Posts

Showing posts from August, 2019

Weekend Brain Food IV and rumblings

Image
Doubling wealth   versus  Creating just enoug h wealth FIRE concept seems to advocate creating just enough wealth so that we can do nothing (sing Bruno Mar's The Lazy Song) and simply enjoy life. Just for fun... Try tabulating how long it takes for you to double your wealth. Do it till the point which you find it's "just enough". Then do some deep reflections on how you did it . (Congratulations if your starting figure falls beyond this table.) 1000 2000 4000 8000 16000 32000 64000 128000 256000 512000 1024000 Reflections... 1) Do you earn far more than your spending? 2) Does your earning increase yearly? By how much? 3) Do you generate any side income? 4) Do you trade securities / assets to generate income? No? Only rely on dividends by buying but not selling? Here comes the trick question: Are you confident in doubling your wealth

Statutory retirement age changes

"Prime Minister Lee Hsien Loong said on Sunday (Aug 18) that these changes, which were recommended by a tripartite workgroup and accepted in full by the Government, "will support older workers to continue working longer and to be more financially independent". He announced at the National Day Rally that the statutory retirement age will go up to 63 in 2022, and eventually to 65 by 2030. The re-employment age will also go up from 67 now to 68 in 2022, and eventually to 70 by 2030." Source:  https://www.straitstimes.com/politics/national-day-rally-2019-retirement-age-to-go-up-to-65-older-workers-cpf-rates-to-be-raised 活到老,做到老? Would the future silver generations have the mental and physical health to do so?  Statutory retirement age going up but trending 'dream' retirement age going down. Younger generations hoping to be FIRE (financial independent and retire early). Which social norm would prevail come 2030? Hmm... we ponde

Weekend brain food III

Image
This week's reads (they are kind of random): Cramer: Don’t break these rules if you want your stock portfolio to make money Panic is not a strategy There is always a better time to sell than into the maelstrom Stay away from after-hours trading Check your emotions at the door Don’t sell all at once Investors can hide out in domestic stocks from the China trade war “What we are focusing on with our clients now... are companies that are more domestically facing in terms of the source of their revenue,” Goldman Sachs chief U.S. equity strategist David Kostin, There's another article that advised investing in companies that generate revenue from services rather, which suffer less impact from the tariffs raise. Definitive Guide to Dividend Withholding Tax in Stock & Passive Investing (by Investment Moat) He did a wonderful write-up demystifying withholding tax and these are the areas covered: Tax When Money Flows out of the Country

The reason to why we are suffering

Image
This post is not related to finance or investments.  I was reading this interview transcript (warning: it's loooong) by Tim Ferriss (the author of 4-hour work week) on Tony Robbins a couple of days ago and found the below highly enlightening. Worth a read if you are interested. [Source: https://tim.blog/2018/06/06/the-tim-ferriss-show-transcripts-tony-robbins-on-achievement-versus-fulfillment/ ] "The reason you’re suffering is you’re focused on yourself. You’re obsessing on yourself. People tell me, “I’m not suffering that way. I’m worrying about my kids. My kids are not what they need to be.” No, the reason they’re upset is they feel they failed their kids. It’s about them still. In fact, I began to uncover where all suffering comes from. I found the simplest little tools. I dug in. Suffering comes from three thought patterns: loss, less, never . If you are in a situation where you believe that someone did something – the government, your friend, your co-wo

How far from a 'new worse'?

Image
Is this a phase of consolidation before coming to a waterfall? This month did not start well with Trump's new tariff slap on China. Just as I was gloating over a 12% gain on my Capitaland's shares, the gain has quickly plummeted by more than half in the blink of an eye before I could react.  Obviously I didn't learn my lesson too well. My Equity portfolio on the whole is still afloat. Generally speaking, if one uses the war chest to buy good dividend stocks during sales (that's why I say market timing matters ), one's portfolio would have a higher margin of safety to weather a market downturn. Are we at a market downturn? Hmm we are probably nowhere near signs of waterfall yet... (although by the time we catch sight of it, it's often too late to react). Let us take a brief glance at the highest to lowest points during STI plunges over the past 10 years. 3189 (07/2011) to 2646 (12/2011)   -17% 3487 (04/2015) to 2539 (02/2

Weekend brain food II

Image
Good readings are like old adage - they never go outdated but market news do. What I am reading this weekend: Beware of Geeks Bearing Formulas "Over-reliance on flawed models has hurt people over and over and over again. Beware of geeks bearing formulas!" John Neff - a Fifty Seven Bagger! "It's ironic that at the time time Neff published his book in 1999, one of the greatest investment bubbles in history was approaching its climactic end point. In the book's final chapter titled 'De Ja Vu', Neff noted the S&P500 was trading at 28 times offering just a 1% yield. And although, Neff could not see the typical warning signs he looked for, [capital expenditures, inventories and consumer debt] he recognized the risks..." A Margin of Safety "The most important piece of information when buying a stock (or any asset) is — the price you pay. That’s right. Even with bad management, terrible growth, and bad profitability,