Author: CoryLogics

Cory Diary : STI Index

If you have yet notice, STI Index ended this week 3324.39. STI Jan 1st Jan’14 was 3167.430. That’s mean about 5% returns. If we include roughly 3% dividends conservatively, that’s 8% for 2014. This is despite of Current Oil Bear, Interest Rates going up, Property Curbs and Commodity Crash.Quite amazing huh ? Do your math and tell me am I right ? So why ? why ? why ? why ?Maybe is the Singapore Story or thanks to the liquidity. How many of us can beat that on annualized basis ? Are your Unit Trusts beating this values. What...

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Cory Diary : Oil Price – Fact Check

Read a few posts and articles on the risk of low oil price. Frankly I am kind of lost. Isn’t this will boost economy ? How the world did experts able to “back”trapolate that logic of known condition that economy in recession will have reduced oil consumption thus lower oil price. Therefore in reverse, the current low oil price climate will result in poor economic conditions ? Let’s get back to the fact. Oil price is low today because there is ample supply not because there is lesser demand. That’s A WORLD of DIFFERENCE ! We have more purchasing...

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Cory Diary: 2014 Interim Review

Interim Financial Report My Investment Portfolio is made up of Equities, Fixed Deposit, Preference Shares, Bonds and Gold. Spread across various currencies according to their risks/returns which helps me ride over market turbulence with peace of mind.Equity ~ over 20 counters of Blue, Reits, SME and PS of various weightage. Currently this year returns are to better Equity Dividends. FDs help some. Cash level is relatively high for opportunities and because as i am still working which afford me to have lower investment returns. Pension, Property, Insurance and CPF are Bonus. AUD and GOLD AUD$ weakened 2-3% roughly. After...

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Cory Diary: My Home

Something strikes me today after reading AK’s comment in his post on singapore property. If I am to buy a home say S$1M, and a year later the price comes down by S$100K. Will I be sad ? Ofcourse i will, silly ! But sad due to what is the critical issue here. Well i am sad because my home value drops 100k. But why should i when is a place to stay other than being sad for paying 100K more. Someone will pay more someone will pay less in any trade. If i am to sell it 100k...

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Cory Diary: How much is consider too much cash for rotting?

A friend pose this interesting question to me over my concern with inflation eating into our hard earn money. To point out how serious the problem is, i have it structured below. Let’s think of a scenario. I have idle cash of $1M. Considering inflation of 3%, that’s 30K loss annually. We know how rich we are is how much we save. Using this basis, if I save 30K annually from my monthly earning, i am just working my arse off just to level up my networth. The curse of being a millionaire ? Let’s go further. For those...

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Cory Diary: How much is considered too much cash for rotting?

A friend pose this interesting question to me over my concern with inflation eating into our hard earn money. To point out how serious the problem is, i have it structured below. Let’s think of a scenario. I have idle cash of $1M. Considering inflation of 3%, that’s 30K loss annually. We know how rich we are is how much we save. Using this basis, if I save 30K annually from my monthly earning, i am just working my arse off just to level up my networth. The curse of being a millionaire ? Let’s go further. For those...

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Cory Diary : STI ETF and Nikko

STI ETF As of Friday, 22 Aug 2014 (1) the NAV per unit is S$3.3515 (2) the total number of units in issue is 132,500,000 STI ETF DIVIDEND 07 Aug 2014 SGD 0.045 ONE-TIER TAX STI ETF DIVIDEND 04 Feb 2014 SGD 0.043 ONE-TIER TAX STI ETF DIVIDEND 15 Aug 2013 SGD 0.045 ONE-TIER TAX STI ETF DIVIDEND 01 Feb 2013 SGD 0.04 ONE-TIER TAX Last Trade: $3.36 NIKKO ASSET MANAGEMENT ASIA LIMITED As of 21 August 2014 (1) the NTA per unit is S$ 3.4040 (2) the total number of units in issue is 37,846,400 NIKKO AM SINGAPORE...

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Cory Diary : CPF Minimum Sum 155K

The government has been increasing the minimum sum for years. And based on my earlier rough estimation is certainly moving faster than the inflation. My logic is that there is a growth phase to close the gap as I believe the current minimum sum lags significantly behind the minimum needs for retirement. Once this is met or politically so, i would expects the min. sum growth to follow inflation trend.This is not hard to deduce considering a million dollar without investment will easily be expended in 15 years in my earlier article. So even with 2.5%-4% returns, the minimum...

