I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

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

Sunday 31 October 2010

Would you buy it now?

Read CJ on Trading Mentality?

The mind boggling question now is "You wanted to buy this company at a target price of $0.90 and today's at $1. Tomorrow the moment the market open, its at $0.90 cents, a total 10% drop in share price, could be due to weak market sentiments or due to bad fundamental results released.

Would you buy it now?"

Who are you in the stock market?

***Always remember that when a transaction is completed there is buyer/buyers and seller/sellers of different views. At the time of transction, who is right or who is wrong is still uncertain?

1. A disciplined Trader?

2. A confident Investor?

3. An emotional Trader or Investor?

Who will not dare to buy after seeing 10% drop in share price when market open?

A disciplined Trader?

He/she will either long or short it.

A confident Investor?

He/she will buy as the margin of safety is even better before price drop.

An emotional Trader or Investor?

Saturday 30 October 2010

CPL 3Q Result

YTD Sep10 Statutory PATMI increased 349% to S$751m

• 3Q Sep10 PATMI down 43% yoy to S$160m

– Due largely to lower recognition on completion of residential projects in Singapore

• Key events in 3Q10

– Ascott recycled stabilised assets into Ascott Reit

– Acquired prime Bedok Town Centre site for integrated retail-cum-residential development

– 5th residential development project in Vietnam

– Successful listing of CapitaMalls Malaysia Trust (“CMMT”) on Bursa Malaysia

– Formed CapitaValue Homes (affordable housing SBU)

• Group managed real estate assets totaled S$50bn

• Proactive Capital Management

– Strengthened financial flexibility with the issuance of an aggregate S$1b of bonds

– Strong cash liquidity of S$6.4bn

– Healthy Net Debt/Equity of 0.21

Read more?

Safe and early delivery of Floatel’s second unit earns Keppel US$1.1 million bonus

Accommodation rig is contracted to Petrobras for five years

Singapore, 29 October 2010 – Keppel FELS Limited (Keppel FELS) has surpassed its earlier track record for Floatel International (Floatel), with the delivery of the latter’s second semisubmersible accommodation rig, Floatel Reliance, 63 days early, within budget and without any lost-time incidents, meriting a bonus of US$1.1 million.

Floatel Reliance is contracted to Petrobras for five years, with operations expected to commence early 2011. The rig will be wet-towed from Singapore to Rio de Janeiro on a voyage expected to last up to 65 days.

Mr Peter Jacobsson, CEO of Floatel International said, “Securing a long-term contract for Floatel Reliance even before completion is a strong sign of the market’s assurance in the superiority of the new-generation KFELS SSAUTM 3600 design.

“Despite the stringent schedule, the Floatel and Keppel teams have worked safely together to complete the rig. We recognise the value in partnering a world leader like Keppel FELS, which we have leveraged successfully to become the premier contractor for new-generation and safe semisubmersible accommodation units.”

Sister rig, Floatel Superior, of the DSSTM 20NS design was delivered by Keppel FELS in March this year 43 days early, safely and within budget. Having completed a three-month charter for ConocoPhillips Australia, it has recently arrived in Norway and is being prepared for the charter with Talisman Energy Norge AS at the YME field this winter, followed by work for Statoil Petroleum AS.

Mr Jacobsson commented, “We are experiencing strong demand for our newgeneration floatels with good term rates. Floatel Superior has proven its worth for efficient and safe deployment. We are confident that Floatel Reliance will deliver similar success and perform to expectations as soon as it arrives in Brazil.”

Mr Wong Kok Seng, Executive Director of Keppel FELS said, “With our wellhoned strengths in design, engineering, project management and construction execution, we have successfully developed with Floatel outstanding accommodation rigs that offer the highest standards of health and safety features to safeguard the wellbeing of crew. We look forward to deepen this winwin partnership which we have built up over two record-setting rig deliveries to

Floatel this year. “We consider our projects successful only if they are completed safely. We thank

Floatel for acknowledging our safety achievement with a good bonus.”

Floating accommodation platforms provide additional living quarters for drilling and production personnel deployed for work in deepwater locations. Such support is needed during hook-up and commissioning in the development phase, for maintenance and upgrading during the production phase, as well as for decommissioning.

Designed by Keppel O&M’s Deepwater Technology Group, the KFELS SSAUTM 3600 accommodation semisubmersible was developed to meet growing demand for safe and greater-capacity living quarters. Keppel FELS previously delivered the first unit of this design, Safe Concordia, in 2005.

The six-column Floatel Reliance provides accommodation for 500 persons complete with full recreational facilities. It is cost-effective and capable of operating alongside fixed platforms, with a complement of a fully redundant Dynamic Positioning System, a high crane capacity and fire fighting capabilities.

Measure, Measure, Measure (3)

Peter Drucker once said, “What gets measured, gets managed.”

Read? Do you have one minute to update your portfolio?

One more guy came to ask me for the sample CAGR worksheet for his own portfolio tracking and performance measurement.

CAGR is still one of the best and effective way to measure and track our investment performance as it tracks the Returns over the investment period i.e. Returns per unit of time and we know that we can't be too conservative on our investment. We also need to protect our investment against potential losses and at the same time not too fearful of the market and also be mindful that holding too much cash for too long will have big impact to our CAGR.

Friday 29 October 2010

Wall Street Debunked: 4 Costly Myths Exposed

By: Lee Brodie

You know about Olympus, Zeus and the Greek myths but did you know Wall Street has a few myths of its own?

Perhaps they’re not as dramatic as Tristan and Isolde, nor as intense as Medea but they’re certainly as widespread.

In his new tell all "Smarter Than The Street” – CNBC contributor and Fast Money favorite Gary Kaminsky debunks common Wall Street myths.

Four of the costliest myths that could be destroying your wealth follow:

And yes, they are everybit as treacherous to your financial health as the Sea Sirens were to Odysseus. (Okay, we promise the bad puns stop here!)

Myth: Money Mangers Only Get Paid If You Do

It would stand to reason that if a fund loses money that it hurts your PMs wallet as much as it hurts yours. But that may not be the case.

It is true in the hedge fund world; a hedge fund manager’s compensation is closely tethered to returns but most of us don’t have enough money to enter a hedge fund.

(Most hedge funds require a minimum investment of $1 million according to Investopedia.)

Elsewhere in the financial services industry it works a little differently. “Portfolio managers get a base compensation and they get a bonus related to relative performance,” says Kaminksy.

That means the fund can lose money – your money - but the PM profits.

Case in point. You own a sector fund and that sector is down 20% for the year. Your manager returns a negative 7%. That manager beat the benchmark and is rewarded with a bonus.

You, however, aren’t so happy.

”The point here is not to assume that when your money manager makes money you make money. That’s not the way it works,” Kaminksy says.

Myth: Analyst 'Buy' Calls Mean Buy The Stock

Oh, you’ve read the headlines too many times. An analyst who’s been bearish on a sector for years has just issued a ‘Strong-Buy’ or ‘Outperform’ rating. But that doesn’t mean you should buy the stock.

”I’m amazed that just because a stock is rated a strong buy investors don’t know that doesn’t necessarily mean the analyst expects a positive return,” says Kaminsky.

Analyst who issue ‘Buy’ ratings do so to signal that the stock is best bet in its sector, but unless you must put money to work in the sector you may well do better elsewhere.

For example, Deutsche rated Citi a ‘Buy’ in August 2009. And it has outperformed its peers down about 3% while Wells is 9% lower, and JP Morgan 14% lower.

"When this analyst is evaluated at the end of the year, (the Street) thinks he's done an exceptionally good job," explains Kaminksy. However, had you put that same money to work in a myriad of other stocks you'd be a lot happier today.

What's the bottom line?

When you're reading a research report, identify whether the 'Buy' rating is a relative buy rating or an absolute buy rating.

