Frank Comments by Dennis Ng on various Topics

[Dennis Ng]

Hi all,

when you go through the stock picks by all the famous Stock Analysts in Singapore in Jan 2011, you would realise that if you had bought stocks at those prices (Jan 2011) as suggested by them, you would be suffering a Big loss right now.

So much goes to reading research reports from Stock Analysts.

One of my multi-millionaire sifu said to me:"there are young stock analysts, and there are old stock analysts. There are NO Good and Old Stock analysts. Why? Becos something many people do NOT know is that stock analysts cannot buy any stocks they recommend to buy...so imagine if you're really good at choosing stocks yet you find a good stock and you cannot buy yourself, do you want to continue doing this for a long time?

So likely you resigned and changed job. On the other hand, imagine they might recommend stocks NOT really their top picks, becos they can't buy anything they recommend buy.

What is your choice? Still waiting to get "fish" (tips) from stock analysts or you want to learn how to fish (invest and choose stocks) yourself? I think the choice is clear and I've made my choice. Have you?

2 Jan 2011

below are my comments on what the "4 financial experts said" and below my comments is the article "4 financial experts' forecast for this year" published in Sunday Times 2 Jan 2011.

My comments:
as I always said, analyts' No. 1 objective is to keep their jobs. You can see that they seem to "agree with one another", becos if your views are not too different from other analyts, when your forecast turns out to be wrong, you will still keep your job.

Most of them also play "safe" by suggesting that people buy Blue Chip stocks. Frankly, most of the blue chips are already trading at PE of 15 or higher, there is not much upside potential left.

I said Suntec REIT is worth buying 1 year ago when share price was S$1. Now then analysts suggest you to buy Suntec REIT when price is S$1.50. Are they kinda late?
Cheers!

Dennis Ng

"4 financial experts' forecast for this year"

On Friday, the benchmark Straits Times Index (STI) closed at 3,190.04.

That would be welcome in many countries but local traders have been a little spoiled of late.

For full-time investor Isaac Chin, 61, his fortunes have been tracking STI rises in the past two years.

Mr Chin is fully invested in real estate investment trusts (Reits) and DBS preference shares.

'CapitaMall Trust and Suntec Reit remain my favourite picks for this year. They are retail/office plays and Suntec Reit has just acquired a stake in Marina Bay Financial Centre Phase One,' he said.

Mr Chin also believes the STI can reach 3,500 to 3,700 by the middle of this year.

Despite the volatility in these markets, Singapore's economy clocked up growth of 14.7 per cent last year with expansion of 4 to 6 per cent tipped for this year.

The Sunday Times polled four financial experts on their market outlook.

MS JANICE CHUA
Head of DBS Vickers Research, Singapore

Our stock picks are Indofood Agri with a target price of $3.20, SembCorp Marine at $5.48, Keppel Corp at $12.20 and Cosco Corp at $2.35.

The trend for strong visitor arrivals should continue into this year, driven by new attractions at Universal Studios in Sentosa, the gear-up to host larger conferences and meetings, the opening of Gardens by the Bay and the International Cruise Terminal.

Hospitality-related stocks should continue to deliver strong earnings and our picks are Genting Singapore with a target price of $2.70, SIA at $18.50, UOL at $5.23 and CDL Hospitality Trusts at $2.28.

MR TERENCE WONG
Executive director at DMG & Partners Research

Q: What are the sector/stock picks for 2011?

Our stock picks include CDL Hospitality Trusts at a target price of $2.51 as Singapore sees record tourism numbers.

Occupancy is very tight at about 92 per cent, which should result in average room rates heading north.

We also like FJ Benjamin, with the target price at 52 cents, as we believe that strong visitor arrivals coupled with the solid job market should boost retailers.

Domestic consumer sentiment is also on the rise in both Malaysia and Indonesia which are FJ Benjamin's key markets.

Other stock picks are Sino Grandness at 56 cents, as it is enjoying strong earnings growth driven by domestic beverage sales and is expanding its distribution network in China; Ezion at $1 and First Resources at $2.05.

MS CARMEN LEE
OCBC Investment Research's head of research

Q: What are the sector/stock picks for 2011?

Our key stock picks are Ascott Residence Trust at a target price of $1.38, Biosensors at $1.35, CapitaLand at $4.54, DBS at $16, Ezra at $2.27, Genting at $2.53, Hyflux at $3.66, Keppel Corp at $12.50, Mapletree Logistics Trust at $1, Noble at $2.59, Olam at $3.53, Pacific Andes Resources at 40 cents, Sembcorp Marine at $5.70, StarHub at $3.02, UOB at $19.70, UOL at $5.42 and Venture Corp at $12.10.

Q: What's your tip?

We advocate investing in quality stocks in the right sectors with good track record, management teams and good order flow.

We prefer to stick with blue chips, in particular, blue chip laggards last year such as DBS, UOB, CapitaLand, Noble and SGX.

MS TAN MIN LAN
Strategist at UBS Investment Research

As a result, Singapore Reits would benefit the most while firms with US dollar or euro revenue and assets in developed markets should feel the drag of a stronger Singapore dollar, specifically tech firms such as ST Engineering, Wilmar and Hyflux.

Q: What are the sector/stock picks for 2011?

We like Overseas Union Enterprise at a target price of $4.28 for its significant exposure to prime office space and hotels, and Indofood Agri at $3.70, as it is well positioned to benefit from rising cash flow, improving profitability, lower gearing and potential for dividend payouts following the completion of its major capital expenditure cycle.

Other stock picks are Keppel Land at $5.08, Keppel Corp at $11.10, SembCorp Industries at $5.68, OCBC at $11.30, Sats at $3.40, Noble at $2.70 and DBS at $16.60.

[Dennis Ng]

When will the Next Global Financial Crisis happen? Nobody knows, except God. From my analysis, it is just a matter of Time when this will happen, not a matter of whether it might/might not happen.

And when it does happen, you know that I"ve been warning in public Media about the Next Global Financial Crisis and NOT doing it after the event happened, which is what analysts typically do (analyse after something happened).

Cheers!

Dennis Ng

In early Jan 2012, I didn't say that the next Global Financial Crisis will happen by March 2012, that was actually what the TV hosts said. I commented that no one knows the exact timing, but the Next Global Financial Crisis can still happen in year 2012 and even possibly by Jun 2012.

The next Global Financial Crisis is likely to be worse than the year 2008's Crisis, and I explained why in the TV interview on "AM Live!" on Channel News Asia when I was interviewed for what I shared in my latest book "What Your School Never Taught You About Money".

