Letter to Batch 4 of Early Retirement Masterclass

I just concluded two days of investment training and as part of a custom, I will share my final letter to my students here.

As you can see, there are a fun folks in this particular batch of students :


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Dear Students of Batch 4,

It’s been a great honour and privilege to be able to conduct a 2-Day Early Retirement Workshop for you.

Compared to other batches, this class was highly interactive and very fun to teach. Dr Wealth staff was still traumatised after one of the ways suggested by the class to increase sideline income included “sell backside”.  But for every troll answer in class lies a teachable moment. “Selling backside” may seem funny and irrelevant, but it may also present a commercial activity with an unusually high life-energy exchange.  As such, there are no real bad answers in class, only narrow-minded instructors.

I would like to thanks some students for sharing some valuable insights with me. It was enlightening to know that our HDB values reach a maxima after a 5 year period and subsequently experience a depreciation that is offset by inflation. This is definitely information that benefits everyone.

The current mood for yield investors is at an all time high, so all three portfolios made by previous batches have done remarkably well. As I have conducted three classes over the past  six months or so, I have invested $30,000 into your collective portfolios. Right now, I am well above 10% gains as we speak.

When we start to do well in our investments, we should remain humble be aware that things may go south at any moment and this round of optimism over real estate investment trusts may not be sustainable moving forward. As we arrive into August, traditionally the worst month of the year, we may experience a correction in the markets as folks start to take profits on their REIT investments.

Because of this, I have included two defensive counters into the portfolio to push down the volatility of the portfolio further.  This will bring the overall yield down for the co-created portfolio from 7.6% to 7.08%.

Finally,  I attached the asset allocation suggested by the class in Annex A. I have also attached our co-created portfolio that yields 7.08% in Annex B of this message. Also included are the results of the equity screening in Annex C. These six stocks can be part of any equity portfolio but may not necessarily attract cheap margin financing.

I look forward to investing $10,000 of my own fees into my margin portfolio with an equity multiplier of 2 into the portfolio in Annex B. You will hear details of my execution in about two weeks time.

Christopher Ng Wai Chung