I have always learnt about trading and investing from youtube videos, the internet, investment books, or blogging friends. Other than all these, it is probably the finance modules I have taken in school that opened my world to investing.

However, I feel that I should also learn from other famous investors, hence, I signed up for the Growth Investing Mastery workshop via EventBrite

Growth Investing Mastery is the flagship programme of 10x Capital Pte Ltd. The company focuses on the long-term capital appreciation of equities. In short, it is referred to as GIM.

I went for the talk on 26th Nov, at CT Hub 2 which is a short walk from Bendemeer MRT.

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I have thought the place is pretty dope, with bars and tze char restaurants at the ground level (tze char = chinese restaurant) that gives a chill vibe. I went there with my friend, and could find the training room at level 6 easily. Basically we were monkey-see-monkey-do-ing and following other fellow participants.

We were just on time, and were faced with a room full of about 30-40 participants seated and watching videos on GIM participants' reflections. After registering, we were seated down.
Other than learning about investment, I also hoped to learn about how the pros speak professionally. How they can convince, and influence people.
Starting off, an individual engaged the crowd, and introduced us to Kelvin Seetoh, or known as Kelvestor.

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Made $500,000 by the age of 24
It was really inspiring to hear such a story. At the age of 24, I was still interning and it was the year i quit trading because of my job. $500,000 from stocks is not a small sum. In our minds, it was "How did he do it?"

Family business met with troubles...
This was what made him step into the investing world. Also, he was influenced by an army mate who read investment books diligently. He wanted to relieve his family of financial troubles, and give them a good life. If i recall wrongly, he shared that he started investing during army too.

Impact to Mr Llama
This made me reflect hard. I have no time to waste. He shared examples such as people making $700,000 by age of 18, and one more on a janitor who passed away with a $8m portfolio.

As much I wish to say, "Oh, janitors in western countries make as much as a graduate here in Singapore (due to income equality)", it is still good message to us to start investing early.
Stories shared by Kelvestor
While describing his family business failure, he recalled his mum only eating bread, while he could enjoy all the food in his school canteen. This struck a chord to me as my mum similarly had to forego her lunch for me. I remember buying her lunch when I was in Pri 6.

By skipping recess, I would have $3, just enough to buy 2 packets of Cai Fan for her and myself for lunch.
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He also shared 2 stock buys. One of it was Vallianz. I have personally profited from this stock before too. He showed that he bought it at $0.06x and sold it off at $0.15x. Impressive!
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Hi-P was a more interesting story of his. He shared that he bought it at $0.5xx and sold it off at $0.9xx. Only to see the stock rise another 100% close to $2 range. This was the mistake he was sharing for the night. Profits lost due to the mistake was $432,000 and this made the room emotional.

What can $432,000 do for you...? Llama portfolio is not even $50,000 to be honest.
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One more example shared was Auric Pacific. This was more relational to us commoners of Singapore. Everyone responded when asked if they know what is Food Junction and Sunshine bread. This re-ignited the idea of Warren Buffet: "Buy only what you understand." 

Mr Llama: "Invest in what you can see, touch and hear." 
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Simply inspirational Kelvestor
Throughout the night, a phrase he said rang in my head continuously.
"If it works, go all-in!" To Singaporeans, how many of you can afford to go all-in? I mean, how if it fails? How risky isit to go all-in? Who will support the parents and kids?

To me, I can go all-in in terms of effort, but not  time and money. This is why tumble mumble trades are still limited to 3-6k usd per trade. Never $50,000 SGD. Buying $50,000 into one stock will be putting my fate onto one stock. If the stock dies, I die too.

But what he meant by go all-in was, to be a full-time investor. Nothing wrong with this. But for folks like me, its better to save up a good sum of money first. We do not have the capital for investing returns to be enough for day-to-day living expenses yet.

So, no all-in for Mr Llama.

The 4 criteria Kelvin shared that relates to Tumble Mumble too 
Stock screener - Identify companies that are:
  1. Net Profit Margin > 10%
  2. ROE > 15%
  3. Net Debt-Equity <50%
  4. Growing profit (past 3 years)
This is good content shared from the workshop. Really! If you are a beginner, this is golden advice. As for me, it resonated with me strongly as Tumble Mumble also has this criterias, albeit not so strict. But I would compare company ratios against Industry ratios to get a picture of the company.

