Author: Create Wealth Through Long-Term Investing and Short-Term Trading

FY 2010 Full Year Performance Report : Up +18.2% YoY

Read? 9M FY 10 Quarterly Performance Report Year Goal Hit Rate (In 2003, I set some bullish progressive year goals from 2003 to 2011 and 2010 Year Goal is 74.9% of 2009 Total Salary including all CPF contributions. Quite a big goal to achieve!) Year Goal Hit Rate improved by +18.2% from 47.8% in FY2009 to 66.0% in FY2010. Active Investing Performance Since Nov 08 after I have given up active contra trading and revised my active investing/trading strategies. Performance indicators are as follows: Historical ROC per Trade Distribution Going forward, I think the days of high double digit ROC are likely...

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Measure, Measure, Measure (4)

Read? Measure, Measure, Measure (3) I realize that some of you may have problem using CAGR to measure your performance as you may periodically add more capitals into your portfolio. In this case, you may want to use Microsoft Excel function: XIRR to calculate and return the internal rate of return of an investment. IRR (Internal Rate of Return) is quite close to CAGR as an alternate mean of measuring performance. I have provided three examples on how to use XIRR when you add more capitals as...

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How much is a Reit worth?

We look at the determining factors and valuation measures for a Reit, but bear in mind that valuing a Reit is far more art than science. By Bobby Jayaraman DONALD Trump started off in real estate developing residences in Manhattan in the 1970s when New York was on the brink of bankruptcy. Li Ka Shing scooped up property dirt cheap during the 1967 riots in Hong Kong. The late Ng Teng Fong of Far East Organization was the king of Orchard Road in the 1980s. All these tycoons made fortunes when the value of their investments grew multiple times....

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Reaching 55 – Your CPF Investment Account?

Upon reaching 55, you will have to decide what to do with your CPF Investment Account as you have the option to continue with your CPF Investment Account or close it. So it is for you to decide for yourself based on Cost-wise and Interest-wise. Cost-wise To close CPF Investment Account and transfer share counters to CDP: One time cost per share counter Central Depository (Pte) Ltd (“CDP”) imposes a transfer fee of $10.70 (inclusive of GST) for every share counter transferred from your CPF Investment Account to your CDP Account. To maintain CPF Investment Account: Running costs Service Charge:...

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Are you worried about losing money in the stock market? Me too!

Read? As newbies, did you come thinking of becoming Rich in the Stock Market is easy? Read? Safety Net in the Market? “For the things we have to learn before we can do them, we learn by doing them.” – Aristotle (Aristotle is a towering figure in ancient Greek philosophy, making contributions to logic, metaphysics, mathematics, physics, biology, botany, ethics, politics, agriculture, medicine, dance and theatre.) Likewise, stock investing is a life-time skill to be learned. You have to learn it by exactly doing it; and by doing it ONLY if you are fully aware that if you should...

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Hey! Are you good at stocks? (3)

Read? Hey! Are you good at stocks? (2) Proportion of Primary One cohort admitted into the local subsidized universities While most parents would think or dream that their kids may make it to admission into local subsidized universities; but cold fact is not. It is less than 15% of primary one cohort made it. Why? It is natural process or mechanism of the “system” or “market” to allow only those perform well to reach the highest height or level and the rest have to drop out. It is never easy for kids to reach that highest level without consistently...

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3 Ms of Trading – Mind, Method and Money – Part 4

Read? 3 Ms of Trading – Mind, Method and Money – Part 3 Bad news! There is NO SHORT CUT in Active Investing or Trading if you want to rise above an average investor/trader. You have to develop your own personal investing or trading system yourself or pay some “Gurus” some money to teach you to develop one or subscribe to their trading system; then adjust and adapt some parameters to fix them into your own personality and trading style. (I have also interacted with quite a number of friends/colleagues who have attended such courses. Some have even attended advanced courses with trading templates provided; but sometime...

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Invest with CPF investment fund or Cash in the stock market?

