ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(21-03-2011, 12:28 AM)em2nre5u Wrote: [ -> ]How come this guy only mention sales and assets as targets? Normally pple give sales and profit targets...giving asset targets seems quite weird and meaningless...

It could be entirely possible that his firm has yet to make a profit; hence he is only mentioning sales figures and asset values. I don't know though, just guessing cos I am not an entrepreneur myself.

So when he says targetted growth of 25% to 30% annually, is he referring to revenues, assets or profitability? To me return on investment should mean profits over investment cost, rather than growth of just assets or revenues per se.

Mar 27, 2011
me & my money
Making a living at home
Internet entrepreneur works on own time, imparting wisdom on marketing, investing
By Lorna Tan, Senior Correspondent

Mr Fabian Lim worked for several years as a management consultant at Deloitte Consulting before he decided to become his own boss.

He set up a wedding videography business in 2001, filming weddings in Singapore, Malaysia, Hong Kong, Indonesia, Australia and New York. In 2006, his friend took over the running of the business and Mr Lim, 39, retained a small share.

Meanwhile, in 2002, a friend who returned from the United States introduced him to Internet marketing. The idea of being able to make a living at home through the Internet so intrigued him that he devoted the next five years to mastering Internet marketing techniques by attending various online courses run by US experts.

In 2005, he had his first breakthrough when he sold market research software online and it generated sales of US$200,000 over 20 months. He set up a blog and built a mailing list consisting mainly of online readers of his weekly newsletter that gave updates on Internet marketing techniques and the latest Web products.

In 2006, he launched his own instructional program that taught users how to utilise Google's paid advertising system effectively. He achieved sales of US$100,000 in five days.

He started providing Internet marketing education - via the Web, and through running courses in Singapore, Malaysia and Indonesia. To date, he has taught more than 4,000 people how to make a living by marketing Web products and services.

Towards the end of 2009, he picked up stock trading, and learnt how to buy and sell stocks over the Internet using a trend-tracking trading system.

Come July, he will launch his proprietary market trend optimiser software SharesXPert globally on his site - www.sharesXPert.com

The software helps in selecting stocks that are potentially on a market uptrend and provides buy and sell signals to the user.

Mr Lim graduated with a business degree from the Royal Melbourne Institute of Technology, administered by the Singapore Institute of Management, in 1995. He worked at Texas Instruments for a year before joining Deloitte.

He is married to Ms Evangeline Lee, 37, who assists him in his business as a director of operations.

Q: Are you a spender or saver?

I spend about 30 per cent of my money, and invest 50 per cent. The remainder is held in cash. My savings account earns less than 1 per cent per annum. So, rather than save the money, I choose to invest it in my business and in the stock market.

Q: How much do you charge to your credit cards every month?

I carry four credit cards in my wallet: Citibank Visa, UOB Visa, POSB MasterCard and American Express.

I charge around $10,000 a month to these cards, the bulk of the charges being business-related, like air tickets and hotel expenses. The rest are charges associated to my hobbies like aviation and personal travel.

Q: What financial planning have you done for yourself?

My portfolio comprises my businesses, insurance, stocks and cash.

Between 2009 and late last year, I set up three firms - ClickEvents.com.sg, ClickAcademy.com.sg and ClickSystems.com.sg - which focus on events management, online marketing and stock trading education, respectively.

I own several life insurance policies: three term plans, two whole life, two endowment and two investment-linked insurance policies which invest in Europe, Asia, global technology and global equity. I have a life cover of $2.5 million and a critical illness cover of $400,000. I review these policies once a year with my financial advisor Felix Kim from Prudential. Ever since I learnt how to invest in the stock market, I have stopped buying investment-linked insurance policies.

I set aside US$100,000 (S$126,000) for my stock investments, which are mainly US and local stocks that are selected using my system SharesXPert. I do not invest more than 10 per cent of that in a single counter.

