Recently, I have had a Finance Assignment, which in fact I enjoyed doing the most, which I had to write about IPOs - timing and motivation. That was the topic. And wow did I have a great time writing it. Most of my sources came from:
www.investsmart.com.au
www.asx.com.au
www.google.com
Those three websites gave me plenty of statistics and data. Well, enough for a 1000 word essay. I thoroughly enjoyed writing and in the process, I did find out some very interesting facts.
-The All Ordinaries history only goes back to 1900
- There are 2120 companies in Australia, 610 of which only came within the last 4 years.
- The last 4 years were crazy IPO years with average premiums paid on top of issue price of new shares 1 month after issue amounting to 19% on average.
- IPOs are a crazy process. Incredibly complicated(i like) and full of diff motivations
- There are as many motivations as there are listings
Writing a finance essay is like showing off your finance skill and feeling proud of your essay. To all those who reads my blog and does Finance 1, just PM me if you want to know some tips on doing the finance essay. I can't believe some stuff I read on the Online Tutor, they're like asking for all sorts of weird stuff. One guy said he did research on the whole net and found nothing ...
One day I will have my own IPO. But until then, we all will just sit back and learn these stuff first. Not actually participate in it. As a farewell word for my readers, I wish those who are doing their essay now a very good luck!!
Sunday, September 30, 2007
The art of patience
Recently I have been bogged down by many events happening in my daily life as I have told in my last post. However, a new event has submerged. The test of patience. Things in my life now seem to be going really slowly. It is like in slow-motion. I am partially worried that my partnership will not be able to be set up in time, because it is taking too long! This idea of setting up the partnership is truly a headache giving one. Now I understand why so many business people feel inflexible. They are so mainly because legal rules need to be in place, they are afraid to lose and other people are too cautious and has influenced them.
This is what is happening to me right now. I will be going back to Malaysia in 2 months time. And I hope that the partnership can be making money on its own by means of investing by then. However, there is so much things left to do. I shall list them down in order below.
1) Got to meet up with partners to get their details
2) Got to submit their details to the ABR and call them to ask them about how to add/delete partners and whether I need to do accounting for the old partnership
3) I need to collect the monies from partners as their starting up and joining monies
4) Got to wait for one partner to submit the editted version of the amendment
5) Got to meet up with partners again to explain to them the terms as well as sign the agreements
6) got to set up a CDIA account with the bank to start investing
7) got to learn how to use CommSec about how to trade
8) Finally, come up with a buy list about which shares to buy
9) Actually buy shares
If, and only if, investing with shares didnt have to be this complex. I'd rejoice. But I guess going through all this difficulty is a barrier down to starting up my company in the future. I thank God for all the help he is giving me. For those reading this out there, hope you can empathise with this and learn a lesson if you were ever to open your own company. I need to have tremendous patience.
This is what is happening to me right now. I will be going back to Malaysia in 2 months time. And I hope that the partnership can be making money on its own by means of investing by then. However, there is so much things left to do. I shall list them down in order below.
1) Got to meet up with partners to get their details
2) Got to submit their details to the ABR and call them to ask them about how to add/delete partners and whether I need to do accounting for the old partnership
3) I need to collect the monies from partners as their starting up and joining monies
4) Got to wait for one partner to submit the editted version of the amendment
5) Got to meet up with partners again to explain to them the terms as well as sign the agreements
6) got to set up a CDIA account with the bank to start investing
7) got to learn how to use CommSec about how to trade
8) Finally, come up with a buy list about which shares to buy
9) Actually buy shares
If, and only if, investing with shares didnt have to be this complex. I'd rejoice. But I guess going through all this difficulty is a barrier down to starting up my company in the future. I thank God for all the help he is giving me. For those reading this out there, hope you can empathise with this and learn a lesson if you were ever to open your own company. I need to have tremendous patience.
