Monday, September 10, 2007

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!

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!

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.

Monday, August 27, 2007

Sharemarket rallies back up again

Dear Investors,

It has been one week ago when the sharemarket had crashed 11 percentage points. Quite a scary drop in a matter of a week. However, since then, the market has rallied back up to the 6200-level, just 200 points below which it has dropped from. It will just be a short matter of time, in my opinion, before we break that level again and reach new heights. We have just experienced what I would label as a correction. Corrections occur all the time especially in a bull market, just that the one we had experienced was a more severe one compared to the rests.

Why be scared of investing because of a fall? We should always remember that long-term the sharemarket will trend up. Ladies and gentlemen, it is not worth it to keep away from investing because of a single negative aspect of the market. Lets not focus on the one bad, but on the 99 good. We all can profit from the growing economy, so why not invest for your future? I am not saying that you will have to devote significant energies if you want to invest in the market, neither do you need a Commerce degree to invest. There are funds out there known as ETFs that acts like an index. The shares they own are similar to an index's shares. So basically, you can invest in the index. Remember that the long-term view is always upwards. So as long as you put in your money's worth and don't touch it for a long time, around 10 years, I am sure after that period has passed that you would not be disappointed with the growth and dividends you have received throughout that period.

About where we are right now, I believe we are still on our way up on a bull market which is caused by the commodities boom. I do not know when it will end, but it will certainly be a few years before it does. After that when demand for commodities finally lessens, I am sure that prices for commodities won't be that high anymore, and so will revenue for many mining companies. That would bring spending and income lower, hence a recession will follow. That is just the outlook maybe 3-7 years from now. Who knows when it will happen? What you can do now, though, is to not miss out in the profits to be made. It is an opportunity, not a threat. Have a think about it.

Wednesday, August 22, 2007

Dull times for the sharemarket

I haven't been updating for very long already. Part of the reason was because I have been sick two weeks ago, and now recovering to become well again. Praise God for that. These few weeks though, I've been pretty busy catching up with university homework that I have barely anytime to catch up with the sharemarket. But so happens that this time around, a whole bucket of stuff has happened in the sharemarket. And I've recently purchased my latest share, and am very confident in the future prospects for that company.

If you live in Australia, it is hard not to have followed the Australian sharemarket these past few weeks. Every time you would turn on your tv, you would hear news on the sharemarket with words accompanying such as bloodshed, turmoil, plunge, freefall and many other bloody words. What happened was the sharemarket dropped 11.4% in the last week, signifying one of the largest drops in a week since 1987. The reason for the drop, however, was a little outward. Our market actually 'followed' the US market into correction, as the US market fell because of the latest credit crisis occurring. Nothing really happened to our economy, in fact, because of the budget surplus for this year our economy is actually quite well protected from the credit crisis happening overseas.

So, nothing has changed, except for the fact that the sharemarket fell 11%. For those smart people who decided to fork out some money to buy some shares after the drop would do well over the short-term and the long-term. Share prices are dropping like water but the fundamentals have not changed at all. If only I have cash right now, I would have been scooping up so many great shares at great prices. To name a few they would be BHP, RAMS Home Loans, Rio Tinto and JB Hi Fi.

The market has since recovered by around 5%. Up to date, the market has still been up 4.3% in the year 2007. The outlook seems good for the future, and I don't see the current mining boom going to end anytime soon. This is a perfect time for investing for the long-term. I am glad that I am currently investing. For all those who would want to be investors, now is a good time. Speaking about more recent events, the ASX Sharemarket game has just been up for registration. I was pretty excited finding out about it, and I have called along some of my friends including my family to join in the game. We are given a fictitious $50,000 to invest in shares over a 2 month period and the winner would be the investor with the highest value portfolio at the end of the 2 months. How exciting! I cannot wait for it to start on September 6th.

Tomorrow I shall be discussing my accounting assignment with a few of my close friends. We are to dwelve into Foster's annual report to find some answers to some questions. I really look forward to these kind of assignments I am given. Praise God for the intelligent lecturers who give us homework regarding the sharemarket. For all my readers out there, I apologise for not updating more often, and shall update more often in the future to educate and entertain everyone about the sharemarket and investing.

