Little Book On Wealth

Designed For Total Beginners

Written By: Meng Teck

This Is Not A Motivational

Book.
No. No. No. This will not be just another book where the
expert boasts about his results or tell you how great he is.
I am an educator & I have designed this book specifically
for people who are just starting out to learn about
investing. This little book will contain the important theories
& strategies needed to understand how to generate massive
wealth sustainably while, at the same time, allows you to enjoy
life without the stress associated with generating such income.
It will not be a long book as I want to keep it sweet & simple
by giving you few key ideas that will instantly open your
investment eyes & allows you to be a whole lot wealthier.
I know this is a huge claim but I promise you by the
time you finish reading this book, youll know, making
millions annually, is really not such a big deal.
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1. Investing can make you very very rich.

Secret of The Rich

How do so many people get so wealthy? Is it because they are
born smarter & more talented? Is it because they work extra
hard compared to other people? Maybe. However, heres the
secret. You do not need to be smart or talented or hardworking
(Thank God!) in order to be rich. The secret is in making
money work for you. (Which is not so much of a secret
anymore)
I am sure you have heard this a million times but have you
actually heard how to do it specifically? Im gonna prove it to
you in a moment.
Imagine this..
Lets say, for every dollar you have, I will give you another
dollar after a day?. What will happen after a day? Obviously,
now you will have 2 dollars.

It is the seeds that was planted

by our forefathers that we now
enjoy its fruits.

Suppose you do not use the dollar that you earn, and I extend
the same oer to you. What will you have the next day? For
every dollar you have, you will get another one, since you now
have 2 dollars, then you will get another 2 dollars and now you
have 4 dollars in total.
Simple, isnt it?
Heres the Big Idea, suppose you do this continuously for a
month, guess how much money youll have?
Just give a rough figure. You dont need to go out & reach for
your calculator.

Revelation No. 1 = Power Of Compound Interest

I know this is hard to believe but this is how much you will
have

More than 1 Billion.

(Skeptical? You can reach for that calculator now)
I cant believe it at first too. How can one dollar turn into a
billion in such a small amount of time.
How come? Well, its maths.
Day One - $1
Day Two - $1+$1 = $2
Day Three - $2 + $2 = $4
Day Four - $4 + $4 = $8
Day Five - $8 + $8 = $16
..
Day Ten - $ 256 + $256 = $512
..
Day Twenty - $262,144 + $262,144 = $524,288
..
Day Thirty - $536,870,912 + $536,870,912 = $1,073,741,824

Formula Of Wealth

Wealth =
A = Capital
R = Return on Investment
n = No of times compounded.

Basically, the theory goes that, if your earning, which is the

dollar that is given to you, increases with your capital,
which is the 1 dollar that you start with. Then, as you have
more capital, you will earn more. Eventually, these earnings
become so big that your net worth will become very big.

Imagine if you have parked your car on a downhill road and

forgotten to pull the handbrake, your car will start to move
downwards. You will notice that the speed is ever increasing
as it moves down the hill. Imagine that speed as your
income. That is what happens to your money when you enter
the world of investing.

The more money you have, the more you will

earn
The rich understand this. This is why, the rich will get richer
and the income gap continues to widen and the middle class
become poor in comparison.
It is a very simple & easy concept. Make money work for you.
Generate income, save them, invest, then from the income you
generate from investment, re-invest them back. Thats how you
turbocharge your way to a million dollar mark.

So you say I could become a billionaire in a month?

Nope. Why?
I am going to give you very real life example here to give you a
good idea of how long does it take to actually become a
millionaire.
Well, in reality, you dont get such a nice deal (You wouldnt
think that the deal earlier actually exists, do you?)
As a benchmark, the worlds most famous investor & also top 3
richest person on earth is Warren Buett and he has made his
wealth, around $70B at the time of writing, mainly through
stock picking. How much is he getting out of his capital?
In the earlier example, we say that for every one dollar you
have, you will get another dollar in a day.