For instance, is the company enjoying a better than industry current ratio? Or is the company's growth better than industry, hence the higher PE ratio?

Using the strategy to capture an annual 20% return vs 10%
Yes, 20% using their in-house method. You have to sign up to learn it. Well, we were showed how $30,000 will turn out if compounded with 20% annual returns for 20 years, compared to that of 10% annual returns. This wow-ed the audience.

This is the magic of compounding. I was not skeptical. I was simply more motivated to make Tumble Mumble work.



One personal issue with using stocks filter (everyone else does use a filter be it through Bloomberg terminal or SGX), is that data is lagging. If a company just released results, share price dropped significantly, leading to a lower PE ratio. Tumble mumble trades are made using PE ratio from Non-GAAP current yearly forecasted EPS. This is to get a picture of current year PE ratio instead of the one you find on websites which is based on past year's earning results.

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Good example shown on Hyflux
I like how he shared on fundamental information of companies. If people signed up for the course and learned about Net debt to equity ratio, they would have found out that Hyflux has a net debt to equity ratio of 127%.

*Net Debt to Equity  = (Total Debt - Cash) / Shareholder's Equity

A good model that is already working
It is really impressive from all the testimonies we have watched, and success cases. GIM is indeed working well. You have 2 choices, to join a model that is already working, or fight hard yourself to create a working model.

Well, I am someone who prefers creating my own working model. Alot to learn from other models too. This is why I attend talks to take in different thoughts and ideas.

Growth investing = Making money over time, not overnight
Growing up in an era of MLM, I know most people encourage the idea of growing money fast. However, Kelvestor reiterated the idea of making money over time. This hit me hard too, as I always close profitable trades too early.

Why do I not hold on to the trades if i am ever so confident? This goes back to the same point of improving my model and trading by experience.

Games - Choose 4 stocks
This is quite interesting and you should go to try it out yourself. We were given 4 choices and allowed to choose one to invest in. Then we were showed the profits and debt ratios, and then given time to consider if we were to switch our investments or not.

Well, I choose a tech stock, like come on, tech is the way to go. And I am proud to say I was one of the 2 that won the challenge. (Bragging rights haha)

We also played another game where we were all invested in a particular stock in a 10 year timeframe. So, each year represents a turn and we could decide whether to sell off our stocks, or to continue holding it. I knew to stand throughout the class. So, each turn, a few of the participants sat down (meaning to sell off and take profits). So, it ended with only a few at the end of 10 year period, and we are the winners. Sadly, there were no prizes given.

Well, the stock is AAPL (Apple), and the message sent to participants is that, you should hold on to growth companies and reap the best returns.

Future Proof your job, and your income
Why do you need a skill like.. choosing growth companies to invest in? 

Isit because you want to make alot of money? Able to quit your job? To fight retrenchment? One idea offered was that if you gain a new skill, then you will be able to better respond with AI and Machines take over your jobs.

Well, I have sort of future proof my job (shall talk about this on another day). But, I agree wholeheartedly with Kelvestor. It is always better to have another skill. You never know what is going to happen. If you do not spend to attend investment courses, then are you better off paying agents or the pros to invest and manage your money for you?
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Conclusion
The workshop was really engaging and enjoyable. It touched on hard statistics and emotional aspects of everyone. However, I find that no losses were mentioned throughout. 

Well, it makes total sense not to mention losses if you want people to sign up for your course?
Still, Thank you Kelvestor for the great workshop! Just a 2 hours workshop has allowed me to learn these much, imagine going for the full course...


~Mr Llama

2 Comments

  1. Hey Llama,

    Kelvin here! I am so happy that you came for my workshop and you shared a honest review! I wholeheartedly agree that there are many ways to learn investing.

    If time permits, let's chat! I am also a blogger myself at Kelvestor.com!

    I read some of your blog posts, especially the one on your portfolio! You are being so transparent.

    ReplyDelete
  2. Hi Kelvin!

    Honored that you read my blog :)
    Yup! A chat is good, we can take this offline via email found on this website.

    I think being transparent pushes one to improve.. good for me since I am still learning.

    Cheers!

    ReplyDelete

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