Investment History


Introduction


I began multiplying my money since 1993. Somebody once asked me why I am not rich by now, with all my investment successes. I have only three answers to that.



  • Until a fateful day in 2002, I did not have good personal monetary management. Whatever money I earned, I buy luxury goods instead of reinvesting them. Well, that one fateful day in was a Saturday of July 2002 (can’t remember which day!), I bought a book called Rich Dad, Poor Dad by Mr Robert Kiyosaki. I am forever indebted to him for pointing out why I am not rich. I have since changed my spending patterns.

  • Since when have you encountered a rich civil servant? I have been one ever since leaving high school in 1987. Only after leaving the teaching service in 2002, did I really put my heart into financial matters.

  • A rich person gets rich because he has learnt to allow his gifts to be used for many people. I only invested with my own money for myself. No wonder I am not rich. Talents are meant to be shared and used to bless others. In starting the HYIP, I hope to be able to bless others as well.


Investment History



  • My first investment in 1991 was a total disaster. I was young and totally ignorant of financial instruments. Upon the urging of a good friend of mine, I placed some $7,000 into commodities trading. I left the trading to the hands of the broker and lost all the money. It was only later that I learnt the significance of the term churning, an underhanded method whereby the broker kept trading even if you are losing, in order to earn your commissions. This was the beginning of my decision to learn about financial instruments.

  • I started studying seriously about stocks in 1993. It was also the year I began putting money into the SGX. I still remember some of the stocks I used to trade in – Vikay Industrial, Pertama, Heshe Holdings and SingTel. There were probably more, but I really could not remember. The bull run was moving crazily in the SGX during the year of 1994, and I decided to liquidate all my money in Sep 1994. I had a 173% profit, and sat relieved when the Oct 1994 crash brought curses and painful cries to many who lost their money believing that bull runs never end. I never re-entered the SGX since then, although I am still watching and planning my move even right now. Patience is important in trading and investing. Warren Buffett waited 20 years before making some of his moves.

  • The property market in Singapore was also heating up in 1994, together with the SGX bull run. The resulting crash only stopped the move of the property market, but did not bring it down, surprisingly. I bought a 1BR apartment in a good part of town for $54,000 in 1995. I managed to sell it in 1996 for $97,000 (79.6% profit). The property market began its move downwards in 1996, with anti-speculation measures set by the government.

  • In 1996, I bought a 3BR apartment for $124,000. Everybody wanted big apartment in those days, as they supposedly had greater resale value. My choice of apartment size was sneered as being silly by many who knew I could afford a bigger apartment. The market began its long-awaited correction in 1996, wiping huge amounts off the bigger units. I sold it in 2003 for $293,000 (136% profit) in a time when many were burnt trying to sell off bigger units bought at high prices. Right now, I am renting an apartment to stay in. Rents are at an all-time low, and I am waiting for my next move in the property market. Patience and control over greed is important in trading and investing.

  • As of the writing of this article, my money is invested in my Music company and stock options.


Conclusion


By now, you would have known what makes my investments successful (and in the case of 1991, unsuccessful). I will put them all down below, and trust that you will learn something from my successes and mistakes!



  • Knowledge is Power. It is also Money in the world of financial instruments.

  • Patience is important to make sure you maximise gains and minimise losses.

  • Control over greed will help you make wiser decisions.


Finally (and most importantly, I feel…but you are free to disagree), having an intuition for the various moves of the markets. This I dare not take the credit, but all honour and glory goes to God for being my Master, and for giving me the calling of a Steward.


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