Regular features from October 2003 94th Issue

The Digital Doctor - The sound of music

Remember the days when you had to dust off those old LP's stick one on the turntable and have a jive in the comfort of your living room? Now days you can just throw in a CD and have the same jive. But over time nasty things start to happen to them such as scratches, deterioration, your uncle Bert using one as a beer mat. Especially if you own a bar or restaurant you'll notice your beloved CDs beginning to look like someone has taken a power sander to them after a few months. However help is at hand in the form of that box you use to send emails to your sister back in farangland.
Your computer can be used to save your music collection, build a library, create new CDs and play those tunes till you're all boogied out. The current computer music compression standard is MP3 (an acronym for Mpeg 1 audio layer 3). As a form of compression, MP3 is based on a psycho-acoustic model which recognizes that the human ear cannot hear all the audio frequencies on a recording. The human hearing range is between 20Hz to 20Khz and it is most sensitive between 2 to 4 KHz. When sound is compressed into an MP3 file, an attempt is made to get rid of the frequencies that can't be heard. As such, this is known as 'destructive' compression.
You can use software to convert your audio CDs into MP3 format that can be stored safely on your computer. I use a program call Audiograbber (you can download it here: www.audiograbber.com-us.net/download.html ) which will play your audio CD and 'rip' (compress) the audio files into MP3. This serves as a great way to back up your music before your CDs become too sandblasted and un-playable. There are different levels of compression that will determine the final sound quality of the file for instance, an MP3 created with 128 Kbit compression will be of a greater quality and larger file size than that of a 56 Kbit compression. The more the compression level decreases, the lesser the sound quality. Standard MP3 is 128Kbit and unless you have a very good quality amplifier and speaker system you won't notice much difference between that and higher levels. In order to 'rip' CDs to higher bitrates (above 56Kbit) you'll need another file called a codec which isn't included in Windows, this can also be downloaded from the website above.
The average MP3 file (at 128Kbit) size is around 4 Megabytes taking the average song being 4 minutes long. This means you can fit about 120 songs on one CD and several thousand on your hard disk. This provides a great way to build yourself a music library.
Playing MP3 is also simple as there are many programs available, Windows includes a standard player (XP and ME only) but it isn't very user friendly. The most popular MP3 player today is Winamp (www . winamp . com / download / ), simple to install and use. Personally I'm a fan of Musicmatch Jukebox which enables you to build a library and sort your tracks by artist. Later versions of Musicmatch include CD burning software. You can also save playlists for those romantic moments or those rock and roll moments. But remember you must have a soundcard and speakers ! A regular soundcard (costing around 500 baht) would suffice for computer speakers but if you're a serious listener you can get a decent one for about 1,400 baht and rig up your computer up through an external amplifier or your regular stereo system. For this you'll need an RCA - phono jack cable which can be purchased in any electrical store in town for about 100 baht (you can also specify length if your amp is a long way away from your computer).
Another great advantage of MP3 is that you can reverse the 'ripping' process and burn custom audio CDs from your collection. These you can then play on any regular stereo or in the car. Most CD burning software (such as Nero or Adaptec) has the ability to create audio CDs.
Although it is music piracy MP3 is widely available to download from the internet, there are many P2P (peer to peer) networks around that offer music sharing. Despite the demise of Napster and then Audiogalaxy there are still alternatives available, Winmx (www.winmx.com) is a simple Napster-like system that allows file sharing. Kazaa lite (www.kazaalite.tk) is also very popular as the full version came with a bunch of spyware. As mentioned in a previous article we're not blessed with the fastest internet access in Hua Hin therefore downloading MP3 can be an arduous process (20 minutes for a song is about average).
If you don't have the patience to leave your computer online for hours downloading music then I have around 6,000 tracks available in MP3 format. You'll need at least 10GB of hard disk space (less if you don't want it all). I also have all the software mentioned above which can be installed on your computer. An existing setup can be seen in Jungle Juice or Willows. The good thing with music is you don't need a 30,000 baht computer to play it, as long as you have a soundcard, speakers and ample hard disk space you can play MP3 on a Pentium 90 (although I haven't seen one of these for a while!). If you're interested in a sound system setup or have any computer issues don't hesitate to call the Doc on 01-1911742 or email mjy@digitalmetrix.net www.digitalmetrix.net

