Me & My Money Series (Sunday Times)

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#31
The previous guy Brennan Pak set up a "Wealth Learning Centre". It was not mentioned if he conducts courses on equity investments, so it's best not to assume. Smile

As for this week's interviewee, yes he did write a book and perhaps one of the agendas of the interview is to help him sell more copies? Tongue
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#32
How come this Money and Me series couldn't get more interviews on ppl who did not conduct courses, write books, or sell some alternative sideline courses to public? The reporters are too lazy or clueless where to find?

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#33
Maybe we can introduce D.o.g to the reporters =)
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#34
I felt the same way. More retail investors and less salesmen and business owners.
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#35
In the spirit of sharing, I've attached a copy of an interview conducted by The Edge with Bobby Lim of Tai Sin Electrical. Lorenzo's placement of 33 million shares to Bobby and prominent investors caused quite a stir in Oct. In the article, there is also a long list of companies that he has invested in....


Attached Files
.pdf   The Edge Interview with Tai Sin Bobby Lim.pdf (Size: 549.93 KB / Downloads: 53)
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#36
(29-11-2010, 10:02 AM)ichiran Wrote: In the spirit of sharing, I've attached a copy of an interview conducted by The Edge with Bobby Lim of Tai Sin Electrical. Lorenzo's placement of 33 million shares to Bobby and prominent investors caused quite a stir in Oct. In the article, there is also a long list of companies that he has invested in....

Thanks ichiran for sharing this article. I personally have met Bobby Lim a few times while attending Tai Sin AGM. He is a humble man who is very careful with money (ie spending). His son, Bernard Lim, is beginning to play a bigger role in managing the company and I hope he has inherited some, if not all of his dad's good habits.
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#37
Yes in the interview he mentioned that he still uses a cheap pen, though he can easily afford a more expensive one.

What I am more interested in is whether the list of companies in the article has any investment merits. Some of them such as Hln Tech, I will not touch! Big Grin
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#38
Another (over) leveraged person! The article claims she "owns" 53 properties but if you read carefully, just 10 are fully paid-up. This would imply she is under significant leverage, and is using the rental income from her tenanted properties to service her loans (and of course, her BMW and Porsche as well). I personally think this is a very risky way of doing things - some of the property is in far flung locations like Philippines! Once the properties cannot be tenanted out, you can fall into -ve cash flows very quickly even though you have a 1-year's buffer. Not to mention the luxury cars also drain significant cash flows...

I still maintain that I prefer Brennan Pak's lifestyle as he has been one of the most prudent so far (zero leverage, no cars, just save and invest). But to each his own...Tongue

Dec 5, 2010
me & my money
11 YEARS AGO: Nearly bankrupt
NOW: Owns 53 properties


Co-founder of training firm is an astute investor in real estate, gold and shares
By Lorna Tan, Senior Correspondent

As part of her work, Ms Wendy Kwek, managing director of training firm Executive Directions, conducts public seminars advising investors on all aspects of property investments.

Ms Kwek, 40, walks the talk by investing in 53 properties in Singapore, Malaysia, the Philippines, Hong Kong, Australia, Britain, Canada and the United States. Some are co-owned with friends.

Out of these, 23 are generating a monthly rental income flow of $45,000. The rest are undergoing construction. Ten of the properties are fully paid up. She also invests in gold and shares.

It is hard to imagine that about 11 years ago, Ms Kwek was close to bankruptcy when she was unable to meet the monthly payments for her total outstanding loans of $600,000.

Back then, she had left Federal Express (FedEx) and was a freelance sales consultant with a training and consultancy firm. She was making good commissions of $250,000 within six months, but was not yet fully paid by the firm when she over-committed herself to a BMW and a condo.

Her financial trouble started when the firm refused to honour half of the commissions, she claimed.

To clear her debts, she sold the car and condo and cut down on her spending.

That was when she decided to be her own boss so as to have full control. In 2000, she set up Executive Directions with business partner Jerome Tan with just $52. That was enough to buy 20 files and a three-line newspaper advertisement to recruit sales people to market seminar events.

The firm made a profit of $50,000 within two months of operation. Now, it has 10 staff, and current yearly turnover is about $7 million.

Besides giving pointers on property investing, the firm offers programmes on stock investing, entrepreneurship and public speaking.

Ms Kwek graduated from the National University of Singapore with a business administration degree in 1992 and worked as a purchaser at Safe Superstore till 1994.

She left to become an executive search consultant at a recruitment firm for a year, before joining FedEx as a regional sales trainer from 1995 to 1999.

She is married to Mr Joey Poh, 39, who is Executive Directions' business development director.

Q Are you a spender or saver?

I used to be a spender when I was in the corporate world, spending more than I earned.

But after starting my own business, I learnt to become more resourceful and financially more disciplined as cash-flow management is crucial in business.

Within two years of starting my business, I began investing 10 per cent of my income, and slowly moved it up to half of my income.

As my business and property portfolios grow, they generate more positive cash flow monthly to take care of my living expenses. I now invest almost 80 per cent of my monthly income.

