30 June 2011

Think Creative, Start Smart, Dig Hard

Today I just met up with my fellow friends in Malaysia. They shared with me that the finance business in Malaysia is getting better this year. One thing that reminds me too is that, a good system with strong foundation is definitely needed to support our huge client base so that we can grow our business in long run.

Can JB Sentral II Terminal similar to TBS (Terminal Bersepadu Selatan)?

Recently I visited KL. I took a bus from JB - Skudai to KL and arrived at Terminal Bersepadu Selatan (Bandar Tasek Selatan Terminal). The first time I reached there I was 'WOW'.. The environment there is quite impressed and was like an airport! The terminal is well linked to KLIA as well as KL City. It drives me to think of the future JB Sentral II terminal which is targeted at Kempas area.

Some of my friends already surveyed Kempas area and one of my friends told me that his shop that he bought at 800K already rise to 1.2M. Pretty good huh. Well, I still think that there is a potential for Iskandar Malaysia to grow further if and only if more foreign direct investment comes in.

Nevertheless, with all the infrastructure in place (Connection of Rapid Link Service from Woodlands to JB to Kempas), I believe that JB Sentral II Terminal would be functioning well. (Government, please make JB Sentral II to be connected to Senai Airport too!)

28 June 2011

New Updates on Iskandar Malaysia

As a Malaysian-Johorean and Singapore PR, the most happiest thing that I am glad to see is that, the improvement in relationship between Singapore and Malaysia. From TODAY newspaper, it is more convenient for Singaporean and Malaysian as well as its travelers to travel in between both countries.

27 June 2011

Property Investment - Cash Flow Games

In CFA Level II, we learn about the property investment. Basically the concept of property investment is  the cash flow as well as ROI. In this post, I would like to illustrate in more detail on the cash flow movement in the property investment.

25 June 2011

Risk Management (Insurance) - Important to married couples

Today I just met up with a financial adviser from company A - tied agency in Singapore. He was quite a nice guy for treating me a cup of coffee at Coffee Bean. He told me that Aviva just started to have their own agencies since few years ago and his team just joined Aviva as tied agency few months back. They signed an agreement / contract with Aviva for 4 years staying there. It is too bad that I didn't ask in detail on the reasons why his team jumped from company P to company A.

During our 1-to-1 conversation, he requested my financial figures such as

24 June 2011

Why Managing Cash Flow is So Important to Your Investment Process - Part 7

In post 6, I have briefly mentioned that CFI, CFF and CFO is a very important cash flow in your investment process. Hence you will have to master how to mange those 3 cash flows in order for you to grow your investment portfolio in long run.

The details of CFO, CFI and CFF in our investment process would be explained in details in this post.

23 June 2011

Time * Investment Growing Speed = Investment Return

Stupid, It's growing speed that determine your investment return in a long time frame!

Too many people especially youngsters are telling me that they do not have enough investment capital to start with. However, in my opinion, time is money. In short, it is 'Time * Investment Growing Speed' that determine your investment return in a long run.

Why Managing Cash Flow is So Important to Your Investment Process - Part 6

In Business, we have a cash flow statement to show us three major parts:

CFO = Operating Cash Flow
CFI = Investing Cash Flow
CFF = Financing Cash Flow

I will explain one by one in our investment portfolio.

22 June 2011

Why Managing Cash Flow is So Important to Your Investment Process? - Part 5

In Part 1 - Part 4, I have explained the reasons why managing cash flow is important to your investment process, now I continued with the cash flow in between the circles - E, S, B and I.

Below are the cash flow movement in between 3 circles that I mentioned in Part 3. You can have a look on the cash flow movement below. The cash flow can be used in between the 3 circles so that a cash flow can be generated and used from / to any circles and remain healthy.

Why Managing Cash Flow is So Important to Your Investment Process? - Part 4

In my previous posts (Part 1, Part 2 & Part 3), I have explained the reasons why managing cash flow is very important to you. In this post, I shall elaborate more in how the cash flow flows in between E, S, B, I.

