Value Scouting To Financial Freedom

07 October 2011
Value Scouting To Financial Freedom
By Shares Investment

Volatility characterises the global financial markets these days. Erratic swings are becoming norms and appalling for most. Risks abound, so are opportunities. In our newly introduced “Coffee Break Q&A”, we are pleased to have Cayden Chang Kheng Mong, the Director and Founder of Mind Kinesis Management International LLP (MK), sharing his perspective on current market situation and giving a glimpse into the copyrighted Value Investing Programme (V.I.P.) that has accompanied his walk to financial freedom. Below is the extract of our Q&A with Cayden who also co-authored “Do You Have What It Takes To Be BOSS?”.

SI: What is your view on the current market and what should investors do? How do you view the market going forward?
MK: I am predominantly negative about the current market but it is a great opportunity for value investors who want to buy good companies at discounted price provided they know what to buy and when to buy. Share price fluctuates like the weather, but the short-term fluctuation has nothing to do with the performance of the company, so why should we be predicting where’s the market going? Stay away from prediction, focus on fundamentals.

SI: Value Investing Programme (V.I.P.) is one of the programmes offered by Mind Kinesis. What exactly is it all about? Who is it for? How does it work?
MK: Value Investing Programme (V.I.P.) is a training programme that guides anyone, with absolutely no prior investing experience needed, to invest in undervalued companies with good underlying fundamentals.

Our Value Investing Programme is the first in Singapore to be recommended by Mary Buffett, the internationally acclaimed speaker and best-selling author of “Buffettology” (USA Today, Business Week and New York Times), “The Tao of Warren Buffett” (Business Week and The Wall Street Journal), “Warren Buffett’s Management Secrets” and “Warren Buffett and the Interpretation of Financial Statements”.

In a nutshell, V.I.P. provides a set of proven methodologies that are modeled after those used by the world’s richest stock investor, Warren Buffett, to help investors to know where to find good businesses; when to buy the good businesses by identifying the company’s intrinsic value or target price; and when to sell the good businesses. Ultimately, it is to help in the generation of passive income namely capital appreciation and dividends.

Our approach to value investing has an additional icing on the cake. We leverage on the power of Options which we believe enhances the return-on-investment (ROI).

The traditional buying and selling of options to gain returns are pure speculative. Under the V.I.P., we only sell Options with no intention of buying back. Such selling greatly reduces risks as we are not holding on to any options. The selling of these Options, meanwhile, generates a regular and passive income. Specifically, this comes under our Value Investing Options Strategy™ (VIOs™) which only requires an average of 15 minutes a month, and it does not require monitoring of charts nor using any software. To reinforce learning experience, we hold free monthly gatherings for our graduates where we generate cash “Live” during the US market trading hours. To know more, you could visit www.investment-in-stocks.com and www.facebook.com/valueinvestingacademy for regular Free Investment Workshops.

SI: What is the historical track record and key performance indicators (KPIs) used in assessing the effectiveness of V.I.P.?
MK: For value investing, we have a good track record of about ten years with a team of very qualified Master Trainers. Our team now consists of three investors, including myself, who became financially free via value investing. They are Sean Seah (Creator & Master Trainer of Value Investing Options Strategy) and Liu Feng (Master Trainer of Value Investing). Both have a track record of making an average annualised return of more than 25% investing in stocks in the US and Singapore. We benchmark the effectiveness of V.I.P. using two KPIs namely ROI of 20% or more for every of our graduates as well as the use of not more than an average of 15 minutes per month.

SI: You mentioned about being “financially free”, what does it mean? And how could investors benefit from the V.I.P. amid current market volatility?
MK: A person is financially free when his/her passive income exceeds his/her total expenses. Even for value investors, we love volatility. The greater the volatilities, the better so that we could pick up good companies at undervalued prices. For example, on 8 August 2011, most of the share prices dropped because of the Standard & Poor’s downgrade of the long-term sovereign credit rating on the US to ‘AA+’ from ‘AAA’. This creates buying opportunity. If we buy at a discount of let’s say 20% from our target price, it means that we are increasing our profit margin by 20%. Options premium also increases with volatility which translates into a higher profit when selling Options. I love one of Warren Buffett’s saying – “Mr Market is there to serve you and not to instruct you”.

SI: With so much packed into the V.I.P., what is the cost and duration like? Would there be any recourse if the V.I.P. proved to be of limited or no applicable use to investors who have gone for the program?
MK: What is the cost? We will not tell you until we have shared with you how valuable our training can be. It’s like the stock market – never look at the stock price until you know how much the company is worth. The duration is 4 full days with a life-time of revision and a life-time of monthly ‘Live’ investment sessions and gatherings. We also have an online support group, where we answer any queries that our graduates might have. As for the recourse, it has never happened in the past, and we will ensure that it will never happen in the future because it is our duties to ensure that all of our trainees go through a vigorous process of training and mentoring. On this note, if the trainee wishes to revise what they have learnt previously, we are more than happy that he/she comes back for the training.

SI: Last but not least, what is the developmental roadmap for V.I.P.?
MK: Our goal remains to help every of our graduates becoming financially free by using only 15 minutes a month, and we are always looking to improvising our programmes. Currently, we are registering the trademarks of our proprietary Value Investing Funnel (VIA Funnel)™ as well as Value Investing Options Strategy (VIOs)™. To top it off, we will be hosting a mega event next year. Do keep a look out at www.facebook.com/valueinvestingacademy.

Source/转贴/Extract/Excerpts: www.sharesinv.com
Publish date:07/10/11