers brought efficiency to a slap-dash business. They offered a 9 item menu- burgers, fries, shakes and pies, eliminated seating and used paper and plastic utensils instead of glass and china. The Mc had devised the rudiments of a hamburger assembly line so that they could deliver orders in less than 60 seconds. The prices were remarkably low!
Raymond persuaded and cut a deal with the brothers: Kroc would sell McDonald’s franchises for the price of $950; in exchange he will get to keep 1.4% of all sales and channel 0.5% back to them. Because franchisees kicked back such a meager percentage of total sales, just 1.9 percent, the corporate parent made very little money.
This arrangement was far more advantageous to the Mc’s than to Kroc, for that small slice of revenues would have account for Kroc’s overhead and marketing costs and profits. But it was the act of a desperate man. Kroc made 12k a year from mulit-mixer sales and it was marked for extinction due to heavy competition from another brand. Too old to start again from scratch, the middle-aged salesman believed the comfortable existence he and his wife, Ethel, would vanish if this venture failed. “If I lost out on McDonald’s, I will have no place to go,” He said.
Sunday, September 21, 2008
Ray Kroc part 1
In 1954, Ray Kroc was 52 year old milk shake machine salesman, saw a hamburger stand in San Bernardino California, and envisioned a massive new industry: Fast Food. He revolutionized the American restaurant industry by imposing discipline on the production of hamburgers, French fries, and milk shakes. By developing a sophisticated operation and delivery system, he insured that the French fries customers bought in Topeka would be the same as ones purchased in San Diego. Such consistency made it the brand that defined American Fast Food.
His is quite a long story, i will try to summarize it soon and you guys can enjoy the whole story!
His is quite a long story, i will try to summarize it soon and you guys can enjoy the whole story!
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