Wednesday, September 26, 2007
The partnership, uni and the buziness of life
Recently, I have been bogged down by many things. Firstly, there is uni and all the assignments. Can't the uni ever give enough of it? The answer is no. I wish I could be participating full time in a business, I can skip the uni part. But I know that uni is good for me, it molds my thinking, it prepares me for my future. Uni really cares about me, that is the message I get.
But what do they really care about? For the first time after I have joined university have I found out that uni is a business. What an exciting, profound thing. And guess what about uni, it is private! Now that makes it even more exciting. Somebody out there, while providing countless education opportunities to so many people, is actually making a profit out of this. And they rarely promote this fact to the media. It is very subtle.
What is the motive of a business? The aim is to maximise profit. I am not getting at university here, just trying to clarify a few things. I appreciate the fact that uni is giving much education to me. But sometimes I feel they are charging a little too much. When somebody cannot afford an education, the marginal person have lost their education to the fact that somebody is trying to profit maximise. That is just not right. Maybe I feel that education shouldn't be in the hands of the private. Maybe it should be public. Since education is a public good. The government could play a more active role in education.
But with government schools already under their arm, is uni a defining heavy load on them? Perhaps so, perhaps not. But we live in an imperfect world, so choosing one relates to an opportunity cost of another. I understand that not everyone is sympathetic. But with all the charitable efforts going around, one would stop and think, hey why are there so many uneducated people, but yet someone is making huge profits running a university? We shouldn't look elsewhere when finding solutions to education, and start looking at removing tertiary education from the hands of private people first.
Enough about tertiary education, and moving on to my partnership. Things have been going slowly so far. My plan is to move my shares together with my original partners to the new partnership, which will comprise of more members and a bigger fund. I am so excited about the prospect. But there are still lots more to do. There are the signing up of the new members, registering of the business, setting up of the banking accounts, choosing which shares to buy and finally, buying shares. This is the slow part. I expect it to be faster after that.
Anyone who runs a business or did it before knows how I feel and understands what on earth am I blablering about. And there is also the business cards. My friend Jordan is going to design a logo for the partnership. I have told him I want a nice, simple logo. And I believe he has the skills to do that. I just cannot wait, and words cannot express how much I anticipate the day when everything is running.
I remain positive but the main reason and objective is going to take a lifetime to accomplish. That is, to be a successful investor. Investing requires alot of doing nothing. If one can do that, then one is a great investor. I leave this post for now. Currently I am blogging when I am suppose to be studying. I'm in university right now, in the 2nd Floor of the Bailieu Lib. So if you read this post as I have just posted it, then be sure to find me at the computers. Good luck to all investors with the ASX posting record high levels!
But what do they really care about? For the first time after I have joined university have I found out that uni is a business. What an exciting, profound thing. And guess what about uni, it is private! Now that makes it even more exciting. Somebody out there, while providing countless education opportunities to so many people, is actually making a profit out of this. And they rarely promote this fact to the media. It is very subtle.
What is the motive of a business? The aim is to maximise profit. I am not getting at university here, just trying to clarify a few things. I appreciate the fact that uni is giving much education to me. But sometimes I feel they are charging a little too much. When somebody cannot afford an education, the marginal person have lost their education to the fact that somebody is trying to profit maximise. That is just not right. Maybe I feel that education shouldn't be in the hands of the private. Maybe it should be public. Since education is a public good. The government could play a more active role in education.
But with government schools already under their arm, is uni a defining heavy load on them? Perhaps so, perhaps not. But we live in an imperfect world, so choosing one relates to an opportunity cost of another. I understand that not everyone is sympathetic. But with all the charitable efforts going around, one would stop and think, hey why are there so many uneducated people, but yet someone is making huge profits running a university? We shouldn't look elsewhere when finding solutions to education, and start looking at removing tertiary education from the hands of private people first.
Enough about tertiary education, and moving on to my partnership. Things have been going slowly so far. My plan is to move my shares together with my original partners to the new partnership, which will comprise of more members and a bigger fund. I am so excited about the prospect. But there are still lots more to do. There are the signing up of the new members, registering of the business, setting up of the banking accounts, choosing which shares to buy and finally, buying shares. This is the slow part. I expect it to be faster after that.
