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04-11-2012, 09:41 AM
Seems like in most of the interviews, the most expensive item is a car! And in Singapore, they are seriously over-priced - a $200,000 VW Convertible? Wow. Plus he also owns a BMW 5 Series - wonder where these people get the money to buy multiple cars. 
The Straits Times
www.straitstimes.com
Published on Nov 04, 2012
Striking gold after losing money
World Gold Council's Far East boss has no regrets about selling his first home at a loss
By magdalen ng
Selling the first property he bought at a substantial loss was the best decision businessman Albert Cheng ever made.
He had just graduated from the Chinese University of Hong Kong, tied the knot and splashed out HK$330,000 on a 395 sq ft apartment in Sha Tin for him and his wife, a teacher.
But the mortgage drained about half of their joint monthly income.
"I lived there for two years, and then I sold it at a loss, for about HK$280,000. I didn't want to suffer any more. Having half of our income gone was not sustainable," he says.
And while a HK$50,000 hit may not seem like a lot, it was a huge amount of money for the then advertising executive.
But life took a turn for the better shortly after he sold it around 1982.
Mr Cheng, who is managing director for the Far East at the World Gold Council, moved into a rented apartment which was more spacious and cheaper.
Opportunity also came knocking when the Royal Canadian Mint offered him a job to market its Maple Leaf Gold coins to banks in the region.
He moved to Singapore in 1993 with his wife and two daughters when he took up a job with the World Gold Council.
Mr Cheng, 57, says: "Life moves in cycles. Sometimes we have to lose something in order to gain something else."
Through his exposure to gold for work, he has developed a passion for convincing people to buy gold jewellery rather than costume jewellery, which has no intrinsic value.
He has also bought a gold necklace and bangle with the traditional Chinese dragon and phoenix design in anticipation of his daughter's wedding, although there are no plans as yet.
"I bought it in Vietnam a few years ago because I am afraid that by the time she gets married, I will not be able to find handmade, pure gold jewellery. Nowadays, all jewellery is made by machines."
Q: Are you a spender or saver?
I'm a saver.
I travel a lot for work, and on average, I am out of the country for 15 to 20 days a month, which does not give me time to spend a lot.
Most of my spending each month tends to be business expenses, so I save about 40 per cent of my income.
When I am overseas, and I see something that I like, I do like to reward myself.
I also like expensive "toys", or electronic gadgets such as the iPad and mobile phones.
Q: How much do you charge to your credit card every month?
Usually, it is about $3,000 to $4,000. If I go on a long-haul trip, that can go up to $6,000.
I use my credit card to accumulate points on most of my spending such as meals, but for small amounts, I prefer to use cash.
There is about $200 to $300 in my wallet all the time.
Q: What financial planning have you done?
I have about five term-life policies and I do not buy any life insurance products that have investment elements. I prefer to invest my own money.
My portfolio is divided into two pots. About 70 per cent is in property-based assets, and the remaining 30 per cent is in "callable assets", such as equity, funds and gold, which means that I can liquidate them relatively easily.
Half of my callable assets is in gold-related investments. I have gold bars, gold equities and even a gold trading account.
I am in the business, so I try to have a bit of everything, and I watch the market.
Q: Moneywise, what were your growing-up years like?
I was very thrifty in my growing-up years.
I come from a large family but we were not wealthy. I still remember my days of growing up in Hong Kong, sharing one Californian orange with my five siblings, sleeping on the floor of a one-room government flat.
However, I have never felt poor in my life as I always adjust my expectations based on what stage of life I am at and the circumstances I am in.
Q: How did you get interested in investing?
My first investment was actually a property in Hong Kong.
But after I joined the Royal Canadian Mint and joined the industry, I became more interested in investing, and the development of the gold industry in the region.
Q: What property do you own?
I have a 1,700 sq ft condominium apartment in the Holland area, which I bought for about $600 per sq ft in 2001. It has since doubled in value.
Three years ago, I sold my investment property, another condominium in Bukit Timah. I bought it at the height of its price in 1998 for about $1.9 million and sold it for a slight profit at $2 million.
At its worst, the value of the apartment was only about 60 per cent of the purchase price, and I was getting worried.
Luckily I could still continue with the mortgage payments as I (still had) a job.
Q: What's the most extravagant thing you have bought?
A new Volkswagen EOS sunroof convertible sports car that I bought this year for about $200,000.
I bought it as a reward for myself. I'm not a flashy person, so I won't consider a Porsche.
Actually, I was deciding between a Mini Cooper and a Volkswagen, but the former was too small, and my daughters wouldn't be able to sit comfortably at the back.
Q: What's your retirement plan?
I plan to travel to places that I have previously visited on business, but this time with my wife and without my BlackBerry and e-mail.
My company has purchased a pension fund, but I haven't really checked what the value is. There should be a few hundred thousand, combined with the savings and investments that I have, and the money in CPF.
I think I should definitely have enough to retire, as long as I don't lead an extravagant life.
Q: Home is now...
My condominium in Holland Road, where I live with my wife and children, aged 27 and 23.
Q: I drive a...
Sometimes my BMW 5 Series, but I usually drive my Volkswagen sports car.
songyuan@sph.com.sg
WORST AND BEST BETS
Q: What has been your worst investment?
It would be the first apartment that I bought in Hong Kong in 1980. While the apartment was 395 sq ft, the usable area was only 250 sq ft. It was tiny. I made a loss of HK$50,000 when I sold it, and the money was actually borrowed from my brother-in-law. Luckily, it was an interest-free loan.
Q: And your best?