Your CPF investment fund is earning compounding interests rate at 2.5% while your cash is only earning at 0.X% – 1.X%. Why would you use up your higher rate first while holding on to lower rate to wait for better investing opportunities? I believe the biggest obstacle is that most investors see their CPF money as “stuck” money that needed to be “unlocked” first for investing while forgetting that their free-flow cash for investing purpose are actually sitting idle at a lower rate. Somehow, I manage to overcome it by adopting Interests-wise thinking. My CPF investment fund is used as last line...

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My War Room (4)

Read? My War Room (3) “Sometime we may learn from other people’s experiences but at times we may have to re-look at our own experiences and learn from them as well.” – Createwealth8888. Does Buy-And-Hold strategy with a strong holding power help my portfolio to recover near its All Time High in the next bull? Learning from my own experiences on my portfolio on those buy-and-hold counters, not really true. It is true that a strong holding power has prevented me from panic selling; but does it help my portfolio to recover to its All Time High in the next bull?...

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Compound Interest is not the same as Compound Returns (2)

Read? Compound Interest is not the same as Compound Returns Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (5) Compound Returns of 2.6% by 100% re-investing may be far more difficult than you think E.g. When you can afford to take a 20-year HDB Housing Loan at 2.6% but choose to take advantage of low interest rate and opt for 30-year loan and use that extra money saved for investment. So what is the difference? When you take a loan, you pay compound interest to the bank and the total interests payable is...

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Compound Interest is not the same as Compound Returns

“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”  – Albert Einstein Compound Interests and Compound Returns The two terms are often mistaken as the same by investors. Savers earn compound interests e.g. 8% fixed deposits with auto-renewal. Compounding in financial instruments like fixed deposits means interest is not only earned on a principal sum but also on any accumulated interest. That concept of compounding effect in saving must not be applied to investing in stocks market. The returns on your portfolio of stocks are subjected to the volatility of...

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Time is Money. Money is Time.

Read? Money = happiness? Time is Money Most people make most of their money by “selling” their time. Some are able to “sell” their time at “obscene” super high price while sold theirs at dirty-cheap price. Their price difference can be amazing XXX times the lowest paid person in the same company. Unless you have Bank of PaPa or Bank of MaMa behind you, the greatest financial asset generator is our time. We either “sell” it at higher price or “sell” more of it at lower price for the same absolute amount. So this sense: Time is Money! Money is Time...

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Two Bank Accounts? No, You may need Four! – (3)

Two Bank Accounts? No, You may need Four! – Part 2 I have four separate bank accounts for different purpose: 1 – For living expenses and GIRO 2 – For Emergency Fund (3 months in conjunction with FD period 6/12 months) 3 – For Investment and Trading 4 – Fixed Deposit (Mid Term Saving) With the 4 bank accounts, I am absolutely clear on money movement and transactions. It also helps to save time (less than 5 mins) in tracking by just downloading the monthly statement from the each bank.   I also simplify it into broad category as follows: I have...

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Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (6)

Read? Will You Try To Pay Off Your Housing Loan ASAP If You Have One? (5) Yesterday, I casually asked a colleague when is he getting his CPF and what is his investment plan? He told me he got it 3 months ago and also attended CPF Talk on Investing Options for Reaching 55. He told me he has no any other investment plan except to leave it in CPF to service his housing loan – another 11 years to go!!! I guess he must have upgraded his home at least once. Probably, he is like many other CPF members...

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Work Less and Gone Fishing Planning Room (4)

Read? Work Less and Gone Fishing Planning Room (3) More ideas from the book: “What Color Is Your Parachute? For Retirement.” Three Levels Of Retirement Happiness Pleasure – Level 1 Engagement – Level 2 Meaning – Level 3 Engagement – Level 2 This level introduces a new element: challenge. But why would you want challenge in your retirement? Here ‘s what Csikszentmihalyi’s research discovered. When the challenges in your life are to far above your level of skill, they create anxiety. You’ve probably had a job like that at one time or another. But when the challenges in your...

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