ASB is an income equity fund with a fixed price per unit at RM1.00. The maximum investment for each adult eligible individual is limited to RM200,000. Since launched in 1990, ASB is one of the best performing fund under PNB management. The table below is the historical dividend rate since the fund was launched in 1990.
Year Dividend Bonus Total
1990 8.00 6.00 14.00
1991 8.50 4.00 12.50
1992 7.50 5.00 12.50
1993 9.00 4.50 13.50
1994 9.00 4.50 13.50
1995 10.00 3.00 13.00
1996 10.25 3.00 13.25
1997 10.25 1.25 11.50
1998 8.00 2.50 10.50
1999 10.50 1.50 12.00
2000 9.75 2.00 11.75
2001 7.00 3.00 10.00
2002 7.00 2.00 9.00
2003 7.25 2.00 9.25
2004 7.25 2.00 9.25
2005 7.25 1.75 9.00
2006 7.30 1.25 8.55
2007 8.00 1.00 9.00
2008 7.00 1.75 8.75
2009 7.30 1.25 8.55
Tuesday, November 16, 2010
Excellence And Determination
Aristotle once said, "We are what we repeatedly do. Excellence, then, is not an act, but a habit."
But excellence can only be possible with dedication and determination.
"The difference between the impossible and the possible lies in a person's determination." Tommy Lasorda, a former Major League baseball manager
But excellence can only be possible with dedication and determination.
"The difference between the impossible and the possible lies in a person's determination." Tommy Lasorda, a former Major League baseball manager
Thursday, November 4, 2010
Amah Syndrome
Star dated 4.11.2010
According to Andrew Sheng in his book titled From Asian To Global Financial Crisis, there were two main indicators to irrational exuberance during the super bull run in 1993. The first was the amah (domestic maid) syndrome. We need to be careful when amahs got excited about the stock market. This was because they did not know what they were buying and would always be the last to sell. The second indicator was when businessmen began to speculate stocks in the stock market. This was because they might neglect their businesses and use some of their cash for speculation.
Comparing our current market situation with the 1993 bull run, there are certain similarities that we see, such as strong economic growth, ringgit appreciation, inflow of foreign capital and ease of credit. However, our local retailer participation is yet to get boiling, which may be the last push factor towards the bull run. Hence, once the participation of the local investors starts to get heated up, together with more inflow of foreign fund, that may be the signs of the market heading for a ‘mini’ super bull run.
● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.
According to Andrew Sheng in his book titled From Asian To Global Financial Crisis, there were two main indicators to irrational exuberance during the super bull run in 1993. The first was the amah (domestic maid) syndrome. We need to be careful when amahs got excited about the stock market. This was because they did not know what they were buying and would always be the last to sell. The second indicator was when businessmen began to speculate stocks in the stock market. This was because they might neglect their businesses and use some of their cash for speculation.
Comparing our current market situation with the 1993 bull run, there are certain similarities that we see, such as strong economic growth, ringgit appreciation, inflow of foreign capital and ease of credit. However, our local retailer participation is yet to get boiling, which may be the last push factor towards the bull run. Hence, once the participation of the local investors starts to get heated up, together with more inflow of foreign fund, that may be the signs of the market heading for a ‘mini’ super bull run.
● Ooi Kok Hwa is an investment adviser and managing partner of MRR Consulting.
Wednesday, November 3, 2010
Housing Loan
News On 4th November 2010
Bank Negara is imposing with immediate effect the maximum loan-to-value (LTV) ratio of 70% for the third house financing facility taken by a borrower as it seeks to curb "excessive investment and speculative activity in the residential property market".
The central bank said on Wednesday, the move was expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations.
Bank Negara is imposing with immediate effect the maximum loan-to-value (LTV) ratio of 70% for the third house financing facility taken by a borrower as it seeks to curb "excessive investment and speculative activity in the residential property market".
The central bank said on Wednesday, the move was expected to moderate the excessive investment and speculative activity in the residential property market which has resulted in higher than average price increases in such locations.
Saturday, October 16, 2010
Quit Smoking
You know smoking is not healthy, yet you smoke. It is easy to tell yourself to quit yet you never stop. Mark Twain even said, “To cease smoking is the easiest thing I ever did. I ought to know because I’ve done it a thousand times.”
Smoking is killing yourself slowly and willingly. “When you smoke cigarettes you’re likely to burn yourself to death; with chewing tobacco the worst thing you can do is drown a midget.” Fred Allen.
You save money when you quit smoking. “I have seen many a man turn his gold into smoke, but you are the first who has turned smoke into gold.” Elizabeth I, to Sir Walter Raleigh.
Why you smoke? E.R. Bulwer Lytton said, “A good cigar is as great a comfort to a man as a good cry to a woman.”
“A cigarette is the perfect type of a perfect pleasure. It is exquisite, and it leaves one unsatisfied.” Oscar Wilder.
“I kissed my first woman and smoked my first cigarette on the same day. I have never had time for tobacco since.” Rudyard Kipling.
Smoking is killing yourself slowly and willingly. “When you smoke cigarettes you’re likely to burn yourself to death; with chewing tobacco the worst thing you can do is drown a midget.” Fred Allen.
You save money when you quit smoking. “I have seen many a man turn his gold into smoke, but you are the first who has turned smoke into gold.” Elizabeth I, to Sir Walter Raleigh.
Why you smoke? E.R. Bulwer Lytton said, “A good cigar is as great a comfort to a man as a good cry to a woman.”
“A cigarette is the perfect type of a perfect pleasure. It is exquisite, and it leaves one unsatisfied.” Oscar Wilder.
“I kissed my first woman and smoked my first cigarette on the same day. I have never had time for tobacco since.” Rudyard Kipling.
Thursday, October 7, 2010
Cut Costs With Laughter
Motivate Yourself To Laugh
“People who laugh actually live longer than those who don’t laugh. Few persons realize that health actually varies according to the amount of laughter.” James J. Walsh.
Laughing makes you feel good. Laughing is the best medicine to your heart and it is free. Laughing increases the blood flow in your arteries.
Professor Micheal Miller said, “Given the result of our study, it is conceivable that laughing may be important to maintain a healthy endothelium and reduce the risk of cardiovascular disease.”
“Up to 80 muscles are used during a hearty laugh, the blood pressure rises, the heart beats faster and blood oxygen levels increase.” Norwegian University Of Science.
“Be helpful. When you see a person without a smile, give him yours.” Zig Ziglar.
Laughter not only keeps the heart healthy but also boosts one’s immune functions and helps reduce stress.
“The kindest thing you can do for the people you care about is to become a happy, joyous person.” Brian Tracy.
Watch your diet, do exercise and add a good dose of laughter to live longer and happier.
