Me & My Money Series (Sunday Times)

[brattzz]

this is e most valuable lesson i learnt from the post
"I have little inclination for property investments and do not own any other property apart from the one I live in. In my view, properties here are too overpriced. In fact, property prices are eight to 10 times that of household income."

I think mah bor tan will counter his statement!

"WAT WAT!! it's afforable ok!" haha!

[memphisb]

It does not take a scientist or mathematician to figure out not to trust salesmen.

[Bibi]

Just my opinion, I usually don't trust or like agents who achieved so call million dollar round table. The only way to achieve that position must be selling products which fatten their wallets with commission. There is no way one can achieve that by just selling term and hospitalization plans.
He seems to imply he is savvy in investments but yet why did he invest predominantly in ILP policies?
One thing I do agree with him is to make big money, one must invest in penny shares during the worst of the recession. Invest in pennies that have withstand counts of recession and still come out unscathed after the recession. The only fear factor is the penny company decides to delist itself during those bad times.

I am going to give him the benefit of doubt after I chance upon a website about a person who also invested in ILP and has clocked 10% per annum for the past 10 years. His argument was ilp allows him to do inter and intra fund switches free of charge. Back then he didn't have much money to buy expensive blue chips so ilp was his alternative choice. He make top up of 1k every 6 months and he market time his move by rebalancing his portfolio.

[Musicwhiz]

I think 10% per annum is very achievable if you are savvy, but the long-term average is about 7-8% per annum, including dividends. (Correct me if I am wrong)

[wj888]

I am going to give him the benefit of doubt after I chance upon a website about a person who also invested in ILP and has clocked 10% per annum for the past 10 years. His argument was ilp allows him to do inter and intra fund switches free of charge. Back then he didn't have much money to buy expensive blue chips so ilp was his alternative choice. He make top up of 1k every 6 months and he market time his move by rebalancing his portfolio.

You have the website?

[mrEngineer]

I think 10% per annum is very achievable if you are savvy, but the long-term average is about 7-8% per annum, including dividends. (Correct me if I am wrong)

I will try to target around 12% per annum compounded over 15 years and I am still not a millionaire by my projection! It is almost mission impossible but the saying goes if you aim for the stars, you probably reach the clouds.

I wonder does everyone has an own personal target rate?

[kazukirai]

It is almost mission impossible but the saying goes if you aim for the stars, you probably reach the clouds.

Hey! What a coincidence. I subscribe to this saying frequently too. Of course, a couple years back it was more for grades. Now it's returns.

I wonder does everyone has an own personal target rate?

I used to go for 15%
My own track record has been much less though. But still good enough to prevent me from just putting it in index funds. Plus I like trying to figure out where a business might be going right or wrong.

[yeokiwi]

My personal target is around 10-15% but during some good years in the past 8 years, I did manage to get some "indecent" rate. These "indecent rate" normally happened when a high ROE penny stock in my portfolio had a stock rerating, company buyout or rapid increase in revenue and profit coupled with a PE rerating.

I like penny stocks simply because it is possible for penny stocks to go multibaggers. For blue chips, I think it is unreasonable to expect blue chips like SPH, SIA, DBS, Keppel or Dairy Farm to become 2 or 3 baggers during normal period.

Penny stocks also come with higher risks. I had a few of them that capsized

My humble opinion(may not be good).... when the investment amount is small, it is probably more profitable to go after high ROE penny stocks that are well managed and have a good balance sheet.
And hope that a few of them will turn out to be multibaggers.

High ROE->Good balance sheet->Increasing Revenue-> PE rerating-> Huat ah!!!!

[mrEngineer]

These "indecent rate" normally happened when a high ROE penny stock in my portfolio had a stock rerating, company buyout or rapid increase in revenue and profit coupled with a PE rerating.

I like penny stocks simply because it is possible for penny stocks to go multibaggers. For blue chips, I think it is unreasonable to expect blue chips like SPH, SIA, DBS, Keppel or Dairy Farm to become 2 or 3 baggers during normal period.

Penny stocks also come with higher risks. I had a few of them that capsized

My sentiments exactly. My portfolio was mainly pulled up by an almost triple bagger with 2-3 stocks of 50% capital gain. But at the same time, lost my pants on a S-chip and a supposed blue chip.

But I was lucky to pick that triple bagger when its cheap. Bought it because of high ROE. The other high ROE stocks do not have such lucky results. After hearing from your experience, reassures me the possibility of such luck happening again. lol

[ichiran]

Hi Yeokiwi, mrEngineer,

For the purpose of "post-mortem" learning, do u mind sharing the names of these multi-baggers u spoke about?