sgwealthbuilder, Author at SG Wealth Builder

BullionStar offers Gold Buffalos for only spot price of gold +3.99%!

Apr 29, 2015 sgwealthbuilder 596 Views 0 Comments

Below is a newsletter from BullionStar, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the the goals of SG Wealth Builder is to educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation.

We are currently offering 1 oz Gold Buffalos (2013, 2014 and various years) for only the spot price of gold + 3.99 %. The offer is valid until 4 May or as long as stocks last.

The Gold Buffalo was first minted in 2006 and is the only 1 oz .9999 gold coin produced by the United States Mint. Encapsulating a monumental time in history, this beautiful coin is a modern rendition of the James Earle Fraser’s 1913 Buffalo Nickel, produced in pure .9999 fine Gold.

New Sales and Operations Manager

We would like to introduce our new Sales and Operations Manager, Mr. Luke Chua.

Luke brings with him the skills and experience required to propel us forward in the areas of customer experience, operational efficiency and effectiveness.

If you have any development ideas or would like to give us any feedback, please feel free to contact Luke.

Book review; investment

Why Singapore investors always lose money in shares

Apr 28, 2015 sgwealthbuilder 826 Views 0 Comments

For the past few years, there has been a proliferation of young investment bloggers in Singapore. While I am not sure if this is a good phenomenon, it certainly reflects a growing interest in the stock market among young Singaporeans. However, have you paused to wonder why Singapore investors always lose money in shares?

Many years ago, a veteran in the stock market told me that when taxi-drivers, housewives and students start to dabble in shares, it’s a warning sign that the market has peaked. In fact, for the past few years, the stock market in U.S. has rallied and surged to multiple highs. Entering the market during this boom period can be dangerous because many stocks have risen beyond their fair values. In such case, the return of your money is far more critical than the return on your money.

You must have heard of Warren Buffett’s famous quote “be fearful when others are greedy, and greedy when others are fearful”. To be frank I am not sure whether Warren Buffett practice what he preached because in reality, nobody knows how he invests behind the scene. In reality, telling this to someone who try to find value stocks in the current market is akin to telling a horny male to remain celibate, and thus, I often find this quote unhelpful.

Gold; currency

Gold and the currency market

Apr 22, 2015 sgwealthbuilder 714 Views 0 Comments

For the past few weeks, the rising Singapore dollar has caused substantial market swing in the currency market. Notably, Malaysia ringgit reached a low on April 17 when one Singapore dollar could buy RM2.7234. This inevitably created worries for many Malaysians who travel to Singapore or send their children here to study on a daily basis. The unfavorable exchange rate has reduced their purchasing power substantially.

If you think that the currency movements affect only forex traders, then you are wrong. In fact, it affects our daily lives because a stronger Singapore dollar can make imports cheaper and hence, help to curb inflation.

Indeed, the exchange rate is merely a tool used by many central banks, such as the Monetary of Singapore, to manage the country’s economy. From an investor’s standpoint, volatility in the currency market may not be a good news if the majority of their wealth is in cash holdings. Just imagine, a Malaysian millionaire who stash most of his bank savings in Malaysia ringgit must be very worried now. This is because the ringgit may depreciate further due to the strengthening of US dollars and potential analysts’ downgrades.

On the other hand, Singapore investors should not be complacent and think that Singapore dollar would always remain strong.

Investments

Crowdfunding will be a game-changer for retail investors

Apr 21, 2015 sgwealthbuilder 605 Views 0 Comments

For many years, investors in Singapore have been lamenting the lack of fixed income investment opportunities. This is because most of the corporate bonds in the market are accessible only to the institutional investors. Further to this, the dream of owning a second property to generate rental incomes for retirement purposes has also become unattainable for many retail investors after the implementation of the slew of property cooling measures. The emergence of crowdfunding is set to change all this. In fact, crowdfunding could well be a game-changer for the financial sector in Singapore.

In a consultation paper issued by Monetary Authority of Singapore (MAS) in February 2015, the MAS recognizes the enormous growth potential of crowdfunding and defines crowdfunding into four forms, namely: donations, reward-based, lending-based and equity-based. MAS deems that the latter two involves exchange of “debentures or shares”, and hence, they would be subjected to securities regulation.

