Minmalism in Spreadsheets

Data Tables (Alt D T) are the best way to run sensitivity across 2 value drivers for any variable you want to observe.

In this example, I want to see how ROA and ROE varies with I vary the assumed gross profit margin and the sales growth.

This way, we have a clean presentation. I always believe spreadsheets can be below 1mb and done neatly.

NTUC more worried about their own reputation than rats in their stalls that could harm Singaporeans?

Image:NTUC FairPrice Facebook

A delivery man posted pictures of rat traces in NTUC (Singapore equivalent of Sainsburys and Tesco). NTUC's first reaction was to threaten to sue the delivery man and to expose the delivery man's wrong doing - unrelated to rats in NTUC.


It is clear that NTUC was more defensive of its own reputation than explaining to customers how rats were able to bite into food products. Instead of coming clean with a bigger issue that could lead to lost of lives, NTUC decided to threaten the delivery man. One can assess that NTUC was more worried about defending their name than to address the problem at hand.


I think we need to rethink ethics in Singapore's business ecosystem. It is common sense to every Singaporean that NTUC's potential rat infestation is more important an issue than whether the delivery man stole some bread or not.


Perhaps an MP should ask in Parliament if an investigation of NTUC's warehouses and stalls can take place to Ensure Singaporeans have safe access to food. We need to bring up the ethics of businesses in Singapore. I think we should get citizens to expose these firms and collectively teach them a lesson - the power of the public.


One way is for Singaporeans to go to NTUC and start taking pictures of rats infestation, cockroaches and such. If we are serious about taking matters into our own hands in democratic Singapore, we should consider this option.

成功社交法则


社交除了单纯的“做自己”,也需要技巧。

赢得好感公式:次数频繁,距离靠近,时间持久,质量高

赢得别人好感可以从四个维度着手:频率,距离,时长和强度。

尽量出现在你想要赢得好感的那个人周围,越靠近、越频繁越好。因为拥有相同的环境的人更有可能彼此吸引。

其次, 相处的时间长短很重要。你和某人在一起花的时间越多,你越有可能影响到他们从而让他们喜欢上你。 相处质量-即在有效时间内,通过释放善意的信息,在多大程度上可以满足另一个人的心理、生理需求

用身体语言表示好感:动眉毛,头部倾斜,微笑

与萤火虫通过发光器官来吸引交配对象相似,人类使用眉毛的上下运动来吸引关注。 即使从远处做这个动作也可以告诉对方你没有恶意。

第二个身体动作是头部的倾斜。这也是一个没有任何恶意的姿势,因为在你的头向左或向右倾斜的时候,你会露出你的动脉血管。潜意识里,我们只会向那些对我们无害的人露出血管。相反,如果我们觉得受到了威胁,我们会将脖子向肩膀收缩来保护自己。那些与别人谈话时头部向对方倾斜的人比起头部保持竖直的人显得更加友好,善良,真诚。

第三个强有力的身体语言是真诚的微笑。我们通常认为笑脸更可爱,更有吸引力,更友好,且不那么强势。更棒的是,微笑还释放内啡肽,让我们身心舒畅。很难做到不对向你微笑的人回以微笑;一个回应微笑也会让对方如沐春风。

想要别人喜欢,先使别人觉得感觉良好!

到现在为止,你已经释放出足够的善意了,是时候开始交谈了。 到底该如何进行呢?

社交的黄金定律是,如果你想要别人喜欢你,你先要让别人对他们自己感到满意。事实上这一条是所有成功关系的核心。人们被那些可以让他们开心的人吸引,因为他们想要回报以同样的正面能量给他们。想要以更低的价格买到东西?和卖东西的人聊天,让他们感到开心也许有用。

采用“同理心”的谈话策略。使对话一直围绕对方而不是自己身上。比如你看到卖东西的人站在那里一天很辛苦,可以以问候为谈话的开始。

社交进阶公式:吸引力法则

目前为止,我们已经介绍了社交的基本公式。然而在社交理论里,还有一些其他的技巧,比如“吸引力法则”。

吸引力法则定律一, 相似定律, 即选择那些和你持有相同原则或价值观的人成为朋友。该定律有效的原因是相似的人在一起会强化相似的部分从而促进相互吸引。如何运用这个定律呢?你可以在你想展开良好关系的那个人身上找你们的共同点开始对话, 注意避开那些你们并不是都感兴趣的话题。

另一个定律是“好奇心定律”,即当你对一个人表现出好奇心的时候,你也自动引发了对方对你的兴趣。好奇心是人类普遍的特性,你也可以创造“好奇心”来引起你感兴趣的人对你的兴趣。比如,在某些社交场合表现的与众不同特立独行意味着很有可能别人会来找你攀谈,问你为什么这样表现。

第三个定律,互惠定律,即礼尚往来。你可以按下面的例子来实践这条定律,比如你给别人买了咖啡或者顺便带了什么东西,当他们说谢谢你的时候,先别说“不客气”,而说“我知道你也会为我做这些的。”这样就激发了互惠的机会。

