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Discover an Investment of 30% Return within 30 Months

Continue from my previous post, how many of you have been running away from Stock Market in May and currently the Stock Market is still very volatile and dynamic due to several reasons. Some people get burnt and phobia towards stock market and looking for other investment tools where provide consistent returns and low risk.

Today I gonna share with you a solid investment where assured 30% return within 30 months. It’s a Real-Estate Investment, however it’s different with Land Banking. How land value increase over time?

Let’s check it out from below diagram:

1) Agriculture Stage & Planning Stage (Land Bank)

The 1st stage of the land is called Raw Land. At this stage, the value of the land is still very low and for it to increase, the planners must come in. Basically they buy land and wait. They do planning and wait for approval. Once the land is approved, it’s sold to 2nd stage (Development).

2) Development Stage

This is where the developers come in. These guys know how long they need to develop the land and the cost of building this land. So this is where the developers, builders and construction companies all of them work together to develop the land.

3) End User Stage

The reason why the value is going up and down is because what we call the Speculative Stage. At this stage the value can go up sometimes, and it also goes down. So some people flip the market, they buy low and sell high but some people get burn when they buy high and sell low.

Designer Stage

(1st Stage)

Calculative

(2nd Stage)

Speculative

(3rd Stage)

Time ?

(Indefinite)

(Definite)

?

(Indefinite)

Return ?

(Indefinite)

(Definite)

?

(Indefinite)

1st Stage

When we look at this full cycle, we call 1st stage as the Designer Stage because they are just designing the land. So when you look at Time Vs Return, you won’t know how long you’ve to invest and what kind of the return you’ll be getting. Sometimes Land Bankers will tell you is 4-6 years, it can be 4 or 6, there were time there are 6+4, and there were incidents when there were 6×4! It’s a good investment but you must have a very powerful holding power in this stage.

2nd Stage

The 2nd stage is what we called the Calculative Stage, at this stage, these guys know what is the cost and time frame that they are looking at so they know how long they’ve to invest and what kind of return they’ll be getting. In fact, if you look at this stage, this is the stage where most tycoons make their money, look at the richest man in Asia, Lee Kah Seng of Hong Kong, look at Donald Trumph – the real estate tycoon! They are all in this stage.

3rd Stage

This is what we called the Speculative stage. At this stage again if you flip the market you won’t know how long you’ve to invest and what kind of return you’re going into.

Our investment is entering at earlier of 2nd stage and we exit at just before 3rd Stage. We buy the land, the developers, the builders, the construction companies build houses on our lands, and they sell it to end users. Within 30 months, if the end users do not buy back from us, the master developers must buy back from us. And it’s all stated in the contract. Let me show you what is the project is about in the next post! =)

Stay Tuned! Continue reading

June 3, 2010 Posted by | Uncategorized | Leave a comment

Sell in May and Go Away???

“Sell in May and go away” adage or also widely know as Halloween indicator, is the belief that the period from November to April has significantly stronger growth on average than the other months.

In such strategies, stocks are sold at the start of May and the proceeds held in bonds or a deposit account. Stocks are bought again in November, typically around Halloween.

How true is this to our stock market? The table below shows the historical data since 1988.

 

 
From historical data, we can see that it does has impact. What do you think about this year?

My personal opinion, it does not much effect for long term investors unless for those who opt for short term capital gain or it affects your particular stocks. Hence sell or stay? It’s your choice!

May 6, 2010 Posted by | Uncategorized | Leave a comment

Public Mutual New Fund.

Due to request, I have highlighted summary of the public mutual new fund. This is the recommendation to my friends who are keen in investing unit trust. For more details kindly contact me =) Thanks..

Public Far-East Alpha-30 Fund

大众远东Alpha-30 基金

 

Main Feature

To achieve capital appreciation over the medium to long term period by investing in up to a maximum of 30 stocks listed on domestic and regional markets.

 

Market Invested

The fund may invest in selected Far-East markets which include South Korea, China, Taiwan, Japan, Hong Kong, Philippines, Indonesia, Singapore, Thailand, India, Australia and other permitted markets.