Currently, there are a few companies in the market that offer lending-based crowdfunding services in the form of “peer-to-peer lending”. One of them is Capital Match, co-founded by Pawel Kuznicki. According to Pawel, Capital Match aims to provide business borrowers with the next best interest rates after banks and at the same time, offers investors access to attractive yield with a low investment entry amount.

Stocks

Importance of managing cash flow

Apr 21, 2015 sgwealthbuilder 871 Views 0 Comments

When investors have some monies in hand, one of the most difficult decisions to make is how to use the fund efficiently and effectively. Should you use the money to pay off your outstanding housing loan or car loan? Or should you top up your CPF accounts? Is it a better option to use the money to invest in shares than generate better returns than saving deposits? Or should you invest in a second property to produce a fixed income for your retirement?

In any case, there is no right or wrong answer. But my personal strategy is to maintain a healthy cash flow and I don’t like to pay off all my loans and be debt-free. Having some amount of money in hand allows me to invest in appropriate instruments when the opportunity arises and also cover needs during emergency times. But I always make it a point to clear all my credit card bills on time to avoid incurring late payment charges and interest fees.

But just what is cash flow and why is it important to manage it? From an equity investor’s point of view, free cash flow within a company is the balance of money remaining after the operating expenses are deducted.

Investments

Homegrown start-up Capital Match launches peer-to-peer platform to lend to Singapore businesses

Apr 19, 2015 sgwealthbuilder 900 Views 0 Comments

SINGAPORE – 14^th April 2015 – We are pleased to announce the launch of Capital Match, a homegrown Singapore-based peer-to-peer (P2P) lending platform that helps Singapore SMEs obtain loans financed by individual investors.

The objectives of the company are two-fold:

– provide business borrowers with the next best interest rates after banks, and

– give investors access to an attractive yield with a low investment entry amount.

Capital Match (CM) has an in-house credit function that carefully evaluates the circumstances and purpose of each borrower to determine an appropriate loan amount, tenure and interest rate.

This in turn allows CM to provide investors with a curated selection of loans to build their investment portfolio.

Helping SMEs with financing

According to figures released by Singapore SME consultancy Loyal Reliance, only about 13% of loan applications made by its SME clients in 2012 were approved.

“The SMEs we speak to tell us it is increasingly difficult for them to get loans from banks”, says Pawel Kuznicki, an ex-management consultant formerly from Rocket Internet, who co-founded the company with Kevin Lim, an ex-investment banker and Dr. Arnaud Bailly, a software engineer.

“P2P lending will provide a much needed source of alternative financing for our local SMEs.

Gold

SG Wealth Builder Email Interview with BullionStar

Apr 17, 2015 sgwealthbuilder 1236 Views 0 Comments

SG Wealth Builder is pleased to conduct an email interview with Torgny Persson, CEO of BullionStar, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the the goals of SG Wealth Builder is to educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation.

1) Mr Torgny, in your opinion, what is the outlook for gold in 2015? Given that the economy recovery is gaining traction in United States, would there be any negative or positive impact for gold prices moving forward?

The so called recovery is a phony recovery in my opinion. The economies in the West are facing a lot of underlying problems with unprecedented debt levels, trade imbalances, high unemployment and misallocated investments. The current monetary system based on fiat credit and fractional reserve banking is going to implode under the debt burden. The price of gold thus hasn’t got so much to do with gold but everything to do with how worthless our currencies get.

Gold will revalue significantly in terms of purchasing power in the monetary reset we are soon to embark on.

Property investment;

Property: Foreign Investment Opportunities

Apr 14, 2015 sgwealthbuilder 698 Views 0 Comments

Below is a guest article contributed by Lamudi, a German properties listing company. Given the current cooling measures, many Singapore investors are turning their eyes on property market in South East Asia countries. Investors should be aware of the risks involved and the regulations in these countries to avoid losing monies in such investments.

2015 is predicted to be the year when many emerging markets in Asia such open up their property ownership to include foreigners. As it stands in many countries, non-citizens are prohibited from buying properties. For example, in Philippines the country’s constitution bans non-Filipinos from owning land and in Sri Lanka non-citizens pay more tax when they own any property.

However, there are signs that this may be about to change. 2015 will see countries in the Association of Southeast Asian Nations (ASEAN) merge to form a single market. The establishment of the ASEAN Economic Community is expected to boost foreign direct investment in the Philippines and also in untapped markets across the region, putting pressure on lawmakers to amend these ownership restrictions. This year, foreign ownership laws will also come into focus elsewhere in Asia, with debate set to continue in Indonesia and Myanmar about opening up the countries’ property sectors to international investors.

