Monday, April 11, 2016

Boring , compounding , or is it?

Good Evening!

I got this crazy (honestly .... if i find it a bit "siao" it should be quite siao la) idea that i've delayed over a year or two. Recent events such as my mum falling ill and the recent passing of my 大舅 (Mum's eldest bro) have helped cement the notion of going through with the idea.


THE IDEA in context? A family owned company which buys shares in listed companies with no or low debt and use the dividends to be reinvested together with additional capital contribution on a yearly basis.

I've attached a table below for viewing.  Assuming a yield of 5% P.A. from dividends , excluding capital appreciation , aga aga results are as shown below.


FYI , my extended family is big so can do it on such a scale if not each shareholder contribution has to be larger to obtain such results.




Disclaimer(s):

1) Chart too small don't blame me , zoom in , zoom zoom. Paiseh la , i IT. noob (I provided two snips which should help in understanding the table.)

2) This is based on $100 contribution per shareholder for 13Months! (Why 13 mths? Like working ma , need to have bonus! Kidding la , the 13th month contribution is for company expenses like admin fees ,brokerage fees, acra fees etc etc.)

3) This company has 11 directors so $100 x 12mths = $1200 x11 = $13,200 combined capital addition annually (minimum amount la , if your directors all $$$$$$$ a lot , then this amount also exponential la)

4) No money can be taken out till year 51 ah , when the company can be disbanded lol , each shareholder should get back around $263,800-ish

5) If any shareholder R.I.P or wants to sell away their stake and take back their capital , they can do so , but have to sell to their direct descendants first , if no direct descendants, then they have to offer their shares to other shareholders first , OR if no direct descendants , and with 51% shareholders approval , liquidate that particular shareholder's shares , and return him or her with the capital put in so far together with dividend payouts, excluding the 13 mth contributions.






The aim of such a company is to provide a small safety net for my future descendants (if any) and if done properly , i guess we might end up as substantial shareholders of some listed companies LOL.


I told my mum this , and i'm gonna say it here also. This company is not for us , but for future generations when we all R.I.P liao , so that they won't eat grass.... eat ownself. It's a manageable and realistic amount to contribute especially if put on a monthly basis , provided all relatives (shareholders) can get along and the Managing Director(elected on a yearly basis via voting) does his or her job well , putting the company's best interests first.

I know some of you , if not most will say doing business with family is the hardest as conflicts if not resolved properly will lead to jialat consequences in future , but i always believed in one thing , that as a family , you will want the best for each other.



Oh ya , audio for y'all to listen to while figuring out the table.

Cheers
Ah Boy (Ken)

Image from google, vid from youtube.


Friday, March 4, 2016

When ah boy decides to play! Afterall , all work and no play makes us all bored! (NCF 2016 Public Service Announcement)

Wah time flies man.


So fast one year liao ah!! It's that time of the year ah boy asks u to spend a few hours and 10 dollars to have fun la! Play game , chit chat , maybe share or learn more about finance and make more friends! See my post last year about it here .


Ya , National Cashflow Competition is back. Game is still the same , Asset Finesse , Venue also still the same.


What is the National Cashflow Competition 2016?

National Cashflow Competition (NCF) 2016 is the largest annual event proudly presented to you by NTU Investment Interactive Club (NTU-IIC). This year, their organising committee is happy to introduce a locally designed board game, Asset Finesse™ (AF). This board game is suitable for anyone that seeks to understand the economics of Singapore, to appreciate the uniqueness of a small but economically-powerful nation. More importantly, it provides players with a fun-learning experience about finance in general.

What can you look forward to?
  • Being among the first to play the newly-created board game, Asset Finesse
  • Be INTRODUCED to the fundamentals of various investment instruments
  • Be TRAINED in financial literacy-- read financial statements and manage your assets
  • HONE your skills in accounting, wealth management and investing in a risk-free environment
  • Look forward to a FUN learning experience with our enthusiastic and dynamic facilitators
  • FREE Goodie Bag, ATTRACTIVE prizes, NEW friends and MANY MORE are waiting for you!

Details:
  • Date: Saturday, 19th March 2016
  • Time: 0930h to 2000h
  • Venue: Great Eastern Centre for Excellence, Raffles Place
  • Registration Fees: $10 per participant

Training Sessions.



mass training session will be conducted for all participants one week before the actual event day.
The details are as follows:
  • Date: Saturday, 12th March 2016
  • Time: 0930h to 1200h (Secondary School Category), 1400h to 1700h (Tertiary/Open Category)
  • Venue: Great Eastern Centre for Excellence, Raffles Place

Nah , all the details as per above. I received this in my email inbox , and am sharing this with y'all ah. Not paid job.... lol so don't complain i copy and paste :p


ANYWAYS Registration Link: https://goo.gl/BgLrNZ
Registration Deadline is 7th March 2016

Ps. If you see me there , say hi eh?

Cheers till then.
Ken

Wednesday, March 2, 2016

Hired.....Part 1 of being a employee?

Yo ! Morning all


I'm writing this short blog post as part of my insomnia routine. Kidding la , kidding. I just happen to be awake at this hour. So as most people know , usually as students , we get to undergo internships . I did my stint with a local sme . After ending the internship , the fine peeps over @ Xpresstuition made me an offer i couldn't refuse , as most of y'all might know , ah boy is pretty happy being a business owner and i kinda enjoy my current life lol.... so if you were to get me to be an employee that goes into office from 9 to 6 ..... i think i would go NUTS lol.


Yeah , so when they offered me to head up their new business development department , i was pretty happy la (OK LA , I WAS PRETTY EXCITED lol , from intern getting promoted!! ) Ya la , long story cut short. The low down was that i'm exempted from going to office daily , and that i get to interview and form my own team. Good news was that management agreed. Problem was that i had no idea of how to interview people!! I mean when i hire employees , i could hire them as it's up my alley , i know the stuff that i need (pun intended) . Now,being in a totally new market , i didn't know what qualifying criteria and expectations i should have. So i did market research on my future competitors and also on the business team that they have.

I noted that most have a large team but their organisation structure seems a bit loose , such that their teams are not able to react as efficiently as a nucleus team , my original intention was QUANTITY , but now my focus has switched to QUALITY. As long as the people that are working with me are competent , that's all that matters.  I've attached the link for the presentation that helped me on a HRM crash course here

I'll have to interview candidates later in the morning... wish me luck? lol


Cheers
Ken  (Ah Boy)