May 16 2011, 08:56 PM
QUOTE(wongmunkeong @ May 13 2011, 12:40 PM)
Yup yup - agreed. Risk management's the name of the game and continuous learning to manage risks is my goal - what to do, no silver spoon.
Some people say stocks (thus Equity mutual funds / unit trusts) are too risky but they do not realize that even driving is risky. A neophyte driving VS a learned & experience driver (especially having survived in India or Jakarta
) has a vast difference in risk due to learning & experience.
Finally a risk mgt bro
Would U be able to share your methods to manage risks in your investments?
Mine's quite simple (though may not be easy).
Step 1 - Asset Allocation (though not buy into straight away for the sake of "balance")
Note: I've squirreled away 6 mths living expenses already, thus the below are the balance
a. Equities exREITs / Rental Properties: 33%
b. Bonds / Money Market / FD / EPF: 33%
c. REITs / Rental Properties: 33%
Step 2 - Methodologies / Entry & Exit Plans
Split the Allocated per Asset into
a. Programmatic (like DCA and VCA for entry & take profit rules if >=50% in less than 1yr OR >=25%pa) where there's no fear / greed in execution of buy/sell/switch
b. Value investing (like entries based on discounted Intrinsic Value OR NAPS/Price OR DY% and exits based on Trailing Stop Losses %)
c. Punting (for the devil in me - trading, a very small %)
These methodologies are mostly applied to Equity assets.
Step 3 - Buy, Hold, Monitor & Tweak
All entries are into filtered stocks/funds/properties
(pre-filter done way earlier based on track record of Company or Fund / Financial Ratios for the past 3 or more years)
Rinse & Repeat Step 1-3
Brother wong, thanks for the knowledge sharing. It is fantastic, i guess u at least read > 50 investment books. Low Yat forum's standard has been decreasing with many new comers asking where, how to invest kind of basic questions. Some people say stocks (thus Equity mutual funds / unit trusts) are too risky but they do not realize that even driving is risky. A neophyte driving VS a learned & experience driver (especially having survived in India or Jakarta
) has a vast difference in risk due to learning & experience.Finally a risk mgt bro
Would U be able to share your methods to manage risks in your investments?
Mine's quite simple (though may not be easy).
Step 1 - Asset Allocation (though not buy into straight away for the sake of "balance")
Note: I've squirreled away 6 mths living expenses already, thus the below are the balance
a. Equities exREITs / Rental Properties: 33%
b. Bonds / Money Market / FD / EPF: 33%
c. REITs / Rental Properties: 33%
Step 2 - Methodologies / Entry & Exit Plans
Split the Allocated per Asset into
a. Programmatic (like DCA and VCA for entry & take profit rules if >=50% in less than 1yr OR >=25%pa) where there's no fear / greed in execution of buy/sell/switch
b. Value investing (like entries based on discounted Intrinsic Value OR NAPS/Price OR DY% and exits based on Trailing Stop Losses %)
c. Punting (for the devil in me - trading, a very small %)
These methodologies are mostly applied to Equity assets.
Step 3 - Buy, Hold, Monitor & Tweak
All entries are into filtered stocks/funds/properties
(pre-filter done way earlier based on track record of Company or Fund / Financial Ratios for the past 3 or more years)
Rinse & Repeat Step 1-3
I am still finding the best investment tools for me.
I am using leveraging method to invest. Public Bank do offer UNIFLEX facilities whereby u can pledge your UT for OD facility, MOA is around 80% with OD interest rate of BLR-1%, u can then withdraw the fund to reinvest or just use the OD as a spare cash. I am a low risk investors, so i park my money in one of the Public Bond Funds, which generate 7.7% average for the last 3 years, so basically it is good enuf to cover the OD interest.
REITS is something that i have not tried yet. Even KLSE has some ETF counters where investors can buy into index at low cost (compared to UT) but unfortunately it is not actively traded so it would have liquidity problem when we want to sell.
One question, u have list the rented property under equity (catagory a), why shdnt it under catagory C?
Quote
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Is there i topic somewhere in LYN that can point me (i'm a good digger once pointed, digging hungrily 
) to the right direction for residential and commercial properties? 
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