Personal finance; saving accounts; bonuses; financial planning

The most financially challenging period of my life

Apr 13, 2015 sgwealthbuilder 836 Views 0 Comments

On 8th of April, I became a father for the second time! My little bundle of joy came slightly earlier than expected and my wife and I were a bit unprepared because incidentally, my elder daughter happened to fall sick during this period. But thank goodness, my mother-in-law and mum were around to help out. I really appreciate for what they did.

Everyone has the right to procreate and pass on his legacy. Nobody can take this right away from him. But I think most Singaporeans have the wrong mindset about raising kids in Singapore. They always associate money and the high cost of living as two key factors that deter them from having babies. Most Singaporeans want to establish their careers first before having children. Of course money is important, and we need good incomes to support family needs. But then again, how much is considered enough and when is the right age to be considered financially stable to have babies? Before they knew it, many Singaporeans could be well past their child-bearing age in no time and would regret not conceiving when young and healthy.

For the past three years, my daughter had brought us so much love, joy, tears, laughter, anger and frustrations.

Gold; silver

BullionStar: Gold, Governments and Central Banks

Apr 6, 2015 sgwealthbuilder 611 Views 1 Comment

Below is an article from BullionStar, a bullion dealer based in Singapore which exempted investment grade precious metals from the goods and services tax (GST). Just like BullionStar, one of the the goals of SG Wealth Builder is educate Singaporeans on the merits of owning gold and silver bullion as a means of wealth preservation.

Governments and central banks are frequently criticized by goldbugs for being anti-gold. Examples include the Indian government restricting gold import, the US government refusing to carry out a full audit of the US Treasury’s gold holdings and the Swiss government and central bank strongly opposing the “gold initiative” demands.

India, the US and Switzerland are all three on the top 10 list of official gold holding countries and thus relevant for the discussion.

India

The Indian government and central bank are notorious for repeatedly discouraging gold importing and gold hoarding. In trying to curb India’s trade deficit, the Indian government and central bank, Reserve Bank of India, are working together in pushing a policy they call “moderating gold demand”. There’s currently an import duty of 10 % on gold imported to India.

India, in a rare glimmer of common sense, however recently announced that it had scrapped the weird 80:20 rule mandating gold importers to re-export 20 % of their imports.

Property investment; Singapore market;

URA improves property price index (PPI) to better reflect price changes in private residential market

Apr 4, 2015 sgwealthbuilder 914 Views 0 Comments

Data don’t lie but how it is sliced can lead to different pictures. Therefore in a bid to improve the methodology, the Urban Redevelopment Authority (URA) released the flash estimate of the private residential property price index (PPI) for 1st Quarter 2015.

The rationale for the revision is because there is greater variation in the housing size and age profile of the private housing developments. With this in mind, URA has decided to switch to a regression method and used the period of 1Q2009 as baseline reference.

Flash estimate of 1st Quarter 2015 PPI

Using the revised methodology for the PPI, the overall private residential property index fell by 1.1%. This is the sixth continuous quarter of price decrease. This moderate decline is within my expectation and in my view, the slide is expected to continue unless the government lift some of the restrictive cooling measures.

Prices of non-landed private residential properties declined in all market segments, as they did in the previous quarter. Price fell 0.6% in Core Central Region (CCR), 1.8% in Rest of Central Region (RCR), and 0.9% in Outside Central Region (OCR). Prices of landed properties fell 1.1%.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment, caveats lodged and survey data on new units sold by developers during the first ten weeks of the quarter.

Money management; personal finance

A nation in disgrace

Mar 27, 2015 sgwealthbuilder 721 Views 0 Comments

Would you take our children to court if they do not support us when we are old and jobless? This was the question that I posed to my wife after I saw an article by a money blogger who regretted the way he treated his late father. Apparently, he was not on good term with his father and was compelled by the family court to support his father under the Maintenance of Parents Act.

After reading his article, I could feel his remorse, but I was not impressed with him either. To be taken to court by parents is a shameful thing, especially in an Asian society like Singapore, where family disputes are often confined within homes. Because of dignity and face value, very few parents are inclined to haul their children to court for not supporting them. Those who did are usually driven to desperation and forced to make their children pay up.

