26-07-2012, 09:55 AM
(26-07-2012, 09:17 AM)KopiKat Wrote: Hey! From the investment POV, Looks like I ought to put SGX in my watch list for the following reasons,
1. Huge Moat - It's a monopolistic biz. What's the alternative? Only non local Exchanges which means FOREX risks and non-familiarity with their listcos.
2. Incredible Franchise - We're all 'addicts' (actually no choice). They can raise their fees and we'll still come back for more. In a flattering sense, like See's Candies!
3. A biz that even a fool can run, like Cocal Cola sometime back (from Warren Buffett stories).
Hmm....
My view
1. Huge Moat :
With globalization, we should view competition globally. SGX is competing with others exchanges in the region with same time zone.
2. Incredible Franchise:
Definition of franchise (definition again ) is desired, no close substitute and not regulated.
Desired? Yes no doubt, at least to forummers here
No close substitute? How about using other exchanges in the region.
Not regulated? IIRC, I believe the fees are regulated.
3. A biz that even a fool can run?
I am not so sure on this.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