Mutual Funds

There are at least two opinions held by the population at large on any subject. In Thailand there is Mr Thaksin's view and the opposite view is often held by academia.
Academics, because of their education and sometimes because of their lofty position, can sound extremely convincing when they interpret national policy opposite to the Prime Minister's viewpoint. Unfortunately for academia the majority of Thai people see things the Premiers way.
This is not a political column this month but I want to look at academia's view of one area in the financial field where the general population sees things differently than our learned friends.
I would like to examine why investors have flocked to mutual funds in spite of the abysmal performance record that academics have ascribed to the industry.
Readers of this column generally have a savings philosophy and will most likely hold a mutual fund of some sort.
According to a study by Roger M. Edelen, the typical mutual fund offers a return after expenses of 1 percent a year lower than a passive benchmark return.
We are talking here about an industry in the US alone of US$7,000 bn.
Roger Edelen asks if mutual funds are unique in their ability to dupe the consumer.
One does not have to look far to find credible explanations for their popularity.
Mutual funds offer a diversified position in just about any asset class you might want to target with as much cheap liquidity as you could ask for.
Consider the alternatives, cobbling together an investment portfolio on your own.
The administrative costs of building a typical fund portfolio of 80 or so stocks from a specific investment objective or asset class would be onerous for any investor.
One must identify the relevant securities, choose among them and execute the trades.
Moreover these costs must be borne each time the investor seeks to alter the investment focus say from small-cap aggressive stocks to high grade corporate bonds.
Shifting in and out of asset classes at any frequency short of a few years would be prohibitively costly to administer without mutual funds.
Admin costs are difficult to quantify but consider this.
Assuming a typical transaction of $20,000, this suggests that around 100m transactions took place in 1999. Executed without the benefit of mutual funds, each transaction would involve selecting a target diversified portfolio of directly held securities, executing 80 purchase trades and 80 sales trades and updating bookkeeping and tax records. Even if these tasks could be executed at a rate of two hours a transaction, which seem optimistic,
We are talking some 80,000 man-years of effort at 50 hours a week. The implied admin savings offered by mutual funds would be US $4bn. assuming an average annual salary of $50,000.
There appears to be 4bn reasons a year for investors to flock to mutual funds irrespective of whether they offer enhanced returns.
Rodger Edelen continues "A typical mutual fund enjoys substantial economies of scale over individual investors in both the administrative and transaction costs of maintaining a liquid diversified position. But offering a liquidity service that amounts to trillions of dollars a year does entail costs for funds. Indeed the academic studies that draw negative conclusions about the returns offered by mutual funds may be painting a misleading picture. These studies assume that fund managers incur zero costs in providing liquidity'.
This of course is coming to a conclusion without considering all of the information
In conclusion we would have to say that Mutual funds perform a variety of services. In particular they offer a liquid position in a diversified portfolio targeting a specific asset class or sector. For most investors this greatly improves their investment opportunities. In particular positions can be acquired and liquidated with minimal costs.
Most holders of mutual funds are not even aware of these benefits so when academics stand up and criticise their performance the average investor feels they have bought a pig in a poke. Think again. And please get your broker to fully explain any investment you ever purchase.

For information on any area of personal finance
Please contact JerryMcMenamin at
info@swissinvestcenter.net

Hua Hin Airport - What Now?

Bangkok Airways ceases its Bangkok - Hua Hin and it’s Hua Hin - Samui routes on Saturday 25th October.
A spokesperson said that there were just not enough passengers to make the flights viable. Heavy discounting helped, but the carrier could see no profits for the foreseeable future.
You can fly to Bangkok on Mondays, Wednesdays and Fridays until the 25th of this month.
There are a number of seats available at on 850 Baht net. With the rest at the normal rate of 1,650 Baht.
There were some unhappy customers not realising the special rates applied only on a first come, first served basis. To be fair this has never been made clear in their advertising, maybe this has been part of the problem.
However - what now for the expensive airport. Training flights only? Or is one of the big players looking to land here?