* It’s worth noting that in this post we’re strictly talking about ‘Buy’ recommendations from a sell side analysts – so called because they typically work for brokerages that make a commission from the public’s selling (and buying) of stocks. By contrast buy side analysts typically work for mutual funds or pension funds.

You rarely hear their calls because their recommendations are proprietary.

Myth: Your Broker Has Your Best Interest At Heart.

Your broker has a dirty little secret that you probably don’t want to hear. He makes money when you buy his products. There, we said it. He’s not suggesting financial products out of the goodness of his (or her) heart. So it’s critical to know how he (or she) profits from your purchase.

”It’s amazing that people don’t ask how brokers are compensated,” Kaminsky says. “When consumers buy a house they ask a lot of questions about their broker’s commission.”

But not when they plunk down as much money or sometimes more on stocks and bonds.

”I encourage every investor to ask if their broker is being compensated because the financial product is something the firm is trying to push,” he says. “It may be a suitable product but people need to know.”

What’s the bottom line?

Do your own research, Kaminksy says, a broker should only complement your strategy. Remember, if you rely on the research of others you only know what they know.

Myth: Index Funds Are The Best Bullish Bet

You've read it in magazines, newspapers and probably in your financial history books. Over time the stock market has been the best place to invest. After all we're a nation of optimists and capitalists.

As a result you should put money into an index fund right? Whether it the S&P 500, the Dow, the Russell or some other benchmark, - if you’re bullish it’s a smart play.

Not so, says Kaminsky.

"When you’re indexed you’re fully invested and what the last decade has taught us is being fully invested 100% of the time is not the right strategy," says Kaminksy.

Instead he thinks it's much smarter to identify a handful of stocks that meet your pre-determined criteria (growth, dividend-payers, value names etc.) and make your moves accordingly.

And for those of you who argue you just want to park money in a fund and index funds are less expensive - Kaminsky doesn't buy it. "The idea of just putting money into an index fund because it has the lowest fee structure is a false strategy," he says.

Also he adds that some money managers are well worth those higher fees you pay, the trick is to do your research.

Thursday 28 October 2010

Trader or Investor?

Just for Laugh ...

Why must you think and identified yourself as trader or investor?

Why should it be???

Why I should I care???

I am only interested in making money from the stock market. There are two KPIs (Key Performance Indicator) to measure and track my money making capability from the stock market:

  1. Keep improving my CAGR - at least 10%
  2. Reach my Investing Goal - Financial Independence at the set time frame.

CapitaLand signs Conditional Joint Venture Agreement for fifth residential project in Vietnam

Pipeline of homes in Vietnam increases to over 4,500

Vietnam, Hanoi, 28 October 2010 – CapitaLand, through its wholly-owned subsidiary, CVH Cayman 10 Limited, held through another wholly-owned subsidiary, CapitaLand (Vietnam) Holdings, has signed a Conditional Joint Venture Agreement (“JVA”) with No Va Land Investment Group Corporation (“NovaLand”), a leading real estate developer in Vietnam, to jointly develop a residential site in District 9, Ho Chi Minh City, Vietnam. The signing ceremony held in Hanoi today was witnessed by Singapore Prime Minister Lee Hsien Loong and Vietnam Prime Minister Nguyen Tan Dung.

The approximately 9,000-square-metre site is located in Phuoc Long B Ward in Ho Chi Minh City’s District 9, an established populous area with amenities such as a supermarket, vocational school and planned sports and recreational facilities. CapitaLand and NovaLand plan to develop the site, located about 10 kilometres from the city’s Central Business District, into a residential development with approximately 500 apartments.

The residential development has an estimated total project development cost of US$40 million (approximately S$54.5 million). The incorporation of the joint venture company is subject to relevant approvals from the Ho Chi Minh City People’s Committee and the Ministry of Planning and Investment of Vietnam for the issuance of a foreign investment certificate. Upon approvals being obtained, CapitaLand will take a 70% stake in the project while NovaLand will own the remaining 30% stake from the injection of the site into the joint venture.

Mr Chen Lian Pang, CEO (Southeast Asia) of CapitaLand Commercial Limited and CEO of CapitaLand (Vietnam) Holdings, said, “We are confident of the outlook in Vietnam, underpinned by its strong economic growth, stable government and pro-growth regulatory environment. The country’s real estate market is supported by rapid urbanisation and a huge population of 86 million people of which more than half of them are under the age of 30. As urbanisation gathers pace and the middle class grows in tandem with the economy, demand for housing in Ho Chi Minh City and Hanoi is set to rise.”

Mr Chen added, “We are pleased to partner NovaLand in our fifth residential project in Vietnam. NovaLand is a reputable developer that possesses deep domain knowledge and an extensive network in the local real estate realm. CapitaLand will continue to explore opportunities to extend its presence in other real estate segments in Vietnam through strategic partnerships. We target to grow our current total asset base of S$400 million in Vietnam to approximately S$2 billion over the next three to five years.”

Mr Bui Thanh Nhon, Chairman of No Va Land Investment Group Corporation, said: “This is our first collaboration with a foreign developer and we are pleased to partner CapitaLand, one of Asia’s largest real estate companies. With CapitaLand’s international experience and strong proven track records in real estate development and project management as well as real estate financial services, we are able to leverage on each other’s expertise and domain knowledge. We are confident that our first residential project in collaboration with CapitaLand will be successful and we hope that this will be the start of a fruitful and win-win partnership for more projects in the future.”

The site is strategically located at Do Xuan Hop Street, Phuoc Long B Ward in District 9, at the fringe of the city centre in Ho Chi Minh City. The development sits close to the future Ho Chi Minh - Long Thanh Highway and Hanoi Highway. It is within close proximity to the proposed Saigon Sport City & Saigon Golf Mixed-use Development projects, as well as Ho Chi Minh Vocational College of Technology and Saigon Hightech Park

Noble Group : Proposed an issue of $350 million perpetual capital securities

Commodities firm Noble Group said on Wednesday it had proposed an issue of $350 million perpetual capital securities at an interest rate of 8.5 percent per annum. It said the estimated net proceeds of $344.2 million will be used for general corporate purposes

Tuesday 26 October 2010

Can trader keep on winning?

History of two Great Traders

Read? Jesse Lauriston Livermore

Through unknown mechanisms, he yet again lost much of his trading capital, accumulated through 1929. Thus, on March 7, 1934, the bankrupt Livermore was automatically suspended as a member of the Chicago Board of Trade. It was never disclosed to anyone what happened to the great fortune he had made in the crash of 1929, but he had lost it all

Read? Richard Dennis

In the Black Monday stock market crash of 1987, he reportedly lost $10 million,[8] with a total of $50 million reportedly lost in 1987-88.[2] In 1990 his firm settled investor complaints of his failure to follow his own rules, for over $2.5 million, without admitting or denying any wrongdoing.[9] He also managed funds for some time in the mid and late 1990s, closing these operations after losses in the summer of 2000.

Japan to lend JBIC up to $18.4 bln from FX reserves

Read? Hyflux

TOKYO (Reuters) - Japan's government said on Tuesday it will allow the Japan Bank for International Cooperation (JBIC) to borrow up to 1.5 trillion yen ($18.44 billion) from the country's foreign exchange reserves to support energy and infrastructure projects overseas.


May be JBIC will have more resources to go with Hyflux??? No far no new projects announcement from Hyflux??? 

Dow Closing In On Two-Year High

the tickerspy.com Staff, On Tuesday 26 October 2010, 5:08 SGT

Stocks posted moderate gains, but after flirting with a two-year high, the Dow was unable to get over the hump, as stocks lost steam late in the day. With both the Dow and Dow Transports closing in on two-year highs, it could be a nice bullish signal if both indices are able to break out. We remain bullish on the market in the near term, expecting a solid close to the year for stocks.

Stocks rose on the day, with the Dow up 31 points to 11,164. The S&P added 3 points to 1,186, while the Nasdaq gained 11 points to 2,491. Oil rose 83 cents to $82.52 a barrel, while gold climbed $13.80 to $1,338.90 an ounce.