I was short on F&N and Genting on March 14 and sold them on Monday. At present, the market is uncertain so I have no positions. My monthly target returns are 5 to 25 per cent.

I'm also planning to invest about $200,000 in a flight chartering business this year-end. A few friends and I are considering buying a Turboprop plane that costs US$3.5 million.

Q: Moneywise, what were your growing-up years like?

I was fortunate to have grown up in a middle-class environment. I have two brothers, one older and one younger.

My dad was a general manager at a petrochemical firm but he ventured into the business of distributing cookware when I was 10. He was successful and enjoyed living comfortably. My mother helped him in his business.

But I was certainly not spoilt as a kid. I had to work for things that I wanted. For instance, I owned and operated a mobile disco company when I was in Catholic Junior College to earn some pocket money. Then I was the resident pianist at Changi Airport Terminal 2's transit lounge for two years, to pay for my university fees.

We lived in a 3,000 sq ft, three-storey, semi-detached house in the Upper Thomson area and moved to a 1,500 sq ft apartment at Mandarin Gardens when I was 16.

Q: How did you get interested in investing?

I started getting serious in investing only slightly less than two years ago. I'm a late bloomer in investing because I spent most of my working years focusing on being an entrepreneur.

Now that my businesses are more or less stable, I am able to seriously focus on investing to grow my money.

To this end, my investment strategy involves managing my funds using my own stock trading system, SharesXPert, an activity that takes less than 30 minutes a day.

Q: What property do you own?

A 1,378 sq ft three-bedroom freehold condominium at The Suites At Central, Devonshire Road. I bought it in December 2009 for $2.6 million. The current valuation is approximately $3.2 million.

Q: What's the most extravagant thing you have bought?

It was a recent acquisition of a four-seater airplane, Columbia 350. I bought it last December for approximately US$400,000 in cash. Due to the unavailability of aircraft loans in Asia, I had no choice but to pay for the aircraft entirely in cash.

The aircraft is based in the US, and I had the pleasure of flying it there in December and January. I spent about 30 hours in the aircraft and every minute of it has been pure pleasure.

Owning a private aircraft offers me unrivalled convenience not possible with regular commercial air travel. For example, as I travel to Kuala Lumpur very often, getting there via private aircraft can save me approximately one hour door to door. And I won't be subject to liquid, aerosols and gels regulations. Lastly, I can use the plane to provide joy rides to the less fortunate. I plan to have the plane here in June.

Q: What's your retirement plan?

I really love what I do. I get up any time I want and work from home. What more can one ask for? I hope to continue to do what I'm doing for a long time.

If I ever retire, I hope to spend my retirement years as a professional poker player. Fly around the world in a private jet and take part in poker competitions!

My wife and I currently need about $20,000 a month, which includes paying our mortgage and income tax.

Q: Home is now....

My condo at Devonshire Road.

Q: I drive....

A gold-colour BMW 7 Series that I bought in July 2009.

lorna@sph.com.sg

WORST AND BEST BETS

Q: What has been your worst investment to date?

I set up a business with a partner selling 'silicon bras' in 2005. We were one of the first to bring the product to Singapore, and business was brisk at first. However, other big-time competitors started coming in and the market was soon flooded. The retail price dropped considerably and so did our margins. In the end, my storeroom at home became stocked with silicon bras to the point where I was giving them as birthday presents to my female friends.

My investment was fortunately only $10,000, and I lost half of it when I closed down the business in 2006. I learnt that physical product retailing is tough, especially if you can't differentiate your product from that of your rivals. Now, I don't deal with physical inventory because my business involves software and knowledge.

Q: And your best investment?

My best investment to date, in terms of net dollar gain, is probably my current property in Devonshire Road.

It appreciated by close to $600,000 in just one year.

