My watch stories

Recently i was talking to my brother in law about watches and it made me think about the watches i have and more importantly the stories behind each watch.

Tag Monza - the watch that started it all

When i was 15 (or 17), at one of dad's dinners, there was this sharply dressed young guy that came and he had presence. I saw his watch and it was a tag (those days i did not know what tag was). He told me he was 28 and he looked successful. I told myself on that night that i would buy a Tag before i was 30. At 27, i had my first successful year at work and i realised i had found my career path as a fixed income trader. I bought this watch then and it will always be special for me.

Rolex Oysterdate Perpetual -

This one is heritage. My grandmother bot this watch for my grandfather for MYR162 or 167 in 1962 or 1967 (i get mixed up on the 62 and 67). My dad told me about this watch that was just sitting at home as it was not working. I saw the watch and knew that it had to be fixed. I asked my dad for that watch and i spent the 2k to fix it. Recently i was in Korea and walked into a vintage watch shop and found the listed price at USD3500. If you price that, that is a 40 yr investment with a 9% return. Truly amazing.

Maurice Lacroix 3 time zone GMT with alarm -

I remember going for a cortina sale and I saw a Baume & Mercier watch that had 3 time zones and an alarm. It had a grey face and was classic. It was 6k (from retail price 10k). I remember the guy telling me that it had a GP movement and that GP had stopped supplying the movement a few years back. I knew the watch had collectibility but i just could not pay the 6k. I wish i did coz that watch spoke to me. So awhile later, walking in BSC, i do my normal run thru at the watch shop there and that guy Leong shows me a Maurice Lacroix watch with a white face and its the exact face - 3 time zone GMT with alarm, except thats a white face. It was 10k. Every month for a year i went there and saw that watch. The next year i bought that watch. I wished there was a reason for the purchase but there was none. I just saved to get it as it spoke to me as well. Most of the websites list the sale price at USd4500, thats more than 40% what i paid.

Sinn U1 -

I bot this when we covered Ilyana's uni fees. I was targetting MYR450k (currently have upped this to SGD300k now) at that time for 3yrs uni fees in UK and with EPF and all, we succeeded. I was proud and needed to mark that success and i bot the Sinn. The best watch i have for the money i paid. This was the start of buying watches to mark points of financial success. I have seen listed prices from GBP1000 to USD1600. About 25% higher than what i paid.

Vulcain Diver Cricket Alarm -

This is my worst buy to date. I liked how the watch looked and the cricket alarm was interesting but now the face has a scratch and i hardly wear the watch and the time keeping was poor. I got this watch in Singapore when we knew that we had a buffer account up to 6mths our expenses in Singapore. In 2008, i moved this target to 1yr and in 2009 to 2yrs (am still working on that target).

Tag Monaco Gulf Ltd edition -

This is my favourite watch now for two reasons 1) i did not buy it (Yaso got it) and 2) it marks 15yrs of us being together and 10yrs of being married. Its a great watch and its fun to look at.

The new one -

i have narrowed down that the next watch i get is a Rolex DeepSea Dweller. I like the look and its slighlty more unique than a submariner. This one i am going to get only when we have covered Sahana's uni fees of at least SGD300k. We have been working hard for this and if you see me with this watch then you will know the reason.

The song i wish i could sing

Somebody by DM

I want somebody to share
Share the rest of my life
Share my innermost thoughts
Know my intimate details
Someone who'll stand by my side
And give me support
And in return
She'll get my support
She will listen to me
When I want to speak
About the world we live in
And life in general
Though my views may be wrong
They may even be perverted
She'll hear me out
And won't easily be converted
To my way of thinking
In fact she'll often disagree
But at the end of it all
She will understand me
Aaaahhhhh....

I want somebody who cares
For me passionately
With every thought
With every breath
Someone who'll help me see things
In a different light
All the things I detest
I will almost like
I don't want to be tied
To anyone's strings
I'm carefully trying to steer clear of
Those things
But when I'm asleep
I want somebody
Who will put their arms around me
And kiss me tenderly
Though things like this
Make me sick
In a case like this
I'll get away with it
And in a place like this
I'll get away with it
Aaaahhhhh....

Financial freedom is Essential

From June 2007 i have been on the financial roller coaster. We moved to Singapore and that first year, juggling two households in Malaysia and Singapore took the toll on our finances. Then as we adjusted, we grew in comfort and i was doing well in my bank. Then my bank gets bought over in the largest merger deal in the world.