Year 2008 Crisis we basically only have U.S. in trouble, while in the next Crisis we are likely to have BOTH U.S. and Europe in trouble, coupled with economic slowdown in China and Japan, so basically ALL the G4 (the biggest 4 economies of the world) are likely to slowdown or in trouble in the next Crisis, this is is why it is likely to be worse than year 2008's Crisis.

Again, I explained that the Rich have very different idea on Asset Allocation, they have very dynamic Asset Allocation, ie. in 1 year, they can be 70% invested, and in another year, they can have 70% in Cash and only 30% invested, the exact opposite. Most people diversify by investing into Unit Trusts in different countries and regions eg. U.S., Europe, Asia, without realising that when Markets Fall, they call fall together, so no matter which country you invested your money in, you still lose money...

Here's the TV interview:

http://www.youtube.com/watch?v=rL8SK_BqfXQ

[Dennis Ng]

The stock market is like a roller coaster, low then high, high then low...but please do NOT be addicted to the "thrill" of riding a Roller Coaster, buy and hold and hold and hold...

If you bought in late Jan 2012 and and sold in April and early May (like I did), overall you would have made 10% to 20% returns. If you had not sold, probably by now you would see all the gains "vaporised" and disappeared...

Cheers!

Dennis Ng

Dow Average Erases 2012 Advance After Employment Data
By Rita Nazareth - Jun 1, 2012 10:22 PM GMT+0800

U.S. stocks tumbled, erasing the 2012 advance in the Dow Jones Industrial Average, as employers added the fewest workers in a year, the unemployment rate rose while manufacturing output shrank in Europe and slowed in China.

The Standard & Poor’s 500 Index lost 1.7 percent to 1,288.56 at 10:20 a.m. New York time, the lowest level since Jan. 9 on a closing basis. The Dow dropped 202.15 points, or 1.6 percent, to 12,191.30. Trading in S&P 500 companies was 23 percent above the 30-day average at this time of day.

“Yuck, this is really not good,” said Michael Mullaney, who helps manage $9.5 billion as chief investment officer at Fiduciary Trust in Boston. He spoke in a phone interview.“The overall jobs report is bad. We’ve got weak economic figures on a worldwide basis. We’re at a very precarious point right now as far as investors’ psyche is concerned.”

Equities slumped as American employers in May added the fewest workers in a year and the unemployment rate unexpectedly increased as job-seekers re-entered the workforce. Payrolls climbed by 69,000 last month, less than the most-pessimistic forecast in a Bloomberg News survey, after a revised 77,000 gain in April that was smaller than initially estimated. The median estimate called for a 150,000 May advance. The jobless rate rose to 8.2 percent from 8.1 percent, while hours worked declined.
Global Manufacturing

Manufacturing in the U.S. grew at a slower pace in May as factories tempered production in response to weakness in the global economy, the Institute for Supply Management’s factory index showed today. A gauge of manufacturing in the 17-nation euro zone fell to a three-year low of 45.1 in May, indicating a 10th month of contraction, while unemployment reached 11 percent, the highest on record. China’s Purchasing Managers’ Index dropped to 50.4 from 53.3, the weakest production growth since December.

A divergence in the sovereign yields of euro countries shows bets against the integrity of the 17-member currency bloc are growing. The euro area is in real danger of disintegrating unless policy makers revamp the bloc’s fiscal and economic ties, Economic and Monetary Commissioner Olli Rehn said.

Concern about a global slowdown and a worsening of Europe’s debt crisis drove the S&P 500 down 6.3 percent in May, for the second straight monthly retreat. The MSCI All-Country World Index of stocks tumbled 9.3 percent while the MSCI BRIC Index entered a bear market after plunging more than 20 percent from the March peak. The gauge tracks shares in Brazil (IBOV), Russia, India and China, the biggest emerging markets.
Alcoa, Caterpillar

Companies which are most-dependent on economic growth tumbled today. Alcoa, the largest U.S. aluminum producer, retreated 1.6 percent to $8.41. Caterpillar, the world’s largest maker of construction equipment, lost 2.1 percent to $85.76. Bank of America dropped 3.6 percent to $7.09.

Casino companies sank as growth in Macau casino gambling revenue slowed, matched analysts’ estimates. Wynn Resorts, the casino company founded by billionaire Steve Wynn, dropped 2.8 percent to $100.13. MGM Resorts retreated 3 percent to $10.51. Las Vegas Sands lost 3.8 percent to $44.43.

Facebook slumped 4 percent to $28.41, following a 5 percent rally yesterday. Last month, it completed the biggest technology IPO on record just as offerings were drying up, and has since lost more than $20 billion in market value.

The Menlo Park, California-based social-networking company led U.S. IPOs to their worst monthly performance since Lehman Brothers Holdings Inc. collapsed, as Europe’s debt crisis scuttled IPO plans from New York to Hong Kong.
IPO Index

The Bloomberg IPO Index (BIPO), which tracks U.S. equities in the first year after their IPOs, sank 15 percent last month, with Facebook posting the worst one-week performance among the 30 largest U.S. IPOs since 2011. The IPO index’s decline is in line with the drop in October 2008, the month after Lehman’s bankruptcy triggered the worst financial crisis since the Great Depression.

Kayak Software Corp. and Russian social-networking company VKontakte shelved listings this week, while Graff Diamonds Corp. delayed a Hong Kong sale and the Formula One auto-racing series said its Singapore IPO may not occur until later this year. Facebook’s 22 percent slump since going public has shaken investors already reeling from tumbling equity markets and the slumping European economy, said Jeffrey Sica of Sica Wealth Management LLC.

“We’ve reached a breaking point where sentiment is so negative and scrutiny is so high that companies don’t want to go public and investors aren’t prepared to look at them,” said Sica, who oversees more than $1 billion as chief investment officer of the Morristown, New Jersey-based firm. “You’re talking about long-standing damage to the psyche of companies wanting to go public and investors.”

To contact the reporter on this story: Rita Nazareth in New York at rnazareth@bloomberg.net

[Dennis Ng]

Does Singapore have 17% household with investible assets of US$1 million or more? Somehow, I don't think the figure is that high, probably close to 10%.

The question is WHEN do you want to join to be one of them? By saving 20% of my income (average income of S$6,000 per month only) and growing it through Investing into stocks and property, I joined the "Millionaire Club" at age 39 after working for 15 years.

When do you want to join?

If you want to join, need to start taking action to learn and increase your Financial Knowledge and apply what you learn in my seminars, so that you can be a Millionaire as well.