My best investment to date, in terms of net dollar gain, is probably my current property in Devonshire Road.
It appreciated by close to $600,000 in just one year(approx 23%)

If he bot it in mid-2009, i believed him by now appreciated by 23%....So those who sold their ppty during dat period and keep their proceed in the bank waiting for market to crash...will be very disapponted, but only a handful of them most are downgrader near retiring age...

Pretty impressive fellow! He seems to have bought/sold properties at just the right times, netting nice gains in the process. Plus, he also enjoyed 4.5% rental yield on two properties. I wonder if he can repeat this feat again with commercial property?

Apr 3, 2011
me & my money
Army man has a shot at selling houses
He shed his fatigues after a decade and was a top agent at property firm last year
By Lorna Tan, Senior Correspondent

Armed with a polytechnic diploma, Mr James Ng signed on as a regular in the army in 1998 because he liked the stability that came with the job. He was an army captain when he left the force a decade later to join bungalow specialist RealStar Premier Property Consultant as a property agent.

Looking back, Mr Ng, 35, said that it took a lot of courage for him to step out of his comfort zone and venture into a job that did not come with regular pay.

'The first few months in the job were tough as I did not manage to sell any property, and as a result, had no income,' he recalled.

He was also on a steep learning curve. For instance, he had to be careful about not misrepresenting information such as land size to his clients and he had to familiarise himself with the property regulations.

His efforts paid off, and he was one of RealStar's top producers last year.

Mr Ng marketed smaller landed properties like semi-detached homes first before progressing to bungalows. His first deal was a 3,400 sq ft semi-detached house in Bukit Timah which was sold for $3.95 million in early 2009, earning him a commission of $15,800.

His biggest property transaction to date is a 9,600 sq ft bungalow in Berrima Road. It was sold at $12 million in 2009. It was a co-broke deal with three other parties and he pocketed $20,000 in commissions.

He is now on a lookout for commercial properties as a means to grow his passive income.

Mr Ng graduated from Ngee Ann Polytechnic with a diploma in electronics and computer studies in 1997. He is married to Ms Sharon Yip, 37, and they have two sons Cayden, five, and Kavis, two.

Q: Are you a spender or saver?

I am a saver. Other than household expenses which take up 30 per cent of my income, the rest is saved or re-invested.

Q: How much do you charge to your credit cards every month?

I have six credit cards but I use two of them more heavily, mainly for the discounts and reward points. I charge an average of $3,500 monthly to the cards and I make full payment each month. I withdraw about $500 fortnightly from the ATM.

Q: What financial planning have you done for yourself?

I don't believe in investing via insurance so all my policies are for providing protection. I own a term plan, a personal accidental cover and medical insurance. I am covered $600,000 on my life. The family's annual premiums are $3,400.

I've invested $22,000 of my Central Provident Fund Special Account in equities via a unit trust.

I don't invest in instruments that I am unfamiliar with. All my investments are mainly in properties that I jointly invest in with my friend who is also a property agent.

Q: Moneywise, what were your growing-up years like?

I am the third child in a family of four children. We lived in a zinc-roof house in a kampung in Jalan Ulu Sembawang.

My father was a supervisor in a construction firm and my mother was a food vendor in a primary school. I saw how hard my parents worked to make a living. Despite the long hours at work, they could hardly save.

I was not interested in my school work but I managed to graduate from polytechnic. I signed on with the army as it could give me a stable job with stable income.

Q: How did you get interested in investing?

In 2000, I invested in shares without any knowledge of what was going on. It was more like gambling than investing.

In 2002, I invested $30,000 in an ornamental fish business with two friends and lost $10,000 when it closed down two years later.

In 2004, my wife and I set up Mario Dog pet shop in Tampines with an investment of $50,000. It is profitable and my wife is managing it.

My interest in property investments grew when I invested in a condo unit in 2007 with my housing broker friend.

Q: What property do you own?

In 2005, I bought a 1,227 sq ft condo in Simei for $565,000. I sold it for $750,000 in 2008. In the same year, I bought a 1,580 sq ft executive apartment in Pasir Ris Central for $575,000. It is currently worth about $620,000.