Anyone who runs a business or did it before knows how I feel and understands what on earth am I blablering about. And there is also the business cards. My friend Jordan is going to design a logo for the partnership. I have told him I want a nice, simple logo. And I believe he has the skills to do that. I just cannot wait, and words cannot express how much I anticipate the day when everything is running.
I remain positive but the main reason and objective is going to take a lifetime to accomplish. That is, to be a successful investor. Investing requires alot of doing nothing. If one can do that, then one is a great investor. I leave this post for now. Currently I am blogging when I am suppose to be studying. I'm in university right now, in the 2nd Floor of the Bailieu Lib. So if you read this post as I have just posted it, then be sure to find me at the computers. Good luck to all investors with the ASX posting record high levels!
Sunday, September 16, 2007
Hot property
Tonight on television I watched a series called Hot Property. The show featured property investors and how they were faring. It taught me a few lessons on property, mainly that we can make alot of money out of property by renovating and upgrading the house. The show featured a young girl who looked like she was in her late 20s already having a portfolio of 8 million. That was simply amazing. I wish I could do that one day as well. Not with property, but with shares.
I have learnt a thing or two about properties. It is a very rock solid way of making money, almost guaranteed. You don't even need to diversify. That is because house prices don't drop on the norm. They only increase in value over time. Isn't that amazing? An investment that cannot lose? Well, whats the catch? The catch is that value of houses do not appreciate like shares, and that property investors sometimes have to pay stamp duty. And they do not get franked dividends. Neither do they have the excitement associated with shares. Everyone can be a winner by investing in property. Definitely a popular choice amongst many people that they want to be property investors in the future. After all, you can't lose, and that is so attractive on its own.
Another attractive feature which complements the fact that you can't lose in property is that you are able to go to high gearing levels. You can even gear up to 80% of the house. Yes, you do end up paying interest expenses but then, your Return on Equity will be at amazing high levels per year. Risky going to gear at such a high level? Not at all because, remember, house prices don't fall, so if they go up there can only be one winner: you. So the ability to be able to gear to high levels and you can't lose and a tremendous return on equity and the bank is not worried about the loan because it is secured by the property: lets all become property investors?
Recently, I found a real life example of how easy it is to make money if only we have ... money. Two residential areas with old houses on it near my neighbourhood is on sale right now. Yes, two slots with old houses on it. The plan is to buy the land with the two old houses, demolish the old houses, and build 8 new townhouses on top of it. The seller is looking for $1.5m for the land and the building permit. The 8 new townhouses can be sold for the least $500k each. After adding the cost of building the new houses, the total cost would be around $3.1m. And assuming we sell all the houses for $4m, it is a neat $900k profit over the span of 2.5 years? That is why the rich is getting richer. It is still for sale now, but I don't have the money YET, if you do, you can go and take this tremendous opportunity right in front of your eyes right now. I'm assuming you know where I live.
But lets look at it closer, assuming you don't gear, and put $4m of your money over a span of 2 years into the house, and make a profit of around a $1m. That is really only about a return of 12.5% per year on your money. Not much at all. That is even below my required rate of return that is on average 16.16% p.a. By investing in shares, we are able to get even much higher returns on equity. The 12.5% is pre-tax and not including any franked dividends you would get from shares. The understanding here is that when buying the property we go ungeared, but that is seldom the case in real life.
I would still prefer shares over property. I understand that you can make millions out of property, yes. But you cannot make billions with property. That can only be achieved by means of business. And business is what I like. As you can already tell from the many posts. However, investing does include property and it is an asset class not to be underestimated. And I look forward to buying my first property in the future!
To all my readers out there who wants to be a successful investor too, I urge you to consider shares as well as property in your investing career.
