Thoughts on Investment and Money built on a Christ-Centered Mindset

Back to Blog

Will New Zealand House collapse by 50% in a very severe scenario?

Ha! Got you there. That's what that headline was. CLICKBAIT. Came across this exact headline last week https://loom.ly/uH9I-l0 talking about how house prices could collapse by 50% in a very severe scenario.  Of course! If things get bad, anything can happen. And of course, things CAN get very bad, because it has happened before.  BUT, does that mean we just sit around and worry? No one can predict the future. If the numbers make sense (ie you really need to know WHAT and WHY you are in...

September 25, 2020

Behind the scenes....a day in my typical Investing and Business life :)

What a day!Started at 630am, visited 3 different towns across 2 regions, drove 400km in total, 5 hours driving, meeting the team, checking on piling progress, checking out another development site, connecting with a fellow Kingdom Builder, checking in with accountant and getting fresh ideas.All in a days work I suppose!Oh, the 5 hours driving is something I actually enjoy. Listened to 1 sermon and completed an audio book. Nourishing!...

September 23, 2020

Sharesies and Hatchinvest are making it easier for Kiwis to invest in the Share Market. Should you?

Came across an interesting article on STUFF recently, talking about the heightened interest in the share market, especially with the increasing popularity of sites like Sharsies and Hatch. You can check them out at sharesies.nz or hatchinvest.nz. This is not a review of their services and I don't get any referral fees from them.  https://www.stuff.co.nz/busine... Maybe it is the lockdown from Covid, lots more people didn't have anything to do at home. Maybe its the excitement for watching s...

September 16, 2020

Are you checking stock prices all the time?

Truth or Dare!Ok, honesty time. How often do you check stock prices?When I was a kid, you could only check stock prices in the newspaper the next day, or at best look at Teletext on TV. Then came pagers with preset alerts. Then PCs. Now its in my pocket all the time!I find that when I am busy, I do it less. When I have time on my hands, I tend to wander and before I know it, I am looking up what stocks are doing.Nothing wrong with checking out prices, but the danger is this...that you allow your...

September 15, 2020

Why you need to do your research before investing

Did I just throw money away? Well, what happened is I had an investment property under contract and proceeded to do due diligence on it. The numbers look decent enough, good part of town, water views etc. The buying part is usually the fun, exciting part.  Then I had my lawyers look at it, inspectors to look at the house, and accountant for his views. Obviously all that cost time, and money! And what I thought might be a do-able deal turns out to be an iffy deal at best, dangerous potential...

September 11, 2020

The key to financial freedom - "Do not worry"

Loved watching these birds pecking on the ground! It was quite a delight just watching them. "Look at the birds of the air, that they do not sow, nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not worth much more than they?" Matthew 6:26 Birds are such an inspiration because they always seem so carefree. Indeed, they do not store up in barns (or banks) like we do, just flitting from place to place without a care, until the odd cat comes along!  It's been a ...

September 5, 2020

Speaking at Kingdom Investors Tauranga

Hey! Guess what? I'll be speaking at a Kingdom Investors event in Tauranga, New Zealand, this Thursday, 27 Aug, 7pm (NZ Time)! I'll be teaching around Dave Hodge's "Spiritual Due Diligence" concepts, but specifically how I apply those concepts. For eg: 1. What business should I get into? How much should I pay for this business?2. Should I buy real estate as an investment? How do I go about doing it? What price should I pay?3. Should I invest in the stock market? How can I go about it?  And ...

August 24, 2020

Is this a great investment opportunity?

Check this out! Would you take this opportunity to make $200,000 off a $400,000 investment, or a 50% return? I was recently shown a potential investment opportunity. It is a "leaky building" in Auckland and this happens because back in the day, the building rules were too lax. So the entire building now needs to be renovated to modern standards, which is a huge cost, and banks will not fund a purchase of these apartments, that's why they are going for "cheap". The angle to this investment is tha...

