AK shares 5 reasons to buy a diesel car.

By now, many readers have found out that AK bought an "inexpensive expensive" car.  Why the peculiar phrase?

Well, the car might be from an "atas" brand but it is rather inexpensive to run and it is also less costly to the environment. Yup, the car runs on diesel.


I love my new car and if you are wondering what is so good about a car that runs on diesel, here are 5 reasons to consider one:

1. Diesel cars are less expensive to buy than their equivalent petrol versions with the CEVS. What is CEVS? Carbon Emission-Based Vehicle Scheme. Cars that produce less CO2 will enjoy subsidies and it could be a big $XX,XXX deal!

2. Amazing fuel economy! I could get as much as 20km per litre with relatively smooth traffic on the expressways. What about driving about town? If not caught in a traffic jam, I could get as much as 15km per litre.

3. Diesel is much cheaper to buy compared to petrol. When the time comes to refuel, remember that 95 Octane petrol costs about 80% more than diesel here in Singapore! After all the discounts at the pump, I pay about 82 cents a litre for diesel only. Yes, I know, only.

4. Diesel cars are cleaner these days. Hey, Euro 5 standard, ok? Don't refuel with cheaper diesel from across the Causeway. Those have higher sulphur content. They are still stuck at a lower standard. Later, your diesel car "poon orh yen" (i.e. spew black smoke) like those J.B. trucks, don't say diesel cars no good hor.

5. More torque! I really love this! You must experience this for yourself. My car flies and I thought my old car was good! I am still learning to be very gentle on the accelerator.

Although I have already granted ROFR (i.e. right of first refusal) for this car to a friend who bought my last car, I might just drive this one for the full 10 years. 

I am in love.

Related posts:
1. My new car's fuel consumption.
2. My passive income all gone...
In the comments section, a reader shared with me that diesel cars give off other types of pollutants. Cham. How like that?
http://www.theguardian.com/environment/2016/feb/05/the-truth-about-londons-air-pollution

NeraTel is an investment for income no more?

I have been a NeraTel shareholder for many years. In the middle of 2013, I significantly increased my investment in the company. At that time, I had this to say:

This is a net cash company and has a record of paying consistent and meaningful dividends. Its last payout was 4c a share with an EPS of 5c. At today's closing price of 61c, we are looking at a dividend yield of 6.56% which is very decent. With its recurring revenue streams, dividends are probably sustainable.

I started accumulating at 40.5c a share and the bulk of my investment are at 60c to 63c a share. Yielding about 5% annually, over the years, my investment in NeraTel paid me thousands of dollars in dividends. As an investment for income, it was pretty good.

Its share price went up and its share price went down. I did a few trades but I mostly held on tight to my investment for income. Movement in the share price didn't bother me.

Recently, I received many messages from readers, most of them asking me if they should sell their investment in NeraTel and some did as its share price rose from a low. I said I might consider partially divesting if its share price were to go higher, all else remaining equal.

Well, the share price did move higher and a good reason to reduce exposure to the stock surfaced:


Ingenico’s offer of S$88 million represents 35% of Nera’s market capitalization of S$251.5 million as at close of trading on 19 May 2016. Based on Nera’s FY2015 financials, its payment solutions business accounted for approximately 26% of the Company’s total revenue of S$181.5 million and approximately 21% of its total earnings of S$13.4 million. 

As an investor for income, I was most interested in NeraTel's payment solutions business for its more predictable income generating ability. The other two business segments with their more lumpy revenue are not as comforting.

While I understand that a large part of the gains from selling the payment solutions business would be distributed to shareholders, how much would it be on a per share basis? 

Although a back of the envelope calculation suggests that it could be as much as 17c or so a share, give or take a cent, it could be a case of killing the goose the lays the golden eggs.

Breakfast.

With this in mind, I decided to reduce my exposure to NeraTel significantly, booking a nice capital gain in the process. 

With more than decent capital gains and dividends received over the years, the rest of my much reduced investment in NeraTel is probably free of cost. 

It would be interesting to see how the management unlock or create value for shareholders in future.

See: http://infopub.sgx.com/FileOpen/20160520_NTL_Media%20Release_Disposal_PS.ashx?App=Announcement&FileID=405815

Added on 16 Jan 17:

Related post:
NeraTel: Aggressive selling as 3Q disappoints.
"As I invest primarily for income, I am mainly concerned whether NeraTel is still able to pay a meaningful dividend. I am also concerned if the balance sheet is still strong, naturally....NeraTel's balance sheet is still strong. Operating cash flow has also remained positive."

AK learns to embrace Y.O.L.O.

Caller:
"Sir, I would like to introduce a money saving card to you."

