As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Monday, 30 April 2012

CapitaLand's Q1 2012 net profit up 31%

SINGAPORE: Southeast Asia's largest property developer, Capitaland reported a 31 per cent rise in first quarter net earnings.

Net profit for the three months ended March 31 was S$133.2 million compared to S$101.5 million a year ago.

The bottomline was boosted by higher revenue from the Group's development projects in Singapore and Australia.

Group revenue rose 4.8 per cent to S$641.1 million in the first quarter from a year ago.

Higher rental revenue from shopping mall business as well as higher fee-based revenue contributed to the better result.

Revenue from CapitaMalls Asia rose 39 per cent to S$69.6 million from S$50.2 million a year ago.

However, revenue from the Group's development projects in China was lower,

Revenue from its Capitaland China holdings dropped 72.6 per cent to S$35.6 million from S$129.8 million a year ago.

Still, incomes from portfolio gains added another S$51 million into the Group's revenue.

This is mainly from the S$28.8 million sale of Hilton Double Tree Hotel in Kunshan, China.

Mr Liew Mun Leong, President and CEO of CapitaLand Group, said: "Our overseas operations continued with its growth momentum and contributed significantly to EBIT, accounting for S$202.6 million or 61.1 per cent of the Group's total EBIT. In fact, the Group's three core markets of Singapore, China and Australia accounted for 79.0 per cent of total EBIT."

Despite China and Singapore curbing housing prices with cooling measures, Capitaland expects the longer term demand to remain healthy.

Chairman Dr Hu Tsu Tau will retire from the Board on Monday and will be appointed as Senior Advisor.

Mr Ng Kee Choe will be the incoming Chairman of CapitaLand.

- CNA/fa

Sunday, 29 April 2012

Securities Borrowing and Lending

  • Securities Borrowing and Lending (SBL) allow individual investors to earn fees by lending their stock holdings to Central Depository (CDP) who, in turn, lend them to registered borrowers.
  • Investors who become Lending Participants may still sell their securities during trading hours, even if their securities are on loan.  There is no need for investors to recall their loaned securities, as CDP will deem the act to sell, transfer or dispose of your securities as a notice to terminate the loan.
  • There are currently close to 600 securities eligible for SBL with plans for the inclusion of Listed REITs and Business Trusts to the eligible securities in May 2012.
  • There are currently 11,600 participating investors lending through SBL to 18 financial institutions. There is no cost to register as a lending participant which can be done through CDP.  
     
     
    With the inclusion of Reits and business trusts in SBL in May 12, we can expect more volatility in reits and biz trusts too as they can now be shorted.

Investing Made Simple by Uncle8888 (34)

Read? Investing Made Simple by Uncle8888 (33)

Taking risks, seeing opportunities and riding volatility

When we come to investing in the stock market, we can't never avoid risks and volatility.

We may need to define our own personal risk in the stock market. Every retail investor's  personal definition of risk in the stock market may vary.

What is high risk to one retail investor may actually be low risk for another.retail investor. Risk in the stock market is very personal so we  cannot anyhow imitate other retail investor's investing method and strategies without relating back to our risk profile.

Uncle8888's definition of his risk in the stock market

He defines his personal risk in the stock market as not losing part of his investing capital.

He will not risk more than 10% of his capital in any one stock no matter how attractive or "under-valued" that stock can be. He will also not expose more than 20% of his capital to any one sector. By limiting his risk exposure to stocks based on % to his investing capital he will ensure that his risk level is consistently maintained throughout his investing journey and market cycles.

Volatility and Risks

On the downside, volatility can cause him to lose part of his investing capital.

So how much will he lose in the worst case when he got it damn wrong?

He doesn't leverage so his loss should be around 10-20% of his investing capital when a particular stock or sector goes bankrupt!

Volatility and Opportunities

On the upside, volatility may made his dream of holding more multi-baggers come true.

Does it pay to ride volatility? The answer can be seen in his portfolio.


What is long-term investing means to retail investors like Uncle8888?

In one simple sentence: Long-term investing is someone who has gut and patience to manage his own personal risks to seize opportunities in creating wealth by riding the volatility across bull and bear market cycles.
 






Indonesia delays S$9.1b DBS-Danamon deal

JAKARTA: Indonesia's central bank said on Saturday it would not approve a S$9.1 billion (US$7.3 billion) acquisition of Bank Danamon Indonesia by Singapore's DBS until new rules covering foreign ownership were in place.

Bank Indonesia said it would re-evaluate a current rule that allows private investors -- both foreign and Indonesian -- to own stakes as high as 99 percent in Indonesian banks before assessing DBS's planned acquisition.

"It's not that we're delaying approval for the DBS deal, we will just start evaluating DBS's plan after we issue our new bank ownership rules," Bank Indonesia spokesman Difi A. Johansyah told AFP.

"Hopefully, the regulation will be issued by the end of May or early June."

He said the new rules will apply equally to local and foreign investors, saying the regulation was for the "sake of prudence" and was not aimed at blocking foreigners.

Johansyah declined to say how the 99 percent ownership cap would be affected, but said financial institutions "with a proven track record" will be able to own "a majority".

"Non-financial institutions will only be able to own a minority stake," he added.

The new rules will also oblige banks to acquire several new licences for different services such as taking deposits, setting up ATMs and opening branches, the Jakarta Globe daily quoted Bank Indonesia Governor Darmin Nasution as saying.

The DBS-Danamon deal announced earlier this month triggered a rash of nationalistic complaints by politicians and banking executives that the 99 percent allowance for foreign ownership was too high.

The backlash echoes nationalistic comments made recently over the country's mining industry, which prompted parliament in February to strip foreigners of a controlling stake in mining assets after 10 years of production.

Danamon is already controlled by a subsidiary of Singapore's investment firm Temasek Holdings' Fullerton Financial Holdings but the deal would still require the approval of Indonesia's central bank.

- AFP/al

So many investment or value investing books by Warren Buffet????

Just For Laugh ...

There are so many investment or value investing books by Warren Buffet???



Really ah????
 
From investopedia:

Publications

Buffett has not, as yet, authored any books. However, his annual letters to the shareholders in Berkshire Hathaway's annual report are a suitable substitute. Back copies of these 20-page masterpieces of investing wisdom are available from 1977 through 2006 (updated annually) from Berkshire's Website.

