Buffett criticizes corporate risk management

OMAHA, Nebraska (AP): Billionaire Warren Buffett said Saturday that CEOs and the boards that hired them should pay a steep price if their companies get into trouble with risky investments.

As part of his annual letter to Berkshire Hathaway Inc. shareholders, Buffett encouraged other corporations to develop meaningful penalties for top executives who misjudge risk so they will be more careful.

Buffett lamented that shareholders, not chief executives and directors, have borne most of the burden of company failures during the economic crisis of the past two years.

"In my view a board of directors of a huge financial institution is derelict if it does not insist that its CEO bear full responsibility for risk control," Buffett wrote. "If he's incapable of handling that job, he should look for other employment.

And if he fails at it - with the government thereupon required to step in with funds or guarantees - the financial consequences for him and his board should be severe."

Buffett told his shareholders he initiates and takes full responsibility for every derivative contract Berkshire writes. Those contracts helped deliver a largely unrealized $787 million gain in investments in 2009 after a $7.5 billion loss recorded in 2008.

Sources: http://biz.thestar.com.my/news/story.asp?file=/2010/2/28/business/20100228084734&sec=business

My Lecturer's Words

After replying lots of request from student on changing of mid term test date, finally my lecturer come out below words via email to all of us~(interesting~haha~)

Tittle: becoming an adult - sincere expression

invalid reasons: to entertain or to not entertain?
that is the question.

i normally don't. but when i decide to, all hell breaks loose.
who am i helping? am i really helping? or just "helping."

one says, "i'm just going for my break now."
another, "i'm helping out with my sister's wedding."
yet another, "i'm going back to my hometown."
and the list goes on..and on..

why should i care? should i care??
it being a study week..them being invalid reasons..
and you and i both know our duties, roles, and responsibilities..

what if i were to say, "i don't feel like conducting the midterm this semester.
i'd rather spend my nights at home with my family."
what would you do? would you entertain my decision? hell NO!! (coz if you did
you'd all get zeros).

think about it.

think about others having to change our live plans to fit YOUR schedule. who are
you? or perhaps i should say, who do you think you are??

each and everyone of us are important.
each and everyone of us have a life, family, other roles and responsibilities to
play.
not one is more important than the other.

ultimately, remember our culture.
respect the elder. respect the wiser.

and yes, growing up isn't easy. but it is time.

xxooxx

RHB Investment Bank CNY Greeting

Today received an CNY greeting email from RHB Investment Bank, kind of special greeting and I would like to share it here~ ^^

Dear Successful Registrant of RHB Knowledge-based Stock Challenge,

On behalf of the Stock Challenge team, we wish you and your loved ones in this New Lunar Year of 2010 …

¨ 12 months of renewed “Tiger-strength” in the stock markets

¨ 52 weeks of good health and mental alertness to profit from market volatilities

¨ 365 days for full of profit takings

¨ 8,760 hours of happy holiday time with your stock market winnings

¨ 525,600 minutes of “Lim Chee Sing-type” market insights

¨ 31,536,000 seconds of clicking “Buy” and “Sell” on during the stock challenge at the very best timing !

I'll Be There - Jackson 5

You and I must make a pact, we must bring salvation back
Where there is love, I'll be there

I'll reach out my hand to you, I'll have faith in all you do
Just call my name and I'll be there

I'll be there to comfort you,
Build my world of dreams around you, I'm so glad that I found you
I'll be there with a love that's strong
I'll be your strength, I'll keep holding on

Let me fill your heart with joy and laughter
Togetherness, well that's all I'm after
Whenever you need me, I'll be there
I'll be there to protect you, with an unselfish love that respects you
Just call my name and I'll be there

If you should ever find someone new, I know he'd better be good to you
'Cause if he doesn't, I'll be there
Don't you know, baby, yeah yeah
I'll be there, I'll be there, just call my name, I'll be there

(Just look over your shoulders, honey - oo)

I'll be there, I'll be there, whenever you need me, I'll be there
Don't you know, baby, yeah yeah

I'll be there, I'll be there, just call my name, I'll be there...

Solution, Answer and Reason

Today something suddenly appear in my mind, I am questioning what is the difference between solution, answer and reason?

Look, when someone asking you why you did this, did that, and when you reply to that question, what is your reply should be? Answer or Reason? When you solving a mathematic problem, e.g. '1+1=?', the '?' should be Solution? Answer? Or when someone ask you how can you did something, then the answer should be Solution? Reason?

My view, lets look at a few cases:

A. When someone ask you why you do this on him/her (usually bad things)...

1. You decide to hide the truth in order not to hurt him/her (hiding Reason)

2. You thinking how to reply him/her (Solution)

3. And finally you came out a reply to him/her (Answer)

B. When you solving equation '1+1=?'

1. '?' is 2 (Answer)

2. Because '1+1' (Reason)~:D

3. Then the solution? The solution is '1+1=2', use brain la...:P (Solution)

C. How you did this?

1. I do it like this, like that...(Solution)

2. Why I do like this like that (Reason)

3. Answer? Give you my solution already what? (Answer)

***The above stuff just for fun, don't take it serious~LOL~