The best thing about reaching a million dollars is NOT the money, but the Better person you need to become in order to reach this goal. Better in the sense becos it shows you have the Discipline, the Committment, the Determination, the Emotional Control (especially when faced with volatility and losses in investment), Better Thinker (learn and practise how to think independently), and the list goes on.

The Straits Times
Jun 2, 2012
Invest
17% of Singapore households are millionaires

By Melissa Tan

SINGAPORE leads the world in terms of the proportion of households classed as millionaires after the ranks of the wealthy swelled again last year.

A new study has found that the number of households with investable assets of US$1 million (S$1.26 million) or more rose 14 per cent to 188,000 last year. That means 17.1 per cent of households - or one in six - are millionaires.

The findings come from management consultancy Boston Consulting Group (BCG) in its Global Wealth Report 2012, which does not include property and other non-financial assets.

In 2010, 165,000 households were classed as millionaires.

The latest jump comes even though the economy grew only 4.9 per cent last year, following a 14.8 per cent surge in 2010.

BCG said the 17.1 per cent figure was the 'highest density' of millionaire households across all the 63 countries it surveyed.

Singapore came in 11th in terms of the absolute number of millionaire households.

That figure was definitely boosted by the appreciation of the Singapore dollar over the past few years, while wealth was generated by the strong growth in the property market, said Mr Warren Lim, chief executive of Finexis Advisory.

He noted that households could have also made money last year if they caught the right timing in the stock market.

Those who bought property in 2005 and 2006 and sold them recently would have seen solid gains, he said.

He added that his financial advisory firm has seen a rise of about 20 per cent in the number of wealthy clients coming to his firm for advice in the past year.

Singapore was slightly lower down the ladder when it came to ultra-high net worth households, which BCG defined as those holding over US$100 million in wealth.

It had 108,000 of these ultra-rich households last year. This is roughly equivalent to 10 out of every 100,000 households, according to BCG.

While Singapore was in 26th position when ranked by absolute numbers, it was still No. 2 in terms of the density of such households.

The Republic was trumped narrowly by Switzerland, where 11 out of every 100,000 households were considered ultra- high net worth last year.

'Overall, global growth in private wealth is clearly being driven by rapidly developing economies in the 'new world', not by the 'old world' of traditional, mature ones,' BCG wrote in its report.

The Asia-Pacific region grew richer at a faster rate than most other regions last year, due more to solid economic growth than to equity market gains.

Private financial wealth in Asia excluding Japan expanded 10.7 per cent last year to about US$23.7 trillion. The region is expected to hold US$40.1 trillion in wealth by 2016.

In contrast, developed economies like the US, Europe and Japan experienced a decline in the amount of wealth held in 2011.

Global wealth reached US$122.8 trillion last year, and BCG predicts it will grow to $151.2 trillion by 2016

melissat@sph.com.sg

[Dennis Ng]

Latest news: CPF Board is revising the CPF Min Sum to S$139,000 from 1 July 2012, up from S$131,000 in year 2011. If you reach age 55 on 1 July 2012, you can only withdraw money from CPF account provided that you have more than S$139,000 combined balances in your CPF Ordinary and Special account. If not, you can't withdraw any CPF at all at age 55 and leave it till age 65 where they pay you monthly through the Compulsory CPF Life (Annuity) Scheme.

In my opinion, for someone who knows how to invest and get higher returns than 4% per year, having money stuck in CPF is actually "losing money" for such savvy investors.

Becos I'm self-employed, so I just have enough salary and CPF to make sure enough to pay for my S$500 share of monthly housing loan instalment instead of paying myself a higher salary.

The rest of my income I would either put it as Directors' Fees or divdends from my company, both need not contribute to CPF.

Imagine earning 4% from CPF while inflation rate is 5.4%, one is actually getting poorer and poorer over time, not richer and richer. Raising the CPF Min Sum is NOT the solution to Singapore's retirement problem.

The solution is Financial Education, imagine I could retire at age 39 (3 years ago) becos of my financial knowledge of knowing how to grow my savings...I don't need to depend on my CPF savings for retirement at all.

Some people will tell me that government trying to introduce teaching of Personal Finance in schools. The problem is what they teach are from "school" and "textbooks" which I realised most of the things taught do NOT work in real life. What is needed is Financial Knowledge that works in Real Life, and this is what I'm teaching, after testing that it worked for me (I have my millions to prove that)...which I learned from the Rich.

If you want to become Rich, learn from the Rich, not from a professor or Financial Planner who himself/herself is not rich in the first place. Textbook knowledge are only good for passing exams, they don't work in real life. The fact that Both Warren Buffett and George Soros both did NOT bother to study CFA (Chartered Financial Analyst) Course and Exam show you that even they think such knowledge does not work and is just a waste of time, which is probably why both of them did NOT pass this exam despite this being a Necessary Certificate for people who want to work as Fund Managers.

Cheers!

Dennis Ng

Wednesday, May 30, 2012
AsiaOne

CPF minimum sum to be raised to $139,000

The CPF minimum sum will be revised upwards to $139,000 from the previous $131,000 from July 1 said the Ministry of Manpower (MOM) on Wednesday.

The new minimum sum will apply to CPF members who turn 55 from July 1, 2012 and June 30, 2013.

The Medisave minimum sum will also be raised to $38,500 from the previous amount of $36,000.

Members will be able to withdraw their Medisave savings in excess of the Medisave minimum sum at or after age 55.

The maximum balance a member can have in the Medisave account is fixed at $5,000 above the Medisave minimum sum.

Corresponding to the increase in the Medisave minimum sum, this ceiling would also be increased to $43,500 from $41,000.

Any Medisave contribution in excess of the prevailing ceiling will be transferred to the Special Account if the member is below 55 years old or his Retirement Account if he is above 55 and has a shortfall in his minimum sum.
Reach your goals with Manulife

The CPF board said that the revisions, which have been adjusted for inflation, are to ensure that Singaporeans have sufficient savings to meet their healthcare expenses.

hteoh@sph.com.sg

[louiskst]

Hi all,

After I read the minimum sum of CPF required at 139000, I calculated the amount of money that we can withdraw after 65 years old as below:

Age 55, CPF have 139000
Age 65, CPF have 207226 (assume 4% interest pay monthly at 0.333%)
Amount that can withdraw per month from age 65 to age 85 = 1255.75

1255.75 per month is it alot?

I calculated further to estimate the monthly expenses base on your current age.