Meanwhile, in 2007, I bought a 951 sq ft condo unit in district nine with my friend. The unit cost $1.2 million and we sold it for $1.45 million a year later just before the global markets crashed in September 2008, at the onset of the global financial crisis.

Last year, I invested in two condo units in the East Coast with my friend. One is a 1,518 sq ft unit bought at $2.02 million and sold at $2.27 million within the same year. The other is a 1,109 sq ft 99-year leasehold property bought for $1.1 million and sold with tenancy at about $1.4 million in January. We enjoyed a rental yield of 4.5 per cent for a year before it was sold.

Q: What's the most extravagant thing you have bought?

It would be my current car, a BMW X3 which I bought for $132,000. Although it is a depreciating item, it has served my family and me well for the past two years.

Q: What's your retirement plan?

I hope to work for as long as I can because I enjoy what I am doing now. My wife and I are not big spenders, so I think a monthly amount of $4,000 to $5,000 should be very comfortable during our golden years. Currently, I am looking at investing in commercial properties, like shophouses, that should be able to give me a stream of passive income. This would be part of my retirement planning.

Q: Home is now...

My executive apartment in Pasir Ris Central.

Q: I drive...

A black BMW X3.

lorna@sph.com.sg

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WORST AND BEST BETS

Q: What's your worst investment todate?

It was investing in penny stocks without having much knowledge of how the companies were performing. When I was 24, I invested a total of $20,000 in an Indonesian stock and, over a 10-month period, I lost 95 per cent of the value when the price fell. I bought more of the stock when the price fell because I refused to believe that I had picked the wrong stock. I didn't do my homework... I was silly then.

Q: And your best investment todate?

This was when I bought my first private property in 2006. With the profit of more than $150,000 generated from the sale of that property in 2008, I bought an executive HDB apartment for my own stay in the same year.

(03-04-2011, 08:12 AM)Musicwhiz Wrote: [ -> ]Q: What property do you own?

In 2005, I bought a 1,227 sq ft condo in Simei for $565,000. I sold it for $750,000 in 2008. In the same year, I bought a 1,580 sq ft executive apartment in Pasir Ris Central for $575,000. It is currently worth about $620,000.

Meanwhile, in 2007, I bought a 951 sq ft condo unit in district nine with my friend. The unit cost $1.2 million and we sold it for $1.45 million a year later just before the global markets crashed in September 2008, at the onset of the global financial crisis.

Last year, I invested in two condo units in the East Coast with my friend. One is a 1,518 sq ft unit bought at $2.02 million and sold at $2.27 million within the same year. The other is a 1,109 sq ft 99-year leasehold property bought for $1.1 million and sold with tenancy at about $1.4 million in January. We enjoyed a rental yield of 4.5 per cent for a year before it was sold.

Won't he be tax on stamp duties? Still have profit?
If he flipped too much, he will be tax on the capital appreciation.

(03-04-2011, 08:47 AM)WolfT Wrote: [ -> ]Won't he be tax on stamp duties? Still have profit?
If he flipped too much, he will be tax on the capital appreciation.

Good point WolfT! I didn't think of that. Yes indeed, because of the cooling measures implemented since 2010, speculators who "flip" are subject to sellers stamp duty, and this can be pretty harsh if you flip within a year or two.

Obviously, James Ng declined to mention his net gain on the buying/selling of properties. The gross profit always sounds very attractive, especially if you put down very little cash. But to get a more realistic picture, we have to see the net profit after expenses (it's the same with corporate analysis as well haha).

maybe it was before 13 Jan 2011?

