Jack Ma's 5 Best Quotes On Life, Business and Relationship

Jack Ma’s 5 Best Quotes On Life, Business and Relationship

It is amazing how a man’s destiny can be changed in one year. Jack Ma, more famously known as the Founder of Alibaba (BABA) has disappeared from the public eye around the time when Ant Group was unable to list on the US stock exchange. China stocks are not having a good year ever since the CCP started to have impose regulations on various sectors. There might be times where you might think dollar cost averaging is not working on Chinese stocks.

That being said, Jack Ma has spoken wisdom on life, business and relationship. I have compiled Top 5 quotes which I particularly enjoy.

Hope that Chinese stocks turn around soon.

Jack Ma's 5 Best Quotes On Life, Business and Relationship

Jack Ma’s 5 Best Quotes On Life, Business and Relationship (Photo Source)

#1: On the path to success, you will notice the successful ones are not whiners, nor do they complain often.

After thinking for a long time, I personally felt that this should be the first one on the list (or on any list). If you ask someone what are the ingredients of success, you might get answers like family background, intelligence, the amount of money they have, the school they come from or being hardworking.

I believe that one point stands above all of those listed above. I’m not undermining any of them but without this one point, the rest might fall short.

The Right Positive Attitude.

In my industry and in the previous companies that I worked for, I noticed a similar pattern. The top performers are usually silent (of course they will be loud performers too) and they do what they are suppose to do diligently. Most of them look at the bright side and are often grateful for what they receive or accomplish in their work. Don’t be mistaken though. They do complaint (they are not saints). After releasing the negative energy, they will pick themselves up again and continue preserving in what they do. In time, most of them find success.

Observe the “more successful” colleagues that you have. Are they like what I have described? Do you want to be like that too?

 

#2: You need the right people, not the best people.

I was inspired by this book called Good To Great by Jim Collins. Jim Collins put together 5 years of research to explain how a company can grow from good to great. In one of the chapter, Jim Collins writes about “getting the right people on the bus“. He didn’t say the best people, but the right people.

The right people or team will figure out how to drive the bus to the direction they want. I believe that everyone gives out a different kind of energy and it is your job (as a leader) to manage that energy. In the world, there are really smart people/best people out there. But if they won’t be able to have the right resonance with the team, they are not right at all. The bus might be driven in a different direction or be broken down entirely.

The right culture takes time to build up and seconds to be broken down. You might have friends who “overstayed” in a role because they enjoyed their colleagues company too much. You probably might have heard of friends who quit their jobs immediately because of a bad manager.

The book Good To Great will give a different dimension in explaining this.

 

#3: When people think too highly of you, you have the responsibility to calm down and be yourself.

One word can summarise this entire sentence: Ego. This comes as a bad joke because I felt that ego might have gotten better of Jack in the last few years.

As we become more successful and people start looking up to you, I believe it is important to remember our roots and how we get there. I have met people who got successful very quickly and (very quickly as well) became arrogant. I like this quote from Will Smith: Money and success don’t change who we are; they merely amplify what is already there. People will see how you treat people and that is an indication on who you are as a person whether successful or not.

The price of ego could be a heavy one and it is up to us to have humility whether successful or not.

What kind of person do you want to be?

 

#4: When doing sales, the first people who will trust you will be strangers. Friends will be shielding against you, fair weather friends will distance from you. Family will look down upon you. The day you finally succeeded, paying the bills for every get-together dinner, entertainment, you will realised: everyone else is present except strangers.

I don’t blame them. As Walter Bradford Cannon once said fight or flight is a physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival. A sale may seem like a harmful attack to their wallets (whether or not the product/service is useful for them or not). Any and every exposure to a sale person might seem daunting for some.

I know of some friends who put down everything to start a business. It isn’t as glamorous as it seems. Behind the nice Facebook post lies hard work, sweat and tears (not exaggerating). There are also countless heart aches that they (myself inclusive) have experienced in the course of running a business.