On the economic front, the National Association of Realtors said existing home sales spiked by 10% in September to an annual rate of 4.53 million from a revised 4.12 million in August. Economists had forecast a September rate of 4.25 million, and the gain was the largest in nearly 28 years.

Monday 25 October 2010

Inflation in Singapore hits new high

SINGAPORE: Singapore's consumer price index (CPI) increased by 3.7 per cent on-year in September.

The Department of Statistics said this was a result of higher costs of transport, housing and food.

Excluding accommodation costs, the consumer price index was 3.8 per cent higher.

When compared to August, DOS said the CPI crept up by 0.1 per cent due largely to higher costs of housing, food as well as "recreation & others"

Excluding accommodation costs, the consumer price index fell by 0.1 per cent.


Sunday 24 October 2010

Property Developers and their REITs (2)

Read? Property Developers and their REITs

One good example is the recent Kepland and K-REIT asset swap. The developer takes the route of higher and faster rate of returns and leaving the slower returns to K-REIT and its unitholders. Get it?

Tue, Oct 12, 2010

The Business Times

(SINGAPORE) Keppel Land and its unit K-Reit Asia have agreed to an asset swap with transaction values totalling almost $2 billion. Keppel Land is selling its one-third stake in Phase One of Marina Bay Financial Centre (MBFC) to K-Reit for $1.427 billion or $2,450 per sq ft of net lettable area, which includes a rental support. It will reap a net gain of some $321 million from the divestment.

MBFC Phase One comprises two fully leased Grade A office towers and the Marina Bay Link Mall. Keppel Land's stake, including a rental support of up to $29 million, was valued at $1.421 billion as at Oct 5.

At the same time, K-Reit is offloading Keppel Towers and the adjacent GE Tower in Tanjong Pagar to Keppel Land for $573 million.

Keppel Land will convert both office towers into a freehold residential project and will fork out a development charge of some $5.8 million. This means the total price works out to $1,201 psf per plot ratio. Both buildings were valued at $576 million assuming they were put to residential use.

The transactions will bring Keppel Land net cash proceeds of $812 million and cut its gearing sharply. On a proforma basis, its net debt to equity ratio as at Dec 31 last year will drop to 0.5 per cent from 22 per cent.

This will support Keppel Land in its search for property deals in Singapore, China, Vietnam, Indonesia and India, said the group's chief financial officer Lim Kei Hin at a briefing yesterday.

The proceeds 'will allow us to have virtually zero debt and we will have enough fire-power in our arsenal to be able to pursue acquisitions of both residential and commercial properties,' he said.

K-Reit, on the other hand, will have to borrow $821 million from banks to pay for the MBFC stake. This is after using $570 million from the sale of Keppel Towers and GE Tower and $41.5 million from its rights issue last year for the purchase. K-Reit's aggregate leverage will rise to 39.1 per cent after the deals, up from 15.2 per cent as at June 30.

The bundled deal will be subject to the approval of Keppel Land's minority shareholders and K-Reit's minority unitholders at their respective extraordinary general meetings. Keppel Land owns a stake of 45.5 per cent in K-Reit as at March 2.

According to Mr Lim, Keppel Land got a good opportunity to acquire prime freehold land in the central business district and ride on growing demand for city living.

In particular, Tanjong Pagar has come under the spotlight as more high-end condominiums emerge in the area. Recent launches such as Altez and 76 Shenton have attracted buyers willing to splurge more than $2,000 psf. Plans to relocate the ports and the Malaysian railway station are also paving the way for rejuvenation.

The authorities have approved the conversion of Keppel Towers and GE Tower to residential use. Together, the sites have a gross floor area of 481,800 sq ft and Keppel Land plans to launch a 620-unit project there in two to three years' time, after existing office leases end.

The residential project will comprise a 45-storey tower and a 26-storey tower, with commercial space at ground level.

For K-Reit, the transactions gave it a chance to expand and upgrade its portfolio, said CEO of the Reit's manager Ng Hsueh Ling. While both Keppel Towers and GE Tower are enjoying 'good' occupancy levels, they are 19 and 17 years old respectively and will need more maintenance with time, she explained.

Meanwhile, the purchase of the MBFC stake will raise K-Reit's presence in Raffles Place and Marina Bay. Analysts have long expected Keppel Land to divest its MBFC stake to K-Reit, but some were surprised by its purchase of Keppel Towers and GE Tower. At the briefing, several also raised questions about the pricings of the deals.

Asked if K-Reit's MBFC stake purchase would be yield-accretive for unitholders, Ms Ng said that it would 'generate greater returns' but details would be released only when the circular has been lodged with and approved by the authorities.

According to Standard Chartered analysts Regina Lim and Wong Yan Ling in a note, the price K-Reit paid for the stake is above the 'consensus estimate' of $2,300 psf.

UOB-Kay Hian analyst Vikrant Pandey reckoned K-Reit might have obtained higher bids for Keppel Towers and GE Tower if there was an open tender.

Cushman & Wakefield managing director Donald Han felt that transaction prices for both the MBFC stake and Keppel Towers and GE Tower are in line with market levels. The bigger problem for investors today lies in finding deals to put their money in, he said

Harsh lessons from 1997/98 and 2007/08 stock crisis

Fortunately, my cautious approach to the stock market is shaped by my relatives' serious investment failure (One of them almost bankrupt) during Asian stock crisis in 1997/98 and especially CLOB saga and Currencies crisis that leaded me to focus only in local stock market to eliminate the forex and foreign monetary policy risks.

And 2007/08 Sub-prime crisis has further shaped me to believe that the following approaches may not be right for me:

  • Aggressive "Averaging Down" in a falling market can be a double-edged sword as there is no way to tell that the market is just pulling back, correcting or heading towards the next stock crisis.
  • Leveraging can force me into really weak spot and cut losses at the worst time. 
  • Stocks with weak sponsorship or owners are to be avoided as they are less able to raise massive Right Issues to strengthen up their balance sheet to survive or to seek investment opportunities.

More Singaporeans consider buying overseas properties

SINGAPORE: The strong Sing dollar and rising property prices in Singapore have prompted Singaporeans to consider investing in properties overseas.

More than 6,000 visitors turned up at an exhibition on overseas properties on Saturday, the first day of the two-day event.

More than 150 properties worldwide are being put up for sale at the exhibition at Marina Bay Sands.

Among the properties is The Elements@Ampang in Kuala Lumpur. At about S$400 per square feet, the freehold property saw half of the block's units being taken up when the sale was launched in July.

Land & General Berhad's sales & marketing manager, Lim Kok Yee, said: "With a HDB flat [costing] about S$600,000, you can easily get about four units of this [The Elements@Ampang].....[On] the returns for capital gain, we are looking easily at about 15-20% in terms of three years to come."

The weaker euro has also made properties in Europe more appealing.

Ocean Villas Group's director, Rebecca Smith, said: "Singaporeans, unfortunately, can't get 100% finance loan most of the time, but 70% of finance in these properties is possible."

Still, buying properties in Spain now is about 50 percent cheaper than several years ago as property prices there have reached rock bottom, said property developers.

But property agents advise investors to consider other substantial charges including property taxes, interest rates and even property management fees.

- CNA/ir

Saturday 23 October 2010

Small Reits may not attract enough investor attention to fund asset growth


NEW real estate investment trusts (Reits) listing in Singapore should be sizeable - or risk being 'orphans'.

The listing of GLP, in particular, is likely to encourage other companies in the region to look at Singapore as a listing venue. It should open the Singapore market up, according to Tracey Woon, head of global banking at Citi Singapore.

'Size matters,' says Tracey Woon, head of global banking at Citi Singapore. 'People do look at who the sponsor is, the pipeline and the growth potential. It is a vicious circle - when you are a small Reit, you may not attract enough investor attention to fund your asset growth. So without the size, you might run the risk of being an orphan Reit.'