Wah! So many ghost writers and mind readers????

Friday, 27 April 2012

Biosensors


DBS FIRST-QUARTER EARNINGS RISE 16% FROM YEAR AGO TO RECORD SGD 933 MILLION

SINGAPORE, 27 April 2012 – DBS Group Holdings’ first-quarter 2012 net profit rose to a record SGD 933 million, up 16% from a year ago and 28% from the previous quarter. Total income crossed SGD 2 billion for the first time from sustained loan volumes, improved net interest margins, broad-based fee income growth and higher customer flows for treasury products. Return on equity rose to 12.8%, compared to 11.0% for full-year 2011.

Net interest income increased 4% from the previous quarter to a record SGD 1.34 billion. Net interest margins increased four basis points to 1.77% from higher loan yields. Loans rose 3% excluding currency translation effects to SGD 198 billion, with Singapore-dollar loans leading the increase. While loan growth moderated from recent quarters, it is in line with market trends and the loan pipeline remains healthy. Deposits grew 4% excluding currency effects to SGD 232 billion mainly from US dollar, Hong Kong dollar and Singapore dollar deposits. DBS’ liquidity remained healthy with the loan-deposit ratio easing to 85%.

Non-interest income increased 31% from the previous quarter to a new high of SGD 820 million. Fee income rose 19% to SGD 406 million from higher contributions across a wide range of businesses led by wealth management, lending, stockbroking and trade and remittances. Trading income more than doubled to SGD 292 million from higher customer flows and more favourable market conditions. Income from customer flows rose 71% to SGD 256 million, accounting for 39% of total Treasury net interest and non-interest income.

Total income of SGD 2.16 billion was 13% higher than the previous quarter. Expenses were little changed at SGD 898 million as higher staff costs were offset by lower technology and other costs. The cost-income ratio was healthy at 42%. Profit before allowances reached a record SGD 1.26 billion.

Asset quality continued to be strong. Non-performing assets were unchanged from the previous quarter at SGD 2.91 billion, with the non-performing loan rate stable at 1.3%. Specific allowances for loans amounted to SGD 43 million or nine basis points of loans, similar to recent quarters. General allowances of SGD 85 million were taken in line with a prudent provisioning policy. Allowance coverage remained strong at 128%.
DBS also continued to be well capitalised. The core Tier 1 ratio of 12.7% (with phased-in deductions), Tier 1 ratio of 12.7% and total capital adequacy ratio of 16.4% were above regulatory requirements.

Thursday, 26 April 2012

SMRT: Small retail's favourite defensive yield play


SMRT is small retail's favourite defensive yield play as its stock price is affordable.

Keppel sees market in fuel conversion by ships

SINGAPORE - Keppel Corp Ltd, the world's biggest rig-builder, expects tighter global marine fuel emission standards to force some shipowners to convert their vessels to run on less polluting natural gas, Chief Executive Choo Chiau Beng said.

A shift from low-sulphur diesel, which is more expensive than gas, will spur a retrofit for thousands of vessels worldwide and create a new market for rig-builders including Keppel's Singapore-based rival Sembcorp Marine Ltd.

The conversion may provide shipyards with billions of dollars in potential revenue in the coming decades, according to analysts.

"Right now everybody is looking at gas for bunkering ships.

CPF investment account is good at locking up profits!

Read? 10% dividend yield for 10 years? Fact or Fiction? (2)

I parked my long-term dividend yield stocks like Kep Corp, Semb Corp and DBS in CPF investment account. I was a little "surprised" when I itchy hand go and compute the amount of CPF OA 2.5% interest rate earned on the yearly dividends that I received from Kep Corp since 2001.

 
 

Total interests and interest-on-interests (i.e. compound interests) on accumulated dividends locked in CPF OA account is about 52 cents. ROC on initial capital investment on Kep Corp is about 40% over 12 years.

Another good reason for a momentary wide smile!

"Compound interest is the eighth natural wonder of the world and the most powerful thing I have ever encountered." ~ Albert Einstein




Tuesday, 24 April 2012

Singapore-Vietnam JV to develop fifth industrial park

Singapore and Vietnam are joining hands to develop a fifth industrial park worth US$337.82 million (S$421.6 million) at Quang Ngai province in central Vietnam.The Vietnam Singapore Industrial Park (VSIP), which will be the first in the region, aims to enhance connectivity between Vietnam's southern and northern economic zones. Covering a 1,120 ha site, the VSIP Quang Ngai township cum-industrial park, will include 520 ha for residential and commercial purposes and 600 ha for an industrial park within the Dung Quat Special Economic Zone.The VSIP is a 49:51 joint venture (JV) between Vietnam's state-owned Becamex IDC Corporation and a Singapore consortium.


The Singapore group, Sembcorp Development, a subsidiary of Sembcorp Industries, holds 79.29 percent. Being the lead Singapore partner, Sembcorp will have 40 percent share in all the five VSIP projects.The project is in line with a memorandum of understanding 9MOU) signed in September, as witnessed by Prime Minister Lee Hsien Loong and Vietnamese President Truong Tan Sang.Low Sin Leng, Co-Chairman of the VSIP Group and Executive Chairman at Sembcorp Development, said, "Singapore, through the four existing VSIPs, has helped to develop the local economy here.

We hope to see VSIP Quang Ngai repeat the success of the other industrial parks, using industrialisation as an economic driver to spearhead urban development."Nguyen Van Hung, Co-Chairman of the VSIP Group and Chairman and Chief Executive Officer of Becamex, believes that "central Vietnam has great potential for infrastructure and economic growth. Quang Ngai has a big domestic market with ample labour force at reasonably attractive cost."Aside from the Quang Ngai project, VSIP also runs two industrial parks in Binh Duong and two more in Bac Ninh (pictured) and Hai Phong

Monday, 23 April 2012

Singapore March CPI rises 5.2 pct, above expectations

SINGAPORE - Singapore's consumer price index rose 5.2 per cent in March from a year earlier, the government said on Monday, accelerating from February's 4.6 per cent pace due to a jump in car prices.


The central bank's core inflation measure rose 2.9 per cent, slowing from February's 3.0 per cent increase.

