AMA The Fifth Person - Seedly

AMA The Fifth Person

This AMA will be held on 21st February 2019. Ask your questions here!

ASK A QUESTION

(AMA ENDED) I've made 16 profitable stock investments in just 3 years! Ask Me Anything!

Victor will answer all the questions tagged to him on 21st February 2019! This is part of a series in a lead up to our Seedly PFF2019 happening in March this year as we feature some speakers.

Hello Seedly community!

I'm Victor, and I am an equity investor and co-founder of The Fifth Person. The Fifth Person believes in spreading a message — that sound investment knowledge, financial literacy and intelligent money habits can help millions of people around the world achieve financial security, freedom and lead better lives for themselves, their family and their loved ones. In 2018, The Fifth Person won best independent investment website in the ‘GoTo.com’ category at the inaugural SGX Orb Awards organised by the Singapore Exchange (SGX). The award recognises the independent investment-related website or financial blog that most empowers investors to make educated decisions with their money.

Other than investing, I represented Singapore in the 2008 TAFISA World Games in Busan, South Korea and was the 2008 IFMA World Muay Thai Championships bronze medalist, kicking some serious ass along the way. 

Feel free to ask me any questions related to:

  • How to invest?
  • Which countries to invest in?
  • How to look at investments?
  • Risk of investments?
  • Building a dividend portfolio?
  • Dividend investing

NOTE:The host may choose at his/her preference to not answer particular questions. The AMA is moderated by Kenneth from Seedly, so let’s keep the questions friendly and open!

  • Recent Activity
  • Unanswered
  • Trending

AMA The Fifth Person

ETF

Robo-Advisors

Investments

Hi anon, I've recently answered a similar question and did a thorough analysis here! Do take a look :) At the end of the day, ask yourself the usual questions before investing: 1. What's your risk appetite? 2. What's your starting capital? Are you alright with paying for intermediary fees? 3. How much do you know about each type of investment? 4. How much effort and time would you like to spend on the investment? Ultimately, diversification is key! So you can actually invest in BOTH Robo-Advisors and ETFs at the same time :)

AMA The Fifth Person

Investments

Rich Tyler
Rich Tyler
Level 2. Rookie
Updated on 11 Apr 2019
Hi Ang, If all you want to see are you investment returns it is not too difficult to setup an excel spreadsheet to do it. Otherewise there are some good applications out there that can do what you want and so much more. There is Stock Market Eye that Victor mentioned and others like https://www.stockportfolioorganizer.com/ that handle various currency conversion, dividends etc.

AMA The Fifth Person

Investments

Isaac Chan
Isaac Chan, Business at NUS
Top Contributor

Top Contributor (Jun)

Level 8. Wizard
Updated on 07 Jun 2019
Revisting this older question after being reminded about it from reading an article on Hyflux on Business Times. These are the points given by S&P on what we can learn from this fiasco, and I'll just share my brief thoughts on there as well. TL;DR Don't take defensive industry for granted, beware of volatile earnings, debt instruments can be volatile and don't expect the government to save you. ! "No Sector is Immune to Financial Troubles" ! S&P brought up the fact that distrissed situations were mainly confined to cyclical industries like the energy and commodity businesses. However, they also brought up defaults of other services such as telecoms in 2015, which had been traditionally thought to be a defensive sector. This reminded of the fact that althought industry analysis is important, we can't just bank on that because high debt levels, poor cashflow management and lack of management foresight can cripple any business. "Situations can evolve quickly with narrow or uncertain earnings quality" ! S&P cited volatitle EBITDA fluctuation of Hyflux that occured during the past few years, which had led to deep operating losses. This made reminded me of being especially careful with businesses that fluctuate so much. Not only do investors have a harder time predicting the health of the company, management may also have a tougher time forecasting cashflows and being unable to manage their working capital and leverage, which led to Hyflux crumbling. "Losses can be harsh depending on the characteristics of debt instruments outstanding" ! This is an important point as well, since the increase in more sophisticated debt instruments in the market to retail investors should cause investors to be more cautious. Such instruments have also made it harder to analyse the debt profile of the company. "Investors should not make assumptions regarding a private company's importance to the government" ! This is another interesting point brought up by S&P, arguing that even though water security is important to the country, this shouldn't lead investors to the assumption that a bailout is likely. Hence, we should also not think that as long as Temasek or GIC has a major stake in a business, we are safe.
Answer image preview

