More information about 李錄 from wikipedia

Li Lu (simplified Chinese: 李录; traditional Chinese: 李錄 or 李祿; pinyin: Lǐ Lù; born 1966^[1]) is a Chinese-American fund manager and investor, founder and Chairman of Himalaya Capital Management.

Li Lu was born and grew up in Tangshan, China. He was a survivor of 1976 Tangshan earthquake. In 1985, he went to Nanjing University, majored in Physics and later transferred to Economics. In 1989, he participated in the Tiananmen Square student protests and became one of the student leaders. He helped organize the students and participated in a hunger strike

After the crackdown of the movement, he left China and went to study at Columbia University. In 1990, he published a book about his experience in China titled “Moving the Mountain: My Life in China” (ISBN 0-399-13545-6). In 1996, he graduated from Columbia and became one of the first students in the history of the university to receive three degrees simultaneously: a B.A. in Economics from Columbia College, a J.D. from Columbia Law School, and an M.B.A. from Columbia Business School.^[2] Li was inspired to get into banking after hearing Warren Buffett, a Columbia alumnus, give a lecture at Columbia in 1993.

Upon graduation, Li Lu worked in an investment bank until late 1997, when he founded Himalaya Capital Management. From 1998 to 2004, he managed both a hedge fund and a venture capital fund. His fund suffered a 19% percent loss in 1998 from the Asian Financial Crisis. In late 2004, he transformed the hedge fund into a long only investment vehicle, LL Investment Partners, LP, which is currently focused on global investment opportunities. Charlie Munger, Vice-Chairman of Berkshire Hathaway and a long-time partner of legendary investor Warren Buffett, is an investor of his fund, and a “mentor and good friend” (in Li Lu’s own words).^[3]

Li Lu has been known as the man who introduced the Chinese battery and auto maker BYD Company to Charlie Munger and Warren Buffett. He is an informal advisor to BYD. His LL Investment Partners owns about 2.5% of BYD.^[4]

In May 2010, Li Lu helped to translate and publish the Chinese version of “Poor Charlie’s Almanack, The Wit and Wisdom of Charles T. Munger” (ISBN 978-7-208-08994-5) in China and wrote a foreword for the book.^[5]

Li was named a global leader for tomorrow by the World Economic Forum in 2001, and a Henry Crown fellow by the Aspen Institute in 1998. He is a member of Council on Foreign Relations and Young Presidents' Organization.

Li is rumored to be the front runner to manage a large portion of Berkshire Hathaway's investment portfolio once Warren Buffett steps down. According to The Wall Street Journal, Charlie Munger once said "it is a foregone decision" that Li Lu is going to be a member of Berkshire's top investors team after Warren Buffett retires. This was also hinted several times in some conversations with Buffett.^[6]

^{Link in English: http://en.wikipedia.org/wiki/Li_Lu}

^{Link in Chinese: http://zh.wikipedia.org/zh-tw/李錄}

^Thanks

^Paul

Will it be a Chinese to take over Berkshire?

Dear All

I guess everyone is in the debate of who 李錄 Li Lu is and how important this person is to Warren Buffet. Firstly, he is the person who introduced the car company "Build Your Dream" to Charlie Munger and then Charlie to Warren Buffet. This is the only company that broke Buffet's investment strategy which he invested in a company that he does not fully understand. Secondly, Li Lu traveled along with Buffet for his 4 days China tour. This can tell this person is pretty important in Buffet's mind. Will he be the next CEO of Berkshire Hathaway? I personally think there's a high chance. Stay focus to this guy. He might be very influential to the economy in the next 10 years.

Thanks

MC

The Risng of Groupon

Hi

Today I would like to talk about the company "Groupon". Even though this company is still not on the public stock exchange yet, I really appreciate the concept and idea of the company. This company does not manufacture goods, it manufactures coupons. We can call them the coupon giant. In less than two years since the start of Groupon, they have expanded from United States to over 25 countries around the world. Hundreds of coupons are sold every minute. How does this work? This company just goes around city and deals with companies that are interested to give out coupons. Not only this could help companies to boost up their revenue, this could also promote their companies. On the other hand, Groupon will create coupons for those companies and make profit by receiving some commissions off those sold coupons. This is a win win situation for both companies by Groupon gaining profits from selling coupons and promoting companies receiving free advertisements. Consumers love to use coupons especially the owner of "IKEA" Ingvar Kamprad. Will Ingvar Kamprad be a big fan of Groupon?