  • Working well beyond 9am to 5pm. Some quit their jobs and suddenly they are working 24/7
  • Some might face discouragement from family or their close ones. Some very hurtful sentences include “You have a degree, why do you want to do this?”, “Why don’t you find a proper job?”, “Why are you not setting aside time for the family, is money that important?”, “Why are you not working hard enough (when things are not going well), do you know we have a family to support?”, “I can get this cheaper from Taobao”, “I can do this myself by reading up” etc

Yet, the day you succeeded in the world eyes. Suddenly, the applause comes in. Comments like “I knew you could do it all this time”. I heard this first hand from a friend who successful sold away his business for millions of dollar. However, I would have to say it is not easy. It is hard to suddenly trust someone to buy something straight away. It is even harder to refer them to someone that you know. But for those of you who did, a big thank you.

Do you know someone who is running a business or a practice? Lend them a helping hand. Here are some from I know run great business and I would like to extend to them a helping hand.

Disclaimer: I do not get any referral fees for promoting them. I personally feel that their products and services are great.

Platter With Love: Luxurious Handcrafted Artisanal Gourmet Platters with a Social Mission

OlaBakes: Sweets Made Fresh

Oriental Remedies Group: Bilingual TCM Physicians You Can Trust – #FeelBetterFaster with TCM x Technology

 

#5: Buying Life Insurance cannot change your life; instead it prevents your lifestyle from being changed. After tolling for decades, an illness can wipe out an entire family’s saving by medical bills incurred.

You will not turn bankrupt because of buying insurance but you will cause your loved ones to turn bankrupt if you don’t.

There are certain things we want to happen and certain things we don’t want to happen. In the 21st century, humanity is facing one of the greatest war ever: the war against critical illness. Mortality has improved over the years because of medical innovation. At the very same time, the cost of medical provision has also increase. What seems to be like a death sentence decades ago can now be cured.. but you need money to have access to that treatment.

After chatting with past critical illness survivors, I realised that concern of falling ill runs deeper than just the cost. At the end, affording the treatment is the start. Recovering from the illness is the end game. Give yourself a chance to win this game by having the adequate insurance.

 

Final Thoughts

Let’s all thrive in our lives, business and relationships.

Stay Safe.

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

Why Dollar Cost Averaging is Not Working On China's Stocks

Why Dollar Cost Averaging is Not Working On China’s Stocks?

Why Dollar Cost Averaging is Not Working On China's Stocks

Why Dollar Cost Averaging is Not Working On China’s Stocks… yet.

The last 2 weeks was a bumpy one for China’s stocks. Technology companies ranging from Alibaba, Tencent, Didi and all the way to the educational sector pretty much spooked investors all over the world. There was massive selling and it seemed to have paused after JD reported good earnings.

Some of these company’s valuation are getting attractive once again as prices corrected in the last 2 weeks. This wasn’t music to the ears for those that are already invested. On the ground, I heard of many investors who took this opportunity to average down (buying at lower prices to lower the average prices). However, some investors seemed to have cracked under pressure and started asking why dollar cost averaging is not working.

Today, this article seeks to explain why dollar cost averaging is not working on China’s stocks… yet.

What is Dollar Cost Averaging (DCA)?

You probably have heard of this term Dollar Cost Averaging (DCA) from a friendly Financial Services Consultant as he was talking about investment. This strategy was made popular to retail investors as a way to invest by reducing the impact on volatility (the ups and downs) in the stock market.

“Time in the market, not timing the market”. This quote always serves as a reminder that investing (not speculation) is about being in the market and not timing the market. (Read More: Why Buy Low And Sell High Is Useless Advice).

Dollar Cost Averaging

Dollar Cost Averaging (Source)

The power of dollar cost averaging is making volatility your friend by buying at regular intervals. It is your objective to own as many shares as possible. In the above example, you are invest $1000 for 6 months.

Month #1: Share Price $10. You will be able to buy 100 shares ($1000/10 = 100)

Month #2: Share Price $13. You will be able to buy 77 shares now ($1000/13 ≈ 77). You have 177 (100+77) shares now. The total capital is $2000. The total value of your shares $2301 (177*$13). At this moment, you are profiting $301.