 

Investor Profile

–          Aggressive risk-reward temperament

–          Medium to Long term horizon

–          Can withstand extended periods of market highs and lows in pursuit of capital growth

 

Offer Period

6 April 2010 – 26 April 2010

(21 Days)

 

Pricing

NAV per unit: RM 0.2500

Service charge: During offer period 5.00% – 5.50%

  After offer period 5.50%

 

Why invest in Public Mutual Far-East Alpha-30 Fund???

Benefits of investing in PFA30F:

-Allows investors the opportunity to participate in the long-term growth potential of a portfolio comprising up to 30 stocks in domestic and regional markets.

– Allows the fund manager to adopt a more focused investment strategy.

– Enables investors to participate in higher potential returns over the medium- to long-term as the fund invests in a concentrated portfolio of stocks.

 

Selection for 30 stocks?

•Fundamental research

– Financial health, industry prospects, management quality & past track record

• Valuation benchmark

– PE Ratio

– Price/NTA

– Dividend yields

 

Among the sectors that the fund will look to invest in:

• Financial

• Healthcare

• Building Materials

• Consumer

• Technology

* But not only limited to the above sectors.

 

Financial Sector

• With the global economy stabilising, banks earnings will improve as interest rates normalise and loans profit margins expand.

• Recovery of non-performing loans will gain pace.

 

Healthcare Sector

• Growing affluence in the Asian economies will increase demand for better healthcare services.

• Medical insurance coverage in Asia is still low compared to developed countries.

 

Building Material Sector

• To benefit from the increase in infrastructure & construction spending following Asia’s economic stimulus package and the recovery in the property sector.

 

Consumer Sector

• To capitalise on Asia’s robust economic recovery and improvement in consumer sentiment.

• To benefit from Asia’s rising disposable incomes and vast population base.

• Retracement in share prices of some consumer stocks provides investment opportunities.

 

Technology Sector

• To capitalise on the global economic recovery and improving consumer sentiment.

• Global demand for tech products & services is expected to turnaround and support the recovery of IT spending.

 

What are the prospects of regional equity market?

– Strong rebound in 2009:

1. Accommodative monetary policies

2. Government stimulus spending

– Growth in regional markets remain underpinned by accommodative real interest rates and resilient liquidity.

– Expected to outpace developed economies in 2010.

ASIAN Market Performance 2009

Country 2009 (%)
North Asia  
China 79.98
Taiwan 78.34
Hong Kong 52.02
South Korea 49.65
South East Asia & Pacific  
Indonesia 86.98
Singapore 64.49
Malaysia 45.17
Thailand 63.25
Philippines 63.00
Australia 23.32
South Asia  
India 81.30

 

All Asian economies are expected to register positive growth in 2010 on the back of resilient consumer & investment expenditure. In fact, the emerging of middle income class in Asia is one the factors.

Happy invest! =]

April 14, 2010 Posted by | Uncategorized | 1 Comment

Wealth Accumulation Strategy (real life practice)

Everything start from zero and getting one from zero is the most difficult step. However,   many people manage to do it, include you too. If you are just enter the society or school leaver or fresh graduates, please take notes for it.

 

In the very first place, we need to use our energy to earn money. We need to work to earn money as there is no free lunch for you  in  this world. It might consume your energy, time, and even worst health to earn the money. Just as we work as a sales executive, we need to use our energy and time to deal with customer or we need to have some socialize that need you to drink or smoke in some circumstances which affect your health. This is what called using your energy to earn money.

In the second steps, we use money to earn money. After earning money through our energy, we try not to use energy to earn money anymore as we grow older we have lesser energy to work. At that time, we use money to earn money through investing. we can choose investing in stocks, unit trust, bond, property and business too. The harder our money work for us, the richest we will be. By the same time, we need actively look after our investment especially if we invest in stock market.

Finally, we use time to earn money. Using time to earn money is a slow process. It might take several years to a few decades. The best way to let time help us to earn money is through investing in property and vacant land. Through property and vacant land, its value will appreciate in times. We do nothing but just wait for value appreciation.

 

The above three strategies or secrets are how ordinary people become rich. Most of the people stuck at the first step. They use their energy to earn money until retire or even extend their retirement age. That group of people never get out of their rat race. If you want to get rich, this is what you got to do, use money to earn money and use time to earn money!