让他人讲自己的故事:

首先,你要懂得倾听。如果你在讲一个故事的时候听的人心不在焉,总是望向别处,这感觉是不是很烦?通常来讲,说话的人很清楚对方有没有在听,所以在别人说话的时候要注意倾听,保持眼神交流,千万不要打断别人。

第二,在互动时注意观察对方的身体语言。有些动作,比如向后退,双臂交叉在胸前或者双唇紧闭都是目前的对话进行不妙的表现。如果你看到了这种行为,你可能一直在讲你自己。当对方没有很好的融入你们的互动时,马上转移到对方更感兴趣的话题上。

第三,你回应对方的方式和内容也会影响到你是否能成功社交。你的语气对于你想传达的信息也很重要。比如,低沉得散心音通常与浪漫有关,而高音则表明有意外的情绪。另外一个显而易见的是,你说了什么内容会影响其他人对你的看法。记得要通过认可他人,赞美他人来让别人感觉很好而将你视为朋友。

最后,用共鸣或同理心来让他人知道你理解发生在你们周围的事。比如你可以这样表达你的同理心,在一个服务生很忙的时候你对他说“哦,你这么忙,我都不知道你怎么应付过来的!”

亲密度:验证关系的砝码

亲密的意思是你和别人的关系是建立在互相理解的基础上的。本质上来说,亲密确保你们发展的友谊对双方都有益。测试亲密与否可以让你知道你们的关系进展。亲密度在人们的心理之间搭了一座桥,并可决定友谊的高度。如果你想要开展并维系一段长期的关系,或者仅仅是想从一面之缘的陌生人那里捞点好处,你需要通过测试你们的亲密度来明确你是否可以达成目标。

怎样测试呢?对视是一个百试不厌的方法。如果一个人拒绝在你身上停留目光,那么你还需要加把劲使得你们可以有长时间的眼神交流。

你也可以通过观察行为的方式,比如轻轻触摸或者是模仿对方的动作来测试。由于我们和比人不熟悉的时候,通常只是短暂的触摸彼此肩膀以下部位或握手,碰触其他部位就可以昭示你们的关系非比寻常了。当你们都就坐的时候轻触对方小臂或膝盖可以看出你们的关系亲密与否。

由于心理联系紧密的两个人在谈话时会模仿对方的动作,你也可以通过镜像模仿对方的动作来测试亲密度。做这个,你需要用“领导与跟从”的方式改变你的身体姿势,比如交叉或打开双臂。如果另一个人模仿了你,便证明你们之间的亲密度是很高的。

Minimalism principles to cost cutting - don't sacrifice quality


When you cut cost, you need to maintain quality standards. You cannot decrease service levels.

I like the principle of “Less”. You can start by saving space and unnecessary activities that do not implicate operations. Space is often something you can consider. Also consider hot desking. You don’t have full capacity all the time. Hot desking allows you to cut down space use. 

Another way to cut cost is to outsource non-core business operations. It is cheaper because you won’t have to employ someone and consider costs comprising wages, insurance, training and development.
Also, create the right incentives. Give sales people KPIs that help the firm, not close deals but leave operations unattended.

No matter what happens, firing your staff should be the last option. It creates insecurity and fear in the firm. Once that happens, valuable employees may start finding new jobs. Give employees the option to go for unpaid leave.



We need to shut down tax havens


If an investor from country A buys stock from country B, accounts of country B would record the sale as a liability. If the investor from A record this as an asset in country A, he would be taxed on income of this stock. If the investor in country A were to park it in a Swiss account, he wouldn't be taxed.

Since the financial crisis began in 2008, economic growth has dwindled dramatically, leading to increasing debt. In 2014 alone, income hidden away in tax havens removed $78 billion in tax revenue for European countries.

As we speak, the rich get richer by escaping tax. We need forceful solutions. Tax havens should face economic sanctions and trade levies.We need international compliance. 

We can create an international wealth database to help tax authorities to verify when banks are withholding client information.

Multinational corporations also avoid paying taxes. They earn profits from around the world and apply transfer prices to minimize tax. These practices harm society and add to increasing economic inequality. We need to shut down tax havens.

Don't underestimate the power of a loyal customer - a few tips based on personal experience



The success of a company is tied to the relationship with their customers. Don’t underestimate the power of a loyal customer to spread the gospel of your brand.

Customers are not interested in unclear product propositions. We want to relate to your product in an instant. Your product has to be intuitive.

A loyal customer is valuable. They generate a lot more revenue than others.

A loyal customer talks about your product and return many times to buy your product.

If your product is failing, you need to learn what your customers want. Rethink your product specifications – does it meet the needs of customers?

Visual impression means a lot. If any product is unappealing, it’s hard to get customers.

Your team members are only second to the customer. Hire very slowly, but fire quickly if they are not a good fit.

