SG Wealth Builder

To make money. To build wealth. To preserve wealth.

Month: August 2012

Investing in your human capital

Genting Group

Investing can be very lonely sometimes because it is a never-ending journey that requires you to constantly learn and hone your analytical skills. Time is the most important factor for an investor. You will have a head-start if you start learning how to invest since young.

But the fact is, nobody is born to invest. Investment skills and knowledge have to be picked up and learned, either through the hard way or attending courses. Henceforth, it is important that you invest in your human capital throughout your life. Otherwise, you might end up paying expensive tuition fees to the market.

Stock Market

SG Wealth Builder

To this end, SG Wealth Builder is pleased to form a partnership with fellow investment blogger, Dave, from Smart Passive Cash Flow to introduce his new membership site – See How I Trade. Like Dave, I share the notion that to be successful in investing, you must have the commitment to keep learning and earning. As a trader, Dave shares investment related articles that range from stocks, bonds, commodities and derivatives. Members can enjoy the below exclusive privileges:

1) Dave’s Daily Potential Trades

2) Dave Daily Trend Analysis

3) Dave’s Spotting of Big Boy’s Movement

4) …

K1 Ventures Stocks

stock market

I have been tracking K1 Ventures for more than 7 years and had invested in the stock over the years. K1 Ventures is an investment holding company invested in diverse sectors such as finance, transportation leasing, education and oil and gas.

Those who are vested in this counter would know that this is an excellent stock which had paid out huge dividends over the years. Since FY05, it had consistently paid out dividends amounting to a total of $0.2275 per share.

stock market

If you had bought the share 7 years ago at $0.33 and hold on to them till now, you would have an incredible yield of 68.9%. Now, how many stocks in SGX are capable of giving this sort of dividends nowadays?

Voluntary Offer

Henceforth, I was pretty upset that GKB recently made a voluntary offer for K1 Ventures at $0.135 per share. For the uninitiated, GKB is an investment vehicle owned by Keppel Corp, CEO of K1 and BV Singapore. The consortium currently owns a combined stake of 62% in K1 and will own 100% on successful takeover.

The offer was so low that I didn’t even bother to think twice on whether to accept it. After all, if …

IPO: My views on Far East Hospitality Trust

HPH Trust

Some time back ago, I received a query from a reader asking for my views on Far East Hospitality Trust IPO. As mentioned in one of my previous posts, normally I refrain from giving advice on IPO, especially business trusts or REITs.

I must admit that my knowledge in business trusts and REITs is lacking. But then again, investors need to understand that business trusts and REITs are very different from shares trading in the stock market.

The structure and nature of the business model can be quite complicated for the man in the street to comprehend. For example, investors need to know that REITs are actually managed by external managers and are backed by sponsors which are usually major property developers or shipping companies.

IPO

Sometimes, there may be non-transparency concerning party-related transactions, so there might be cases of poor disclosures to investors. In addition, the assets are financed not only by unit holders, but also through bank loans as well.

Borrowers have to top up their loan facilities, should underlying asset values fall below a certain point. So investors need to understand the leveraging risks of business trusts and REITs as well and not just be seduced by the …

Higher Starting Salaries for Fresh Graduates

Astrea

A recent survey released by Hay Group last week revealed that fresh graduates are drawing higher starting salaries compared to 2011. Those without Honors drew S$2, 678 while those with second upper Honors and higher drew S$2, 766 and S$2, 882 respectively. It also revealed that those working in the engineering sector drew the highest average salaries of $2,777 without honors. Jobs in research & development and merchandise operations ranked second and third, with the graduates earning S$2, 764 and S$ 2, 742 a month, respectively.

I am actually quite surprised by the survey as I always assumed that those working in the finance sector are usually paid well and would be among earn highest earners. But the results of the survey showed otherwise.

salaries

Based on the results, I think engineers are still in demand and would still command respectable starting salaries. I am heartened by this as my degree is engineering and I hold an engineering job. I would like to think that my engineering career can still last for another 10 -15 years, unless I decided to do a career switch or switch to entrepreneurship.

Another interesting fact is that the starting salaries for non-honors engineering graduates are …

Personal Finance Expert, Dennis Ng, passed away

I was shocked to learn that Dennis Ng has died suddenly of heart attack on 26th July. Dennis was well-known in Singapore to be a personal finance guru. He was the author of bestsellers, Mastering Your Personal Finance and What Your School Never Taught You About Money.

He was also the co-founder of HousingLoanSG.com, an independent mortgage consultancy portal. This article is dedicated specially to the man who have contributed greatly to personal finance literacy in Singapore.

I read from fellow bloggers in the investment community that he was someone who was willing to share his financial expertise and knowledge to novice investors. There are not many financial gurus, especially in Singapore’s context, who are willing to do so. Therefore, his demise is indeed a great loss to the investment community.

He is a role model of whom I aspire to be in the next 10 years. I don’t fancy myself as a guru, but it is my intention to share with my readers, my experience and lessons learned from investment mistakes. I hope that in the long run, I can reach the same level as Dennis Ng.

Thank you so much, Dennis Ng.Y

You shall be missed.

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