INVESTMENT MASTERMIND

WEE YANGTECK

YUKE

An Introduction

AGENDAWee Yang1. Lesson Plan2. Why Invest?3. What is Value-Investing?4. How to Invest?5. Common Jargon

Teck Yuke6. An Introduction to Finance

A SKETCH OF OUR LESSON PLAN

Main Training Crew

Wee Yang Herbin Teck Yuke Elson Ong

INTRODUCTION PHASE1. An Introduction

Lesson Plan Why Invest? Common Terminology

2. Investment Pitfalls3. “How to Save Money?”

LEARNING PHASE1. Introduction to the 3R2. The Right Business Model3. The Right Management4. The Right Valuation vs. Price

THE APPLICATION PHASE1. Group Research Projects in

Singapore Stock Market by Industry2. Group Research Projects in the US

Stock Market by Industry

Qn: “How much savings do you think you need at Age 65 to retire happily?”

WHY INVEST?

Twin Engines to Financial Freedom

What is Value-Investing?

To identify the difference in the intrinsic value of a stock and the current stock price.

If the difference is positive, and the company has good prospects, invest.

If the company has bad prospects or a bad management, avoid at all costs.

Value-Investing

vs.

Trading

“The stock market is filled with individuals who know the price of everything, but the value of nothing.”

- Philip Fisher

3R Right Business ModelRight ManagementRight Valuation vs. Price

How do you invest?

Singapore Exchange trades continuously from 9 am to 5 pm, weekdays.

Central Depository (CDP) account is needed before trading

Bid or ask through a broker, either via online platform or a phone call

Common Jargon

STI – Straits Times Index A weighted index of top 30 companies

listed on the Singapore stock exchange Listed Stock

Shares of an issuer that are traded on a stock exchange. Issuers pay fees to the exchange to be listed and must abide by the rules and regulations set out by the exchange to maintain listing privileges.

Common Jargon

Blue Chip Companies Stocks of leading and nationally known

companies that offer a record of continuous dividend payments and other strong investment qualities.

S Chip Companies Chinese companies listed on the stock

exchange Note: You should never touch these

INTRODUCTION TO FINANCEBy: Teck Yuke

Investment is NOT Business!

Financial Institutions

Banks / Insurance Retail Banking Investment Banking

M&A ECM DCM

Insurance

Investment Services Asset Management

Firm Hedge Funds PE/VC/Alternatives Pension Funds

People in Finance

Investment Banker Wealth Manager Portfolio Manager Hedge Fund Manager

Asset Classes

Equities (Stocks) Fixed Income (Bonds) Cash / Money Market Tangible Assets (Real Estate /

Commodities)

Equities

Think…companies stakeholding Shares/Stocks

Size Region Sector

Fixed Income

Periodic Returns Think… debt. Bonds

Government / Sovereign Corporate Mortgage Asset-Backed Securities (Auto /

Student / Credit Card)

Cash / Money Market

Money…duh?!

Cost of money Interbank Lending Rate (Short term

Interest rate) Currency?

Tangible Assets

Physical things you can own

Commodities Precious/Base Metals Sugar / Grain / Wheat Orange Juice

Real Estate

ANY QUESTIONS?