Consumerism is screwing us up. Own lesser things, have lesser problems in life


How many things have you bought that you have never used before?

Most of us make impulse purchase at the flea market and online. While this trend may not be harmful, it is certainly not without a cost. Hoarding things make it hard for you to stay organized. These things have the potential to destroy our life, take away your attention.

Consumerism have been touted as the engine to fuel the economy. Advertisers also claim that it makes you happier. But today, we want to be anti-consumerism. Buying more things does not make you happier.

You are suffering from consumerism if you bought too many things and if your home and cellar is filled with useless items. Do you still determine happiness by the number of assets you own? Materialism means you have more things to organize and to worry about. Buying more today means less money for tomorrow. Buying more also means contributing to inflationary measures – i.e. your money is worth much lesser.

Many of you will notice that having too much of something does not satisfy. If you have too much of a good food, you begin to get sick of it. Consumerism causes depression because you are in the rat race to continue to buy more, buy newer models of cars and phones.

So what should you do?

Get rid of things you don’t use. Get rid of emotionally charged things. Opt for a simpler life. Experiences hold a higher value than material possessions. Experiences create bonds and they shape our identity more than possessions. A week of family bonding time can strengthen ties. A few more cars will not. You can try being an anti-consumptionist for a while. Detox your life.



Head start to success: Simple principles of a successful career and business venture


Success is unrelated with education

When it comes to business, most people think there’s an official starting line: A degree, an apprenticeship, or stumbling on the right amount of money.

You certainly don’t need an MBA to have a business. Common sense is most important. You will also need to read a lot. Read books written by successful businessmen. It’s the cheapest way to absorb decades of experience.

Will MBA payoff?

The MBA won’t be the one place to pay to receive knowledge and contacts to start a business. After considering the opportunity cost of jobs, MBA fees can go up to $200,000. That’s expensive. But does it lead to success? No, there is no correlation between success and MBA at all.

The 101 of value

You don’t only need to think of a product to tell. It has to be a product that people are interested to buy. Buying decisions are triggered by emotions or specific requirements.

Imagine selling a bottle of stale water to a hiker lost in a desert. He’d be willing to pay just about anything for that lousy bottle, just because it responds to his predominant need. The lesson here? Find your own desperate hiker.

There are four kinds of need

  • Desire to acquire and collect thing
  • Desire to feel valued and loved
  • Desire to learn and satisfy curiosity
  • Desire to defend ourselves.

There is no cheap way to communicate with your intended market segment. Sometimes, it’s better to deliver a hand written note than to advertise on social media. People don’t buy a product for its own sake. They buy it because of the end result they’re hoping to attain. For example, a woman won’t pay $20 for a lipstick simply because the color is nice. She buys it because she hopes it will make her more desirable. This is why testimonials are important.

You can close a sale even if the customer is reluctant

The owner of a pet shop can simply convince a prospect by allowing the owner to bring the pet dog for a week as a trial. It is very lightly that the owner will not return the dog. Clients hate to make a bad choice. So we can let them test the product and if they don’t like it, allow a refund.

Communications is key

You might have a great idea, but you need clear communications to implement. If you want someone to do something, you should tell them why. People like to understand what they are doing. If you explain why, you don’t have to micromanage every step.

A simple way to communicate better is to stop putting others down. People can also become defensive and try to save face rather than understand your comments. Create a safe environment for people to share ideas.

Minimalism in reading - the equivalent of speed reading


First, you don't actually have to read everything in a book or newspaper to understand it. In fact, it's impossible to read everything that passes over your desk. Instead, you should get in the habit of selecting and prioritizing what's actually important. 

Second, you don't have to remember everything you read to get something from the material. We develop this misconception about reading in school, where we're under pressure to remember everything we read in our textbooks because we'll be tested on the material.

If you want to retain the information for the future, you'll need to create an easy retrieval system.

Try writing down the crucial information (electronically or on paper), or make highlights and notes in the margins. Then, simply file the materials away. This way you can find the information easily, and it will also take away the pressure of memorizing everything.

We need to get the rape culture out of the way for progress.


 “Like a spider, she drew him into her web.” This was said of an 11-year-old girl when she defended against a guy who tried to rape her. Rape victims across the world are blamed for luring guys to rape women.

In this case, which happened in Cleveland, Texas in 2010, the 11-year-old girl was repeatedly gang raped by several men. You might agree that this was a clear cut case. But the defense said the girl was audacious enough to wear makeup.

Facts were twisted and used to blame the victim. The public were shocked that the men had been “seduced” into such behavior. There was a lot of concern about the case affecting the men for the rest of their lives.

These attitude is the product of the culture we live in. We expect woman to adhere to rules and men’s unspoken policies to avoid getting raped. Girls are told not to go out alone at night, not to talk to strange men you don’t know, not to wear revealing clothing.

We cannot keep putting the responsibility of rape prevention onto the victims makes it easier for people to blame them if a rape does occur.

