Despite working harder than my peers, I realised that my wealth does not seem to be growing and I don’t seem to know why.
I believe you are reading this right now because you are an intelligent person who is looking for reliable ways to invest your hard-earned savings. You are looking for tested and proven, low-risk methods to generate returns that are higher than what you are currently getting.
My grandfather was the one who first introduced me to the world of stocks and shares. Since I was aged 15, he would give me share certificates of Singapore and Malaysian listed companies as red packets during Chinese New Year.
However, one of the key reasons that really got me started in investing was because of the people I met while I was training during my early days. A number of these people whom I spoke to were extremely fearful that their jobs and incomes would not be secured when the next recession hits. Some were stressed out because they were struggling to meet the financial commitments of their families.
Moreover, for most of the older folks that I talked to, many expressed regret that they did not save and invest enough when they were young to fund their retirement and they wished they could turn back time.
It was then I realised that if I wanted to provide a comfortable lifestyle for myself and for my future family, I needed to find a find a way to generate sources of income, that are not at the mercy of the economy, and I needed to start as soon as possible.
At the same time, as an avid reader of self-development and wealth creation books (such as Think & Grow Rich by Napoleon Hill), I learnt that my wealth did not just depend on how much I earned, but rather how much I was able to save and invest.
Thus, with these motivations in mind, I decided to venture into the stock market. However, I did do so without much prior knowledge. That was when I realised that a little knowledge can kill!
In just two years of investing in the stock market, I was shocked to realise that not only did I not make any money, but most of my stock holdings had fallen in value by more than 30%!
To make matters worse, one of the stocks that I owned became bankrupt and was delisted from the stock market.
I lost close to $30,000 as a result! (pretty devastating for a young chap like me back then)
It did not help that friends and relatives told me that the stock market was a legalized casino and that buying stocks was as good as gambling.
Frustrated and disillusioned that I had almost lost my entire savings because I had simply listened to the ‘advice’ of these ‘get rich’ books, I decided to sell whatever stocks I had left and deposited whatever meagre proceeds I had gotten into ‘safe’ instruments like insurance policies and fixed deposit.
Luckily I was able to turn things around.
For the next couple of years, I kept asking myself, “What did I do wrong and what are the secrets to investing successfully?”
Fortunately, after thoroughly researching on how the world’s best investors like Warren Buffett and George Soros made their money through investments, I finally realised why I was ‘burnt’ in the stock market – I had broken all fundamental rules in investing.
At the same time, I discovered that stocks that generate consistent profits tend to obey 10 criteria (I will share with you more about these 10-steps when we meet in person).
Armed with this knowledge, I started to invest again during the economic depression in 1998-1999, buying stocks of highly profitable and undervalued Singapore companies that fulfilled my 10 criteria. At that time, I bought stocks like SIA, OCBC, DBS and Keppel which were selling at ridiculous low prices.
Sure enough, within 6-12 months, when the stocks recovered, I had more than doubled my investments and made back all my previous losses.
Subsequently in the dotcom bubble burst of 2002 and the financial crisis in 2009, I once again spotted various opportunities (missed by most investors who were frantically dumping away their stock holdings) to buy many great U.S companies at bargain prices.
Within the next 12 months, I had again more than doubled my investments!
In 2004, in a bid to help more people achieve their financial goals through investing successfully, I decided to set up the Wealth Academy Mentorship Programme to impart all the essential principles of financial and investment management to people.
I am happy to share that this programme has been running for more than a decade now and over 8000 individuals from several countries have benefited from the programme.
Now wait. You might be thinking this sounds crazy! How is it possible to get more investment returns using a smaller amount of capital?
Let me explain using an example.
Imagine there are 2 individuals David Tan and Peter Lim. Both are age 35 this year and believe in the importance of investing and decide to set aside $300 each month (or $3,600 per year) to invest in a diversified investment fund that yield an average return of 12% every year (when we meet in person, I will share with you a simple method where you can invest with minimum effort and yet still average about 12% return on your investments)
The difference between them is that David starts to invest early at age 35 and puts in $3600 yearly into the fund for the next 8 years. Whereas Peter only begins investing 8 years later at the age of 43 and puts in $3600 yearly until the fund matures.
Let’s take a look at what happens to the value of their investments when they both turn 60 years of age.
Believe it or not, David made $156,580.72 more than Peter, despite investing $36000 less in the investment fund!
So how did this happen? Here’s how.