We were given assurances that all was well within the combined entities and then by June 2008, things started to get shaky with the trigger being the subprime mortgage market in the US. That was the start of this blog and my first entries spoke about this trigger.

Later that year we had Lehman go bankrupt and the world got real scary. Soon after my bank received govt aid and again we were given assurances that all will be well. My wife and i quickly applied for our PRs fearing that if i lost my job, we would have to pull the kids out of school. For those of you who know me, you will know that i plan for the big picture. And i reward myself everytime my wife and i achieve a major milestone - like having Ilyana's university fees covered or the kids school fees or having buffers in place.

That September 2008, i realised that all my planning did not take one big factor into account - a depression like scenario where unemployment could hit more than 20%. Now people all say that would never have happened but i saw it. I saw trade just shut down between countries and banks freeze all lending and the worst we saw was in Sep 08 to Mar 09. If the govts of the world did not step up and open their gates to stimulus and bail outs, we would have definitely seen a global depression.

I believe that a depression at this time will not happen but a slowing global economy and a shrinking banking system might.

With all this i reassesed our finances and i realised that for me having 6mths buffer was not enough as if i lost my job, there would be no guarantee of a replacement job. So from Sep 08, my wife and i have been on a mission to make sure we dont feel as insecure as we did then.

So all this makes me think about how valuable financial planning is. Let me make it clear, my goal one day is to start a firm back in Malaysia and the goal of that firm is to teach financial freedom. I dont believe in delayed gratification ie i dont believe in working 30yrs to enjoy the remaining 30. Financial freedom to me is the ability to know that my future is being addressed while i enjoy the present. Planning for the future, enjoying the now.

The trick to this is to define your major goals. For me my goals are 1) to have Uni fees covered for both my daughters when they turn 18, 2) to have their school fees covered, 3) to have a 2yr buffer account, 4) to have enough insurance to ensure that my family is taken care off and 5) retirement capital. Thats it just five goals.

I track how i am doing on each of this 5 goals every day. Now as long as i see progression in this 5 goals, i know that its ok to spend money and enjoy life as well. Coz i know the big picture is being taken care of.

Everytime i achive a goal, i buy myself a new watch to remind me of what my wife and i have accomplished.

I may write more on this topic as we go on as i truly believe that Financial Planning is essential to feel secure and happy. Its what i strive for and i wish you the best if you are on similiar journeys as me.

d.

1h 15m 12s

DEV KUMAR M 1052 Elite Men Msi 10 K 1:15:12

http://www.borneomarathon.com/home/pix/Elite_Men_10K_result.pdf

1 hour 15 minutes and 12 seconds.

Thats the time i took to complete my 10km run in KK. I was hoping to do it under 1h 10m but am very happy for my first time. Initially if you have read my earlier posts on how i started on this journey you will know that the goal is a half marathon 21km by Dec 2009. I have to be honest, my body was really tired after the 10km and at this stage i am hesitant to try a 21km.

Since the run almost two weeks ago, i have been on holiday and have not been training. I even put on 1.5kg with the euphoria of completing the run. It was an achievement for me especially in late february when i started, i could barely complete 1km.

Will be starting work and also training again on monday. I would like to say i am ready for the 21km which is still a goal but time to first show that i can train regularly to hit 10km.

One thing is for sure i will definitely be running again.

Asset Prices vs Real Prices - A personal view

For a long while i have refrained from writing my views about the economy and market conditions. Firstly, work picked up or more importantly i picked up. I focused on what was within my control and i was striving as many were slowing. It felt good. Secondly, it was so much more fun and meaningful to write about things that was important to me.

Let me stress, Work is not Life and its good to understand that. I am still driven and still feel a need to accomplish and influence at my chosen field but i understand that my main accomplishment is my family.

So why now do i feel the need to write again on market conditions?

In one word - Caution. And as i have been asked " Is this rally real?"

I have found the hope that people are feeling is reassuring and right. BUT, it is wrong to believe that all is well. Market conditions are far from well and we need to clearly define a line between asset prices and real prices. I am no economist and its not my goal to be perfectly accurate but to understand this difference in how it relates to me and to you.