Rape doesn’t result from the actions of a small number of men. We need to rewrite rules of society.

Buy index funds, but if you insist on trying our stock trading for yourself, read this.


I'm prompted to just tell investors to buy ETFs or index fund. But I realized not many investors are aware of the basics and still believe they can beat the market. So here's a simple 101 of stocks.

You own a business when you own a stock

Every stock represents part of a business, and when you buy stock you’re actually purchasing a share of the company. So in the same way that entrepreneurs can own a business outright or split ownership with other partners, as a stockholder, you can own shares of a company.

But while entrepreneurs and partners work day in, day out to manage their business, as a shareholder you don’t have any responsibility for managing the company and can sell your shares whenever you want.

So stocks are effectively pieces of a company, and many companies make their stock available to the public. This is a strategic decision that depends on the size and financial needs of a company. Every business relies on financing, but some entrepreneurs use their own savings while others come up with the initial capital by asking family and friends like the founders of Google did.

As a company grows, its funding often needs to grow with it. Eventually, the company can become so big that it only has two options for how to raise the massive amounts of capital needed to run its daily operations and make investments


  1.        They can borrow money from a bank just like an average person would do to buy a car or a house.
  2.        They can sell ownership of the firm for money.

Take emotions out of the equation

Financial news can create distress. Investing is about keeping calm and going for the long term.
In fact, one of the best times to buy stocks is when investors’ emotions drive down financial markets. Market panic is the best tool to get cheap stocks. Don’t feel a sense of “missing out” when your peers make, let 20%, and you sat out of the deal. There is nothing to panic! Investments is best done when you are calm, and your only counterparty is the market.

Don’t invest an amount you cannot afford to lose. Fear can drive people to make irrational choices.

  • When looking at a stock, it’s best to act like a five-year-old and keep asking why.
  • Why do people like or need the company’s products in their lives?
  • Why do they consume its products?
  • How is the company making money?


If you don’t know the answers to these questions, its better off buying the entire index through index funds of ETFs.

Today, financial markets are prone to drastic drops and spikes. These changes can be caused by mood swings prompted by over-excitement and disappointment.



Don't make decisions when you are stressed.



Adult humans are naturally unsettled by things they don’t understand. Light ambiguity can be amusing or intriguing, but more extreme cases of ambiguity can induce us to make rash decisions.

Ambiguity will always be a part of our lives. It’s important to be able to cope with it, especially in key situations in life.

Don’t make important decisions when you’re stressed out. Don’t quit your job just because you’ve had a bad day at work. Wait until you’ve calmed down before making any big decisions. If you’re feeling anxious about some kind of ambiguity, you’re not thinking straight.

Millionaires don't all lead luxurious lifestyles. Your goal may be wrong



Many of us want to be millionaires to lead a luxurious life. Yet, I know many millionaires who become millionaires by avoiding flashy lifestyles. They prefer to be financially secure and independent.

Financial independence simply means you can avoid work and lead a credible lifestyle - travel, have fun, mean just below your means.

Many people prefer a lifestyle they cannot afford. They drive cars, drink wine, gamble, go for expensive holidays. They stress over how to afford their lifestyles. The alternative is to consume lesser and you can immediately be richer. Rich is a relative term when you compare what you have to how much you need.

Productivity at work and at home. Develop habits, stop multitasking and say no more often


When you make something into a habit, doing it becomes painless and effortless. Consider your daily habits. Perhaps you make yourself a cup of warm tea right after you wake up. If you have done this for years, it becomes a habit and it is painless. If something is important to you, make it into a habit. At first, you have to do it conscientiously and repeatedly. One day, it will be automated. 

Multitasking is a waste of time. Imagine you are using a water host to clean the floor. You need to focus on one source and you need high pressure. If you split the source into a few hosts, the effect of cleaning is weakened. Give that one thing you do undivided attention. Move on after you completed the one thing.

Say no more often than yes. Pick what you agree to do carefully. A simple rule is to make "no" your default answer. Do only the most important things in life.

What happens when you fail to spot blurring of lines between sectors and market segments


A technological innovation disrupts. Before the 2000s, Dell was a market leader and enjoyed massive profit margins. After that, Apple introduced tablets which ate into the market share of laptops and computers.

It may not be easy to spot trends ahead of time, but leaders must try to navigate hints and signals. Nokia didn’t act on the series of patents that Apple was filing secretly over the years.


You need to find talent that can spot developments early in an industry, and develop a taste for cross sector analysis. Disrupt happens when one industry crosses into another. Think about the implications of mobile phone technology and the financial sector. Major changes to take place soon. The same will happen in other industries when sectors merge.

Intelligent investors understand the importance of stock-market history


This is an excerpt of a summary of the Intelligent Investor. You can choose to read the article or simple read these next 3 words to save your time and pain – buy index funds.

