Updated: 5 days ago
Two weeks ago, we did a soft-launch of The Snowball Community, a co-learning and idea generation platform for the young and seasoned investor. Since we are less than a week away from our first zoom discussion meeting for community members, I thought I could elaborate more and share with you the top 3 reasons why you should join the community. Consider this my elevator pitch:
Reason #1: The Snowball Community Can Be Your Lifelong-learning Financial Literacy Partner
We started The Snowball Community with the firm belief that competent investing requires lifelong-learning. As such, it is impossible to be a competent investor just by reading a few books, watching a few youtube videos, and/or attending a course/workshop that lasts only a couple of days (yes, we beg to differ from those youtube-ad financial gurus). We believe that The Snowball Community addresses this by providing a platform for members to co-learn together.
Having started investing at the age of 17 in 2011 with S$500, I have been in the markets for close to a decade now and have built up a half a million equity investment portfolio. I have also done equity/investment research stints at Goldman Sachs, UOB Kay Hian, Maybank Kim Eng, and Auric Pacific. In addition, My team and I have also participated in stock pitch competitions and won. Hence, I believe we possess a decent level of academic (e.g. Bryan and I are CAIA charterholders), technical (e.g. financial modelling), and practical experience in helping you avoid costly mistakes, accelerate your learning curve and become a better investor. So yeah, you can tag along, learn and network with us!
Reason #2: The Snowball Community Is Cheap As Hell
I come from a single-parent, low-income household. My dad is a blue-collar worker with a secondary school education. I scored 182 for my PSLE and went to Normal Academic in Secondary School, so I am neither smart nor come from a privileged background. If you are interested, you can find out more about my background from the Mothership video below:
I shared the video above to give more context to what I am about to share. As a newbie investor back in polytechnic, I wanted to learn how to invest properly under guidance from experienced investors. As no one within my social circle was a savvy investor, the only solution for me back then was to sign up for some investment course. I remember signing up for some "free workshop preview" conducted by a reputable financial education company. Just as I was set on signing up for the program that would last for a few days, I was told that it would cost $3,999 AFTER discount. At that time, my savings (from working in a food packing factory, part-time at a cafe, and distributing flyers at events) and investments amounted to about S$4,000. I was completely distraught. Signing up for the course meant that 100% of my savings and investments would be wiped out. While they told me to "invest in my own education", the prohibitive course fees led me to decide not to go ahead with signing up and learn investing on my own instead.
It is this precise memory of mine that led us to price The Snowball Community membership at only S$10 per month with no lock-in period. What this means is that you can unsubscribe anytime. This pay-as-you-go monthly subscription model is certainly more inclusive and less prohibitive compared to shelling out hundreds or thousands of dollars for investment courses where you have no recourse in the event it sucks. In a way, we are providing a solution that I needed when I was just starting out.
To put things in perspective, a Netflix basic subscription costs S$11.98 per month while a Spotify individual subscription costs S$9.90 per month. Surely, wouldn't an investment in your own financial literacy be worth at least as much as bingeing Netflix series and chilling to Spotify? I'll leave that up to you to decide.
Reason #3: The Snowball Community Is An Excellent Idea Generation Source
No matter whether you are a young or seasoned investor, you will always be in need of a source of idea generation. I believe that The Snowball Community is a great place for you to source for new investment ideas. As a community member, you will gain access to the private Snowball Community telegram group chat, The Snowball Watchlist (basically a list of companies that we are currently monitoring), near-real-time transactions of The Snowball Portfolio (basically what stocks we are buying or selling), and downloadable excel financial models that we actually use in our valuations for deep dives (you can replace our assumptions with your own numbers to derive your own implied fair value estimate).
What is the value of an excellent idea? Good question. Here is the track record of our case studies more than 6 months after post. You can refer back to the posts yourself if you'd like.
Riverstone Holdings, a glove maker, first published on Apr 26, 2020, is up 152% in 9 months.
China Sunsine, a chemical producer, first published on May 15, 2020, is up 23% in 8 months.
CNMC Goldmine, a gold miner, first published on Jun 22, 2020, is up 25% in 7 months.
Suppose you have a S$5,000 investment portfolio and it returned you 23% (I am using the lowest return figure above), that is a gain of S$1,150. Now contrast that to the monthly subscription cost of S$10. That is the value of an investment idea, knowing where you can consider deploying your capital. It goes without saying that you have to do your own due diligence as well.
To wrap it all up
At the time of writing, we have 27 (currently 56 as at 21st Feb 2021) extremely supportive community members to whom we are truly grateful for. We hope to grow this community over time, sustainably. As the community grows in size, we aim to reinvest all cash flows into The Snowball to create more content, cover more markets and various asset classes. It is with such scale that we will be able to democratize financial literacy and intelligence at a global level. By joining the community, you help us keep the lights on and enable us to bring The Snowball's mission and vision closer to reality. We are just starting out, but boy am I excited for the future.
In case you are not on our Telegram Channel, here is the agenda for our maiden zoom discussion for Snowball Community members this Saturday:
Ok, that's all for my elevator pitch.
The team and I look forward to welcoming you to the Snowball Community on Zoom!
Thanks for reading,
Disclaimer: This article is not an investment (buy/hold/sell or otherwise) recommendation, this is only for educational and discussion purposes. This article is not tailored to the specific circumstances of any reader. I/we/The Snowball do/does not purport to be in the business of providing financial advice and the contents of the article should not be regarded as such.