In the eight years since Singapore's first Reit, CapitaMall Trust, was listed in 2002, the market here has grown to 24 Reits. Of these, five have a market cap of less than $500 million and nine have a market cap of less than $1 billion.

The latest additions to the local Reit scene are Mapletree Industrial Trust (MIT) and Global Logistic Properties (GLP), which have just debuted.

The back-to-back launches of the two IPOs - which raised more than $5.1 billion - showed the Singapore market is deep enough to absorb such mega listings.

In the eight years since Singapore's first Reit, CapitaMall Trust, was listed in 2002, the market here has grown to 24 Reits. Of these, five have a market cap of less than $500m and nine have a market cap of less than $1b.

'Liquidity is not an issue. We never doubted that GLP and MIT would be well received,' says Ms Woon, who handled both listings.

The listing of GLP, in particular, could encourage other companies in the region to look at Singapore as a listing venue.

Some companies, such as AIA Group, have chosen to list in Hong Kong, believing the market there - particularly the retail investor pool - is deeper. 'But GLP should open the Singapore market up,' says Ms Woon.

Derek Zhu, Southeast Asia director of Global Investment Banking at Citi Singapore, says the amount of retail money available in Singapore extends far beyond the cash that comes in through ATM applications.

Plenty of retail interest comes from clients who request share placements through brokers and private banks, he says.

GLP's public tranche was 11 times subscribed, which means $2.22 billion in applications poured through from ATMs. Its balloting results showed 22 successful public applicants first wanted a million shares or more, coughing up at least $1.96 million upfront, as each share cost $1.96. Each of these applicants was given 10,000 shares.

MIT's public tranche was subscribed 27.7 times, translating to about $2.1 billion in application money. And as with MTI, there were 122 successful public applicants that first sought at least one million units, translating to a $930,000 upfront payment per head. These successful applicants were allotted 12,000 units each, based on the ballot.

Unlike Hong Kong, Singapore does not have a minimum size for share sold to the public, nor a claw-back requirement for the public tranche of popular IPOs.

Hong Kong listing rules state that at least 10 per cent of an IPO must be allocated to the public. And this can rise to 30 per cent if an IPO is 15 times subscribed, or go as high as 50 per cent if it is at least 100 times subscribed.

'Whether this is an advantage is a matter of perspective, but Hong Kong regulates the minimum size of the public offer and increases it when the deal is heavily subscribed, whereas Singapore doesn't regulate it, so issuers and banks have more flexibility,' adds Mr Zhu.

Good Part -Time Business To Own (4)

Read? Good Part -Time Business To Own (3)

Many people dream of setting up a business and I also often hear it from colleagues, friends and relatives.

What is business?

businessdictionary.com defines it as "Economic system in which goods and services are exchanged for one another or money, on the basis of their perceived worth. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis."

Note the key points from the above definition:

  • goods and services are exchanged for one another or money, on the basis of their perceived worth
  • requires some form of investment
  • sufficient number of customers to whom its output can be sold at profit on a consistent basis."
From the key points in the definition of business, it is quite obvious that my economic activities in the stock market qualified as a part-time business as  I put in my investment for stocks; exchange stocks for money on the basis of their perceived worth and I sold them at profit on a consistent basis. Customers are never a problem.

Anyone else interested in setting this part-time business? I can share with you. No problem.

No fixed overheads and the goods are rarely perishable.

Property Developers and their REITs

Growth and Income

Most big property developers have their own REITs. Why? May be they can see clearly the differences between growth and income.  Property developers are more willing to take higher risks for higher rate of returns so they themselves go for growth and pass the incomes to their REITs.

So when they see higher rate of returns are not possible in the future they will dump these assets into their REITs to recover as much capital as possible and to re-cycle these capitals back to higher risks higher returns projects.

Get it? By the same principles, do you still think that REITs can acquire under-valued assets?

Taming the Bull and the Bear in me!

Read? Many faces of Bull and Bear

Read? Measure, Measure, Measure - Part 2

To tame the Bull and the Bear in me, I watch CAGR of my portfolio very closely as the value of CAGR is influenced by two factors:

  1. Holding period: Doing nothing and staying cash over a prolong period is not acceptable and counter-productive. (Too Bearish!)
  2. Protecting against losses so position sizing to minimize losses is even more important. (Too Bullish!)

IPO Fever back again!

Just for Laugh ...

Quite a number of people asked me: "Got tio GLP or MIT bo?". I replied them that I was not interested in  IPOs and they gave me that strange look on their faces as these two IPOs were the talk of the town and I was not interested at all? Strange, right?

I think it must be a long time since I last applied for IPO. I have become a greedy pig in the stock market and no longer happy in just getting lunch-box or kopi-O from the stock market.

Friday 22 October 2010


Singapore, October 22, 2010 - Sembcorp Industries announces that it is acquiring all remaining shares in The China Water Company (CWC) not already held by Sembcorp’s municipal water subsidiary, Cascal. The company signed a sale and purchase agreement today with CWC’s only other shareholder, Waterloo Industrial Limited (“Waterloo”), for its 13% stake in CWC.

The consideration for the 13% shareholding in CWC (including the assignment of Waterloo’s existing shareholder’s loan to CWC) is the equivalent of US$12.8 million (S$16.7 million) in Sembcorp Industries shares, amounting to a total of 3,630,192 new shares to be issued by Sembcorp. The consideration was arrived at on a willing buyer willing seller basis, taking into account the net tangible asset value of CWC Group.

Upon completion of the transaction, CWC will become a 97.66% subsidiary of the Sembcorp Group. CWC invests in and operates municipal water facilities in six locations in China: Fuzhou, Qitaihe, Xinmin, Yancheng, Yanjiao and Zhumadian.

This acquisition is not expected to have a material impact on the earnings and net asset value per share of Sembcorp Group for the financial year ending December 31, 2010.

Keppel FELS enters into Letter of Intent with Mermaid for two newbuild jackup rigs worth US$360 million

Createwealth8888: Kep Corp playing catch up with SML?

Singapore, 22 October 2010 – Keppel Corporation Limited wishes to announce that its wholly-owned subsidiary, Keppel FELS Limited (“Keppel FELS”), has entered into a Letter of Intent with Mermaid Maritime Public Company Limited (“Mermaid”) to build two KFELS B Class jackup rigs worth US$360 million. In addition to these, Mermaid will have options to build another two similar jackup units.

In the event that the proposed deal proceeds, the first two jackup rigs will be scheduled for delivery on 1 December 2012 and 1 March 2013 respectively. If exercised, the options for the additional two rigs are expected to bring the total contract value to above US$700 million.

Further announcement will be made in due course if and when the rig construction and option contracts are executed.

The Letter of Intent with Mermaid is not expected to have any material impact on the net tangible assets or the earnings per share of Keppel Corporation Limited for the current financial year.

Thursday 21 October 2010

Keppel Merlimau Cogen commences 800 MW expansion

SINGAPORE, 21 October 2010 – Keppel Energy Pte Ltd (Keppel Energy), a whollyowned subsidiary of Keppel Corporation Limited, will commence the 800 MW expansion of its natural gas-fired Keppel Merlimau Cogen plant (KMC), on Jurong Island.

Expected to be completed by 2013, the expansion will boost KMC’s generation capacity to 1,300 MW from its current capacity of 500 MW.

When completed, KMC will be fuelled by both piped natural gas and Liquefied Natural Gas (LNG) to be supplied from the new Jurong Island LNG terminal. The total investment is expected to be around S$900 million. Keppel Energy will be using internally generated cash and external borrowings to fund the expansion.

Dr Ong Tiong Guan, Managing Director of Keppel Energy, said, “The expansion of KMC is a significant milestone in our growth strategy. With the expansion, Keppel Energy will be able to capture opportunities from the evolving energy market in Singapore.”

The turnkey contract for the expansion was awarded to ALSTOM Power Singapore Pte Ltd and ALSTOM (Switzerland) Ltd. A long-term service contract for major maintenance of turbines has also been awarded to ALSTOM Power O&M Ltd and ALSTOM Power Singapore Pte Ltd.