THAI Airways International (THAI) has filed an application with the aviation department to operate flights to Koh Samui starting in October.
THAI is proposing to operate two flights a day using a Boeing 737-400, but because of payload restrictions on Samui’s runway, they would only fly 100 passengers per flight, and no cargo, a spokesman said. “Samui as a very good potential route for us and we hope to be flying there in good time for the high season. We’re hoping for an early morning and an evening time-slot,” the spokesman told TTG Asia this morning.
Bangkok Airways (PG), which owns Samui airport, said THAI would be welcome to fly the route but ground service charges would be the same as at Changi, Ho Chi Minh City, Tokyo or other international airports. “The rate for a small aircraft like an ATR-72 is about US$2,000 but it would be higher for a Boeing 737-400. Also, we charge on a sliding scale according to the number of passengers,” a spokesman for PG’s president, Dr Prasert Prasarttong-Osoth, said, adding an evening time slot might be a problem.

A look at current events through the eyes of Transformational Thinking.
By Bill Gould

It takes two to Tango and also to expand understanding through consideration of points of view different from our own. In the case of thinking, the more the merrier. When two or more people step inside a Free Thinking Zone to consider a concept, make a plan or a decision or solve a problem, true synergy begins to manifest itself and amazing things happen.
Within a Free Thinking Zone, people don't argue. They listen. They expand their own perceptions through doing so and by sharing their perceptions with others, provide them with the opportunity to do the same. I have always believed that everyone comes into my life to teach me something and that it is my task to discover what that something is. Free Thinking Zones are where I find that happening the most. Likewise, we are all teachers with different experiences and knowledge to share. We are all teachers and students.
One of the "barriers" many Western business people experience when working within the Thai culture is the concept of krieng chai, one that is almost unfamiliar to us in the West but very integral to the Thai culture. (You will also find krieng chai in everyday dealings). Krieng chai is based upon a respect for age and authority and is a very ancient concept. Subordinates may disagree with one in authority but krieng chai prohibits one from voicing that out of respect. Talk to Westerner who experiences this concept in action and you will find a division of perceptions, like anything else. Some believe that everyone obviously agrees with them or else they would speak up. This shows a lack of understanding for or an appreciation of krieng chai, even though it may feel like a nice ego stroking. To those who understand it but cannot get beyond it, krieng chai represents a frustrating barrier, a wall. A Free Thinking Zone levels the playing field and places everyone's perceptions (not necessarily their corporate position) on an equal scale. Position, in fact, becomes a non-factor in a Free Thinking Zone provided it is initiated and practiced by the leadership. It is true empowerment. The Free Thinking Zone is an amazing tool in addressing and eliminating the real or perceived barriers of krieng chai, as we discovered in our recent workshop.
In our daily meetings within Transformational Thinking Co., Ltd., we practice this concept often. Anyone can declare a Free Thinking Zone. "I am tossing a concept out on the table (into a Free Thinking Zone) and would like us to play with it for a while and see where it takes us."
The Free Thinking Zone is a great creative thinking tool, but that could just be my perception. Try is and see. Let us know what you discover at info@transforamtionalthinking.com. We commit to response. Better yet, as soon as we have established the Free Thinking Zone on our web site, come and join in the discussions. Until next month, keep thinking.
See next month for new article

Many Happy Returns to Jorgen (blue shirt) who celebrated at The Corner Bar with Simon and quite a few of the Palm Hills girls.

Many congratulations to Mike and Rashnee Thakuri on the birth of their first son Inthara (Mikey), who was born on 22nd August at 19.08hrs. Little Mikey was 2.900g and 46cm long.

 
Hua Hin Golf Tours “Red Seeds” Staff Party night - looked like good fun.

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