Assume inflation at 5.4%
Current monthly expenses required = 1000. (very conservative, I assume that the CPF annuality is for personal usage)

For people who are at the age of 25,his future expenses at the age of 65 is 8629.22!!! (Yes, I hope I calculated wrongly)
For people who are at the age of 35,his future expenses at the age of 65 is 5034.76
For people who are at the age of 45,his future expenses at the age of 65 is 2937.55
For people who are at the age of 55,his future expenses at the age of 65 is 1713.93

Conculsion, no matter which group of age you are in, if you are depending only on CPF annuality for your expenses after age of 65, you are unlikely to survive, which mean that you have to work even after age of 55. To avoid such situation, each of us should learn how to invest and retire with a sum of money that can provide passive income for our expenses.

Thanks.

P/S: These are all base on personal calculation and estimation.

Regards
louiskst

[danielcheng]

Did anyone think deeper why is this so? So is rapid progress and relentless pursuit for so-call excellence really good? Maybe capitalism is not a sustainable model moving forward..It may be valid in the last 50yrs.

Just like EU may be a workable model for 10-20years, but not sustainable in the longer term w/o ractification.

[Dennis Ng]

Did anyone think deeper why is this so? So is rapid progress and relentless pursuit for so-call excellence really good? Maybe capitalism is not a sustainable model moving forward..It may be valid in the last 50yrs.

Just like EU may be a workable model for 10-20years, but not sustainable in the longer term w/o ractification.

In my opinion, EU is doomed to fail when it started, how to tie 17 countries which have nothing much in common (especially Values and Working Attitude) as one big family?

yes, is our society really progressing? Is our quality of life really better? Why are there so much Crimes, problems, divorces, in the society?

The reason I think is most people have lost their way, most people are unconscious.

To me, the only purpose in life is to develop to our utmost potential so that we can contribute the most to the society. If we are all connected, this is what really matters.

All the answers to our questions are within us. Really.

[Dennis Ng]

Property prices likely to hold this year. Huge supply only start to arrive in year 2013 and year 2014, and if this coupled with the Next Global Financial Crisis, likely to lead to Drop in demand and over-supply.

For a typical property launch, it is NOT unusual to sell 200 to 300 units on first day alone, so 91 units of Water Colours (new EC at Pasir Ris) sold on first day is actually a low figure. This might be a signal that even sale of New condo projects are cooling off...

In the last 6 months, the resale condo market is very, very quiet, not a healthy signal.

Experienced Property Investors that I know stopped buying residential properties since Jan 2011...and also stopped buying commercial Properties since Jun 2011...

Last few months, one can see from URA information that most of the new condos are bought by people with HDB flat address (or predomininatly middle class), and many are First time Investors, with no experience at all.

Guess many of the latent demand (those who want to buy and can afford to buy) have already bought. By year 2013, when we have more supply coming on, the situation might change to Supply more than Demand...

The Global Financial Crisis is coming, probably this year or latest in year 2013, when that happened, most of the middle class would have already had their Cash fully invested, and when Opportunity present themselves in the form of Lower Prices for Stocks and Properties, they can only see and cannot "touch", becos they don't have much money left to invest.

On the other hand, experienced investors including myself are now Cash Rich, (72% of my Wealth now I hold in Cash) and we're patiently waiting for the Great Opportunity in a Crisis.

A Crisis is a Rare Opportunity? Only true for people who have Money to invest during a Crisis. Most people would be cash-tight in a Crisis.

History repeats itself but most people just do NOT learn from history

[Dennis Ng]

Fund manager as usual still recommend Buy and Hold investment strategy. Is he blind or he chooses to be blind to reality? It is clear that stock markets go through Market Cycles of Ups and Downs...

If a person bought DBS shares at S$15 in year 2006 and continue to hold the shares through thick and thin till now, he is still losing money, with DBS shares at about S$13.10 now...on the other hand, a Market Cycle Investor could have sold DBS shares at S$20 or higher (DBS went to as high as S$25 in year 2007), then buy again at say, S$8 (DBS in year 2009 fell to as low as S$6.70), and sold at S$14 (this year and last year (this year and last year, DBS shares went above S$14, highest was S$15.70)....so who will be Richer?

The Buy and Hold investor or the Buy Low, Sell High (Market Cycle Investor)?

The answer is clear. The buy and hold investor still loses money (about 12.6% loss) but the Market Cycle Investor would have made total of about 132% returns in the same time period of 6 years, or over 20% annual returns.

How to buy low and sell high? Just learning TA and FA one can do so. I did it and I teach it.

Cheers!

Dennis Ng

The Straits Times
Jun 3, 2012
Buy and hold for steady gains
In the first of our monthly series featuring fund managers and leading market experts, we ask Aberdeen Asset Management Asia's managing director Hugh Young about his slow and steady approach to investing.

By Aaron Low

In the topsy-turvy world of micro-second investing, complete with computer algorithms making automated buys and sales on behalf of traders, Mr Hugh Young's approach to buying companies based on values and trust may seem antiquated.

The managing director of Aberdeen Asset Management Asia studies a company, meets the management for lunches and visits the company's facilities - all before buying a single share of the firm.

But once he does, he sticks with it for a long time. Many of the firms he has bought have continued to stay in the funds he manages, for more than a decade.

Asked if he is a disciple of value-investing, much like the Oracle of Omaha Warren Buffett, Mr Young says: 'Well, who wouldn't say they are buying value?

'For us, it's about buying value with growth. We want growth but we also want growth at a value.'

The Aberdeen Pacific Equity Fund, which uses this approach, has not done too badly either.

Since its inception back in 1997, the Asia-focused fund has returned 11 per cent a year. This has beaten by a fair margin the MSCI Asia Pacific Index, which has seen 7.4 per cent annualised returns since 1997.

Dennis Ng's comments: Please note that the returns are before deducting fees. Banks charge 3% sale charges on Unit Trust, and Aberdeen charges 2% annual management fee on this fund. There might be other hidden charges and expenses too. Net 6% returns is nothing fantastic to shout about, and mind you, this is so-called one of the Best performing Unit Trust (managed fund) around!!!

In simple terms, if you had invested $1,000 with the Pacific Equity Fund, your funds would have grown to about $4,700 now.

Q: How do you identify companies to buy for your funds?

We pick long-term leaders in many fields. We do this by getting to know them as best as possible, including making repeated visits to their offices to talk to their management.

I think some investors are sometimes dazzled by the prospect of growth of small companies or growth stocks.

Facebook, for instance, is 'let's all get excited about growth'.

But when there is a slight disappointment in the performance, the market reverses suddenly, and people may lose a lot of money.