Month #3: Share Price $6. You will be able to buy 167 shares now ($1000/6 ≈ 167). You have 344 (100+77+167) shares now. The total capital is $3000. The total value of your shares $2064 (344*$6).  At this moment, you are losing $939. Most people starts to open their warchest now.

Month #4: Share Price $10.98. You will be able to buy 91 shares now ($1000/10.98 ≈ 91). You have 435 (100+77+167+91) shares now. The total capital is $4000. The total value of your shares $4776.30 (435*$10.98). At this moment, you are profiting $776.30 again. You are happy again.

Month #5: Share Price $7. You will be able to buy 143 shares ($1000/7≈143). You have 578 (100+77+167+91+143) shares now. The total capital is $5000. The total value of your shares $4046 (578*7). At this moment, you are losing $954 again. Some people start to freak out and wonder why dollar cost averaging is not working. In the case of China, the chart has been one direction downwards and “the moment” in the time for losses are prolonged.

This is the reason why people feel that dollar cost averaging is not working… yet.

Month #6: Share Price $10. You buy 100 shares. In total, you would have 678 shares. Total capital $6000. The total value of your shares $6780. You are profiting again.

You are making volatility your friend

Dollar cost averaging works when there are ups and downs. Currently, as the Chinese market is down, you will feel that it is not working. When the market recovers, DCA will suddenly “work again”. At this point, you will often hear people start talking about their investment gains.

“Time in the market, not timing the market”. 

I had to copy the quote again. Remember that investing (not speculation) is about buying shares of the companies/funds/assets you want through time. Dollar Cost Averaging is just one way that you can consider to invest.

Final Thoughts

You are not alone in this journey. I believe that there are many who have invested in the Chinese market because of good valuation. Of course, there will be non believers of Chinese market because of their tight regulations. At the end of the day, it is about investing with the strategy that you are most comfortable with.

You can buy stock tips. But you can never buy conviction.

Ask yourself if the asset allocation strategy fits your profile. Engage a professional to finetune the strategy. Lastly, do start. With every crisis, comes an opportunity.

With every crisis comes an opportunity

With every crisis comes an opportunity

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

Purge Your Money Burdens

Purge Your Money Burdens

As I’m writing this, I am clearing out some old books from my cupboard. I looked at some of them and wondered how it managed to be on my shelves for so long. Some of the books have long served their purposes and probably could do with a new owner.

As I look at the tidier shelves, I struck me that my “financial journey cupboard” was cluttered years back. It was only months later that I realised that some of those things should have been removed.

Purge Your Money Burdens

Purge Your Money Burdens (Photo: Source)

Our worries and burden comes from things that are cluttered. Think about the last time you had a tough day a work, it might be because of “things are not moving”, “stuff piling up” or “too many things to do at one time” You have a clutter problem. Just like finances, things might have piled up before you could have realise it.

If you are feeling stuck in your financial journey, this article might help you purge the money burdens.

First: List Out Everything

This is the heavy lifting that most financial services consultants will do to help you declutter. Here is a list of things that you have to find before we can purge your burdens

  1. List out all your incomes sources (last 3 months)
  2. Print out your credit card statements (last 3 months)
  3. List out all your insurance coverage
  4. Your latest loan amount
  5. Your latest assets amount

In a nutshell, you can see that you are listing our your assets, liabilities, income and expenditure. This is allow you to have a clearer picture of your networth and also cashflow.

Second: Purge

You might have discovered that you might have some income or expenditure that you should purge. Let me help you list out some of the most purgeable items.

  1. Subscription that are recurring are usually forgotten. They might be your Netflix account, your Spotify account or Seeking Alpha assess. Purge out those that you have not used for the last 3 months but are still paying for it. If you have not use it for the last 3 months, you probably won’t be using it for the next 3.
  2. Purge out income sources that are not efficient. You might be doing a little of everything (mystery shopping, survey, Network Marketing, Fiverr, Grab). Potentially, you might have became too tired by spreading yourself too thin. Focus on one and let it grow.
  3. Is there an extra insurance coverage that you have bought years ago? Is there a loan that you can paydown or refinance? Re-analyze your assets and liabilities and purge those that should be gone.