I have learnt a thing or two about properties. It is a very rock solid way of making money, almost guaranteed. You don't even need to diversify. That is because house prices don't drop on the norm. They only increase in value over time. Isn't that amazing? An investment that cannot lose? Well, whats the catch? The catch is that value of houses do not appreciate like shares, and that property investors sometimes have to pay stamp duty. And they do not get franked dividends. Neither do they have the excitement associated with shares. Everyone can be a winner by investing in property. Definitely a popular choice amongst many people that they want to be property investors in the future. After all, you can't lose, and that is so attractive on its own.
Another attractive feature which complements the fact that you can't lose in property is that you are able to go to high gearing levels. You can even gear up to 80% of the house. Yes, you do end up paying interest expenses but then, your Return on Equity will be at amazing high levels per year. Risky going to gear at such a high level? Not at all because, remember, house prices don't fall, so if they go up there can only be one winner: you. So the ability to be able to gear to high levels and you can't lose and a tremendous return on equity and the bank is not worried about the loan because it is secured by the property: lets all become property investors?
Recently, I found a real life example of how easy it is to make money if only we have ... money. Two residential areas with old houses on it near my neighbourhood is on sale right now. Yes, two slots with old houses on it. The plan is to buy the land with the two old houses, demolish the old houses, and build 8 new townhouses on top of it. The seller is looking for $1.5m for the land and the building permit. The 8 new townhouses can be sold for the least $500k each. After adding the cost of building the new houses, the total cost would be around $3.1m. And assuming we sell all the houses for $4m, it is a neat $900k profit over the span of 2.5 years? That is why the rich is getting richer. It is still for sale now, but I don't have the money YET, if you do, you can go and take this tremendous opportunity right in front of your eyes right now. I'm assuming you know where I live.
But lets look at it closer, assuming you don't gear, and put $4m of your money over a span of 2 years into the house, and make a profit of around a $1m. That is really only about a return of 12.5% per year on your money. Not much at all. That is even below my required rate of return that is on average 16.16% p.a. By investing in shares, we are able to get even much higher returns on equity. The 12.5% is pre-tax and not including any franked dividends you would get from shares. The understanding here is that when buying the property we go ungeared, but that is seldom the case in real life.
I would still prefer shares over property. I understand that you can make millions out of property, yes. But you cannot make billions with property. That can only be achieved by means of business. And business is what I like. As you can already tell from the many posts. However, investing does include property and it is an asset class not to be underestimated. And I look forward to buying my first property in the future!
To all my readers out there who wants to be a successful investor too, I urge you to consider shares as well as property in your investing career.
Saturday, September 15, 2007
The event has passed!
Tonight was a wonderful night. We had our heroes charity event, and wow what an event it was. So many of our friends came, including Jordan and Audrey. My fun at the event is mainly divided into two parts: before the event and during the event.
Before the event, Jordan and me were getting stuff ready, and selling lots and lots of drinks! We sold chocolates too, and we were successful. Hooray for that. Praise God for the good sales. Jordan is naturally friendly, he can attract alot of customers who would buy things from us. I, to a lesser extent, am naturally friendly. But my main strength lies in the planning part, I can plan better than I can sell. Together, we are sales dynamite. Happily selling and increasing our profits we were for about an hour, we had alot of fun in the process and doing what I liked: business.
During the event, I sat next to Audrey and Jordan. The main event was spectacular, with many videos, presentations and finally the main speaker of the night, Pastor Scott Hawkins gave his life-changing speech. I was so glad to see many of friends got saved, and that just made all the difference and the whole event worthwhile. Reaching out to the community is a very noble thing to do. Money is not enough, because hard work is needed too. That was what we had during that night. God was truly working with us. Good to see that Mel brought along many friends as well, almost her whole group from university and Adrian came along too.
