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Chen Zhirong

I like to take photos! Am secretive online but open offline =)

Chen Zhirong

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I like to take photos! Am secretive online but open offline =)

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Chen Zhirong

  • Answers (32)
  • Questions (21)
  • Reviews (3)

Investments

Stocks Discussion

Robo-Advisors

Online Brokerages

I just graduated and started working. I currently have $5k savings and plan to set aside $500-800 monthly to invest. How would you suggest to allocate them?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered 2w ago
Keep that 5k as emergency savings and build it up till you have about 6 months first. In the meanwhile, continue DCA-ing. I know it can be tempting to go all in with that cash pile, but even Warren Buffet believes cashflow is king and has been storing his cash rather than investing it. Honestly unless you have 10k to spare, I wouldn't even bother going into a single stock. That's why Endowus has a minimum investment sum of 10k too. You can increase your DCA amount if you FOMO but meanwhile do paper/virtual investing, set your in/out targets and monitor if your virtual portfolio actually beats Stashaway after a year. By that time you should have more than 10k stored up and know if your investing is good to go or if you are better off putting everything in Stashaway.
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Investments

Stocks Discussion

Online Brokerages

How many shares per stock should I buy, if I were to diversify with 10 stocks in different sectors for buy and hold investing strategy?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered 2w ago
You should put about 10k cash per stock. As stocks have different prices, you will buy different amounts. In terms of transaction costs, it is most value for money around 5-10k. I recommend the upper end because by the time you are holding on to 10 stocks of different sectors, your portfolio should be about 100k. Any less and it's not worth it. Let's say you take the lower end of 5k per stock or 50k. If any of the stocks make a gain of 10%, how much do you earn? For the effort made in researching and investing you earn $500 which i'm guessing is less than what you save a month, if you can afford to have a 50k portfolio. HOWEVER, even with 100k, I find that a 1k profit for a 10% rise in a single stock is quite little, so i'm planning to pare back to maybe 5-6 stocks concentration, exclusive of ETFs and Roboadvisors that i'm also holding. For the amount of time spent researching, I would expect at least a 2k return within a year, so you can reverse calculate how much I plan to put in one stock and extrapolate to 10 stocks for the entire portfolio.
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Investments