Check out their webiste: www.groupon.com

Thanks

MC

Shocking Facts About the U.S. Debt Problem, And 5 Ways to Prepare Your Portfolio

I share the same point of view with this writer, so just read it.

by Nathan Slaughter

The United States isn't yet teetering on the brink of insolvency like Greece -- but it's not for a lack of trying. In fact, we're on an eerily similar path.

According to the U.S. Treasury, our national debt is currently more than $13 trillion (that's a 13 with twelve zeroes). And that's not even counting unfunded Medicare and social security liabilities. That works out to roughly $118,477 for each and every taxpayer. But this is a clock that never stops ticking.

At the current pace, we are slipping $3.9 billion deeper in the hole every day -- $163 million per hour. That means that by the time you finish reading the next paragraph, we'll have saddled our kids and grandkids with another million or two that must be repaid.

The federal government has now run a deficit for 21 consecutive months (the longest stretch of red ink on record). In April, tax receipts totaled $245 billion, but outlays hit $328 billion. That means for every $1 taken in, we spent $1.34. No household could survive long on that reckless budget -- but then again, you and I can't print money.

For all of 2010, the deficit is projected to reach $1.5 trillion. That's an insane +780% increase in just three years. As a percentage of GDP, the gap is currently in the double-digits for the first time since World War II. And the combined shortfalls could total $9 trillion in the next decade -- ballooning the debt past $20 trillion.

At that point, assuming an average interest rate of 5% (far below what we'd have to pay in a real crisis), interest payments alone would hit $1 trillion per year -- leaving very little for anything else.

And forget about the principal. Even if we could pay down the balance at a rate of $10 million per day, it would still take 5,753 years to become debt free. Yet our leaders aren't interested in paying the tab -- they're still spending like drunken sailors.

Sowing the seeds of inflation
Without a dramatic economic surge to boost revenues, U.S. debt could exceed GDP within the next two or three years. And there's only so much the International Monetary Fund could do (20 cents of every IMF dollar comes from American taxpayers, and we can't bail ourselves out).

As we saw when Greece reached its tipping point, the international community could soon demand much greater incentive to lend us money. This could ravage both the debt and equity markets. And the U.S. dollar (a safe-haven currency under other circumstances) will come under direct fire.

So where does all this lead?

Influential ond investor Bill Gross believes the United States is locked on a collision course with a "debt super cycle." And former Fed chief Alan Greenspan is warning of painful double-digit inflation on the horizon.

Just as France deliberately stoked inflation to ease the burden of debts amassed during World War I, the only way the U.S. can make a dent is by diluting the value of a dollar. Leaving interest rates at zero is a good start, and running the printing presses overtime will finish the job.

Make no mistake: this is an indirect form of taxation. Whether the government takes a 25% upfront cut from each dollar of your paycheck, or simply devalues that dollar to the point where it can only buy $0.75 worth of products it could have before, the end result is the same.

Fortunately, there are ways to turn the tables. In fact, certain asset classes don't just protect against inflation, but profit handsomely from it. Here are a few ideas:

1.) Precious metals like gold, silver, and platinum would be a natural beneficiary and a reliable inflation hedge.

2.) Commodities (particularly dollar-denominated ones like crude oil) would likely flourish as the greenback crumbles.

3.) Foreign money markets would generate relatively safe monthly income, and currency appreciation will sweeten returns. I've personally been accumulating a position in the Franklin Hard Currency Fund (Nasdaq: ICPHX).

4.) If the U.S. is foundering, then you'll want a portion of your money as far away as possible, like Chile, for example. The expanding South American market would remain buoyant with copper exports and relies on the U.S. for just 15% of its trade.