Headline inflation "could average around 5 per cent year-on-year in the first half before easing gradually in the second half of 2012," the Ministry of Trade and Industry (MTI) and the Monetary Authority of Singapore (MAS) said in a joint statement.

Accommodation costs will remain the largest contributor to inflation this year as "leasing contracts continue to be renewed at rentals that are considerably higher than those under existing contracts, especially in the HDB segment," they said.



Sunday, 22 April 2012

Visually guided long-term investing goals! (2)

"The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark." - Michelangelo

Read? Visually guided long-term investing goals!

Do read the above quote from Michelango again.




















For their investing goals, some retail investors set to to beat inflation rate or even FD rate which is really low grade investing goal to achieve. Why not try setting higher investing goals and then seriously committed to them. It may open up your investing mind to explore your 3M's - Method, Mind and Money to meet them.

In 2003, I set my aim high and falling short in 2011















Again in 2012, I have set the aim high; but will it fall short this time in 2021???


Visually guided long-term investing goals!

Just For Thinking ...

Track, measure and Visualize!!!

When I go for regular jog along Punggol Promenade and Punggol Waterway, I do it "naked"



without musical to my ears along the long and boring kilometres ahead. I depend on distance visually sighted milestones and distance marking along the track to tell me how much slog to go.

Likewise, in my long-term investing, I use charts, graphs, and absolute numbers to visually tell me how am I doing?  How far more to go before I can rest my tired feet?

Sometime, I realize that these hours of slogging is never a fun thing to do whenever I jog past that Pub along Punggol Promenade looking up and seeing some people happily drinking cold beer.

Visually guided investing goals

You may not realize the power of visually guided long-term investing goals until you actually visualize it while updating your portfolio. It may be like long-distance "naked" jogging, when the distance milestone becomes visually sighted, we somehow recover some lost energy to move forward even though we may be damned tired.




Saturday, 21 April 2012

China, Iceland announce deal on oil-rich Arctic

Createwealth8888: The Artic will be drilled. Will that benefit Kep Corp?

REYKJAVIK - China and Iceland announced a deal on the oil-rich Arctic region Friday after Chinese Prime Minister Wen Jiabao flew in to Reykjavik on the first stage of a four-nation European tour.


The deal was part of a package of six agreements signed on the first day of the Chinese premier's visit to the country, during which he held talks with his Icelandic counterpart Johanna Sigurdardottir.

The Arctic's oil reserves were high on the agenda for energy-hungry China during the high-powered delegation's visit to Iceland.

Iceland's strategic location near the Arctic has not gone unnoticed in China, the world's biggest energy consumer, as the shrinking of the polar ice cap makes the region's mineral resources more accessible

Friday, 20 April 2012

Kep Corp's dividend history

Net profit improved 141% to S$751 million, compared to 1Q 2011's S$312 million. Lumpy net profit due to recognition of earnings from homes sold under deferred payment scheme at Reflections at Keppel Bay.



Looking at Kep Corp's past record of returning excess cash back to shareholders, I will not be surprised at receiving special dividend in 2012 for rewarding loyal shareholders for their years of patience waiting for this deferred payment from Reflections at Keppel Bay!




Thursday, 19 April 2012

Kep Corp 1Q 2012 Report Card

1. Net profit improved 141% to S$751 million, compared to 1Q 2011's S$312 million. Lumpy net profit due to recognition of earnings from homes sold under deferred payment scheme at Reflections at Keppel Bay.

2. Earnings Per Share of 41.9 cents, up 138% from 1Q 2011's 17.6 cents.

3. Annualised ROE of 21.6%.

4. Economic Value Added of S$654 million.

5. Cash outflow of S$193 million.

6. Net gearing remains at 0.16x.



SINGAPORE - Singapore's Keppel Corp Ltd, the world's largest rig-builder, reported on Thursday a forecast-beating 141 per cent rise in its first quarter net profit, helped by a jump in earnings from its property division.


The company posted a net profit of S$750.8 million (US$600.6 million) for the three month ended March 31, two-and-a-half-times the S$311.5 million recorded a year ago.

The profit was ahead of the average forecast of S$359.8 million of five analysts surveyed by Reuters.

The jump in earnings was largely due the recognition of earnings from Keppel Land's Reflections at Keppel Bay luxury condominium project.

Many of the units had been sold under a deferred payment scheme and the earnings were recognised in the current quarter, Keppel said.

Keppel and Singapore rival Sembcorp Marine, the world's number two rig builder, have seen strong orders over the past year as oil companies step up exploration activity amid stubbornly high oil prices.

Keppel recently surprised investors and analysts when they signed a letter of intent to build five semi-submersible rigs, valued at US$4.1 billion in total, from Sete Brasil.

Keppel's shares have risen by 24 per cent so far this year, outperforming the 13.7 per cent increase in Singapore's Straits Times Index. -- REUTERS







Track, Measure, and Visualize performance!

Read? XIRR/CAGR: Investor's true performance indicator! (6)

Read? How to know when I am wrong? (2)

How do I know is my current trading or investing strategy still working for me?

Simple. I track, measure, and visualise my performance.

I only started serious and diligent tracking and measuring from Jan 2003 onwards.

From Jan 2003 till Mar 2012, those months that P/L that is in Red!:

Feb 2005
Aug 2007
Jan  2008 Bloody Red!!!
Aug 2008 Bloody Red!!!
Sep 2008 Shit Red!
Oct 2008 Bloody Red!!!

As of now, 2008 is the only year that I was in Red!

What did I do in Nov 2008?

I QUIT active Contra trading till now!!!

I also stopped monthly review and switch to quarterly review and meeting yearly goal instead of meeting monthly target prior to Nov 2008.

We set our review period and evaluate our performance against our investing goals over our investing horizon. Are our strategy still working? Only we know ourselves. No one else can help us. But, we can't in the state of self-denial too.

In the stock market, there are no failures. Only hopeful or hopeless! - Createwealth8888




Tuesday, 17 April 2012

China seeks to expand role in Arctic

BEIJING: China will seek a larger role in the Arctic region during an upcoming visit by Premier Wen Jiabao to Iceland and Sweden and wants observer status in the Arctic Council, a senior official said Monday.


Wen will visit the two nations during a four-country visit to Europe from April 20-27 that will also take the premier to Germany and Poland, Vice Foreign Minister Song Tao told journalists.

