Miyoshi Limited

[sgmystique]

I am not sure if sometimes, we can see through our own heuristic biases? If we could have easily seen through it, then it wouldn't be called a "bias", isnt it?

hi sgmystique,
I don't doubt that "a bird in the hand, is better than 2 in the bush" - i have personally experienced highly profitable positions turned loss making eventually (S chips and O&G).

But i do find that many OPMIs are more than frequent caught up by "free shares", to our own detriment. I do observe that OPMIs sell down their profitable positions and the remaining shares become "free of cost", and (mentally) compartmentalized from their own capital. Since this is "free money" now, there is a tendency to treat this more frivolously - in the sense that when fundamentals really change and the right action is to sell, loss aversion is less intense because it is free, resulting in the right action not be taken.

I don't have doubt in your decision making process, just a point to make on the dangers (that i perceive) on the "free share portion". As for your loss cutting, it is inspiring to see that you have progressed over the last few years since the FF saga.

Well honestly I took a very big hit on the FF saga. Luckily I still survived to fight another day!

One's approach to investing as with a lot of other aspects in life is shaped by our personal experiences   What may work wonders with one person may just not gel with another. End of the day I am happy  as long as my investing makes me something additional over putting my money in 100% guaranteed fixed income instruments. And of course the learning along the way makes the journey most enjoyable.

[weijian]

Sin and his family owns ~30+% of the company, doesn't confer absolute control but still very substantial. So the BOD can't fire their own boss, which is normal I reckon.

The consultant role had been previously (ab)used by Kimly and so can't be repeated.

Miyoshi’s Sin to continue as CEO despite accounting irregularity

It also pointed out that the group continues to require Sin’s expertise, experience, as well as his relationships with business partners and other stakeholders, which he has “accumulated over more than 30 years since founding the group”.

The accounting irregularity came to light after the group’s audited financial statements were selected for review by the Accounting and Corporate Regulatory Authority (Acra) in September 2021, as part of the authority’s financial reporting surveillance programme.

The national regulator found that Miyoshi had engaged an independent valuer to assess whether the equity investment was impaired. Despite the valuer’s draft report confirming a significant impairment, Miyoshi did not recognise the impairment loss and overstated its net asset value by the same amount.

https://www.businesstimes.com.sg/compani...regularity