Extract from 2015 Investment Diary

JC Project Freedom Journey Towards Financial Freedom

I found my investment diary dated 2015. On the first page, it lists the differences between employee and entrepreneurship. Working as an employee is never secure. It usually has a fixed paycheck. It is less stressful than working for yourself. There’s a limitation to your talent. Whereas, entrepreneurship involves determining your own security. You are able to define the size of your paycheck. You are able to pursue your passion. You can make a difference.

I remember during my younger days, I like to start my own business to become my own boss. Eventually, that dream died.

4/3/2015

I made a call to sell 25,000 shares of Sembcorp Industries at a loss of about S$7,000. I switched to ThaiBev and bought 150,000 shares at S$0.72/share. The rationale is S$0.019 dividend for 150,000 shares is S$2,850 which is good for covering a portion of the losses and the target price is S$0.80/share. Hence, the profit will be close to S$12,000 + S$2,850 which will cover the losses.

6/3/2015

I should have followed suit and converted Capitaland to ThaiBev on 5/3/2015. I think Capitaland on the 5th of March had achieved S$3.63/share. I did not get to sell and the closing price was S$3.58/share. On the 6th of March, I sold 10,000 shares of Capitaland at S$3.58/share and it closed at S$3.54/share. This trade cost me S$1,047. I sold all and switched to Thaibev and acquired another 50,000 shares. I own total Thaibev 230,000 shares at the moment. The total dividend is 230,000 shares x 0.019/shares = S$4,370 dividend

Target to exit at S$0.80/share.

15/4/2015 – 16/4/2015

I bought 5000 shares of Biosensors and sell at S$0.815 and bagged S$93.08 of profit. I realized a bit of profit but saw the price has been lackluster and decided to sell the stock.

24/4/2015

I bought 10,000 shares of NOL with a weighted entry price of S$1.163/share and 2,000 shares of Singtel at S$4.365/share.

Thaibev declared a dividend equivalent to approximately SGD 0.017/share. 230,000 shares x S$0.017/share = S$3,910 worth of dividend.

*At this point while transcribing all these into the blog, I am puzzled about all the actions in 2015. I believe those were the days when I was a trader. I am trying to time the market.

2/5/2015

I am worried because Thaibev share price dropped from S$0.815 to S$0.715. I did not cash out and missed the opportunity of making S$18,000. In the future, before they issue dividends, I need to sell the shares and cash out at the highest. I should sell Thaibev to cover the losses from Sembcorp and bag the profit.

I bought Singtel shares on 24th April because it is on an upward trend.

*At this point while transcribing all these into the blog, I was thinking you mean you don’t even know that? Stop burning my cash! I am quite sure back then I was transiting from being a trader to an investor.

30/8/2015

I wrote in the diary about earning money as a pleasurable thing, freeing yourself from the illusion that you are not wealthy. You need to think about abundance.

Major pain of lacking financial abundance will lead to 1) cannot stop working when I wish to 2) cannot spend more time with family 3) cannot travel to places with family because of lack of finances 4) cannot buy a house which I can accommodate the whole family 5) cannot buy Patek Phillipe watch 6) cannot buy my dream car because in Singapore it is too expensive 7) cannot give to the needy. I end it with a sentence “Associate pleasure to change if money is no longer a question to your life which is an additional benefit”.

*At this point while transcribing all these into the blog, I believe this is the start of why I want to achieve financial freedom. Maybe back then the definition of financial freedom was not common. The abundance mindset was common then. I did not know I am trying to write down the WHY.

I continue to list the reasons. I need to create massive pain for not having freedom.

  • Travel weekly to Hong Kong to visit family
  • Stay anywhere in the world
  • I can help the needy
  • I can donate more $ to the poor
  • I can go on holiday every month
  • I can buy houses in the countries I want to
  • I can decide and make choices
  • I can invest more money in stocks
  • I can buy businesses

I saw one of the reasons why I am frugal. I wrote I cannot anyhow spend money. I can only spend money to grow more money to create good for others, it is an investment for joy. I have abundance to attract more abundance and have the financial freedom to provide for others. I have lots of money is for the greater good of people. (*I believe I am trying to attune the mindset when I was writing this.)

8/1/2016

I sold American Express (AXP) and bought 150 shares of Shell (back then it was called RDS.B) at US$40.74/share. The rationale is AXP is not commonly used in Singapore and Shell will have a dividend yield close to 6%.

(*If you never see something that has been used a lot in Singapore, you could have done your due diligence for AXP. This is a bad call to sell AXP!)

Back to the future

Looking back, I realized that I have made a lot of silly mistakes and it was through all these mistakes I start to shape who I have become today. I continue to make more stupid mistakes but I learn from them. I hope you can learn from others’ mistakes and need not pay expensive school fees to learn about them. If you are young and have a smaller capital. Please try all means to take risks, you can recover from any losses because you are young.

I learned from past mistakes and eventually understand the power of compounding instead of trading in and out.

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