3 financial lessons to learn from iPhone 6 flipping story

now-later

In today's Straits Times article "Early birds get juiciest profits flipping iPhone 6", it was reported that "in just 30 minutes, finance manager Sky Hui made a cool profit of $4,000 from buying and re-selling three new iPhones." Interestingly, in this simple story, there are three essential lessons that you can learn to achiever greater financial success. Lesson #1: Successful investing is anticipating the anticipations of others How did Mr Hui do it? It was reported that he had … [Read more...]

Five reasons why you must define your investment goals

alice-cheshire-cat

We are all familiar with Lewis Carroll's story "Alice in wonderland". One day Alice came to a fork in the road and saw a Cheshire cat in a tree. "Which road do I take?" She asked "Where do you want to go?" responded the Cheshire Cat. "I don't know," Alice answered. "Then," said the cat, "it doesn't matter." Have you ever drifted through life aimlessly, wondering why your life lacks purpose and significance? That is because you did not bother to write down your goals. It is the same when it … [Read more...]

You Could Be Richer Than You Think

you-could-be-richer

Every year, more than $16 billion in dividends are paid out to investors. It was reported this week that there were $68.3 million worth of unclaimed shares and dividends still held in SGX, these belong to 83,000 investors. Among them, some 74,000 investors failed to cash their dividend cheques, amounting to $53.7 million in total. "In particular, one surprisingly forgetful person stands to be $1.2 million richer if he collects all his outstanding dividends." While the news may surprise many … [Read more...]

One Night Stand Investment

one-night-stand

I stumbled upon this interesting term  "One Night Stand Investment" from Investopedia.com today, it means "Buying a security with the intention of holding it for the long term, but subsequently panicking and selling it the following day." Investopedia further explains that "An investor sells out the following day typically because of bad news or a sudden change in long-term expectations". From my experience, the reality is just the opposite. Many investors buy a security with the intention … [Read more...]

Market Crashed! What should you do now?

Typical DIY Investor Behavior

Recently I wrote a blog "Is Cash the King now?", today I received a friendly call from one of my insurance clients asking how I was doing for the past week. This guy is a DIY stock investor, and I have never managed his portfolio, that probably explains why he is concerned about me. He probably thought my clients were cashing out. He couldn't believe that none of my clients are worried and some of my clients even topped up recently. Then he assumed I must be on the short side of the markets, … [Read more...]

Is Cash The King Now?

Straits Times Index 2008 to 2011

It seems scary enough by just reading the news headlines in the past week, when US Debt Ceiling Impact and Euro Debt Crisis still show no sign of relief. Aug 3, 2011 (Wed) - US Senate approves debt deal hours before deadline / STI weighed down by bleak US data Aug 4, 2011 (Thu) - STI plunges on global economic fear Aug 5, 2011 (Fri) - STI sees third straight day of losses, with no relief in sight Aug 6, 2011 (Sat) - STI falls 3.6% as investors flee markets / Large investors turn to … [Read more...]

Common psychological biases among Asian investors

Recently, Hubbis, a leading provider of content and online training for Asia's Wealth Management & Private Banking Industry, published a report The High Net Worth Guide to Wealth Management in Asia 2011. In one of the chapter, Understanding your biases, looks at the influence and impact of emotional and psychological biases on investors' investment decision-making, including insight on some of the most common ones, and considers how investors should tackle these. Given the volatile … [Read more...]

How information overload leads to bad investment decisions

In today's Straits Times, the article, "Investor sues UBS over US$1.6m losses", reports that a Taiwanese woman claimed bank told her US$2 million investment funds were protected where it was not. Of course it again turned to the argument whether the claimant was savvy herself or whether she could communicate in English when she signed the documents. Let's temporarily put aside the argument whether the bank has mis-sold the client; How can a investor lost 80% of the capital and then turned … [Read more...]