Looking back through history reveals that the stock market has always been defined by regular ups and downs. Often, these fluctuations can’t be foreseen. The unpredictability of the market means that investors need to be prepared – financially and psychologically.

Economic crises, like the Wall Street crash in 1929, are a fact of life, and happen from time to time.

Thus you need to ensure that you can take a big hit and survive. This means that you should have a diverse stock portfolio, so your investments don’t all get hit at once.

What’s more, you should be mentally and psychologically prepared for crisis. Don’t sell everything at the first sign of danger. Remember instead that, even after the most devastating crashes, the market will always recover.

And while you can’t predict every crisis, looking at the history of the market will give you a better idea of its stability.

Once you’ve determined that the market is stable, focus on the history of the company in which you’d like to invest.

Look, for example, at the correlation between stock price and the company’s earnings and dividends over the past ten years. Then consider the inflation rate, i.e., the rise in prices generally, in order to see how much you’d really earn, all things considered.

For example, you calculate a 7-percent return on investment within one year, but if inflation is at a 4-percent rate, then you’ll earn a return of only three percent. Think carefully about whether it’s worth the effort for only a three-percent return!

When it comes to shrewd trading, a knowledge of history is a fine weapon, so be sure to keep it sharp.

The first thing you should do before you invest isn’t to look at a stock’s history. That’s important, sure, but what’s more important is looking at the history of the stock market itself.



Work Email Tips



When you are working on a document, don't leave the email open. Deal with work one thing at a time. Distraction is painful. You take twice or more time to go back to what you were working on.

Read your email aloud or in your mind before sending. There will almost be always silly mistakes. You want to look professional.

Keep emails short. Try to rewrite them so that you can your points delivered the shortest possible way.

If you bcc someone, do it because you don't want to get that people flooded with replies. But always tell the rest of the group who is bcc-ed. You don't want the embarrassment when the person in bcc replies.

I find that changing the title to focus on the new key points is important. Helps you find the content you need quickly.

Writing as simply as you can


Writing is simply talking without being interrupted. You have all the time to think and you have all the time to deliver the message. Writing is also efficient because the writer does not need to repeat the message.

One thing I learnt about writing is the beauty of simplicity. Simplicity in terms of sentence structure and the type of words used.

Keep your thoughts clean. Write to tell your readers what's on your mind. The shorter the sentence and the entire piece, the better.

Where possible, blog on a platform with minimal scripts. Don't use advertisements. Don't use wordpress.

Start today.

Inflation and your pay


I would like to address the demand for cash balances. How much you will keep in your cash balance is a function of price levels.

If prices fall by 1/3, people will need 1/3 less money in their wallets. In the same way, if prices increase, people will need more money in their wallets.

Wallets is merely a simpler way to address liquidity. The more they need their money, the more liquid they need their savings to be.

Prices of money are determined by supply and demand of money
Purchasing power of money is merely the inverse of price levels. As prices rise, the purchasing power of money falls.

If someone uses fake money to purchase goods and services, the supply of money increases and the new price level will increase. The value of each existing dollar is diluted by the new dollar. This is similar to the inflation process. If the government releases more money into the system, the value of your money decreases.

In other words, if you did not have a pay increase this year, the value of your pay package would have decreased by the level of inflation.

Which is a more dominant force in changing prices? It is the supply of money. Government and financial institutions can collectively employ looser monetary policies to increase the supply of money. Theoretically, they could print money, drop it into your mailboxes and decrease the value of money. They could also lower interest rates to increase lending.

I hope all these are clear. But if there is one thing I would like to stress, it is that the value of your money is determined by the supply of money and the demand for money. The value of your money decreases when there is inflation. Pay increases matching inflation is not an employee benefit. It is to ensure the value of your pay remains the same as the year before.

Websites that disrespect consumers should be made irrelevant


Using too many plugins and scripts? Didn't optimize your images? If you don't respect the pockets of consumers you really don't deserve many viewership.

Consumers can collaboratively boycott these sites. Create your own content. What can you do to generate sustainable content for the Internet? 

1. Use simpler words. Don't embed scripts if you want to tell me your Twitter username, type it. Don't embed the code. 

2. Use plain html. You don't need to customize CSS in a Wordpress environment.

3. Optimize images or don't use images at all.

4. Make impactful content. If they are not impactful, use a social platform.

Website Obesity



As a minimalist, it pains me to see how websites have become "obese", overloaded with information and pictures unnecessarily.

What's taking up so much space? Besides pictures which I feel are necessary for visual impact, the biggest reasons are scripts, advertisements and social sharing functions. Merchants and website makers now feel the feel to overwhelm our websites with dynamic content.

We need to strike back. This is why I dislike Wordpress and have moved most of my blogs back to simpler platforms like blogger.

Who gets hurt when website content gets more "obese"? It is us, the consumers. As we consume more data on mobile phones, we will suffer as websites become more bloated.

