Health and Wellness: A Secular Trend

Happy New Year and Welcome 2017! As a semi follow-up to the previous post, let's expand on the health and wellness theme that was discussed. There are two key factors to health and wellness: diet and sports. Ideas for diet would be about nutrition. Stocks could be Nestle, GNC (the supplement company) or maybe Danone. But in this post we focus on the second factor: sports. Or more specifically, … [Read more...]

2016 in Review: Most Unpredictable Year Ever!

2016 has to go down in history as the worst year for forecasters ever. Who would have predicted that the China market would collapse 25% in the first month of the calendar year, after dropping 40% in 2015, then only to rebound by year end? And the Bank of Japan reducing interest rates into negative territory, pulling 20-30% of the global bond market into negative yields. And commodities! Oil from … [Read more...]

Hierarchy of Financial Needs

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Most readers would probably have come across Maslow's famous hierarchy of needs: a pretty neat explanation of how humans should view our existence in terms of our needs. Abraham Maslow, an Amercan psychologist, created this hierarchy as he was trying to understand human nature. The hierarchy of needs is usually produced in a pyramid like the one shown below. The theory goes like this: humans … [Read more...]

Vietnam Property: 5 Bagger! – Part 2

This is the continuation of the previous post on Vietnam Property.We have established the following in the last post:1. Vietnam has a huge and hungry population and is on the growth trajectory to be a developed country. GDP will continue grow at high single digit and property prices at a multiple of that over time. It might be the last Asian Tiger in our lifetimes.2. The development of the Ho Chi … [Read more...]

Vietnam Property: 5 Bagger! – Part 1

Here's an investment opportunity of a lifetime, yes once in a lifetime. If there is one post that you should read in 2016, this is the one. It's about Vietnam - the last Asian Tiger.For most of us in sunny Singapore, Vietnam is probably not on most people's radar. It's not as vibrant as Bangkok and the rest of Thailand, there is no historical site like Angkor Wat or Borobudur, hence not as big a … [Read more...]

SIA Engineering – Part 2

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This is an continuation of the previous post on SIA Engineering (SIAEC). As described in the last post, SIA Engineering has a solid business model that helps global airlines maintain their fleet. SIAEC's business moat is built on strong branding, economies of scale, efficiency which churns out high free cashflow and a high return on equity (ROE). It's also worth noting that the business is … [Read more...]

SIA Engineering – Part 1

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SIA Engineering (SIAEC) is one of the strong blue chips name in Singapore to buy and hold for dividends. It has also made regular appearance in the annual dividend stock list posted on this site in almost every year since 2009. The long term stock chart below shows that it has compounded its intrinsic value, albeit with some cyclicality while paying annual dividends for the past 14 years (based on … [Read more...]

2016 High Dividend List – Singapore, US, Australia

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It's out! The second section of this year's list threw out a few interesting names in the tech, finance and other sectors and there's an interesting discussion point that would serve to transform fundamentally the way some of us might want to invest! Yes, it's a big deal. First, here's the list: 2016 Dividend List - Part 2 Again, since the list gone global, Singapore names were relegated. … [Read more...]

2016 High Dividend List – Singapore, Europe, US

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The annual dividend list is out! As per last year, restricting the list to just Singapore can only yield a handful of names, hence it's more worthwhile to see things from a global perspective. The criteria for the screen had not been change for years except minor tweaks. Here's the first 20 names: 2016 Dividend List - Part 1 There are two Singapore names in the list: Yangzijiang and UMS. … [Read more...]

Great Scot! Brexit?

It's been three weeks into Brexit and the financial world now think that maybe it was never an issue at all? US S&P is back near all time high, the FTSE 100 bounced back with a vengeance and hit its high for 2016. Even the STI is now close to 3,000. Brexit? Nah. Let's Move On! That's market short-termism for you. For most people, it was actually more disappointing that in the same week, … [Read more...]

