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Lorna TanInvest Editor
The ST-SGX Research Leaders’ In-sights Series features 10 research ex-perts who take turns to offer their views each month. This week, The Sunday Times meets Mr Jarick Seet, who leads the small-mid cap re-search team in Singapore at RHB In-vestment Bank (previously known as DMG & Partners Securities).
Mr Seet, 31, was awarded the Thomson Reuters Starmine Top Three Singapore Overall Stock Picker in 2015 and has been voted No. 1 in Singapore for best small-cap analyst in Asiamoney’s brokers poll in 2015, 2016, 2017 and 2018.
He obtained a Bachelor of Com-merce, majoring in finance, from the University of Queensland in De-cember 2012.
Q Tell us more about your path towards becoming an equity research professional. A I became interested in investing when I was studying in Singapore Polytechnic (SP). As I have little in-terest in arts and sciences, I began to explore more in the world of fi-nance and stumbled onto the world of stock markets.
I always wondered, what causes a stock price to go up and how does one actually value certain types of companies and ultimately, how
does one win this zero-sum game?As a result, after completing my
diploma in banking and finance, specialising in finance in SP, I went on to do my Bachelor of Commerce in Australia, majoring in finance. I tried various jobs, including propri-etary trading, but I realised my in-terests still lay in investing in equi-ties. I then had the opportunity to intern at OSK-DMG, under my for-mer boss Terence Wong, and I have never looked back since.
Q Which areas does your research focus on?A I started out covering the tech/ manufacturing sector, then moved on to small-mid caps as I wanted to learn more about other sectors. The breadth and depth of the small-mid cap sector exposes me to different types of companies in different in-dustries and allows me to meet a wider variety of people. I focus mainly on a bottom-up stock-pick-ing approach and currently am in charge of the small-mid cap sector at RHB.
Q What is your approach towards assessing a company or sector? A I like to look at the bottom-up ap-proach and depending on the type of company, I will apply different valuation metrics and investment thesis.
Some of the key considerations I look at are the investment thesis
and story of the company, as well as its balance sheet and cash flow gen-eration capabilities. Another vital factor is the management behind the company as they are the ones who ensure whether it succeeds or not. The reading of character and determining whether they can ac-complish what they set out to do is a vital skill set.
Q How has your profession influenced your personal investment style?A This profession has taught me that investing is not a simple task... Drilling deep into the numbers and understanding the company’s oper-ations, its margins, competitors, edge over the rest as well as the quality of the management is vital to whether your investment re-turns gains or goes down the drain completely.
At the end of the day, the amount of effort you put into studying the company before investing would likely correlate with the returns you generate over the long run.
Q Are you a saver or a spender?A I would say I am both. I save a right amount of money to plan for the future and at the same time I try to ensure that I enjoy what I need at the right moment and time – as the saying goes, you only live once.
Q What’s in your personal
investment portfolio?A Insurance plans as well as mainly property for now. Got to make use of the low interest rates before they run out.
Q What is your advice for retail investors with regard to using research reports?A My advice would be to use re-ports as references to gain more in-formation about the company, in-stead of blindly following what the reports say. I strongly advise in-vestors also put in some time and do their own homework on a com-pany before investing.
Derek Wong
First, the sheer joy. My wife and I were over the moon when we knew baby Andrew was on the way.
Then, the uncertainty. My nascent dad brain went into overdrive minding each little logistical detail.
Where do we start? What do we need? More importantly, how much do we have?
Of course, the Internet is great for all kinds of “Baby must-have lists”.
Now, slightly over a month since we welcomed Andrew into the world, I am that little bit more informed on the needs and nice-to-haves.
CHOOSING A DOC AND HOSPITALWe chose an obstetrician recommended by my wife’s friend. To us, what mattered most was how comfortable we felt with the person.
The doctor we opted for was perhaps on the expensive side, which was reasonable because of her reputation and the clinic’s location at the posh Mount Elizabeth Novena.
However, that did not mean we had to have our little one delivered there – do ask about where your obstetrician may be able to operate at.
We eventually decided on Mount Alvernia, a more established (some may say older) hospital that we estimated cost about $1,000 less overall.
BUILDING A NESTI thoroughly enjoyed the redesign of a vacant room in our home to become a nursery. But be an early bird.
I thought I was well ahead of schedule when I started repacking things, shifting furniture out and repainting the walls at the end of the first trimester.
However, the nursery was only just about ready as Andrew arrived two weeks ahead of the expected due date.