And many did, did they not?

Q: How long do you usually hold your companies for?

Most of them have been with us for 10 to 15 years. Ideally, we'd like to hold them for a long time.

For instance, we've had OCBC since the inception. We've also held some Indonesian stocks from as far back as 1987. That's more than 25 years.

Over the last year or so, we've added just three companies - Li and Fung, AIA and HSBC.

Q: So it's a buy and hold strategy? I thought experts said that's all dead and buried in the current volatile landscape?

Yes, it is buy and hold. It's a rather torturous process but it's slow and steady.

But then again, timing the market is not all that easy. People say they can time the market but I've not come across very successful people.

Wasn't it just recently that JP Morgan's chief said they had lost US$2 billion (S$2.6 billion) in trading?

So maybe you can do well for three to four years, getting very good gains, but after that it can all go to pieces.

I don't think many people will be awfully excited about our stocks and they are really nothing to shout about.

But we've had a decent run - taking into account our exorbitant 2 per cent fees - getting about 4 per cent more than our benchmark on an annualised basis.

So we've done okay. But this is no guarantee that we will continue to do as well.

Q: What do you consider to be some of your best buys over the years?

Oh, not very exciting and maybe even boring. But these are good companies with good management that have grown well in a conservative, steady manner.

One is OCBC, which we bought in 1996 for our Singapore fund. Good bank, done all the right things and grown well.

Another is Australian insurance company QBE, which we added in 1991. Its share price has taken a bit of a hit due to the floods in Thailand but a good company still.

Another is Siam Cement in Thailand. Big company involved in the growth of the country too.

Q: With the markets falling now, are you looking out for good bargains?

I would say that there are no stunning bargains for sale now. And looking at the macro environment, it does seem that things could get a lot worse.

Q: Some investors have described the period between the 1950s and 2000s as being the great bull market. Is that the last great bull run or can we expect another?

I've never really felt that there has been a giant bull run in my 30 years of investing. In hindsight, it may seem that way but, while I was in it, it did seem as though we were just lurching from one crisis to another.

The market is perennially volatile and swings from wild euphoria to depression. But I do welcome the volatility as this creates opportunities.

aaronl@sph.com.sg

[Dennis Ng]

Hi all,

there are a few things that I can identify with and hold the same view with the interviewee, Dr Ansgar Cheng.

I quote them below:

On not buying a Car:
'In Singapore, public transportation is efficient and rather extensive,' he says, adding that it also makes more financial sense to take public transport than to buy and upkeep a car.

Besides, he and his wife are now used to relaxing in the bus or cab while making their way to and from their home around the Bugis area.

Money is just a tool, and when we get Richer, we can also do more for the society, eg. Charity:

Money is just a tool, he says. 'You have to use it for your daily needs. The rest you keep, grow and you share, and not necessarily with your own family.'

On having some Opportunity Fund:
We are generally cautious about how we use money and we try to ensure that cash is readily available so that it can be deployed when we see good opportunities. A certain portion goes to family support, charitable causes.

On emphasis in teaching values to children:
We want our kids to grow up with the right values.

On the importance of investing in yourself and learning how to fish:
The best investment philosophy I learnt in the US, where I had studied and worked, was: 'Invest in yourself'. When people know how to catch fish, there is no need to give out fish.

Cheers!

Dennis Ng

The Straits Times
Jun 3, 2012
A simple life - the root of sensible living
Dental specialist is thrifty, opts for public transport and has little material desire

By Joyce Teo

Dr Ansgar Cheng has been a dentist for 22 years and can easily drive home from his workplace at Mount Elizabeth Medical Centre but chooses to take the bus instead.

'In Singapore, public transportation is efficient and rather extensive,' he says, adding that it also makes more financial sense to take public transport than to buy and upkeep a car.

Besides, he and his wife are now used to relaxing in the bus or cab while making their way to and from their home around the Bugis area.

He leads a simple life, wears a plastic Casio watch to work and says he has little desire for material goods.

Money is just a tool, he says. 'You have to use it for your daily needs. The rest you keep, grow and you share, and not necessarily with your own family.'

Dr Cheng, 46, is a prosthodontist with Specialist Dental Group, an adjunct associate professor at the National University of Singapore and an honorary clinical associate professor at the University of Hong Kong.

In 2004, he and his wife - both permanent residents - relocated from Canada to Singapore as he says it is a very safe place where everything works and it has an excellent reputation as a medical hub.

Dr Cheng, who is from Hong Kong, has been married for 20 years to Ms Moonlake Lee, 43, the director of business affairs at Specialist Dental Group.

They have two daughters: Allie, nine, and Hana, eight.

Q: Are you a spender or saver?

I am generally a saver but I do spend when necessary on items that are important and have long-term value.

Once in a while, I will spend on my family - when we celebrate special occasions, for instance.

We are generally cautious about how we use money and we try to ensure that cash is readily available so that it can be deployed when we see good opportunities.

A certain portion goes to family support, charitable causes and church tithing every month. I also support my high school in Hong Kong, for example, when it needs funds to purchase new equipment.

We don't give our kids pocket money as they take packed lunches to school. We reason with them and try to teach them the value of money.

We want our kids to grow up with the right values. They don't have tonnes of toys but they do have a lot of books.

On Sunday evenings, they will say: 'Can we not eat out? It's a waste of money.'

Q: How much do you charge to your credit cards every month?

A few thousand dollars for professional and household expenses.

My wife makes sure our bills are paid through credit cards so that we can benefit from the perks. We pay in full through Giro each month.

Q: What financial planning have you done for yourself?

I learnt about financial planning from my uncle, Tom, who said: 'Be a useful person to the people around you. Be reliable, spend less than you make, and invest the rest. Then you may be fine.'

When I was newly married, I worried about what would happen to my wife if I were to meet with an untimely end.

We concluded that she should invest in her education, so she became a highly educated person with a few post-graduate degrees in business and law.

With those qualifications and her exceptional talent and energy, I know she has the best insurance that no money can buy.

My most valuable asset in life is my education.

Not only did my professional training allow me to have a day job, but it also allowed me to associate with many teachers, highly intelligent individuals, colleagues and interesting people whom I can learn from.

Insurance-wise, we have term life policies as well as disability insurance, hospitalisation and surgical insurance, and critical illness insurance for peace of mind.

We are generally conservative in our investments, preferring to look long term, and we adopt a buy-and-hold strategy.

We stick with blue chip shares locally and internationally. We also have a three-bedroom condominium in the city area here, which we rent out.

