Boon Tee Eng

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Boon Tee Eng

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Boon Tee Eng

5Upvotes
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Investments

Boon Tee Eng
Boon Tee Eng,
Level 3. Wonderkid
Answered on 14 Apr 2019
Actually investors could copy Berkshire Hathaway returns (to a certain extend), as the positions are disclosed in the 13F. However there are few reasons investors were not capable to do so: 1) BRK positions are boring, and the long-term buy & hold make it even more boring. Many retail investors prefer to hold stocks that are exciting 2) Even if investors try to copy his holding for certain period of time, there will be period of underperformance that will prompt him to ditch this strategy and go for something else 3) Not all BRK positions are public equities, there are stocks that were privitised entirely and hence not able to be acquired 4) Time lag, as the 13F disclosure is only made quarterly. However this is of minor issue compared to the (1) & (2) above because BRK has low turnover

Investments

Boon Tee Eng
Boon Tee Eng,
Level 3. Wonderkid
Answered on 09 Apr 2019
1) Deposit saving 2) Singapore saving bond 3) High grade investment grade bonds 4) Gold due to lower correlation with other asset classes 5) Defensive sectors such as consumer discretionary and utilitiy companies, however this is of lesser extend because the correlation with general market is relatively low compared to other sectors but still positive

Savings

Boon Tee Eng
Boon Tee Eng,
Level 3. Wonderkid
Answered on 09 Apr 2019
From broader perspective, we should address the risk and return objectives, and personal constraints such as time horizon, liquidity needs and taxes. Here are more details: Risk - what types of risk are you willing to take? how much risk to take for each risk categories? Return - what is your return expectation? Are you satisfied with ~2% return from SSB and UOB account? Liquidity needs - do you need to have liquid cash to buy houses, support children education, etc? Time horizon - take into account your age. The longer the time horizon, the higher the capacity to undertake riskier investments given that there will be enough time for the market to recover if your portfolio suffer bad returns in near future. So there are a lot to consider, and the focus should be on the investor personal circumstances rather than the merits of the instruments. Given that you are still young and have a decent saving rate ($340k in savings by age 34), I would expect that you have the capacity to undertake riskier investments to increase the returns. Equitiy and real estate are good asset classes to look into, but should be approached with care. Invest in your own knowledge should give the best return!

Robo-Advisors

STI ETF

Investments

Boon Tee Eng
Boon Tee Eng,
Level 3. Wonderkid
Answered on 20 Mar 2019
The STI comprises the largest 30 companies listed on Singapore exchange, whereas a globally diversified ETF has broad exposure to a wide range of global companies around the world. For example, IWDA ETF has exposures in 23 developed countries, including Singapore with the weight of 0.5%. The biggest difference is the diversification. STI gives you exposures to Singapore listed companies, so if you only own STI the performance will be strongly linked to Singapore’s economy and stock market performance. A globally diversified ETF will give you a more balanced exposures across countries. To access global ETF you can either use 1) Local brokerage that provide access to foreign exchanges; 2) international brokerage account e.g. Interactive Brokers, TD Ameritrade, Saxo Bank; 3) Robo-advisors such as StashAway. Different accounts have different charges. Size of investments depends on the account, as some account has minimum fixed monthly fee so it doesn’t make sense to invest small amount of money. This is a broader topic on asset allocation which will involves your personal risk appetite and personal finance.
Level 3. Wonderkid
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