Money Muse: Investing is actually easier than you think, says this man

Money Muse is AsiaOne's maiden series of profile interviews with financial and investment bloggers where we learn more about what they do, how they started writing, their motivations as well as lessons gleaned through their writing journey. 

We caught up with Dr David Kuo, the co-founder of The Smart Investor, which aims to educate its readers on how to invest smartly by providing investor education, stock commentary and market coverage for Singapore and global financial markets. 

David set up The Smart Investor together with two other alumni from the now-defunct The Motley Fool Singapore, after the platform was shuttered last year. At The Motley Fool, David drove overall business direction and was the lead advisor for its first-ever stock recommendation service in Singapore.

David is also an esteemed financial broadcaster, highly sought after by various media platforms such as MoneyFM, BBC, CNBC, CNA and 938Live. 

We sought to delve into his thinking about investing as well as his personal journey into the realm. 

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ASIDE FROM BEING THE FACE OF THE SMART INVESTOR, WHAT INTERESTS YOU? 

David (D): I am first and foremost a private investor. I invest in companies that will in the short term provide me with regular income, and in the long term deliver capital growth.

I am also a lifestyle coach and my aim is to motivate people to take charge of their own finances so that they can one day become salary independent.

WITH A NUMBER OF HATS TO WEAR, WHY FOCUS ON INVESTOR EDUCATION, IN PARTICULAR THROUGH THE SMART INVESTOR? 

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D: Because finance is actually easy but there are many professionals - especially those with a vested interest - who would like us to believe that it is harder than it really is. It is in their interest to maintain an air of mystery around finance - that is how they can earn a living.

In the land of the blind, the man with one eye can be king. So, my aim has always been to enlighten those who want to learn. 

HAS THIS BEEN EXACERBATED BY THE CURRENT SITUATION IN FINANCIAL MARKETS? 

D: The cut in global interest rates has left many people, particularly those who are approaching retirement, very confused. Some are downright scared of the prospect of retiring in the face of low annuity rates.

Many have had to become reluctant stock-market investors with little or no experience in investing. I hope that I have been able to help some of those people understand that there are alternatives to annuities.

WITH THE SMART INVESTOR JUST STARTING OUT, WHO ARE YOU LOOKING TO TARGET THROUGH YOUR CONTENT?

D: Investing, especially in the stock market, can be as hard or as simple as we would like it to be. So we are looking to address as wide an audience as possible. At its most basic, regular investing in a low-cost index tracker would allow anyone to get exposure to shares in the stock market.

We don't need a PhD in finance to do that. And we don't need a lot of money to get started.

But those who want to pick their own shares and build their own portfolios may enjoy our more in-depth research into companies and learn how to put together the shares they like in a meaningful way.

STARTING A PLATFORM LIKE THE SMART INVESTOR CAN TAKE A LOT OF EFFORT. WHAT MOTIVATES YOU?

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You are right - writing can be quite labour intensive. But if you enjoy what you are doing — and believe that what you are writing about will help those become more financially secure and more financially literate — then it becomes a labour of love rather than a tax on your time.

The financial markets are rich with stories. There is never a shortage of things to write about.

WHAT DO YOU THINK IS ONE BIG FINANCIAL ISSUE THAT A SINGAPOREAN MIGHT FACE IN THEIR LIFETIME?

Perhaps the biggest financial decision that anyone will ever make is when they buy their first home. Almost overnight you go from being cash-rich to being massively in debt to the bank. Like most new homeowners, we are never properly prepared for the sudden change in our personal finances.

Those payments that you were once comfortably making into your pension would be reduced and those nights out that you took for granted quickly stopped.

It is probably the greatest crash course in personal finance that anyone can take. It is not a course that you can afford to fail because failure could mean losing the roof over your head.

WHAT ARE THE BIGGEST LESSONS ONE CAN DRAW FROM OVERCOMING INDEBTEDNESS?

Being properly prepared for some of life's biggest financial challenges is probably a big underestimation. But unfortunately, personal finance is not taught enough in schools, if at all. Why are we not equipped with the knowledge ahead of time?

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I have made sure that my children are properly prepared for the important financial decisions that they will need to make because one day I may not be around to help them make the right ones.

WHO INSPIRES YOU THE MOST?

It has to be Warren Buffett because he breaks down difficult concepts about money into advice that is digestible and understandable. He once said that investing is delayed spending.

In other words, if we forgo spending today, we could have more money to spend later on.

But at the same time, he said we shouldn't go overboard on delayed gratification. He said that there's a lot to be said for doing things that could bring us happiness, especially if the money is spent on something meaningful that can justify the monetary cost. Put another way: think before you spend.

IF THERE IS ONE THING YOU CAN TELL YOUR AUDIENCE, WHAT WOULD IT BE? 

Start investing in wonderful companies now. Never try to time the investment but always ask yourself if the company that you are investing in could be bigger and more profitable in 10 years' time. If the answer is yes, then invest in it now. If the answer is no, then don't even think about investing in it for 10 minutes.

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The Smart Investor will be part of an increasing and growing stable of bloggers whose writings we will feature in our money column. Look out for their stories!

simeonang@asiaone.com