[INVESTMENT] MEMO – 23.06.2021

 “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man.” - Ronald Reagan (1978)

In this Memo, I am going to talk about the book that had influenced my life and the way I see about money $$: RICH DAD, POOR DAD by Robert Kiyosaki.

RICH DAD, POOR DAD

I picked up this book when I was in college age. I was not really sure whether this is a good book for me to read during that time, but just bought it from a local bookstore as it seems like the contents are written in simple English. When I finished Chapter 1 of the book, I was stuck to the book and could not get ride ot it.

There are several points that struck me: -
- Being rich is a freedom;
- Rich people make money work for them, the poor works for money;
- A job is only a short-term solution to a long-term problem;
- Pay yourself first;
- Financial education is a key to success.

Another great knowledge I learnt from this book is: the difference between ASSETS and LIABILITIES. 

ASSET VS LIABILITY

The author challenged the conventional definition or view of asset and liability. He says that basically most things that we own is not an asset (especially our residential house) but a liability because this residential house does not produce income for you if you stay in that residential house yourself. Unless you rent/lease out your residential house and you can make income out of your rental, then your house can be termed as an asset.

Most people would easily fall into a trap that things like cars, land properties, jewellery are assets. He explained that while they have its own value but they never going to generate any income if they are only for your personal usage.

CONCLUSION

Though this book has some controversial, but the philosophy stated in this book had a huge influence on me and subsequently the way I see the world, especially in investment.

PERFORMANCE 

As of today, there is no investment from me in June. Since the inception of our fund in May 2020, we have been up close to 41.50%. We are still able to maintain our risk level at 4 as can be seen from the “average risk score”. 

So far my investments in PingAn, Bauzun, Tencent and Alibaba are slightly down. But I am not too worried at the moment as their fundamentals are still rock solid.

Stay safe.

Norman Liew 
MNMLH 
23.06.2021