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

Keppel posts 8.4% growth in Q3 net profit


KEPPEL Corporation's net profit attributable to shareholders for the third quarter ended Sept 30, 2010 rose 8.4 per cent from $319.6 million a year ago to $346.3 million.

Revenue, however, fell 19.4 per cent from $3.04 billion to $2.45 billion for the same period.

For the nine months ended Sept 30, 2010, net profit attributable to shareholders rose 10.1 per cent to $1.02 billion, before taking into account last year's exceptional gain of $422 million from the disposal of SPC which was partially offset by impairment of non-performing assets.

Taking into account the disposal, net profit fell 24.5 per cent from $1.3 billion to $1.02 billion.

Revenue for the same period shed 20.4 per cent, from $9.22 billion to $7.34 billion.

Earnings per share for the quarter rose 7.5 per cent from 20 cents to 21.5 cents.

For the nine months ended Sept 30, 2010, earnings per share rose 9.2 per cent from 57.8 cents to 63.1 cents. After taking into account the SPC disposal, earnings per sharefell 25.1 per cent from 84.2 cents to 63.1 cents.

Biosensors Acquires Bifurcation-Stent Specialist Devax

Singapore 21 October 2010 – Biosensors International Group, Ltd (“Biosensors” or the “Company”, Bloomberg: BIG SP) today announced the acquisition of certain assets of Devax, Inc., a maker of specialty stents, for a total consideration of USD 5.7 million.

Headquartered in Irvine, California, US, Devax develops the AXXESS™ drug-eluting stent (DES) system designed specifically to treat the complex type of coronary artery disease that forms at the intersection of two vessels. Such bifurcation lesions occur in an estimated 15% to 25% of all patients undergoing percutaneous coronary interventions (PCI). Coronary bifurcations are prone to develop atherosclerotic plaque because of turbulent blood flow and high shear stress near the main branch and the adjacent side branch.

“The Devax AXXESS drug eluting stent is a natural complement to our existing product portfolio”, said Biosensors President and CEO Jeffrey B. Jump. “We have a large and growing base of clinical data demonstrating the unique benefits of our BioMatrix DES family of stents for treating main-branch lesions. The Devax AXXESS stent combines the same powerful combination of our proprietary Biolimus A9 drug and biodegradable polymer on a platform specifically designed for treating bifurcations safely, quickly and efficaciously.”

Treating bifurcation lesions is challenging, and existing provisional techniques that rely on standard main-branch stents have historically reported lower procedural success rates, higher procedural costs, longer post-procedure hospitalization periods, and higher rates of clinical and angiographic restenosis, as compared to treatment of lesions that do not involve bifurcations.
The AXXESS DES consists of a self-expanding, conically-shaped nitinol stent – designed to conform to the specific anatomy of bifurcations – coated with a biodegradable poly-lactic acid polymer eluting Biolimus A9®, a highly-lipophilic drug designed specifically for use in drug-eluting stent systems. The biodegradable polymer and Biolimus A9 were used in the AXXESS DES under license from Biosensors, and are the same components used in the Company’s BioMatrix™ range of drug eluting stents.

The AXXESS DES received CE Mark approval in August 2010, supported by the positive results from clinical trials designed to assess device safety and efficacy in treating coronary bifurcation lesions. One-year results from the DIVERGE trial – a prospective, multi-center study of 302 patients across 16 sites in Europe, Australia and New Zealand – were published in the Journal of the American College of Cardiology (JACC) in March 2009. The study demonstrated a low overall MACE rate (9.3%) and a low rate of late stent thrombosis (0.3%) in patients treated with the AXXESS DES. DIVERGE is the largest study conducted to date with a drug-eluting stent specifically designed for treating coronary bifurcation lesions.

The Company wishes to state that the purchase consideration of USD 5.7 million is from an existing cash resource and internally-generated funds. The acquisition is not expected to have a material impact on the consolidated earnings per share or net tangible assets of the Group’s financial year ending 31 March 2011.

Good Part -Time Business To Own (3)

Read? Good Part -Time Business To Own (2)

BTW, have you been to Singapore Wet Market? If you have been to a wet market before visiting stalls selling fishes. You may then understand my part-time business. Quite similar.

She will wake up at middle of night and travel to the Jurong Fishery Port Wholesale market to pick her favourite fishes and buys them at lower price and goes back to her stall at the wet market and sells them at higher.

On some day when the price of the fishes are cheaper she will buy more; and when the fish prices are higher she will buy less. She also prefer like to buy her favourite fishes as she have more confidence that these are types of fishes that her customers will like to buy and are willing to pay them at higher price.

Technically, I am doing the same thing in my part-time business. I am buying my favourite fishes from bears and anticipate that the bulls are willing to pay higher price for them. Any different from the fishmongers at the wet market?

Wednesday 20 October 2010

Asia risks repeat of 1997 crisis: World Bank

Huge capital inflows boost regions' stock, property markets, fuel new bubble



THE World Bank yesterday warned of the dangers of a repeat of the 1997 Asian financial crisis if countries fail to respond to challenges posed by massive capital inflows into some of the emerging economies of the region.

East Asian economies are enjoying a 'robust recovery' which promises to continue throughout this year and beyond but there are 'rising risks', the World Bank said in its latest East Asia and Pacific Economic Update.

In an unusually blunt warning, it said that the heavy capital inflows 'combined with ample domestic liquidity and rising confidence have boosted stock markets, real estate prices and other asset values in some (East Asian) countries - precipitating fears of a new bubble'.

All this 'presents an emerging policy challenge and a growing risk to macroeconomic stability'.

Japan's Finance Minister, Yoshihiko Noda also flagged his concern yesterday over excessive capital flows to emerging economies which, he said, are boosting currencies. He called on G-20 finance ministers meeting in South Korea this week to find ways of stabilising currencies.

The bank also noted that 'memories remain fresh of the Asian financial crisis that ended with well known and unfortunate consequences'. Yet the recent run up in Asian equity prices has been twice as large as that which preceded the 1997 crisis, it said.

'Authorities in East Asia need to take adequate precautions to ensure that they do not repeat the same mistake twice in (the space of) slightly over a decade,' the World Bank said.

Short-term borrowing from banks overseas - a major factor behind the 1997 crisis - is again on the rise and loan maturities have been shortening of late, noted World Bank chief economist for the East Asia and Pacific region Vikram Nehru at a briefing in Tokyo yesterday.

Authorities in East Asia have been progressively withdrawing monetary and fiscal stimulus from their economies but this process might have to be accelerated in line with demand pressures generated by inflows of foreign capital fleeing low yields overseas, he suggested.

Exchange rate interventions have led to currency appreciation in places such as Indonesia, Malaysia and Thailand but other measures such as capital controls (which have not been employed since the Asian financial crisis) are being contemplated now, the World Bank noted.

On the positive side, output throughout East Asia has recovered to above pre-crisis levels, the World Bank reported. Real GDP across the region is expected to rise to 8.9 per cent in 2010 (or 6.7 per cent if China is excluded), which is well ahead of the regionwide expansion of 7.3 per cent in 2009.

'Economic expansion is projected to slow to about 7.8 per cent in 2011 as spare capacity become scarce, fiscal and monetary stimulus measures are gradually unwound and economic growth in the advanced economies remains relatively flat.'

For all the continuing recovery in East Asia, it remains, as in the case of advanced economies, a relatively 'jobless recovery', Mr Nehru noted. Although output initially fell faster than employment after the global financial crisis, employers are now seeking to maximise productivity by minimising new employment.

Certain 'middle income' economies in East Asia are meanwhile 'losing competitiveness', he noted as they relinquish their lead in labour intensive manufacturing without yet succeeding in breaking into more sophisticated and higher value-added areas of economic activity.