Teach Less Learn More – Lessons Learnt Part 3

This is the last instalment about Singapore's Teach Less Learn More Education Philosophy, its trials and tribulations and the improvements needed. Links to the earlier parts below: Part 1 Part 2 We discussed how Singapore's education system should nurture the love for learning and also focus on collaboration not competition. Google and the great companies of the world collaborate to bring … [Read more...]

Teach Less Learn More – Lessons Learnt Part 2

This is a follow-up post on Teach Less Learn More - Part 1. Teach Less Learn More (TLLM) was touted as the frontier philosophy in Singapore's education system to make learning holistic, bringing learning from inside the classroom to hands-on experiences, learning by discovery and less rote memorizing. Unfortunately, the implementation left much to be desired. Today, after years of TLLM, we are … [Read more...]

Teach Less Learn More – Lessons Learnt Part 1

Despite this being an investment blog, education posts written in 2011 and there after had delivered one of the highest pageviews as a result of our obsessively competitive education system and the interest it generated. There had been various changes since then: it was announced that PSLE would move away from the three digit scoring system, schools would be more holistic building on the TLLM … [Read more...]

Singtel bought out 8% for S$200m

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Dear readers, it is a pleasure to make a splendid announcement today. Singtel has bought over this site for S$200m and all readers whom liked us on Facebook will get an equal share of the profits i.e. around SGD 500,000 per person. Woohoo!Just kidding. Today is 1st of April after all.Today we would like to share insights into some of the stocks that were discussed previously here. One of which was … [Read more...]

Overseas Education Ltd – Part 2

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This is a continuation from the previous post. A quick recap: Overseas Education (OEL) operates one of the largest international schools in Singapore and was listed on SGX in 2013. The stock has since collapsed below its IPO price due to the three issues discussed previously. It move from Orchard to Pasir Ris, a less prestigious location and lost 20% of its enrolment. Competition has … [Read more...]

Overseas Education Ltd – Part 1

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Overseas Education Ltd (Bloomberg Ticker: OEL SP) is an intriguing small cap stock in Singapore listed in 2013 that almost doubled but then crashed spectacularly in the last 1.5 years. It now trades at 12% free cashflow yield, 11x PE and pays a 4% dividend (likely to be more going forward) and earnings are stable and growing barring Singapore's demise (i.e. our beloved little red dot one day … [Read more...]

Negative interest rates, skyrocketing asset prices!

This is a continuation of the previous post.Inflation had always been around, so the nominal zero that we saw was never really zero. Inflation of 3% meant that money depreciated value 3% every year, we just didn't see it so we think it's not there. When inflation is 3% and interest rate is 2%, effectively money in the bank is still being burnt. After the Global Financial Crisis (GFC), nominal … [Read more...]

Welcome to the World Of Negative Interest Rates!

The world is going to be a very different place. Since time immemorial, interest rate had been positive. This was very logical, at least to humanity. If we lend someone money, we are expected to be paid interest and at the end of the loan, we would get back the principal. No, that doesn't work anymore. The new rule is if we lend someone very, very credible some money, we would pay this person … [Read more...]

Lessons Learnt: Sembmarine and Keppel

Our beloved oil rig manufacturers had suffered a catastrophic decline in the last 18 to 24 months. Keppel fell from $10 to $4.8, a 52% drop and Sembcorp Marine collapsed from $4.5 to $1.5. a 66% free fall. Sembmarine's parent Sembcorp Industries didn't do that well either, falling from $5 to $2.2, again a more than 50% decline from its peak. All three stocks now trade below book, with single digit … [Read more...]

Happy New Year! Let’s talk about REAL Investing!

Happy New Year folks, it's 2016. This year is meaningful in a way since this site started out in 2006. So, a decade just whizzed by with some intermittent writing, some charts and lots of thinking and oh yes, thanks for support this site for the past 10 years! It's been great so far, another 40 more years to go! We are on track to at least match Berkshire or SG50, and it so happened that Berkshire … [Read more...]