It was the next property that I bought, also in Hong Kong, in about 1988. I bought the apartment in Tai Koo Shing for about HK$800,000, and sold it two years after I came to Singapore, in 1995. It fetched about HK$4 million.
The Straits Times
www.straitstimes.com
Published on Nov 04, 2012
Striking gold after losing money
World Gold Council's Far East boss has no regrets about selling his first home at a loss
By magdalen ng
Selling the first property he bought at a substantial loss was the best decision businessman Albert Cheng ever made.
He had just graduated from the Chinese University of Hong Kong, tied the knot and splashed out HK$330,000 on a 395 sq ft apartment in Sha Tin for him and his wife, a teacher.
But the mortgage drained about half of their joint monthly income.
"I lived there for two years, and then I sold it at a loss, for about HK$280,000. I didn't want to suffer any more. Having half of our income gone was not sustainable," he says.
And while a HK$50,000 hit may not seem like a lot, it was a huge amount of money for the then advertising executive.
But life took a turn for the better shortly after he sold it around 1982.
Mr Cheng, who is managing director for the Far East at the World Gold Council, moved into a rented apartment which was more spacious and cheaper.
Opportunity also came knocking when the Royal Canadian Mint offered him a job to market its Maple Leaf Gold coins to banks in the region.
He moved to Singapore in 1993 with his wife and two daughters when he took up a job with the World Gold Council.
Mr Cheng, 57, says: "Life moves in cycles. Sometimes we have to lose something in order to gain something else."
Through his exposure to gold for work, he has developed a passion for convincing people to buy gold jewellery rather than costume jewellery, which has no intrinsic value.
He has also bought a gold necklace and bangle with the traditional Chinese dragon and phoenix design in anticipation of his daughter's wedding, although there are no plans as yet.
"I bought it in Vietnam a few years ago because I am afraid that by the time she gets married, I will not be able to find handmade, pure gold jewellery. Nowadays, all jewellery is made by machines."
Q: Are you a spender or saver?
I'm a saver.
I travel a lot for work, and on average, I am out of the country for 15 to 20 days a month, which does not give me time to spend a lot.
Most of my spending each month tends to be business expenses, so I save about 40 per cent of my income.
When I am overseas, and I see something that I like, I do like to reward myself.
I also like expensive "toys", or electronic gadgets such as the iPad and mobile phones.
Q: How much do you charge to your credit card every month?
Usually, it is about $3,000 to $4,000. If I go on a long-haul trip, that can go up to $6,000.
I use my credit card to accumulate points on most of my spending such as meals, but for small amounts, I prefer to use cash.
There is about $200 to $300 in my wallet all the time.
Q: What financial planning have you done?
I have about five term-life policies and I do not buy any life insurance products that have investment elements. I prefer to invest my own money.
My portfolio is divided into two pots. About 70 per cent is in property-based assets, and the remaining 30 per cent is in "callable assets", such as equity, funds and gold, which means that I can liquidate them relatively easily.
Half of my callable assets is in gold-related investments. I have gold bars, gold equities and even a gold trading account.
I am in the business, so I try to have a bit of everything, and I watch the market.
Q: Moneywise, what were your growing-up years like?
I was very thrifty in my growing-up years.
I come from a large family but we were not wealthy. I still remember my days of growing up in Hong Kong, sharing one Californian orange with my five siblings, sleeping on the floor of a one-room government flat.
However, I have never felt poor in my life as I always adjust my expectations based on what stage of life I am at and the circumstances I am in.
Q: How did you get interested in investing?
My first investment was actually a property in Hong Kong.
But after I joined the Royal Canadian Mint and joined the industry, I became more interested in investing, and the development of the gold industry in the region.
Q: What property do you own?
I have a 1,700 sq ft condominium apartment in the Holland area, which I bought for about $600 per sq ft in 2001. It has since doubled in value.
Three years ago, I sold my investment property, another condominium in Bukit Timah. I bought it at the height of its price in 1998 for about $1.9 million and sold it for a slight profit at $2 million.
At its worst, the value of the apartment was only about 60 per cent of the purchase price, and I was getting worried.
Luckily I could still continue with the mortgage payments as I (still had) a job.
Q: What's the most extravagant thing you have bought?
A new Volkswagen EOS sunroof convertible sports car that I bought this year for about $200,000.
I bought it as a reward for myself. I'm not a flashy person, so I won't consider a Porsche.
Actually, I was deciding between a Mini Cooper and a Volkswagen, but the former was too small, and my daughters wouldn't be able to sit comfortably at the back.
Q: What's your retirement plan?
I plan to travel to places that I have previously visited on business, but this time with my wife and without my BlackBerry and e-mail.
My company has purchased a pension fund, but I haven't really checked what the value is. There should be a few hundred thousand, combined with the savings and investments that I have, and the money in CPF.
I think I should definitely have enough to retire, as long as I don't lead an extravagant life.
Q: Home is now...
My condominium in Holland Road, where I live with my wife and children, aged 27 and 23.
Q: I drive a...
Sometimes my BMW 5 Series, but I usually drive my Volkswagen sports car.
songyuan@sph.com.sg
WORST AND BEST BETS
Q: What has been your worst investment?
It would be the first apartment that I bought in Hong Kong in 1980. While the apartment was 395 sq ft, the usable area was only 250 sq ft. It was tiny. I made a loss of HK$50,000 when I sold it, and the money was actually borrowed from my brother-in-law. Luckily, it was an interest-free loan.
Q: And your best?
It was the next property that I bought, also in Hong Kong, in about 1988. I bought the apartment in Tai Koo Shing for about HK$800,000, and sold it two years after I came to Singapore, in 1995. It fetched about HK$4 million.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