We bought it a couple of years ago and the value has risen, but we have no plans to sell it. We have no plans to buy another property now as prices are very high.

Most of our money is in the bank. The interest is not high but the money is liquid.

We stay within our area of competence.

We won't go near landbanking, for instance. We know of a landbanking firm that is not truthful - the land they are selling is actually not in the area that they claimed.

Q: Moneywise, what were your growing-up years like?

I grew up in Hong Kong with a hardworking father who was involved in various small businesses. He has a great sense of humour, loves his family and lives a balanced life.

My mother is a very talented woman who made many important business decisions with my father. She is a full-time homemaker and is always willing to listen to her kids.

Through a lot of luck and hard work, my parents successfully saw my three elder sisters and I graduate from the University of Hong Kong.

We eventually went overseas for our post-graduate education.

Q: How did you get interested in investing?

I have heard my parents talk about business since I was young. Thus, the idea of working hard and getting money to work harder for you is not alien to me.

The best investment philosophy I learnt in the US, where I had studied and worked, was: 'Invest in yourself'. When people know how to catch fish, there is no need to give out fish.

Q: What property do you own?

A 1,300 sq ft condo unit around the Bugis area. We bought it a few years ago at a reasonable price.

Q: What's the most extravagant thing you have bought?

When I was six, I was made to purchase a tiny golden mouse with my entire net worth of approximately US$73. That was the time when gold was at about US$40 an ounce.

I still have that little gold mouse, and even at the current gold price of about US$1,600 (S$2,000), I have absolutely no use for that piece of shiny metal.

I thus concluded that precious metals are fine but are of little practical value.

Q: What's your retirement plan?

My parents never retired. They just moved from one thing to another.

Like them, I do not have a retirement plan.

I plan to keep healthy and busy for as long as possible.

I am financially independent because I consume very little and have close to zero desire for most material needs.

The amount of money you need during retirement depends on your needs. You can limit your needs.

Q: Home is now...

Our condo around the Bugis area, which allows us to walk our girls to school daily.

Q: I drive...

I drive only once a year - when I'm in the US for meetings.

I enjoy whatever subcompact car the cheapest car rental company presents to me.

My wife and I take the cab or bus to work and we take the bus home.

joyceteo@sph.com.sg

-------------------------------

WORST AND BEST BETS

Q: What is your worst investment to date?

None as we rarely sell our investments.

Q: What is your best investment to date?

I can only say it's my family and my move here.

[Waterman]

Like x 100

Like this article and the attitudes & values of Dr Cheng towards life

Hi all,

there are a few things that I can identify with and hold the same view with the interviewee, Dr Ansgar Cheng.

I quote them below:

On not buying a Car:
'In Singapore, public transportation is efficient and rather extensive,' he says, adding that it also makes more financial sense to take public transport than to buy and upkeep a car.

Besides, he and his wife are now used to relaxing in the bus or cab while making their way to and from their home around the Bugis area.

Money is just a tool, and when we get Richer, we can also do more for the society, eg. Charity:

Money is just a tool, he says. 'You have to use it for your daily needs. The rest you keep, grow and you share, and not necessarily with your own family.'

On having some Opportunity Fund:
We are generally cautious about how we use money and we try to ensure that cash is readily available so that it can be deployed when we see good opportunities. A certain portion goes to family support, charitable causes.

On emphasis in teaching values to children:
We want our kids to grow up with the right values.

On the importance of investing in yourself and learning how to fish:
The best investment philosophy I learnt in the US, where I had studied and worked, was: 'Invest in yourself'. When people know how to catch fish, there is no need to give out fish.

Cheers!

Dennis Ng

The Straits Times
Jun 3, 2012
A simple life - the root of sensible living
Dental specialist is thrifty, opts for public transport and has little material desire

By Joyce Teo

Dr Ansgar Cheng has been a dentist for 22 years and can easily drive home from his workplace at Mount Elizabeth Medical Centre but chooses to take the bus instead.

'In Singapore, public transportation is efficient and rather extensive,' he says, adding that it also makes more financial sense to take public transport than to buy and upkeep a car.

Besides, he and his wife are now used to relaxing in the bus or cab while making their way to and from their home around the Bugis area.

He leads a simple life, wears a plastic Casio watch to work and says he has little desire for material goods.

Money is just a tool, he says. 'You have to use it for your daily needs. The rest you keep, grow and you share, and not necessarily with your own family.'

Dr Cheng, 46, is a prosthodontist with Specialist Dental Group, an adjunct associate professor at the National University of Singapore and an honorary clinical associate professor at the University of Hong Kong.

In 2004, he and his wife - both permanent residents - relocated from Canada to Singapore as he says it is a very safe place where everything works and it has an excellent reputation as a medical hub.

Dr Cheng, who is from Hong Kong, has been married for 20 years to Ms Moonlake Lee, 43, the director of business affairs at Specialist Dental Group.

They have two daughters: Allie, nine, and Hana, eight.

Q: Are you a spender or saver?

I am generally a saver but I do spend when necessary on items that are important and have long-term value.

Once in a while, I will spend on my family - when we celebrate special occasions, for instance.

We are generally cautious about how we use money and we try to ensure that cash is readily available so that it can be deployed when we see good opportunities.

A certain portion goes to family support, charitable causes and church tithing every month. I also support my high school in Hong Kong, for example, when it needs funds to purchase new equipment.

We don't give our kids pocket money as they take packed lunches to school. We reason with them and try to teach them the value of money.

We want our kids to grow up with the right values. They don't have tonnes of toys but they do have a lot of books.

On Sunday evenings, they will say: 'Can we not eat out? It's a waste of money.'

Q: How much do you charge to your credit cards every month?

A few thousand dollars for professional and household expenses.

My wife makes sure our bills are paid through credit cards so that we can benefit from the perks. We pay in full through Giro each month.

Q: What financial planning have you done for yourself?

I learnt about financial planning from my uncle, Tom, who said: 'Be a useful person to the people around you. Be reliable, spend less than you make, and invest the rest. Then you may be fine.'

When I was newly married, I worried about what would happen to my wife if I were to meet with an untimely end.

We concluded that she should invest in her education, so she became a highly educated person with a few post-graduate degrees in business and law.

With those qualifications and her exceptional talent and energy, I know she has the best insurance that no money can buy.

My most valuable asset in life is my education.

Not only did my professional training allow me to have a day job, but it also allowed me to associate with many teachers, highly intelligent individuals, colleagues and interesting people whom I can learn from.

