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    SGX

1. LHT (Typical undervalued stock)
2. Stamford Tyres (Typical undervalued stock)

    NASDAQ / NYSE

1. Visa
2. Master card
3. Texas Instruments
4. Intel
5. Symantec

    HANG SENG

1. Safety Godown
2. Sunlight REITS
3. Kowloon Development

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The idea of the permanent portfolio was coined by harry browne whose idea had survived many bear markets and managed to maintain its strength against many other trading strategies.

15 hr work week has implemented his own version of the permanent portfolio with a very shrewd choice of stock as the US denominated pick, Berkshire B. You can see his holdings over here. http://www.my15hourworkweek.com/our-portfolio/

wb
Getting the Oracle of Omaha to help him manage 20% of his portfolio was a no brainer.

In a nutshells his picks are roughly in this percentage.

1. SG stocks – 20%
2. US stocks – 20%
3. Cash – 20%
4. Long term govt bonds – 20%
5. Gold – 20%

The need for adaptations and change is that in the past 50 years, we have seen an explosion and disruption of how data is being communicated, thus the need for huge adaptations or change in the way we view money, communication and the same way which made buffett rich 50 years ago will probably not make us rich now.
change2

So now I have adapted my own thinking and made some changes to the permanent portfolio to a permanent portfolio for the modern investor. These are the desired percentage of the portfolio I am aiming towards. i know this will certainly have some controversy as I am replacing the safe version of the portfolio with more riskier assets, some may even say that this is not even a PERM portfolio.

high risk

1. Stocks – 40%
2. Cash + SSB – (15 -20%)
3. REITS (Replacing Long term govt bonds for their higher yield) -30%
4. Commodities (Gold, Silver and crypto currencies)- ( 10 – 15%)

Compared to my current holdings.

1. Stocks – 42%
2. Cash + SSB – 17.40%
3. Reits + Pref Shares (Income producing) – 33.54%
4. Commodities (Gold, Silver and crypto currencies) – 7.16%

Moving forward for the next few months, once I get my salary for this year, I will need to buy more of (4) Commodities (Gold, Silver and crypto currencies). In a nutshell, I will need to double down on my current cryptocurrency holdings. Only when we change, can we adapt to this new world ahead.

To do list for the month ahead until the end of the year.

todolist

1. Buy more crypto currency to hit 15% of (4)Commodities (Gold, Silver and crypto currencies)

2. Stop purchasing stocks this year

3. Save some cash in my bank.

4. Start a list of stocks to analyse for next year

5. Look at mega trends and try to find and capitalize on them (Eg IOT and AI)

AIIOT

Today at 9.30am bitcoin forked into a hard fork Bitcoin Gold and Bitcoin Core. In the financial markets it feels like a XD period whereby the dividends are given out and the price dropped. However different from the financial markets were that once the fork occurred, money started flowing into Ethereum and other Alt coins.

Trying to gain back control of my life as I have been watching the price of crypto currency, abit too much (5 hrs spent on mobile today). I have set a buy signal at 4500 USD, thus tommorrow I will try my best to resist watching the price of crypto currency. Should rather spend the time understanding the protocol behing ethereum instead.

Build the brain you want.
https://www.youtube.com/watch?v=LNHBMFCzznE

Step 1 : In order to start browsing and communicate with the Ethereum block chain, please download and install MIST
https://github.com/ethereum/mist/releases

Step 2 : Repeat the 2 commands on gitbash which you have done on Lesson 1

Command 1 : geth –datadir=./chaindata/ init ./genesis.json
Command 2 : geth –datadir=./chaindata/

Step 3 : With Geth now running in the background, run MIST , by running Geth in step 2 in the background, you are forcing MIST to load into your private network instead of loading into the “Real Ethereum blockchain”. You will see connecting to peers, however since there are no peers, just click on launch application.

ethereum private net

Step 4 : You will now be in the create ethereum wallet page, create a test ethereum wallet account in the private network and add account.

ethereum wallet image

Step 5 : Now open a new Gitbash and type

geth attach

geth attach

Step 6 : Now type
miner.start(1);

Step 7 : Go to your original gitbash, you can see the mining has started

mining started

Step 8 : Once completed at 100 % there will be ether at your wallet

first block mine

30ether

1. Segregated witness – Segregating the signature out of the transaction

2. Transaction Malleability – Change signature without invalidating the transaction -> Eg Compounding a transaction (Not sure how this works)

3. Segwit will be able to prune away the signatures in the blockchain due to the fact that transaction made it into the blockchain means that it has already been validated, thus eg for those transaction which happened 1 year ago, since it was already impossible to reverse it, the signature is no longer important.

4. Moving the signature to another data structure

5. Segwit was supposed to be a soft fork which miners signal that they are segwit ready and segwit will auto upgrade when >95% of the miners signal that they are segwit ready, however the miners refuse to signal segwit for some reason.

