TheFinance.sg » Createwealth8888

Olam: Sold $2.75, ROC 8.5% and 7.0%

Createwealth8888 — Wed, 08 Feb 2012 14:14:00 +0000

Stuck for too long!

Stuffing feathers for a bigger pillow.

Round 10: ROC 8.5%, 236 days, B $2.52 S $2.75

Round 9: ROC 7.0%, 228 days, B $2.56 S $2.75
Round 8: ROC 20.8%, 65 days, B $2.41 S $2.93

Round 7: ROC 15.8%, 311 days, B $2.48 S $2.89

Round 6: ROC 10.2%, 8 days, B $2.39 S $2.65…

Your First $100K realized profit from the stock market? – (3)

Createwealth8888 — Tue, 07 Feb 2012 00:28:00 +0000

Read? Your First $100K realized profit from the stock market? – (2)

Did you became the Investment Eagle and fly high?

The Story of the Bald Eagle continues after 40 years later ….

40 years later, the old Eagle will re-make itself so it can fly high again for next 30 years. This is incredible!
The bald eagle has the longest life-span of its’ species. It can live up to 70 years. But to reach this age, the eagle must make a hard decision in its’ 40′s.

Its’ long and flexible talons can no longer grab prey which serves as food.

Its’ long and sharp beak becomes bent.

Its’ old-aged and heavy wings, due to their thick feathers, become stuck to its’ chest and make it difficult to fly.

Then, the eagle is left with only two options: die or go through a painful process of change which lasts 150 days.

…

Investing Made Simple by Uncle8888 (31)

Createwealth8888 — Sat, 04 Feb 2012 08:26:00 +0000

Read? Investing Made Simple by Uncle8888 (30)

Read? Why it is easier to become rich from property and not stocks? (3)

Uncle8888 is NOT 股神(God of Stocks)

Uncle8888 is NOT faithful
Uncle8888 loves to keep mistresses!

As of today, he has joys, fun and saddness with a total of 56 different types of mistresses. 30% of mistresses finally ate his money. Many of them have no mercy and took away lots of his money. Two notorious bad women took away every single cent from him and then they disppeared forever and leaving behind two pieces of toilet papers to remind him of the shit that he has done.

Think of the two questions again and find your own answer to them…

Why it is easier to become rich from property and not stocks? (3)

Createwealth8888 — Sat, 04 Feb 2012 00:05:00 +0000

Read? Why it is easier to become rich from property and not stocks? (2)

Are stocks right for you?

I don’t know about you; but I know that stocks are right for me. Why?

I heard them from my own ears and saw them in my own eyes. How not to believe that stocks are not right for me?

Read? The truths behind the ideas of making money in the stock market.

Now that I become the “Loa Jiao” and let me tell you my experience with stocks:

The total realized profits from 94 rounds of Kep Corp short-term trading and total stock dividends collected from Kep Corp over the past 10 years (2001-2011) are more than enough to pay for my two older children’s 4-year university education plus all their personal accountable living expenses.

Are you right for stocks?

Stocks may be right for you; but are you right for stocks?

This …

Why it is easier to become rich from property and not stocks? (2)

Createwealth8888 — Thu, 02 Feb 2012 07:31:00 +0000

Read? Why it is easier to become rich from property and not stocks?

Act of Partial Divestment in stocks

In properties, you can’t do partial divestment but you are comforted by the monthly cash flow from rentals and it helps to keep you in good spirit and wait for the right moment to come. You can wait for real long time for it to come.

But, in stocks, the ease of partial divestment and many right moments seem to come more often than expected and it will induce you to sell to comfort your soul. This very Act of Partial Divestment may be stopping many of us in becoming rich in stocks.

Ask Peter Lim.

How did he become Billioniare? Did he sell his stake in Wilmar when it was 2-3 bagger?

Want to be rich in stocks? Think again. Is this Act sinful in becoming rich in stocks?

Why it is easier to become rich from property and not stocks?

Createwealth8888 — Mon, 30 Jan 2012 20:36:00 +0000

We are more likely to hear people becoming rich in properties than in stocks. Read and understand the wisdom from Soros and you will know why?

“It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” ~ George Soros

Risk and Substantial Stake

Even you are good at picking a few multi-baggers in your portfolio; do you have substantial stake in these multi-baggers to become rich?

Do you dare to take up significant risk to build up high stake in these high growth stocks which may be your potential multi-baggers to become rich? How many people have steel balls?

