It is here.. Robots replacing humans for jobs.

Last weekend, I went to MacDonald's to buy an ice cream. Wow.. when I stepped in, instead of the usual cashiers and tables in the usual lay out, I saw this:

SELF SERVICE KIOSK.

Now, instead of queuing, all I had to do is to press a touchscreen, make some selections, pay on the spot, and Tada! I get a queue no. and I wait for my ice cream, all done in less than 10 minutes.

JOBS REPLACED BY SOFTWARE BOTS-BILL GATES

In 2014, Business Insider wrote an article where Bill Gates states that "People don't realize how many jobs will soon be replaced by Software Bots"

This what he said:

“Software substitution, whether it’s for drivers or waiters or nurses … it’s progressing. …  Technology over time will reduce demand for jobs, particularly at the lower end of skill set. …  20 years from now, labor demand for lots of skill sets will be substantially lower. I don’t think people have that in their mental model.”

 

I digress a little. I am hugely interested in what experts say about future developments, especially when people like Bill Gates had been very spot on on their predictions decades ago.

Bill gates, in 1999, predicted about Social Media/Home monitoring/Internet payments/ mobile devices/ price comparison sites ..etc.

It was scarily accurate.

Now, I have to sit up and seriously look into what he says lah!

Instead of jobs being replaced by foreign talents, I think the real danger is software bots -_-

WHAT DOES THIS IMPLY?

In 20  years time, these jobs will become irrelevant:

In 20 years time, I will be in my 40s-50s and my job falls nowhere near the 'safe zone' :(

In 20 years time, our children will be the ones facing the brunt and unless they have high skill sets, it's going to be difficult for them.

Lastly, CANNOT BEAT SOFTWARE BOTS? JOIN THEM.

Become a software developer.

Unfortunately, it is really 'easier said than done'. A coder needs to possess really innate logical thinking and clearly, not anyone can do it.

Why I will not top up my CPF SA voluntarily

Personal financial planning is a topic which I seldom talk about, but I do have my own plan and I would like to share it here.

About topping up my CPF SA account voluntarily.

The good:

4% interest.
I find that topping up the CPF SA account is very good viable option as it earns you a 4% interest and when compounded over the years, the amount of money can be substantial. The earlier you start, the better the effects of compounding is seen.

Tax benefits
Up to $14k. If you do that for 10 years, you would have saved $140k!!

BUT BUT BUT..This is not my plan.

My plan is this:

To invest in stocks/ liquid assets and get my 2nd property/3rd property in years to come.

If I were to put my money into SA account, the move is IRREVERSIBLE. So how can I get to buy my 2nd property ?

Investment in Real Estate
I want to invest in real estate, at least this is what I believe works in Singapore. Many people say that Singapore is heading a property crash, but the real estate, like stocks, goes through cycles too.
In Year 2003, some condos are for sale at $300k. Right now, in Year 2016, these condos have doubled or even tripled in value.

If you are investing for a long term 10-20 years horizon, houses, due to increase of prices in land/construction/manpower (inflation) , will likely appreciate decently too.

And yes, Do not think of buying properties in Malaysia/Cambodia/Vietnam, I am not referring to investment in these countries, not for properties please.

What i like about real estate is I can utilize leverage (mortgage) to get some passive rental income, enjoy some capital appreciation, and if all things goes badly, at least I can stay in it!

Lastly, plan early.

Do what you are comfortable with, but at least plan ahead and stick to it. The worse is not planning anything and making haphazard investment decisions!

Looking elegant with the least $$

First impressions matter.

I think that looking presentable and elegant, while emanating some sophistication for a modern woman is very important in the workplace.

The cosmetics industry is always so lucrative, thanks to woman who always want to look pretty.

Anyway, I am no exception.

Except that savings and value matter to me a lot and I spend only the very minimal on looking good.

This is where I...

1. Get my hair dye done:

I watch youtube videos on "how to dye your own hair" and buy Liese Hair dye to do it myself.  I can say that I am really impressed with my own work. Lol.

This Liese works wonders! It is easy and convenient.

Damage: $20.
Damage if I go to hair salon instead: $100
Savings: $80

2. Rebond my hair:
Aunty XiuZhen at Jurong West home salon.

This Aunty specializes ONLY on rebonding hair and she has been doing it for 10+ years. Her work is awesome and she uses Sheseido hair products ok.

Damage: $65
Damage if I go to hair salon instead: $150
Savings: $85

3. Makeup products
Silkygirl cosmetics

Don't need to spend on Chanel products which costs over $100+.  Simple low cost cosmetics like Silkygirl will do. I watch youtube videos on how to makeup and learn it. Really, the skill in making up is more important than buying expensive make up products!

Damage: $20+
Damage if I buy branded: $100+
Savings: $80+

4. Clothes/Household items

Taobao is a god send!! I save SO much money over the years buying from Taobao instead of brick and mortar shops. Clothes/baby clothes/household items/ winter clothes/ toys so many things!

And I do not use agents like 65Daigou. I learn how to ship direct from Taobao.  Just spend some time figuring out how to use China agents to ship over. It is much cheaper that way.

I am also vested in Alibaba shares as I can see its great potential in time to come ^^

Cost savings: 50%

Conclusion..

I often read AK's blog on the importance of saving and spending prudently. Really, it all adds up.
Spending prudently is also learning about 'delayed gratification' -the notion of enjoying your rewards later.

First impressions matter and really, it does not need a lot of money to do that.

IPO of Secura Group (Review)

Secura Group, the newest company to get its share listed at SGX yesterday, opened at $0.24 and closed at $0.225.