Comments are welcomed =)

March 29, 2010 Posted by | Uncategorized | Leave a comment

Student’s Money Management Tips

Student’s Money Management Tips- IPTS&IPTA students

Student life is a great opportunity to learn how to manage your money effectively. This may sound a boring task, but it is vital skill to master which will help you throughout the rest of your life. As a student you will typically rely on one or more of the following sources of income:
1) Student loan;
2) Scholarship;
3) Money from parents;
4) Part-time job;
5) Savings

Once you have organized your income, organize your outgoings. Although students have a lot of outgoings, most have a very limited income

1. Firstly, make a list of all your expenses and write an estimate of the amount. Some may be fixed, such as tuition fees and accommodation costs, whilst others such as food and entertainment costs will be flexible. Any flexible expenses are ones which can be reduced to relieve your budget.

2. Your budget should include your everyday living expenses, including:
a. Accommodation (rent and other bills)
b. Food & Groceries
c. Transport
d. Books
e. Clothes and other considerations
f. Entertainment

3. There are many ways for students to save money, even on essentials
a. Groceries: before you go food shopping, make a list of the items you need;
b. Books: Go for second-hand books from senior students. Look at notices at the faculty, residence notice boards or the student newspaper;
c. Transport: if possible, use public transportation. You may be eligible for a student discount. Carpool home with other students to cut costs.

4. Watch your spending: Track your spending to find out where your money is going. Are four trips to a “PREMIUM coffee Place” a week really necessary?

5. If you have credit cards. Minimize credit card use. Pay balances off in full every month. Use credit cards only for emergencies, not for entertainment. Set your own credit limit. Just because you have a credit card with a RM2K credit line doesn’t mean you have to spend RM2K

6. Get a bank account.

7. Borrow only what you need

Final reminders:
1) Make your student loan payments on time when you are in repayment
2) Keep a simple lifestyle
3) Be particular/cautious when it comes to money: Don’t just trust anyone with your money

March 18, 2010 Posted by | Uncategorized | Leave a comment

Financial Workshop @ Notthingham University

It was indeed an honor to be invited by the Wall Street Society to conduct “Awaken Financial Genius Within” Workshop at Nottingham University on 9th March 2010. The speaker is Jonathan Quek, Founder of FORTRESS Wealth Advisory.

Before the workshop starts.

Jon on the stage.

Auditorium full with Notthingham Uni. students.

Me with the Oganization Committees.

Participants are paying attention to the powerful yet inspirational workshop.

What did the participants say about the workshop?

“Awesome! It was what I needed to hear. Great!” – Ore Apampa, Nigeria

“Perfect!” – Nadya, Russia

“The seminar was informative and thoughtful! Wish to learn more from FORTRESS.” – Lim Tau Shen, Puchong, Malaysia

“Simple and fast-paced.  Excellent for young starters!” – Lim Ting Ting, Sabah, Malaysia

“Jonathan Quek has much amazing stage presence. He is inspiring and an example of the type of person I want to be. His talk for Nottingham students was frank and truly an eye-opening experience.” – Mah Ming Yi, KL, Malaysia

“The content is definitely intriguing, will look up on what they highlighted without a moments notice.” – Kenneth Loo, Sarawak, Malaysia.

I’m very happy on the day as I helped a lot of students which come to me to clear their financial doubts. I’m also very glad that they planning to join our coming workshops: 3 Line Investment Strategy, D.I.Y Financial Planning, Cash Flow Financial Game, etc.

Hope to see you guys again very soon =)

March 15, 2010 Posted by | Uncategorized | Leave a comment

SIX ways to turn Savings into Investments

Many people thinking of how to SAVE their money efficiently and where to invest. There are a lot of investment instruments in the market. Each and everyone has its pros and cons. Based on my knowledge I listed down the Pros and Cons of each investment instruments. Hope my readers do understand and pick the right instrument after reading this post. Thanks!

 

Saving Accounts

Pros

–          Easy to open and maintain.

–          Minimum requirements. Very reasonable.

–          Flexible access to cash.

Cons

–          Ease of cash withdrawal can disrupt your savings programme.

–          Relatively low interest rate.

 

Fixed Deposit

 Pros

–          Higher interest rate than savings account.