The Maintenance of Parents Act was promulgated in 1995 to give parents above 60 years old who could not support themselves the legal means to claim maintenance from their children. The implementation of such an Act in a First World country like Singapore shows the lack of social value and filial piety among many Singaporeans.

Property investment; Singapore market; housing prices

Homeowners feel the heat from rising interest rate

Mar 24, 2015 sgwealthbuilder 869 Views 0 Comments

It is like a rude shock to a sweet dream. Singapore homeowners are given a reality check since the start of the year when the key interest shot up like nobody business. Perhaps it is a sign of things to come but the trend is expected for a long time since the last financial crisis in 2008, which led to many countries to adopt loose monetary policies in the form of quantitative easing, notably from United States, Europe, Japan and China.

According to the Association of Banks in Singapore’s website, the latest three-month Singapore interbank offered rate, SIBOR, was 0.972% as of 20th March 2015. This was the highest level since 2008 amid expectations that United States Federal Reserve would possibly raise the lending rates mid of this year.

Obviously the above information is bad news for home-owners who borrowed a lot from the banks to finance their properties. Any slight incremental increase in the lending rate would affect their spending abilities.

I can relate to homeowners’ fear as I have home mortgage loan as well. Any form of market uncertainty is bad from a homeowner’s point of view because of budgeting concerns. Incidentally, in a few months’ time, the tenure of my mortgage loan will expire and I am looking to refinance my mortgage loan.

Stocks

When is the best time for you to invest in great businesses?

Mar 23, 2015 sgwealthbuilder 678 Views 0 Comments

Investment moats is the competitive advantage of a company that allows it to fend off competition from its rivals and enable it to earn excess returns for many years. According to Morningstar’s Why Moats Matter, there is a stock research process which guides investors on how to invest in great businesses at the right time and make money from the stock market.

The process involves a bottom-up approach which requires investors to identify the company’s moat(s), establish the fair value and determine the margin of safety. On the surface, it may seem straightforward but when you put it into practice, it is not so simple.

Moat Sources

According to Morningstar’s investment framework, there are five main sources that a company may possess: intangible assets, cost advantage, switching costs, network effect and efficient scale. Now why is having a moat source important from an investor’s point of view? If you recall that 15 years ago, Nokia used to dominate the worldwide mobile phone market and boasted the majority market share for a number of years. However, the entry of Apple’s iphone in 2007 changed the game and led to a dramatic shift towards smartphone, leading to Nokia losing its status as the market leader.

Entrepreneurship Investments

Capital Match: Singapore’s Peer-to-Peer Lending Fintech

Mar 16, 2015 sgwealthbuilder 992 Views 0 Comments

Since SG Wealth Builder was founded in 2010, I had the opportunities to meet CEOs and entrepreneurs who unselfishly shared with me their visions and investment insights. Today, I am excited to be granted an email interview with Pawel Kuznicki, co-founder of Capital Match. The company is a peer-to-peer lending fintech start-up in Singapore.

1) Can you share with the readers your background and business model?
I started my career as a consultant with McKinsey & Company in Europe and Africa. Then I moved to Rocket Internet, global venture builder, to build their portfolio companies in Southeast Asia (Zalora and Lazada). Last year I started my current business, Capital Match.

Capital Match is a peer-to-peer lending online marketplace to SMEs. Peer-to-peer lending is essentially banking without a bank as an intermediary – investors lend money directly to companies with Capital Match facilitating the transactions by providing credit risk assessment, legal documentation and debt collection services.

We mainly serve SMEs who cannot get a bank loan (a majority of SMEs in Singapore). We provide them loans of SGD 50,000-200,000 for a term of 3-12 months. Loans are syndicated with multiple investors providing funds to one borrower. The interest rates vary from 1.5% to 2.5% per month (on top of it there is additional processing fee of 0.2-0.5% per month).

Gold

Bullion Star Financials 2014

Mar 14, 2015 sgwealthbuilder 643 Views 0 Comments

In a step to further increase customer transparency, Bullion Star published its financial information such as sales revenue, number of orders, average order, medium order, website visits and other key data in its website on 14th March 2015.

Sales revenue was impressive and amounted to $53 million with average order of $6475. BullionStar.com also had more than 850,000 visits from 268,000 unique visitors in 2014. Among the 180 different products that Bullion Star carries, gold bars were the most popular products, consisting of 52% of its total sales, followed by silver bars (18%).