The world Bank report suggested that middle income countries (excluding China) need to increase investment, raise skills and encourage innovation if they are to eventually attain high income status.

In Malaysia, the Philippines and Thailand, fixed investment is still well below levels reached before the Asian financial crisis and below levels that Japan, Korea and Singapore achieved during their economic take-offs.

The stock of capital per capita (in these countries) remains very low, the World Bank noted. 'More human and physical capital accumulation will help boost growth, support innovation and technical progress and help firms move up the value chain,' it added.

Saving - My CPF

I save 28.5% every month but it is through CPF!

Govt really made us save slightly more than 50% for medical and retirement.

Good Part -Time Business To Own (2)

Read? Good Part -Time Business To Own

I don't understand why people can't accept my part-time business.

Is that woman selling fish at wet market doing a small business? Yes right!

Most people have no problem to identify that woman is doing a small business. She chooses her fish at the wholesale market and buys them at lower price and then sells her fish at higher price to her customers and pockets the differences as profits.

So is there any difference between my part-time business and that woman's fish business?

She buys it lower from wholesale and sells it higher to her customers while I buy it lower from the bears and sell it higher to the bulls. Any difference between her business and my part-time business? No right!

Tuesday 19 October 2010

NOL Group reports US$282 million third-quarter profit

US$421 million turnaround from 3Q 2009; revenue 55% higher

SINGAPORE, 19 OCTOBER 2010 – NOL Group today reported net earnings of US$282 million for the third quarter of 2010, a US$421 million turnaround from the US$139 million net loss in the third quarter of 2009. NOL said revenue in the third quarter improved 55% to US$2.4 billion.

The Group has now reported net earnings of US$283 million through three quarters of 2010. It lost US$530 million during the same period last year.

“Strong demand and an improved rate environment have helped us turn around our performance,” said Group CEO Ronald D. Widdows. “Our emphasis at this point is on operating efficiency and cost containment to ensure that we maintain our momentum.”

The Group’s Core EBIT (Earnings Before Interest and Taxes) for the third quarter was US$319 million compared to a Core EBIT loss of US$115 million in the same quarter a year ago. For the first three quarters in 2010, Core EBIT was US$359 million compared to a Core EBIT loss of US$468 million for the first three quarters of 2009.

CPL - Bought back @ $4.06

Hand itchy for Round 17!

On Monday ...

On Tuesday

Reversal soon?

Monday 18 October 2010

K-Green posts Q3 net profits of S$4.4 mln


K-Green, which was listed on the Singapore Exchange on 29 June, also reported its net profits todate, which stood at $4.57 million.

Based on K-Green's forecast of $3.61 million, its net profits to date was 26.5 per cent higher than predicted, said K-Green in its unaudited report card.

K-Green also recorded revenues worth $26.1 million in its third quarter.

K-Green holds three plants, namely the Senoko Waste-to-Energy (WTE) Plant, the Keppel Seghers Tuas WTE Plant and the Ulu Pandan NEWater Plant.

Earnings per share for the third quarter is 0.7 cents. EPS from its date of listing to 30 Sept is 0.73 cents.

K-Green said that the underlying performance of its assets 'is expected to remain stable.' 'All three assets have long-term concession agreements with Singapore statutory bodies, namely NEA and PUB.' K-Green's trustee-manager said it will 'continuously review acquisition opportunities.'

As of 30 Sept, net assets of the group stood at $720.9 million.


Singapore, October 18, 2010: Sembcorp Marine's subsidiary Jurong Shipyard (JSPL) has secured orders of US$384 million for two turnkey jack-up rigs with options for another four jack-up rigs from Seadrill.

The total estimated value of the six jack-up rigs, including the four jack-up rig options is expected to surpass the US$1 billion mark. This contract with Seadrill will be the largest order of rigs to-date, reflecting the growing market segment for quality premium high specification jack-up rigs.

Scheduled for delivery in the fourth quarter of 2012 and the first quarter of 2013 respectively, the jack-up rigs represent the latest generation, high specification jack-up drilling rigs with greater capacities and capabilities than current conventional units. These rigs will be built based on the Friede &

Goldman JU2000E design and are suitable for operations world-wide, including the southern North Sea. On completion, these new rigs will be capable of operating in waters of 400 feet and drill to depths of 30,000 feet.

They will offer improved drilling efficiencies with off-line pipe handling, simultaneous operations support and are equipped with increased accommodation capacity.

Mr Don Lee, Senior General Manager, JSPL’s Offshore Division said "We are pleased that Seadrill has again chosen to partner Jurong Shipyard in their fleet expansion strategy to be the world’s largest operator of modern high specifications rigs. These jack-up rigs will be the 6th and 7th rig orders that Seadrill has placed with JSPL, two of which are currently under construction in the shipyard.”

Mr Alf C Thorkildsen, Chief Executive Officer in Seadrill Management AS, said “We have selected Jurong Shipyard as a partner yard based on its proven track record and project execution capabilities. Jurong Shipyard has set many ‘first successes’ with Seadrill and we are confident that it will continue to perform. The newbuild rigs will further strengthen Seadrill’s status as a leading operator of modern, high quality premium drilling rigs. These orders will position us for additional growth in an increasingly important market
segment that can provide further opportunities and earnings growth for Seadrill.”

Sunday 17 October 2010

Money = happiness?

By Rachel Scully

Does earning more money make you happier? Not everyone agrees.

According to the Household Expenditure Survey conducted by the Department of Statistics in 2007 and 2008, the average household expenditure per month is $4,388.

That figure could be slightly larger now, with the rising cost of living.

However, would earning more necessarily make one happier? Or does how much you want and need dictate your pursuit of wealth and happiness?

RazorTV went on a quest to find out what "the magic number" is - the minimum amount of money you must earn a month to be really happy in Singapore.

We discovered some interesting insights and spending habits of Singaporeans.

How much is enough?

From speaking to interviewees in the street, Razor TV found that their "magic number" can range from $2,500 to $20,000 a month, but most estimates fall in the range of $5,000 - 6,000 a month.

One interviewee who said he would need $10,000 to $20,000 a month to be happy cited heavy family burdens as the reason for his high figure.

Three interviewees said $5,000 to $6,000 was their minimum figure. When asked why, one said "because in Singapore, expenses are very high, to manage everything and to be happy you need more than what is required".

So is $5,000 enough for one's living expenses? Razor TV did a calculation to find out.

Say you spend $20 a day on meals, that's $625 a month on food and drink. If you take public transport, the bus or MRT fare could add up to about $121.34 for transport a month. For those living in HDB flats, utilities, groceries and housing loans will cost you an estimated $1,300 a month.

Another $600 may go to your parents' allowances, for your health care and dental needs, $50. Then throw in another $200 for recreation and leisure, and $200 more for shopping and gifts. Most importantly, savings which they estimate at $500 a month.

In summary:

Items Monthly expense

Food and drink:  $625
Transport:  $121.34
Housing, utilities, groceries: $1,300
Parents' allowances: $600
Healthcare: $50
Recreation & leisure: $200
Shopping & gifts: $200

Total: $3,596.34

By Razor TV's estimates, personal expenses alone will come up to more than $3,500 a month for the average Singapore resident who doesn't own a car.

But how about other people you may have to support? For your spouse, you may need another $500, and if you have elderly parents, another $500. For two children you will need at least another $350 for their education, books and toys.

So the "magic number" by Razor TV is $4,946.34 - the minimum amount of money you need to have a month to be happy in Singapore. Rounded up, it is quite close to the $5,000 cited by the interviewees.

How would you spend it?

If they earned $4,946 a month, what would Singaporeans spend it on?

Most of the interviewees told Razor TV they would give their parents about $1,000 to $2,000 out of the sum. Razor TV found that their interviewees are a frugal lot, with one saying that he once survived on $2 to $3 a day.

He also said he will use 55 per cent of his income on his family, 10 to 20 per cent on relaxation and another 10 to 20 per cent on giving.

