Goals for 2010

E-Prep Course

I have already started on my E-Prep course conducted by Nanyang Technological University on Business Finance and made some progress:
Chapter 1 - An Overview of Financial Management (Completed)
Chapter 2 - Time Value of Money (Completed)
Chapter 3 - Financial Statements, Cash Flow and Taxes
Chapter 4 - Analysis of Financial Statements
Chapter 5 - Financial Markets and Institutions
Supposed to finish the module within 3 months and so far 2 weeks have passed, thus it's going at a relatively fast pace:)

Driving

Must obtain my driving licence before August, managed to clear all the theory tests and all that's left is the practical part.

Temporary Job

I must make a decision on which job I am going to take up after my ORD; my priority is to gain relevant experience in Banking & Finance and currently I have four options to choose from. One of them may offer the experience but I will not put my hopes too high and instead opt for the better-paying ones in case if things don't work out as well as I have expected.

Investment Analysis & Portfolio Management

Being a defensive investor, I have allocated a substantial percentage of my net worth in Singapore equities after my analysis has shown that the stock is trading at a discount from it's intrinsic value. In addition, I am psychologically prepared in the event that the market price of my holdings has declined on a temporary basis. One should never be forced to sell. Thinking of branching out into other assets to diversify away the risk after receiving income from the temp job(s).

Youth Investor Stock Challenge

A competition organised by OCBC Securities and SIAS which I have taken part and will commence at mid January. Due to the short time frame, a value approach based on fundamental analysis may produce limited results in the short term and therefore I am 'forced' to pick up some technical analysis tools. Guess I will be looking at more and more charts...

Fitness

It's important to be proactive and maintain a healthy lifestyle after NS, otherwise it's really easy to gain all the weight back in just a few months. Morning run everyday and gym sessions on every Monday, Wednesday and Friday. Will consider picking up another new sport if time permits, perhaps tennis or golf.

Organisation

It's certainly a positive sign that several of my buddies share similar interests with me, it would be great if we can work together and conduct some insightful research. Besides that each of us can also have our own specialisation - equities, bonds, real estate and options trading. Leveraging on each other's knowledge can definitely achieve synergy:)

I must, and I will achieve all these goals in 2010.

Financial Literacy

Financial Literacy

Managed to read the following books during my spare time or leisure:

Security Analysis
Rich Dad Poor Dad
One Up on Wall Street
The Intelligent Investor
The Essays of Warren Buffett
The Theory of Investment Value
Benjamin Graham on Value Investing
Common Stocks and Uncommon Profits
The Five Rules for Successful Stock Investing
The Neatest Little Guide to Stockmarket Investing

What is financial literacy, and why is it so important? I acknowledge the fact that people address and view this issue differently, however, a low perceived importance regarding financial affairs does not necessarily diminish its influence on our everyday lives. The old paradigm of achieving success has placed a flawed emphasis solely on intelligence quotient and emotional quotient, while these vital elements are indispensible, a new component has emerged - financial quotient.

While attaining excellent grades and studying at a prestigious institution used to provide a ticket to a life of luxury through high earning power, times have changed. The rules of the game have changed, just as how our economy has transformed to what it it today. Playing the new game using an old set of rules produces unthinkable consequences. We must learn to adapt to this changing world, for those who don't will eventually fail and face the fate of elimination.

Conversely, the shrewd few who invest their time and money to master the rules of the game will thrive, grow and prosper for generations to come. It is the survival of the smartest, the ones who are intelligent enough to recognise the effective means to achieve what they want, typically in standard Machiavellian fashion.

Shamefully enough, I have yet to gain a thorough understanding of the ideas expressed in these famous works. Nevertheless, I have already embarked on a financial journey and reached to an end of the NS stage. Results are mixed, but overall there is an improvement in my position and I am thankful of that. No one can predict what will happen in the future, but throughout passage of time we can still reasonably expect that generally sound principles produce sound results, and we must act on the assumption that they will continue to do so.

Asset Allocation

Everything which has a beginning also has an end, this statement can be soundly applied onto my National Service, which started 20 months ago on April 2008 and is coming to a close in Feb next year. Through disciplined saving and prudent spending (though there were occasional self-pampering involved), I find myself in charge of a modest amount of capital to allocate and manage.

Indeed, I have explored a great variety of financial instruments, which can range from the "safe" corporate bonds and governmental obligations to "speculative" options and futures trading. I found many of their concepts and characteristics interesting; but when it comes down to selecting one to build a portfolio the choices are pretty much limited.