“You grow up the day you have your first real laugh – at yourself.” Ethel Barrymore.
“People who laugh actually live longer than those who don’t laugh. Few persons realize that health actually varies according to the amount of laughter.” James J. Walsh.
Laughing makes you feel good. Laughing is the best medicine to your heart and it is free. Laughing increases the blood flow in your arteries.
Professor Micheal Miller said, “Given the result of our study, it is conceivable that laughing may be important to maintain a healthy endothelium and reduce the risk of cardiovascular disease.”
“Up to 80 muscles are used during a hearty laugh, the blood pressure rises, the heart beats faster and blood oxygen levels increase.” Norwegian University Of Science.
“Be helpful. When you see a person without a smile, give him yours.” Zig Ziglar.
Laughter not only keeps the heart healthy but also boosts one’s immune functions and helps reduce stress.
“The kindest thing you can do for the people you care about is to become a happy, joyous person.” Brian Tracy.
Watch your diet, do exercise and add a good dose of laughter to live longer and happier.
“You grow up the day you have your first real laugh – at yourself.” Ethel Barrymore.
Saturday, September 25, 2010
DXN Berhad - With Great Potential
For a number of years, the multilevel marketing company used its operating cash flow to diversify into unrelated businesses, from property development and a travel agency to the timber trade and biodiesel production.
In 2008, they made the decision to focus on the MLM business. The transformation has reinvigorated the group’s bottom line. It made a record net profit of RM28.4 million for FY2010 ended Jan 2010, which improved further into a record quarterly net profit of RM10 million in its 1Q2011 ended May 31, 2010.
That was helped by the use of operating cash flow to reduce borrowings. It reduces its net borrowings to RM17.3 million in 1Q from RM31.3 million in the preceding quarter. The group could turn net cash by year end.
All its unrelated businesses have been wound down and losses provided for – except for ongoing property development project in Alor Star. It does not plan to scale up this division. Operating cash flow from the MLM will be ploughed back into the MLM or distributed as dividends.
In 1Q2011, besides savings in interest costs, earnings also grew through the group’s two pronged strategy of opening new markets and broadening its product range
Financial position as at 31 May 2010.
NTA RM0.89
Cash RM43.46 million
Borrowings RM60.88 million
Share Capital RM60.191 mil
Share Premium RM1.78 mil
Treasury Share (RM7.911 mil)
Retained Earning RM154.37 mil
Shareholders Fund RM202.97 mil
Non Current Asset RM119 mil
Current Asset RM188 mil
Current Liabilities RM94 mil
Long Term Liabilities RM6.8 mil
1Q EPS RM0.0445 ( Corresponding 1Q EPS RM0.0216 )
1Q Net Profit RM10.076 million
Projected Annualised EPS RM0.1772
Projected Annualised profit RM40 mil
Number of shares 240.764 million
Share price on 24.9.2010 RM1.13
Look out for the announcement for the 2nd quarter by October 2010. If the EPS is the same or more, then this counter is good to invest in. Recently the company had fix its dividend policy to pay at least 50% of its profit as dividend on a quarterly basis.
If the above profit is maintained, at least RM20 million will be paid as dividend, giving a yield of about 8%.
Fair price RM1.70 ( 10 x projected EPS )
In 2008, they made the decision to focus on the MLM business. The transformation has reinvigorated the group’s bottom line. It made a record net profit of RM28.4 million for FY2010 ended Jan 2010, which improved further into a record quarterly net profit of RM10 million in its 1Q2011 ended May 31, 2010.
That was helped by the use of operating cash flow to reduce borrowings. It reduces its net borrowings to RM17.3 million in 1Q from RM31.3 million in the preceding quarter. The group could turn net cash by year end.
All its unrelated businesses have been wound down and losses provided for – except for ongoing property development project in Alor Star. It does not plan to scale up this division. Operating cash flow from the MLM will be ploughed back into the MLM or distributed as dividends.
In 1Q2011, besides savings in interest costs, earnings also grew through the group’s two pronged strategy of opening new markets and broadening its product range
Financial position as at 31 May 2010.
NTA RM0.89
Cash RM43.46 million
Borrowings RM60.88 million
Share Capital RM60.191 mil
Share Premium RM1.78 mil
Treasury Share (RM7.911 mil)
Retained Earning RM154.37 mil
Shareholders Fund RM202.97 mil
Non Current Asset RM119 mil
Current Asset RM188 mil
Current Liabilities RM94 mil
Long Term Liabilities RM6.8 mil
1Q EPS RM0.0445 ( Corresponding 1Q EPS RM0.0216 )
1Q Net Profit RM10.076 million
Projected Annualised EPS RM0.1772
Projected Annualised profit RM40 mil
Number of shares 240.764 million
Share price on 24.9.2010 RM1.13
Look out for the announcement for the 2nd quarter by October 2010. If the EPS is the same or more, then this counter is good to invest in. Recently the company had fix its dividend policy to pay at least 50% of its profit as dividend on a quarterly basis.
If the above profit is maintained, at least RM20 million will be paid as dividend, giving a yield of about 8%.
Fair price RM1.70 ( 10 x projected EPS )
Motivate Ourself To Better Health
“In health there is freedom. Health is the first of all liberties.” Henri Frederic Amiel.
Yes, health is more important than wealth. If you are wealthy, but not healthy, you will not be able to enjoy your wealth. If you are healthy but not wealthy, you can work hard to look for wealth.
Francois Rabelais once said, “Without health life is not life; it is not living life. Without health life is only a state of languor and an image of death.”
“Health is worth more than learning.” Thomas Jefferson, 3rd president of USA.
Health is wealth. Health is beauty. Take care of your health and make it as top priority in life. William Shenstone said, “Health is beauty, and the most perfect health is the most perfect beauty.”
“Strive to preserve your health; and in this you will the better succeed in proportion as you keep clear of the physicians, for their drugs are a kind of alchemy concerning which there are no fewer books than there are medicines.” Leonardo da Vinci.
Look after your health. Value your health to value your life. “Health is not valued till sickness comes.” Anonymous.
Yes, health is more important than wealth. If you are wealthy, but not healthy, you will not be able to enjoy your wealth. If you are healthy but not wealthy, you can work hard to look for wealth.
Francois Rabelais once said, “Without health life is not life; it is not living life. Without health life is only a state of languor and an image of death.”
“Health is worth more than learning.” Thomas Jefferson, 3rd president of USA.
Health is wealth. Health is beauty. Take care of your health and make it as top priority in life. William Shenstone said, “Health is beauty, and the most perfect health is the most perfect beauty.”
“Strive to preserve your health; and in this you will the better succeed in proportion as you keep clear of the physicians, for their drugs are a kind of alchemy concerning which there are no fewer books than there are medicines.” Leonardo da Vinci.
