Thursday, December 7, 2017

An Interview with "Heartland Boy"

This year's last interview for the Interview Series will be with Heartland Boy.

His blog mainly talks about personal finance matters. But once in a while, he will write about his stock investments and his thoughts about them.

I went for his seminar previously and wrote a review on it. Till now, I am still very captivated about including TA techniques within Fundamental Analysis. Nowadays, other than using Fundamental Scorecard Website, I will also use InvestingNote Chart to assess the TA of each counter (Previously I did not even bother much about the 50 days MA or 150 days MA). I am even considering incorporating TA techniques into the Ultimate Scorecard currently (But that is another story...).

Without further ado, let's get straight to the interview questions and his answers!

1. Tell us more about yourself. How did you get into investing?

Heartland Boy: I am a young working adult who took up the challenge of working in Indonesia last year. My stint in Indonesia has allowed me to gain a better understanding of the challenges of working in developing countries. Despite being away from Singapore most of the time, I am a henpecked husband who flies back regularly to Singapore over the weekends. That is now all in the past (not the henpecked part) as I recently repatriated back to Singapore in October 2017.

My wife, who was my girlfriend then, was appalled that my net worth was zero when we got together in university. I was living the YOLO lifestyle and exhausted all my savings on holidays and branded accessories. I wanted to prove in earnest that I can build a secure financial foundation for the family. Besides learning to be thrifty, I wanted to invest to grow a passive income stream. It was a dual pronged approach to grow my net worth.

2. What is your investing style? Any idols?

Heartland Boy: After reading the book titled “Secrets Of A Self-Made Millionaire” by Adam Khoo, I became a self-taught investor armed with the necessary tools and confidence to kick-start my investment journey. I find that his value momentum strategy has worked quite well for me.
Given that I modelled my investment strategy after him, I would think that it is natural to look up Adam Khoo as a role model/investment idol.

3. What is your thought process when it comes to investing?

Heartland Boy: I am guided by the 8 criteria set out in Value Momentum. This forms my checklist and I take down notes on whether the particular company satisfy these criteria. It is a very methodological process that removes emotions from the process.

4. What is your best investment and worst investment since you started investing?

Heartland Boy: My worst investment is in Kingsmen Creatives. I bought it at 97 cents in February 2015 and sold it at 70 cents in April 2016. This is ironic because Kingsmen Creatives was once a darling for the investment community. The most important lesson that I learnt was that growth stocks can fall very quickly in prices when their growth rates do not meet market’s expectations.
My best investment is in Micro-Mechanics. I first bought it at 69 cents in April 2015 and have progressively added it to my portfolio. I recently sold it at $2.00 in November 2017.

5. How many stocks do you think one should hold for diversification?

Heartland Boy: If one is looking for diversification, the portfolio should consist of a balance of assets such as cash, gold, equities, bonds etc.

As an active investor, I never hold more than 10 stocks as I find that it requires too much effort to be able to track their performances regularly.

6. Any thoughts about the current market situation?

Heartland Boy: It is time to proceed with caution.

7. Able to reveal which stocks are currently on your watchlist?

Heartland Boy: My watchlist remains pretty much the same. They can be found in this article which was written in July 2017. Geo Energy and Straco have since been upgraded from my watchlist into my current portfolio.

8. Finally, any advice for newbie interested to get into investing?

Heartland Boy: Any newbie should base their investment philosophies on proven strategies. Besides starting with a proven strategy, it is equally important to be disciplined to implement the strategy throughout the investment horizon.

Young aspiring investors may not have sufficient time and wisdom to experience the ebbs and flows of market cycles. Therefore, they should build resilience from the mistakes made so as to ensure that the tuition fees paid do not go to waste. Likewise, it is important to stay humble even if you are very successful in the beginning of your investment journey.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of the SGX counters now!

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