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Cory Diary : Retirement Amount

Retirement AmountOne of the misconception about saving is how long it can last once we retired. Assuming no investment and just plain saving bank. See Table 1.   Table 1 : Without inflation adjustment Above is a simulation without inflation. How will this impact me ? Assuming 3.5% inflation rate, the monthly absolute amount increases as Table 2.   Table 2 : With inflation adjusted So how long can my S$1M last actually ? See Table 3.   Just  below 16 years. After that i am on my own … For those who are curious on whatif Inflation hits...

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Cory Diary : Currency Risk

Strength of Currency drives purchasing power. Determines where, what and how to park and invest my money.What’s the use of doubling my S$ denominated Stocks if Singapore currency devalue by half. Most likely I will see super inflation like Venezuela with soaring prices. What happen overnight we have a watershed election and Opposition won the day. Will I still see Singapore progress or sustainability as normal ? The risk is there but am i ready ? It will be a serious mistake to say i have S$100K today and still same number after, so there is no loss. The...

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Cory Diary : Net Worth Metrics

Watching World Cup Greece V Columbia right now and decided to write this article in parallel. Hopefully i can wake up for the next two morning matches as well. In summary, next few weeks will be challenging. :)From my earlier Retirement titled article which has my net worth chart, i will be doing an update here. Since then, i have invested in RMB FD, bought some bonds and did a major re-balance in my Reits Portfolio. I have also increase my Telecom and Banking exposures. Passive income has caught up to last year 50% mark.   Key Metrics First...

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Cory Diary : No Earning Money is Losing Money

Continued from my earlier Damn to Saver article, with the continued QE though tapered and expectation of long term low interest rates, high inflation will continue to stay with us one way or the other. Nevermind about the statistics from any governments. Compounded 2.5% inflation across 5 years, Years Principal Inflation Rate Purchasing Power Principal Reduction 5 $10,000 -2.50% $8,811 -11.89% Compounded 4% inflation across 5 years, Years Principal Inflation Rate Purchasing Power Principal Reduction 5 $10,000 -4.00% $8,154 -18.46% what this means are you need to deduct probably 20% profits you made from the past 5 years just to...

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Cory Diary : Investment in STI Index

Year 1988 1989 … 2013 Annual Capital Injected $6,000 $6,300 … $20,318 Years Invested till 2013 ended 26 25 … 1 Capital Value $20,269 $17,339 $18,714 XIRR 3.19% Today my mind Experiment is Simple. I do a capital injection annually into STI Index starting from year 1988. Injected amount grows at 5% annually.In Year 1988, i injected 6K which grew to $20,269 after 26 years. In start of year 2013, i injected $20,318 which register a loss to $18,714 within the year. When i total up all my investments, the Compound return is 3.19% over 26 years. This implied...

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Cory Diary : Damn to the Saver with Fixed Deposit

There are people who are believers of Saving and Fixed deposit. Here’s the Math for them.Assuming I strike lottery $1M dollar on 1st Year. The next year I start to lose $29,100 due to loss of purchasing power. Many people cannot even save that amount of money to compensate for the yearly loss. Year Principal Fixed Deposit Inflation Effective Purchasing $ 1 $1,000,000 1.00% 4.00% -3.00% $970,000 2 $1,000,000 1.00% 4.00% -3.00% $940,900 19 $1,000,000 1.00% 4.00% -3.00% $560,613 20 $1,000,000 1.00% 4.00% -3.00% $543,794 Continue my way till Year 19th. Original $1M left with $560,613. On the Year...

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Cory Diary : A Proper Business Behind

Have been a little slow in conceptualizing my Investment Strategy this year. It has change with wisdom and climate over the years. Yes i do review my plan often and usually i could identify a theme behind it.Here i go –  Business focus on sustainability, reasonable dividends and little debts.  A little emphasis on some growth will be nice. Profitability is required and FCF a checking step. Dividend a must. ROE level should be sufficient. Notice i did not put exact figures behind it. I realized this is an Art rather than a Science. Niche product or services will...

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