Some of  its core businesses now:
1. Security printing- printing of valuable items such as cheques and parking coupons.
2. Security guarding
3. Homeland security

Moving forward, Secura will be looking at several sources of growth:
1.Build market share in guarding business
2.Expanding homeland security
3.Expanding cyber security segments

Source: Secura Group’s IPO prospectus

Here's what I think about this company:

Profitable segments:

1. Security guarding:

Right now, I only know of CISCO providing trained security guards. It seems that there is growing demand in this area especially when there are so many new condos/commercial properties/industrial properties popping up in Singapore. Looking at the revenue growth of Secura, its security guarding business is doing very well and sees a jump of  68% from FY2013 to FY2014.

My 'concerned' segments:

1.Security printing services:
This was their core business when they started out in 1976. However, the printing industry in general seems to be declining in profitability. Much of printing has been replaced through the advance technology of computerization, internet and digitalization.

It is no wonder why companies like Interplex sees its Imaging and Printing product sector declining  by 24% against 1Q2015 due to changing consumer preference for digital media.

Even Fuji Xerox, the world's largest printer company, seeks to earn more by encouraging less printing.

2.Cyber Security solutions:

It is a big industry with a lot of business opportunities out there.

However, IT business in Singapore is VERY competitive. Just take a look at Street Directory. A search of 'IT Companies in Singapore' will give you 259 companies.

Majority of these companies are able to provide some form of cyber security solutions.
 
I have not even talk about the big boys like IBM/HP/Microsoft, which provides more comprehensive cyber security solutions to bigger companies.

I think that a good business is sustainable when entry of competitors to the same business is difficult/capital intensive, or you have a very distinct competitive advantage.

Therefore, I do not think that Secura can yield very good results in its Cyber Security segment, at least not in the next few years.

Conclusion:

At this moment, I will not invest in Secura as I am skeptical of its Security Printing and Cyber Security segments for future growth.

 

I will wait till it release its first financial result and study how well it manages its Security guarding business first.

 

RIP Taiwan's Evergreen Group Chang Yung Fa

Ok I am quite late to post this, but here's my tribute to Chang Yung Fa, a man whom I deeply respect and look up to.

Chang Yung Fa is Taiwan's Evergreen Group founder. The group consist of EVA Air, Evergreen line shipping, Evergreen International Hotels, Evergreen Steel Corp..etc.

He is a great inspiration.

1. Brilliance in business
He started out with only 1 ship in 1968 and was born in humble family. Now, it has about 178 container ships. The evergreen group has about 27,000 employees with more than 220 offices worldwide.

2. Advocator of character values
From Forbes
"Chang Yung-Fa’s mission is nothing less than to “reorganize” social values.
He started a cartoon illustrated magazine, Morals, that seek to uplift people's sense of morality in Taiwan and around the world. “If, for every 10,000 people, one is influenced in a positive way, that’s worth it,” he says"

3. Philanthropist
From Forbes
"Chang started the foundation in 1985; it has spent a cumulative $130 million over the years. Today its staff of 149 spends much of its time on typical charity work, such as awarding scholarships and delivering disaster aid; every year residents of some 9,000 homes hit by natural disasters in Asia receive help. "
Being a billionaire, he has pledged to give away all of his assets to charity.

Wow..

He's some advice from the Billionaire for takeaway:

 

The most important point to me, translated:

Chang yung Fa is a believer of karma. He says
"One should do good deeds and accumulate good merits when alive."
Totally agree. I always believe that if you can (actually I think if you reading this, most probably you can :p), do spare a penny to the needy. Maybe it can only help one person, but to that person, it means the world to them. Those living in poverty really have very tough and difficult life.. your good deed will make their life much brighter. :)  

I was right about Noble

In my previous post about Noble here , I wrote that Noble is performing badly with a bad ROE and a bad D/E ratio. When these 2 ratios are faring badly, the company is heading for disaster.

But that's not the worse. The worse is- the commodities market is NOT showing any signs of improvement at all. When the industry is not improving, how can Noble's financials start to improve? Not to forget, it needs to continue paying its debt.

Today, Noble shares were cut to junk by Moody's.

"The worsening year-long rout in commodities, which has punished prices of raw materials that Noble handles from oil to copper, has overshadowed cost-cutting plans and will likely hurt access to funding and challenge its profitability, it said."

Noble's share price has now dropped to 0.41.

Please do not think it is 'Cheap'.

Stocks look cheap because the prices have dropped since its high time.

HOWEVER, there are always reasons what caused the price to drop and majority of the time, these reasons are due to valid rational decision thinking by the elite traders and banks.

Only very occasionally, very miraculously, will share price experience a sudden irrational emotionally driven drop in price. That will mean the price is 'undervalued' beyond a reasonable doubt. And yes, it certainly won't last long for such price to continue.

Remember, investment is certainly not a gamble. Much research and hard work is needed.

If you cannot resist the temptation to make money quickly, you are bound to lose a lot in the stock market.

My Christmas Present from Interplex

Hello,

Here's wishing everyone a very Merry Christmas!

Baring fund has announced their plans to buy Interplex at around S$450m with each share price at around $0.82.

This price is definitely a premium over its average share price over the year. The premium is about 62%!

I bought Interplex at $0.68 and that means I will be making some profits for this takeover. Yay! Good news! :D

The year ended with some profits and some losses for my overall portfolio. Although I picked some good buys, I also made some costly mistakes ;(

Ah well, think long term ;)

Good luck, everyone. Hoping all of you have a blessed year ahead. :)