In part 3, I mentioned that being in at least 3 circles would assist you to avoid any big impact in recession period. It is like a chair where you must have at least 3 legs to support you to sit comfortably. So how does the cash flow flows in between this circles?

21 June 2011

Why Managing Cash Flow is So Important to Your Investment Process? - Part 3

From my previous posts - Part 1 and Part 2, I have explained the reason why I think that managing cash flow is important to your investment process and I created a spreadsheet to show you that finance ratio to guide you in monitoring your fiance ratio / strength so that you are sleeping well during the recession and fully utilize it when the market turns uptrend/downtrend in one day. Here I am illustrating to you how cash flow should work.

20 June 2011

Why Managing Cash Flow is So Important to Your Investment Process? - Part 2

If you haven't read part 1, you can go from the link here.

As cash flow is very important, I have done a spreadsheet, clearly state out my balance sheets item, including Long Term Asset, Long Term Liabilities, Current Assets, Current Liabilities etc. Let me illustrate it to you as below:

Why Managing Cash Flow is So Important to Your Investment Process? - Part 1

From my previous post, as large portion of my portfolio is in property (as well as the liability), my main idea is to leverage on the power of the mortgage loan (You are able to take up to 80% loan for your 1st and 2nd property purchase in Malaysia but you cannot do so in Singapore Property, as currently Singapore government reduced the loan-to-value ratio to 70% for 2nd purchase) to build another property portfolio (or I can say leveraging portfolio) which is quite different from my equity portfolio that I am mainly invest in it after deducting the emergency fund. So now the question is, why managing cash flow is so important to your investment process?

I believe majority of the investors would agree that long term investment is suitable to property investment, as this is tangible asset and most of the female investors would love moderate return yet minimal risk (after doing some homework, we can conclude that if you purchased a property in correct location in correct price, you have higher possibility of enjoying a reliable income). However, as your investment portfolio now consists of the loan (which means that you have to make the interest payment to the mortgage bank), you must be very careful of managing your cash flow to avoid your invested property to be in the auction list one day later after you found that you are not able to produce enough cash flow for your interest payment.

19 June 2011


YTL is one of my favorite companies listed in Bursa Malaysia. The shareholder fund grew an average 20% a year from 1980s to 1990s. As it is very 'expert' in corporate finance that it actually employ a lot of warrants / convertible loans / listed in different stock exchange etc, however I still believe that the reasons why it can grow its business during 1980s and 1990s is mainly because of its good relationship with government. This was known when I read from a newspaper that a lot of government high ranking officers attended YTL's current MD's wife's funeral.

Back to the topic - I actually bought a start pack (minimum RM 30.00). Since it is automaticaly charge me at minimum RM30.00 per month, hence I bought another gadget (mobile broadband - similar to Huawei modem) at RM99.00 and tested out at my home. So far YES coverage is covering my area (which means that my Kampung is actually is still not a very 'kampung' area), I did a speed test run.

During peak hour (evening time), the download speed is about

18 June 2011

My Portfolio Ratio Analysis

As my portfolio (including loans) is reaching

Singapore’s Property Market Headed Towards a Perfect Storm?

source from: http://sg.finance.yahoo.com/news/Singapore-Property-Market-cnbcwp-3875703083.html?x=0

From what I read from Singapore Yahoo Finance, I truly understand the current Singapore property market will be in another down cycle and hit the low at 2013/2014. So now I am waiting for the time to come so that I am able to purchase property in Singapore. 

For those first time buyers, please be patience so that you are able to purchase property in a cheaper price as Singapore government is now increasing supply to property market and it will further reduce the property price or COV. So, now it's our time to save money and wait.

'When a country registers a 15 percent growth rate, as Singapore did last year, there is bound to be a lot of the feel good factor going around. And Singapore's housing market is cashing in on this big time -- prices have rebounded 50 percent in just two years, according to the Urban Redevelopment Authority, and cooling measures by the government have done little to calm them.