Graham's philosophy resonates well with me, and thus I believe the first question one should ask is to elect to be a defensive or aggressive investor. Defensive means freedom from concern, annoyance, the need for making frequent decisions. Conversely, aggressive suggests the willingness and the ability to spend time searching for the ever present bargain opportunities.

Attaining the average result requires a minimum effort, but to achieve superior results, even of a slight magnitude, is much harder than it looks. Due to my limited knowledge and experience, it is probably wise to select the defensive (non-enterprising) path.

As Graham stated, percepts crystallised out of experience may run the risk of not withstanding the test of time. Understanding this inevitable development can well reduce the risk. While sweeping statements or easy generalizations (eg any bond is safer than any stock-try not to tell this to a bondholder full of defaulted bonds) do not retain its validity through the passage of time, the enduring principles are the ones which are closely relation to human nature and behaviour. A leopard never changes its spots. Concepts of behavioural finance such as overconfidence, loss aversion and mental accounting are useful ideas which offer explaination for some of the financial phenomenon we witness today.

Never stop thinking.

Update

Alright since I have received comments that I should update my blog, I shall gladly do so:) As a matter of fact, I don't even think that people actually read my blog. My sincere apologies for blurting out this comment, since I seldom do extraordinary or significant activities. I am worried these mundane events might bore my reader to death. So let's get back to the story, then.

One of the most enjoyable activities one can do in the army is to clear leave, and I shall state some of the things I have done:

1) Signed up for an E-PREP course, namely 'Business Finance' conducted by Nanyang Technological University. Well since I am going to study finance or finance related topics at the undergraduate level I guess it's a pretty safe bet to attend an introductory course to get a hang of what Finance's all about.

2) Registered myself as a student member of Securities Investor Association of Singapore (SIAS) as soon as I have collected my SMU student card (I matriculated just a couple of weeks ago). The logic behind this move driven by the need to attain more sophisticated financial statement analysis methods, my current superficial knowledge of accounting is very much limited; and to tear the annual reports of various companies apart I will need to acquire more information and practice more.

3) Last but not least, create a trading account at Central Depository Pte Ltd and most probably with PhilipCapital as my online brokerage. When I look back at that time when I just enlisted in the army, I was just a regular young kid with no serious goals or ambition. The thoughts of pursuing my interests and cultivating my passion didn't really cross my mind yet until after NJC. Perhaps all the studying there kind of buried my desire to achieve what I want.

"So what do you want to do in the future?"

"I don't know, maybe business?"

Now I know.

No, I have not forgotten you...

And I am referring to this blog. Too busy with work lately, but can't really elaborate here in order to prevent necessary trouble. Kinda felt that the previous blogskin was kind of dark and gloomy, even though there's Jay and Hebe in it. So I switched to this blogskin which is more light and cheery haha:)

Really didn't get to spend much time with my family and friends during the past few months, must really make it up to them when time permits me to do so. Anyway just don't expect me to blog every now and then, though you may have grown accustomed to it. Sometimes guys serving their obligation (notice that I try to avoid any related terms) really get cropped up in their work so much that they don't even have time for themselves.

Looking forward to the time when I regain my freedom and can accomplish what I really desire.

Choice of CCA?

Choice of CCA?

Got to know two SMU undergraduates taking double degree (Accountancy and Business) during their ICT and they recommended me to join them in SMIF (Student-Managed Investment Fund!;) Went to conduct some research and discovered the following information:

Fifty Singapore Management University (SMU) undergraduates are, however, going through this learning process in a substantially less painful way: they are gaining this invaluable experience by administering their school's Student-Managed Investment Fund (SMIF), which conducts 'paper trading' using a mock portfolio. In FY2008, SMU-SMIF outperformed the Straits Times Index (STI), which it is benchmarked against, by 10 per cent.'This is a return which compares favourably with some professionally-run funds. We even outshone some of them in terms of performance,' enthuses Mr Lim. 'We feel a great sense of achievement and personal pride at this, especially because it was done under such an adverse economic situation and amidst the demands of school life and academia - bt.com

https://secure.fundsupermart.com/main/community/forumPosts.svdo;jsessionid=HCW7K9lKNvJ1MbWCvyb0Qh32v1GQQCycg2JRktJJGqLTq7KWhgWF!274546672?page=401&pid=000433

Looks like I know which CCA to join in SMU already.

Surprised

Surprised

Never expected myself to attain the highest score, especially when there are people from Hwa Chong and Victoria among the class...

Sometimes I just feel that when things turn out this way, it may be... destiny.

Its something like you know what you are going to do in the future, what you are going to become and how you are going to achieve it...

Just Do It.