When the reporter pointed out that he didn't have much left for himself, he said, "I am very easy with my lifestyle".

As for the remainder of the sum, a number would spend it on travelling and entertainment, with one lady saying that she will spend it on vitamins and health supplements.

They say money can't buy you happiness, but everyone knows that the lack of money is not a happy option either. The fact is, money can't buy you everything, but it can certainly contribute to a general sense of well being.

But as every Singaporean will tell you, there sure is a lot to pay for in this country!

Me, No multi-baggers (3)

Read? Me, No multi-baggers :-( Revisit

Mr. Peter Lim's very Super  Multi-bagger: $10M investment in Wilmar in 1991 turning to around $2B now.

It may be extremely difficult to be the next Mr. Peter Lim; but we can stll try to be the next Mini, Micro or Nano Peter Lim. Why not?

"If at first you don't succeed, try, try again. Then quit. No use being a damn fool about it." - W.C. Fields

We will need Gut, Patience and Wisdom to succeed

During Feb 09 and Mar 09, there was no shortage of retail investors who have guts and went into the stock market to buy. They made good profits when the stock market recovered. However, super profits are reserved only for those retail investors who have them all - gut, patience and wisdom like Mr. Mini, Micro or Nano Peter Lim!

Conversation with Noobz and Master Cheng

Just for Laugh!

Receiving dividends but different feeling!

I told them this "joke" and they laughed!

When I received stock dividends without the accompanying realized profits, I realized that I have failed in the most dollars in the least time strategy.

My stocks have been stuck so long that receiving stock dividends from my short-term trading positions are actually bad news!

The Myths & Realities of Achieving FINANCIAL INDEPENDENCE

Read? What is Wealth? I am not Rich nor a Millionaire

By John Cummuta

Fnancial Independence.

What exactly does it mean? Well, Webster's Dictionary defines the terms this way:


Pertaining to the science of managing money.


Freedom from assistance by others.

So financial independence means the ability to manage your money in such a way that you have sufficient funds to live your chosen lifestyle without assistance from others. In other words, enough money to meet all your needs whether you work or not, because a job is really assistance from someone else — your employer.

Notice that this definition doesn't mention amounts of money or the symbols of having money that we often attach to financial independence. To some people financial independence might mean yachts, mansions, and expensive foreign cars; while to others it might simply mean never having to worry about bills again — knowing they will always have a comfortable home and the time and resources to enjoy their interests and hobbies. For many, not having to work a second job, or maybe just having sufficient income so their spouse could stay home with the children, would constitute financial independence.

What does financial independence mean to you? What would it mean to your life? How would your days and nights be better if you knew you had the resources to meet all your financial obligations for the rest of your life?

Createwealth8888: I personally like this definition of Financial Independence. I believe I truly fit into this definition - Freedom from assistance by others (parents and employer). I will make it soon!

The easiest way to begin framing this picture in your mind is to think of a typical day. Not a special day, where you do something you might only do occasionally, but an average day, one that would be filled only with what you'd be doing most days once you've achieved financial independence.

What time would you wake up?

Would you be awakened by an alarm clock or by your body's clock?

Once you arose, what would you do first? Second?

When and what would you eat?

What would be the main activity of your day?

How would you spend the evening?

What would determine when you went to bed?

What would your home look like?

What kind of vehicles would be a part of this typical day?

Spend a few moments in that daydream: in a typical day in your financially independent life.

Now ... are you really ready? Are you ready to make the changes to your present life that will allow you to achieve that kind of independence? After all, if no changes were necessary for you to achieve financial independence, you'd already be there.

If honesty forces you to admit your prospects for true financial independence are cloudy at best, then let's get on with figuring out how to blow those clouds away.

Ralph Waldo Emerson once said, "What lies behind us and what lies before us are small matters compared to what lies within us." What you have to determine is whether financial independence lies within you.

That's right ... you either have what it takes or you don't. You're either made of the stuff that yearns for selfdirection and self-support or you're not. Only you can examine the true you and answer this challenge.

In the late '80s I had to take the same inventory of myself. I had a growing business and was making great money. I had a beautiful house, fancy cars, and a private plane. Yet like most Americans, I was living up to the maximum of my income — and with the help of Uncle Visa and Aunt MasterCard, a little beyond it.

When I stared it right in the face, I knew my life was a house of cards and that when my working years ran out, I'd be in a real mess. Unfortunately, circumstances didn't even allow me that much time. My business was reselling another company's product, and when that company suddenly went out of business, it pulled us down with it.

My personal income dropped from really good to zero, almost overnight. That began the worst two years of my life. Panic-filled days, sleepless nights, relationship stresses, and the seemingly endless scramble to save my home and find another income source.

That nightmarish experience caused me to seek the true path to financial security and freedom. Not the hype baloney you read or hear from the pushers of what I call "The Solution Lies." Those are the people who tell you the answer to your problem is to make zillions of dollars — and you can do that by just buying their magical money-making scheme.

I knew there had to be a realistic system for achieving true financial independence. And I knew that such a system would have rules. Rules that are laws, like gravity.

Well, I found those rules. Once I did, the money map of my life sharpened from an indistinguishable maze to a clear route to my goal. I developed a plan for my life based on these rules and road signs, and I put that plan into action.

One year later, my wife and I had all of our bills other than the house paid off. Less than four years after that, the 26-year balance on the house mortgage was eliminated. And less than five years after that, we began living 100 percent off the proceeds from our investments. Working is now optional.

The incredible thing is that we accomplished all of this with the same amount of money we had been bringing home each month all along — our regular paychecks. If we had added more money into the system, we could have been out of debt faster and ended up with even more retirement savings.

In the process, I discovered that many of the central financial principles most people operate under are simply not true. I call these the Myths of Financial Independence. Disabusing yourself of these lies is an absolutely critical step on the road to wealth, freedom, and real peace of mind. I invite you to take that step right now:

Myth #1

You can use money the same way everyone around you uses it — and still end up financially independent.

The United States Department of Health and Human Services regularly conducts an extensive study of what happens to the average worker in this country by the time he or she reaches conventional retirement age (U.S. Department of Health and Human Services study). The pitiful results show that fully 95 percent of the people in this country DO NOT achieve financial independence by age 65, but rather they end up DEPENDENT on the government, or charity, or their families, or they have to keep working until they die. ninety- five percent. That's almost everybody!

These are working people just like you and me, people who went through their lives believing the myth that if they were just good employees and good consumers, they would be rewarded in the end. Instead, most of them end up struggling to survive on a Social Security check and/or a pitifully small pension. It isn't pretty. If you know anyone living on Social Security, visit with that person for a day and see if that's how you want to spend the "Golden Years" of your life.

The truth is inescapable. If you're using money like most Americans — buying things on credit, making monthly payments, trying to put away a few bucks each month, etc. — you're doomed to end up the same way they will: BROKE!

Myth #2

The responsible use of credit can enhance your financial well-being.

This may be the single most dangerous lie told to the American consumer. Only the merchants and the lenders benefit from your using credit. You DO NOT! All credit does for you is raise the price of the things you buy. And if you pay more for everything, over the years you'll be able to buy independence forever. You have to put in the most effort upfront. Then after a while, you can relax into a wonderful lifestyle and spend a lot less time and effort maintaining that lifestyle and income ... giving you time for your loved ones, hobbies, and maybe even dreams you have long since let go.

Reality #3

You must develop and maintain a long-term view.

If you hear yourself saying, "I really should pay off my debts and start building my financial independence fund, but there are a few more things I want first," translate that to, "I want to continue wasting my life, taking no action to build a better future, and I'll risk the consequences later."

If you live only for today's gratification and never really begin building a financially secure future — my estimate is that it'll cost you about $423 in lost future wealth every day you wait!

Reality #4

It takes more than a few weeks to build real financial independence.

My debt-freedom plan took just four years and seven months, and five years later I could live off my investments alone. That may seem pretty fast to you. But it did not happen overnight. I didn't find the goose that lays the golden egg. I just rerouted the money already moving through my life into a plan that allowed it to accumulate for my family's benefit, rather than the benefit of my creditors.