17 June 2011

Good News for those who are traveling in between JB and SG!

Today morning I was shocked to see the newspaper - Zao Bao that the proposed Thompson Route will be completed within 7 years. More exciting part is that, the proposed MRT route will be connected to JB (Perhaps Tanjung Puteri and the terminal is at Kempas which is more near to my hometown - Kangkar Pulai).

As travelers who travels in between JB and Singapore, it is a very good news to us. Peter Lim, ex-remisier in Singapore just acquired a land near to Stulang Laut and proposed to build a healthcare center. I believe it is time Iskandar Malaysia Authorities to build more facilities in this area to benefit both Singapore and Malaysia citizens.


On the other hard, we also see the declining in sales of private properties. It is a very good sign to us

Malaysia Listed Companies' Financial Result Quick Shot

Dear readers,

I have created a blog which I will keep on updating the Bursa Malaysia listed company's financial result.

I hope it can help you to have a better reference when you are making investment decision on stocks in Malaysia Market.

16 June 2011

Singapore Listed Companys' Financial Result Quick Shot

I have created a blog which I will keep on updating the SGX listed company's financial result.

I hope it can help you to have a better reference when you are making investment decision on stocks in Singapore Market.

Financial Planning Tips for Young Working Single Guys

When I was in early 20 years old and started working as a rookie, my salary was considered as low as I was not a lawyer / accountant / doctor. However, due to the lower living cost, I was able to save the money. The tips which I can think of for youngsters are:
  1. Rent a cheaper room if you do not own a house in your working country.
  2. Buy a house when your EPF or CPF has sufficient amount. Do not buy a big house if its purpose is for your own living purpose.
  3. Do not buy a vehicle if and only if your work does not require you do buy a vehicle. It can save a lot of money as a vehicle can depreciate in value for quite a lump sum amount a year. You can consider to buy a 2nd had car with low mileage. 
  4. Save at least 10% a month. Invest it at least twice a year as it is similar to

15 June 2011

Page View Breaks 10K within 3 months

Thank you everyone for supporting my blog till today. I would like to thank my parents for giving me continuous support especially in finance industry. I would also thank my friends to spread my blog out to other people. It gives me motivation to write more high quality articles.

Summaries of my posts here:

Shares: 24
Investments: 38
Property: 12
Savings: 2

Going forward, I would like to share with you my thought on companies on weekly basis, as well as my thought on investment philosophy. If you are interested in online business, welcome to my other blog - http://jackphangonlinebusiness.blogspot.com. If you would like to view Malaysia Investment Bloggers Update, you can go to http://malaysiainvestbloggers.blogspot.com

For those reader who prefers Mandarine, you may go to my another Mandarine blog - http://tian-ya-ren.blogspot.com.


14 June 2011

ROEG - My thought on it

In my previous post regarding ROE, I always emphasize the earning power a company has in order to enjoy a sustainable grow in long term. You may refer to my previous posts on ROE to know about more on it.

Today, I would like to share with you my thought on ROEG (ROE Growth).

ROEG is similar to CAGR, except that I have linked the growth factor with the management performance and normalize it so that it can be compared among the peers. Please do remember that a grow in earning must be linked together with the risk involved.

If a company have 0% ROEG for quite a long time, it means that the company's competitive position in the industry is not changed much. Hence, we would like to know about the ROE of the company. If ROE is high and constant, means that the company has enjoyed the competitive edge for quite some time. For this type of companies, I would prefer to hold it for a long time.

In Residual Income Model, ROEG will not be positive for a long time. Hence, if I realized that a company having a positive ROEG for more than 3 years, I would like to investigate further on the reason why the company can achieve such a good result. It could be due to the reasons:
  • The company is in a growth industry. For instance in Malaysia, Glove Industry is expected to grow 10% constantly for a period of time.  Top Glove was once enjoyed high ROE AND positive ROEG for a period of time.
  • The company has a very competitive management that can grow the business. For instance, CIMB is expanding its business mainly in investment banking in South East Asia region. Maybank also acquire Kim Eng to expand its network in Thailand, Singapore and other countries.
If a company is having negative ROEG, then I will expect the company growth is slowing down and has lose the competitive edge against its peer or the whole industry is having a down time.