I will remember this night as a special event night. Just as a recap from the past, I could be so sure that I dreamt of this night before. Well, part of it. No wonder at one point it all seemed so familar to me, like I have seen it somewhere before. I was so sure it appeared to me in my dream about 2 months ago. It took that long to realise. And this wasn't the first time that my dreams had come true, it happened many times before. Maybe this is a way of God telling me that he is speaking to me through my dreams? What is the point of seeing a screen of the future when that screen isn't particularly of any importance? When the time comes, I will have to make the decision to go to this event or not. Perhaps there is a deeper reason I have not yet conceived yet.
If you know, please do let me know. Looking forward to the future!
Before the event, Jordan and me were getting stuff ready, and selling lots and lots of drinks! We sold chocolates too, and we were successful. Hooray for that. Praise God for the good sales. Jordan is naturally friendly, he can attract alot of customers who would buy things from us. I, to a lesser extent, am naturally friendly. But my main strength lies in the planning part, I can plan better than I can sell. Together, we are sales dynamite. Happily selling and increasing our profits we were for about an hour, we had alot of fun in the process and doing what I liked: business.
During the event, I sat next to Audrey and Jordan. The main event was spectacular, with many videos, presentations and finally the main speaker of the night, Pastor Scott Hawkins gave his life-changing speech. I was so glad to see many of friends got saved, and that just made all the difference and the whole event worthwhile. Reaching out to the community is a very noble thing to do. Money is not enough, because hard work is needed too. That was what we had during that night. God was truly working with us. Good to see that Mel brought along many friends as well, almost her whole group from university and Adrian came along too.
I will remember this night as a special event night. Just as a recap from the past, I could be so sure that I dreamt of this night before. Well, part of it. No wonder at one point it all seemed so familar to me, like I have seen it somewhere before. I was so sure it appeared to me in my dream about 2 months ago. It took that long to realise. And this wasn't the first time that my dreams had come true, it happened many times before. Maybe this is a way of God telling me that he is speaking to me through my dreams? What is the point of seeing a screen of the future when that screen isn't particularly of any importance? When the time comes, I will have to make the decision to go to this event or not. Perhaps there is a deeper reason I have not yet conceived yet.
If you know, please do let me know. Looking forward to the future!
Presentations
Lately, I have been having alot of meetings for EIC. Those meetings are sector meetings for presentations made during the main EIC meeting. I think I actually spend more time making those meetings than I did for my recent business plan competition. You might be already wondering why am I putting so much effort into these meetings? The main reason is because I love investing, and those meetings are all above improving our investing skills together as a group and I just enjoy talking about my favourite topic.
The meetings are in a group. And I just love being able to learn how to work together effectively in a group. Those meetings are really enjoyable + i learn alot + my favourite topic. Can I ask for anything better? That made me wonder how come I wasn't interested in investing since I was young. Maybe it was because investing generally needs money, and it is no use talking about it all the time when I'm actually not investing. So far in my investing time, the lesson I know which is the hardest is not mastering the concepts and theories, but the emotional part - mainly patience. That is the biggest factor to overcome of all if I am to be an investing master.
Hopefully, as time passes, so will my patience grow. I will thank God for that of course. Coming back to the topic of presentations, every time in the main EIC meeting, we will present what we have discussed and done throughout the week. It is public speaking in a way. And if this is going to continue every single week, I would actually be public speaking fearless. Good thing isn't it? After so many weeks of joining EIC, i still think that this is the best club decision I ever made, that is to join it. No regrets, full of hopes.
The meetings are in a group. And I just love being able to learn how to work together effectively in a group. Those meetings are really enjoyable + i learn alot + my favourite topic. Can I ask for anything better? That made me wonder how come I wasn't interested in investing since I was young. Maybe it was because investing generally needs money, and it is no use talking about it all the time when I'm actually not investing. So far in my investing time, the lesson I know which is the hardest is not mastering the concepts and theories, but the emotional part - mainly patience. That is the biggest factor to overcome of all if I am to be an investing master.
