Author: Dr Wealth

Do not buy corporate bonds

Everyone is familiar with Government Bonds and Treasury Bills. How about corporate bonds? A company needs cash and capital to run or expand the business. There are several ways for the company to raise money. It can borrow from the bank, getting listed, execute rights issues (if listed), take in private investments or issue corporate bonds. Out of these methods, the company will likely choose the least cost of borrowing. So if the company decided to issue bonds, it means that it is the cheapest the way to borrow. More often than not, corporate bonds will give out a...

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Read to Grow Rich for week 50 of 2010

Here are some interesting blog articles from local money bloggers this week: The problem about regular investments (RSP) by Adrian Khiat Top 5 Reasons Why You Should Invest in Singapore Property by Mr Propwise Why is it so difficult for Singaporeans to buy a reasonable priced home when its easy for foreigners? by Drizzt Is Property Truly Affordable? by Musicwhiz Value-for-Money in Financial Freedom by Panzer My War Room (4) by Createwealth8888 Porter’s Five Forces Series Part 1 – Threat of Entry by Musicwhiz And from international money bloggers this week:...

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Jim Rogers 3 Keys to Investing

Jim Rogers appeared in a Chinese talk show some time back (see video below – Thanks to Jimmy and Dennis). When asked what are the 3 keys to investing, he mentioned the following: #1 – Skeptical Be skeptical of what experts, analysts, journalists, reports, brokers, fund managers, financial advisers, professors, etc, say. He mentioned that 80% of the finance professionals underperform against the market averages. Hence, there is no point in listening to them. An investor must have an independent mind, not get swayed by comments and advice. You must believe in yourself, your research and investment method. You...

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Travel Investing – Philippines

Last week, I took a holiday in the Philippines. I spent 4 days on the famous white beach in Boracay and 2 days in metropolitan Manila. It is always interesting to observe the foreign country way of life and culture. I have thus pen my observations and thoughts in this post. Of course this blog is about investment, I shall focus the content on the economics and business of the country. Getting there – Cebu Pacific Air A good place to start is how did I get there? I took a budget airline, Cebu Pacific Air, to Manila. It...

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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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