Look after your health. Value your health to value your life. “Health is not valued till sickness comes.” Anonymous.
Money Mistakes
Money Mistakes. How To Avoid Them
“Money is a huge deal in every one’s life. It has to be managed well, otherwise one would run the risk of having financial difficulties in the future” KH Tan, a financial planner.
What are the mistakes?
Not Budgeting
The root of financial problem begin with our failure to plan ahead and set financial goal. Budgeting is the first step of financial success. Budgeting enables one to manage his or her finances and be in control of his or her financial affairs.
Impulsive Spending
Wealth is commonly destroyed because of uncontrolled spending. One cent spend is one cent loss. Unrestrained spending can turn into habit of wastage and create mountain of debts.
Debt Bondage
Credit card is a useful tool but it can be a tool to accumulate debt too. In Malaysia, 1,656 were declared bankrupt in 2006 cause by credit card alone. Nationwide there are 3.2 million being declared bankrupt. According to Bank Negara in July 2010, 50% of credit card holders who had been declared bankrupt were below 30 years old.
No Saving
Locally renowed millionaire, Azizi Ali said “The one essential step to achieving financial independence is learning how to save.” One of the habits of a millionaire is to consistently saving a portion of your income.
No Sound Investment
Conventional saving alone cannot grow one’s wealth because interest rate do not compensate well due to inflation. Therefore, it is necessary to put one’s money in other investment instrument like stocks, bonds and unit trust.
“Money is a huge deal in every one’s life. It has to be managed well, otherwise one would run the risk of having financial difficulties in the future” KH Tan, a financial planner.
What are the mistakes?
Not Budgeting
The root of financial problem begin with our failure to plan ahead and set financial goal. Budgeting is the first step of financial success. Budgeting enables one to manage his or her finances and be in control of his or her financial affairs.
Impulsive Spending
Wealth is commonly destroyed because of uncontrolled spending. One cent spend is one cent loss. Unrestrained spending can turn into habit of wastage and create mountain of debts.
Debt Bondage
Credit card is a useful tool but it can be a tool to accumulate debt too. In Malaysia, 1,656 were declared bankrupt in 2006 cause by credit card alone. Nationwide there are 3.2 million being declared bankrupt. According to Bank Negara in July 2010, 50% of credit card holders who had been declared bankrupt were below 30 years old.
No Saving
Locally renowed millionaire, Azizi Ali said “The one essential step to achieving financial independence is learning how to save.” One of the habits of a millionaire is to consistently saving a portion of your income.
No Sound Investment
Conventional saving alone cannot grow one’s wealth because interest rate do not compensate well due to inflation. Therefore, it is necessary to put one’s money in other investment instrument like stocks, bonds and unit trust.
Friday, September 24, 2010
Vitrox Berhad
Vitrox-At An Inflection Point (CIMB )
This vision inspection equipment maker is on the cusp of explosive growth, having successfully executed its business re-engineering. It is well-placed to tap into the vast revenue opportunity of US$1.0bn-1.2bn p.a. presented by its new area of manufacture as it rides on its association with Agilent. Vitrox (VITRO MK, Not Rated) will benefit from Agilent’s technology, channel partners, supply chain and outsourcing, and shorter product development cycle.
The key drivers are i) its takeover of Agilent’s market share for AOI and AXI machines, ii) the drive towards more automated vision inspection, iii) a wider product offering, and iv) margin expansion possibilities.
Vitrox is trading at 5.5 x FY11 P/E, a 25% discount to its peers due to its smaller market cap, lower ROE and dividend yield. If we were to apply a 20-30% P/E discount to its peers on FY12 EPS to factor in execution risks, potential shortfall in market share targets and Vitrox’s smaller size, we would arrive at a valuation of RM1.83-2.09, which offers upside of 61-83% from current levels. Vitrox is at an inflection point, buoyed by its new AOI and AXI machines which have been gaining rapid acceptance
Posted by Smartbiz
Financial position as at 30 June 2010
NTA RM0.41
Cash RM28.9 mil
Borrowings RM0.00
1Q EPS RM0.0288 ( Profit RM4.895 mil; Turnover RM12.98 mil )
2Q EPS RM0.0648 ( Profit RM9.874 mil; Turnover RM26.12 mil )
Projected Annualised EPS RM0.2232
Projected Annualised net profit RM34 mil
Share Capital RM15.5 mil
Share Premium RM1.22 mil
Treasury Share (RM1.022 mil)
Retained Earning RM47.61 mil
Shareholders Fund RM63.3 mil
Non Current Asset RM16.09 mil
Current Asset RM62.258 mil
Current Liabilities RM14.457 mil
Long Term Liabilities RM0.581 mil
Number of share buy back 2,714,700
Number of shares 155.5 million
Watch out for the announcement on its 3rd quarter profit. Good counter to invest since its earning is on an uptrend.
Fair price is RM2.20 ( 10 x its EPS if its performance is maintained )
This vision inspection equipment maker is on the cusp of explosive growth, having successfully executed its business re-engineering. It is well-placed to tap into the vast revenue opportunity of US$1.0bn-1.2bn p.a. presented by its new area of manufacture as it rides on its association with Agilent. Vitrox (VITRO MK, Not Rated) will benefit from Agilent’s technology, channel partners, supply chain and outsourcing, and shorter product development cycle.
The key drivers are i) its takeover of Agilent’s market share for AOI and AXI machines, ii) the drive towards more automated vision inspection, iii) a wider product offering, and iv) margin expansion possibilities.
Vitrox is trading at 5.5 x FY11 P/E, a 25% discount to its peers due to its smaller market cap, lower ROE and dividend yield. If we were to apply a 20-30% P/E discount to its peers on FY12 EPS to factor in execution risks, potential shortfall in market share targets and Vitrox’s smaller size, we would arrive at a valuation of RM1.83-2.09, which offers upside of 61-83% from current levels. Vitrox is at an inflection point, buoyed by its new AOI and AXI machines which have been gaining rapid acceptance
Posted by Smartbiz
Financial position as at 30 June 2010
NTA RM0.41
Cash RM28.9 mil
Borrowings RM0.00
1Q EPS RM0.0288 ( Profit RM4.895 mil; Turnover RM12.98 mil )
2Q EPS RM0.0648 ( Profit RM9.874 mil; Turnover RM26.12 mil )
Projected Annualised EPS RM0.2232
Projected Annualised net profit RM34 mil
Share Capital RM15.5 mil
Share Premium RM1.22 mil
Treasury Share (RM1.022 mil)
Retained Earning RM47.61 mil
Shareholders Fund RM63.3 mil
Non Current Asset RM16.09 mil
Current Asset RM62.258 mil
Current Liabilities RM14.457 mil
Long Term Liabilities RM0.581 mil
Number of share buy back 2,714,700
Number of shares 155.5 million
Watch out for the announcement on its 3rd quarter profit. Good counter to invest since its earning is on an uptrend.
