Author: Dr Wealth

Successful Completion of How to Invest 2013

This event was meant to be held last December but I guessed it was a holiday season so the response was not good. We postponed the event to Jan 13 and within 12 hours, 60 seats were taken up and more people wanted to come! It was a happy problem and we managed to secure a bigger venue and we opened up another 50 seats. It was taken up within hours! Thanks for those who had come and I believe you have taken away something useful. For those who did not manage to get a seat, I will be...

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A Different Kind of Fund – Interview with Aggregate Value Fund Managers

It was the last working week of the year, that few forgotten days tucked away between Christmas and the New Year. Driving that morning was a surreal experience, with the roads devoid of cars despite them running on their ridiculously priced COEs. Everything seemed to move slower, in a more relaxed manner. The surreality factor went up a notch when Alvin and myself found ourselves in an industrial building, seated across the table with Eric Kong and Wong Seak Eng, two gentlemen who founded and now run the Aggregate Value Fund. In place of the customary IWC watches and...

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The Trend Following Bible by Andrew Abraham

I have done trend following in the past but it was not successful. I believe many people had the same experience for me and are quick to denounce trend following does not work. No matter how we hold that opinion, there are enough professionals making money with trend following strategies. Andrew Abraham is one of them. In this book, he showed me the reality of trend following and I realised how wrong my expectations were. Here are the 3 things I learned from the book #1: Compounding realistic profits (not get rich with just one or two trades) Andrew...

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Does your agent have your best interest in mind?

Some years ago a friend of mine, let’s call him R, purchased a condominium unit in the east. It was a two bedroom unit located on the 9th floor, right next to the mrt station and a short commute from where he and his girlfriend would both work. He had seen a number of units in the vicinity, and was ready to commit. He made a sincere offer just slightly below the asking and kept his fingers crossed. The agent whom R was working with, happened to hold the exclusive rights for the unit and R did not have...

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Review of Singapore REITs in 2012

REITs have been one of the favourite sector investors love. Investors may feel secured with properties as the assets. Investors may also love the regular quarterly payouts that acts as passive income. However, I do not buy REITs because of income. I buy REITs for capital gain. The reason why I like REITs is because they are easier to value than other businesses so I would be able to know if a REIT is cheap or expensive. On 9 Mar 12, I released a list of Singapore REITs and said that 7 of them are trading at more than...

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The Singapore Econony 2013: Inflation and what it means for you.

After allowing scandals to hog the headlines over the past year, editors at The Straits Times moved into a pensive mood and put out two headliers on the economy. On the last day of 2012, the front page read ‘Slow growth next year: Economists’. The next day’s headlines read ‘Economy grew a slower 1.2%’. The contents were similar and bleak. In a nutshell: ‘Singapore will face another bout of slow growth and high inflation next year as the painful process of economic restructuring continues to bite. Even the employment market, which has held up relatively well this year, is...

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Review of TradeHero – Virtual vs Reality

TradeHero is a new virtual trading app on the iPhone and iPad. Although we have known about simulated trading games and competitions, it is unprecedented in a way as TradeHero combines trading and social network. If you are a good stock picker and top the charts with high Return On Investment (ROI), players can opt to follow you by paying US$1.99 per month. You will get to pocket half of this fee by giving people a glimpse of your trades. Or, you can pay US$1.99 to see the top traders’ trades and try to mirror them in your real...

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Top Favorites in 2012

2012 has come to a close. It was indeed another unpredictable year. 2012 didn’t look anywhere close to a bull market in stocks for the first half of the year and yet, Straits Times Index returned about 18% year-to-date excluding dividends. Once again, it has proved market predictions are not worth much. Over here in BigFatPurse, we have made more friends and gained more knowledge. We are heartened to see growth in our readership. Thank you for being part of the learning journey with us. The following articles were read most by you on BigFatPurse: Top Favorites in 2012 Play...

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5 things you need to know about Bonds – and why they are like Parma Ham

My brother returned from a European trip last week and his haul of goodies included Parma Ham from Parma, Italy. (where else, duh). Over the course of the week, we had three groups of friends come over to partake in the goodies and to feast on ham and melon.  Among our friends, some relished and looked forward to it. For those eating parma ham for the first time, it was a novel experience. The salty slimy ham against the sweet and crunchy melon makes for an interesting proposition. While some loved it the moment they tried it, for many...

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The Permanent Portfolio by Craig Rowland and J.M. Lawson

Permanent Portfolio (PP) is the best investment strategy for anyone. It has low volatility and decent returns that can protect you against all economic situations. It does not require lots of effort to keep up with the market as you only need to review your portfolio once a year. If you do not know about this beautiful strategy, you got to read The Permanent Portfolio. To get you going, I have summarised the book in the following points but nothing beats the detailed explanation about PP and the options available to build your own portfolio. You can also read my interview...

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Surge in web traffic took down BigFatPurse site

Dear BFP readers, BigFatPurse was taken down on 14 Dec 12 after the bandwidth limit was breached. The website received a traffic of 52GB within 2 weeks! It was mainly due to the Secrets of Singapore Trading Gurus videos being made available to the public. Thank you for all the interests in the videos. Instead of working within the limits, we have moved the videos to another affordable storage and the videos are up and running again. So you still get to watch the videos for free! As we wind down the year, we would like to share with...

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What can Kobe Earthquake tell us about the financial markets?

I went to Kobe during my 2012 Japan trip. In 1995, Kobe suffered a 7.2 magnitude earthquake which caused a loss of 6,000 lives. I was not interested in this event while I was in Japan, but I watched the episode on Seconds to Disaster that I gleaned lessons applicable to our financial markets. Unknown unknowns Prior to this, Kobe was not known to be vulnerable to Earthquakes. The traditional Japanese houses were built with heavy tiled roofs to protect against typhoons. However, the Japanese were not totally oblivion to a possible earthquake so they constructed the Hanshin Expressway according to...

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Economics Professor Talks Money – Dr Tan Kee Wee

You would have heard Dr Tan’s interesting economic insights on 938LIVE Money Talks. He has been doing the show for 5 years running. By telling stories to illustrate his views about the world of finance and investments, he made it easy and interesting for the laymen to understand. Jon and I unanimously wanted to invite him for a chat and hopefully, glean some insights from him. Below is what transpired during our conversation with Dr Tan. What do you do for a living? My clients pay me for my economic advice. I also make some money on my own from...

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Available Now! Secrets of Singapore Trading Gurus Videos

It has been one year since the Secrets of Singapore Trading Gurus book was launched. Thank you for those who have bought the book. The old link that hosted the videos is no longer valid as moolah.asia has closed down. I have ported the videos to BFP. Now, everyone can access the recorded videos of the interviews regardless you bought the book or not. The videos feature the following traders (less Dave Foo): You can access the videos here. Related posts: Secrets of Singapore Trading Gurus vs Secrets of Highly Profitable Traders On Sale: Secrets of Singapore Trading Gurus...

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Fooled by Randomness – The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb

Imagine the most obnoxious tai tai you have ever come across – demanding and loud, dripping with bling, overpowering perfume; a total assault on all your senses. In the realm of books, this is exactly what Fooled by Randomness is. Nassim Taleb has an axe to grind with traditional market thinkers and like the extremely wealthy socialite in the classy restaurant, he isn’t afraid of gesticulating wildly and demanding that immediate and undivided attention be lavished on his ideas. And like the lady in question, there is no question that this book is rich. It is so laden and...

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