Hopefully, as time passes, so will my patience grow. I will thank God for that of course. Coming back to the topic of presentations, every time in the main EIC meeting, we will present what we have discussed and done throughout the week. It is public speaking in a way. And if this is going to continue every single week, I would actually be public speaking fearless. Good thing isn't it? After so many weeks of joining EIC, i still think that this is the best club decision I ever made, that is to join it. No regrets, full of hopes.
Monday, September 10, 2007
No more trading, not going to be a trader ever
I should stress this point on my blog, that we should always INVEST in the stockmarket, and never TRADE. I might have missed the point, but I will stress it again. NEVER trade, never ever ever EVER trade. Unless you don't want your money, of course. Then you can just give it to me. I wouldn't mind investing it on your behalf.
Today, the sharemarket game has commenced its thrid day of trading. I was happily making money for 2 days in a row, when suddenly my net wealth has been pulled down past the beginning mark because of a small market drop today. Due to desperation, I started trading. My focus was short-term. Part of the desperation came from the fact that some stocks I already held were based on speculation. So when the market dropped, I panicked, and started selling. I bought, sold, bought, sold, until I had incurred a high brokerage fee already.
I've learnt my lesson. Luckily this is not with real life, never ever trade. The meaning of trading is going for a share based on a 'hunch' that it will go up or down but with no real fundamentals. Unless I am REALLY, REALLY sure about a share only would I buy into a speculative situation. But I don't think I can stress this enough, to my readers and to myself. Never trade. I heard about one person who put a million dollars in the sharemarket into a speculative situation and within days he was down to $150,000.
Another good example would be of my good friend's dad. He bought into a stock whom he did not even understand, but he bought it because his friend told him to. From a few dollars the share price dropped to a few cents. It never recovered. Trading is for those who are impatient and just want to get rich fast. They rarely achieve their goals. Only those who are truly chosen to be the lucky ones make it through.
I am sure with all the sharemarket education I have received I can do better than obtain negative returns over time. So why do I need to trade? Good question. I don't. For those unexperienced yet, listen to me for your own sake. Never trade.
Point made.
Today, the sharemarket game has commenced its thrid day of trading. I was happily making money for 2 days in a row, when suddenly my net wealth has been pulled down past the beginning mark because of a small market drop today. Due to desperation, I started trading. My focus was short-term. Part of the desperation came from the fact that some stocks I already held were based on speculation. So when the market dropped, I panicked, and started selling. I bought, sold, bought, sold, until I had incurred a high brokerage fee already.
I've learnt my lesson. Luckily this is not with real life, never ever trade. The meaning of trading is going for a share based on a 'hunch' that it will go up or down but with no real fundamentals. Unless I am REALLY, REALLY sure about a share only would I buy into a speculative situation. But I don't think I can stress this enough, to my readers and to myself. Never trade. I heard about one person who put a million dollars in the sharemarket into a speculative situation and within days he was down to $150,000.
Another good example would be of my good friend's dad. He bought into a stock whom he did not even understand, but he bought it because his friend told him to. From a few dollars the share price dropped to a few cents. It never recovered. Trading is for those who are impatient and just want to get rich fast. They rarely achieve their goals. Only those who are truly chosen to be the lucky ones make it through.
I am sure with all the sharemarket education I have received I can do better than obtain negative returns over time. So why do I need to trade? Good question. I don't. For those unexperienced yet, listen to me for your own sake. Never trade.
Point made.
Heroes Charity Night
My church is organising their biggest rally yet. It is truly going to be amazing as we expect to see up to 600 youths rock up that night and contribute to charity. There are lots of preparations going around right now, and we are already divided into teams so that everyone can play a part in this event. We are partnering together with Koorong.com in helping to donate to charity. For each person that turns up at this event, $1 will go to charity. Yep, just by being there we can help change a live.