Fair price is RM2.20 ( 10 x its EPS if its performance is maintained )
Monday, July 19, 2010
Stock Market Is Full Of Opportunities
“Hidden in troubles, lies the key to our magnificent opportunity.” Albert Einstein.
Be aware of opportunities. It comes in our life at the critical moment that we have to make major decision and this decision has far reaching consequences on our future direction of our life.
“We are told that talent creates its own opportunities, but it sometimes seems that intense desire creates not only its own opportunities, but its own talents.” Eric Hoffer.
Dr. Booker T Washington said, “I have found that success is measures not so much by the position attained in life as by the obstacles which have been overcome in attaining that position.”
Learn to differentiate between genuine opportunities that may disguise as something good. Give yourself time to ponder and allow your instincts to reason and make decision. Take advice from friends you trust and beware of friends with vested interest.
“America is only another name for opportunity.” Ralph Waldo Emerson.
Be aware of opportunities. It comes in our life at the critical moment that we have to make major decision and this decision has far reaching consequences on our future direction of our life.
“We are told that talent creates its own opportunities, but it sometimes seems that intense desire creates not only its own opportunities, but its own talents.” Eric Hoffer.
Dr. Booker T Washington said, “I have found that success is measures not so much by the position attained in life as by the obstacles which have been overcome in attaining that position.”
Learn to differentiate between genuine opportunities that may disguise as something good. Give yourself time to ponder and allow your instincts to reason and make decision. Take advice from friends you trust and beware of friends with vested interest.
“America is only another name for opportunity.” Ralph Waldo Emerson.
Friday, July 9, 2010
Mr Warren Buffett Taught Peter To Fish
The son of billionaire investor Warren Buffett has an old-world spiritual message for today's money-rich parents: teach your children values and do not give them everything they want.
Musician and now author Peter Buffett said “Economic prosperity may come and go; that's just how it is," he writes in the book. "But values are the steady currency that earn us the all-important rewards."
Musician and now author Peter Buffett said “Economic prosperity may come and go; that's just how it is," he writes in the book. "But values are the steady currency that earn us the all-important rewards."
Look At Your Self - Uriah Heep
A young couple moves into a new neighborhood. The next morning, while they are eating breakfast, the young woman sees her neighbor hang the wash outside.
That laundry is not very clean, she said, she doesn't know how to wash correctly. Perhaps she needs better laundry soap.
Her husband looked on, but remained silent. Every time her neighbor would hang her wash to dry, the young woman would make the same comments.
About one month later, the woman was surprised to see a nice clean wash on the line and said to her husband: "Look! She has learned how to wash correctly. I wonder who taught her this."
The husband said: "I got up early this morning and cleaned our windows!"
And so it is with life: "What we see when watching others depends on the purity of the window through which we look. Before we give any criticism, it might be a good idea to check our state of mind and ask ourselves if we are ready to see the good rather than to be looking for something in the person we are about to judge. "
That laundry is not very clean, she said, she doesn't know how to wash correctly. Perhaps she needs better laundry soap.
Her husband looked on, but remained silent. Every time her neighbor would hang her wash to dry, the young woman would make the same comments.
About one month later, the woman was surprised to see a nice clean wash on the line and said to her husband: "Look! She has learned how to wash correctly. I wonder who taught her this."
The husband said: "I got up early this morning and cleaned our windows!"
And so it is with life: "What we see when watching others depends on the purity of the window through which we look. Before we give any criticism, it might be a good idea to check our state of mind and ask ourselves if we are ready to see the good rather than to be looking for something in the person we are about to judge. "
Advice From Mr Warren Buffett
"The power of unconditional love. I mean, there is no power on earth like unconditional love. And I think that if you offered that to your child, I mean, you’re 90 percent of the way home. There may be days when you don’t feel like it — it’s not uncritical love; that’s a different animal — but to know you can always come back, that is huge in life. That takes you a long, long way. And I would say that every parent out there that can extend that to their child at an early age, it’s going to make for a better human being."
Sunday, July 4, 2010
Competence....Who Are You? The Who !!!!!
“The day you stop learning is the day that you start decreasing your rewards and start suffering from frustration and lower levels satisfaction.” Brian Tracy.
Competence as defined in Collins Cobuild dictionary as, “is the ability to do something well or effectively.” Someone who is competent has the ability, knowledge and skill to do something in an efficient and effective way.
“Formal education will make you a living; self-education will make you a fortune.” Jim Rohn.
A PhD in engineering does not automatically make you a competent engineer. You must have the knowledge and the practical skills to be called competent.
Practice makes you competent. Vash Young said, “Any experience can be transformed into something of value.”
Don’t take shortcuts. Master your jobs and you will be the master of your destiny in the corporate world.
“Feed your mind with mental protein, not mental candy. Read, listen to and watch positive uplifting material.” Brian Tracy.
Competence as defined in Collins Cobuild dictionary as, “is the ability to do something well or effectively.” Someone who is competent has the ability, knowledge and skill to do something in an efficient and effective way.
“Formal education will make you a living; self-education will make you a fortune.” Jim Rohn.
A PhD in engineering does not automatically make you a competent engineer. You must have the knowledge and the practical skills to be called competent.
Practice makes you competent. Vash Young said, “Any experience can be transformed into something of value.”
Don’t take shortcuts. Master your jobs and you will be the master of your destiny in the corporate world.
“Feed your mind with mental protein, not mental candy. Read, listen to and watch positive uplifting material.” Brian Tracy.
A Reminder - Walking For Exercise
Exercise must be something that you enjoy doing, NOT something that you must do. One of the most practical and enjoyable exercises is WALKING.
Charles Dicken once said, "Walk and be happy, walk and be healthy. The best of all ways to lenghten our days is to walk, steadily and with a purpose."
The benefit of walking were revealed in a Health Insurance Study of 110,000 people in New York City. At the end of the time, 41% of the nonwalkers were dead, while only 23% of the walkers were.
Walking is as essential to the human body as breathing. It is a muscular symphony, where all the muscles and parts of our body moves as we walk.
Have positive attitude. A lively fresh outlook is essential for enjoyable living at any age.
Mark Twain said, "Whatever a man's age he can reduce it several years by putting a bright-coloured flower in his buttonhole."
Charles Dicken once said, "Walk and be happy, walk and be healthy. The best of all ways to lenghten our days is to walk, steadily and with a purpose."
The benefit of walking were revealed in a Health Insurance Study of 110,000 people in New York City. At the end of the time, 41% of the nonwalkers were dead, while only 23% of the walkers were.