Warren Buett

Warren Buett, is able to find deals so good that, for every

dollar, he will get 20 cents per year & he has been able to
do this consistently for more than 50 years. That is,
turning every 1 dollar 50 years ago, into $9100. If you can do
that, you can turn a capital of $1,000 into $9.1 million in 50
years without adding anymore capital.
Using the formula of wealth earlier:

= 9,100,000.00
Thats the magic of investing.
(I know I would lose some of you here, 50 years isnt sexy, but
sexy is not what this book is meant to be, this book is meant to
be the honest guide for proper investing for people like you
and me.)
Okay, I get it, according to the formula, I can become very
rich if I can get 20 cent per year, consistently out of every
dollar I invest, it will only take some time.

Side Note: The S&P 500 is an

American stock market index
(more on this in page 7) based on
the market capitalisation of 500
large companies having common
stock listed on the two largest
stock market in America.

However, that 20 cent per year is Warren Buetts benchmark,

(that is remarkable considering the S&P 500 average out to be
10% per annum) how can normal people like me become a
millionaire?
Well, normal people like us, do not just invest 1,000 and then
forget it. Normal people like us will invest consistently and
continue to put our savings into our investment so that we can
have a better future. Yes, normal people, without proper
investing training & experience will not be able to generate
that kind of return. So what can normal people like us do?

2. Becoming a Millionaire is easy & anyone

can do it.
Have you heard of fixed deposit?
Its basically like lending money to the bank and they will pay
you interest annually.
Well, you can get a return close to 4% or more with little or no
risk. (Go ask your bank!)
Is it possible if you just invest $850 per month? Why?
Well, if you can do this, in 40 years time, you can become a
millionaire.
(How do I know that? Well, I use this cool app made by MSN below.
Check it out yourself)

(Link : http://www.msn.com/en-us/money/tools/timevalueofmoney )

3. You can easily be more than a millionaire

if you are willing to put in some effort and
take some risk.

What if I tell you, there is a way that anyone can achieve

satisfactory return and become a millionaire in a
relatively short period?
What if I tell you, you dont even need to have much
financial knowledge to do that and everyone has access to
this thing?
What if I tell you, you dont even have to do much to
achieve this?
Sounds too good to be true?
Well, initially I thought so too, until one day, I come across this
thing called, Exchange Traded Fund (ETF).
Sounds high tech, right? ETF is actually a pretty simple
concept. An ETF can help you track certain index. For
example, the STI Index or the KLSE Index.
(OMG, whats an Index?)
An Index is basically a pool of investment units of a
certain kind. For example, FTSE Bursa Malaysia KLCI
index is based on top 30 companies in Malaysia based on
market capitalisation that meets free float liquidity
requirements, providing investors a highly investable and
tradable index. However, you cant buy the index. What you
can buy, is the ETF, which essentially is a fund that tracks the
index.
FBM KLCI ETF (the Fund) tracks the performance of FTSE
Bursa Malaysia KLCI (the Index). When you buy an ETF,
your earnings depend on the index.
Complicated stus?
Simply put, when you buy an ETF that tracks a country,
like FTSE Bursa Malaysia, you are essentially buying
the economy. So, if the economy of the country is well,
your investment should do well too.
How has the economy been doing?
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Prices grew from roughly 2.2k from

year 2005 to 3.5k in year 2015.
Using the formula below, this
translate into an annual increase of
4.75%

Singapore (Source: https://sg.finance.yahoo.com/q/bc?s=

%5ESTI&t=my&l=on&z=l&q=l&c= )
Over the past 10 years, the market has returned,
(Reverse engineering the formula of wealth)
= 1.0475

4.75% return per annum, excluding dividend!

Prices grew from roughly 900 from

year 2005 to 1747.52 in year 2015.
Using the formula below, this
translate into an annual increase of
6.86%

Malaysia (Source: http://finance.yahoo.com/echarts?s=^KLSE

+Interactive#)
Over the past 10 years, the market has returned,
= 1.0686

6.86% per annum, excluding dividend!