Today was a really fun day. My Mondays seem to be special week after week, I wonder why. After having 2 hours of productive classes, Mel, Angela and me went around university giving out flyers for the heroes charity night event. Angela and me went all around uni, passing many friends, unknown people, and my microeconomics tutor, and even my BPA Lecturer, Susanna Ho. For one thing, it was a truly enjoyable experience meeting unknown people, saying hi then trying to get them to take a flyer from me. It is my first time doing something like that, and I truly enjoy it. Angela was way better than me, she was the naturally friendly and enthusiastic type who just went around offering people flyers and they would just take them. The people I met were less friendly, so I had some trouble giving out flyers. Nevertheless, after an hour, we finished giving out almost 150 flyers together!
I'd like to shout out on my blog to anyone who is reading to come for the charity night event. It is this Saturday, 15th September, at 7pm at Box Hill Town Hall. Come, join in the fun, and be a Hero!
Today was a really fun day. My Mondays seem to be special week after week, I wonder why. After having 2 hours of productive classes, Mel, Angela and me went around university giving out flyers for the heroes charity night event. Angela and me went all around uni, passing many friends, unknown people, and my microeconomics tutor, and even my BPA Lecturer, Susanna Ho. For one thing, it was a truly enjoyable experience meeting unknown people, saying hi then trying to get them to take a flyer from me. It is my first time doing something like that, and I truly enjoy it. Angela was way better than me, she was the naturally friendly and enthusiastic type who just went around offering people flyers and they would just take them. The people I met were less friendly, so I had some trouble giving out flyers. Nevertheless, after an hour, we finished giving out almost 150 flyers together!
I'd like to shout out on my blog to anyone who is reading to come for the charity night event. It is this Saturday, 15th September, at 7pm at Box Hill Town Hall. Come, join in the fun, and be a Hero!
Saturday, September 8, 2007
Kenjisan Investments created
Hi all, I am proud to finally announce that my partnership has finally been created. It is called Kenjisan Investments. If you are wondering what it means, kenji is actually my chinese name, -san is a japanese word, so people like to call me kenjisan. And Investments speaks for itself. Kenjisan Investments is a partnership officially and legally established on the 5th of September 2007.
The origins of this partnership were as follows. One day my good friend Jeremy Lim came up to me and asked me to start up something so we can invest together. Being very naive but also excited about the prospect, we followed up by investing together in the sharemarket under my name. Soon after, our second good friend, Chan Jun Kai, joined us after I had told him about what we recently did. My recently found good friend, Kelvin Chuah, with whom I have joined various competitions with in university(and won) also decided to join in on this investment journey. With a philosophy and direction in mind, we ran our first investment group together with the aim of being a long-term investor.
Our first three investments started from a humble beginning of $1600, contributed equally by the four of us. We diversified into three shares, and they were recommendations from a financial services company. They were performing badly and over the short-term we were losing out, down to about 15% at one time. But each month since, we have been adding new capital to our group, and our latest investments were based on research done by our own. The latest investments outperformed all other investments and we even managed to break even, offsetting the loss caused by the first 3 shares. To make things even spectacular, since we have invested in the sharemarket, the market index has fallen until the present and is still below the level at which we had started investing.
Soon, our investment pool had grown to a level of $3700. One day, my other friend, Stella Loong, questioned me about our investments. She made me think twice about the way we were doing it, whether it was actually legal to put the investments under my name. Coming to my senses, I felt that it was wrong and that we had to legally establish a partnership. And that was what I just did. A month later, I registered for a Business Name and a Business Number. Our partnership, Kenjisan Investments, with original members Joshua Ng(me), Jeremy Lim, Chan Jun Kai, and Kelvin Chuah was established. My future vision for this partnership is that it will grow, and soon maybe we will be managing an investment pool of more than $10,000.
I look forward to the best. May God be with us throughout the journey which I have committed myself to. Amen!
The origins of this partnership were as follows. One day my good friend Jeremy Lim came up to me and asked me to start up something so we can invest together. Being very naive but also excited about the prospect, we followed up by investing together in the sharemarket under my name. Soon after, our second good friend, Chan Jun Kai, joined us after I had told him about what we recently did. My recently found good friend, Kelvin Chuah, with whom I have joined various competitions with in university(and won) also decided to join in on this investment journey. With a philosophy and direction in mind, we ran our first investment group together with the aim of being a long-term investor.