Investments

AMA The Fifth Person

Hi Anonymous! Great question, I feel that besides asking how, what and how much, also consider WHEN to start investing. Investment, in terms of holistic personal finance, is for wealth accumulation which is crucial because you need lots of money to get married, pay off your house, buy a car, finance your children's education, and finally retirement (of course, this list of milestones is not exhaustive). The best time to start investing is after you have built up an emergency fund (3-6 mths of living expenses) and have cleared your debts (excluding mortgage), so this includes student loans if you have any. Paying off debt is not just good from a mathematical point of view, but being debt free gives you the freedom to invest without having to worry about whether your investment is more than your loan interest etc etc. Trust me, it feels a lot better to invest only after you cleared debts and all. Now, if you are debt free (no student loan) and have an emergency fund, than you might be ready. But remember, you still have to consider saving up for near term milestones like your engagement ring, wedding ceremony, house downpayment etc. But I would recommend learning more about investment and personal finance. Go around and talk with people in the industry but don't be pressured to buy anything! Just continue to learn, and of course be frank with whoever you are learning from. If you are learning from a banker or agent, just let them know you are just wanting to learn, some are generous enough to just share without pushing anything to you. This is important because you are unlikely ready to commit to a 20/30 year savings/investment plan just yet. So start learning first, if you want to trade, play small (10% or lower of your net worth) and learn from the best (Benjamin Graham, Warren Buffett, Dave Ramsey, just to name a few). All the best and have fun! Kee Kuan

AMA The Fifth Person

Lifestyle

Investments

Read this for your questions: https://blog.seedly.sg/the-ultimate-cheatsheet-cheapest-stock-brokerage-in-singapore/ For the better brokerage account by current user review: https://seedly.sg/reviews/online-brokerages

AMA The Fifth Person

Investments

Lifestyle

Family

Savings

Bryant Tan
Bryant Tan
Level 3. Wonderkid
Answered on 28 Mar 2019
I think it would depends on your family life style. Generally, if we were to follow Singapore family "standard" 2 kids with a helper tuition classes, extra enrichment classes I would say around $12K min anyting extra will be bonus saving.. All the best

AMA The Fifth Person

Investments

Victor Chng
Victor Chng, Co-Founder at Fifth Person Pte Ltd
Level 4. Prodigy
Answered on 21 Feb 2019
Hi, You should not start to invest first. You should save up more money. Make sure you save up at least 6 month of monthly expense as an emergency fund. Anything excess then you have the right to invest in the market.

AMA The Fifth Person

Investments

Jon Lim
Jon Lim
Level 2. Rookie
Updated on 07 Jun 2019
Leverage is GOOD. 1. Investors use leverage (borrow others' money) to make more money. 2. Platforms use leverage (their members' time & insights) to generate content & views for their Search Engine Optimization & selling ads. Are tall buildings bad? No. but people climb on top of tall buildings & jump off.

Stocks

Bonds

AMA The Fifth Person

Investments

Leonard Tan
Leonard Tan
Level 6. Master
Updated on 07 Jun 2019
Bonds are much safer than stocks - largely due to bonds not being exposed to market risk- which is of course compensated with greater return. That being said there are still a multitude of risks bond investors are exposed to: Default risk - Non govt bonds hold small % of default risk no matter how insignificant it might be. Interest rate risk - This is the main risk! While bond interest payouts will not change , the real yield and prices of bonds will drop as interest rates(or inflation) increases. Call risk - Only applies to callable bonds. Bonds may be prematurely terminated. Reinvestment risk - Coupon value might not be able to be reinvested at same rate as original bond.

AMA The Fifth Person

Investments

Zann Chua
Zann Chua
Level 6. Master
Updated on 07 Jun 2019
Hello! Some of the available places to invest are SSB, STI ETF and Robo Advisors SSB involves the invesment in the future of Singapore by loaning the government some money. The minimum sum to start is $500. The risk level of this is rather low. STI ETF would be recommended to those with low commitment investing and for those taking a passive way for long term investment. It involves the betting on an index fund which tracks the top 30 companies in Singapore. The minimum sum to start is $100. This carries a rather moderate risk. Robo Advisors is similar to the purchase of the STI ETF but it is for those who wish to diversify globally. There are currently 3 players offering this service, StashAway,Autowealth and Smartly. The minimum investment can go as low as $1. This carries a moderate risk. It would be good to research more and see which type of investment that you are most comfortable in.
Load more questions
#PoweredBySeedly