Anyway, we still require in depth analysis on the company so that we can have broader pictures on the company's movement.

13 June 2011

Some thought on Singapore STI

Singapore STI Index has been sidelined for quite a while. From economy point of view, the recent unexpected economy growth brings Singapore Dollar to a new high against US Dollar and other currencies. We do expect that Singapore dollar will continue to appreciate to combat with its more than 4% inflation rate which mainly comes from Property / Foods. 

We expect that STI Index will continue to sideline for these two months until further re-catalyst. However, do remember a theory that most of the investors/traders/speculators will have their own summer break. So, we expect there will be a short term rise coming when the summer break comes to the end.
Posts/Page you may interested:

12 June 2011

Savings + Investment = Financial Freedom

Everyday is like the Sunday. You can choose what time you wake up, what time you can go out to either church / temple or shopping, what time you can do the things you like to do (provided it is regulated by law). 

I have several friends who achieve financial freedom is living like what I mentioned above. But how do they make it? How is their lifestyle? What make them success in financial freedom? 
As a human beings, we have a choice to live better, and be a better man. I always believe that be a hardworking man will make you not be struggled of the hunger. Nevertheless, I would like to share with you a story which I read from a book (The Richest Man in Babylon):

George S. Clason wrote this timeless classic in 1926 and it’s based on stories, parables and clay tables dating 4,000 to 6,000 years ago from the ancient civilization of the Babylonians. It goes on explaining the simple and effective laws of how to handle money, which show the path leading to improved personal wealth. The people of Babylon discovered this path to be attainable by anyone and the same laws are just as true and just as easy to grasp to this day. This is the book everyone ought to read no matter what your previous knowledge and experiences in financial literacy are. So if you’re troubled by the stringency of a lean purse, start by listening to the words of Arkad, the richest man in Babylon.

The main concept of this story is to put aside at least 10% of your income to a saving funds.

11 June 2011

BIntan - Economy

I am writing this post when I am preparing to set off to Bintan Island.

Let me share with you my thoughts on Bintan Island. Bintan Island is a small island located at the south east of Singapore. It belongs to Indonesia however we can use Singapore Dollar to buy and sell the stuffs there. Because of this reason, quite a number of Singaporean like to enjoy the vacation here. 

Tourism and service industry contributes large portion of economy in Bintan Island. Many tourists who visit South East Asia, especially in Singapore would also like to travel there. Many hotel / home stay are located near to beach. I would say this is a lovely island.

We can go to Bintan from Singapore through jet. We set off from Tanah Merah Ferry Terminal in Singapore and reach the terminal in Bintan in around 1 hour. We would like to share with you more once I reach there.

Related Posts:

10 June 2011

Pick the stock you are most comfortable with

As contrast to Fundamental Analysis and Technical Analysis, I am an investor who likes to invest in shares with I am most comfortable with.

The reason is because I like to hold for a stock for a long term period. If you are based on Technical Analysis, it teaches you to sell a stock when a signal appears. However, it doesn't tell you why the signal appears and you have to figure it yourself. It could be due to a market sentiment, or it could be just a movement by a butterfly (Random Walk theory).

So, i f you at fundamental analysis, it will teach you the characteristic of risk & return. However, from Graham's opinion, we cannot judge a stock or a portfolio by risk & return characteristic. We should judge a stock based on how familiar we have for the stock / portfolio we own.

This comes from the perspective that we are doing a business with the other stakeholders in the company. For example, some people do not like to invest in a small cap size company which is controlled by a family, some do not like to invest in gambling sector, some do not even like to invest in cyclical sector due to their risk appetite. Some cannot sleep well if they invest in shares market. Some likes to invest 100% in stocks without any penny left in his bank account.