Here's what we can do to tackle #websiteobesity

1. Blog on simpler platforms

2. Boycott scripts

Working from home - creating value with lesser footprint



I have been thinking about work. Work is the processing of creating value for society and in return, the worker gets remunerated for the value he or she creates. But in cities, many people travel to office for "work". Work becomes a routine to appear somewhere else. They don't necessary give their best because work is not always motivating. They may not like their bosses, their team or even the work they do.

I am clearer now after observing working styles across Europe, China, Australia, Taiwan and Singapore. People appear to be self motivated when they commit time to work on things they love to do. While this is simple, it's often underrated. Working on something you love creates unspeakable value for yourself - as you created, you have fun. No amount of money can replace this feeling. Bosses and workers are equally responsible for ensuring workers love their work. Without joy, they will come to office late, they will be unhappy every night and look forward to the weekends. This is definitely not what man is made for.

Neither do I advocate that everyone takes on online trading and blogging. Most of these are just eye catchers and don't bring in sustainable income. I'm advocating that everyone be open to take a pay cut to find work nearer to your home and to do something you like. In many circumstances, you may find that you like to bake, make clothes, host friends. Be adventurous and be honest with yourself. You can start a bakery from your home and you can start a B&B if you live in a private apartment in Singapore.

A simpler way is to initiate a pay cut to work lesser hours. Take the hours you saved to think about a new business. The new business does not have to be an online venture, it can be brick and mortar. I own a rather brick and mortar business of tailoring. Anyway, the lines between online and physical sales is blurred. Revenue collection online is now far more convenient.

I advocate that you escape from the 9 to 6 pm lifestyle. Do not work on anything that you don't enjoy. Find that spot that you love and work hard on it. This is not new at all. In the early 1960s and 1970s in Singapore, we used to do household chores for income. My mother was a tailor and my relatives sold products door to door.

How to buy Index Funds in Singapore


I felt this post was necessary to give Singaporeans a no nonsense guide on buying index funds. I'm not paid for this post, so you can be sure this is objective. I was the President of the Society of Financial Service Professionals, Singapore and am a CFA Charterholder.

I won't address why you need index funds again.Going straight to the point, there are 3 ways

1. POSB $100 min a month investment in Singapore Equity and Bond ETF. Search POSB ETFs and you will see a monthly investment plan. There is a sales charge apart from the monthly fee.

2. You can buy ETFs off the exchange. To do this, you need an account with a local broker. You will always need to pay the minimum transaction fee of $25++ per trip.

3. You can buy ETFs off the exchange with Standard Chartered Bank. Note that they will be your custodian, not the CDP. There is no minimum transaction here.

Other ways - you can buy from Fundsupermart, but I am a strong believe of going direct to buy from the exchange, never from an intermediary. 

Important Note on Insurance


The Short Story

Buy term life insurance and critical illness insurance because you will regret if you do not.
The Long Story

Many don’t appreciate insurance. Most regret only during the occurrence of risk events. When these events occur, accidents and prolonged illness can deplete your savings rapidly.

Many may delay the purchase of insurance because it is just to justify the returns from the expense. This is also why investment linked policies seems emotionally easier to sell.

A survey by LIA in 2007 found that the average policyholder is under-insured by as much as $362,000.

Plans that are bundled with savings and investments such as whole life and investment linked products seem to be more popular. The focus on cash value always undermines the importance of protection.

It is hard to price protection. That’s why it takes so much effort to convince someone to buy the protection only product. If agents sell a plan coupled with savings and investments, the product seems more attractive.

Premiums for whole life plans can be much more expensive than a simple term policy. The savings component can be easily parked somewhere else.

To determine the amount of insurance you need, it is good to start with a needs analysis. An advisor will have to understand your circumstances to ascertain how many years of income is needed should a risk event occur.

Many planners do not take into account the required household Cashflow. When planners are more concerned about their own earnings, their clients may suffer from a lack of Cashflow.

It is also not coincidental that the least sold insurance and the cheapest for customers, term, has the least commissions. Term is flexible in terms of coverage horizon. Logically, you may not require life coverage after your retirement because you have no or little earnings power and you should be able to save enough for bequeathing needs. Insurance works best to cover the risk of losing income so that your dependents will not suffer.

Delay the purchase is not a wise decision. If you are struck with some conditions, insurance companies may not admit you into their plan?

Please do not switch plans because there will be an underwriting process. If your health has deteriorated, you may be faced with higher costs or lower coverage.

Truth about insurance



Investment Linked Policies and Wholelife policies are very expensive.

For the first few years, your agent will receive up to half of the premiums you pay. Do you want to enrich someone else or yourself? The better choice will be to invest in Term Insurance which is the cheapest option. Better still, do it yourself. Compare prices online and get the cheapest!
Plain is better than complex.

Some insurance products have multiple critical illness claims. These are very complicated options. Why would anyone claim a partial amount for the first occurrence of cancer and claim the rest during the second? Product originations will do all they can to create weird products. Please just buy plain term products.

