Author: CoryLogics

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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Cory Diary : Property Crazy Question

Let say i have enough budget for either. Apply value investing and quality of life, which should i go ?Property 1 : Condo (New) Region: RCR Area: 850 sqf Price: S$1 M Rental Value: S$3000 Proximity: School, NE MRT/CIRCLE This leave me with heavier loan, small family, less money for equity and need more loan for car. Property 2: HDB Re-Sale (10 yrs) Region: NE Region Area : 1200 sqf Price: S$600K Rental Value: S$3300 Proximity: School, Coffee Shop, Supermarket, NE MRT/LRT This leave me with 400K to do stock investment, larger family, major renovation and a...

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Cory Diary : Dividend Dimension

Why Dividends ?Keep my CEOs on their toes Best proof of returns Income sustainability Year 2005 2006 2007 2008 2009 Cumulative Dividends $2,494 $6,074 $9,365 $12,711 $20,109 Dividends $2,494 $3,580 $3,291 $3,347 $7,398 Year 2010 2011 2012 2013 2014 Cumulative Dividends $31,096 $44,284 $56,880 $85,821 $92,889 Dividends $10,987 $13,188 $12,597 $28,940 $7,068 Q1 2014 has been slow due to divestment of some Reits counters. Of course is still in the earlier part of the year. Building portfolio back up with strong cash companies. I will have to catch up to beat 2013 dividends but not going to lose an...

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Cory : Financial Health Report 2014 April

Personal portfolio heath report using chart gives me a broader perspective view. Over 15 years of record. Cash deposits consist of a number of foreign currencies fixed deposits. Pension fund, oversea stock markets record, any CPF related returns and investment, and property are all excluded. Profits build up over time while moving towards the direction with lesser risk play, growing dividends, larger capital base and industry selection focus. War chest is quite large if we consider the fixed income segments. Structured here refers to Preference/Bond types of products. Fixed returns typically from Fixed Deposits. Equity, Dividends and Returns presented...

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Cory Diary : Contemplating Retirement

Retirement has been in my mind for a long time. If i make that move there is no turning back. Two key concerns in the back of my mind.NET WORTH HURDLEFirst to lose is the monthly income. In addition to that, bonuses which always pull my net worth a mile. Will I be able to stomach possible decrease psychologically ?   Left is the investable net worth chart captured over the years.What can we understand from the annualized return rates compared to investment return rates. SOCIAL HURDLE The connection with...

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Cory Diary : Expenses worth to manage ?

Transportation Cab fare per trip S$10 may amount to S$5000 annually. Bus/MRT maybe 20% of that amount. Makes sense to save always ?  If you have important preparation or meeting that day or next, may want to consider taking cab to give you the edge mentally, time and energy to be prepared to advance your career. Be aware of cab addiction. Saving in Bank S$200K in bank doing nothing ? Normal saving rates 0.05%. 0.55% fixed deposits amount to S$1000. Split it to smaller amounts and draw them for emergency. That’s take very little effort to earn considering internet...

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Cory Diary : Reits 2014

Despite my preference for “fixed income” and being a “landlord”, the leverage mechanism of Reits and Management have been trying this days. Facts – Reits are mainly in downtrend and is hitting home with starts of QE. Interest Rates are not even in the picture yet. Things will be tough this year as well if the strong ones are also doing fund raising. There are still few gems out there but is not a guaranteed profitability net-net. Meaning after Rights, Placements, Dividends and Market Value, are we better off is a big question mark. Managers are securing funding to...

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