"We hope to work together with relevant countries, including Iceland and Sweden, to contribute to peace, stability and sustainable development in the Arctic," Song said.

China already has the backing of Sweden to join the Arctic Council as an observer nation, he said.

While in Iceland, Wen will explore ways to expand bilateral ties, including cooperation on geo-thermal energy and research into the northern lights, Song said.

During his visit to Sweden, Wen is also expected to oversee the signing of an agreement to establish a Swedish industrial park on sustainable development, he said.

The Arctic Council is an intergovernmental forum promoting cooperation among eight Arctic States, particularly on sustainable development and environmental protection.

China is reportedly eager to expand its role in the arctic as the ice sheet melts there due to global warming, making it increasingly possible for ocean-going ships to navigate the resource rich region.

- AFP/wk

Createwealth8888:
 
Read? Keppel and ConocoPhillips to design first ice-worthy jackup rig for the Arctic Offshore
 
When The Artic is drilled, Kep Corp will thrill!!!!
 

What was I thinking and feeling in Mar 2009 Bear market low? (3)

Just For Thinking ...

Read? What was I thinking and feeling in Mar 2009 Bear market low? (2)

Did you read this ad in the newspaper?

"Profits of  US$6,179 .....   Thanks GURUxxxx, I can now use your methods to achieve financial freedom."

Yes. It is most likely to be true; but for how long??? It is not that moment or period that counts. It is sustainability and consistency over market cycles that really define your success in investing or trading.

Back to what I was thinking from Mar 2009 to early 2010 ...


Honeymoon in the stock market

From Mar 2009 onwards till early 2010; it is the honeymoon period in the stock market where newBEEs can easily find Cheese and thinking that they can now use their new found knowledge and skills in trading or investing to achieve financial freedom.



This is what I witnessed and even amazed when one newBEE was making really high returns from the stock market by hopping here and there among the wild flowers looking for Cheese. But once the honeymoon was over. The truth is that the newBEE is probably like ...

The stock market is always moving the Cheese. One must continuously adapt their knowledge and skills to find the moving Cheese. Our success in finding Cheese can only be determined after at least one market cycle Bull-Bear-Bull or Bear-Bull-Bear or better using two cycles.

Don't ever mistaken your honeymoon as your new Found to financial freedom!



Monday, 16 April 2012

Kep Corp: Bears are disappointed!





Good follow day!


K-Green Trust's Q1 earnings flat at $3.55m

By Carine Lee


K-Green Trust's profit for the first quarter ended March 31, 2012 was flat at $3.55 million despite a 4.4 per cent increase in revenue to $19 million.

DPU for the quarter was 0.56 cents.



Sunday, 15 April 2012

What was I thinking and feeling in Mar 2009 Bear market low? (2)

Read? What was I thinking and feeling in Mar 2009 Bear market low?

Were you among those waiting for STI 1,200 at Mar 2009 with plenty of cash for opportunity?

No one can know where is the market low including your favourite and world-renowned Gurus whom you follow God-like in every word that comes out from their mouth.

There are two types of Gurus in the market:

  1. They made money by conducting courses, seminars, workshops, talks, discussions in their forums and writing newsletters. They will give plenty of views on the market. When they are right; they will boast until they drop their pants. When they are wrong, hardly anyone will still remember what they have said.
  2. They are BBs in the market eating up our lunches and dinners by talking up or down the market after they may taken up large positions by becoming Talking Heads!!!
Createwealth8888 till today can still remember clearly when two very experienced cyber investing kakis in the stock market who believed in their favourite and trusted Guru's view in Mar 2009 were congratulating themselves for staying very cash rich in Mar 2009. One was 90% cash and the other 100% cash!!!

The moral of the story

Your most trusted Guru in the world cannot predict all future market low!!!

What is opportunity when he will never ring our door bell like Mr. Postman and telling us that he is at our door-step now?


Saturday, 14 April 2012

What was I thinking and feeling in Mar 2009 Bear market low?

We like to think that shorting in the Bear market will win big money. Is that really so?

Saturday, 28 March 2009, I wrote this post:

One honest Guru said that (but still many gurus are not telling us much about their losses in shorting the market), he gave back most of his profits built up from the last plunge.

This Guru was not any ordinary trader but the Chief Trainer and Strategist in one of the Kung Fu School of Trading in Singapore hor.

Read more? Does Shorting always win in a bear market?

14 Apr 2012 Createwealth8888's comments: This Guru continued to lose money despites he was one of those Kung Fu masters training many dsiciples to fight bulls and bears. Few months later the Guru also stopped blogging. Why did he stop blogging??? We can do our own thinking. LOL!


On Friday, 27 March 2009, I wrote this post:

Since STI has recovered 20.7% from its low on 9 Mar 09 at 1,457 , it is technically just at the gate of the BULL market. Let more bullies come and push the herd in. Is the rise mainly due to end of quarter Window Dressing? We shall see after next week.


One thing is that in forums we heard many shortlists Bear Paws were BBQ yesterday and some began to join the Bull camp.

Read? STI - sign of melting snow? Part 2


On 14 Apr 2012 Createwealth8888's comments: We like to think that we can catch the market rebound at Bear market bottom. But, the truth is that most of us can't as the market may rebound sharply and quickly in matter of weeks and not months.

MAS raises inflation forecast, tightens monetary policy

SINGAPORE: The Monetary Authority of Singapore has raised its forecast for Singapore inflation this year, prompting an adjustment to monetary policy.

It says headline CPI inflation will average 3.5 to 4.5 per cent in 2012, while core inflation is projected to average 2.5 to 3.0 per cent.

Both forecasts are a full one percentage point higher than the central bank's previous forecast ranges.

MAS also said it will increase the slope of its policy band slightly for a modest and gradual appreciation of the Singapore dollar.

Most economists had forecast no change in monetary policy.

While experts believe the central bank had come to this decision in the light of Singapore's stronger-than-expected GDP growth in the first quarter, they are concerned that a stronger Singapore dollar could adversely affect Singapore's open economy.

"In real terms, the Singapore dollar is rising more rapidly so that means competitiveness is being lost at a fairly significant pace ... which has important implications for Singapore's competitiveness," Credit Suisse director of non-Japan Asia economics Robert Prior-Wandesforde said.