Buying direct is better than buying through an agent.

Try not to use agents. They call themselves planners but most of them are not specialists in wealth management. They take some exams and meet the minimum bar to sell products. To trust your money with a stranger, you will really need someone who at least, is a CFA Charterholder or a qualified money manager. Planners do not go through the rigorous quantitative training of financiers. There are simple rules to follow for insurance. If you really need help, find a CFA Charterholder or find an adviser with decades of experience, at least.

Yes, you need Death coverage but up to the extent to cover your income.

Your family should not profit from your death. Just estimate your future earnings and cover up to 10 years of your income. Your family members just need a lump sum to tie over while they recover from death of a relative. The purpose of insurance is to mitigate risk, not for gains.

The Giffgaff effect in Singapore for mobile plans


It’s coming. Myrepublic has hit the pain point. Customers are on the brink of being released from costly data plans. It does seem like the 4th telco understands the need to alter the existing value system. In this era, we use mobile for everything.

Mobile data helps alleviate the pain for travel on public transport and helps Singaporeans execute complex tasks that used to be physically troublesome (pay fines, banking, shop etc).

Hardware has caught up. Our iPhones and new android machines have the same if not more computing power than PCs 5 to 10 years ago. But Singaporean data plan providers have chosen to be milk customers instead of rethinking their value proposition.

Our business models have not caught up. We are still trap with the minimum 300 mins and 1000 sms. Those are base fees that force you to commit $15 dollars for nothing. Hardly anyone uses calls and sms. Above that, they layer prohibitive fees for data — especially if you exceed the amount of data you contracted for. That’s not pay per use. That’s a fine.

The government has generally stood by these telcos because frankly they are local champions. They employ a lot of Singaporeans and higher profitability means good pay and good returns to Singaporean workers and investor. But the lack of competition prohibits innovation.

We badly need cheaper mobile data plans. Kids and students need to consume more data. We don’t want to micro manage what they do with it. But we want kids to be at the forefront of technology. Be exposed. That’s the first step. We also need every Singaporean to be mobile ready so we can implement smart nation initiatives. We could possibly be using mobile phones to tap on MRTs, we could mass adopt smarter payments systems and we could help formulate better policies with data.

The current pricing model is unsustainable. The Giffgaff effect has arrived. We will see a telco serve an entirely different segment (I believe this is the new majority) of customers who want cheaper mobile data and little or less other value added service. It’s a battle of pricing model. Check out our peers in Taiwan, Japan and even the medieval UK.

One day we will see no frill plans like this

  • 10 gb, 15 mins talk time, 100 sms — $60
  • Unlimited data — $80 to $100

If you read this, share it or respond so our politicians know what we want and can reflect this in parliament. Takes too long for our conglomerates to understand the shifting grounds globally. Perhaps they already do, but they prefer you be exploited.

BreadTalk and Trust

We recall how Bread Talk represented that the soya milk they sold were fresh. But we later found out it was Yeo's soya milk. Arguably, not as fresh as they want it to sound. Post this incident, I have hardly purchased anything from Bread Talk.

Businesses that can win the trust of consumers develop competitive advantages. Consumers are happier to be associated with the brand and they are prouder to share their purchases with their friends in person and on social media platforms.

A firm needs to build moral capital in order to lead effectively in their respective sector. Moral leadership gives legitimacy for the firm to transform their businesses. Especially in Asia, a virtuous company must understand that it cannot pursue profit at the expense of its customers.

The basic elements of a virtuous organisation comprises courage, perseverance and discipline. In recent news, BreadTalk seems to lack all three of these elements. They lack the courage to come clean about your mistakes, they show a clear lack of perseverance and discipline to grow their business the right way.

I am skeptical about the future growth of a firm that chooses to lie about their products to their customers. I am skeptical about BreadTalk as a symbol of success in Singapore.

Change or be changed


Singapore must take a leadership role in so-called disruptive technologies like third-party apps such as Uber and GrabCar. If we do not innovate and create disruptive technologies, we may not be well placed to react to global trends in time, to our detriment. We have seen how Uber disrupted the taxi industry. Years earlier, data-based messaging services such as WhatsApp disrupted the SMS business. Paypal and mobile payment systems eroded the retail businesses of banks.

Some countries with more resources and a larger domestic market may be able to withstand such blows, and mitigate these effects of disruption at later stages. Singapore does not enjoy such luxury. We must be at the forefront of these disruptive technologies. In the case of Uber for example, it would be very much in line with our economic strategy to persuade Uber to move its Asian headquarters to Singapore.

Some still hold the view that we can resist such technological disruptions, such as through regulatory legislation, in order to protect local interests. We would only be creating inefficiencies, and allow the world around us to move ahead.

The process of technological disruption will be painful. Admittedly, disruption may threaten some jobs. But if we can lead the way, we create for ourselves more time to mitigate the effects of any such negative socio-economic situations. This is a crucial learning process helps to boost our resilience towards potentially catastrophic changes, which are beyond Singapore’s control anyway.