Some tips: Instead of paying upwards of $50 for a moving company to clear out bulky furniture, do a giveaway or sell real cheap on an online marketplace like Carousell, and ask that the buyers collect the items themselves – a win-win!
I also refrained from spending hundreds of dollars on baby furniture such as a cot, which I know Andrew will outgrow in no time.
There are many parents out there desperate to sell cots on the cheap or even give them away just to clear out space. I was most grateful for a second-hand Ikea cot in good condition I got for free on Carousell – it was quite a workout to dismantle and bring the cot home myself, but it was well worth the trouble.
THINK SECOND-HAND FIRSTOn that note, probably the most trusted principle I learnt is to go for hand-me-downs as much as possible. You can easily save hundreds of dollars by using pre-loved prams, baby clothes and toys, for instance.
I was pleased to get a fancy pram (that converts into a car seat) on Carousell for what I felt was a reasonable price, especially as I observed that the model was popular enough to retain value even if resold.
After sending it for professional cleaning, it felt as good as new.
From the get-go, my wife and I also resisted buying baby clothing, caving in on only a handful of occasions. It may be a lot harder (for my wife) if and when we have a baby girl to play dress-up with.
I’m really glad we kept our discipline in the stores, as family and friends were very generous.
I’m quite sure baby Andrew has a larger range of attire than me now – and which is more fashionable, although that’s not saying much.
The same goes for toys – they will come, whether as gifts or hand-me-downs.
Having said that, there are some items that I obviously would not get second-hand, such as a steriliser.
We splurged on a fancy-looking ultraviolet South Korean one that we felt was extremely handy and saved us a lot of hassle, as there are bottles and breast pump parts that need to be cleaned throughout the day. It might just be our best buy yet despite the hefty price.
And if you do end up buying new items, keep the original packaging and instruction manuals for a possible resale. There’s a chance your baby may not take kindly to that $200 baby carrier.
ALL’S NOT THAT FAIR AT BABY FAIRSWe did our rounds of baby fairs, where distributors and merchants converge for days-long product bonanzas.
Usually held at convention halls at the Expo or Suntec, you can
glean some good deals at such fairs. They are held several times a year by different organisers, so don’t fret if you miss out, even though they often proclaim themselves as the biggest or having the best deals.
The truly good deals are often won if you already have a specific model and brand in mind and you pre-order it online before collecting it at the fair. Price comparisons must be made, of course.
Otherwise, it can be a very overwhelming experience filled with the fear of missing out – which could lead to impulse buys.
My take is that the deals aren’t all that fantastic for the most part – sometimes your neighbourhood baby product store may offer a similar or even better price.
Sure, the fairs tend to throw in many freebies, but these may be items you may not even need in the first place. So don’t worry if you don’t visit such fairs – it may not be worth braving the crowds with baby pram in tow for a deal you may easily find on online marketplaces such as Lazada or Qoo10.
This is especially so for bulky items such as cartons of wet wipes or diapers, in which case getting them delivered right to your doorstep is very wise indeed.
UNEXPECTED COSTSOf course, the cash burn does not end once the baby pops. Rather, the expenses seem to come at you from all quarters post-birth, with some that hardly ever crossed your mind.
A bloated utility bill was one, as the household electrical and water consumption more than doubled.
We had a confinement nanny for the first month (the going monthly rate for one of them these days is about $3,000), and it seemed the kitchen was always bubbling with soups and the washing machine on a perpetual whirl.
Another costly bolt from the blue was repeated polyclinic and hospital visits for check-ups and breastfeeding guidance, which together added to a substantial amount.
Finally, if you are planning to hold a “full-month” birthday party for your child, get ready to loosen the purse strings to book venues and cater for food. It is not uncommon for some to spend thousands on such occasions.
It may seem like I’m counting all the costs of raising Andrew – and it is costly, no doubt. But any financial burden becomes oh so light when I see him smile.
Mr Jarick Seet says research reports are useful as a reference point to gain more information, but investors should do their own homework too. PHOTO: RHB
Go for hand-me-downs when saving for your newborn, and do budget for unexpected costs
Spotlight on ST-SGX Research Leaders
DO YOUR HOMEWORK
Drilling deep into the numbers and understanding the company’s operations, its margins, competitors, edge over the rest as well as the quality of the management is vital to whether your investment returns gains or goes down the drain completely.
’’JARICK SEET
Management team a vital factor in assessing company
SmallChange
Practical baby steps in spending
Sunday, July 28, 2019 | The Sunday Times Invest | B13