(Note: This is not to say that Malaysias economy is doing better than
Singapore, the stock market is just a rough measure)

What does this mean to you?

You can be very rich, very fast.

If you could save $1,000 per

month & invest & compound it
at this rate, you can be a
millionaire in less than 30
years.

(Source : http://www.msn.com/en-us/money/tools/
timevalueofmoney)
Though no one can say for certain that the economy will do
better, it is likely to trend up.
Why?
It is because economy has got a lot to do with productivity.
The higher is our productivity, the better is our
economy. As long as there is constant innovation &
improvement in the way we run businesses, productivity is
going to increase & the economy will be well.
The question is,
Do you think the economy of your country will do better in
the future?
If you think so, you can buy the ETF.

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Thats it. Youve just learnt the idiots way to make money
in the share market and become a Millionaire with very
little to no risk in a reasonable period. Becoming a
millionaire is that simple. Youve just learned what 99% of
the population dont know.

Whats the next step?

Sure, a return of 4.75 - 6.86% per year is good enough for most
people, but it sure isnt going to make you massively wealthy
anytime soon. However, a return of 15 - 25% per year would.

With a return of 20% per year, it will only take 15 years to

make you a millionaire.

If you continue to invest at such return for another 15 years,

you can get really really rich. ( $23 Million Rich)
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So how do you do that? How do you generate 15-25% return

consistently?
Surely, there will be more work than this, it is not dicult but
the book is getting lengthy and I will leave that for the future.

But now, youll be really skeptical? If its so

easy to be rich.Why is it that most people
are still struggling?
1.

Most people do not know this. They know they should

make money work for them only theoretically but not with
the formula Ive given you and also the systematic way to do
it.

2.

Most people do not invest but rather gamble in the

share market betting whether tomorrows market will go
up or down. Thats the best way to get broke really quick.
Theres a method to make money systematically in the share
market but more on this in the future.

3. Most people just dont care. Not everyone is as practical

as you. Most people (especially the Gen Y & X) dont care
about money & they have this You Only Live Once
Mentality (YOLO). Probably theyve seen people being
scammed before and investing got a bad reputation in
their mind and hence, they stayed away from it.
(I know you still cant believe this, take some time to digest it)
So, I keep saying Ill show you more in the future. What is it
about? Well, Ive created a series of really cool videos to
kickstart your journey in investing. In order to make more
money in the share market, there are several simple steps to
deploy in order to achieve that kind of return. I have taught
these in my paid seminars & found that it is not dicult for
people, regardless of their academic achievements, to replicate.
But heres the thing.
I do not want to throw out my videos, spam people asking
them to watch it and make them so cheap. I will only be
sending my videos to people who are genuinely
interested. You have read the eBook thus far, you must be
interested. The first video will be a quick 3 minutes vid
explaining what are stocks, if you like, you can get them
here. <=== (Click it)
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I hope you enjoyed reading this book as much as Ive enjoyed

making it for you. If you like what youve learnt here,
youre going to love my video. Hope to see you soon.
Thank you.

About the author.

Meng Teck is known as the youngest, wildest & highly
sought after Value Investing Master Trainer in Asia. He
is famous for helping his clients build sustainable wealth
with peace of mind & confidence using simple &
effective investing techniques without the need to learn
how to read complicated chart or constantly chase hot tips.
Over the years, he has conducted multiple training
seminars & webinars to help his clients achieve total
understanding of the investing philosophy as well as providing
real life case studies that his clients can still benefit in.

He is routinely invited as a guest speaker in other

platforms, like universities (Universiti Teknologi Malaysia) and
membership sites, a more recent one you might have heard of
is a personal finance site, KCLau.com .
This book is dedicated to people who will not settle for less than what
they can be, do, share & give. To the people who will not bow down to
the norm or to the social class. To the ones who disregards any limitation
& make their life, truly theirs .
P.S : If you like this book & would like to share it with your
friends, get them to register at www.savwee.com, and I will
send them a copy.

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