August 17, 2020

Are you ready to start your own investment snowball?

I've been helping some friends. Some common situations I have encountered are: - No money to start investing- Don't know where to start- It's daunting to look at numbers First off, I don't believe in using borrowed funds to invest. This means you will need to get your finances under control and start saving first. How? 1. Is it possible to save an extra $25 per week? Maybe skip a few coffees? That will add up to $100 a month. As you do that, you might find you are able to save a bit more th...

August 10, 2020

GOLD above $2000! Should I buy or sell?

Gold just closed above $2000 for the first time on 4 Aug! I've received quite a few questions about gold recently. Mostly along the lines of Should I buy? Should I sell?  I always tell people to go back to basics and figure out the WHY of everything. What is the purpose of whatever you are wanting to do? You can't really eat gold (maybe you could cover yourself in it!) so the following are some possible purposes: 1. As an investmentI don't really buy gold as an investment as it does not giv...

August 6, 2020

What does the Apple stock split mean for investors?

Apple is doing a 4-1 stock split in August. What is a stock or share split? What does that mean?Simple. If you own 100 shares of Apple, you will now own 400 shares instead. Did you just get free shares in Apple and 4x your investment value? Sorry to crush your apples (pardon the pun!), but unfortunately, no.If you have a $20 bill in your pocket, essentially you have cut it into 4 parts. You now have 4 pieces of that original bill, but they still add up to only $20. Nothing has changed economical...

August 4, 2020

What do you prefer? Cigar Butts or Great Compounders?

Ok, let's look at 2 potential investments I found recently. I know you may not be familiar with some of the terms below but if you are really keen to learn about investing, have a go at this. You will learn more if you try this exercise first. Company A:- Share price $10. (Not bad, almost single digit PE)- Earns $1 per share in year 1- Book value per share of $20, (ie only 0.5 times book value! cheap!)- Pays out 100% of its earnings as a dividend every year, so dividend per share is $1 and the d...

August 3, 2020

The Dhandho Investor Framework

Have you heard of Mohnish Pabrai, who wrote The Dhandho Investor?Check out his 9-point Dhandho framework:1. Focus on buying an existing business (rather than backing start-ups or firms with unproven models)2. Buy simple businesses in industries with an ultra-slow rate of change (these are often unloved and in my view easier to understand and value)3. Buy distressed businesses in distressed industries (a contrarian approach)4. Buy businesses with a durable competitive advantage&nbs...

July 25, 2020

Do you need to be Visionary to be a great Investor?

Who still has one of these devices sitting around in their drawer? :) :) :) Confession: I am not a visionary person. That is my "weakness". I can't forecast the next trend. I can't spot the next big thing. I will miss the next Google, Shopify, Amazon, Tesla or whichever company is the next tech giant, or "whatever" giant. But my strength is this. That I know I am NOT a visionary.  It is easy to look at what is available today and think of course that's the way things are supposed to be.&nbs...

July 22, 2020

Where did I go wrong in my investing?

"Where did I go wrong?" As investors, we often ask ourselves questions like: What stock should I buy?What price should I pay?When should I buy?When should I sell? But I have come to realise more and more that the one question we need to ask ourselves more is: "Where did I go wrong?" Obviously, you must first have a thesis or reason why you invested in a company. When that investment does not play out, it can be very revealing and a great learning experience to dig into why. Do you know there is ...

July 18, 2020

Business Birthday Lessons

Stewart Motors 1st Birthday!!! Actually this business has been around for more than 50 years, its just that I've now owned it for one year. :) Today marks the first year since I bought this business and it has been a blast! This is obviously not my first business but it is certainly one of my favourites! Maybe it's because I get to drive an ambulance or police truck from time to time. ;) Boys never grow up.  What Warren Buffett said about business is so true. "I am a better businessman beca...

July 9, 2020

Should you hold any cash in your investment portfolio?

