Wednesday, January 2, 2013

Millionaire Investor



How to become a millionaire investor without paying thru your nose ( I mean >$1,000 course) for a investing course.

Step 1) Watch this.



Step 2) Read this.
The Intelligent Investor - Benjamin Graham

Step 3) Attend SGX Academy courses that have the same content as other commercial courses at a fraction of the price.

SGX Academy courses are quite comprehensive if you are a beginner and want to know more. I highly recommend going. I've attended some previews and I find it good.

Step 4) Follow some blogs that you think make sense. Createwealth888 and AK71 are the ones that  make sense!

Step 5) Read more books.

Step 6) Setup your investment policy and Take ACTION!

Disclaimer : The millionaire investor was just to entice you to read.. lol.. My circle of friends is small but I have seen more millionaires from property investing and I've seen none from stock investing. Of course, there is a time for everything. Property in Singapore seems limited in capital appreciation for these 5years. Probably Stocks will be taking over.

12 comments:

RayNg said...

DIY is okay. Knowledge can be self taught but what you lack is the experience. So, it will be good if you find successful mentor to hold you hand while you're on the job training. ��

Wealth Journey said...

True. If you can find someone who is experienced and successful.

A lot of millionaire trainers out there. But please go and ask them how they got their 1st million. Is it thru' their business, their course or thru' investing in stocks.

Wealth Journey said...

But i agree with you. Most people fear losing money in stock market and it is wise to have an experience hand to guide you.

So, this is the niche the trainers are trying to fill.

CreateWealth8888 said...

I thought it was after some big losses, some people don't mind paying $X,XXX for guiding hand, mentoring and membership to exclusive forum and chatroom.

Wealth Journey said...

Probably some are like that.
I've attended quite a few of these seminars.

What I gleaned off the profile are newbies who have not started investing but want to.

RayNg said...

What I mean Sucessful Mentor is who had good track record in Equity Investment. He/she may not be millionaire yet, but had shown consistent profit over the years.

I am not refering to those 'Mentor" or trainer who has no or inconsistent track record and his/her wealth is mainly come from conducting seminars.

Wealth Journey said...

RayNg,

Agreed on your point. :)
That's why I am watching cw888 blog. PHD in stock market. hehe

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Anonymous said...

Hello wealth journey,

I am a new reader and I read your blog with interest. I am in my early thirties and made my first million sgd in property (sg). Have made small amounts from stock, but pretty much from blue chip USA companies and I trade very infrequently. My returns from stock is pittance compared to those from my properties. In recent years, I have sold off all my investment properties, except for my residence. Do you think I should just sell my residence, if I take the view that the property market is peakish already. I will have total cash position of around 5m sgd if I sell my residence. I plan to buy a house when there is a correction, without a loan, hopefully. What are your thoughts?

Wealth Journey said...

My own thought is never SELL your place of RESIDENCE, unless you are either upgrading or downgrading. There must be a replacement of sort(Cannot RENT).

In your case, if you really feel the market is peakish, you can restructure your portfolio or reduce your exposure by downgrading.

Example, if your place cost $2.5mil and 1830sqft in D15, you might consider downgrading to a $1.5mil 1500sqft condo in more suburban areas. So you will reduce your total $$$ exposure in a property and still take some money out.

This might need a little bit of luck now since there must be a taker for your 2.5mil property and at the same time you found yourself a nice home for $1.5mil.

Alternatively, just stay put in your place since you must have bought it at a cheap valuation? So a crash might not even affect it and so why bother. Its your home, not an investment property.

Anonymous said...

Thanks for replying, appreciate your views on my situation. I do find my landed home too warm for my liking. It is a west facing house, so it is not ideal, although we have done it up nice. I have the intention to sell it, then buy back in the same area when the market further corrects. If I can't, then I would probably downgrade but buy back in cash without leverage, depending on the interest rates then. Currently, we have too much equity sitting in the house, and stuck with a loan to boot. Loan about 1m, equity 2m. Bought at 3m, price risen to 5m. Within 3 years. Cash position 1m. If I get out of this less than ideal property, I would have total cash of 5m. I wouldn't mind renting a two bedroom condo for a year or so, and find my next landed slowly. Hopeful to get a better facing house at cheaper price. Assumption is landed prices would drop.

Wealth Journey said...

Hmm.. Ok.
In your cash, basically all your networth is tied up in that piece of land. LOL. I can understand the intention of not putting too much in 1 egg. But still, I think when you sell your place of residence, you need to immediately replace it(and not rent). Anyway, if you do sell, welcome to the league of people with investable assets over $5mil. There are plenty in singapore and we are now the ikan billis of the HNW world. lol.

Usually, for this circumstance, we will ask the bank to draw out the excess equity from the landed and go invest it in something.

Example, your $5mil is valuation. $2mil is previous downpayment and $1mil loan. In that case, if you want to be conservative in your leverage, you can draw out the excess $2mil in PROFIT.

Assuming $2mil is at a borrowing cost of 1.5%, you can invest that $2mil in a portfolio of diversified short-term bonds yielding 4-5% to give you a spread of 2.5%-3.5%.

You can also do this on dividend-paying stocks.

However, for both cases, the risk is in the leverage and I have no idea when the bank will call in the loan when SH*T hits the fan.

You can read about the blumont,asiasons case where those directors pledging their shares had them sold by Goldman when SGX queried the two companies. These did not happen occassionally. This happened to the Chairmain of Jade in 2008/2009 too.

For myself, I do use leverage on bonds/stocks but it is less than 20% of my networth, so the likelihood of being asked to top-up or forced-sold is really very REMOTE. But never say never.

I do think the best form of leverage is still properties. If you have the stomach for it, you can draw out $2mil and buy a few fully paid properties overseas with decent yield still(but have to take forex risk). In sinapore, i'm not sure you can get any kind of decent yield for passive income, you might be only aiming for capital appreciation.. What are the upside now? You are not very optimistic on that rite :)