Beware of people telling you it can be done overnight. That's the lack of wisdom that feeds lotteries ... and lotteries are just a tax on people who don't understand statistics.

Getting rich does take some time. Accept that fact and you'll enjoy life more, while you get rich.


Financial independence may not be possible by following the path you've been on up until today. But I am living proof that IT IS POSSIBLE once you shed the myths, embrace the realities, and really commit yourself to a sound, structured plan for achieving your financial goals.

Just think of what that kind of independence could mean to your life. No more pressure from bills. No risk of losing your home, car, or anything FEWER things than people making the same income as you who pay cash instead of using credit. So using credit will actually diminish your lifestyle, not enhance it. The people using cash will be able to afford a better lifestyle than you.

Consider this: The only true measure of wealth is net worth — how much you own MINUS how much you owe. So owing money on assets you supposedly "own," like your house or car, reduces your net worth, thereby reducing your wealth. The only way to really achieve true financial independence is to own everything in your life and owe nothing. That's real wealth.

Myth #3

Pay yourself first.

The false belief here is that you can carry a load of debt and otherwise use money like everyone else around you, as long as you first put a little aside in some kind of savings or investment each month.

The truth is that you should PAY ALL OF YOUR DEBTS OFF FIRST, and only then begin paying yourself. It's the only way to dramatically accelerate your journey to financial independence.

If you think about this, it just makes sense. When you pay off your debts first, you then need less to live on each month because you're only paying for food, utilities, taxes, insurance, and any other minor expenses, leaving you with a lot of savable money each month. So it will only take months instead of years to save up a sufficient emergency fund. After that, your retirement investments will build rapidly because you're funding them at a high level each month.

Creathwealth8888: I paid off my housing loan in 5 years. Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? - Revisit

Myth #4

You can get out of debt by putting a little extra on each bill each month.

To effectively eliminate your debts, you have to use the military principle of "massing of forces." This means you concentrate all available resources on ONE debt at a time.

This way, you pay the target debt off quickly, thereby recovering its monthly payment, which you will then add to the amount you'll mass against the second debt, and so on.

A quick rule of thumb would be to pay off your debts in order of their outstanding balances, working from the smallest balance debt to the largest.

By doing this, the amount you have available to "invest" in your debts will actually accelerate after each debt is paid off and you recover what used to be its monthly payment.

Targeting debts by interest rate is not generally the best strategy.

Myth #5

You need to learn how to "manage" credit.

You need to learn how to ELIMINATE credit from your life. The idea of "managing credit" is like "managing a drug addiction." There's no such thing as a good way to "manage" something that's damaging to your well-being.

Once you're debt-free, you'll never need credit again. If you want to move up to a better house, you'll just sell the one you own free and clear — maybe take a little additional money out of your swelling investment account — and buy your new house with cash.

That's how it works when you eliminate debt. When you just manage debt, you stay in the 95 percent group along with all the other financial failures.

Myth #6

To be successful, you have to work "smarter not harder."

Everyone I've ever met who has achieved financial independence will tell you that — at least in the early days — you have to work smarter and harder. The price of success must be paid in full, and it must be paid in advance. There are no shortcuts.

This is particularly true if you're going to try to build a business, even a home-based business, as part of your financial independence plan. Building a business takes more work than a job, at least in the beginning. It also offers greater rewards than a job, both financial and emotional. But you should never be fooled into thinking that building a significant revenue stream can be effortless. If you see that kind of promise in a business's advertising literature, they are lying to you!

It takes hard work to achieve financial independence, which is probably one of the primary reasons why 95 percent of people don't do it.

Myth #7

It takes OPM (other people's money) to make money.

I know from experience that this is simply not true. I built a three-time Inc. 500 multimillion-dollar-a-year business starting with less than a $100 investment, working out of a spare bedroom.

The most dangerous result of this myth is when borrowers realize too late that the "other people" you borrowed the money from expect to be paid back — WITH INTEREST! Like most shortcut-to-riches illusions, using borrowed money to build financial independence frequently has the opposite result. It accelerates your financial ruin.

For every person who might succeed this way, a hundred lose their shirts ... and the houses those shirts were hanging in.


Once you've freed yourself from these misconceptions and outright fabrications, you will have eliminated the major obstacles standing between you and a financially free future. The next step is to accept and commit yourself to a few basic, inescapable Realities of Financial Independence.

Reality #1

If you're not already financially independent — or well on your way — you must change your financial behavior to succeed.

There are only two ways you can leave this article — changed or resigned. CHOOSE TO CHANGE. It's really that simple.

Reality #2

You have to be willing to put forth effort.

The only place success comes before work is in the dictionary. But you don't have to work hard at achieving financial else, because you'll own it all. No more worrying about the financial implications of life's "what-ifs."

Being able to work if you want to, or not work if you don't want to. That's true freedom — and you deserve to be enjoying it.

8 Rules to break to build Wealth (Re-visit)

Revisit? 8 Rules to break to build Wealth

Saturday 16 October 2010

My money works harder for me (4)

Read? My money works harder for me (3)

Does my money need to work harder at all times?

Learn from the Wisdom of the Fisherman

When the tide is coming in, the fisherman may use all his available fishing rods and may even change to bigger hooks as rising tides may bring in more fishes and even bigger fish. The chances of catching fishes or bigger fish are high so don't spare the rods.

When the tide goes down, the fisherman will start rolling back his fishing rods and wait for the next high tide. When the tide is low, the chance of catching of bigger fish will be low; but the risk of getting your fishing hook and sinker get caught by the under-water obstacles is high and that may break your fishing line and lose your sinker. To replace them will cost you some money.

Read? The Best Secret in Investment and Trading – Compound Interest

Let me share the "Next Secret" to the "Best Secret of Compounding."

In order for the magic of compounding to work effectively for you, you must TRY to protect against losses at all times.

Read? The Greatest Lesson that I have learnt from my losses!

Understanding the Best Secret may not be good enough, you still need to understand the Next Secret and learn from the wisdom of the fisherman - you don't need to fish all times but go with the tides.

The hard truth is that preventing losses is as hard as making money in the stock market. Beware!

Use CPF or Cash to invest in stocks?

Assume we have more than enough fund in CPF investment account and in cash account (money that is not required in the next 5-7 years to ride out the next bear-bull cycle).

My friend actually asked this.


Are you interest-wise? Current bank saving interest rate is around 0.X% and CPF OA rate is at 2.5%. Why would you spend the money that earns higher returns at 2.5% and keep the money that earns much lower returns at only 0.X%?

Then you argue that cash is more useful and can buy things leh. But, didn't I told you that one should come to stock market with money that is not required in the next 5-7 years to ride out the next bear-bull cycle.

When the mind is calm, you may invest with ease and in better position to ride out the next bear-bull cycle - Createwealth8888

Friday 15 October 2010

Money in your pocket

Just for Laugh!

In trading or active investing, it is not wrong to take partial or full profits when market condition indicate so.

We call this profit-taking action -  "money in your pocket." It always feel good. Guess what? I actually came cross this Yiddish Proverb.

"With money in your pocket, you are wise and you are handsome and you can sing well too."

Client sues SocGen over his 'missing millions' here

Createwealth8888: In forex, losses can be really huge due to its nature of high leverage being used

Read? Investor to pay $1.6M to bank after losing lawsuit.


(SINGAPORE) For years, two relationship managers assured a client that his investment portfolio was doing well and that he had a balance of around $8 million in his account.

In fact, the net value of the investment account stood at only $252,652 on Aug 12 this year. The rest had been frittered away by the relationship managers at Societe Generale Bank & Trust in Singapore because of alleged unauthorised forex trades, according to a lawsuit filed at the Singapore High Court yesterday.

To cover up the losses, they fed the client with bogus statements, the lawsuit claimed.
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