Benjamin Graham shares 5 Ways to Invest

Benjamin Graham, the father of Value Investing and the author of “The Intelligent Investor” determined five types of value investing in his book. You could clock returns that are more than satisfactory. They are: General Trading.Look at the market as a whole, as such trading the indices. This has become possible for retail investors with the advent of index ETFs, which were not available … [Read more...]

6 Psychology Biases And How To Avoid Them

Although we’d like to think that we are rational beings, many of our decisions are usually made with a veil of psychological bias. Here are 6 of them that you should take note of. Anchoring As the saying goes; “first impressions count.” And that is very true. People tend to be over-reliant on their first impressions, even when they are subsequently exposed to evidence that they have been … [Read more...]

Are you an Investor Or a Speculator?

The word “investor” is generally used to refer to someone who owns a stock. However, very often this may not be accurate. Someone who purchases stock can be either a speculator or an investor. Which Is Which? An investor takes the time and effort to research a company and figure out how well it is doing. They only purchase stock if it is trading at a discounted rate. An investor always takes … [Read more...]

What is the BigFatPurse Investors Conference 2016?

It started out as a single invite to an external speaker. We have been holding an investment conference annually since 2014 for our inner circle. During this meeting, we would share about our investment takeaways, how we did in our own CNAV portfolio and what we would look out for going forward. To provide more value to our participants, each year we would invite an external speaker whom we … [Read more...]

3 Characteristics of a Sustainable Passive Income Source

If your goal for your long-term investment portfolio is to eventually generate passive income, this is for you. Passive income can come from bond coupon (interest), real estate rental income, unit trust royalties, stock dividends, annuity payments and intellectual property licensing income. When building a passive income stream, make sure that it has these 3 characteristics: 1. … [Read more...]

The Best Bang for Your Buck: Where Should You Be Putting Your Savings

We save money for many purposes and among the many purposes; it is primarily for insurance in the event of a rainy day. Amidst the uncertainty that we face in the current economic climate, it may be even more pertinent that we better manage our savings. According to the statistics provided by the Ministry of Manpower in 2015, the average rate of finding jobs with 6 months of redundancy for … [Read more...]

8 Dividend Investing Myths that will Sabotage Your Investment Results

Do you also believe these Dividend Investing myths? Ex-dividend vs Record Date Many investors use these 2 terms interchangeable and assume that they are the same date. However they are not. If an investor owns a stock before the ex-dividend date, they will receive the dividend. Since the ex-dividend date is usually two business days before the record date, an investor needs to understand … [Read more...]

What To Consider When Selecting Dividend Stocks

One of the many aims an investor has is to make money from dividends. Most people would have heard about dividends, but are not sure how they work. This article gives a quick look into how dividends work and how you can create a sustainable portfolio that pays you regularly. HOW DO I MAKE MONEY FROM DIVIDEND STOCKS? The short answer is to invest in a company that earns a … [Read more...]

How Value Investing Felt Like, Before A 67% Gain

Buy stocks cheap and sell them dear. How difficult can it be? Simple doesn’t mean it is easy. Value stocks are very uncomfortable to buy. An unprepared investor would have a lot of self doubt and might lose confidence when bad events arise. The case in point revolves around TSH, a stock listed on the Catalist (the secondary board of the SGX). TSH’s market capitalisation was about S$30 … [Read more...]

Investing with emotions

Emotions is one of the biggest obstacles to making logical investing decisions in the stock market. Over a short time span, the price of a company suggests the combined emotions of its investors. When most investors worry about a company, the price of its stock... … [Read more...]

How to Invest Better by Knowing Your Investor Type

In my previous article I shared about the four different investor types – the Celebrity, the Guardian, the Individualist and the Adventurer. These four profiles stemmed from Bielard, Biehl and Kaiser’s research in 1983. In that study, Investors were positioned along two axes, confidence and carefulness. Depending on where individuals rank on each account, the researchers were able to tag them … [Read more...]

Are you a Risk Taker?

Risk tolerance is an innate psychological trait. It can be positively influenced by income, education, and wealth (an increase in these factors has been shown to increase risk tolerance). And negatively influenced by age (as a person ages, one’s risk tolerance decreases). Risk tolerance refers... … [Read more...]

The Expected Risk and Return for Various Investments

In September 2016, Schroders surveyed 20,000 retail investors in 28 countries, including 500 investors from Singapore. One of their biggest finding is that investors are overly optimistic about their expected returns. According to the survey, the average investor in Singapore is expecting 9.2% returns per year! That is way too unrealistic given the low interest rates environment in the current … [Read more...]

Are you a Guardian, Adventurer, Celebrity, Individualist…or Just an Investor in Denial?

Which of the following best describes you and your approach towards money and investing? You are very careful with your money. From the hard work you have put in over the years and the disciplined savings you have made, you have amassed an egg nest for retirement and you are bent on protecting it in every way possible. When it comes to investing, you have no interest in volatility or … [Read more...]

A Basic Guide To Dividends

When a public listed company turns a profit, it has two options. It can reinvest the profit in the business via reducing debt, buying back shares or expanding its business. Alternatively, it can pass its profits along to its shareholders. This is called a dividend. THE DIVIDEND-PAYING PROCESS Whenever a company elects to pay dividends, the decision has to be approved by the Board of … [Read more...]

How Does One Become an Angel Investor?

Angel Investing is a rather new form of investing in Singapore and South East Asia. Experienced Angel Investor, Mr Lim Der Shing shares his thoughts to the general questions many people ask about Angel Investing. Enter Der Shing NB: While I have experience mainly in tech startups, I believe the principles mostly apply to non tech angel investments too. 1) What is Angel Investing ? How is … [Read more...]