"I think the impact will be felt most on the manufacturing side of the economy, or areas where perhaps Singapore doesn't have a niche advantage relative to other countries."

MAS, which uses the exchange rate as a tool to control inflation, explained that its new policy stance will help anchor inflation expectations, ensure medium term price stability and help keep growth on a sustainable path.

With economic activity turning out somewhat stronger than anticipated in the first quarter of 2012 and "resource markets" tightening further, MAS says core inflationary pressures have persisted.

MAS Core Inflation, which excludes private road transport and accommodation costs, rose from 2.4 per cent in Q4 2011 to 3.2 per cent in the first two months of 2012.

CPI All-Items inflation moderated from 5.5 per cent in Q4 2011 to 4.7 per cent in January to February.

MAS says inflation rates will remain elevated over the next few months, before easing over the remainder of this year.

- CNA/wm

To observe due diligence, observe yourself first.

For retail investors, due diligence is about understanding themselves and how an investment product fits in with their life goals, investment horizons and risk profiles



Createwealth8888's comments: How many retail investors seriously do due diligence and put the risks of losing large capital before dreaming of huge rewards.

Generally, the nearer an investor is to retirement, the lower his risk profile should be. In other words, as a rule of thumb, investors should concentrate on making their money work harder for them during their younger years, and on protecting their investment gains as they approach retirement age.

Gerald Foo
Chief Operating Officer
Walton International Group (S) Pte Ltd

RECENTLY, the Monetary Authority of Singapore (MAS) announced new measures to safeguard inexperienced retail investors from buying certain types of investments without knowing what they are buying into.

Since January, banks and other financial institutions have been assessing customers' financial knowledge and investment know-how before allowing them to buy exchange-traded funds, investment-linked insurance policies, structured notes and other complex instruments.

The latest move by MAS highlights the ongoing need for financial institutions to undertake due diligence in terms of "screening" potential customers, and ensuring that certain products are only sold to investors who understand the inherent risks of these asset classes.

However, due diligence cuts both ways. While it is true that financial institutions must practise due diligence, the same can also be said of retail investors themselves.

In a nutshell, retail investors should undertake two forms of due diligence before parting with their hard-earned money - understanding themselves and understanding the product.

Understanding themselves is arguably the most fundamental form of due diligence investors must undertake, because it provides an overall investment framework based on their objectives, risk profiles and investment horizons.

For starters, investors should identify certain goals or milestones in life (such as their retirement or their children's university education), and how far these milestones are from the present time (the investment horizon). Then, they should work out the amount of money they will need when these milestones are reached. Doing the above will give them a clearer idea of the rate of return that any investment should yield over the investment horizon in order to reach their goals.

Createwealth8888's comments: Most retail investors may have clear investing goals; but many do not have clearer ideas of realistic yield or rate of return over the investment horizon in order to reach their goals. They have not seriously put in the expected number in their investment yield or rate of return worksheet. Worse still many are just tracking and monitoring their portfolio and yet thinking that they are measuring their investment performance to reach their investing goals. Without proper measurement, it is difficult to revise investment strategies and necessary risk taking over market cycles to meet investing goals.

The next thing to do is to ascertain their risk profile, which indicates the level of "uncertainty" they can realistically stomach while investing. Risk profile entails many things - current age, preferred retirement age, investment know-how, risk tolerance and much more. Generally, the nearer an investor is to retirement, the lower his risk profile should be. In other words, as a rule of thumb, investors should concentrate on making their money work harder for them during their younger years, and on protecting their investment gains as they approach retirement age.

After ascertaining their risk profile, the next step would be to analyse their income and cash flow - their monthly take-home pay, expenditure patterns, savings levels and so on. This will give them a better idea of what kinds of lump-sum or regular investments they can undertake so that they do not over- or under-invest their spare funds.

Investors will only be able to judge the suitability of any investment - the second form of due diligence - when they understand themselves first.

Createwealth8888's comments: It is so easy for retail investors to go around reading investment and finance blogs and get so excited and motivated over some bloggers' investment strategies and success without seriously understanding themselves first and knowing that their account size must fix into their investment strategies and investing goals over the investment horizon.

Read? Account size really matters!

For example, when they are faced with a product that is considered low-risk, they ought to ask themselves if the projected rate of return is sufficient to meet their goals, given their investment horizons. However, if the product is labelled high-risk, they ought to consider if the returns are commensurate with the level of uncertainty that the investment entails, as well as their own ability to deal with a possible loss of capital if the investment turns sour.

Investment payouts

Besides the product's inherent risk, investors should also understand the conditions under which investment payouts are made. Some products hold the promise of high payouts - but only if a certain stringent criterion is met, or after a minimum investment period has elapsed. People who have invested in such products might be unable to liquidate these assets and hence find themselves short of cash as various milestones approach.

Hence, it is important to compare the product's estimated holding period (the projected amount of time before liquidation occurs) and your investment horizon. This is especially crucial if you plan to invest in mid- to long-term asset classes, such as land investment. For example, from Dec 1, 1998, to Dec 31, 2010, Walton International, a group of asset management and real estate companies, has fully or partially exited 43 land projects. Of these projects, the shortest holding period was 2.36 years and the longest was 19.35 years as audited by one of the big four audit firms.

Many kinds of investment products also come with various fees attached, such as expense ratios and management charges. Investors should scrutinise the fee structure to understand how the financial institution puts their money to work - or how much the institution pays its staff using their money. Either way, such fees will erode some gains and investors have to accept that reality.

Forex risks are another reality that investors of foreign-denominated assets have to accept. Some investors choose to avoid forex risks altogether by parking all of their funds in local investments. However, portfolio diversification is a great risk mitigator and therefore exposure to markets outside Singapore allows investors to avoid putting all of their eggs in one basket.

Perhaps the best way to mitigate forex risks would be to understand the fundamentals for various foreign currencies and their long-term trend vis-à-vis the Singapore dollar. Then, look for investments in currencies that are likely to appreciate against the Singapore dollar over the length of the investment horizon.

Even after you have fully understood a product, do not plunge into the investment straightaway. Do additional research to locate any similar products, and compare the various offerings in terms of potential returns, inherent risk, investment time frames and so on. Then choose the one that best fits your goals and needs.

