A Financially Empowered Person

concept Dec 21, 2020

According to the Merriam-Webster dictionary, to be empowered means having the knowledge, confidence, means, or ability to do things or make decisions for oneself.

When is the last time you feel the true meaning of the word "empowerment"?

For me, I felt it many times in my life. For example, the first time that I learn to ride a bicycle, the first time that I learn how to swim and the first time that I got my driving license. Those were skills that I pick up that I will make me experience life in totally new ways. I know I could go to different places. I feel a sense of hope and real accomplishment. Most of all, I gain confidence in doing it. And the more I engage with the skill sets, the better I become.

Just a few weeks ago, I was reminded again how empowerment looks like. My son just finished his PSLE examination, and like all kids in this generation, he likes to play with his mobile phones. My wife and I are concerned that he is simply spending too much time on the mobile phone....

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Making Better Choices

concept Dec 18, 2020

"Life is like a multiple-choice question; sometimes, the choices confuse you, not the problem itself." ~ Anonymous

Have you ever attempt a test in a multiple-choice question format? Do you notice that those who finished the test early tend to be the one that ace the test? You might be one of them at some point in your life. When you are competent in the subject tested, the answer jump at you. You will find the test effortless. And yet, within the same test itself, there are probably others who took a bit longer and still come out failing it. Same test, but the knowledge level differ quite a bit. There are some investment skills here that we can learn from the MCQ test. The most important skill is that of working the odds and thereby making better choices.

Let's say you attempt a question with four choices, and only one of them is correct. The odds are one in four that you will choose the right answer. That is assuming that you know nothing about the subject.

But once you know...

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What does it mean to have better awareness in investing?

concept Dec 04, 2020

With better awareness comes better choices. Better choices lead to better results.

The above sounds like the quote from Spiderman -- With more power comes responsibility.

The Better Awareness - Better Choices - Better Results quote, I learn it from my superhero, Robin Sharma. I first read about it in the 5 AM Club, and I realise that it applies to living our life to the fullest as well, not just to investing.

Let me share an incident on how this would apply in the investing context.

In early 2012, I met a prospect in my office who was looking to invest in my discretionary investment account. The client has been a civil servant her entire life and has just retired at age 55. She has withdrawn her CPF savings, sold her freehold landed property and had an initial sum of $2.4 million to invest. We did not have a conversation on whether there is a need for her to invest. She was business-like, there were no small talks, the discussion straight away was about the return. Specifically, she...

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The Implication of Cash Conversion Cycle on Liquidity

concept Apr 18, 2019

 By Puah Soon Lim

Today’s post is going to be about a question that I receive from one of my student at the recent weekend class at the SGX Academy. It concerns the CCC and its impact on a company’s liquidity. Specifically, this is the question that she asked:

“My calculations of the cash conversion cycle for Coy A is 179 days and for Coy B is (-74 days).  Does a negative number indicate more liquidity? In this case, is Coy B more liquid than A?”

She did a calculation for CCC and for Company A, it is 179 days and for company B, it is a negative 74 days. She asked “Does a negative number indicate more liquidity?  In this case, is Coy B more liquid than A?”


I feel that this is a good question to answer and I am going to answer it in this blog post. You may also write to us at this address and if we feel that this is a good question to answer, I will feature it in my blog post.

Just to give all of you a heads up, I have given two...

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