Francis Hoan, Director of Financial Advisory of Financial Alliance Pte Ltd, has over 37 years of financial experience. His investment journey began in 1987 with Black Monday, a pivotal moment in his career. This market crash taught him valuable lessons about volatility. “The market can crash over 30% and recover 57% in two days,” he reflects, emphasizing the market’s unpredictability.
Highlights
From Black Monday to the Dot-Com Bubble
In 2000, during the dot-com bubble, Hoan ventured into unit trusts. He invested in tech companies but held on even as valuations dropped. Unfortunately, some unit trusts never recovered, teaching him to let go of failing investments and move forward.
Learning from Failure and Success
Hoan’s first startup investment was in a Japanese Forex company in 2004. It resulted in a complete loss, a setback he would not forget. However, this experience did not deter him from pursuing future investments. In March 2020, during the pandemic’s market downturn, Hoan took a contrarian approach. “While everyone was selling, I invested,” he explains, highlighting his willingness to take calculated risks.
Six months later, the market bounced back, and he profited. This success reinforced his belief in strategic investment timing.
Investing in Niche Technology Startups
Today, Hoan focuses on investing in tech startups that address niche problems. “I see opportunities where there’s a significant pain point and a startup solution,” he notes. His strategy emphasizes areas with growth potential, particularly in the tech sector.
Strategic Investment Approach
Hoan ensures financial security before investing. He pays off his home, maintains an emergency fund, and allocates vacation funds. “Once these are covered, I invest the rest,” he says. His portfolio demonstrates his commitment to investment portfolio diversification strategies. It includes 50% in unit trusts, 30% in fixed income, 10-15% in stocks, and 10-15% in startups.
Investment portfolio diversification strategies have been crucial to Hoan’s success. By spreading investments across different assets, he effectively balances growth and security.
Involvement and Network Support
Hoan’s involvement with startups varies based on his expertise. He leverages his extensive network to connect startups with industry experts. “I can contribute by linking startups to contacts with specific expertise,” he shares. This highlights the importance of mentorship and connections in fostering success within the startup ecosystem.
Insights and Takeaways
In conclusion, Francis Hoan’s journey highlights the importance of learning from successes and failures. His strategic approach offers valuable insights for aspiring investors navigating the dynamic startup ecosystem. Hoan balances risk and reward in the ever-evolving investment world by focusing on investment portfolio diversification strategies.