Q How much do you charge to your credit cards every month?

I charge about $3,000 a month for my personal expenses.

I also charge a lot to my credit cards for business expenses such as the cost of renting seminar venues and hotel function rooms.

I always pay my bills in full as I do not believe in paying 24 per cent interest per annum. I also always get my credit card membership fees waived.

Q What financial planning have you done for yourself?

Besides my investment properties, I have a six-figure sum invested in stocks. They are mainly blue chips such as SPH, SGX, SMRT and Genting. I select stocks based on the firm's fundamentals and track record. Some of the stocks are strictly for dividends and some for capital gains, so I look at the potential projected income that can be paid as dividends or capital gains.

In January this year, I invested in gold bars when gold was trading at US$1,120 per ounce. I am also covered with life insurance and mortgage insurance.

When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.

Q Moneywise, what were your growing-up years like?

I come from an average family and I have a younger sister. My mother was a housewife. My father was a police officer and his take- home income was on average $850 a month.

We lived in a three-room HDB flat in Ang Mo Kio for the first 30 years of my life. My dad was a gambler and we had to struggle when we were young. Sometimes, we had loan sharks visiting our flat.

I told myself that I must learn to be wise with money.

I paid my way through university by taking a study loan and giving tuition. My parents now live with me. My sister is married and in Ohio, in the United States.

Q How did you get interested in investing?

When I was 21, I realised that I really loved investing. So I cultivated it by studying technical and fundamental analyses of stocks from books and later by attending many courses.

I have spent about $200,000 on my personal development, learning about business and investments. This includes a 'Money and You' programme conducted by the Excellerated Business School in Malaysia, and leadership programmes by success coaches Anthony Robbins, John C. Maxwell and Robert Kiyosaki in Singapore. These programmes have paid me huge dividends.

For real estate, I invest across the different property classes. The reason I invested quite substantially in industrial properties recently is that it is a less understood and undervalued asset class with good growth potential.

The rental yield is easily twice that of the residential sector and I tend to be able to secure leases that are more long-term.

Q What properties do you own?

I realised from attending the personal development courses that property is one of the best ways for an average person to accumulate great wealth.

I own a terrace house at Jalan Kayu; an HDB flat near Jurong Point; five units of TradeHub 21 light industrial property in Boon Lay Way; two light industrial units of Northpoint Bizhub; a 1,600 sq ft HDB shophouse in Yishun; and two units of Midview City light industrial property at Sin Ming.

My overseas property investments include two office units at Bangsar in Kuala Lumpur; six condos in KL; a condo in Penang; 19 properties (including freehold carparks and student accommodation) in the Philippines; one property in Melbourne; and seven properties in Britain. I also have five pieces of land in Hong Kong, the US and Britain.

Q What's the most extravagant thing you have bought?

My hubby and I bought a white Porsche Boxster for more than $250,000 in August to celebrate my 40th birthday and my achievements so far.

Q What's your retirement plan?

I don't intend to fully retire, I think it will be very boring.

I want to continue doing what I'm currently doing for the rest of my life as it is more meaningful to be able to add value to people's lives.

I believe Joey and I will need about $10,000 a month in our golden years. By then, everything would have been paid off.

Currently, just the rental from four properties is more than enough to pay for the monthly instalments for my landed property, Porsche and BMW.

Q Home is now...

A 3,300 sq ft, 31/2-storey terrace house at Jalan Kayu. The land area is 1,630 sq ft. We bought the property brand new in March last year for $1.5 million and it is now valued at more than $2 million.

Q I drive...

A white Porsche Boxster and a silver BMW 318.

lorna@sph.com.sg

Liquidity crucial

'When investing in properties, it is important to know how to leverage. As a personal rule, I maintain a certain level of liquidity by having cash reserves that are more than a year's expenses. This acts as a buffer even if my properties go untenanted.'

MS WENDY KWEK, managing director of training firm Executive Directions

--------------------------------------------------------------------------------
BEST AND WORST BETS

Q My worst investment to date...


In 2004, I placed a RM5,000 deposit in a residential project Nas Pavilion, next to Sungei Wang and Lot 10 in Kuala Lumpur.

The developer abandoned the project a year later and I lost my deposit. It was a good lesson. I learnt the importance of evaluating the developers' reputations before entering into any deal.

Q My best investment to date...

In 2006, I invested in two industrial property units, each 1,500 sq ft, at TradeHub 21.

I bought them for $300,000 each and the rental income per unit was $3,000 a month, which worked out to a rental yield of 12 per cent.

I sold them for $520,000 each in 2008 and last year.

This year, I bought another five units at an average price of $450,000 each.

The current rental yield is 8 per cent to 10 per cent.

The current value of each unit is about $525,000.

My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#39
I wonder how she manage the properties if they are in different countries.........by proxy, friends maybe...........but still interesting
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#40
wow this is amazing...even a poor student from philippines she also wanna squeeze the juice out from the student accommodation..
sometimes i seriously does she know she is depriving others of a roof or adding unnecessary pressure to the property prices?
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