Life Term Strategies

1. Huge Gains in Long Term
- Receive significant capital gains
- by investing in corporations
- (with wide economic moat & average peers’ net margin)
- In very very long term

2. Strong Periodic Cash Flow
- Maintain self-sufficient monthly cash flow
- Through dividend, gains on derivative & short term trading
- For re-investment to item # 1 mentioned above

3. Mind for Risk Management
- Ensure strong cash position
- Maintain low risk by continue monitor, analyze & feel:
economic trend & environment,
market condition & investors emotion
corporate performance & outlook
asset allocation & direction

4. Be a holy Christian investor:
- Invest in wisdom & varies ways, but consistent & not over nor under of what the Holy Bible expects a Jesus follower should be
- Keep regular & long term spiritual growth
Continue experience God @ finance market
Aim for life transform opportunities
- Even though it may not teach Billy & Bilibala what stocks to invest nor how to make more, more & more $

3.12.2009

General Electric being downgraded

Press release from GE:
S&P today announced a single-notch downgrade of General Electric (GE)'s and GECC's long term ratings from AAA to AA+, with an outlook change from "negative" to "stable". The ratings downgrade does not affect GE's and GECC's short term funding ratings of A-1+, which was affirmed by S&P. The action follows a thorough review of GE's portfolio by S&P.

Market reactions:
GE's stock price rise 12.72% to $9.57 because it clear the uncertainty of the company's financial situation.

Bilibala's comments:
Downgrade will have negative impact on GE's long term capital funding and it will also increase its cost of capital, which will trigger a downward adjustment on GE's fair value calculation (at least, that's what I will do.)

I think GE's stock price increase is merely an adjustment/correction from the huge drop down during the previous 2 weeks to a more reasonable level.
Overall, being downgraded is not good news.
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