Investment Courses

Has anyone taken the option insider course by Reshveen Rajendran? Was it any good?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 14 May 2020
https://marcusneo.com/reshveen-rajendran-idiocy-in-options-trading-for-income/ Pasting this here incase the website is taken down. All credit goes to Marcus Neo: This is a review of a value investing seminar I attended years ago. It’s taught by Reshveen Rajendran. You can find his website at MillionDollarRush.Com. Here are the reasons I am publishing it after all these years: 1) I’m much more educated in financial markets today. 2) I researched my rights as a consumer. 3) I avoided writing negative reviews for the fear of potential legal action taken against me. 4) I decided to balls up. I am also exasperated at Singapore’s investment education industry pitching flamboyant theories that don’t work in real life to prey on unknowledgeable public. I got nothing against education. I am all for it. However, when you’re teaching the wrong information leveraging on the knowledge gap and using unethical marketing strategies: over promising and under delivery, I’ve got a problem with that. How Did I Sign Up in The First Place? So why did I sign up in the first place? I was a naive person in my early twenties. I wanted the short cuts. I wanted the quick answer to the financial markets. I also knew most of the programs in that market were extremely expensive: charging up to 5000 dollars for a seat. Since Reshveen Rajendran’s program was relatively cheaper than what the market was offering, I gladly participated along with a couple of other factors: - Reshveen was recommended by a friend (social bias here) - He safely assured me that doing 10% a month on my portfolio was easy and many others including himself has achieved those returns - The course’s irresistible marketing angle was: generate ‘part time’ income as a student. Now, before I’m accused of making false claims here. I’ll back it up. The following pieces of information are taken from his Facebook page and his website’s blog post. The Review of Reshveen Rajendran’s Course The instruction taught in the course was entry level. The course promoted using options to generate ‘insurance premium’ on underlying assets. It serves as a ‘monthly cashflow’. This wasn’t substantiated by the course instructor in his profit or loss statement. For the ones more financially savvy, you’ll know that options don’t always expire and there’s a possibility of it being exercised. Since you can’t predict the market, you can’t guarantee a cash flow from premiums generated from selling options. Secondly, in the instruction, commodities were also recommended by the instructor as an investing vehicle. This goes against the fundamental principle of value investing. The fundamental principle of value investing is purchasing companies when their prices are traded below their intrinsic value. Commodities are entirely different from companies. Thirdly, to claim that your ‘6 figure’ equities portfolio generates you a passive income is highly suspicious. Now, assuming you built a portfolio around the highest paying dividend yield stocks in Singapore. The average yield would be approximately 5-7%. You’re required to have one million dollars invested to have a dividend income of 6%, $60000 annually, which adds up to $5000 per month. That’s a million dollar account, alongside with the assumption that you’re invested in the highest dividend stocks for the last 10 years and the companies pay out dividends regularly. Lastly to cite a quote from his blog: My returns have been very substantial with 5 -7% compounding growth every month! – Million Dollar Rush Blog_ Let’s take an average of 6% compounded growth on a $10000 starting account balance, you’ll end with $20121.96 at the end of 12 months. You’ll achieve a 101.21% per annum returns. Let’s compare these returns to actual, audited investing track records. - Warren Buffet’s Track Record Everybody favourite uncle: Warren Buffet. His returns are 23.8% compounded per annum. - Charlie Munger’s Track Record Vice CEO of Berkshire Hathaway, partner to Warren Buffet. Charlie Munger’s compounded returns: 19.8% per annum. - Walter Schloss’s Track Record Referred by Warren Buffet to be one of the greatest value investors ever lived. Walter Schloss’s compounded Returns: 16.1% Per Annum. Here’s the reference. You could argue that Buffet claimed that he could achieve 50% returns per annum handling smaller amounts of capital. However, I’m sure Buffet himself never claim he could generate 201% in a year, much less this trainer. Selling Put Options as a Strategy to Own Undervalue Stock You’re required to have some basic options trading knowledge and experience to understand the following. One of the theories proposed by the instructor is that you are able to sell put options to generate cashflow and to potentially own undervalued stocks at at a discount. Firstly, not all stocks have an options market at the price at which you valued it to be your purchase price. Secondly, not all stocks have an options market trading far out of the money. Yes, you could sell options at stocks are trading ‘at the money’ of your valuation. It’s barely worth selling a put option when it’s valued near ‘at the money’ (it’s better to own the stock itself, since it is undervalued in the first place right?) Henceforth, the entire notion of selling options on an undervalued stock to generate free cash flow that leads to passive income, is absurd. The Lack of Empirical Evidence I don’t make these arguments without evidence. I’ll retract this article if there’s new evidence supported: audited or non-audited profit and loss sheets: namely the trainer’s profit and loss statements and trades. Years ago, I negotiated with the trainer for a full refund of my course fees, citing the evidence and stating the mentioned case studies. However, he outrightly refused and cited that I haven’t applied any of his instruction on my end and am unable demand a refund of his course fees as it would be unreasonable. Ironically, I took it upon myself to test out his methods. I also took it upon myself to do acquire investing knowledge independently of his course material and instruction. Note: If you’re looking to sue me, there is a difference between online defamation and a negative product or service review. I present my case with basic mathematics, supporting evidence and no intention to accuse or character assassinate the company nor trainer. 2020 update: Low cost index fund investing has gotten me a far better returns that actively managing capital for the last 7 years. No fancy options trading or theories. Statistically, the average individual is not going to outperform the market. No, you’re not a Buffet or a Munger. No, you’re not special. No, you don’t belong to the minute percentage that are able to generate an income from trading options. Unfortunately, the trainer is still going around selling the same program to the public at scale.
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Investments