By investing early, your investments have a longer time for the power of compounding to exponentially increase the value of your investments. Therefore, by starting early, you have a huge advantage compared to another investor who begins much later.
At this point, you might be asking “Adam, I would like to invest now but I don’t have much savings and can only save a small amount of money every month. Should I start to invest now?”
Here’s my take – if you don’t learn how to invest now and start investing with whatever amount of investment capital that you have, you are likely to spend that amount on frivolous items anyways.
What’s more, the scary part is the longer you wait, the lesser the amount of money you make in the end!
Most amateur investors and even some “seasoned” investors often complain that it is hard to make money consistently in the stock market, blaming the stock market for their losses.
After speaking to thousands of amateurs and professional investors, I came to realise that most amateurs often get “burnt” because they invest based on emotions and/or some random criteria.
They would usually buy a stock because they ‘feel’ that the stock price would go up or based on a ‘tipoff’, without any idea on how much the stock they are buying is worth. Trouble is, amateurs often buy a stock at a price that is much higher than it is worth.
More importantly, without a logical set of pre-defined sell rules, amateurs often find themselves holding on to losing stocks for a long time, causing them to incur dangerously high levels of risks.
To make matters worse, when they finally decide to sell the stock, they will usually incur a loss that is much larger than intended.
Here’s the deal:
Based on my 20 over years of investment experience, I came to realise that in order to invest profitably on a consistent basis, you must have a pre-determined set of buy and sell rules to guide your investment decisions.
For starters, here are a couple of criteria that I use to look for a fundamentally good stock to invest:
1) Consistently increasing sales and net income
2) Positive long term growth rate.
When we meet, I will share with you my “Value Momentum Investing” strategy that I have been using to generate profits year in year out.
“Getting an Average Return of 20-30% In The Last 3 Years and 60% This Year”
I have lots of praises with regards to the Wealth Academy course and I have been recommending it to people around me who want to know more about investments or wanted to find out more with what they can do with their spare cash other than putting into the bank with low interest rates.
I have learnt much more during the 4 day seminar than what I have studied throughout the 3 years of pursuing my Diploma in Accountancy and Finance.
Although I do not have a lot of money to invest right now, but I can say, even with a few thousand dollars of savings that I have, I’m still able to get an average return of about 20% to 30% for the past 3 years. This is definitely better than putting my money in the bank and earning an interest of less than 1% every year.
Untrained investors tend to fall for the idea that there is a way to predict the direction of the stock market.
Investment professionals know that nobody and no software can consistently predict the stock market direction. Here’s why.
In the short-term, stock prices are driven by demand and supply which is in turn driven by the emotions of millions of buyers and sellers in the stock market.
Think about it. If you can’t even predict the mood swings of your spouse tomorrow, how can you possibly predict the emotions of millions of buyers and sellers?
To make matters worse, if you read the predictions of ‘experts’ in the media, very often, different ‘experts’ tend to give contradictory predictions. For every ‘expert’ that says the stock market will go up, another expert will say the stock market will go down.
Fortunately, being a successful investor has very little to with making predictions. Instead, being successful in investing has more to do with mastering your psychology, choosing a reliable investment system and sticking with the rules of the system.
You may be familiar with one of the maxims of Value Investing – buy a stock only when the stock price is lower than what the stock is worth. In order words, buy a stock only when its stock price is cheap.
Though I am not against this approach and it may work if you are patient enough, I feel that are some drawbacks to this approach that will prevent your capital from growing as fast as you would like it to be.
Consider the following example:
The stock is worth $2.20. Suppose an investor decided to buy the stock at a price of $1.60 at point ‘A’ in the chart, thinking it was cheap. In my experience, a ‘cheap’ stock usually tends to get cheaper over time.
Indeed, in this example the stock price subsequently drops to $0.60 at point B. It was only after 2 long years before the stock price recovered to $1.60.
During this 2 long years, not only his money was stuck in this stock, he had to endure the anguish and pain of seeing his investment drop in value by close to 62.5% at one point in time.
Here’s my take:
This is an extremely inefficient way of using your investment capital because during this 2 years, you could have used this money to invest in other undervalued stocks that had a better chance of rising in value.
On the other hand, if the investor had avoided buying when the price of the stock was on a downtrend and bought only when the price of the stock had reversed into an uptrend, he could have made a handsome profit of 90% in a less than a year!
When you attend my Wealth Academy Lite Workshop, I will share with you how you can accurately determine when you should buy or sell a stock.
