Financial Relativity

As I progress further along my journey, I begin to understand the concept of financial relativity. In a nutshell, financial relativity is how much we think or feel is a large sum of money relative to our mindset. $10,000 to a billionaire is probably equal to about $100 to a millionaire, which is probably equal to $1 to a thousandaire.

So... how much is a large sum? Is $100 large? I remember feeling that it was a huge sum when I was serving the army with a monthly allowance of $500+. $100 could make a significant difference in my assets for months, or so I thought. But now, I would spend it on meals with my girlfriend quite frequently as it is no longer very large to me. It is fairly insignificant to my assets, and feels perfectly normal to me.

Starhill Quarterly Results

SINGAPORE, 26 April 2010 – YTL Pacific Star today announced that Starhill Global REIT’s 1Q 2010 income to be distributed was S$18.4 million, 2.0% higher than that of S$18.0 million in 1Q 2009. Distribution Per Unit (DPU) (post-rights) for the period 1 January to 31 March 2010 was 0.95 cents, 2.2% higher compared to the restated 0.93 cents1 achieved for the previous corresponding period. On an annualised basis, the latest distribution represents a yield of 6.88% {based on 56 cents close on 31st March 2010}

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20 lots gives me $190.

My Maths Equation to Increasing Networth!

To me, at my late twenties age, I find that to massively increase our networth, three factors are extremely crucial. They are:
(i) Income
(ii) Savings
(iii) Investments

The three factors above are all equally important. My mathematical formula for gaining networth is:

Gross Gain in networth = Income * Percentage Savings Invested * (1 + Returns on Investments) + Current Networth * Returns on Investments


*Edit: Percentage savings invested as suggested by LP.

Bought some more Aztech

I bought 19 lots of Aztech today after my late night review on it last night.

On hindsight, it was fortunate I managed to review it last night, to capture the panic sell today. I'm still cautiously optimistic about the prospects of this company.

Why 19 lots? Because I had 31 lots originally, and this top up my holdings to a nice round number of 50 lots, and an additiontal $4.56k was pumped in.

Aztech 1st Quarter Results

The Group registered an overall turnover of S$49.70 million and net profit of S$1.56 million for Q1 2010. Despite an increase in revenue from Electronics business, the Group saw a 26.5% decline in overall turnover compared to the same period last year mainly attributable to the lower revenue recognition for Materials Supply business after completion of phases I and II of the supply contract.

Want Success? Work hard for it!

Recent times, I have come across people who talked about getting out of the rat's race, who talked about being business owners employing "smarter people". They dream and talk lots about the concept of financial freedom and financial abundance, yet I have no idea why they believe that they can achieve so without working hard towards it.

In other words, they simply dream and believe that they can achieve it, but took no actions or little actions towards it. It really beats me...

STI Updates

We had some interesting developments for STI last week, especially on Friday.

STI broke new highs, and broke past the 3000 barrier, before some retracement now. Common technical analysis would tell that after breaking past a resistance, the chart would usually come back to test the resistance-turned-support region... and if succeed, will likely proceed to head higher.

Being Paid for your time?

I have to admit, I'm still stuck at being paid for my time. But while being paid for my time, I still harbour the thoughts of.... being paid by projects (or results) as well...

While high but unstable income (like tuition) is desirable, I believe the next stage would be project based work (on top of leveraging on others).

Time Bomb Ticking -- STI 3000

STI breached 3000 barrier as expected.

This bullishness was first detected during an EW recount earlier:
http://wealthbuch.blogspot.com/2010/02/sti-elliott-wave-update-bullish-bias.html

Then, with the updated count on 5th Apr, a target of near 3150 was estimated:
http://wealthbuch.blogspot.com/2010/04/sti-elliott-wave-count-update-5th-apr.html

Novice investment fund outperforms big guns

A testament to prudent fundamental investing.