6. Segwit will move the signature away thus it is no longer a chain of signature, thus purist claims that this is no longer valid

7. Because miners blocked Segwit and the market wants segwit, Charlie forced a user activated soft fork which forced miners to activate segwit if not they will be mining Litecoin version 2.

8. Decentralised systems are actually not efficient as all the transactions need to be handled by all the nodes

9. Rootstock Ethereum virtual machine: Adding an ethereum smart contract to a bitcoin as a side chain.

10.Lite Coin Future (Confidential Transaction)

Eg 1 : If the history of litecoin has a transaction which is used to buy drugs, coinbase will ban you

Eg 2 : If you buy a coffee at starbucks, the shop keeper can see how many lite coins you have in your wallet left.

11. Cross chain atomic swap – To shape shift to another cryptocurrency without a 3rd party

12. Benefits of cryptocurrency : Uncensorbility, no one can block anyone for sending a cryptocurrency eg wikileaks.

13. Segwit 2X hardfork estimated to be 15% of the normal bitcoin

14. Micro transactions might not be feasible on BTC lightning network as the fees are too expensive, thus lite coin aims to serve this micro transaction market.

15. Cryptocurrency is like Gold which you can send to anyone over the world for almost no charges

16. He has his doubts about proof of stake as it might not be secure enough to send a alot of money

17. Proof of work might still be the most secure blockchain

18. Value of the bitcoin is the network protecting it / Securing it: In order to attack it you need to spend a lot of money

19. When the day cryptography is broken it will not longer be possible for BTC to work Eg quantum computing, however when this day comes, we will have other problems with the financial markets as well.

Step 1. Download Geth
https://geth.ethereum.org/downloads/

Step 2. Download Gitbash (You could use CMD, but most tutorial uses Bash shell, thus using Gitbash will save you lots of time in the long run)

Step 3. Google for a Genesis.JSON file for ethereum, copy and paste it in notepad
The one I am using is below.

{
“config”: {
“chainId”: 33,
“homesteadBlock”: 0,
“eip155Block”: 0,
“eip158Block”: 0
},
“nonce”: “0x0000000000000033”,
“timestamp”: “0x0”,
“parentHash”: “0x0000000000000000000000000000000000000000000000000000000000000000”,
“gasLimit”: “0x8000000”,
“difficulty”: “0x100”,
“mixhash”: “0x0000000000000000000000000000000000000000000000000000000000000000”,
“coinbase”: “0x3333333333333333333333333333333333333333”,
“alloc”: {}
}

Some explanations of the genesis file
1. Difficulty : How difficult it is to mine a block
2. Gas limit : Upper limit we are to pay the miners to execute op codes and the maximum number of assembler op codes allowed. The higher it is the more complex smart contracts we can run
3. Chain ID : 1 is the main ethereum network, we change it to 15 to init our own private network
4. Alloc : Pre-allocate Ether to an account

Step 4. Create a folder a name this file genesis.json, create another folder genesis folder

Step 5. start gitbash, browse to the directory you have created in step 4.
Note : cd is change directory ls is list directory

Step 6. start geth and point to the directory where we want to save the chaindata and tell geth where it can find and initialise the genesis json file

geth –datadir=./chaindata/ init ./genesis.json

init genesis

7. Start geth now

geth –datadir=./chaindata/

start geth

Your private Ethereum blockchain has started.

Our real self

Have been researching on crypto-currencies the whole week and it seemed to have taken over my life. Been spending almost 4-5 hours everyday monitoring the markets and buying up Ether. It was then which I realized that if I don’t start controlling this, I will end up to be the person I was 3 years ago trading FX. I am an avid follower of economics and finance and the financial world somehow intrigue me. However I wish to state that I am also a gambler at heart and I simply love the thrill of winning at something.

In order for my new found interest to not become an addiction and then I will slowly relegate it to become speculation and gambling, I have decided to take some measures in my life, as I have known that I am a lousy trader, thus I am more suitable for buying and holding. Have yet to firm up on a strategy of how I will be creating this portfolio, but will be buying up Ether on the range of 290-312. As for BTC if I were to be buying it, it will probably be in the range of 4200. So in order to get some order back into my life, I have sort of outsourced the monitoring to WWW.ETHEREUMPRICE.ORG
The website will send an email to me once the price hits my target price. Thus I can maintain my sanity and do not need to keep watch on the markets.

I have development skills and should not let it go to waste in this environment, now I feel is the time for the geeks to rise and to take back control. Hope to one day to be able to build something which is of use to the community, but now I will just be hanging around developer forums to try out what can be done with solidity and smart contracts.

Did a recalibration of my portfolio and I am going to put in some more cash into the crypto-currency market to a maximum of 10%. Did an adaptation of the Permanent portfolio, I swapped out the Govt bonds for REITS for higher returns and also changed the percentage for more growth. Only by knowing our true self can we achieve what we believe. So start believing in what you are doing.

percentage of port