The next frontier for disruption would be the service industry, especially within the F&B sector. Eatsa, a high-tech fast food restaurant recently opened in San Francisco. Eatsa revolutionaries the dining experience with full automation of almost all processes in a F&B business, especially in serving food and cashiering. With the exception of a few kitchen staff, there is not a human in sight. The restaurant has received good reviews. This marks a new era — technology has begun disrupting the low skilled service industries.

Singapore’s service industries currently requires a considerable low-skilled labour force. This has all sorts of political ramifications with regard to debates on immigration, which sometimes borders on xenophobia. Disruptive technologies like what Eastsa is pioneering is therefore the natural way forward.

Policy makers cannot shield Singaporeans from these changes. Singapore and Singaporeans will be worse off, if we over-regulate such technological innovations. It makes more sense for us instead to adapt to such changes. Beyond adapting to changes, we will also need to take the lead in the disruption of established industries.

Regression to the mean

I want to talk about regression to the mean because this will transform the investment industry.

Look at the table above. Well performing funds do not stay at the top. They revert to the mean. This implies if you had bought a fund simply because it made good results in the past, you are more likely to lose. Simply put, if you came first, overtime you will underperform to emerge somewhere in the middle (the mean).

I get it that many professionals tell you they have insights. They print beautiful brochures. Anyone can report good results. Think about it this way, you came in 20th in a class of 40th. How do you show you did well? Well, you can say you were top 5 of those who went to the same club as you did. You could also say you were first in the entire neighborhood you stay in. These could be facts. But it does not take away the fact that you only came in 20th.

  • Fund performance is hypothesized to be random
  • Cost and fees are everything. Buy the cheapest that gives you the broadest diversification
  • Please buy funds yourself, direct, not through advisors. They take a big cut





Con men and cheaters who teach you how to trade for a lot of money

Many errant businessmen are selling trading courses. No one with a working formula will reveal their “magic formula” for a few thousand dollars. The efficient market hypothesis states that any formula that takes, if released into public hands and if adopted by the public, will result in the nullification of the effects of the formula.

But the case is different if the formula is one based on simple probability. 50% of the time it works, 50% of the time it does not work. You sell the formula for thousands, show the cases when it works, find a reasons when it does not. Offer advice on hindsight, give many caveats for future looking tips. This is an old business. People have sold gambling tips over centuries. Today, the same con men are legitimizing this trade by dealing with regulated instruments like stocks.

Let me unveil the business model. They get you in to attend a free course, hype you up, sell a 3 to 4 day course for thousands. At the end of the course, they sell you more courses and formulas and unique programs. You get sucked into the program. Just when you think this is it, there’s more. You signed up with one of the brokers they brought. Every trade you make, they make a fee, or at least, they earned an introductory fee.

If you want to learn how to trade FX or stocks, read a proper textbook. There is no short cut. Keep a few honest financial blogs. There’s not many.

Is MP Desmond Lee right about our crime status in Singapore?


Is MP Desmond Lee right about our crime status in Singapore?

MP Desmond Lee said that Singapore achieved low crime rate with a lean police force comprising 9,400 regular police officers. He added that this was low compared to other cities such as London, New York and Hong Kong. However, he did not indicate whether crime rate had increased or not.

The mid-year crime statistics released in August 2015 (16,575 cases) was 6.7% more than that of last year during the same period. In the previous year, crime in 2014 increased by 7.4% from 2013. Does the MP think that as long as we have an efficient police to crime rate, Singaporeans can tolerate crime increases?

In a Parliamentary reply in February 2014, we found out that we have about 6000 auxiliary police officers. Perhaps our police force is not so lean after all. 

Secrets to buying insurance

Should I buy from a friend or direct?
Try not to buy from an adviser because insurance commissions can be very high. Yes, it can go up to 50% for your entire first year’s premium. This is why you should go online to get one yourself. Simply Google “Compare Insurance” to find out portals that can help you spot the cheapest coverage.

How do I shop for insurance by myself? I don’t even know what is needed?
There are just a few categories of insurance.
  • Health insurance mitigates the risk of falling sick – I recommend to upgrade to cover private hospital expenses
  • Life insurance – I recommend to cover your projected income until the age of retirement. By retirement you won’t need insurance because your savings is supposed to take over. Frankly, if your family is wealthy enough to survive should you pass on, forget about this.
  • Critical illness – I like this. Buy this because you don’t want to be a drag to your family when you are critically sick. Note that both euthanasia and suicide is illegal in Singapore
  • Buy term insurance. They are cheaper. Do not buy wholelife or ILP. There is, however, a special case for ILP where you can choose to maximise coverage and use the rest of the remaining units to invest (very little).

Honestly, the products that an adviser sells you won’t be able to help you retire well. You need to seek higher income and, perhaps, work harder.