To be frank, I struggle to find another bullion dealer that carries so many variety of bullion products that Bullion Star offers. Furthermore, the prices of their bullion products are among the most competitive that you can find in Singapore.

The company was started in 2012, straight after the Singapore government announced GST removal for investment grade precious metals, and became operational in 2013. SG Wealth Builder is honored to partner with Bullion Star to bring new exciting technology into the precious metal industry since 2013!

Among the various product offerings of Bullion Star, my favorite one is the Bullion Savings Program (BSP) that are fully backed by precious metals and allows customers to convert to physical bullion at any time.

personal finance

CPF Medisave Minimum Sum to be scrapped on 1 January 2016

Mar 13, 2015 sgwealthbuilder 0 Views 1 Comment

Health Minister Gan Kim Yong announced in Parliament yesterday that the Medisave Minimum Sum will be scrapped next year January. For many Singaporeans who had been lamenting that their CPF monies “don’t really belong to them”, this is definitely a form of greater flexibility on the uses of their Medisave accounts. This is because when Singaporeans withdraw their CPF monies at age 55, they will no longer need to first top up their Medisave accounts to the MMS. Instead, they will only need to meet the withdrawal rules.

Another change would be the Medisave Maximum Ceiling, which would be fixed for each cohort of Singaporeans when they turn 65 years old. Mr Gan reiterated that the ceiling has to be raised every year to keep pace with rising inflation and increasing life expectancy. Given a choice, I would not touch my Medisave monies even if I am 55 years old now because the interest earned in Medisave account is so much higher than the current bank saving rates. However, going forward, the interest rate environment might change, so I really appreciate the scrapping of the Medisave Minimum Sum.

The revised Medisave rules is a sign that the government is beginning to soften its hardline approach on CPF monies.

Stocks

Monetary Authority of Singapore (MAS) is proposing new rules on securities-based crowdfunding

Mar 12, 2015 sgwealthbuilder 661 Views 0 Comments

Crowdfunding is the latest investment trend that uses online technology platforms to address both the needs of investors and small-medium enterprises (SME). At one hand, retail investors are looking for viable fixed income sources to grow their wealth. On the other hand, we have start-ups and SMEs which lack access to alternative pools of private financing, other than commercial banks. This is where crowdfunding can help to bridge the gap.

In a recent consultation paper issued, the Monetary Authority of Singapore (MAS) is proposing measures to facilitate crowdfunding involving securities.

Generally there are four types of crowdfunding – donation-based, reward-based, lending-based and securities-based. According to MAS, donation-based and reward-based are not subjected to securities regulation as there are no exchange of securities and promised of financial returns. However, for lending-based and securities-based, MAS deemed that they are subjected to securities rules.

Henceforth, MAS’ proposed framework for securities-based include the requirement for companies operating lending-based or securities-based crowdfunding platforms to hold Capital Markets Services (“CMS”) licenses. In addition, MAS would restrict offerings from lending-based and securities-based to only Accredited (AIs) and Institutional Investors (IIs). The rationale for this approach is because MAS aims to safeguard the interest of retail investors as there is a certain amount of risks in such investment products and MAS deemed that AIs and IIs are better positioned to handle the level of risks involved as they have more capitals and experiences.

Gold

BullionStar is hiring!

Mar 10, 2015 sgwealthbuilder 748 Views 0 Comments

Below is newsletter from BullionStar, a Singapore online bullion company where you can buy gold and silver at competitive prices. To be a successful wealth builder, investors must always stay ahead of the the curve and keep abreast on the latest development in investment trends. For the past few years, the government has been trying to establish Singapore as a precious metal trading hub, with the aim of creating good job opportunities for Singaporeans. The salaries offered by BullionStar is really attractive and competitive. So Singaporeans should have no valid reason to complain the lack of good paying job positions in Singapore. Read on to find out more

BullionStar is currently hiring for customer service roles. Singapore is the go to place in the world for precious metals. If you are passionate about the bullion industry, now is the time to join our team!

We are hiring 1-2 people for customer service roles which include serving bullion customers, handling transactions, handling bullion and carrying out various administrative tasks.

BullionStar is a fast paced company. To contribute to our team you will have the following skills:

– Accurate and meticulous
– Versatile and hard working
– Communicative taking initiatives and giving feedback

The job location is BullionStar’s bullion shop, showroom and vault at 45 New Bridge Road.