“Recouped All My Losses in 2011 & Made An Additional 34% on My Portfolio – 10 Times What I Paid For the Course”
Before attending your course, I invested based on my friend’s recommendation and my own random analysis. I made a slight loss after holding on to my investment for more than 2 years. In January, I read your book “Secrets of Millionaire Investors” and attended Wealth Academy in April 2012.
I just checked my year-to-date investment yesterday, and I have recouped all the loss in 2011 and made an additional 34% return on my entire portfolio (more than 10 times what I have paid for the course). I had also gotten out of the market in time before the sell-off in May as you cautioned.
You might have heard of the saying “the bulls walk up the ladder and the bears jump out of the window”.
Essentially this implies that stock prices tend to drop faster than it rises. What this means is that it is possible to generate profits much faster in a down-trending market than an up-trending market.
Let’s take a quick look at the chart below, which depicts the U.S stock market between 2002 and 2009.
What you will realise in this example is that the stock prices tend to fall more quickly than it rises. What’s more, the stock market was on a downtrend for more than a year.
If you had learnt how to ‘short’ the market, you could have potentially made a handsome profit in a relative short period of time when the market was crashing while other investors are sitting by the sideline, waiting impatiently for the market to recover.
Do Participate in my free Wealth Academy Lite Workshop, as I will share with you a simple strategy to profit even when the stock market is going down.
Due to limited space, what I have shared with you thus far, though important, is only the tip of the ice berg.
If you are committed to kick-start your journey as a savvy and profitably investor, I welcome you to attend my free 3-Hour, Wealth Academy Lite Workshop.
*Based on the past performance of the S&P 500 index.
“My Returns Are About 10-20%. With Such Great Achievements, Straits Times Has Also Interviewed Me So That I Could Inspire Other Young Adults To Start Investing As Well.”
I would like to thank you for your guidance thus far, be it in the field of education, investing, personal development or book writing. In particular, I would like to thank you for teaching me how to invest. With the skills that you have taught, I have recouped the losses I had prior to attending the Wealth Academy™.
“I Have Made 6.8% Returns On Investments Within 3 Months.”
I would have saved hundreds of thousands of hard earned money if I had attended Wealth Academy years ago. With the knowledge I have gained, I can now take on any desired stock or market with confidence and reduce the risk of losses to great extent.
“I Have Made A Net Profit Of About 35% In Less Than 3 Months.”
Your wealth academy™ program is amazing. I would have not achieve this if I didn’t take my first step to attend it. I didn’t make money immediately after I attend but I have saved myself from huge draw down by disposing many bad stocks in KLSE before it crashes.
“Increased Portfolio Value 30% In Just Over 4 Months And Double It Within 1 Year!”
Being a self-employed since graduated in export/import from Asia to Europe and now being the MD of my own real estate development in Thailand, the Wealth Academy program has given many answers in improving and confirming, completing my business actions and approaches in human relations and dealing with the daily challenges. Finally it gave me the opportunity to create another stream of income and made me a much better investor!
YOUR COURSE FEE IS WORTH EVERY PENNY!
“My Net Return From Past 7 Months Is 32.2%”
Despite 2015 being a volatile year where most major markets ended negative, I continue trading using the system. I let the setup take care of itself and stick to the rules. In 7 months, my net return from past 7 months is 32.2%.
“My Profit Last Month Paid Out The Course Fee Handsomely – 7 Times”
Re-applying the techniques and tips that I learnt from the Wealth Academy™ a month ago. My profit over last month has paid the course fee handsomely (7 times) I feel very fortunate to have attended the academy and learnt so much from it. It’s worth all the time and money I invested in.
My next Wealth Academy Intake will start soon and it is usually sold out. So seize the opportunity to learn useful and highly actionable investment tips at my free Wealth Academy Lite Workshop now.
I look forward to meet you in person!
To your financial success!
Asia’s Leading Wealth Coach
Professional Stock Investor
Master Trainer of Wealth Academy
DISCLAIMER • The information provided by Adam Khoo Learning Technologies Group Pte Ltd (AKLTG) and its associated trainers are meant for educational purposes, and at no instance to be regarded as investment advice. You are advised to practise due diligence before making any financial decisions. • AKLTG and its associated trainers are not liable for any losses incurred from your investment activities. • All forms of investments carry risks. Such activities may not be suitable for everyone. • Past investment performance is not necessarily indicative of future performance, even if the same strategies are adopted.
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