Third: Recreate

Your financial journey is not only about clearing. It is also about recreating. It is only with a clearer lens that you will be able to organise and add for the future.

  1. Is your insurance serving you well at your current life stage? If not, what can you do about it?
  2. What kind of assets can I focus on based on my risk appetite? Should you top up your SRS? Should you contribute more to your CPF?
  3. How can I enhance my income? Is it adding about new skillset?

Move forward. If you are stuck again, don’t be afraid to do another purging exercise until you are satisfied.

 

Final Thoughts

To those that might be thinking the more the better (especially when it comes to income sources). This exercise helped me a lot during a time I was overstretching. I discovered I had 12 income sources and I was spreading myself extremely thin. I couldn’t focus on all 12 and eventually didn’t do well in all 12. It was really painful experience. I had then purge 9 of them and focusing on 3 right now.

Hope that you will have a better financial journey than I do. Till then, stay safe!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

We are forced to be investors whether we like it or not

We are “forced” to be investors whether we like it or not

We are forced to be investors whether we like it or not Low Interest Rate

We are forced to be investors whether we like it or not: Low Interest Rate Singapore 25 Years

This one chart explains it all. It was just a “few years” back when my parents told me that it is important to save money in the bank. Saving money in the bank does have many tangible benefits. Firstly, it creates a pool of emergency funds for a peace of mind. Secondly, it gives you a lump of money to prepare for any opportunities. Thirdly, if you don’t do anything, the banks will give you up to 7% interest per annum (Dec 1980). That sounds good to me!

Fast forward to 2021, the bank is giving on average around 0.05% and it seems to be getting lower. The low interest rate environment has changed many areas of finance. Firstly, it has already affected the insurance companies’ participating plans. Secondly and more importantly, it has lead to the erosion of money.

This means that the money you have now, will be worth less in future. For every $10,000 you have in your bank, the real value of your $10,000 will be halved ~$5,454.84 in 30 years if you continue to keep money in bank. (assuming 2% inflation rate)

You can say that we are in a generation that is “forced” to invest or suffer the erosion of money value with time.

We are forced to be investors whether we like it or not Value Erosion

What It Means For You?

Whether you are in your 20s who might be working for the next 40 years (damn) or in your 50s who might be retiring for the next 30 years, we are all exposed to the same erosion. As a retiree, it is important to understand that your savings value will go down in quantity and value. As a working adult, it is important to understand that your hard earned money is worth less down the road.

There is only one obvious thing to do. Either you keep pace with inflation (endowment plans/selected bond funds/etc does a decent job for this) or you have beat inflation. If you want to beat inflation, you will most possibly be expose to other asset classes which might have higher volatility and risk. It is crucial to know your risk profile here before you proceed.  You might be not suitable for certain asset classes and it is important to talk to professional to assess this.

The Chase For Higher Yield

There are only 2 ways to do this. Either you do it yourself or let others do it for you.

Do it yourself: This is an active role. It involves many things such as knowing what asset classes to buy, what assets in the asset classes to choose from, the pros and cons associated into each assets, the co-relationship between each assets, the duration of investment, the investment thesis and when to exit. This list is not exhaustive.

There is a very strong emphasis here on the level of financial knowledge which might take years to acquire. (All this time, still spending most of your waking hour working on the job). It is a longer process but definitely rewardable.

Do it for you: This is a semi passive role. There is still a personal responsibility to know what you are investing in. Otherwise, you are completely at mercy of the provider. In Do It For You, usually a portfolio is readily available. There will be an explanation on the investment thesis and if you subscribe to the investment thesis, you can consider taking up the Do It For You.

Annual reviews or semi-annual reviews are important here to see how the investment is doing. Generally, it is a passive role after that.

 

Final Thoughts

Whether you choose to do it yourself or do it for you, the reality is that you have to do something. If you don’t, the retirement journey just might be a little hard.

We are forced to be investors whether we like it or not

We are forced to be investors whether we like it or not

Till then, take care!

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.

