This is a multi part article. For the previous article, you can read it here: What we can learn from Warren Buffett? Part 3. Do not get emotional Warren Buffett is not perfect. We can learn from his mistakes. Did you know that one of his worse investments turn out to be Berkshire Hathaway? Surprise surprise! Berkshire Hathaway was a textile company that was going downhill. Buffett Partnership first purchased Berkshire Hathaway in 1962 at $7.50 when the working-capital was worth $10.25 and a … [Read More...]
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If an insurance company pays claims that are much less than the premium collected, does it mean the product is priced too expensive?
I saw this Facebook post the other day and I felt it is one of the most common misconception about insurance. The Eldershield is meant for old age but the pool is young and so the claims are low. However, an insurance product should not be judge based on cash flows but based on its liability. For instance, you are 40 years old and if the claim is expected to occur at 70 and ends at 80 and assuming a $7,200 a year of payout, the liability to the insurer is given by the formula assuming a … [Read More...]
Featured articles
Dimensional Funds are now available for retail investors
For those who are into index investing will know how frustrating it is to do so. Vanguard has decided only to make its index funds available to Accredited Investors. Those who prefer to invest in MAS … [Read More...]
Conservative Account (for existing clients only)
This is an announcement for existing clients. The Conservative Account is an investment that aims to provide a return of 2-4% per annum (inclusive of dividends) with low volatility. The Account … Read more
What we can learn from Warren Buffett? Part 3
This is a multi part article. For the previous article, you can read here: What we can learn from Warren Buffett? Part 2. Treat the investment as a business Unlike many investors, Warren Buffett … [Read More...]
What we can learn from Warren Buffett? Part 2
This is a multiple part article. For the previous article, please refer to this article: What we can learn from Warren Buffett? Part 1 Having a diversified portfolio As at end of 2017, SEC 13F … [Read More...]
What we can learn from Warren Buffett? Part 1
BYD Co Ltd was listed on the Hong Kong exchange in 2002. It was one of China’s biggest rechargeable batteries maker. Berkshire Hathaway - the holding company which Warren Buffett is the largest … [Read More...]
Share Repurchase vs dividends
Many investors understand what dividends are. However, not many realized that there is another type of invisible dividends that is called the share repurchase. Both shares repurchase and dividends … [Read More...]
SingHealth breach: what does it mean to lose your data
By now everybody would have read in the news that 1.5 million SingHealth’s patients’ information were stolen. Singapore has a population of 5.79 million. So 26% of the population got their personal … [Read More...]
Why this company’s stock price plunged despite large profit announcement?
Q: Wilfred, Company X5 announced on 8th March 2018 that its full year results for 2017 was US$163 million in earnings. This was significantly larger than that in 2016 of only $6.7 million. However, … [Read More...]
Human capital and investing in employee stock benefits
Today I would like to introduce the concept of human capital and briefly touch on employee stock purchase program. What is human capital? Human capital is simply the ability to earn money by … [Read More...]
Investors always buy high and sell low regardless of asset classes
February 2018 started with a poor market performance. The S&P 500, Nikkei 225, STI and Shanghai Stock Exchange Composite index is down by -5.82%, -7.03%, -4.79% and -7.94% respectively in SG … [Read More...]
7 real reasons why most investors are not successful
Long time ago, the only way people can invest was by investing in stocks. However, not everybody had the expertise to pick stocks. Moreover, most people were busy working. So, they did not have time … [Read More...]
featured articles
It’s too late to do retirement planning when old, says Citi-SMU
According to Citi-SMU (SingaporeManagement University) symposium on financial Literacy for young adults, it is important to start managing one's finances when young. This is because picking up … [Read More...]
Why using ILPs for children’s education planning is a bad idea?
Many parents use ILP to save for children's education. I think this is a bad idea. This is why: The ILP salesman will market ILP on children's education like this: Life assured on the child. … [Read More...]
Property investment is illogical especially when its > 100% of networth
Update 30/11/2017: See article: MAS flags risks from 'excessive exuberance' in property market For those who has read my blog for some time is well aware that I am against the way many Singaporeans … [Read More...]
HSBC The Future of Retirement: 78% worried about not having enough for retirement
HSBC made a survey called “Future of Retirement” and it was found that: 1/3 of Singaporeans expect their standard of living to fall when they retire. 78% of working-age Singaporeans are worried … [Read More...]
Only 36% believe they can retire comfortably, says DBS-Manulife Retirement Wellness Study
In a survey called the DBS-Manulife Retirement Wellness Study released on 5 January 2016, it was found that: 2 in 5 Singapore residents are not confident about their retirement preparations. 56 … [Read More...]
How to create your own dividends paying portfolio
Today I want to discuss briefly about the quest for income generating investments. Many investors have the desire to invest in income generating instruments such as dividend paying stocks. Here is … [Read More...]
Women likely to be financially worst off after retirement
The latest survey conducted by HSBC Future of Retirement (Healthy New Beginnings) Singapore Report reported that: 32% of women say that their actual financial situation got worst after retirement … [Read More...]
Financial planner is a life coach, but cannot cure existing problems
“A teary Gao Ning, Singapore’s top male table-tennis player, crashed out of his first Olympics in just 24 minutes yesterday, losing 0-4 to unheralded Tan Ruiwu of Croatia. What raised hushed whispers … [Read More...]
Why you should NOT select your CPF Life plan at 55
CPF Life has undergone another change. Before the CPF Life change At age 55, the CPF Member has to choose whether he or she wish to enrol in the CPF Life Standard Plan or CPF Life Basic Plan. After … [Read More...]
Examples of mis-selling an insurance
In this short article, I will show how insurance products are mis-sold to unsuspecting customers. This article also serves as an education short write-up for existing financial advisers because they … [Read More...]