Nice to see, another ex-WS forumer is back...big welcome to WolfT san

Last year October I invested in a FH ppty in D14, i remembered there was a seller stamp duty levy....
1st yr SSD 4%, 2nd yr SSD 3%, 3rd yr SSD 2% and 4th yr ??? (SSD = seller stamp duty)

Aiyo, this guy 2007 than invest in property nothing to shout about..... in 1985 I already follow my ex-boss go aro dist 9 & 10 to hunt for properties....I remembered 2007 was the peak before sub-prime and i sold 1 studio in Dist 1, thereafter bot a FH in D14 in 2009.....Did he mentioned the future outlook???......by 2013 more than 40,000 new units will be completed and added to those BTO, DBSS, EC....wow lost count liao......property is abt Supply & Demand.

Not quite true, nowadays for LH very difficult to get 4.5% yield, unless more than 20 yrs old,even those at geylang also cannot get this yield.....he dun have to pay maint fee, pro-tax, agent comm...less all these expenses if able to achieve 3.5% he happy liao....hehe, I got 1 LH balance 10 yrs, my yield is 35%, see how you play with the figure, cos i didn't cost in the depreciation...the return look very attractive....so dun just the book by the cover.

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(03-04-2011, 09:30 AM)mrEngineer Wrote: [ -> ]maybe it was before 13 Jan 2011?

Engineer san, before 13 Jan was the 3rd cooling measure...SSD 4% for 1st yr... so where can make money after agent comm 1%, lawyer fee at least 3k.

Great to be back! Still have a lot to learn.Huat arrr!!!

Just wondering how good his forex skills are. This article seems to be promoting his forex courses and also probably indirectly, his new book.

Apr 10, 2011
me & my money
Ex-DJ's money-spinner: Forex trade
Pub owner learnt the trade from a customer and now runs a forex trading school
By Lorna Tan, Senior Correspondent

Mr Jimmy Wong, 36, started out in his career as a deejay, spinning discs at bars - first at Europa Entertainment and then at Wong San Entertainment.

In 2002, he set up a pub, Illusion Bar, with another partner. The initial investment was $1 million; Mr Wong forked out $100,000. But the timing was bad: The severe acute respiratory syndrome (Sars) epidemic hit the following year and affected the business badly. The bar was shuttered and Mr Wong found himself heavily in debt.

Undaunted, the young man set up pub RAV Entertainment in Circular Road with three other partners just before the Sars epidemic blew over in 2003. It was profitable and he managed to pay off his debts. He recently sold off most of his shares in the pub and now maintains a small share.

It was at RAV that Mr Wong met his 'mentor' - a regular RAV customer and wealthy foreign exchange trader, who taught him forex trading in 2008. It took him about a year before his trades became more consistent. That was when he bought over forex school JF Lennon & Associates, formerly run by two forex coaches, with a six-figure sum, and started running it himself. It received its ISO 9001/008 certification last year.

Now, the bulk of his income comes from forex trading, his overseas investments and JF Lennon & Associates.

Mr Wong obtained his O levels at Shuqun Secondary in 1991. A year later, he obtained a diploma in sound engineering at The School of Audio Engineering.

He is married to Ms Kathleen Soh, 34, who is the general manager at JF Lennon. They have a daughter, Renee, nine, and a son, Reykell Reyes, two. Mr Wong launched his first book, Stupid Trader, last month.

Q: Are you a spender or saver?

I am a saver. I will spend on what is necessary to provide a comfortable and happy life for my family. In addition to daily expenditure, I always set aside more than ample money for my parents and my children's future. I believe in saving at least half of my pay. I would even spend less on food in order to achieve my savings target.

Q: How much do you charge to your credit cards every month?

I have four credit cards and I pay my credit card bills in full every month without fail. My total monthly credit card expenditure usually does not exceed $5,000. I withdraw about $500 a week for daily expenses.

Q: What financial planning have you done for yourself?

I have four life insurance policies that provide a total life cover of $4.5 million, as well as other insurance plans that cover accidents and hospitalisation. This is to ensure that if I suffer any mishap, my family will be well taken care of without any financial burden.

