Author: Dr Wealth

Income Tax – Singapore vs US

It is coming to the end of the year soon and we will need to file our taxes! I was just looking at the tax brackets and see where I stand, and if I need to cut some taxes by doing a CPF top up or putting money into SRS. I always believe Singapore income tax is lesser than most of the developed countries. Curious, I went to take a look at the US income tax and made a comparison. The first table below shows the Singapore tax brackets (2010): The following table shows the US tax brackets (2010)...

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Trading Report Card – Nov 10

Market pulled back for Nov 10. I was a bit greedy getting into too many positions. I really began to realize I am very much less affected by ups and downs in my P&L statement. I am willing to give more space for price fluctuation in exchange for a reaping a greater profit from a major...

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Questions you would be asking successful investors and traders

I have started a project with moolah to interview successful investors and traders. I was pretty inspired by books like “Market Wizards“, “The New Market Wizards” and “Inside the House of Money” as I have learned a lot by understanding the perspectives and thought processes of different investors and traders. I have already interviewed a couple of them, and will do even more in the coming month. The end product of the project can be an ebook or audio or any other media format. What do you think? Do you think this is a good idea? Would you be...

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Learn to like what you have to do?

Dennis recommended to read about Tan Sri Dr Tan Chin Tuan’s corporate history, and how his approach to making money scrupulously is his key principle in life. I managed to pick up a copy from the library.  In the preface of the book, Chew Gek Khim (his grand daughter) quoted him, “It is easier to learn to like what you have to do, than to choose to do what you like”. Despite his illustrious corporate history, I was more struck by that statement. It seems to me, he is suggesting that it is much harder to pursue your passion,...

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4 Reasons why you cannot invest like Warren Buffett

Warren Buffett is the greatest investor of all times. Many people look upon him for investment advice. Some even follow what he does as closely as possible. Isn’t it the logical way? Do what successful people do and you will be successful too? I would say sometimes. To replicate success, you must ensure you emulate that person as closely as possible. If you take a closer look at how Warren Buffett invests, you may not be able to follow. Here are 4 reasons why: #1 – Buffett has access to large cash from his insurance businesses Buffett loves the...

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Trading Report Card – Sep 10

The market had a good run in September 10. STI broke 3,000 points convincingly and has not look back since. The market seems to be going for a short pullback the last few days and it may be a good time to get in some stocks during the retracement. I ended with a S$422 profits from stocks in Sep. Not very impressive but I can only take what the market is willing to give. I have a few counters still under holding and are not shown in the table below. I hope they do not trigger my stop loss...

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Are you a Macro or Micro investor?Are you a Macro or Micro investor?

When people speak about macro and micro, does economics come to mind? I do. Macroeconomics, as Investopedia explains, “focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world.” While “microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it.” If you are a macro investor, you would look at GDP, CPI, interest rate, etc to determine the state of the economy. You would probably...

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Backtesting T3B System

Funny that I did not backtest the trading system that I have been using for 2 years. And I realised this is precisely the reason why I am not profiting from it. During the recent gathering, I was decided to do the back test and was convinced that the system works. It was me that did not apply the rules properly. Here are some results of the back testing that I have done: Back testing parameters: Allocate $10,000 when buying/selling a stock Commission of S$25 per transaction Financing charges not considered Based on 1 year timeframe (before 1 Aug 10) One of...

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Rethinking Warren Buffett

I always think that Warren Buffett is an investor. To me investor means investing for capital gains – buy an asset at a lower price and sell at a higher price in the future. You may say Buffett adopts a buy-and-hold strategy and does not sell shares frequently. Then how does he make such a fortune? If he does not sell, how is he going to profit? I start to get some insights after I read “The Essays of Warren Buffett“, and realised I misunderstood Buffett totally. Firstly, Buffett buys business. He prefers to buy the entire company from...

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How to buy Renminbi?

As we know, the Chinese RenMinBi (RMB) is artificially suppressed by the central bank to make export attractive to other countries. China’s growth is fueled by her exports and hence, a rising RMB will lower demand for her goods and in turn, hinders economic growth. Many months back, US has pressured China to allow RMB to appreciate. On 21 Jun 10, China finally bucked and let RMB appreciates 0.4% against the dollar. However, most analysts expect the RMB will gradually appreciates. Now, knowing this and having some faith that the RMB would be appreciating in the future, how do you...

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Trading Report Card – Aug 10

Time flies. August seems like a fast month for me. There were also a lot of changes going on with my investment capital, focus and brokers. Let’s talk about brokers first. I have closed my MFGlobal account as the capital was no longer segregated from their operating account. I shift all the capital to POEMS. I also have another forex account with CityIndex which I eventually closed too as I was looking into an account to trade both stocks and forex. T3B recently got in Kinetic Securities from Australia to offer accounts to us. I must say they are...

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Starhill Global REIT – Fundamental Analysis

Starhill Global REIT invests in retail space at prime location. Based on her 2009 annual report, there are 10 properties in the portfolio. Locally, the REIT has Ngee Ann City (27.33%) and Wisma Atria (74.23%). 7 of the properties are in Tokyo and 1 in Chengdu. They just acquired David Jones Building in Perth and intend to acquire 2 prime retail space in Kuala Lumpur. A rights issue was underwritten in 2009 to raised cash. See what the executive Chairman said: “In 2009, Starhill Global REIT successfully raised S$337.3 million through a fully-underwritten and renounceable 1-for-1 rights issue. The...

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Sakae Holdings – Fundamental Analysis

I like sashimi. Sakae is an affordable Japanese restuarant to go to. It has become a name that is synonomous with Jap food and sushi. Let’s take a look how their stocks fare. The current price of Sakae Holdings share is S$0.200. In 2009, the earnings per share is S$0.23. This gives a P/E ratio of less than 1, 0.9 to be exact. Pretty attractive huh? Next we’ll look at the debt to asset ratio. The total debts in 2009 is S$26.769M while the total assets is S$47.024M. Hence, the debt to asset ratio is about 57%. Not bad either....

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How much money do you need (want)?

Have you ever asked yourself how much money do you need? Everyday we are working for money, constantly worrying about it and always hoping we can have more. Most of us will think that we will be happy by having more money. Is that so? How much do you need? If you say we need money to survive, then you would not need that much. Maslow’s hierachy of needs (see figure below) specified that humans need to fulfil the basic physiological needs like food, water, clothing and shelter in order to think about something else. I would say most Singaporeans would be able...

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How to Choose a CFD Broker Part 2

CityIndex I just closed my Forex CFD trading account with them. What I like about them is the withdrawal procedure. Unlike the other brokers, you do not need to fill in a withdrawal form (hardcopy) and mail/fax it back for processing. I just dropped an email and supplied some details for verification to complete the request. The cheque was deposited in my account in the same day. As for the platform wise, I have no complains. I particularly like the customer report generation. I can configure the time frame and generate my trade history. It even create a pdf form for me!...

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