Due diligence is a cumbersome process - but it is rightly and necessarily so. This is because investors should only part with their hard-earned money if they have a clear picture of what they want to achieve, and how they plan to go about doing so.

Friday, 13 April 2012

Creating wealth from the local stock market. A new all time high portfolio value!

"There is no happiness; there are only moments of happiness." - [anon; Spanish Proverb]


A moment of happiness. Just enjoy it!
A new all time high in portfolio value at today market closing price. LOL!

Thursday, 12 April 2012

Kep Corp - Breakout today!


Next move, can it break the strong resistance at $11.33?

Keppel to build five DSSTM 38E semis for US$4.12 billion for Sete Brasil

Keppel Offshore & Marine Ltd (Keppel O&M), through its subsidiaries, Keppel FELS Brasil S.A. and Estaleiro BrasFELS Ltda, has signed a Letter of Intent (LOI) with Sete Brasil Participações S.A. (Sete Brasil), for the design and construction of five additional semisubmersible (semi) drilling rigs based on Keppel's proprietary DSSTM 38E design.


The aim of the LOI is to facilitate Keppel O&M's preparation work on these potential projects, pending the signing of the final construction contracts. The total value of the contracts, if and when successfully agreed and executed between Keppel O&M and Sete Brasil, will be approximately US$4.12 billion.

Earlier in December 2011, Keppel O&M secured one semi to be built to the same DSSTM 38E design from Sete Brasil. Like the first rig, the additional five rigs are intended to support Brazil's exploration of its vast proven offshore oil and gas resources.

The DSSTM 38E design is an enhancement of Keppel's proven fifth generation deepwater solution, the DSSTM 38. With improved capability and operability, the DSSTM 38E is well suited to meet the stringent requirements of the deepwater "Golden Triangle" region, comprising Brazil, Africa and the Gulf of Mexico.

Sete Brasil's Chief Executive Officer, Mr Joao Carlos Ferraz, said, "We have entered into this LOI for five additional semis from Keppel, as we are confident of Keppel's strong track record in the design and construction of deepwater rigs, as well as their established yard in Brazil. It is full steam ahead for us in growing our fleet of rigs and vessels to support the E&P activities in offshore Brazil, and we need to partner shipyards like Keppel which can deliver the quality rigs in a timely manner which we are looking for."

Mr Tong Chong Heong, Chief Executive Officer, Keppel O&M, said, "We are pleased that Sete Brasil is moving ahead with the decision to order five additional semis on top of the first DSSTM 38E semi ordered late last year. With our proven track record at our Angra yard in Brazil, we believe we are in a good position to continue to contribute effectively to the growth of Brazil's oil and gas industry."

Jointly developed and owned by Keppel's Deepwater Technology Group and Marine Structure Consultants, the DSSTM 38E design is an innovative and cost-effective design. It is rated to drill to depths of 10,000 metres below the rotary table in 3,000 metres water depth. Its operational displacement is approximately 45,000 tonnes. Each rig will have accommodation facilities to house a crew of up to 160 men. The vessel is designed to stay in position via eight Azimuthing thrusters and the configurations comply with the American Bureau of Shipping Dynamic Positioned System (DPS-3) requirements.



The transaction mentioned above is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.



Realized or unrealized losses??? Does it seriously matter???

Read? No stop loss??? The truth behind Uncle8888's no stop loss strategy. Know what you are doing!

"Track, measure, and visualise investment performance" - Createwealth8888

Realised or unrealised losses?

The way that I track, measure, and visualise my investment performance and doing cash and portfolio management will  determine the relevance and significance of realising losses to recover cash for investing i.e. opportunity cost.

I measure Portfolio XIRR to visualise performance.

Portfolio = Current stocks value +  Investible Cash  = Capital + Realised P/L + Unrealised P/L

By just moving from Unrealised P/L to Realised P/L it will not significantly change the Portfolio XIRR unless I have the market wisdom of seeing a huge Bear appearing at the horizon soon.

Cash, Opportunity cost and Recovery

Cash rotting in the bank will NOT help me to recover my locked in negative return. We cannot recover losses in stocks by holding cash. No way!

Powerful ways to overcome your emotions in the stock market. Truly understand how you manage your cash and  portfolio is the key!

Read? More post on Portfolio Management





Wednesday, 11 April 2012

Lian Beng’s 9MFY2012 net profit up 10.0% yoy to S$40.5 million

  • 9MFY2012 net profit reaches 83.4% of FY2011 net profit

  • Group continues to grow ready-mixed concrete business segment in preparation for proposed listing of its engineering and concrete business in Taiwan

  • Cash generative business and sound investment brought cash and cash equivalent higher at S$178.3 million as at 29 February 2012

  • Strong construction order book of S$742 million as at 29 February 2012 keeps Group busy through FY2015

DBS TO INJECT RMB 2.3 BILLION INTO FAST-GROWING CHINA FRANCHISE

Proposed capital injection is an affirmation of bank’s commitment to China;


DBS China’s registered capital to rise by close to 60%

CHINA, SINGAPORE, 11 April 2012 - DBS Bank announced today that to facilitate the expansion of its fast-growing China franchise, it plans to inject RMB 2.3 billion into DBS China, thereby increasing its registered capital by close to 60%. The capital injection is subject to the requisite regulatory approvals and will be the first time that the bank will be infusing additional capital into its wholly owned China subsidiary since RMB 4 billion was injected during local incorporation five years ago.
 
DBS China also plans to continue investing to expand its rapidly growing franchise in the country. The investments will be in network expansion, headcount growth, infrastructure upgrades, consumer and corporate internet banking platform enhancements and other technology developments.

DBS China CEO Melvin Teo said, “As one of the first foreign banks and the first Singapore bank to be locally incorporated in China five years ago, DBS has come a long way and established a firm foothold in the areas of corporate banking, trade finance, cash management, treasury and markets, as well as wealth management. Notwithstanding the challenging economic climate, last year was a good year for the bank overall and for DBS China in particular. Our 2011 net profit doubled from a year ago, crossing the RMB 500 million mark for the first time."

Tuesday, 10 April 2012

Saving, Lending and Investing (5)

Read? Saving, Lending and Investing (4)

More and more perpetual bonds becoming available to small retail lenders with limited capital or money.

