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Remisier sticks to stocks for the long run
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lg_6273
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25-Feb-2007 16:03
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Remisier sticks to stocks for the long run He has low debt, no outstanding mortgage and pays credit card bills in full every month By Leong Chan Teik Feb 25, 2007 The Straits Times THE loss of his first child, a two-month-old daughter who died after stomach surgery 20 years ago, led Mr Albert Fong to rethink some of his life priorities. 'I had to work till as late as 11pm every day, and saw very little of my daughter,' he remembers over lunch in the city. At the same time, he wanted a different career challenge. So, at the age of 34, he quit his engineer job, which he had held for 12 years. He jumped into one he knew little about - being a remisier. But making a living was not easy, initially. Mr Fong depended on the contractors, whom he used to work with, as his clients. Over the next 18 years, he has done better as a remisier at OCBC Securities, and is now concurrently serving his third year as president of the Society of Remisiers (Singapore). The current boom in the stock market, which translates into handsome broking commissions, is giving him reason to smile, too. And of course the job has meant he has had more time to spend with his wife and two daughters Charmaine, 18, and Cherry, 14. 'Weekend evenings are reserved for my family. We usually eat out at one of the country clubs or restaurants,' he says. Q What are some highlights from your investing experience? A Many years before the Asian financial crisis in 1997, I used my Central Provident Fund savings to buy shares of United Engineers and Straits Trading - old-economy companies. They have gone up and down, and have undergone corporate transformation, and paid good dividends. Their stocks are now way above my purchase prices. That's the thing about investing: buy something you can hold and not worry about, something whose business is sustainable. Q Is it that easy? A Investing is hard work. You have to do some research yourself. I don't trade - that is, buy and sell in a short period. I invest for the long term, because I'm too busy at work servicing clients. Q What has been another great buy for you? A It's the StreetTracks Straits Times Index fund. It tracks the index. I recommended it to clients when the index was at 1,250. I bought in too. Now the index's at more than 3,200. I have sold some of my holding but am trying to buy it back at a lower price. Q Do you invest in other assets? A I'm a simple guy. I stay liquid, and I have low debt. I pay all my credit card bills in full every month. I don't have a mortgage - it was cleared years ago. When you don't have debt, you have financial freedom. I've seen many people invest in properties and get stuck when prices fell. There are sad stories of families breaking down as a result. Q Do you upgrade your car regularly? A There was a car salesman who would always urge me: 'You have very low gearing. Upgrade your car!' I had a four-year-old continental car. I did upgrade to a continental car of the same brand costing almost $250,000. One day, after six years, the car suddenly broke down in front of my golf club. From that day, I told myself I'd never buy this brand again. I now drive a Toyota Camry. I've had it for the past six years. I have a small car loan - you are given an incentive to take a loan when you buy a car these days. Q How do you give back to the community? A Mainly, I donate blood. I have done it about 60 times, starting from my national service days. I have qualified as a 'champion donor'. My last donation was a few months ago. This is one way you feel good about giving. Perhaps you can save a life. I also give money to temples and to churches, which my wife and I visit from time to time. It's natural for people to seek a quiet place to meditate. Q Have you been through any money setback? A From time to time, we have clients who get into trouble. They may go bankrupt - they over-trade their accounts with other brokers and their stocks go down. They can't pay up and it eventually affects their account with you. You have to pay up for them. It's part and parcel of this business. Q What's your financial goal? A Retirement is not in my dictionary. I enjoy my work, and I'm a workaholic. Watch movies? I'd fall asleep. Q If movies are not for you, what do you do in your spare time? A I'm quite fanatical about fitness. When I was young, I completed five Singapore Marathons, taking around five hours each time. And I used to represent Singapore in dragon-boat races. We won the Nagasaki Dragon Boat Race in 1985, the first overseas win by Singapore in this sport. Now I play golf every weekend. I love to run at MacRitchie Reservoir or run in the gym twice or thrice a week. I run about 5km each time. As you know, health is wealth. |
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