Stocks

Sheng Siong Group’s net profit grew 22.3% yoy to S$47.6 million for FY2014

Mar 4, 2015 sgwealthbuilder 820 Views 0 Comments

Singapore, 25 February 2015 – Sheng Siong Group Ltd. (“Sheng Siong”, together with its subsidiaries, the “Group” or “昇菘集团”), one of the largest supermarket chains in Singapore, reported a 22.3% year-on-year (“yoy”) increase in net profit to S$47.6 million for the full year ended 31 December 2014 (“FY2014”), mainly because of higher turnover and improved gross margin.

Revenue increased by 5.6% yoy in FY2014 of which 2.3% was contributed by the new stores which were opened in 2012, and 3.3% from comparable same store sales for the old stores. The increase in revenue was driven mainly by growth in the new stores, longer operating hours, marketing initiatives and renovation to some of the old stores. Most of the new stores, which are now in their third year of operation, continued to grow within expectations. Revenue contraction in the Bedok and Tekka stores appeared to have bottomed out in 4Q2014, despite growth remaining negative for the full year, though of a lesser magnitude compared with FY2013.

Gross margins increased to 24.2% in FY2014 compared with 23.0% in FY2013, driven mainly by lower input costs derived from the distribution centre, better sales mix, and stable selling prices.

Administrative expenses increased by S$6.4 million in FY2014 compared with FY2013, mainly because of the increase in staff costs.

Stocks

What is it like to catch a falling knife?

Mar 3, 2015 sgwealthbuilder 896 Views 2 Comments

One of the golden rules in investing is never to catch a falling knife. Yet when it really does occur on one, most of the time, most investors would enter into self-denial mode and refrain from exiting their investments or cut losses early.

You can term it as a classic investor’s symptom or attribute it to ego, greed and fear of cashing out too early. Whatever the case it is, catching a falling is a very painful experience and investors must not confuse it with the technique of dollar-cost-averaging. In my early days of investing, I made this folly in one of my investments – China Enersave.

About 10 years ago, the renewable energy sector was seen as a hot prospect because of the sky-high fuel prices and the Clean Development Mechanism (CDM) under the 1997 Kyoto Protocol. Many companies were engaged in various alternative fuel solutions and one of them was China Enersave, a Singapore company which operated biomass power plants in China. When I came across the profile of the company, like many novice investors, I was intrigued by the business model and therefore invested in the stock. In my excitement, I threw all caution to the wind and ignored the early warning signs – poor management execution, lack of company’s track record and the high risks of doing business in China.

Uncategorized

Singapore Memories: Chinese TV Drama – The Unbeatables

Mar 2, 2015 sgwealthbuilder 1155 Views 0 Comments

As we celebrate Singapore’s 50th birthday this year, I can’t help but look back at how much our society has transformed and progressed over the years. I grew up in the 80s, a time when smart phones and Internet were non-existent. Though life was simple, the pace was also less stressful. In fact, my generation’s main sources of after-dinner family entertainments were television and radio only. To capture the memories of this past generation, I decided to blog about this beautiful chapter of my life in a series of articles starting with this one.

Widely seen as the trail-blazer TV drama serial in Singapore’s Channel 8, The Unbeatables was the first show that featured gambling as the core theme and took the Singapore’s audience by storm more than twenty years ago. Even though the show was produced in 1993, an era without the distractions from cable TV and Internet, most Singaporeans would agreed that it was one of the greatest shows that SBC (the predecessor of Mediacorp) has ever produced, even until today. In my view, I would say that The Unbeatables, was truly unbeatable, and had set the gold standard for the media industry. For more than two decades, no other shows had come close to matching The Unbeatables’ quality, class and enthralling twists.

Gold; silver

The Silver Bull Market: Four Investment Factors to Consider Before Buying Silver or Gold

Feb 20, 2015 sgwealthbuilder 726 Views 0 Comments

In Shayne McQuire’s The Silver Bull Market, he highlighted four important factors to consider before buying silver or gold:

1) Investment safety refers to your capital protection from the financial market risks. Most people always lament that owning silver or gold bullion does not provide dividend incomes. However, they don’t realize that precious metals allows you to remove wealth from the financial system. This is because gold and silver have historically been used as store of wealth and gold in particular, is seen as an effective tool to beat inflation. Take the current Euro crisis as an example. Greece is facing possible exit from the Euro because of its massive national debts. The country had been previously bailed out with a $275 billion international loan and is now asking for fresh fund of $10 billion euros in short term financing. Clearly, the country’s plight shows that the Europe economies are not doing well and holding on to the Euro currency might be risky as it could face possible devaluation if the crisis spreads across Europe.