Our first three investments started from a humble beginning of $1600, contributed equally by the four of us. We diversified into three shares, and they were recommendations from a financial services company. They were performing badly and over the short-term we were losing out, down to about 15% at one time. But each month since, we have been adding new capital to our group, and our latest investments were based on research done by our own. The latest investments outperformed all other investments and we even managed to break even, offsetting the loss caused by the first 3 shares. To make things even spectacular, since we have invested in the sharemarket, the market index has fallen until the present and is still below the level at which we had started investing.
Soon, our investment pool had grown to a level of $3700. One day, my other friend, Stella Loong, questioned me about our investments. She made me think twice about the way we were doing it, whether it was actually legal to put the investments under my name. Coming to my senses, I felt that it was wrong and that we had to legally establish a partnership. And that was what I just did. A month later, I registered for a Business Name and a Business Number. Our partnership, Kenjisan Investments, with original members Joshua Ng(me), Jeremy Lim, Chan Jun Kai, and Kelvin Chuah was established. My future vision for this partnership is that it will grow, and soon maybe we will be managing an investment pool of more than $10,000.
I look forward to the best. May God be with us throughout the journey which I have committed myself to. Amen!
Wednesday, September 5, 2007
The start of a national sharemarket game
Two days more to go only for the year's most awaited game of all, the national ASX sharemarket game. So far, so interesting as people have been joining online all over Australia and because of that ASX has set a limit to the number of people who can join the tournament to 24,000. It will be huge as investors or potential investors or investors wannabe all through Australia test their skills against the market.
I have sign up since a few weeks ago already. More excitingly, my dad has signed up. My step mom has signed up. My close friends, Audrey and Sue Ann have signed up. And plenty more people who I have just blurted out at the information about this game whom I am sure would have signed up. It starts this Thursday and I have not yet decided on a strategy!
Actually, I do have one in mind right now. That is, do nothing for 1 week until I have known what others have bought. That would be a good time to buy shares that have gone down, or gone very much down. A good strategy? I certainly think so. There are alot of ways to look at this sharemarket game. Some play it for fun, some play it to win the $5000 grand prize up for grabs. But this game is over a 2 month period only. So it is rather in the short-term, means much speculation. The 'lucky' or skilled player would then win the tournament. We cannot depend on luck, so we would have to be skilled.
I do not expect to win the tournament, but I will certainly try. I believe I have a chance. Knowledge of economics isn't really necessary. We just need to know how to intepret market information in terms of share prices going up or down. And if we can do that, we can already predict the short-term fluctuations in share prices. Not some random walk as tell-taled to us by the famous(and flawed) Efficient Market Hypothesis we all learn in Finance 1.
I have sign up since a few weeks ago already. More excitingly, my dad has signed up. My step mom has signed up. My close friends, Audrey and Sue Ann have signed up. And plenty more people who I have just blurted out at the information about this game whom I am sure would have signed up. It starts this Thursday and I have not yet decided on a strategy!
Actually, I do have one in mind right now. That is, do nothing for 1 week until I have known what others have bought. That would be a good time to buy shares that have gone down, or gone very much down. A good strategy? I certainly think so. There are alot of ways to look at this sharemarket game. Some play it for fun, some play it to win the $5000 grand prize up for grabs. But this game is over a 2 month period only. So it is rather in the short-term, means much speculation. The 'lucky' or skilled player would then win the tournament. We cannot depend on luck, so we would have to be skilled.
I do not expect to win the tournament, but I will certainly try. I believe I have a chance. Knowledge of economics isn't really necessary. We just need to know how to intepret market information in terms of share prices going up or down. And if we can do that, we can already predict the short-term fluctuations in share prices. Not some random walk as tell-taled to us by the famous(and flawed) Efficient Market Hypothesis we all learn in Finance 1.
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