Written by Rey Ho


What is one thing on Mr Squirrel’s mind months before the bitter cold of winter?

Acorns – lots and lots of acorns.

As a huge fan of this nut, he would scamper through the woods, searching and stashing away as many acorns as he could find. This is especially pertinent during springtime.

The hot summer months won’t slow him down either. He makes it a point to continue looking for acorns – day in and day out. Even in the cooler days of autumn, Mr Squirrel still dashes around, searching for his favourite snack. He just won’t stop gathering acorns. It is evident he has only one goal in mind – to accumulate as many acorns as possible. Everyday.

His neighbours think he is nuts and many laughed at him. Some scorned him. They simply cannot make sense of what Mr Squirrel is doing, and why.

Yet, when winter arrives, Mr Squirrel is one of the few, if not the only one, who is never short of food. His relentless gathering of acorns is a saving grace during the months when food is scarce. Acorns that aren’t consumed become seedlings that eventually provide Mr Squirrel with even more acorns when they grow into oak trees. The daily repetition of this seemingly mindless process ensures a healthy supply of acorns for Mr Squirrel.

So who’d have the last laugh?

The wisdom lies in the constant accumulation of acorns. Mr Squirrel would first determine what he needs (acorns), and then verify that they are of good quality (fresh and ripe). Once he has ascertained that both criteria are met, he would never stop amassing it – regardless of whether he has an abundance or a lack of acorns. He does so because he knows he will eventually need it.

Let’s draw parallels between Mr Squirrel’s wisdom and our investment philosophy.

Let’s suppose that you have done your research and concluded that a particular asset is suitable for your portfolio. You then decide to invest $1,000 every year from 2007 to 2016 in it, regardless of its price (see table below). This is akin to what Mr Squirrel does daily regardless of spring, summer or autumn.

This strategy is known as Dollar Cost Averaging (DCA), which simply means that you invest in an asset the same number of dollars each month, quarter, or even year. Hence, you buy more units when the price of the fund is low than when it is high, and vice versa.

As of October 2016, the investment operation described above would have yielded you a total of 3,938.6 units, and a current value of $12,170.27. This is more than your capital invested of $10,000.



If you had focused only on the value of your investments in 2009 and 2012, you might have been tempted to stop investing as you would have deemed that your investment was making a loss. You will then miss out on opportunities during those years to accumulate units at value. In fact, you only have the chance to buy more of something good and of value during times when the price drops. And when the price rebounds, you will be able to profit significantly from it.


You would have grabbed some of these opportunities and benefitted by activating the Value Cost Averaging (VCA) fund. This is a sum of money that we encourage you to always keep aside that will allow you the chance to invest in more units of an investment when its price has dropped. We have utilised this fund for investments into China, oil and gold, just to name a few, over the last few years.

However, we think it is of even greater importance to implement the DCA strategy that granted Mr Squirrel his success. This incessant stacking up of units of an asset will deliver the results for you when the price of the asset rises substantially eventually.

By doing so, you are doing what investment guru Warren Buffett advocates: Successful investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time.

We strongly recommend that you meet up with your consultant to put in place the strategies described above.

Once they are in place, you have the necessary building blocks that will allow you to reap rewards into the future. You can rest assured that Unicorn is staying vigilant and forward-looking, especially during times of crises. We promise to keep you updated regularly as we walk this journey together.

Disclaimers and Important Notice

The information herein is published by Unicorn Financial Solutions Pte Ltd. (“Unicorn”) and is for information only. This publication is intended for Unicorn and its clients or prospective clients to whom it has been delivered and may not be reproduced, transmitted or communicated to any other person without the prior written permission of Unicorn. This publication is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter into any transaction; nor is it calculated to invite, nor does it permit the making of offers to the public to subscribe to or enter into, for cash or other consideration, any transaction, and should not be viewed as such. This publication is not intended to provide, and should not be relied upon for accounting, legal or tax advice or investment recommendations and is not to be taken in substitution for the exercise of judgment by the reader, who should obtain separate legal or financial advice. The information and opinions contained in this publication has been obtained from sources believed to be reliable but Unicorn does not makes any representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose. Opinions and estimates are subject to change without notice. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment. Unicorn accepts no liability whatsoever for any direct indirect or consequential losses or damages arising from or in connection with the use or reliance of this publication or its contents. The information herein is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. If this publication has been distributed by electronic transmission, such as e-mail, then such transmission cannot be guaranteed to be secure or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The sender therefore does not accept liability for any errors or omissions in the contents of this publication, which may arise as a result of electronic transmission.

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