Insurance-wise, we have term life policies as well as disability insurance, hospitalisation and surgical insurance, and critical illness insurance for peace of mind.

We are generally conservative in our investments, preferring to look long term, and we adopt a buy-and-hold strategy.

We stick with blue chip shares locally and internationally. We also have a three-bedroom condominium in the city area here, which we rent out.

We bought it a couple of years ago and the value has risen, but we have no plans to sell it. We have no plans to buy another property now as prices are very high.

Most of our money is in the bank. The interest is not high but the money is liquid.

We stay within our area of competence.

We won't go near landbanking, for instance. We know of a landbanking firm that is not truthful - the land they are selling is actually not in the area that they claimed.

Q: Moneywise, what were your growing-up years like?

I grew up in Hong Kong with a hardworking father who was involved in various small businesses. He has a great sense of humour, loves his family and lives a balanced life.

My mother is a very talented woman who made many important business decisions with my father. She is a full-time homemaker and is always willing to listen to her kids.

Through a lot of luck and hard work, my parents successfully saw my three elder sisters and I graduate from the University of Hong Kong.

We eventually went overseas for our post-graduate education.

Q: How did you get interested in investing?

I have heard my parents talk about business since I was young. Thus, the idea of working hard and getting money to work harder for you is not alien to me.

The best investment philosophy I learnt in the US, where I had studied and worked, was: 'Invest in yourself'. When people know how to catch fish, there is no need to give out fish.

Q: What property do you own?

A 1,300 sq ft condo unit around the Bugis area. We bought it a few years ago at a reasonable price.

Q: What's the most extravagant thing you have bought?

When I was six, I was made to purchase a tiny golden mouse with my entire net worth of approximately US$73. That was the time when gold was at about US$40 an ounce.

I still have that little gold mouse, and even at the current gold price of about US$1,600 (S$2,000), I have absolutely no use for that piece of shiny metal.

I thus concluded that precious metals are fine but are of little practical value.

Q: What's your retirement plan?

My parents never retired. They just moved from one thing to another.

Like them, I do not have a retirement plan.

I plan to keep healthy and busy for as long as possible.

I am financially independent because I consume very little and have close to zero desire for most material needs.

The amount of money you need during retirement depends on your needs. You can limit your needs.

Q: Home is now...

Our condo around the Bugis area, which allows us to walk our girls to school daily.

Q: I drive...

I drive only once a year - when I'm in the US for meetings.

I enjoy whatever subcompact car the cheapest car rental company presents to me.

My wife and I take the cab or bus to work and we take the bus home.

joyceteo@sph.com.sg

-------------------------------

WORST AND BEST BETS

Q: What is your worst investment to date?

None as we rarely sell our investments.

Q: What is your best investment to date?

I can only say it's my family and my move here.

[Dennis Ng]

Yesterday, with good intention of warning people about the coming Financial Crisis, I shared in shareinvestor.com forum that my multi-millionaires sifus and experienced investors, including myself are now raising Cash level to prepare to invest in the coming Global Financial Crisis.

But guess my good intention is not clear to some. Some forumers disagreed and said that there are experienced investors who always stay 100% invested, who take "balanced" approach... and even made insulting remarks, including unnecessary name calling and personal attacks.

I finally realised that it is meaningless to share in such investment forums where the forum engages in frivolous postings, unnecessary name calling and even personal attacks (including using obsene words, postings relating to male and female sexual organs); something which is totally unimaginable to be acceptable to the average person...

Well, let's see what are some of the well known experienced investors are doing recently?
1. Temasek Holdings listed several companies last year to raise cash (a case of sell high through IPO), very smart move as the stock markets now is lower than before they IPO their companies, which included Global Logistics.

2. Asian's Richest person Li Ka-Shing also IPO some of his companies including Hutchison Port Holdings Trust in Singapore a high price off S$1 (now share price only 90 cents).

Thus, they are raising cash.

3. Genting Singapore issued over S$2 billion Perpetual Bonds paying interest rate of 5.125%. What is the money borrowed for? Genting Singapore says it is for possible Opportunities. So as I said, the Rich borrow to become Richer. While the average investor buy bonds now (when interest rates low and bond prices high, which does NOT make sense) and do the Opposite (investing all their available funds NOW than building up Opportunity Fund).

4. Metro Holdings sold Metro Bejing shopping mall to raise cash. Now Metro has so much cash even after deducting ALL bank borrowings, Metro Holdings hold S$427 million cash or about 52 cents Cash per share...so even Metro is raising cash.

And you can be sure that when the Crisis goes deeper, some of these experienced investors would then put their Cash to use, to take advantage of Rare opportunities in a Crisis.

I just like to caution all seminar graduates that there might be many discussion forums out there but many postings are made by people who have misconceptions themselves and if you don't know how to differentiate, you might end up learning all the wrong things, including one forumer who suggested buying U.S government bonds at historcial low yield (or historical high price now) instead of holding any cash.

http://business.asiaone.com/Business/Ne ... 49923.html

Friday, Jun 01, 2012
AFP

Temasek looks to invest in European firms: Report

SINGAPORE - Singapore investment giant Temasek Holdings has said it is looking to invest in European firms owing to an "abundance of opportunities" as the region suffers an economic crisis, a report said Friday.

European firms with good operations and strong businesses outside of the region were being considered, Temasek's head of strategy Chia Song Hwee said in remarks carried by the Straits Times daily.

"In the current market environment, as you know, there are market imbalances... So there is an abundance of opportunities for us to tap," Chia - who joined Temasek in October 2011 - was quoted as saying in the newspaper.

"However, the most difficult part of picking up opportunities in such an environment is what is the right time, what is the right valuation for the risk-reward proposition," he added.

Chia did not mention any specific European companies or industries Temasek was casting its eye over.

The report comes as Europe is caught in the grips of a crippling debt crisis that has seen the euro tumble, unemployment soar, trade tumble and public deficits widen.

Analysts are also worried that Greece could end up leaving the eurozone while a banking crisis in Spain has stoked talk that Madrid might have to seek an international bailout.

Acquisitions in Europe would mark a departure from Temasek's recent investment activities, which focused on top banks in China and other other emerging economies.

Its European foray also flies in the face of market sentiment on the region, said Justin Harper, market strategist for IG Markets Singapore.

"They seem to be contradicting what most people are doing, a lot of people are saying get out (of Europe), if they have not done that already they've got more problems to come," he told AFP.

"That raises eyebrows from the point of view that they're going against the stream of common thinking."

