Once every few months, I would receive advertisement from bank to take a loan at 0% interest but with a processing fees. Normally, I would ignore them as the processing fees and hence effective interest rate is not attractive. Recently, Citibank emailed me again and offer such a loan from my credit card. Relatively to 2% to 3% of processing fees from previous years, this looks more appealing, even though the EIR is still not that low.
I was interested with a few of the new recommendations from Motley Fool Rising Stars services. However, as I am already 83% invested and am intending to subscribe the excess rights for the upcoming Mapletree Industrial Trust, I KIV-ed the idea.
Now with this offer, I decided to have a tiny adventure and bought 8 counters with it. With the exception of Ozon, the rest are from subscribed services, so I won’t reveal their full names. For the record, the service advises subscribers to purchase at least 25 out of the 40 recommendations and hold them for at least 3 to 5 years.
| Counter | Market Cap (US$bil) | Invested (US$) | P/L (%) |
| B | 2 | 1.8k | 10% |
| C | < 1 | 1.8k | 8% |
| I | 3 | 2.0k | -2% |
| J | 4 | 2.0k | 10% |
| L* | 6 | 2.3k | 14% |
| L | 2 | 1.4k | -3% |
| Ozon | 11 | 1.4k | 3% |
| U* | 12 | 2.2k | 41% |
It’s been less than a fortnight since I purchased the counters, and the tiny adventure has gotten off to a pretty good start, returning 11.5%. Even though I am already in the green, I am not selling yet. My intention is to hold them till the end of the 6 months before deciding what to do. Key considering will be their next two quarters of business progress and the total return by then.
The best scenario is that they do so well for the next 6 months such that the profit can pay off the loan. And the worst case scenario is that they do badly for the next 6 months, and I no longer like their business such that I would liquidate all with a loss. What is most likely to happen is something between the above two scenarios. Based on my current sense, I should be holding on to them beyond 6 months.
I will do a monthly update on this tiny adventure.
Towards Financial Independence 