Given the amount of "money printing" and support governments around the world are pumping into the economy, is there any benefit to holding cash? Actually there is!  1. Unless your job is ultra secure, I always suggest having a few months' worth of expenditure on hand, just in case. This allows you to stay on your feet whilst you look for a new job, and won't be desperate to jump at anything. How many months? Well, it depends on how secure your job is right? If you work for the public servi...

July 6, 2020

When do I sell an investment?

When to sell? I get this question a lot, and its a valid question.  First, let me preface that you need to wear an "Owner" hat. If you start a business today, you are not going to be selling it next month or next year right? In other words, having a long term mindset. Then, when do I sell? 1. When the fundamentals / story changes. When I invest in a company, there is usually a reason / "story" behind why I did it. When those fundamentals change, it means my original thesis might be wrong. H...

June 26, 2020

Howard Marks: Odds are not in Investors' Favor

As always I read all of Howard Mark's letters. This one is particularly useful because he answers the one important question many of you would be asking. Has the market gone too far?Marks goes on to talk about the 3 stages of a market rally:Stage 1 Few believersStage 2 Most believersStage 3 Everyone concludes everything will get better foreverWe seem to gone over Stage 2 very quickly and are now in Stage 3.Marks also talks about some important questions to ask and highlights that a lot of smart,...

June 23, 2020

How to hedge real estate prices in Singapore

Being Asian, I obviously love real estate.  It's a long term play on the economy etc. I especially like real estate in key gateway cities like Singapore, Hong Kong, New York, LA and London.  However, it can be quite difficult to buy and manage physical real estate far away from where you live. And since I am also a stock market guy, I constantly look for ways to get exposure to these markets using "proxies". Let me give you an example.  In Singapore, many analysts like to use City...

June 22, 2020

Red Door House

Do you know why some people paint their doors red? For the Chinese, it represents good fortune and welcome. And apparently in Scotland when they have finished paying off the house mortgage, they would paint their doors red! I thought that was a neat little idea!Anyway, a friend of mine recently sent me this picture of the progress they are making towards paying off the mortgage on their house. Now THAT is a brilliant idea! It's a simple picture of a house with different sections and each se...

June 13, 2020

Euphoria, FOMO and 3 Investment Lessons from the first Covid "double"

Well! How fast can the pendulum swing! From Fear Of Losing at the depths of Covid to a Fear Of Missing Out that seems to be taking place in the stock market right now. I didn't realise this until last week but an investment I made in a New Zealand company called Tourism Holdings just gave me my first Covid 1-bagger (meaning it has made at least a 100% return, or doubled in price). The purchase was done on 3 Apr 2020 at $1.005 and it hit a high of $2.59 last week, returning more than 150% in 2 mo...

June 9, 2020

Sleep Well At Night (SWAN) Investing

Have you thought about how you can invest and sleep well at the same time? 3 thoughts about "Sleep Well At Night" (SWAN) investing as we emerge or look forward to emerging from lockdowns in our various counties So what do we do now? 1. Keep a long-term time horizon. Make your decision not based on what the stock market will do in the next week or next month, but rather three to five years from now.This reminds me of my Safety First post a few weeks ago. Make sure the investments you consider hav...

May 19, 2020

3 Simple Investment Screening Criteria to get you started

Do you find it hard to screen for potential investment opportunities? Here are 3 simple screening ratios just to get started. They tackle 3 key questions. Is it potentially cheap? Does it have investment potential? Will it be "safe"? 1. Earning Yield (EBIT / Enterprise Value) – First cut on valuation2. Return on Invested Capital - First cut on profitability3. Debt / Equity Ratio - First cut on financial health There are myriad other criteria you can look for, example stable gross margins, grow...

May 19, 2020

Property and Stocks Investing...both work!

Many people get hung up on investing only in real estate or only in stocks. Both are equally valid! They have different characteristics and serve different investment objectives. Enjoy this short video!...

May 15, 2020 Posts 1-25 of 37 | Page next