Reflections on 2017
This was the most turbulent year for me as I experienced retrenchment twice in a single year. Nevertheless, it was one of the most prosperous year. Looking at the start of 2017, JC Fund was standing at SGD 870k in total for cash and cash equivalent and at the end of 2017, JC Fund is at SGD 1,200k. I am estimating the capital gain (inclusive of dividend) to be about SGD 170k. Total return is approximately 19.5%. I took a very “kiasee” (afraid to lose) approach, trying to be conservative when everyone is aggressive. I hoard cash and re-balance portfolio. I don’t think 2018 will be a stronger bull and I will be happy to consistently do a 10% return on JC Fund.
We have moved to our house for almost a year and we have fully redeemed the mortgage loan. It feels good to be debt-free as we do not have any stress on liability. At certain times, without the fear of a mortgage to pay for, I can raise my voice at my immediate bosses when I do not agree with them. Maybe that is the reason I will be seating at home in April 2018 without a job haha. Please do not follow what I have done unless you want to lose your rice bowl too.
My priority towards work has also changed as I want to focus more on creating our wealth as we have our first pot of gold. I feel that I do not want to create assets for others by working as an employee. As an employee, I will be building their empire, making them wealthier at the expense of my time and health.
Time is the most scarce element. We have limited time on this Earth. Please stop thinking linearly, exchanging time for money. Think non-linearly. Think leverage.
My mentor approached me after knowing that I was retrenched on 22nd December 2017. He offered me the option to join him to start a hedge fund. The timeline is to apply for Registered Fund Management License in January 2018.
I am going to pump in 250k for working capital and the remaining JC Fund will be injected into the AUM. I will be one of the founder, taking the role of an investment analyst.
Currently we started discussion with fund platforms to understand in depth on the CAPEX and OPEX. My mentor has already started the process to understand various cost half a year ago.
Next we need to draft out a compliance plan and business plan.
I spoke to my Managing Director on 28th December and he is a personal friend who brought me into the company. His uncle was the one who terminated me. He felt that this hedge fund business is feasible but I need to think of it the internet way where everything is free. He suggest the approach of “You make money then I make money.”
1) make your business trustworthy- compliance and systems in place to safeguard the investors
2) run the day to day business smoothly
3) bring in funding
4) continue to perform in terms of portfolio
5) set up processes to create a system
However, today on 31st December 2017, my mentor told me that his return this year is close to 30% after including dividends and his networth is close to SGD 4m. He is thinking of just retiring and manage his own fund. If that is the case, I need to rework my plans for 2018.
2018 Personal Goal
- Improve investment skills
- Read newspapers, books, articles, scientific/business magazines
- Key target for 2018 is to finish reading all my books
- Search and study companies on Qualitative and Quantitative
- Health – Exercise
- Skipping x 300 x 3 times a week
- 3 x rounds of training cycles x 3 times a week
- Chin ups x 10-20 x 3 times a week
- Meet friends to catch up for coffee
2018 Family Goal
- Spend time to date wife
- Have in-depth conversations
- Have couple time
- Plan short trips with wife to nearby getaways e.g. Penang, Bali
- Spend time with ah boy
- Teach and lead him
- Introduce him to play group
- Learn swimming
- Family Dinners and Trips
- Meals with Parents-in-law
- Trips with Parents
- Monthly dinner with Family