Billionaire_Bunny: ABOUT ME

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ABOUT ME

Who is Hansen Bun?
Hi, my name is Hansen Bun. Welcome to my humble blog, I appreciate for you, visitors to take the time to learn more about me. I'm going to be your host for my blog, "Billionaire Bunny," also known as "Dividend Growth Bunny."
 
First, let me introduce myself. My name is Hansen Bun. I was born in March 1990. Born in Jakarta, Indonesia but spent the majority of my childhood time overseas for my education. I stayed in Singapore for four years, where I had my elementary school and moved to San Francisco, United States, where I started receiving my middle school, high school, and university education.
 
After graduating with a finance degree from San Francisco State University in December 2012, I decided to move back to help and work in my dad's company. I am still employed in my dad's home appliance manufacturing company in Jakarta, Indonesia. However, I also consider myself as an entrepreneur who likes to start new businesses and invest in the stock market on the side.  
 
Anyways, you guys reading this page right now are probably curious to know about me. I will explain my investing journey on this page so you readers can learn more about how I get started.


So, how did I get started to stock investing?
I started experiencing about stock investing in the year of 2007. It wasn't me who discovered it, for it was my older brother, Peter, who first learned about the stock market. After learning its potential, he then eventually introduced me to it as well. I remembered learning about this when I was still in high school. 
 
Even though I was still young at that time, however, I was already interested in learning how to become wealthy one day. My brother and I started investing in the stock market with a simulator portfolio. A simulator portfolio is a dummy portfolio that we can support with fake currency. It was an enjoyable and exciting moment when we first started. We began investing in stocks we think is a good buy.
 
At that time, we didn't know anything about fundamental analysis or value investing. We were looking at how the stock market moves upward and downward every day. I recalled to always checking how the stock market is doing every day in the school library. I was continuously checking stocks' historical performance and learned that I could become rich one day by investing in the stock market.
 
Despite our lack of knowledge and experience in the stock market, my brother and I were making a profit with the investments we made with our mock portfolio. It was an enjoyable and challenging moment. We realized that there are opportunities for investing in the stock market.
 
This is when we decide to invest in the stock market with real money. My brother decided to open a brokerage account with Scottrade, and started with a $20,000 investment from our dad. Our portfolio was doing great since the market kept moving upward during the 2007 rallies. In the year of 2008, when the United States got into recession, that's when we lost money. It was also the time when we get more serious about the stock market.


How we began to get serious about stock investing.
My brother started reading about investing and was inspired by one of the greatest investors, Warren Buffett. He then learned that the crash was one of the best opportunities to purchase stocks since companies have cheaper valuation. As you can see, my brother and I grew up in a well-off family. My dad was a self-made businessman that operates a home appliance manufacturing company in Jakarta, Indonesia.
 
My brother somehow persuaded my dad to start investing in the stock market during the recession. My dad wanted us to learn more in this field, which led him to give us a large sum amount of $380,000 to invest, making our initial investment capital of $400,000. This was a large sum amount of money, and my older brother was responsible for managing the money diligently. 
 
Despite our lack of experience and knowledge, we were making money and losing money at the same time. It was kind of like a trial and error thing. At those times, I didn't know much about investing since I was five years younger than my brother. I was following his footsteps in supporting for he had more experience than me. We did have much fun trying out new things with the capital we were given. And as an amateur investor, we made a stupid move and trying different investment strategies.
 
When I was in University, I decided to take finance as my major to learn more about the investing world. I don't think the finance courses I enrolled in had benefited me much. I guess I was taking those classes to meet my requirement for my Bachelor's Degree. 
 
One day, when I was walking down the university hallway towards the cafeteria, I came across to these students promoting their organization to other students at the University. This organization was a finance club called "Financial Analysis & Management Education". This club is a turning point for me, where it changed my view of investing. 

San Francisco State University

It was a great club with lots of opportunities. Students signed up to the organization so that they can get better options in career fields. However, I was looking at it from a different perspective. I wanted to learn more about the investing area. I knew that stock investing is an excellent skill to learn since people had become wealthy from it.
 
I enrolled in this activity part of the organization called Fund Management. ­­ People with great interest in investing meet there once or twice a week, where you learn more about the stock market. I started learning more about value investing, an investment technique used by legendary investor Warren Buffet. I learned to read financial statements such as the income statement, balance sheet, and cash flow statement and grew more familiar with interpreting these data. It does not seem very clear at first, but eventually, I got accustomed to it. Moreover, I also learned many new fundamental skills to invest that changed my perspective in investing in the stock market.

San Francisco State University

When deciding on which stocks to invest, I was taught to use a stock screener. This is an advantageous tool to filter out those companies that do not meet certain financial criteria. I focus on the instruments within my defined metrics: companies that trade at discount-to-book value, tangible book value, high dividend yields, low price-to-earnings multiples, and low price-to-book ratios. 


Furthermore, I accumulated experience in gathering data from a range of sources and applying that information to develop financial models for companies listed in the market. I have constructed a financial model to project company's earnings and future cash flow. I calculated its intrinsic price value using the DCF method and other valuation metrics to derive investment conclusions. 