Monday, August 6, 2007

The dilemma of choice

I am now facing a decision in my investing hobby. It is something like a crossroad, if you ever want to think of it that way. I have to choose between two things, whether I will speculate or invest for the long-term. I know that one way will surely work, but it will require more time. It is quite hard to decide, especially when my portfolio is undergoing a fall because of the recent correction in the market. I look forward to the future, but certainly the present is a hard time that I am going through.

I know that in speculating there are gains and losses to be made. It is only when I am sure that I will gain that I will invest. I have done that fictionally but I don't know what it will be like in reality. Is it any different? I wish someone could give me a word of advice. If I speculate, I will be able to gain back my losses really fast, but I take the risk of losing even more and paying higher tax. Although I really am not sure about this, there is this voice at the back of my head that keeps on telling me that the way to invest is to go for the long-term.

The recent financial advisory seminar I went to by John Hopkins is really still drumming in my ears. The secret to wealth is to compound it over the long-term. What I am really doing today is giving up some leisure and wealth, for the hope of a larger gain in the future. Therefore, I should invest for the long-term where gains will almost definitely come, and I have nothing to worry about.

I will do good to remember that speculators do lose alot of money too. It is said that 80% of speculators end up losing money, so for me to actually speculate would be going against the odds and against all mathematical chances. Am I really that confident that I could beat 80% of people at faring by speculating? I still remember John Hopkins saying that many people don't end up being rich because they speculate in the market. But for the people who patiently wait out their gain end up being really rich, and fairly richer than many others.

As I am writing this, I think you can feel that I am convincing myself that investment is the way to go. It is true, the more I write, the more I feel that I shouldn't speculate. If that means that I might have to wait a longer time before I actually make gains, then so be it. I am willing to wait longer so that I gain wealth in the long-term. I also feel like repurchasing again some of the shares I have already bought. Sounds good that I can reduce the price I paid for my shares by buying it as they are falling. Of course there is a fundamental assumption to that. That is, I strongly believe that the shares will recover over in the long-term. It was I after all who chose them in the first place.

Speaking about shares, this is the first time in my life that I am actually going through a bear market. I wonder how bull markets are like then. But I knew from the moment I started that I started at the end of a bull market, and that things was going to be rough, not smooth. So at least it was expected in a way, and that I hadn't at all did not expect this kind of thing to happen. I accept that things are this way temporarily, but would not be like this forever. I think it has already been 3 months since I've invested. What an exciting 3 months they were, and for the next 3 months to come, I shall face whatever awaits me with a brave heart. I have God to thank for my good health and support as well.

Saturday, August 4, 2007

A day to remember

Today was a fantastically hectic day, so busy yet full of fun and I have thoroughly enjoyed it. The reason for blogging is to remember this day, that is Friday the 3rd of August 2007.

I started the day waking up earlier so that I could use the bathroom as my sis and her friend, Vicky, was also in the queue to use the bathroom. I woke up earlier, only to find that my sis was already in the bathroom. Nevertheless, after waiting for her, I showered and got ready for uni. And then left for uni, expecting a full day ahead of me.

Arriving at the Ec & Comm building early, I had expected Audrey to be there already as she is always a tad bit earlier than me. However, she wasn't there. I gave her a call and then waited a few moments before she arrived at the building and met up with me. She was a fun person to chat with while waiting a little longer, and we were soon joined by Sue Ann. We had our ATA tute together, and it was a whole lotsa fun! I kind of blew my tutor away, with remarkable comments on how return on invested capital can be used to measure the usefulness of debt, and that apparently amused Stella alot, together with the whole class.

Next, after finishing ATA, we had to go all the way to the Asia center for our next tute which is Finance 1. Arriving late as I expected, we joined a whole class full of people. There were so many people in this tute. I wouldn't rate it as full or overfull, but over-overfull. There were about 25 of us there. Way too much for a single tute. It was kind of boring but we still had fun, experiencing our second tute together in the same day.

Finally, when tute finished, I had to move on to my next activity of the day. and after leaving and saying goodbye to my friends, I went to the Electrical & Electronic Engineering building for the seminar on Business planning. Some guy called Richard Day, from a company called Melbourne Ventures Pty Ltd, gave us a speech on how to do business planning. It was something totally new I had learned, and wow was it amazing I felt. The seminar was almost 2 hours long.

