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Showing posts from October, 2015

DBS Vickers promotion continues till dec 15

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Hmm... Sweet deals for deploying your war chest? Make sure you log in to Vickers from your POSB or DBS ibank site and not direct to Vickers in order to enjoy these offers. Disclaimer: This is NOT a paid advert.

Indicators and intrinsic value - no magic formula?

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In deciding whether to buy, hold or sell a stock, we need to do FUNDAMENTAL analysis. In determining the short term trend and entry point in a stock, we need to do TECHNICAL analysis and also review market sentiments. Here's my understanding on fundamental analysis and what indicators should be considered. Photo by Austin Distel on Unsplash Quantitative indicators: Price to earning ratio (low or high relative to competitors) Year-on-Year profit (note revenue does not mean profit) Net asset value (how much is the company's asset worth) Debt to asset ratio Dividend yield (increasing, decreasing? is the payout consistent?) Free cashflow & cashflow from operation Qualitative indicators - Understanding the business: Sources of revenues (does it earn from recurring income and not from one off from asset disposal?) Business plans and development (what acquisitions made?) Does it have a business moat? (eg. high barrier of entry, consumer cos

Endowment and annuity policies 'trap'

When I step into any of the well-known local banks, one thing that never fails to irritate me would be having financial advisers (or whatever position the bank prefers to call the personnel) coming to sweet-talk me into putting my money 'somewhere with better returns' when all I was there for was to open an FD account. Upon further probing, the products or package that they are trying to sell me are none other than endowment or annuity policies. By definition of wikipedia - "An endowment policy is a life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness." "An annuity is a financial contract in the form of an insurance product according to which a seller (issuer) makes a series of future payments to a buyer (annuitant) in exchange for the immediate payment of a lum

10 Rules to closing sales

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Blog post number 111. It's been seven years of front line sales work, I start to think it's about time for me to move on to do something else. Doing sales may prove to be challenging work, especially for a fresh grad or natural introvert which I think I was once both. Doing sales has toughened me up greatly. Along the arduous journey from which I didn't start off from a sales background, I have come to realize the following rules on doing and closing sales these years... Smile Speak your customers' language Communication is tough if one speaks chicken and one speaks duck. Language is really a power tool. Ok, now where's my Google translate... Cluck cluck... you talking to me? Ask and listen before you speak. There's a Chinese saying: "The more you talk, the more err." So learn to listen first. Speak with confidence and conviction When you do open your mouth. Identify the potential client 80% of your sales come from 20% o