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Thursday, May 19, 2011

long winded post about how stupid i am, and how cogo might by the next chinese short candidate

I bought my first stock in 2004 after I received a 5,000 dollar scholarship from an energy scholarship I applied to.  Since I thought I got the scholarship from a local energy company called APS, I decided to buy stock of it's parent company Pinnacle West Capital (PNW)  I didn't know much about the company other than it paid 4%+ dividend and I was able to buy stock through it's DRIP program for as little as 50 dollars. I was elated after I bought this stock, I thought it was so cool that I can own part of a company and I was a shareholder.

Well, I was pretty stupid back then (still am.) Turned out the scholarship wasn't from APS but from some government energy composite with the same initials.  What about PNW? Well, I had no idea how to read a balance sheet back then and only knew it paid a dividend. Looking at the financial statements now, I can start to see things. Like for example how their cash from operations - capex was starting to get larger than their dividend payout. Which means my precious dividend was going to be threatened. If only knowledge could pass the space-time.

So during my time in college I started to read more about business and investing. I was a bio major in college so sure as hell didn't learn about financial analysis while studying the endoplasmic reticulum. Yet, I slowly gotten better. I ended up taking an accounting class my senior year of college because I was so interested in learning about financial statements. I aced the class, but the joke was on me. I learned too late that I enjoyed learning more about cash flows than about aldehydes.

Enter Taiwan.

So I came to Taiwan to teach English. I really don't like teaching to be honest and I am not a big writer (

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