Learning to become a Value Investor, I was taught to hold companies for a long-term horizon rather than buy and sell stocks based on chart indicators. When there is a bear market (falling market), I was taught to use this as an opportunity to seek companies that are trading below its intrinsic value. This gives me a massive cushion of the margin of safety to minimize my investment risk. It is essential to purchase the stock cheap and have a sound business model, preferably with a tremendous economic moat (competitive advantage), so that it will not erode quickly when going against competitors in the long run.  
 
With the skills that I acquired from the finance club and my brother's knowledge in investing, we were able to turn the $400,000 portfolio into a $700,000 portfolio by June 2015. That's a compound annual growth rate of 7.25% from the year 2007 to 2015. The result was still a loss to the average annualized return of the S&P 500; however, we were pretty satisfied with our result considering the facts of the trial and errors we went through. It was no doubt a great learning experience!

Financial Model on Johnson & Johnson

What makes me start a Dividend Growth Portfolio?
Passive income assets always inspired me after reading "Rich dad, Poor dad" by Robert Kiyosaki. The book teaches us how we should focus more on building the asset column so that there will be enough passive income coming in to pay off all of our expenses. The book didn't focus on stocks that payout dividends; instead, it focuses more on rental properties that can generate income. I knew that purchasing rental properties was impossible for me since I don't have that kind of money.
 
Until June of 2015, I came across a dividend growth investing blog called "Dividend Mantra" by Jason Fieber. I read his "About Me" page in his blog, and it inspired me to create a dividend growth portfolio. I like that I can use his strategy to create a portfolio that generates passive income similar to how rental properties assets. I find that dividend growth investing was more practical than rental properties since I don't have to rent the properties out, which can be time-consuming.
 
After researching dividend growth investing, I decided it was time to open my brokerage account with E-Trade Financial. In October 2015, my brother and I decided to split the $700,000 portfolio. My brother understood that I wanted to try out this new method of investing. I guess it was also the time actually to manage my own portfolio and be independent. 
 
After the split, I recalled managing my investment portfolio of $400,000. I remembered that it was in October 2015 when I started managing my portfolio. I wanted to make this portfolio similar to Berkshire Hathaway, a holding company that is own by Warren E. Buffett. Of course, it's not going to be as big as Berkshire Hathaway, but I will be content if it can at least become a mini version of it. 
 
My strategy was to combine value investing style and dividend growth investing style together. Some of you might ask, "Wait a minute; how is dividend growth investing has anything to do with Berkshire Hathaway?" Indeed, Warren Buffett does not invest exclusively in dividend growth stocks, and he is known more for being a value and growth investor. However, if you did more research, you'll notice that he is a dividend growth investor. His company's top 5 stock positions, as of the year 2015, makes up 70% of his portfolio. Moreover, his top 5 stocks holdings pay out dividends. Those holdings have been increasing their dividends year-after-year. During that time, Warren Buffet top holding in Berkshire Hathaway was Wells Fargo [24% of portfolio], Coca-Cola (KO) [15% of portfolio], IBM (IBM): [12% of portfolio], American Express (AXP): [11% of portfolio], Wal-Mart (WMT): [4% of portfolio], and Procter & Gamble Co (PG): [4% of portfolio].

Wal-Mart and Coca-Cola have the longest dividend streaks of his top 5 holdings. Coca-Cola has increased its dividend payments for 53 consecutive years, while Wal-Mart has increased its dividend payments for 42 straight years. Warren Buffett's portfolio proves that he is a dividend growth investor more than any other investing style.

My goal for my portfolio is to generate better returns than the S&P 500 index and have the dividends coming from the portfolio to become a passive income for my early retirement. I was also going to put $2,000 every month to my portfolio to have more of my money to be invested in the stock market. 

Furthermore, I decided to create my finance blog at the beginning of my managing my portfolio. The finance blog is called "Dividend Growth Bunny" and displays my portfolio's real-time spreadsheet. Moreover, the blog also includes the transaction history page so that visitors can see when I purchase or sell stocks. It also shows the incoming dividend payout that I received from holding these companies. My blog also shows my monthly and annual dividends performances that are displayed in a spreadsheet. 

Warren E. Buffett & Berkshire Hathaway
 
What will Billionaire Bunny's blog be about?
It has been more than five years since the inception of my portfolio and blog." During these five years of managing my portfolio, using dividend growth investing and value investing had generated me a decent annual return to my portfolio. After the portfolio split with my older brother and starting with $400,000 of capital in October 2015, I was able to turn my portfolio to $790,000 as of October 2020. That's a compound annual growth return of 9% since the inception of October 2015.
 
"Billionaire Bunny" will be a personal finance blog about me. Similar to "Dividend Growth Bunny," I will continue documenting my investing journey. However, this blog will become more of a personal blog about me since I have created a new website such as FinzWatch, a financial media company that gives readers the information about personal finance, stock investing, and many more in this niche. I believe that "Billionaire Bunny" will be a blog page documenting my personal life and journey to financial freedom. 
 
I believe creating this new site can help readers out there who want to learn more about myself. I hope this blog can help me connect with new like-minded investors out there who can connect with me. I am not stopping to investing and will continue my financial journey to become wealthy one day. I don't have a clue where I'm going to be 10 or 20 years from now. Billionaire Bunny's blog will provide readers and followers to know about my financial journey to become a billionaire somehow one day. 

2 comments:

  1. Looking out for our parents are great!! I'm all for it! It's truely making a different having money invested rather than just have it sitting around and get eaten up by inflation.

    ReplyDelete