Walking is as essential to the human body as breathing. It is a muscular symphony, where all the muscles and parts of our body moves as we walk.
Have positive attitude. A lively fresh outlook is essential for enjoyable living at any age.
Mark Twain said, "Whatever a man's age he can reduce it several years by putting a bright-coloured flower in his buttonhole."
High Determination Brings Success
Thomas Edition once said “The three great essentials to achieve anything worthwhile are first, hard work, second, stick-to-itiveness, third, common sense.”
Determination is the quality of being firmly committed to doing something.
“There is nothing in the world like the devotion of a married woman. It’s a thing no married man knows anything about.” Oscar Wilde.
Determination gives strength of purpose to everything you do. You decide your own destiny. “Take control of your destiny. Believe in yourself. Ignore those who try to discourage you. Avoid negative sources, people, places, things and habits. Don’t give up and don’t give in.” Wanda Carter.
“Failure will never overtake me if my determination to succeed is strong enough.” Og Mandino.
“The only limits to the possibilities in your life tomorrow are the ‘buts’ you use today.” Les Brown.
Determination is the quality of being firmly committed to doing something.
“There is nothing in the world like the devotion of a married woman. It’s a thing no married man knows anything about.” Oscar Wilde.
Determination gives strength of purpose to everything you do. You decide your own destiny. “Take control of your destiny. Believe in yourself. Ignore those who try to discourage you. Avoid negative sources, people, places, things and habits. Don’t give up and don’t give in.” Wanda Carter.
“Failure will never overtake me if my determination to succeed is strong enough.” Og Mandino.
“The only limits to the possibilities in your life tomorrow are the ‘buts’ you use today.” Les Brown.
Sunday, June 20, 2010
My Simple Investment Rule Is Working
My investment rule is simple, "Just Buy Index Fund" However the timing of buying and accumulating must be at the time when the index is at its lower point. Sell when the index is at a reasonably high point to realise your profit.
Do you have the patience to pay yourself a return of 100%?
Two of Mr Warren Buffett's secret on investment:
“By periodically investing in an index fund, the know nothing investor can actually outperform most investment professionals.”
“A low cost index fund is the most sensible equity investments for the great majority of investors. My mentor Ben Graham took this position many years ago and everything I have seen since convinces me of its truth.”
Do you have the patience to pay yourself a return of 100%?
Two of Mr Warren Buffett's secret on investment:
“By periodically investing in an index fund, the know nothing investor can actually outperform most investment professionals.”
“A low cost index fund is the most sensible equity investments for the great majority of investors. My mentor Ben Graham took this position many years ago and everything I have seen since convinces me of its truth.”
EKUINAS
EKUINAS ( Equity National Berhad ) was set up by Malaysian government with special emphasis to invest in high potential medium sized companies to be supported to become champion and leaders in their respective sectors. PM said on 10.6.2010.
The first company EKUINAS invested recently was Tanjong Offshore Berhad.
BE A WINNER.
“Winning isn’t everything but wanting to win is.” Vince Lombardi.
Have you ever asked yourself, “Am I the high achiever type?” Do you crave to be the best and satisfied with what you have achieved so far?
Remember, it is you who can set the limits and parameters on the level and type of achievement you want. Only you set your own boundaries of achievement and success. “I am a great believer in luck, and the harder I work, the more I have of it.” Stephen Leacock.
Being achievement oriented is the most laudable characteristic. Being a high achiever type is one who is highly motivated, who are goal focused and who knows that he can achieve his dream.
“No man had ever a defect that was not somewhere made useful to him.” Emersion.
“Kites rise against, not with the wind. No man ever worked his passage anywhere in a dead calm.” John Neal.
The first company EKUINAS invested recently was Tanjong Offshore Berhad.
BE A WINNER.
“Winning isn’t everything but wanting to win is.” Vince Lombardi.
Have you ever asked yourself, “Am I the high achiever type?” Do you crave to be the best and satisfied with what you have achieved so far?
Remember, it is you who can set the limits and parameters on the level and type of achievement you want. Only you set your own boundaries of achievement and success. “I am a great believer in luck, and the harder I work, the more I have of it.” Stephen Leacock.
Being achievement oriented is the most laudable characteristic. Being a high achiever type is one who is highly motivated, who are goal focused and who knows that he can achieve his dream.
“No man had ever a defect that was not somewhere made useful to him.” Emersion.
“Kites rise against, not with the wind. No man ever worked his passage anywhere in a dead calm.” John Neal.
Tuesday, May 25, 2010
May Be This Is The Time
The stock market is on the down trend. But hei don't be disheartened. In every diversity there is always an opportunity. I am looking forward for the market to go down further. This may be the chance for us to make a killing.
Public Index Fund is trading at RM0.6358 as at 25th May 2010. Looking forward for the price to go down to RM0.45.
Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish.” John Quincy Adams
Persevere is to continue to do something in spite of difficulty. The best way to handle tough responsibilities is to persevere. All new assignments at the beginning are difficult but perseverance can make it a success.
“O’ the mass of arms, the brilliant leadership, the courage and the magnitude of the ancient armies of Greece, combined to conquer the city of Troy; all that, and ten years of perseverance.” Hipponax, The satirist.
Top job demand high responsibility. Unless we persevere, we cannot maintain the top job all the time.
“The ocean of possibilities is enormously inviting, yet terribly threatening. For most of us the problem is not a lack of potential, it’s a lack of perseverance; not a problem of “having the goods” but of “hearing the bad”. Jay Strack.
Louis Pasteur once said, “Let me tell you the secret that has led me to my goal. Mt strength lies solely in my tenacity.”
Public Index Fund is trading at RM0.6358 as at 25th May 2010. Looking forward for the price to go down to RM0.45.
Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish.” John Quincy Adams
Persevere is to continue to do something in spite of difficulty. The best way to handle tough responsibilities is to persevere. All new assignments at the beginning are difficult but perseverance can make it a success.
“O’ the mass of arms, the brilliant leadership, the courage and the magnitude of the ancient armies of Greece, combined to conquer the city of Troy; all that, and ten years of perseverance.” Hipponax, The satirist.
Top job demand high responsibility. Unless we persevere, we cannot maintain the top job all the time.
“The ocean of possibilities is enormously inviting, yet terribly threatening. For most of us the problem is not a lack of potential, it’s a lack of perseverance; not a problem of “having the goods” but of “hearing the bad”. Jay Strack.
Louis Pasteur once said, “Let me tell you the secret that has led me to my goal. Mt strength lies solely in my tenacity.”
Saturday, May 22, 2010
Understanding Human Needs
“Treat people as if they were what they ought to be and you help them to become what they are capable of being.” Johann W. Von Goethe.
Understanding human’s needs is the key to motivation. We have to combine common sense, understanding of human psychology and sensitivity to human’s feeling when dealing with motivating a person.