So, my experience tells me that, if you want to invest in long term and achieve a very high return, please try to do more homework and pick the stock you are most comfortable with. O course, provided your intention is to be a long term investor who wish to achieve a great result from holding your stock for a long time.

Posts you may interested in:

09 June 2011

Mah Sing Updates - 8 June 2011

Mah Sing recently announced the news on the new issues of securities.
(Source: http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/all/16B5E105F600181A482578A9003702F9/$File/Final%20salient%20terms%20and%20conditions%20of%20the%20Bonds.pdf)

Based on my calculation, Mah Sing can raise another 290M from this issue of callable convertible bond. The par value of the bond is 325M and the issue price is 89.07% from the par value. As this is 3.25% coupon 7 year bond and paid half yearly, so the Annualized Yield is around 5.13%.

As the bond can be converted to new shares, so the value of the bond can also be calculated using the market value * the conversion ratio. If we give the assumption that the conversion ratio is 1, then the value of the bond is RM0.89+RM2.09 = RM2.98.

However, as the bond holder can enjoy the 5.13% yield, it does not necessarily

08 June 2011

REITs - What is REITs and how we can profit from it

Real Estate Investment Trusts (REITs) is a normal term in investment world. However, it seems not a very famous investment tools among investors, especially for those who invest through broker firms.

It is similar to MBS, but is in equity form. For example, a company would issue the shares to investors to invest in its. Around 90% of the net profit will be contributed back to the investors. As you can see, the risks involved is the vacancy rate as well as the quality of the company management in order to manage the commercial buildings as industrial buildings. 

 There are certain pros and cons on the REITs:

  • Normally REITs are listed in stock exchange. It provides a great liquidity to investors to purchase and sell in a very quick time with limited cost involved. 
  • Normally there is rules and regulations to ensure that REITs listed in the stock exchange are in good form from the corporate governance perspective. 
  • The tax rate treatment for the dividend generated by REITs

04 June 2011

Creative Strategy To Achieve Competitive Advantage for the Business

In this competitive market, a number of companies are competing with each others. How does an enterprise try to generate more profit in the market? They may try to implement a creative strategy to allow them to do so.

There are three ways:
  1. Altering Firm's Existing Position - A firm can improve its attractiveness through its choice of competitive strategy. It can be done by reducing Customer Power (direct sales), Supplier Power (using standardized parts that can be sourced from many vendors), Substitutes (providing more features), Threat of Entry (Raise barrier to entry - increase fixed cost), Rivalry (avoid price wars and focus on differentiating products)
  2. Exploiting Changes in Industry - Examples: Forward or Backward Integration applied to Top Glove which acquired land to produce latex, External forces

02 June 2011

It is not as hard as you thought

It is not as hard as you thought on investing. Perseverance and passion make the difference.

Yesterday I just read a book titled 'You can be your own boss @ 2+ Years Old'. In the book, the author mentioned that actually it is not as hard as you thought on opening up a business. The author mentioned that Asian seems like to make the youngsters afraid of opening a business by telling them that it is very hard to do your own business. There is a lot of uncertainties and you could not able to tell whether this is a success or failure.

I still remembered that the feeling when I failed my industrial training and forced to extend my university life. But then when I looked back, I found that this is actually a very good experience which not many people can 'enjoy' it. The benefit of this failure is I met a very good and kind lady who didn't mind to share with me how to write a good programming. I have more time to read in stock market as well as participated in it. This period of time (year 2003-2005) was my golden time to acquire more knowledge in investing, especially when I was in Cari and learn to read news from KLSE website (BursaMalaysia previous website).

After I knew that my eventual path is to be in financial industry, I made a
bold decision by quitting a job without a new job offer. Luckily I got the Bursa Offer just after the Chinese New Year break. This is another major change in my life. I got more chances to study quite a number of books in Bursa Malaysia library located in Bukit Nanas, near to Puduraya, Kuala Lumpur.

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