3 Things To Know Before You Do CPF Shielding

3 Things To Know Before You Do CPF Shielding

As the population gets financially educated especially when it comes to the usage of CPF, the idea of CPF-SA shielding is gaining traction. Some says it is a “loophole” and wants this to be closed. Personally, I think it is weird to call it that way. It is like calling investing a loophole because it helps you achieve financial freedom.

If you have read my articles before, you would be aware that context is very important for planning and today’s focus will be the 3 things to know before you do CPF-SA Shielding.

3 Things To Know Before You Do CPF Shielding

3 Things To Know Before You Do CPF Shielding (Beautiful Photo From NME)

What is CPF SA Shield?

At age of 55, your Retirement Account (RA) will be funded from your Special Account (SA) first and then your Ordinary Account (OA) to make up Full Retirement Sum (FRS).

Read More: 5 Things You Need To Know About Your CPF

As SA gives 4% interest as compared to OA 2.5%, there is an interest (pun intended) to keep monies in SA. The idea of CPF-SA shielding is to fund your RA with more of your OA than SA by transferring your SA monies out temporarily.

So what can go wrong?

Read More: 5 mistakes people make using their CPF

Context. It is always about context. In my own opinion, not everyone should/can do shielding.

 

Context #1: Paying For Mortgage Using CPF-OA

Your CPF-OA contribution rate at age 56 is 12%. Using an salary of $6000 (Ordinary Wage Ceiling is $6000 anyway), $720/month goes into your CPF-OA. If your monthly mortgage is > $720/month, you might be using your previous CPF-OA contribution if you don’t want to use cash. (There is a whole literature on why you should use cash but we will leave it for another discussion).

When you do CPF-shielding, your CPF-OA balance drastically reduces and this might mean that you would need to use cash for your mortgage. This might adversely affect your cashflow in future.

 

Context #2: It Assumes You Know Where to Park your Money Temporary

There are several instruments that you can consider purchasing using your CPF-SA. Different investment carries different risk. It is most important to know your own risk profile or work with someone who can do that for you. Even money market funds carries it’s own unique set of risk. Please take time to understand the benefits and risk of your chosen funds.

To illustrate an example: Mr Suay bought $100,000 worth of Singapore Bond Funds using his CPF-SA to do shielding at the age of 54. Before Mr Suay could sell the Singapore Bond Funds, there was an economic crisis. Typically, volatility of bond funds are not high. However, because of the crisis, Mr Suay may see his Singapore Bond Funds be worth $90,000 now. Mr Suay may experience losses if he wishes to sell it and put it back into his CPF-SA.

And yes, there may be transaction costs involved. Please do the calculations to see if it is worth it.

Sidetrack: It is only when you know what the risk is, then you can learn how to manage those risk. It might be unwise to avoid risk altogether.

 

Context #3: If you are risk adverse

Every trained financial professional will be able to find out your risk profile by doing a questionnaire. If you happen to be a risk adverse individual, this might not be the best strategy for you.

It is okay to be risk adverse. I think everyone of you will have a different experience with money. There is nothing wrong planning your financial journey as a risk adverse individual. It just means the instruments that you will be using will be different from the rest. There is nothing wrong with that. You are uniquely you.

 

Final Thoughts

I believe that are merits of doing CPF-SA shielding if done well. The most important consideration is to see if this strategy makes sense to you. The context of the strategy is very important. It may not be applicable to some out there especially if they fall into #1, #2 or #3 as explained above.

If you wish to find out if CPF-SA shield is applicable for you, please do reach out to me.

Till then, take care!

Read More: CPF Accrued Interest Trap

Chengkok is a licensed Financial Services Consultant since 2012. He is an Investment and Critical Illness Specialist. Wealthdojo was created in 2019 to educate and debunk “free financial advice” that was given without context.  

Feel Free To Reach Out To Share Your Thoughts.

Contact: 94316449 (Whatsapp) chengkokoh@gmail.com (Email)
Telegram: Wealthdojo [Continuous Learning Channel]
Reviews: About Me

The views and opinions expressed in this publication are those of the author and do not reflect the official policy or position of any other agency, organisation, employer or company. Assumptions made in the analysis are not reflective of the position of any entity other than the author.