“If you make the obvious effort to be accommodating, sympathetic, and kind, business will transpire, and deals will be made; profits and goals will be realized.” Letitia Baldridge.
Money is a powerful motivating factor but job satisfaction, job enrichment, security, social esteem, trust and responsibility and opportunities for achieving excellence are equally important.
“There’s only one thing money won’t buy, and that’s poverty.” Joe E. Lewis.
Balance both these factors to achieve maximum motivation.
Understanding human’s needs is the key to motivation. We have to combine common sense, understanding of human psychology and sensitivity to human’s feeling when dealing with motivating a person.
“If you make the obvious effort to be accommodating, sympathetic, and kind, business will transpire, and deals will be made; profits and goals will be realized.” Letitia Baldridge.
Money is a powerful motivating factor but job satisfaction, job enrichment, security, social esteem, trust and responsibility and opportunities for achieving excellence are equally important.
“There’s only one thing money won’t buy, and that’s poverty.” Joe E. Lewis.
Balance both these factors to achieve maximum motivation.
Thursday, May 20, 2010
Opportunity In Adversity
Public Index Fund is trading at RM0.6537 as at 21st May 2010. For those of you who have a medium to long term investment horizon, it is about the right time to draw your EPF and buy unit trust.
I hope the price will goes down further so I can start buying again. Please read on my write up on the advantage of Ringgit Cost Averaging.
"A habit cannot be tossed out the window, it must be coaxed down the stairs a step at a time." Mark Twain.
I hope the price will goes down further so I can start buying again. Please read on my write up on the advantage of Ringgit Cost Averaging.
"A habit cannot be tossed out the window, it must be coaxed down the stairs a step at a time." Mark Twain.
Wednesday, May 19, 2010
Amount You Need To Maintain Your Present Lifestyle
Let say you are now having a take home pay of RM5,000 a month and with this amount you are financially confortable and happy. Not taking into consideration inflation and future value of money, all you need to have in your investment can be calculated as follows:
Let assume that you can invest in ASB or unit trust earning an average return of 10%. The amount of money you need a year is RM60,000 (RM5,000 x 12 months ). Therefore the amount of investment you need to invest is RM600,000 ( RM60,000 / 10% ). It is only after the first year you are allowed to draw RM5,000 a month. The caveat here is you have to wait for 1 year before you can pay yourself RM5,000 ( maximum ) a month. The principalhave to left intact all the time.
If you need RM10,000 a month, the amount invested is RM1,200,000. It is not impossible for a retired husbang and wife to come out with combined EPF of RM1.2 million.
Let assume that you can invest in ASB or unit trust earning an average return of 10%. The amount of money you need a year is RM60,000 (RM5,000 x 12 months ). Therefore the amount of investment you need to invest is RM600,000 ( RM60,000 / 10% ). It is only after the first year you are allowed to draw RM5,000 a month. The caveat here is you have to wait for 1 year before you can pay yourself RM5,000 ( maximum ) a month. The principalhave to left intact all the time.
If you need RM10,000 a month, the amount invested is RM1,200,000. It is not impossible for a retired husbang and wife to come out with combined EPF of RM1.2 million.
Saturday, May 15, 2010
Compound Interest Concept
Compound interest concept can be explained by looking at how much you can get from RM10,000 initial investment after 20 years.
Using the compound interest formula, the value of a compound interest investment after ‘n’ interest periods is calculated as:
FV = PV( 1 + i )n
where:
‘FV’ = Future value after ‘n’ interest periods.
‘PV’ = Present value of Principal,
‘i’ = the interest rate applying to each period.
‘n’ = the number of interest periods (number of years for per annum computation)
Thus the future value (FV) of RM10,000 in 20 years:
When Interest rate is 10%
FV= RM67,275
When Interest rate is 15%
FV = RM163,665
When Interest rate is 25%
FV = RM867,362
In fact, an equity fund can give you 100% return in a year or it makes a loss of 99% in extreme bear market. If your portfolio can produce 15% return per annum consistently, that’s already fantastic.
Using the compound interest formula, the value of a compound interest investment after ‘n’ interest periods is calculated as:
FV = PV( 1 + i )n
where:
‘FV’ = Future value after ‘n’ interest periods.
‘PV’ = Present value of Principal,
‘i’ = the interest rate applying to each period.
‘n’ = the number of interest periods (number of years for per annum computation)
Thus the future value (FV) of RM10,000 in 20 years:
When Interest rate is 10%
FV= RM67,275
When Interest rate is 15%
FV = RM163,665
When Interest rate is 25%
FV = RM867,362
In fact, an equity fund can give you 100% return in a year or it makes a loss of 99% in extreme bear market. If your portfolio can produce 15% return per annum consistently, that’s already fantastic.
Thursday, May 13, 2010
Advantage of Ringgit Cost Averaging
Say investor A
Invest in Fund A with the amount of RM 10,000, NAV RM0.2800, service charge is 5.5% (cash investment) or 3% (epf investment).
Amount goes into investment; 100/105.5 X RM 10,000. = RM 9478.67
Unit acquire; RM 9478.67 / 0.2800 = 33852.4 units.
Cost per unit; RM 10,000 / 33852.4 units = RM 0.2954
In the event of the market downturn; say NAV of Fund A is RM 0.1800.
Option 1,
(Without Averaging Down the Cost.)
Investor A has to wait for the NAV of Fund A to go up from RM 0.1800 back to RM 0.2954 to reach the break event point.
Option 2,
(Applying the Averaging Down Cost Approach)
Say investor B (invest same time as investor A)
Decided another cash investment of RM 10,000, at NAV RM 0.1800,
Amount goes into investment; 100/105.5 X RM 10,000 = RM 9478.67
Unit acquire; RM 9478.67 / 0.1800 = 52659.3 units.
Cost per unit; RM 10.000 / 52659.3units = RM 0.1899
Therefore, total amount invested; RM 20,000
Total units acquire; 33852.4 + 52659.3 = 86511.7 units.
Average cost per unit; RM 20,000 / 86511.7 units = RM 0.2312.
In the event the NAV of Fund A going up from RM 0.1800 to RM 0.2954,
1) Value of the investment of Investor A
33,852.4 units X RM 0.2954 = RM 10,000.00
Investor A only manage to get back his /her investment amount (provided if there is no dividend @ unit increase on the investment)
2) Value of the investment of Investor B
86,511.7 X RM 0.2954 = RM 25,555.56
Profit; RM 25,555.56 – RM 20,000 = RM 5,555.56
Therefore : % Net Profit = RM 5,555.56 / RM 20,000 = 27.78%. (the calculations exclude any dividend payment, if any)
Conclusion
By applying the Dollar Cost Averaging concept, the investor will acquire more units from the investment made during the market downturn, thus lower his cost per unit & enable him to earn more profits when the NAV of the fund going up.