After that, I had to rush to yet my next activity which was the Entrepreneurial Investment Club Meeting. Today was a special meeting, as we had John Hopkins and Company come over to give us a speech on financial advising and just some general advice about the real meaning of investment and how we should implement it. He and his mates were big burly figures, definitely giving the sense of commanding authority, and businesslike aura emanated from him. It was really interesting, and I had enjoyed it thoroughly, though I had to leave early to meet my friend Rachel.

Arriving early at QV, I then proceeded to the bus stop just to see if anyone was there, and met Khim, my very good friend. We chatted for a while happily, and then was suddenly joined by three people, Derek, some friend I had forgotten his name, and Jordan, who is my very good friend too. Jordan and me then left the rest of them to enter QV to buy a stamp for me, for which I had to use to post a mail for a competition. Jordan then left for bus 305 and he headed home, leaving me alone in QV. I then proceeded to go and find Taylors College, the place where I was supposed to meet Rach.

Travelling along Lonsdale Street, I finally gave up searching independently for Taylors College, as I couldn't find it with my eyes and then proceeded to go into a student accomodation centre to ask for directions. Asking the man if he knew where Taylors College was, he told me "Why yes, it's just opposite". Looking behind him, I realised how blur I was when I saw the sign "Taylors College" glaring above his head. Feeling shamed, I then headed towards Taylors College. A short while later, I met Rach and we then went to QV to buy her some credit and she got some money out from her ATM.

We were going for some travelling. I brought her first to Docklands from La Trobe street, and we walked docklands until it was night time, and I showed her the whole place, and how beautiful it was at night or even during the day. The scenery was indeed very nice. The wind was breezy and the temperature was fairly cold during that time. Overall, we had a nice experience walking by the docks in a sunset condition, but it was getting dark and the sun had already kind of set.

Next, I brought Rach to Federation Square, where we went around touring again. It is her first time seeing Federation Square, and I felt this place deserved more time to hang around at. It is truly a Melbourne landmark area, and cannot be missed by anyone travelling to Melbourne. We went to the building with the Pixar production, but unfortunately we were told that the Pixar production was only for day times. So, we were disappointed but nevertheless moved on. We also took a picture beside a pixar toycar using my phone's camera. Next as we were walking along the Yarra Valley river, we saw the big ferris wheel and suddenly a feeling came over us, and we felt like sitting the ride. Hence, we got onto the ride named "The big sky wheel" where we enjoyed almost 30 minutes worth of going up and down. Rach, was abit scared of heights but I could see she was having fun.

We were getting abit late as we had to meet friends at Lygon street for dinner. We then went back to Swanston Street and trammed all the way up to Arrows Apartment. Then, I met some of her friends Soo Kim and Soo Mei, together with their brother Eugene. They were lovely people, and I enjoyed getting to know them. Apparently, they were from my same church back in KL, but I did not know them. I guess they were much older than me, and had moved to Aus back when I was just a young kid. We then proceeded as a group towards Lygon street, and was joined by Nicholas Yap, another good friend of Rach's. So, it was the group of us, mostly all connected by Rach, heading for dinner at Lygon's. It was a good dinner, we chatted alot and was later joined by Steven, another good friend of Rachel's. We chit chatted all the way until 10pm where I announced I had to leave because I supposedly wanted to meet my 101 friends for supper at box hill. I said my goodbyes to Rach, as I won't be seeing her for some time to come.

As I was walking towards the train station, Sue Ann called me saying that they were going to pancake parlour for supper. I thought they were going to box hill, and I didn't like the decision because there was no public transport to pancake parlour. So i had just left my group of friends, and now I am not sure if I can go to meet my other friends. In the end, I tried to arrange transport from Box Hill but failed, and I ended up missing the last 304 and 305 bus, so I had to take the train from city to Box Hill. Even in the train at that late at night, there were officers checking the metcards of the passengers for validation. Metlink is so sly. At Box Hill, I waited for 286 and then met Jodey, another old friend from East Doncaster Secondary College. We chatted some of the way home, and finally I reached home at around 11 something, a long day out since morning.

God bless those who had long days too!