Author: Dr Wealth

Testing Your Investment Ideas: How We Found 1566.10% Returns

How do you validate if your idea works? How do you know if not for sure, then at least historically, that what you do works? The answer is simple. You see what happens if you performed this strategy over the past ten years. You test it. And you test it using tools the professionals have access to and consider their golden goose. A Bloomberg terminal. 1566.10% Returns over 10 years. Or about 156.6% returns a year on average factoring in compound growth. The white line indicates the performance of the S&P 500 Index. We used a Bloomberg terminal to...

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Why You Shouldn’t Feel Embarrassed About Buying The Wrong Stocks

Ask any investor out there about his investment journey and chances are, he would have bought the wrong stocks or made a mistake when doing so. Maybe he invested in a company without knowing the full details or upon hearing some stock tips. Or allured by top volume penny stocks which go nowhere. Or simply take profits too soon and hold on to losers like forever because you cannot bear to ‘realize’ the losses. While it is natural to feel embarrassed about making these mistakes, I think there’s no reason to dwell on those emotions, especially when it comes...

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3 Little-Known Principles of Warren Buffett 90% of Investors Don’t Know

I’m a huge fan of Tim Ferris (and Buffett obviously). Why? The answer: reproducible results. He goes after the top experts in every field, questions them, interviews them, goes behind the scenes, and then tries to find out how they do what they do and in the exact fashion they do it so he can achieve the same results. Doing so is an incredibly intimate process. To get results like the pros, you have to move like them, act like them, even think like them. You have to model their thoughts. Their methods. Their principles. And especially their principles....

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5 Lessons I Learnt As a 30 Something Investor

As a 30-something investor, I sort of had a ‘180 degrees’ change in my mindset as compared to my younger 25+ self when it comes to investing. For one, I used to spend on gaming, going out with my friends/buddies and dining out in my 20s, especially when I do not have any immediate commitments to worry about. However, it’s a whole new ballgame for me once I head past the 30 years old mark. The Need to Balance Investing and Life Events In general, people in their 30s have all these commitments to worry about such as: New...

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5 Stocks Warren Buffett Would Buy If He Was S’porean

Warren Buffett is known to be one of the greatest investors in the world. He’s made his billions in the stock market buying great American businesses such as Coca Cola, McDonald’s, and Wells Fargo (many of which have now expanded globally)… and holding them for the long term. But… …Have you ever wondered what he would likely buy in our local stock market if he were a Singaporean? Let’s find out! There’s no secret behind how Warren Buffett picks his companies. In Berkshire Hathaway’s 1994 annual letter, Warren Buffett wrote: “…We believe that our formula – the purchase at...

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Should The Middle-Class Invest? Or Is Investing Only For The Rich?

On “Only The Rich Can Invest Since It’s So Expensive” The first myth uttered by most people I know is that: “Investing is only for the rich.” “Ah! You can only invest because you have a $5k salary, and you have no debt, and you’re single, and you don’t have a house to pay for, or a girlfriend/boyfriend to spend it with, or parents to pay a stipend to. And you don’t have bills. No insurance premiums. No ongoing hobby. No children to care for. Of course easy to invest la.” Unnamed relative. Well. No. Not at all.  ...

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5 Reasons Why Your Friend’s Stock Tips Will Never Work

Imagine working your socks off in your 9am – 9pm job, and then suddenly, you hear news that a colleague of yours just bought a shiny new car after making big bucks in the stock market. Having had enough of slogging away for what seems like an eternity and never being able to afford the luxuries of life, you want to know how he did it. Luckily, your colleague is in high spirits and wouldn’t mind sharing some stock tips with you – like how to flip some stocks for quick money. Wary, you put in only some savings...

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Why I Choose to Invest Early Even When My Mom Disagreed

Like most Singaporean families, my mom is firmly in the camp of “work hard, upgrade yourself constantly, get promoted, get higher pay, rinse and repeat”. Which is why when I mentioned that I was going to be investing in the stock markets for much of the foreseeable future, my mother almost immediately went nuclear. Before I could even start to try and calm things down (or explain myself), she launched into how I was gambling with my salary, throwing away my future, and dooming the entire family to repay my soon to be, stock market incurred debts. Like most...

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Why You Shouldn’t Keep All Your Money In The Bank

How many of you have heard the overused cliche that you need to “make your money work for you” and not simply leave it in the bank? I have. I’ve sat through countless seminars and workshops in the past couple of years where I have heard this phrase being thrown around. They will give the example that a plate of chicken rice that costs $2.50 ten years ago now costs about $4… and this is due to “inflation” eroding the value of our money. But, if you take a little initiative and check SingStat’s reported inflation rate for 2018,...

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Top 5 S’pore Undervalued Stocks (May 2019)

Deciding which companies are undervalued can be a massive pain in the ass. To new investors, trying to even find them from among the 700+ stocks listed in the Singapore Exchange can prove to be a nightmare. To add on to the trouble, there are a dozen approaches, a dozen “gurus”, and a dozen ways to “calculate” if a stock is indeed undervalued. Too often, this information overload paralyzes new investors. “But X said this! And Z said that! But my friends told me A! And my uncle told me B! Alamak! How!?” Me in 2007, trying to make...

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Top 5 Safest S’pore Blue-Chip Stocks In A US-China Trade War

“I am a Tariff Man.” Donald Trump declared this on his Twitter feed last December, and I couldn’t help but imagine the orange-haired US president dressed in a superhero outfit and continuously shouting “Stupid Trade!” while zapping away huge piles of Chinese imports with his laser-eyes. As trade tensions between the US and China continue to stay uncertain, you might be seriously considering if you should start pulling your money out of stocks. We don’t recommend doing that at Dr Wealth. In fact, staying invested is one of the key investing principles we follow – and we might even...

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What Can You Do If Your Kid Is Not Smart Enough For Singapore?

I was born in 1983. That same year, Prime Minister Lee Kuan Yew said in his annual National Day Rally speech “If we continue to reproduce ourselves in this lopsided way, we will be unable to maintain our present standards. Standards of competence will decline. For how can we avoid lowering performance when, for every two graduates… in 25 years’ time, there will be one graduate, and for every two uneducated workers, there will be three?” Both my parents are not graduates. I must have felt shitty if I could understand what he had said at that time. In...

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[Case Study] How We Made A 44% Gain on An Undervalued Hong Kong Conglomerate

We didn’t blindly “hope” that our investment in this Hong Kong stock would return 44%. In fact, using our Conservative Net Asset Valuation (CNAV) method, we knew the odds were stacked in our favor. Unlike the previous Nico Steel Case Study, this time, we are able to provide full evidence. Entry Price: 1000 shares at HK$29.10 on 31 May 2017 We bought another 1000 shares at HK$26.95 on 28 Jun 2018… and sold when it delisted with a cash offer of HK$38.80 We hope by showing you these “proofs”, and by sharing our entire thought process, you will be...

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Can You Protect Yourself From Unfair SGX Delistings?

The only train operator (which often breaks down), SMRT – Delisted.The 3-in-1 coffee brand we buay hiam (aren’t fussy) about, Super – Delisted.The massage chair company with Andy Lau’s face on its ads, OSIM – Delisted.The telco that made Circles.Life possible, M1 – Delisted. Investors in recent years have seen a slew of stock counters being delisted from the Singapore Exchange (SGX)… some of them at very unsatisfactory exit offer prices. You can see the delisting trend pretty clearly as I plot out the number of SGX-Listed companies from mid-2016 to now, below: Source: SGX Market Data You might...

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