Invest in Fund A with the amount of RM 10,000, NAV RM0.2800, service charge is 5.5% (cash investment) or 3% (epf investment).
Amount goes into investment; 100/105.5 X RM 10,000. = RM 9478.67
Unit acquire; RM 9478.67 / 0.2800 = 33852.4 units.
Cost per unit; RM 10,000 / 33852.4 units = RM 0.2954
In the event of the market downturn; say NAV of Fund A is RM 0.1800.
Option 1,
(Without Averaging Down the Cost.)
Investor A has to wait for the NAV of Fund A to go up from RM 0.1800 back to RM 0.2954 to reach the break event point.
Option 2,
(Applying the Averaging Down Cost Approach)
Say investor B (invest same time as investor A)
Decided another cash investment of RM 10,000, at NAV RM 0.1800,
Amount goes into investment; 100/105.5 X RM 10,000 = RM 9478.67
Unit acquire; RM 9478.67 / 0.1800 = 52659.3 units.
Cost per unit; RM 10.000 / 52659.3units = RM 0.1899
Therefore, total amount invested; RM 20,000
Total units acquire; 33852.4 + 52659.3 = 86511.7 units.
Average cost per unit; RM 20,000 / 86511.7 units = RM 0.2312.
In the event the NAV of Fund A going up from RM 0.1800 to RM 0.2954,
1) Value of the investment of Investor A
33,852.4 units X RM 0.2954 = RM 10,000.00
Investor A only manage to get back his /her investment amount (provided if there is no dividend @ unit increase on the investment)
2) Value of the investment of Investor B
86,511.7 X RM 0.2954 = RM 25,555.56
Profit; RM 25,555.56 – RM 20,000 = RM 5,555.56
Therefore : % Net Profit = RM 5,555.56 / RM 20,000 = 27.78%. (the calculations exclude any dividend payment, if any)
Conclusion
By applying the Dollar Cost Averaging concept, the investor will acquire more units from the investment made during the market downturn, thus lower his cost per unit & enable him to earn more profits when the NAV of the fund going up.
Wednesday, May 12, 2010
Do You Know?
Do you know that there are 3,548 people declared bankrupt because of credit card debts in Malaysia?
1,774 or 50% of them were below 30 years old. As at 30th March 2009, Malaysia's credit card debt amounting to RM23.3 billion.
Young urban Malaysian are actually managing debt rather than their finances. Cash flow to our financial well being is like our blood flow to our body. Any disruption to our cash flow will affect our success in life just like when if our blood is infected, we get sick.
Just like exercise is so important to our health, financial planning exercise is crucial to achieving our financial goals.
1,774 or 50% of them were below 30 years old. As at 30th March 2009, Malaysia's credit card debt amounting to RM23.3 billion.
Young urban Malaysian are actually managing debt rather than their finances. Cash flow to our financial well being is like our blood flow to our body. Any disruption to our cash flow will affect our success in life just like when if our blood is infected, we get sick.
Just like exercise is so important to our health, financial planning exercise is crucial to achieving our financial goals.
Sunday, May 9, 2010
Be Humble In Investing
By staying humble, we will at least have a chance to recognise and acknowledge a mistake, if and when we do make a mistake.
And when we do, it's utmost imperial that we correct our mistake(s) immediately and not hope and pray for the market to correct our mistake(s) for life is never always that kind to all of us.
Now if one is arrogant, would one ever admit that perhaps one is wrong in their stock selection?
"Only fools refuse to be taught. Wisdom calls out in a loud voice waiting to be heard." Proverbs
And when we do, it's utmost imperial that we correct our mistake(s) immediately and not hope and pray for the market to correct our mistake(s) for life is never always that kind to all of us.
Now if one is arrogant, would one ever admit that perhaps one is wrong in their stock selection?
"Only fools refuse to be taught. Wisdom calls out in a loud voice waiting to be heard." Proverbs
Tuesday, May 4, 2010
The Importance Of Timing In Investing
If you believe me, it is true that “timing is everything” in investing strategy. It is even more true for politicians, actors, comedians, singers, and athletes. They all rely on timing as a key skill in their success. Putting yourself in the right place at the right time is a crucial part of the skill for some kind of success.
Successful investors create their own luck, take calculated risks, and put themselves in situations where they can take advantage of investment timing opportunities. Investment timing can make or break the investment opportunity. Many people have haphazardly entered the stock market at the wrong time and made very hugh losses or little profit.
The best investment advice is to continually develop your investment timing skills and be able to recognize opportunities as soon as they arise. Think laterally, broaden your perspective, and learn how to predict how local and world events will shape things financially. Then take calculated risks based on those factors. If you can get comfortable with this new kind of thinking, then you will benefit from investment opportunities that others miss.
A good case study is when I bought index linked unit trust fund when the market at its lowest and sold it when the market was high. I made a profit of 44% within 9 months. Now I am heavily invested in the same fund and hope to make another killing.
"What is being said is that the market makes all the decisions. Our only decision is to listen to the market and obey its signals. Always and without exception. Remember the market never lies. It is only we lie to ourselves." The Zen Of Trading
Successful investors create their own luck, take calculated risks, and put themselves in situations where they can take advantage of investment timing opportunities. Investment timing can make or break the investment opportunity. Many people have haphazardly entered the stock market at the wrong time and made very hugh losses or little profit.
The best investment advice is to continually develop your investment timing skills and be able to recognize opportunities as soon as they arise. Think laterally, broaden your perspective, and learn how to predict how local and world events will shape things financially. Then take calculated risks based on those factors. If you can get comfortable with this new kind of thinking, then you will benefit from investment opportunities that others miss.
A good case study is when I bought index linked unit trust fund when the market at its lowest and sold it when the market was high. I made a profit of 44% within 9 months. Now I am heavily invested in the same fund and hope to make another killing.
"What is being said is that the market makes all the decisions. Our only decision is to listen to the market and obey its signals. Always and without exception. Remember the market never lies. It is only we lie to ourselves." The Zen Of Trading
Saturday, May 1, 2010
Investing In Public Index Fund
I write to share with you the benefits of investing in unit trust that are manage by Public Mutual Berhad, a subsidiary of Public Bank Berhad as compared to investing in other type of investment instruments such as fixed deposit, Tabung Haji, Employee Providend Fund and Amanah Saham Bumiputra .
Why Public Index Fund
It is simply because Public Index Fund can potentially give an average return of 20% per annum as compared to Fixed Deposit ( 4% ), Tabung Haji ( 5.5% ), Employee Providend Fund ( 5.65% ) ans Amanah Saham Bumiputra ( 9% ).