Same Old Thing Again

Same Old Thing Again

Can you believe it? I have to burn a weekend to study for my Combat Intelligence Test. I think people in the intelligence vocation tend to age the fastest, considering the amount of thinking and analysis that must be done before the commencement of any operation. Still, I kind of... enjoy it.

Its because the outcome of a battle is decided even before a single shot is being fired.

But seriously mugging is really not my cup of tea. I know some people think that being able to mug is extremely important in the sense that it allows them to get the fantastic grades and serve as a stepping stone towards earning big heaps of cash or the social status of being an elite scholar. More often than not, they also like to associate themselves with people of the same breed to feel that they are "a cut above the rest".

I only pray that they can leave me alone because the very thought of these empty pursuits disgusts me to the core. I believe being ordinary is also a form of happiness.

So please save me. I dun want to mug. I dun want to mug. I dun want to mug. I dun want to mug. I dun want to mug. I dun want to mug. I dun want to mug. I dun want to mug.

Is Competition Desirable?

Is Competition Desirable?

In the academic arena,

The scholars smile as they receive their excellent results

And the "commoners" cry when they dun perform up to expectations

So what's happened to the passion for learning?

Look at what our bell curves and GPA have done.

Funny Yet Scary

Funny Yet Scary



And after some thinking, I would like to share some of the possible ways to protect yourself in every week

Week 1
Birds of the same feather flock together, so try to attain reasonably good GPA to secure decent project mates (best if they are your friends to begin with)

Week 2
When this particularly irritating fellow is going to contribute non-constructive comments theres bound to be inherent flaws in his/her argument so shoot it down asap before any serious damage is dealt

Week 3
Sell instead of buy assignment answers and mock at the joker who just bought the wrong set of answers from you;p

Week 4
If someone spreads rumours about a person, say, A in front of B, B is getting the idea that he/she will do the similar thing in B's absence and be wary of him/her instead
Then can gang up with the "victims" and payback the liar during peer evaluation

Week 5
Dun be at the pub in the first place, prevention is better than cure

Week 6
Only stupid profs will be deceived by these petty tactics and probably can distinguish those who are genuine and those who are trying to suck up

Week 7
From a business/investing perspective, why believe your competitor is willing to share valuable tips with you for free? If you are not so intelligent enough to trust him/her then suffer the consquences of your naiveté

Week 8
Disappearing from projects or meetings will only result in a thumbs-down for peer evaluation, enough said

Week 9
Sucking up to people who are not close to you is a pretty obvious endeavor

Week 10
Sabo a group's presentation, and every group will sabo yours, being sabo by one or everyone is worse?

Week 11
Have a backup copy of your notes or guard your notes carefully shall do

Week 12
Telling people that you are at Zouk over the phone when in fact you are in the library/studyroom immediately gives the game away, assuming the other party is alert enough and of reasonable intelligence

Week 13
Come on the profs have got something better to do, besides its pointless to do all these if the fellow isn't providing the drinks and cigarettes

Week 14
He/she can claim to possess the same level of IQ as Forrest Gump but GPA doesn't lie

Week 15
Imagine what will everyone do to the only student with a calculator on the day of exam!?
Good luck to whoever he/she is...

In conclusion, I really wonder if the schemer who practises all these "strategies" can actually find the time and energy to study, inevitably he/she may be the one whos gonna end up with sucky grades

However, it is an undeniable fact there competition is intense there and that kinda makes me feel worried... While certain aspects may be exaggerated, it provides a warning regarding the intensity level of competition in the university. It also gives the student a taste of the workings of the corporate world, where the dog-eat-dog principle is the rule and not the exception. Still, I must applause the video for its high entertainment value. Well done!

Chances

Chances

What are the chances of meeting a NUS Law Professor+Law Consultant at one of Singapore's leading legal firm in a library on a Sunday morning?

Well, I have met one.

We actually spent the bulk of the afternoon discussing about Warren Buffett, whether to go long or short on bonds and the effect of macroeconomic trends on the market. Law undergraduates typically work around the clock to churn out reports for him, he said. To my surprise, he actually asked me if I was willing to assist him with his research:S

Unfortunately, my answer was no due to NS. In addition, I have still got my own research so I can't afford to be distracted now. At least we exchanged numbers and email.

What do I really want to do?

What?

What?

As it was told:


I know why you hardly sleep every night.

I know why you sit by your computer night after night.

You are looking for an answer.


And it will find me if I want it to.

If I want it to...

Late Update

Late Update
Sorry if I haven been updating my blog; it's just that there are so many things to do:S

Vincent introduced a new game, Left 4 Dead, to me. Warning: This game is extremely addictive. That's why I shall limit myself to playing only once in two weeks. Never knew killing zombies with your friends can actually be so fun.