AK:
"Save money? I like. Tell me more."

Caller:
"You will get 50% discount when you dine at XXX, YYY and ZZZ!"

AK:
"Er...."

Caller:
"And the membership costs only $300 a year!"

AK:
"Thank you for calling but I am not interested."

Caller:
"Why? This card helps you save money. If your dining bills amount to $2,000 a year, you would save $1,000!"

Wow! This guy's math is up to scratch but AK is also not stupid. Since AK is not stupid, why AK never buy the money saving card?

AK must be stupid!

Friend:
"I going to Europe for vacation next week."

AK:
"For how long?"

Friend:
"Two weeks lor. Go to Europe must be at least two weeks or else not worth."

AK:
"Wah! Will spend a lot of money lor."

Friend:
"No lah, will save a lot of money."

AK:
"Really?"

Friend:
"Ya. I calculated already. I will save several thousand dollars buying my Prada, LV, Gucci and Tag over there!"

AK:
"......................................"

My friend's maths is better than mine. A1 for A Maths. I got only C5 for A Maths.

AK is definitely stupid!

Bro:
"I going to Japan for holiday again next month. You want to go with me?" 

AK:
"I love Japan. Maybe next year. Save money first."

Bro:
"You need to save money one meh? You so much money liao."

AK:
"Aiyah. Cannot anyhow spend mah. Must budget for it. A trip to Japan would still cost quite a bit of money."

Bro:
"Don't think like that lah. The savings would more than make up for what the trip would cost."

AK:
"Er... How so?"

Bro:
"The cameras there are cheaper. Buy one Nikon already save a lot of money liao. Buy more stuff that are cheaper than in Singapore lor."

AK:
"Wah! Like that also can. You win already lor!"

Bro:
"Ah bar den..."

Why AK didn't think like that?

Stupid AK, stupid AK!

Y.O.L.O. can be a good thing. It could help us to save money. So, we should embrace Y.O.L.O.

Don't be like stupid AK who doesn't know how to save money.
(For those who are even more dinosaur than AK, Y.O.L.O. stands for "You Only Live Once". It has a nice ring to it too. Er... Or is it "You Only Lived Once"? I blur.)
Related post:
A story about a lady in my life.

My passive income from 2015 all gone!

I always say that we have to be careful to avoid activities which lead to wealth destruction, especially if we want to achieve financial freedom at a faster clip. 

Even though I have never specifically said what I consider to be wealth destructive, I suspect that, intuitively, all of us know what they are or am I too optimistic?

I guess in today's world, many things can be wealth destructive and it would be quite difficult to list down every single wealth destructive activity. So, how do we know if something is wealth destructive? 





I might be putting my neck on the chopping block here but, in a nutshell:

As long as something does not create wealth directly or indirectly but consumes wealth to keep it going is wealth destructive.

If we want more of something, we don't want to do anything that will destroy it. So, if we want to be wealthier, we don't want to do anything that will destroy wealth. 

Simple logic, right? 

Simple logic this might be but it is not easy for many to adhere to.

Believe me, however, when I say that it might be difficult at first but, after a while, we will get used to the virtuous cycle of wealth creation. 

It will become easier. 

It will become a habit.

Remember that as we grow older, we become creatures of habit and it could be harder for us to change. Know some older folks with bad habits that they cannot kick? 

So, we should try to acquire good habits as soon as possible. The best time to start is always now.

In recent months, however, I wondered if a good habit could eventually become a bad one?

Everyone knows that AK is pretty frugal and is very careful with spending money but, actually, AK is quite happy to spend money on his family and is quite generous even with friends. It helps that that AK's family is small and friends few, maybe. 

However, AK was not as ready to spend money on himself.

Was?

AK has been learning to treat himself better. He bought new clothes, basically renewing his whole wardrobe. Well, he didn't have much of a choice, having lost quite a bit of weight. He also has healthier (and costlier) eating habits now.

AK sold his car and was without a car for 2 months but now has a new car, a car that costs almost as much as his passive income for the whole of last year!

Pause.

Pause.

Pause.

OMG! 2015's passive income gone, all gone!

What happened?





AK has some friends and readers to thank for this transformation. Without their suggestions, nagging and, sometimes, scolding, AK would not have transformed. 

Why use the word "transformation" and not "improvement"? 

Well, is it an improvement?

I used to think that friends who keep encouraging us to spend money are 损友 which means "bad friends". I remember a Chinese movie in the 80s with this title too.

Could friends who keep encouraging us to spend money actually be good for us?

I am so confused now. 

How? 

I blur.

Related posts:
1. A car loan is different...
2. My food bill grew... 
3.. Get a Mercedes Benz...