My Investment Is The Proof
Friend, you may think I am making up stories but let me show you how much I get from investing RM113,200 in Public Index Fund. As at 30th April 2010 closing price, my investment value is RM139,870, giving a profit of RM26,670 which in turn giving a margin of 23.56%.
My average price is RM0.60. In year 2009 and 2010, Public Index Fund declared dividend of 7 cents and 5 cents respectively.
Just for your information, for every one (1) cent increase in the market price, my investment is making additional profit of RM2,027.40. Therefore the more units you have, the higher the quantum of profit you make. I advise you to withdraw as much as possible from your EPF account to take advantage of this investment opportunities.
Average Returns From Other Public Mutual Funds
10 Years 5 Years 3 Years
Public Index Fund 23% 26% 24%
Public Saving Fund 24% 29% 25%
Public Itikal Fund 21% 26% 25%
My Investment Strategy
My investment strategy is simple , “buy when low and sell when high” and that is why Public Index Fund is my choice. If you buy now at RM0.68, you may be able to make a gain or profit of RM0.32 for every units you purchase because the highest market price of PIX was at RM1.02 in November 2007 when the KLCI was at its peak of 1,500. Now the KLCI is 1,330.
KLCI index is supported by our government and fund managers . Public Index Fund invested in nearly all the 30 companies that are in the basket of KLCI index.
You don’t have to worry as I will monitor your investment and advise you when to buy and sell. If you are still not convinced, you may try investing RM1,000 first and see how it grows.
How To Invest
Investing in unit trust is easy. Minimum initial investment is RM1,000. You may either invest in cash or through withdrawing your EPF in account 1. All you need to do is to sign and have your thumb print on the form.
I conclude with what Confucius once said, “A journey of a thousand miles begins with the first step.” Take action now because procrastination is very costly. This is illustrated by the story of Tim and Tom.
Why Public Index Fund
It is simply because Public Index Fund can potentially give an average return of 20% per annum as compared to Fixed Deposit ( 4% ), Tabung Haji ( 5.5% ), Employee Providend Fund ( 5.65% ) ans Amanah Saham Bumiputra ( 9% ).
My Investment Is The Proof
Friend, you may think I am making up stories but let me show you how much I get from investing RM113,200 in Public Index Fund. As at 30th April 2010 closing price, my investment value is RM139,870, giving a profit of RM26,670 which in turn giving a margin of 23.56%.
My average price is RM0.60. In year 2009 and 2010, Public Index Fund declared dividend of 7 cents and 5 cents respectively.
Just for your information, for every one (1) cent increase in the market price, my investment is making additional profit of RM2,027.40. Therefore the more units you have, the higher the quantum of profit you make. I advise you to withdraw as much as possible from your EPF account to take advantage of this investment opportunities.
Average Returns From Other Public Mutual Funds
10 Years 5 Years 3 Years
Public Index Fund 23% 26% 24%
Public Saving Fund 24% 29% 25%
Public Itikal Fund 21% 26% 25%
My Investment Strategy
My investment strategy is simple , “buy when low and sell when high” and that is why Public Index Fund is my choice. If you buy now at RM0.68, you may be able to make a gain or profit of RM0.32 for every units you purchase because the highest market price of PIX was at RM1.02 in November 2007 when the KLCI was at its peak of 1,500. Now the KLCI is 1,330.
KLCI index is supported by our government and fund managers . Public Index Fund invested in nearly all the 30 companies that are in the basket of KLCI index.
You don’t have to worry as I will monitor your investment and advise you when to buy and sell. If you are still not convinced, you may try investing RM1,000 first and see how it grows.
How To Invest
Investing in unit trust is easy. Minimum initial investment is RM1,000. You may either invest in cash or through withdrawing your EPF in account 1. All you need to do is to sign and have your thumb print on the form.
I conclude with what Confucius once said, “A journey of a thousand miles begins with the first step.” Take action now because procrastination is very costly. This is illustrated by the story of Tim and Tom.
Cost Of Procrastination
The Cost Of Procrastination.
Collins Cobuild dictionary says if we procrastinate, we are slow to do something because we keep leaving it until later.
The root core of the term is from Latin - two Latin words "pro" meaning "forward, in favor of," and "crastinus" meaning "of tomorrow". Consequently, it clearly means putting forth or in favor of tomorrow.
Procrastination can be beneficial in some cases. Procrastination sometimes can prevent us from making some serious mistakes like we may not have enough information that we need to start up a project or it may not be the best time for us to get into business. If procrastination becomes advantageous in this way, then it accomplishes a good goal otherwise and in 95% cases – they are detrimental – they are real destiny killers.
The disadvantage of procrastination becomes more glaring in the investment world when we do not take immediate action to invest in the right product at the right time when the opportunity arises. Lost opportunities will definitely cost us money.
A case to show that procrastination cost us money is illustrated by the action of Tim and Tom. Tim started investing RM1,000 every year for ten years since he is 18 years old. He stop investing at the age of 27 and let his investment grow. Assuming at 10% compounded growth, at the age of 65, Tim received RM655,617.00.
Tom on the other hand waited 10 years after he was 18, then he invest RM1,000 a year for the next 38 years. He received RM441,536.00 when he reach 65.
Tim invested only RM10,000 and it multiplied 65-fold, while Tom invested RM39,000 and multiplied only 10-fold. Tom’s opportunity loss is RM214,081.00.
Collins Cobuild dictionary says if we procrastinate, we are slow to do something because we keep leaving it until later.
The root core of the term is from Latin - two Latin words "pro" meaning "forward, in favor of," and "crastinus" meaning "of tomorrow". Consequently, it clearly means putting forth or in favor of tomorrow.
Procrastination can be beneficial in some cases. Procrastination sometimes can prevent us from making some serious mistakes like we may not have enough information that we need to start up a project or it may not be the best time for us to get into business. If procrastination becomes advantageous in this way, then it accomplishes a good goal otherwise and in 95% cases – they are detrimental – they are real destiny killers.
The disadvantage of procrastination becomes more glaring in the investment world when we do not take immediate action to invest in the right product at the right time when the opportunity arises. Lost opportunities will definitely cost us money.
A case to show that procrastination cost us money is illustrated by the action of Tim and Tom. Tim started investing RM1,000 every year for ten years since he is 18 years old. He stop investing at the age of 27 and let his investment grow. Assuming at 10% compounded growth, at the age of 65, Tim received RM655,617.00.
Tom on the other hand waited 10 years after he was 18, then he invest RM1,000 a year for the next 38 years. He received RM441,536.00 when he reach 65.
Tim invested only RM10,000 and it multiplied 65-fold, while Tom invested RM39,000 and multiplied only 10-fold. Tom’s opportunity loss is RM214,081.00.
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