Asset prices = the prices of the stocks (equity) we own, the property that we own, the cash that we have in FD (cash). For simplicity lets say Asset Prices (AP) = Equity (E) + Property (P) +
Cash (C). In short , we could relate asset prices to our Wealth. If the E we own appreciates, we are wealthier and that applies to P as well. And if we are accumulating C at a faster rate than we spend, we are also getting wealthier. So lets say AP = Wealth and is the right hand column in a table and needs a left hand column to balance it.

I view the left column as Real Prices = the prices (earnings) we charge for our goods and services net of the prices (cost) we pay for goods and services. IN simple terms Real Prices (RP) = Salary (S) - Cost (C).

So the conditions we have is 1) RP growing and AP growing, 2) RP growing and AP shrinking, 3) RP shrinking and AP growing and 4) RP shrinking and AP shrinking. The key is to understand where we are in this four conditions.

Personally, the condition i would like to be in is 2. When i know that my RP is growing and AP is shrinking, this to me is the perfect time to invest and maybe finally buy our place in Singapore. For now though, i am certain AP is growing but am uncertain about my RP. In short, i have no confidence that my S will grow faster than my C. Cost of food is rising as well as energy prices which will increase my C but will my salary (S) grow as fast. This is i am not certain.

Please forgive the maths as i do see myself as a math geek but the point i am making is that asset prices cannot grow without real prices growing. This to me is my main reason i am still negative and continue to maintain a huge 2 year buffer in cash as i feel that in general markets and individuals are in stage 3, where RP is shrinking but AP is growing. This to me is not sustainable.

So how do you know which stage you are in coz it is wrong to assume that everyone is in the same stage. So here are the questions you should be asking?

1) if you in shipping, have you seen shipping rates rise
2) if you are a lawyer, have you seen your billings rise
3) if you are in business, are you seeing your business grow
4) if you renting, is your rent increasing
5) is your grocery bills rising

Basically, look to your personal lives and make an assessment whether 1) your salary/earning are increasing and if so 2) is it rising faster than your cost of living and 3) are you seeing your business improve.

If the 3 assessments above give you the impression than your RP is rising, then you are a lucky person indeed. AND if AP is low or falling, you have the perfect opportunity to invest. IF AP is rising and you are invested or own a property, you get to ride it with no worries. You should sell only when you feel your RP is turning down.

If you are like me and the assessment makes you feel that RP is falling or you are uncertain, then caution is probably advised. I am not advocating you sell your investments especially property BUT i do advocate having caution and having buffers in place to protect you from unnecessary losses and grief. My family now has 2yrs buffer in place. Some view this as overly cautious but i have seen what its like to fear losing your job and doubting your ability to maintain your quality of life. To me 2yrs buffer lets me sleep comfortably knowing that we can withstand most knocks.

The above is not negative. I apologise if it comes off as such. I am actually very hopeful and i now have a clear plan of action to manage come what may. The buffers protect me from risk to the downside. Prices rising now (especially as i would like to buy a place in singapore) when i feel RP is uncertain or falling, makes me cautious and uncertain to buy. BUT, i am waiting and am truly hopeful that we will see RP rise and when it does i will be BUYING.

d.

a Good Life

Recently, i was asked a very surprising and humbling question "Would i be godfather to their child that they are expecting in September?". The couple that asked this question are friends that we met over the last year as our daughter's were classmates. Their request honoured me but i felt a need to express clearly my belief systems growing up as a Catholic with Hindu influences as well. Their answer to me was that for them, they wanted a guide for their child, someone the child could turn to when he or she could not turn to them. They felt i would be a great guide. I know no bigger compliment and i was truly happy to say yes.

The answer they gave me made me look back at the guides in my life and specific moments that have shaped me. One such moment was a question i was asked 17 years ago......

My father once asked me "How do you define a good life?".

I think i was 17 years old and i was driving as we headed to temple. My dad was a secure and comfortable Hindu who married a strong faithful and loving Catholic. He once told me that he married my mum because he knew she would be a great mother. He knew he wanted a big family being an only child and in the end he had four kids. He was not a religious man but he had a strong faith system. He knew that my mum would want us to be raised Catholic and he had two conditions - 1) we had to be 15 before we were baptised and we would be given a choice and 2) one of us four would rotate and follow him to temple every fortnight sunday.