–          Money cannot be spent on impulse purchases.

Cons

–          Interest may at times be outpaced by inflation.

–          Withdrawal less flexible.

 

Property

 Pros

–          A good “forced-savings” plan.

–          A good hedge against inflation.

–          Can bring good returns in “boom: economy.

Cons

–          As a starting point for savings, it is difficult; high “start-up” down payment, and you must qualify for a bank loan.

–          Long-term, inflexible mortgage repayment scheme.

–          Not readily converted to cash.

 

Life Insurance

 Pros

–          A useful saving-cum-protection vehicle.

–          As many policies have a penalty for premature break, it acts as a mechanism to promote saving.

–          Proven as an effective “forced savings” plan.

Cons

–          Relatively lower returns compared with other long-term investment vehicles.

–          Lack of flexibility.

 

Unit Trusts

 Pros

–          The perfect investment vehicle for regular savers.

–          Starting amounts are not as small as for savings accounts, but are reasonable.

–          Investments are easy to build up on a regular basis.

–          Benefit derived from dollar-cost averaging.

–          Unit trusts give a well-balanced investment portfolio that you do not need to manage yourself.

–          You can sell your units when the price is right at any time.

Cons

–          Affected by ups and downs of share market or other markets that the funds invested in.

 

Share Market

 Pros

–          More exciting than operating a current account.

–          Can bring spectacular returns when timing is right.

Cons

–          You need a lump sum to get into the share market.

–          Not for the regular saver investing a couple of hundred ringgit per month.

–          You need vast amounts of market information, time and luck in order to manage your investment successfully.

March 9, 2010 Posted by | Uncategorized | Leave a comment

See myself as a Consultant rather than a Salesperson.

I see myself as a consultant, a friend, a helper rather than a salesperson, to provide solutions to my clients. Below are the services offer by my company to value add our clients. Basically we provide wide range of services in related to Financial Planning.

FORTRESS offers a range of specialist services tailored to your individual unique set of goals to fulfill and constraints to consider:

Insurance and Risk Management Planning

Keyman Protection

Employees’ Benefits Scheme

Assets Protection

Life Protection

Income Protection

Medical Card & Health Insurance

Personal Accident Protection

 

Money Management Planning

Net Worth Analysis

Cash Flow Analysis

Budget Variance Analysis

Mortgage Analysis

 

Wealth Accumulation and Investment Planning

Stocks & Shares

Bonds

Alternative Investment

Mutual Funds / Unit Trusts

Money Market Investment

Endowment Saving Plan

Land Banking

 

Retirement Planning

EPF Optimization & Maximization

Inflation Analysis

 Assets & Capital Preservation

 

 

February 23, 2010 Posted by | Uncategorized | Leave a comment

25 M’sian stocks that are expected to outperform the FBM KLCI

This article’s research is done by Standard & Poor’s.

History of S&P:-

With offices in 23 countries and a history that dates back nearly 150 years, Standard & Poor’s is known to investors worldwide as a leader of financial- market intelligence.
Today Standard & Poor’s strives to provide investors who want to make better informed investment decisions with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions. 

From the top 25 picks, most of the picks are under my monitoring stocks list as well. Same as my prediction as those stocks would do well in 2010. This report generated provides extra info and summary of reasons being picked. Hope this report may value add to my readers and helpful in the way of selecting stocks. Huat ar!!
Link: 25 M’sian stocks that are expected to outperform the FBM KLCI.

February 8, 2010 Posted by | Uncategorized | Leave a comment

CIMB confirms submitting JCY’s draft prospectus

For those who are interested in investment on stock and shares. This is the stock that I recommended. The deadline of submission IPO form is on 8th Feb 2010.

“The submission of JCY’s listing draft prospectus confirmed The Edge’s report that the HDD components maker was seeking to list on Bursa Malaysia and had appointed CIMB IB and UBS AG to work on its initial public offering (IPO). Both CIMB IB and UBS AG are also lead arrangers on extending the term loan to JCY HDD.”

for more info kindly click: CIMB confirms submitting JCY’s draft prospectus.

I just submitted the application forms today to Malaysian Issuing House. Hope can get selected =)

February 4, 2010 Posted by | Uncategorized | Leave a comment