2) Investment potential refers to the ability for the price of silver or gold to rise over the long term. It is interesting to note that while Warren Buffett disdains gold for its lack of utility, he views silver differently and even purchased 130 million ounces (at low price of $6) in the late 1990s, one fifth of the global production at the time.

Stocks

How to estimate fair value of a stock

Feb 17, 2015 sgwealthbuilder 786 Views 0 Comments

Many finance bloggers like to quote Warren Buffett’s saying “price is what you pay; value is what you get”. However, knowing this is one thing, practicing it is another matter altogether which requires some level of deep analysis. The fact is that you can’t determine the intrinsic value of a company just by staring at the figures stated in the quarterly or annual financial statements. According to MorningStar’s “Why Moats Matter”, there are generally two approaches when it comes to valuation concepts.

How do investors identify great companies? One of the simple tools to value company is through using earnings yield, or more commonly known in the investment community as Price/Earning (P/E) ratio. This simple method requires only current share price divided by the last 12 month’s earning. Companies with high P/E ratio are considered growth stocks.

There are pros and cons in using P/E ratio to measure the value of a company. Whilst this metric is relatively easy to calculate, this approach might not be appropriate for companies whose profits swing significantly from year to year. This is especially for for high growth stocks and cyclical companies like the airlines and IT companies.

Another approach of measuring the intrinsic value of a company is to determine the discounted cash-flow, or DCF.

Stocks

Singtel reports robust Q3 earnings growth

Feb 16, 2015 sgwealthbuilder 736 Views 0 Comments

Singapore Telecommunications Limited reported group earnings results for the third quarter and nine months ended December 31, 2014. For the quarter, the company reported group revenue of SGD 4,427 million compared to SGD 4,263 million a year ago.

EBITDA was SGD 1,229 million compared to SGD 1,264 million a year ago. Underlying net profit was SGD 970 million compared to SGD 910 million a year ago. Net profit was SGD 970 million compared to SGD 872 million a year ago.

Free cash flow was SGD 669 million compared to SGD 569 million a year ago. Profit before EI and tax was SGD 1,285 million compared to SGD 1,236 million a year ago. Net profit rose 11.2% boosted by higher mobile data revenue and bigger contributions from its mobile partners in Australia and elsewhere.

The company delivered a solid third-quarter performance and successfully increased mobile data revenues with better networks, technology, content and service. Post-tax profit of its associates rose 29% to SGD 458 million, led by Telkomsel in Indonesia and Bharti Airtel.

For the nine months period, the company reported group revenue of SGD 12,884 million compared to SGD 12,720 million a year ago. EBITDA was SGD 3,817 million compared to SGD 3,858 million a year ago.

Property investment; Singapore market;

Singapore private property prices decline for the first time since 2008

Feb 14, 2015 sgwealthbuilder 967 Views 0 Comments

According to data released by URA on 23 January 2015 for 4th Quarter 2014, the prices of private properties declined by 4% for the year of 2014 as a whole, compared to an increase of 1.1% in 2013. The report also highlighted that there were price decrease across all segments of the private residential property market, including the central region, which seen drop of 0.9%.

Source: URA

The current market trend is in line with what most analysts predicted last year and the market mood is expected to continue to be sour moving forward. With the slew of cooling measures firmly in place, many property investors are still adopting a wait-and-see approach. Because of this, for the whole of last year, developers sold 7,316 units, a figure much lower than the 14,948 units sold in 2013.

Source: URA

To make matter worse, if we include the 14,220 Executive Condominium (EC) units in the pipeline, there would be a total of 83,180 units in the pipeline. Also, based on the completion dates reported by developers, about 24,796 units (including ECs) will be completed this year and another 25,717 units (including ECs) are expected to be completed in 2016. Clearly, the data indicated that the supply is outstripping the market demand since 2010 as reflected below.