Guess I got a lot more to learn from then... especially the sentence

'Benjamin Graham said you buy a company at two-thirds its 'net net working capital'. It's very stringent,' Mr Wong said.

You are the General of your money

We can draw many parallels between money management and management of an armed force. To me, the money we have in our hands is like our current troops.

The money that we are earning from active income is the additional troops we are recruiting.

WHY DIDN'T I BUY/SELL THIS STOCK!

HL Asia.... ARGH!!!
COSCO!!!! ARGH!!!!!!

WHY!!!??!! WHY DIDN'T I BUY THESE WINNERS AT THE LOWS!!!!
WHY DIDN'T I SELL THESE LOSERS AT THEIR PEAKS???!

Do you often get these thoughts?
I'm guilty of it at times. But I'm growing out of it.

Singapore Telecommunications Sector

Telecommunications

IDA mulling introduction of fourth mobile operator
Analyst: Jonathan Koh

Infocomm Development Authority (IDA) is considering parceling out the final fourth slot of 3G spectrum, which was not taken up during 3G auction in 2001 and was left unused for the past nine years. This could pave the way for IDA to bring in a fourth mobile operator.

My Personal Goal 2010 Updates (Quarter Review)

A quarter of 2010 has passed! The last time I reviewed myself was right after Chinese New Year in February.

1) Goal of achieving $1k average dividends per month, i.e. $12k dividends a year
I purchased 31 lots of Aztech and 45 lots of AIMSAMPIREIT at 0.215 since my last review. In addition, I have bought in another 60 lots of Saizen warrants with the intention to exercise the warrants in the near future, and sold 2 lots of Singtel at 3.12 to average down my 2 lots to 2.89.

Also, I have combined my investing and dividend baskets into one basket ==> long term basket.

STI Elliott Wave Count Update (5th Apr 2010)

STI achieved a new high today, with a certain degree of euphoria. It does appear that the 5th wave has commenced, but when it will end, I'm not sure yet. The bollinger band does look like it's closing up, signifying that the end of this 5th wave could be near, although not quite yet.

In my chart below, it's a repeat of the bullish bias wave count in an earlier post. The looming 3000 resistance looks rather insurmountable at first, leading me to believe we could finish the 5th wave before crossing 3000 convincingly. However, there's still the possibility that 3000 can be crossed. (Sounds like talking rubbish right?.... but this is a talk on probability.... :P)

STI Quick Technical Analysis (5th Apr Morning)

STI is at a new high finally... This satisfies my minimum criteria of wave 5 in an earlier post:
STI Elliott Wave Update -- Bullish Bias?

On the other hand, this new high might just be signifying an expanded flat, although it looks unlikely. I'm a little blur on why there are 5 waves down on the daily chart, then 5 waves up again. The only reason I could think of is that the mini waves on the daily chart for STI might not be accurate enough to be used for wave counting. It appears that the usage of Bollinger bands is more accurate for minor wave counts.

Saizen REIT Warrants Purchase

I didn't think I was going to update my portfolio so fast...

I loaded 60 lots of Saizen REIT Warrants at 0.075 today. The expiry date is in 2012, but I may convert earlier than that.

Noble Group Technical Analysis (31st Mar 2010)

This is just a follow up chart on Noble since my previous post...

The rising wedge has been broken with volume. And yesterday, Noble broke the 100 dma.

March 2010 Portfolio

March went past rather smoothly (or rather, stagnantly)

My portfolio changes consist of an additional purchase of AIMSAMPIREIT after some calculations of their yield. In addition, I will consider myself as having 1 bonus lot of Breadtalk at 0.37 since I have 5 to begin with.

As I progress along this journey, I've decided to combine my investing and dividends basket into one basket since they are basically quite similar. That means I will only have 2 baskets from now on: Long term holdings and Trading... And as time continues to tick, I'll be getting busier and busier, so I guess the amount of longer term holdings will increase more proportionately than any possible trading...