We grew up with every sunday being Church day. We would get dressed and head to morning mass followed by Sunday school. We would finish just before lunch and mum would take us for branch. In all honesty, i loved those mornings. I am not especially religious but i found deep comfort in those mornings and the stories at sunday school and learning the Our Father. I think that is the first group of words that i memorised. I did not understand all of it but it calmed me. It still does.

Every 2 weeks, would be Holy Sunday. Mornings was church but on those special sundays, one of us would follow my dad to temple. Those temple journey's was where my father and i talked. As he drove, he would ask me questions and give me his thoughts. At the temple, i would light all the lamps and he would bring his hands together three times above the flame and each time raise his hands to his head. Then i would follow him always second no matter who was with us. I was comfortable with both religions but i chose to be baptised at 15. Though even at 15, i questioned the Church and its history, i found the christian concepts of universal acceptance and forgiveness appealing. At the same time, i found the Hindu concept of Karma elegant and true.

One day as i was driving (i had my license), he asked me the question above "How do you define a good life?". I cannot remember my answer and at 17 i was too impatient to hear his clearly. But i remember the question and now as i turn 35, the question motivates me. I cannot remember clearly his answer but i remember the sense of the answer - that life was about balance, commitment and growing.

But now when i think of my father's life and also my father in law i have a better understanding of that question and the answer. Both were imperfect men with imperfect lives but they LIVED. They lived by a code that was individually their own. They believed in family. They never made excuses and they lived their life the best way they knew. When they passed, they were surrounded by family, friends, staff and colleagues that shared genuine loss and respect at their passing.

Both had lived a Good Life.

As i contemplate my role as a father and godfather, i only hope that at the end of the day - i can say i HAD a Good Life.

d.

The Chinese are Coming

I recently made a business trip to China. Shanghai and Beijing to be precise. This was my first trip to China and it was staggering.

It was a business trip and my first two nights i stayed at the Grand Hyatt which is in Jin Mao Tower. Jin Mao is a beautiful tall gothic looking building which just screams Gotham City but a bright lit Gotham City. Jin Mao was the tallest building in the world but then they built the World Financial Center which is to the right of Jin Mao. The WFC is an ugly straight lego like building with a handle type structure on the top and it surpasses Jin Mao by a couple of feet. Now they are building another building to the right of Jin Mao which will be even taller than both these buildings. Effectively the three tallest buildings in the world will sit in a one km radius in Shanghai. This is not what AWED me.

What scared me and inspired me was the people - in the hotel i found staff that were both efficient, friendly with strong command of english. The hotel staff were extremely driven and efficient. My first thoughts were, how i wish these people were working in our service sectors in Malaysia, Singapore.

The next day i met my office people at the Shanghai office and one young management trainee that i met really impressed me. His name is David. David is well dressed and although he only studied english from the age of 14, his english is flawless. His parents saved 40% of their income to ensure he had the best education possible. He graduated from a top local university and immediately did a masters in operational research (a math geek like me) in London. When he came back to Shanghai, he saw an add for the management trainee position and applied. His application was one out of 20,000. And we hired only 5. Do the maths - thats 0.025% of the number of applicants. And what did we pay? The grand amount of SGD1k a month.

Now thats possibly half what a basic grad will get in singapore and comparable to Malaysia and many other places.

The same day, i met up with the teams from the back office, credit admin and finance departments. I went into a meeting and in 30m, we had accomplished everything. The staff were prepared and precise in their questions and feedback. They did not waste any time and were very well informed in their respective areas. All spoke fantastic english.

The quality that i saw in David and these others, that was staggering. Then i found out there are 1 MILLION graduates who are looking for jobs. NOW, that is scary.

My first question, i asked myself was there enough jobs now for these well educated, cheap and extremely driven graduates. And for now the answer is NO. China is spending huge amounts to continue the building bonanza to keep workers happy but at for services, its still not possible to generate enough jobs for graduates. So then i asked myself - WHat is China going to do to prevent these graduates from losing hope and turning discontent.

The answer is obvious - they are gonna start allowing a bigger amount of Chinese to work outside of China. First step, they will push English in schools (being done), they will sponsor more students to finish masters programs in UK, US and Australia. Then, they are gonna unleash this herd to the world.

So my advice to all - be prepared to fight for your jobs and value add to your jobs coz the Chinese are coming and they are cheap but so very IMPRESSIVE.