In addition, I have set aside 35 per cent of my net wealth in cash for emergency use. This amount can last my family and me for at least 15 years in the event that I am unable to work.

My investment portfolio consists of my forex training business JF Lennon, foreign investments and properties that are generating a healthy passive income. Three of my four properties have been fully paid up.

Last but not least, I am in forex trading, which consistently adds to my wealth.

Q: Moneywise, what were your growing-up years like?

I come from an average family of four. I have an older sister. My dad was a bank manager. He believes in working hard and saving 60 per cent of his income to invest in properties and fixed deposits to generate extra passive income. He leads a simple and frugal life. When we were kids, he frequently said 'no' to our pleas for childhood luxuries.

I started to work part-time when I was 14 to earn my allowances, as my dad believed that it was time to start paying for my own expenses. My mum was a designer-cum-tailor. We lived in a one-room flat in Bukit Merah. We moved to an HDB maisonette in Teban Gardens when I was 13. My parents are retired.

Q: How did you get interested in investing?

In 2008, when I was running my F&B (food and beverage) business, I met a patron who was a highly skilled and successful forex trader. He taught me that forex was the most powerful financial instrument available to everyone, from the central banks down to the man in the street.

At first, like most sceptics, I had reservations about his claims. It was only until he showed me his live trading platform that I was blown away by his trading results and the returns on his capital. It was like nothing that I had ever seen or heard of before. From then on, he became my mentor.

Q: What property do you own?

A three-bedroom 1,270 sq ft condominium in West Coast Park that I bought for $1.1 million in 2009. It is currently worth more than $1.5 million.

Between late 2007 and early 2008, I bought three properties in Australia under my parents' names. The two properties in Melbourne comprise one double-storey townhouse and one three-bedroom apartment, each costing about A$800,000 (S$1 million). The two-bedroom apartment in Perth cost A$500,000. Since then, property prices have dipped. The current net rental yields are about 5 per cent annually. These three Australian properties are fully paid up.

Q: What's the most extravagant thing you have bought?

I bought my Harley-Davidson Road King for $43,000 in 2009 and imported accessories from the United States. After additional modifications, the bill came up to $68,000. It has always been my dream to own a Harley-Davidson bike since I was young.

Q: What's your retirement plan?

I have been financially independent since I was 33. Being an entrepreneur with a strong zest for teaching, I do not believe in retiring young and I hope to venture into businesses and investments when opportunities arise while continuing my teaching endeavour. My income is generally derived from forex trading, business investments and other sources of passive income.

I plan to travel around the world with my wife when our children are older and independent. On average, I spend about $20,000 monthly, including allowances for my wife and my parents.

Q: Home is now...

My condo in West Coast Park.

Q: I drive...

A red BMW X6 and a red Harley-Davidson Road King.

lorna@sph.com.sg
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WORST AND BEST BETS

Q: What has been your worst investment to date?

In 2008, two partners and I invested $1.2 million in a food and beverage business with the intention of opening Singapore's largest outdoor bistro. Unfortunately, the business never saw light.

We put in months of effort, from finding the perfect location at Mount Sophia and renovating the premises, to importing exquisite Balinese furniture. We also trained a management team and a service crew which were meant to cater to what would have been the ultimate chill-out venue in Singapore.

In the end, all our efforts were in vain when we could not obtain a licence to operate. We later found out that the plot of land was under state conservation and not authorised for F&B operations.

Q: And your best?

Forex is often assumed to have been my best investment, but actually, it was my previous F&B business, RAV Entertainment at Circular Road. It was set up in 2003 with three other partners with an initial investment of $60,000. At its peak, the average annual turnover of RAV was around $1.6 million to $1.8 million. RAV was renamed Delizioso last year.

Running it for eight years taught me a lot about the art of running a business. It was also a period of character building that shaped me to be the man I am today.

Very importantly, RAV was where I met my mentor who taught me how to earn my wealth from the forex market. It took me a year to master forex trading skills.