Buying bonds is lending out your money and it is NOT investing hor. You better know the difference yourself and don't get mislead by headline reading in the cyber world.

Perpetual bonds are worse as borrowers have no clear intention of returning back the borrowed money unless they can gain more out of it by returning back the money. Pow Jiak borrowing!!!

Once you have obtained BSM (Bachelor in Stock Market), it is not that difficult for you to make 4-6% from the stocks.

BTW, have you started taking and revising your under-graduate tutorial lessons? LOL


Read? Shocking Truth on some Stock Gurus!

Sunday, 8 April 2012

Investing and trading testimonials???

Just For Laugh....

There are so many investing and trading testimonials out there!!!

Let me present to you my testimonial on bowling.

 I have a Turkey in bowling!!!



So can I bowl?

Can you really believe me?

But, if I change it to trading testimonial like I have made $28,880 in Feb 2007.
Many more may choose to believe that I am really good at trading.
LOL!






Why self-directed learning in investing can be much tougher than we think? (2)

Read? Why self-directed learning in investing can be much tougher than we think?

When it is a job, most employees will have their KPIs set by their bosses. They will have at least one or two job performance appraisal with their bosses to review their KPIs. The outcome of that performance review will determine the employees' year-end bonus, pay increment, and even promotion prospect. At the same time, new or more KPIs and development plan may be set for the next 1 or 2 years for the employees to achieve.

I treat my stock investing as my second job. I seriously and diligently track, measure, and visualise my investing performance and  do whatever it is necessary to meet my year-end investing goals.  The only difference in this second job is that I don't have a boss to set my KPIs and don't have a boss to do performance review and appraisal. It is self-directed performance review and appraisal against my investing KPIs. The stock market will become the real boss to pay my year-end performance bonus and will also determine how far I can climb the investment ladder.

Unlike my first job the performance review is strictly private and confidential; the second job performance reviews are posted in the cyber world for all to see and comment.

BTW, if you feel that you have not been progressing well in your investment journey; may be you have not been treating stock investing as your second job.

Are there any investing KPIs set?

Or you have seriously mistaken tracking and monitoring as performance measuring and continuous job improvement?

Have you seriously conduct self-directed performance review and appraisal?

Do you have any investment development plan to climb the investment ladder?



Saturday, 7 April 2012

Why self-directed learning in investing can be much tougher than we think?

Just For Thinking ....

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder


In the stock market, every body is learning and re-learning from their own mistakes and from other publicised mistakes. Most of the time, every one is looking to sharpen up their investing skills to win. All these will definitely make our self-directed learning and re-learning in investing even more difficult and challenging. Why?

Because somebody must Lose!!!

When the winners win big in the stock market;  many others must collectively lose their money to the winners. The winners will take all at the moment; but the current winners may become the next losers in the future rounds. It is never a sure win game!

When we come to the stock market thinking of making more money from stocks; there will be many more others doing the exact to us thinking of how to take away more money from us.

Read? In the stock market where does the Money come from?

Read more? Articles related to market.
 
Self-directed learning is not that easy. Right? It is especially true for those who don't treat investing as their second part-time job. When investing becomes a job; it will mean that you will have to put in lots of time, effort and energy to earn that right to be in the market place to make that level of money. But,  actually how many of us are thinking that investing is our second job? This second job may even out last our very first job beyond the official retirement age in Singapore.
 
Has investing become your second job?
 
I believe many of us will need a second job as our first job may not be good enough for us to firmly secure our retirement financial needs after years of inflationary impact.
 
 
 

Friday, 6 April 2012

Kep Corp : 2012 Q1 reporting on 19 Apr 12


1 or 2 more big order win and a good Q1 earning will break it out from long consolidation?

Thursday, 5 April 2012

Sell or hold if got in at good buy price when market chiong?

Sometime, I may read that some people are struggling in their heart whether to sell or hold on to the stocks that were bought at good entry price when the market is rallying.

Here is the real people, real performance for your own evaluation. Sell or hold?

At least now you have Uncle8888's 10-years series model answers in long-term investing for your reference.




SEMBCORP MARINE'S PPL SHIPYARD SECURES US$218.5 MILLION CONTRACT TO CONSTRUCT A JACK-UP RIG FOR GULF DRILLING INTERNATIONAL LTD (Q.S.C.)

Singapore, April 5, 2012 : Sembcorp Marine’s subsidiary, PPL Shipyard has secured a US$218.5 million contract to build a jack-up rig from Gulf Drilling International Ltd (Q.S.C.) (GDI), one of the largest Middle East drilling companies.

Scheduled for delivery in the first quarter of 2013, the new rig will be built based on PPL Shipyard’s Pacific Class 400 series, an established proprietary design which represents the latest generation of high-specification jack-up rigs that are capable of operating in water depths of 400 feet and drilling to depths of 35,000 feet. Equipped with technologically advanced drilling capabilities, the rig is specially customised for the intended project and has accommodation for 150 personnel with full hotel services. On delivery, this jack-up rig will be the most technologically advanced drilling rig operating in Qatar.

Wednesday, 4 April 2012

Keppel Corporation bags contracts worth S$170m

SINGAPORE: Keppel Corporation said it has secured contracts valued at S$170 million to build two floating production storage and offloading (FPSO) upgrading projects via Keppel Shipyard.


The first contract is from SBM Offshore to refurbish and upgrade an existing FPSO vessel, which is expected to be completed by Q3 2013.

Keppel Shipyard's second contract is to modify and upgrade Bumi Armada's FPSO vessel, and work is expected to be completed in Q4 2013.

Since 2000, Keppel has delivered 14 FPSO/FSO conversion projects to SBM Offshore.

In 2011, Keppel Shipyard delivered FPSO Armada TGT 1 and FSO Sepat to Bumi Armada.

The contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation for the current financial year.



- CNA/cc

Tuesday, 3 April 2012

SEMBCORP MARINE’S JURONG SHIPYARD SECURES A US$568 MILLION CONTRACT

Singapore, April 3, 2012: Sembcorp Marine’s subsidiary Jurong Shipyard has secured a US$568 million contract to build a harsh-environment ultra-deepwater semi-submersible rig from North Atlantic Drilling Limited, a 74 percent owned subsidiary of Seadrill Limited (“Seadrill”).