FIRE Movement

Passive Income

Robo-Advisors

Stocks Discussion

Online Brokerages

SeedlyTV S2E05

Starting out as a millenial, what do you all think about the woke salaryman’s view that you should passively invest up to 100K?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 13 May 2020
I would say go 100% into this but break in down into small goals so it doesn't feel so scary. I broke it down into 10k, 25k, 50, 75 and 100k. Then I celebrated every mile stone I hit to give myself encouragement. If you just look at it as 100, it can feel pretty scary. Taking into account your commitments, give yourself a time period to fullfill this. 5 years, 3 years or even 10 years, it doesn't matter. So long as you hit it eventually. If you keep giving yourself excuses, then you'll never reach it and never have enough for retirement. If you have a wedding and other financial responsibilities, set a different account for them. NEVER MIX your retirement savings with LIABILITIES/RESPONSIBILITIES. Even if you have only $1 after everything, put it in this investment/retirement account and count it separate. No matter what your circumstances, accept this pressure because the retirement clock starts when you begin working.
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Savings

General

How much should you have saved at age 30?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 14 Jul 2019
Including CPF, my networth is 3x of my gross annual salary after 5 years of working. Minus CPF, it's about 1.5X my gross annual or 2X my nett salary. Perhaps that's what you should aim for.
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Investments

Savings

Insurance

REITs

Bonds

I have $10k in my account to invest. I am thinking between insurance, bonds or reits. My horizon is 10 years. Which should I put my money in?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 09 Jul 2019
Depends on when you want to take the money out. If it's for retirement, annuities although I think you need about 15k. If you're planning to kinda keep it hanging around, then REITs/ETFs. If you need to take it out at the end, then endowment or SSB =)
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Career

Savings

Investments

Lifestyle

Credit Cards

What are your personal finance resolutions for 2019?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Updated on 07 Jun 2019
Wow I was just planning this last night. For about 35k, including bonus, this was how I planned. Firstly, TREAT YOSELF. Gave myself a budget of about 5k for holidays and entertainment. Planning to catch the Aladdin and Matilda musical next year! Plus visit North Korea. Then, "business expenses" read one or two new cameras. I would really like the Fuji XT3 and maybe the 50-140mm. Or maybe get more Canons and get the 11-24mm? Need some LED lights too. Probably 5k for the lot though I might exceed. With the remaining 25k, I plan to put 15k into SRS and invest either in an annuity or stocks, depending on the market. 7k into CPF SA. 7k in my parents' OA. And keep the remaining 1k as buffer or maybe to donate?
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Investments

How can I improve my investments portfolio? I'm 25 with 4k take home pay?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Updated on 07 Jun 2019
I would stick with STI ETF for the first 2-3 years until you feel confident enough to invest in local stocks and then global ETFs. You can go with robo advisors but I feel that that will simply stunt your growth in learning how to invest globally. However if you feel you don't want to learn/will learn later, then you can do so in order to gain exposure. No point putting in SSB at this age! Would rather top-up in CPF instead as returns in SSB are too low for someone this young.
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Investments

ETF

PFF Panel 3

Seedly PFF 2019

Stocks Discussion

In a financial crisis, is it better to buy individual stocks to capitalize or invest in ETFs if you have no time to do research?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 02 Mar 2019
Invest in ETFs if you have no time to research, regardless of crisis.
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Robo-Advisors

ETF

PFF Panel 2

Seedly PFF 2019

ETFs/Robo ETFs advocate regular investing via RSPs, while others advocate holding off until market crises and going 'all in' . How do we reconcile these two investing strategies? ?
Chen Zhirong
Chen Zhirong
Level 5. Genius
Answered on 02 Mar 2019
Time in the market beats timing the market. Only one side is worth listening to.
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Level 5. Genius
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