Author: Growing your tree of prosperity

JD Aftermath #2 : Folks you will meet at the course – Generation X.

By the time I can write this, I feel a lot better. My grades are finalised and I managed to just squeeze north of the equivalent of an honours classification. This closes another chapter of my life. To discuss the folks who you will get to meet in Law School, perhaps it is better to break it down into three separate articles. First before I start my fairly candid write-up, I’d just like to say that overall the people in this program are great folks to be associated with. I am honoured to be part of the cohort of...

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Equity Management #11 : Alpha Transport with Derivatives

First, a short personal update, I am still acclimatising myself to a 9 to 6 routine and struggling with a 6.5 hour daily sleep cycle so I am still tired after work. Given time, I should be able to return to my old blogging momentum. So far, I am enjoying my internship. At least I can spend my time on public transport reading investing books and not some legal case or textbook. I don’t miss reading legal cases because that’s what I do in the office all day ! Anyway, today I only have a short insight to share...

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Quick Personal Update : Leisure Phail !

I don’t really have anything substantial to share today and some readers from SMU Law School may be eagerly awaiting for my “kiss and tell” article on this blog. Right now, I am not in the right frame of mind to complete that article because our professors are slowly releasing the results of the final semester, as I am teetering on the brink of losing a decent degree classification, my state of mind in a huge mess. For the past two nights, I have been getting nightmares about getting shitty grades but there has been a small measure of...

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Next Talk : Investing with Less Stress. ( 18th May 2017 )

Ok, it’s time to start promoting our next talk again and this time round, we’re happy to say that we’re back to talking about investing in the stock markets. You can get more information on how to book your seat by following this link here. This time, you should act quickly because we’ve consistently sold out for all our talks but we’ve actually got a smaller venue. The topic of our next seminar is “Investing with Less Stress”. The slides are still a work in progress so my outline is still a little messy but I will be talking...

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Equity Management #10 : Example on how a market neutral portfolio is constructed.

This is for the benefit of some readers who want more information on market neutral portfolios. Right now, I still have no idea how a retail investor can get started on this form of investing and would be really grateful if intermediate investors can give me some tips on which brokers can provide this service. My only guess is that if you are high net worth, you might be able to talk to your private banker to start doing this. The book mentioned that the portfolio manager hires the services of a prime broker who can also act as...

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Random musings about Bangkok.

This is not a lifestyle blog but I spent the last 3 days in Bangkok in a fairly intense but fun trip. Here are some random thoughts from my trip. a) Singapore is losing on many fronts to Bangkok in retail and entertainment The retail situation in Bangkok is really so much larger in terms of scale and variety. The first thing you notice is that there is no “Capital Mall” effect and each mega-mall is able to develop its own character. We shopped at the Siam Paragon which is like a larger version of Takashimaya but had an...

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My JD aftermath #1 : Was it worth it ?

Ok, I’ve got sometime to blog before I head to Bangkok over the weekend for some serious shopping and eating. A couple of days after my last paper, some headhunters have started talking to me and I had a serious chance to ask myself what would be my desired price tag to postpone my legal ambitions. I have since calculated a number and have gotten back to them and they still seem interested. So drastic changes might be afoot. It might be a good time to reflect upon the past 3 years. a) General message for aspiring JDs –...

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Equity Management #9 : Long-short equity investing.

For the next few years, I will be stretching myself beyond the usual yield investing which has been instrumental in allowing me to reach this current of financial independence. One of the approach I am toying with is the use of leverage, I hope to start building a small portfolio which has a modest amount of leverage to magnify my dividend yields. The longer plan is to look at long-short investing. There are three ways to do this : a) Market-neutral strategy This strategy balances your long and short positions. The dollar value of your long and short positions...

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Personal update – Done with my JD programme ( Hopefully ! )

And just like that, I completed my final exam in SMU and I guess I would have met all the requirements to graduate with a Juris Doctor qualification. While I would have preferred to end my SMU stint in a high, my last paper was brutal and I found myself lacking the time to craft a coherent response to the exam questions. Nevertheless I should be able to move onto the next stage where I start tackling the bar exams. Perhaps in another post I would talk about my overall experience with SMU but right now, I have several...

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Mystics Secrets of the Eunuch Sorcerer !

Before I go for my exams and take 10 days off my blogging, I’d just like to address the amazing traction of my Eunuch post by looking at ways for a fresh graduate public servant to rapidly create a portfolio that can facilitate an early exit from stifling bureaucratic environment. The public service is a lot more forgiving for entry-level personnel and you will find that your early salary trajectories are quite steep to keep you interested in staying on as a public servant. Furthermore. a rookie public servant also experiences much gentler office politics making it easier to...

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Equity Management #8 : Front-running and factor crowding.

If you follow this series on my blog, one of things you will realise is that it is increasingly harder and harder to come up with actionable ideas for readers as the equity management textbook becomes even more abstract. I was wading through 3 chapters on smart beta investing before I could compose this article. Nevertheless, this column is probably meant more for my own investment education than for the hapless reader. Ok, back to equity management. To assist in comprehending this short write-up, you can refer to Dr Wealth’s excellent article on factor investing which I will share...

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If you’re an eunuch, here’s how to grow a pair !

When I left the private sector, I was already financially independent. But I wanted to see if I could get into a career which would stretch longer and give me work life balance. Unfortunately, my tenure out of the private sector was very short and I never managed to get used to the culture of the public sector. It’s actually sad what public servants had to endure in the past few months. One senior civil servant implied that they were paper-pushing eunuchs and then Parliament took turns to take pot-shots at them. Having some experience with bureaucracies, I realise...

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Equity Management #7 : Taking on more risk from a benchmark portfolio.

Most investors are normally fixated at their returns from ordinary asset classes. You take on the risk of equity for 8% returns and moderate your equity position with a bond position which is stable but only gives you only 2%. Professionals don’t have that luxury. If market returns from equity are like an act of God then individual returns which deviate from the market benchmark would be the act of Man. Professionals use Information Ratio (IR) as a measure of their skill – calculated by how much excess return (called alpha) is generated for each unit of residual risk....

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The Three Faces of Poverty in Modern Life.

In order to become richer, sometimes it is helpful to understand poverty. When Thomas Piketty published Capital in the 21st Century, it is easy for a rentier like me to dismiss this as a rallying cry of welfare-state socialists. But as it turns out, the book had the effect of deepening my conviction towards my dividend portfolio because it proposes the idea that the growth of capital far exceeds the growth of earned labour income as reflected in the ( r > g ) inequality which made the work antithetical to capitalism. The lesson I learnt is that :...

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Equity Management #6 : A unified approach to engineering portfolios.

Ok, we’re moving into a new section of the book which talks about portfolio management. The basic summary is quite simple – a unified approach towards portfolio management trumps the approach where the markets get segmented. What this means to me is quite simple, wherever possible, try to start with the entire universe of stocks. In my case, I review the 700+ counters available on SGX through my broker when looking for counters with the highest yields. Stick to table of stocks which typically gives higher yields is self defeating because even Venture does not give 6% yields anymore...

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