The new rig will be constructed based on the Moss Maritime CS60 design – an enhancement of the Moss Maritime CS50E MKII harsh-environment ultra-deepwater semi-submersible rigs West Pegasus and West Leo which were delivered by Jurong Shipyard to Seadrill in March 2011 and January 2012 respectively. Delivery is scheduled no later than the first quarter of 2015.

This new ultra-deepwater harsh-environment semi-submersible rig will be built for a water depth rating of 10,000 feet with a maximum drilling depth of 40,000 feet. It will be an N-Class compliant 6th generation rig capable of maintaining position dynamically in deepwater and with thruster assisted mooring in shallow water in the North Sea and the Barents Sea. The rig is also engineered and winterized to carry out year-round drilling operations in such areas.

Monday, 2 April 2012

Asset Rich. Cash-flow Rich

Just For Thinking ....

Read? Understanding Asset and Liability (3)

A. You have an asset worth only $500K but it will generate 10% cash flow or passive income i.e. $50K

B. You have nice asset worth $1M but no cash flow from it.

A or B will make you feel richer and can buy drinks for your friends at gathering without feeling the pain in the pocket.

Like A or B?

Endowment products gaining in popularity

Savers, tired of low interest rates, are buying them for their higher returns


By SIOW LI SEN

(SINGAPORE) Sales of endowment products sold through banks have surged as more savers, despairing of low interest rates, buy them for their higher returns.


Createwealth8888:
Read? Insurance - Enhanced Endowment Policy Suck! (3)

Are buyers told that such product will take at least 16-18 years to JUST break even?

Really long long term investment!!!

Keppel AmFELS secures repeat jackup order from Mexico worth US$205 million

Brownsville Texas, 2 April 2012 – Keppel AmFELS LLC, a US wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has won a contract from Mexico's Perforadora Central SA de CV (Perforadora Central) to build a repeat jackup rig worth US$205 million.


Slated for delivery in 1Q 2014, this latest high specification unit will be based on the LeTourneau Super 116E design with leg lengths of 511 ft and the capability to drill wells up to 30,000 ft at a water depth of 375 ft.

Mr Tan Geok Seng, President of Keppel AmFELS, said, "Keppel AmFELS has had a great relationship with Perforadora Central that dates back to 2002. Once again, we are honoured to be building another jackup, our fourth, for Perforadora Central and very grateful to them for their continued trust and confidence in us.

"We have endured the post-Macondo challenges well. Having recently secured the Ocean Onyx semisubmersible major upgrade and a series of repairs, this newbuild jackup adds to a healthy workload through 1Q2014. We also continue to pursue projects from Pemex and we are optimistic about our chances."

In keeping with its tradition of safe, on-time and within-budget deliveries, Keppel AmFELS completed Tonala, an ultra premium KFELS B Class jackup rig for Perforadora Central in 2004, followed by Tuxpan, a LeTourneau S116E rig in 2010. The Papaloapan jackup, which was ordered by Perforadora Central in March 2011, is under construction and on track for delivery 1Q2013.

Perforadora Central expressed, "With each successive project, Keppel AmFELS has reaffirmed its expert project management and construction capabilities, as well as commitment to the highest standards of safety and quality.

"Our Tonala and Tuxpan jackups are turning in excellent performances for PEMEX in Mexico while construction of Papaloapan is ahead of schedule. We are just as confident that our latest newbuild by Keppel AmFELS will be another exceptional product to boost our track record and establish us as the foremost provider of drilling solutions in Mexico."

Perforadora Central is a Mexican company providing offshore and onshore drilling service mainly for PEMEX.

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year

DBS to pay $7.2 bln for Indonesia's Bank Danamon

SINGAPORE, April 2 (Reuters) - DBS Group Holdings, Southeast Asia's biggest bank, has agreed to pay S$9.1 billion ($7.24 billion) for Indonesia's Bank Danamon in shares and cash, stumping up a premium of around 52 percent to become the country's fifth-biggest lender.


Singapore-based DBS, which is making the move as part of its goal to become a leading Asia-wide bank, said on Monday it would initially pay S$6.2 billion in shares to buy a 67.37 percent stake from Singapore state investor Temasek Holdings.

It would then buy out Danamon's minority investors for cash, with both the share and cash payments pitched at 7,000 rupiah ($0.77) per Danamon share.

DBS said it would issue 439 million new shares to Temasek at S$14.07 each. The state investor already owns about 29 percent of DBS.

When combined with DBS' existing Indonesian assets, the acquisition would make DBS the country's fifth-largest lender.

In the same statement, DBS said Malaysia's central bank had allowed it to begin talks with a unit of Temasek to buy an effective 14 percent stake in Alliance Financial Group .

These acquisitions would be the first major deals by DBS Chief Executive Piyush Gupta, who took the helm of the Singapore-based lender in late 2009.

The biggest challenge will be persuading investors that DBS has not overpaid, as it did when it bought Hong Kong's Dao Heng Bank more than a decade ago.

Gupta, 52, has spent a large part of his career in India and Southeast Asia - areas where DBS is keen to grow - but he will be tested in Indonesia where rules on foreign bank ownership change frequently.

DBS had record net profit of more than S$3 billion ($2.39 billion) last year.



Understanding Asset and Liability (3)

Read? Understanding Asset and Liability (2)


Read? The place of residence you bought is not an asset?

Interesting question to think about. Right?

The international standard of computing our net worth is to exclude the value of our residential home as an asset and there is obvious reason to do that. I don't think the international standard don't suka suka exclude it.

In Toa Payoh Central, there will be many more 5 rooms HDB millionaires if they are to include the value of their HDB flats as part of their net worth.

But, how much of these folks will begin to live and feel like millionaire if most of their assets come from the worth of their million dollars HDB flat? How many of these "millionaire" can fire their boss tomorrow if they can't tahan their boss anymore?

These "millionaires" may be sitting on Gold mine; but without extracting the Gold out of the mine to exchange for basic needs. They will soon become starving "millionaires". Will they still feel like millionaire?

The moral of story

A conventional millionaire is the one who has other assets producing investment income as cash flow or can easily convert  part of their other assets into cash flow and without having to do much adjustment to their current life style by a major down grade.

May be we can classify our residential home as one extra line below the conventional net worth as contingency asset and that may make every property owners happy.
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