Adam Khoo - Large Investor but Thrifty Spender

Regardless of becoming a wealthy man, entrepreneur-cum-motivational lecturer, Adam Khoo hesitates before he spends on products like iPhone.

However, in terms of investments, the founder of the Adam Khoo Learning Technologies Group will not even have a second thought when investing, supposing, $50,000 worth of stocks, since these are expected to possibly generate more cash.

As a long-term and conservative investor, he chooses to engage investment in cash-rich, large-capital firms that offer low debts and the possibility to constantly raise their earnings.

His group concentrates on education and consists of 16 companies in seven nations with a yearly $15 million turnover. In 1999, he also assumed an advertising firm, Adcom, which was previously owned by his father.

Mr. Khoo earned a degree in business administration from Singapore’s National University. He is also recognised for his famous books. Previously last month, he introduced his ninth book entitled Profit From Panic, which provides practical information regarding how to relate with the present economic crisis.

Ms. Sally Ong is Mr. Khoo’s wife, who acts as a director at one of his companies. They have two daughters namely Kelly and Samantha.

One factor that helped him to attain wealth is his frugality. He saved the half of his income and does not spend a lot on luxurious things. His clothes were bought individually once in a year, which shows his simple taste.

Mr. Khoo invests 100% of his savings systematically. However, when the market becomes overvalued, he holds a bigger amount of cash as his precautionary measure. He personally manage his portfolio, which is made out of several investments such as private businesses, Singapore stocks, property rent outs, exchange- traded funds (ETFs), and US stocks. Annually, his investments generate an average return of more than 20%.

Currently, he have approximately US$400,000 or S$611,000 in US stocks, such as Google, Boeing, Nike, ETFs, and Pepsico, and $400,000 in Singapore stocks, such as OCBC Bank, CapitaLand, the Singapore Stock Exchange, STI ETF, and Bestworld.

In 1998, Mr. Khoo purchased 1,300 square feet condominium located in East Coast worth $480,000 and placed it on lease for almost $3,000. He then sold it in 2004 for $650,000.

He also owns 5,000 square feet semi- detached residence situated in East Coast which he purchased for $1.3 million four years ago. Last year, he bought 900 square feet condominium worth $1.3 million, located at Robertson and placed it on lease for $4,000.

When he was 15 years old, his grandfather gives him hongbao with cash as well as Malaysian shares like Kuantan Flour Mill, Hicom, and Genting every Chinese New Year. At the army, he tried dabbling in shares and was inspired by a book entitled, Buffetology, which was based on Warren Buffett’s achievement and work.

Last October, he bought a red Lotus worth $230,000 as a reward for his hard works.

He can stop working anytime he wants with his passive book royalty incomes including business profits, which can cover all his expenses without working.