Time really passes very quickly. Another batch of junior college students have received their A Level results. And I will blame myself for getting such unsatisfactory results again. Besides that, I am really afraid that the two years of blank will limit my ability to learn. And yet I dun see the rest of my peers acting in the same way as me. Am I being too paranoid?

Just to sidetrack:
21 - ORD
24 / 25 - Completed bachelor degree
28 / 29 - Completed master's degree (hopefully)

29! That is way too old already! Luckily I plan not to retire at all (assuming I can build my favourite career)

Some NSF like to complain that they are being neglected by their friends. I beg to differ. I enjoy doing things I like on my own too. I visited the Career and Education Fair today. As usual, people were giving me, this young little NSF, strange looks when I asked them about careers and stuff like that. Some were very helpful, taking lots of time to explain the details of the insurance, banking and finance industries to this young man.

Finally I understood what Philip Fisher meant by "scuttlebutt".

Experience Sharing

Experience Sharing

For the first time in my NS life, I am seriously thankful for my appointment as an intelligence specialist. Being involved in the conducting of reservist training allows me to meet a variety of vastly different people, but this particular battalion stands out exceptionally. I have had the rare opportunity to interact with investment bankers, especially one who is the vice president of a company (not much detail about him will be revealed in order to safeguard his identity) in Singapore.

I was working when I heard them discussing about the general economy situation and business climate. Without much hesitation I joined in and unknowingly we chatted for a couple of hours on topics covering banks, insurance and investment. We talked about George Soros and Peter Lynch. His unusual insights provided a most refreshing perspective on several financial issues. I have to admit it was rather intellectually challenging but satisfying to engage in a conversation with him. I was flabbergasted when part of my understanding on these matters was labelled as "most basic"! He later explained several concepts of finance to point out the flaw in my argument. But it was what he commented that made my day.

"You are not bad for someone of your age."

I beamed. But I know I still have a long way to go, and I shall never stop. Perhaps my starting point can possibly be an internship at his company after I ORD:)

Budget 2009

Budget 2009

No, I am not referring to the one for Singapore but more for myself.

In the face of this worsening global financial crisis, I am relieved to assert that there is no need for me to dip into my reserves. Furthermore, my job is recession proof and it is most unlikely that I will ever receive a pay cut in the near future.

Does that mean there is no cause for concern? My answer is a big, flat no. Though employed, it is not very comforting to know that I am seriously underpaid. In addition, transportation costs constitute a large financial burden for me. Even the price of hawker food has been rising despite the fall in fuel costs.

Even so, there are several measures which can be taken to minimize expenditure:

1) Stay in from Monday to Friday

Reduction in transportation costs from $60 to $12

2) Eat cookhouse food

Reduction in food expenses from $180 to $0

3) Outings

Reduction from $80 to $40

However, I cannot expect everyday to be the same and thus there will be some allowance for unexpected events, an amount of $50 will be set aside for such purposes. Any remaining amount will be spent on education through books and seminars.

Net expenditure per month: $52 - $102

The goal here is to contribute 90% of monthly salary into savings as compared to the current government scheme of approximately 20%. The only expenditure will be made on items of

1) absolute necessity, and

2) assets which will appreciate or generate passive income, namely investments in New York Stock Exchange (NYSE) or Singapore Exchange (SGX)

Damn Diao

Damn Diao

龙战骑士

我坚决

冲破这一场浩劫

这世界谁被狩猎

谁淌血

我却只为

拯救你的无邪

城墙上我在等魔坠

火焰吞噬无名碑

摧毁却无法击溃

我要爱上谁

废墟怎麽被飞雪了解

只能滋长出羊齿蕨

那些仇恨已形成堡垒

我又该怎麽去化解

低吼威胁

那些龙形的傀儡

牠们发不出的音叫心碎

惊觉你啜泣声迂回

如此纯洁

以温柔削铁

以爱在谅解

在末日边陲

纯爱

被隔绝

我在危城的交界

目睹你的一切

锈迹斑斑的眼泪

20th Birthday

20th Birthday

Thanks to Alvin, Shi Jun, Adeline, Li Yan, Xing Zhi, Daniel and Matthew for making this day really special for me. I will always remember this day:)

Catholic High

Catholic High

Thank you to the principal, teachers and students of Catholic High for bringing back the long-lost glory of Catholic High. This amazing feat will serve as a motivation to all Catholic High gentlemen out there and we should strive to achieve even better results in both the academic and sports arena.

No sky is too high for Catholic High.

人早离公教校园，可心永守公教家园

Tears

Tears

I couldn't help it and cried.

The movie was very touching indeed and I loved it.

We all should learn to treasure life and what we have.