But Harper said Temasek was likely to be engaging in "a bargain-hunting exercise" by snapping up cut-price shares in big European institutions who had been hit by the region's economic woes.

Temasek Holdings is one of two Singapore state investment firms and had a portfolio worth $193 billion for the financial year ended March 31, 2011.

[yhendra]

Yesterday, with good intention of warning people about the coming Financial Crisis, I shared in shareinvestor.com forum that my multi-millionaires sifus and experienced investors, including myself are now raising Cash level to prepare to invest in the coming Global Financial Crisis.

But guess my good intention is not clear to some. Some forumers disagreed and said that there are experienced investors who always stay 100% invested, who take "balanced" approach... and even made insulting remarks, including unnecessary name calling and personal attacks.

I finally realised that it is meaningless to share in such investment forums where the forum engages in frivolous postings, unnecessary name calling and even personal attacks (including using obsene words, postings relating to male and female sexual organs); something which is totally unimaginable to be acceptable to the average person...

Well, let's see what are some of the well known experienced investors are doing recently?
1. Temasek Holdings listed several companies last year to raise cash (a case of sell high through IPO), very smart move as the stock markets now is lower than before they IPO their companies, which included Global Logistics.

2. Asian's Richest person Li Ka-Shing also IPO some of his companies including Hutchison Port Holdings Trust in Singapore a high price off S$1 (now share price only 90 cents).

Thus, they are raising cash.

3. Genting Singapore issued over S$2 billion Perpetual Bonds paying interest rate of 5.125%. What is the money borrowed for? Genting Singapore says it is for possible Opportunities. So as I said, the Rich borrow to become Richer. While the average investor buy bonds now (when interest rates low and bond prices high, which does NOT make sense) and do the Opposite (investing all their available funds NOW than building up Opportunity Fund).

4. Metro Holdings sold Metro Bejing shopping mall to raise cash. Now Metro has so much cash even after deducting ALL bank borrowings, Metro Holdings hold S$427 million cash or about 52 cents Cash per share...so even Metro is raising cash.

And you can be sure that when the Crisis goes deeper, some of these experienced investors would then put their Cash to use, to take advantage of Rare opportunities in a Crisis.

I just like to caution all seminar graduates that there might be many discussion forums out there but many postings are made by people who have misconceptions themselves and if you don't know how to differentiate, you might end up learning all the wrong things, including one forumer who suggested buying bonds at historcial low yield (or historical high price now) instead of holding any cash.

Hi All,

It's a matter of CHOICE: We ALL have the power to choose! We choose to say certain words. We choose to read certain articles/ideas. etc.
It's a matter of observation, focus: What did we observe when we hear or read or see? Where was our focus when we hear or read or see?
It's a matter of conscious and subconscious minds: Our subconscious mind DRIVES our action which to our results.
It's a matter of learning: Do we observer the patterns? Are we aware of it? Do we repeatedly and with focus learning about it? This will result in our skills and habits. Just to 'complain' and 'complain' is skill/habit itself, if you think about it! Why, because it's repeatedly done!

For those who have not read the "CHOICE" summary, you can read it here: http://www.masteryourfinance.com/forum/ ... =15&t=2616.
Try to reflect on what have you learnt so far! Relate those with this "CHOICE" topic.

If you don't get what I'm trying to explain or share, it doesn't matter.
It may be:
1. not for you at all, or
2. not for you yet, or
3. you have something better in order to understand better.

At least, I have shared what I have to shared.

[Dennis Ng]

Hi All,

It's a matter of CHOICE: We ALL have the power to choose! We choose to say certain words. We choose to read certain articles/ideas. etc.
It's a matter of observation, focus: What did we observe when we hear or read or see? Where was our focus when we hear or read or see?
It's a matter of conscious and subconscious minds: Our subconscious mind DRIVES our action which to our results.
It's a matter of learning: Do we observer the patterns? Are we aware of it? Do we repeatedly and with focus learning about it? This will result in our skills and habits. Just to 'complain' and 'complain' is skill/habit itself, if you think about it! Why, because it's repeatedly done!

For those who have not read the "CHOICE" summary, you can read it here: http://www.masteryourfinance.com/forum/ ... =15&t=2616.
Try to reflect on what have you learnt so far! Relate those with this "CHOICE" topic.

If you don't get what I'm trying to explain or share, it doesn't matter.
It may be:
1. not for you at all, or
2. not for you yet, or
3. you have something better in order to understand better.

At least, I have shared what I have to shared.

yes, Hendra, well said.

However, I think that not many would grasp what you're trying to share.

As the saying goes:"when the student is ready, the teacher will appear."

I remember years ago when I read certain books, it didn't leave a deep impression nor do I find I learned anything much. However, years later when I re-read them, I found that I started to discover things to learn from the book which I didn't "see" before...

One example of a book that I always seem to learn something new everytime I re-read is the book "The Master Plan to Success." - written by Napoleon Hill. This book is not available in Singapore bookstores but I have brought some in from Malaysia Napoleon Hill Associates, and make available through ordering from http://www.MasterYourFinance.com website.

Note: in my opinion, this is the Best book to learn about Secrets of Success, even better than the more well known "Think and Grow Rich" book written by Napoleon Hill.

Napoleon Hill Associates (Malaysia) is set up by Christina Chia, who attributed her success through mainly learning and applying what she learned from Napoleon Hill.

Some seminar graduates can probably remember that I mentioned about her, a Malaysia Multi-millionaire who shared with me in year 2005 that "one day you'll find that money simply gush in, like waterfall, walah, walah..." I found this very familiar and finally realised that in the book "Think and Grow Rich" there is a part that says something similar, but not using waterfall as an analogy...

When I first heard this from her in year 2005, I was thinking to myself, money is so hard to earn. To me, it is like trying to squeeze water from a face towel, "money drips" not fall like Waterfall...and I could hardly believe or relate to what she was sharing with me...only years later, then I realised that she was telling the truth, that once we do the right Thing correctly, we can get the Correct result and Earning More Money is just a "side effect" of that...

Some of the seminar graduates doubt the existence of some of these multi-millionaire "sifus" I mentioned, problem is some of them want to keep a low profile and keep their identity confidential, so it's not right for me to disclose their names, but Christina Chia is ok with it, so here's a link showing you more info about her:

http://www.napoleonhillassociates.com/d ... _page=team

Christina Chia is very passionate about sharing Napoleon Hill's teachings, if you ever have a chance to meet her (she's very busy and I've not met her since year 2006), if you have any questions on teachings by Napoleon Hill, just ask her, she would probably give you a very good explanation to make things clearer for you.