Gold; portfolio management

Why Singaporeans always lose money in gold investments

Feb 11, 2015 sgwealthbuilder 815 Views 1 Comment

Ignorance is one of the main reasons why investors consistently lose monies when it comes to investing because the biggest risk comes from not knowing what you are doing. The second factor is greed, which causes investors to lose sight of the risks involved in alternative or exotic investments. In the pursuit for higher returns for their monies, those who are greedy overlook or underestimate the risks involved. Thirdly, arrogance is the ultimate downfall for those who don’t respect the market. Always remember the golden rule that you can never win the market consistently, so avoid leveraging your investments if you don’t have the holding power. Yes, leveraging can increase the profit margins, but it can also backfire and widen your losses when the market turn against you.

In early February 2015, news broke out that more than 250 Singaporeans lost an estimated $35 million in yet another flopped gold buy-back scheme operated by Suisse International. Unhappy investors gathered outside the police headquarter trying to lodge police reports to the Commercial Affairs Department (CAD). It was amazing that after so many widely reported cases of gold buy-back scams, Singaporeans still fell prey to such schemes. There were a few who even claimed to borrow a few hundred thousands from the banks to invest.

Stocks

Investing in SingTel

Feb 4, 2015 sgwealthbuilder 0 Views 0 Comments

Nowadays, I am extremely fed up with M1 network services. No matter where I go, the 3G network coverage is terribly poor for my mobile phone. As a result, sometimes I could not receive messages from my loved ones and friends.

I suspect the drop in the network quality may be because I cancelled M1 4G subscription recently – previously it was offered to me free-of-charge when I renewed my subscription plan but M1 stated that it would charge me $10 extra from January 2015 onward. If not for the fact that I have to pay hefty penalty for cancelling my subscription plan contract, I would have terminated my line long ago.

From the consumer’s point of view, if I am not satisfied with a company’s services or products, I would not invest in their shares. For a knowledge-driven economy, internet data access is critical in Singapore and if M1 is unable to provide reasonable network service level, it don’t deserve any investment merits. Notwithstanding the dividend track records, if M1 is unable to retain customers, its economic moat will only erode over the long run.

The saturated Singapore market and the fierce competition among the three telecommunication companies (SingTel, M1 and Starhub) reinforce the importance of economic moats in this sector.

Gold

Gold Bars traded without spread in Singapore – A world’s first!

Feb 3, 2015 sgwealthbuilder 1218 Views 0 Comments

Below is a press release from BullionStar Pte Ltd, a Singapore registered bullion dealer offering GST exempted precious metals for savings and investment. The Singaporean government exempted precious metals in 2012 with the objective of making Singapore a trading, transit and storage hub of precious metals.

Gold Bars with No Spread!

Today, BullionStar launches a unique new opportunity to buy and sell physical 100 gram gold bars without any spread between the buy and sell price! The BullionStar 100 gram gold bar is the world’s first physical 100 gram gold bar to be traded with no spread.

The gold bars are minted by the Swiss LBMA accredited refinery Argor-Heraeus for BullionStar with the text “Money since 4000 B.C.” on reverse indicating that gold has been money for some 6000 years.

When you buy 10 or more of these gold bars there’s no spread between the buy and sell price whatsoever. For purchases of less than 10 bars, there’s a small spread of 0.6 % which is still significantly less than normal for 100 gram bars.

BullionStar Mint – Gold Bars with No Spread – 100 gram

The gold bars are minted by the renowned Swiss refinery Argor-Heraeus and comes sealed in a tamper-proof Certicard blister package.

Investments

Singapore investors set to lose $70 million

Feb 2, 2015 sgwealthbuilder 760 Views 0 Comments

According to today’s Property Guru’s news article, 400 Singapore investors are suing Ecohouse for investment losses of up to $70 million. Apparently, the company had an office in Suntec Tower and managed to attract many first time retail investors hoping to make money from overseas property investments. Investors were sold investment schemes that promised to deliver “20% in 12-months on its S$46,000 social housing property investments”.

To put things into perspective, many of these Singapore investors are not your typical mom-and-pop types of investors who are uneducated and ignorant. Most of the victims are middle-class people with high incomes seeking to enhance their wealth through schemes that promise high returns within a short time frame. Usually the scheme involves pooling of investors funds and the money is typically managed solely by the operator. The first principle that investors should always bear in mind is that if something is too good to be true, it is! Retail investors should first of all check whether these schemes are regulated, instead of just focusing on the rate of returns.

Ecohouse managed to sell more than 1000 of their investment schemes in Singapore and other South East Asian countries in 2012 and 2013. That was the period when the property market was in blistering red hot form in Singapore and also coincided with the slew of cooling measures implemented by the government.