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, its stock price plunge by –17.2% since then even taking into account of dividends. Why is this so? The S&P 500 total return during the same period was -2.33%. Answer: There could be many reasons. Some are simple and others are complicated. I will attempt to explain in simple terms. No … [Read More...]
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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 working. If you earn $5000 a month and has 30 more years of working life, the human capital is 5000 x 12 x 30 = $1.8 million assuming no pay increment and inflation is zero. Because the human capital is the ability to earn money, it is beneficial to increase this human capital as high as possible. … [Read More...]
Featured articles
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...]
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
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...]
$300m company’s share price sliding down like a falling knife (not referring to Noble)
By now, everybody is aware that Noble’s share has been on a decline by a large magnitude. In fact, its share price is down by a whopping 98.43% compared to 5 years ago Like Noble, there is another … [Read More...]
Share price plunged despite good cash conversion cycle
is a technology company listed in Hong Kong. It is a highly efficient company in terms of its cash conversion cycle but it has caused shareholders to lose huge amount of money over the past few years. … [Read More...]
Why this company has high profitability but still lose money?
One of my client asked me about a particular company that is listed in Hong Kong and Shenzhen. She wanted to buy this company. is not a small company. It has a market capitalization of HKD 173 … [Read More...]
Paying dividends from borrowings
In 2015, I met a client who engaged me for comprehensive financial planning. But I was quite frustrated with the outcome because the client did not take up most of my recommendations. In particular, I … [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...]
When insurance agents jump ship, clients may suffer
For those who does not read newspaper, the Sunday Times has an article today on the potential problems that could occur when insurance agents are being poached (When insurance agents jump ship, … [Read More...]
3 Costly Mistakes to Avoid in Retirement Planning (Facebook Live)
Topic: 3 Costly Mistakes to Avoid in Retirement Planning. Date/time: 16 September 2017 10am (SGT). Duration: 1 hour. URL: … [Read More...]
A retirement product to be avoided at all cost (This post comes with an IRR calculator)
Not too long ago, I met a client who purchased the most horrible retirement product on planet earth. Apparently, his relationship manager used a Universal Life policy as a retirement product. The … [Read More...]
Up to 70% of financial advisers’ recommendations were unsuitable, says MAS mystery shoppers survey
MAS commissioned an external consultant to conduct a mystery shopping exercise in 2012 to determine the quality of advice given out by financial advisers[1]. The MAS mystery shoppers' statistics were … [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...]
Get Full Report on CPF Life with Escalating payouts and the Lifetime Retirement Investment Scheme
The government announced that it has decided to introduce two new CPF schemes: CPF Life with escalating payout feature and the Lifetime Retirement Investment scheme. CPF Life with Escalating … [Read More...]
Why private banking clients have no asset allocation skills?
A UBS survey among high networth individuals in Singapore and Hong Kong revealed interesting findings: 62% of investors admitted that they did not know how much to save for retirement Only 1% … [Read More...]
Vacuum Cleaners and Financial Services
What has Vacuum Cleaners salesperson and the Financial Adviser has in common? You'll be surprise there are many similarities. First publish in The Online Citizen, Wilfred Ling tell us what the … [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...]
CPF: How to Accumulate $1m in your CPF by 57?
I read from the CPF’s AREYOUREADY facebook about a man named Loo Cheng Chuan who believes he can accumulate $1m in his CPF. Is this really possible? The article did not provide any mathematics. I … [Read More...]
3 ways to make your SRS work harder
It is coming to end of the year. Those who wish to save on taxes are now thinking of tax saving measures such as Supplementary Retirement Scheme or better known as SRS. By default, SRS contributions … [Read More...]
A whopping 65% of retirees’ saving will not last, says NTUC Income’s survey
It was reported that 65% of retirees feel that their savings will not last through retirement. This survey was conducted by Nielsen commissioned by NTUC Income. In addition, retirees say that one of … [Read More...]