5.) Further depreciation of the dollar could be a boon for multinationals like Heinz (NYSE: HNZ) that generate more than half of their sales overseas.

One solution I recommend is to buy the Jefferies Global Commodity Equity (NYSE: CRBQ) ETF.

If you think inflation is imminent, start accumulating small positions utilizing the strategies mentioned above.

Thanks

Paul

Check out American Apparel

Hi

I have currently been speculating this stock APP. It has dropped over 50% in the past 5

days. For further information, please check back soon.

Here is an article by Ann Arbor:

The future of American Apparel's downtown Ann Arbor store -- and, indeed, the future of the retail chain itself -- is shaky at best.

American Apparel said in a regulatory filing this week that there is "substantial doubt that the company will be able to continue as a going concern," which indicates that the firm may be headed for bankruptcy or liquidation.

The retailer, which sells clothes manufactured exclusively in the U.S., occupies a high-profile storefront on Liberty Street near the corner of State Street, a hotspot for Ann Arbor shoppers.

The chain, which is known for its racy advertising campaigns and a flamboyant chief executive who freely acknowledged having affairs with his own employees, opened its 4,000-square-foot Ann Arbor store in summer 2005, marking its first location in Michigan.

A manager for American Apparel's Ann Arbor store declined comment and referred questions to a corporate public relations contact.
American Apparel in August 2010 2.JPG

American Apparel is known for its controversial advertising campaigns, such as this one visible outside the store this morning.

Nathan Bomey | AnnArbor.com

Ryan Holiday, a spokesman for the company, denied that the chain's troubles would hit Ann Arbor.

"It is remaining open and the company has no plans to close or consider closing stores," he said in an e-mail.

The tenuous position of American Apparel's Ann Arbor store adds to additional uncertainty for the downtown area's retail sector. Borders Group, whose flagship store is located across the street from American Apparel, is also facing long-term questions about its viability as an independent retailer.

Nonetheless, the State Street shopping corridor, which remains one of the most expensive places to rent retail space, continues to attract new tenants. In recent months, national drug store chain CVS, fast food chain Five Guys Burgers and Fries, upstart restaurant @burger and others have signed deals to launch locations on State or Liberty.

American Apparel's demise is not inevitable. The Los Angeles Times reported that billionaire Ronald Burkle, also an investor in struggling Borders competitor Barnes & Noble, recently acquired a 6 percent stake in American Apparel.

But the L.A. Times reported:

In recent months, the troubled company has been beset by sales declines, losses, a crackdown on undocumented workers, problems with its debt, delayed quarterly filings and, most recently, an investigation by the U.S. attorney's office in New York related to the company's abrupt change in accounting firms.

Industry experts say the company's problems are so severe that nothing short of a major overhaul in its business practices and management, which could include a possible bankruptcy filing, can pull it out of its free fall.

Experts are questioning the ability of CEO Dov Charney to reverse the company's slide.

"His enthusiasm for his product is perhaps at odds with the discipline that a retailer needs," Richard Jaffe, a retail analyst at investment bank Stifel Nicolaus, told the Wall Street Journal.

American Apparel's Ann Arbor store is one of three in Michigan and 285 locations in 20 nations.

The company's stock was trading at $0.80 this morning, down from a 52-week high of $3.95.

The company reportedly expected to lose $5 million to $7 million in its second quarter with revenue from $132 million to $134 million.

Thanks

MC

Movie of the Month

I Suggest You To Watch It Right Now!

http://video.google.com/videoplay?docid=-1656880303867390173#

Thanks
Paul Ng

America: Freedom to Fascism

Thanks

Paul Ng

Check out Bank of America

Hi

Bank of American is currently at $13.65. This is close to it's 52 week low which is $13.30. I believe

the worries over the bank is just temporary and should not be a factor. Investors are buying

shares at this low point and it is ready to blast out. I suggest to buy some shares while it is

currently at a low point.

Thanks

MC

Photo Of The Month

"What is Mr. Tung doing in Tai O?"

Thanks

Photo by Paul Ng

Photo Of The Week

" Our HSBC "

Thanks

Photo By Paul Ng