Monday, June 17, 2019

Letter to Batch 5 of the Early Retirement Masterclass.

It's been a hectic week and I have not been updating this blog.

For the past two days I have been running Batch 5 of the Early Retirement Masterclass while my dad is still recovering in Yishun Community Hospital. At the end of class yesterday, I went to see my dad along with my own kids. We did not really much of a Father's Day celebration but I am really glad that my dad saw my kids the first time after being hospitalised for so long. ( We have been videoconferencing in the past. )

This coming Wednesday, my family will be taking a short trip to Australia. This was planned prior to my dad's hospitalisation. Beyond immediate places like Thailand and Malaysia, my family has not had a trip since I signed up for law school and they are in need of a holiday.

So anyway, here's the latest letter I sent to my students.

<< Letter to Batch 5 >>

Dear Students of Batch 5,

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

We may be seeing an inflection point in the markets as it is conducted just before the June 20 meeting between President Trump and Premier Xi Jin Ping.

As the markets may go either way, I will invest my proceeds from class training into two different portfolios. The first portfolio consisting of blue chip stocks and the second portfolio consisting of REITs and business trusts. This is also the class where major changes have been made to the key strategy used previous classes so much so that many of the usual REITs we would have bought in previous batches have been changed almost completely.

Also of note is that this class has, very happily, trimmed off half of the REITs selected by the back-tested model. I particularly liked it when one group selected SPHREITs to be included in the portfolio but a dissenting opinion was shared from someone who is not from the group. As we worked to iron out the disagreement, I am glad that the group was willing to change their minds. In investing, we should never cling onto our investment ideas stubbornly. This discussion resulted in a portfolio with even higher yields.

At the end of the day, only history and the markets can tell whether the choices we made are the right ones. Collectively, the overall effect of investing in this batch of securities would be to diversify from what was invested in before so I look forward to putting my money into the markets in about two week’s time.

Our co-created equity portfolio that yields 4.31% can be found in Annex A of this message. Our co-created REITs and business trust portfolio that yields 6.455% can be found in Annex B.

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

Christopher Ng Wai Chung 

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