In property investing, the story is different, you don’t need to have steel ball to play because once you are in it. You already put up substantial stake without even noticing it and even …

Passive income ONLY – You can’t really get rich with it!

Createwealth8888 — Sun, 29 Jan 2012 08:25:00 +0000

Read? Does Your Account Size Matter? – Part 3

You can’t really get rich with it!

When your account size is not extremely large, you can’t get rich with passive income ONLY. Passive income from property rentals, stock dividends or bond coupons. However, it may be possible; but it will take decades of doing it right to become rich.

To Get Rich = Getting more and more Total Return

Total Return = Capital Gain + Passive Income.

Passive income is generated from the “utility” of property, stock or bond. It is an expected form of return from this “utility”.

So where does Capital Gain come from?

The Greater Fool theory!

Your capital gain must come from ”Greater Fool” in the market who will hand over part of their hard earned money from their jobs to you in the form of speculation. The large Capital Gain in the market must come from many Greater …

10% dividend yield for 10 years? Fact or Fiction? (2)

Createwealth8888 — Thu, 26 Jan 2012 17:45:00 +0000

Read? 10% dividend yield for 10 years? Fact or Fiction?

Kep Corp FY 2011 full year dividend = $0.17 + $0.26 = $0.43 after bonus issue.

Highest dividend yield = 32.7%
Average dividend yield = 16.6%

High yield for a blue chip is not a fiction!

Kep Corp FY 2011 Report Card

Createwealth8888 — Thu, 26 Jan 2012 17:23:00 +0000

1. Net profit improved 14% to S$1,491 million, compared to FY 2010′s S$1,307 million (restated).

2. Earnings Per Share of 83.8 cents, up 13% from FY 2010′s 74.3 cents (restated).

3. ROE of 21.6%.

4. Economic Value Added increased from S$964 million to S$1,024 million.

5. Total dividend increased to 43.0 cents per share, comprising a final dividend of 26.0 cents and an interim dividend of 17.0 cents already paid.

6. Net gearing of 0.17x…

Entering the Year of Dragon!

Createwealth8888 — Mon, 23 Jan 2012 10:31:00 +0000

Just For Thinking ….

Your investing goals for the Year of Dragon!

Property, Stocks, Bonds, Gold or Silver?

It doesn’t really matters!

It is not any particular investment instrument that brings us more wealth in the Year of Dragon. It is the successful execution of 3M’s – Method, Mind and Money that will bring us more wealth…

XIRR/CAGR: Investor’s true performance indicator! (6)

Createwealth8888 — Sat, 21 Jan 2012 23:45:00 +0000

Read? XIRR/CAGR: Investor’s true performance indicator! (5)

Uncle8888, how to back track my investing capital and investible cash to compute XIRR since investing?

If you have all your stock transaction records and dividends statement, you can back track your capital and work out your current investible cash and then proceed to compute your XIRR.

OT has done it!…

XIRR/CAGR: Investor’s true performance indicator! (5)

Createwealth8888 — Sat, 21 Jan 2012 10:31:00 +0000

Read? XIRR/CAGR: Investor’s true performance indicator! (4)

Read? Two Bank Accounts? No, You may need Four! – (4)

How can I easily maintain and track investible and virgin cash?

It is lot easier if you have your investment bank account linked to your broker and CDP.

See the following examples. No sweat tracking.

When I add more spare cash e.g $20,000 into investment bank account for future investment opportunity in stocks…

XIRR/CAGR: Investor’s true performance indicator! (4)

Createwealth8888 — Fri, 20 Jan 2012 19:35:00 +0000

Read? XIRR/CAGR: Investor’s true performance indicator! (3)

Another good reason why we must fully aware of our average rate of return over market cycles.

Read on. You may understand it better.

Retirement: how much is enough?

Funding your retirement years comfortably is a trade-off between playing it safe, taking risks and spending prudently

By BEN FOK

AT A FAMILY function, my 60-year-old cousin Peter asked me for my views on retirement planning. He said that over the last 35 years he has worked hard, consistently saved and prudently invested his money. When he retires in two years’ time, this should provide him with a nest egg of about $500,000. As I listened to him, it seemed that he had secured his financial future. But he kept asking: ‘Is it really enough?’

At this age, many would expect to have a significant retirement nest egg. If they don’t, they had better …

XIRR/CAGR: Investor’s true performance indicator! (3)

Createwealth8888 — Thu, 19 Jan 2012 23:45:00 +0000

Read? XIRR/CAGR: Investor’s true performance indicator! (2)

Read? My money works harder for me (4)

Why am I investing my hard earned money?

I don’t invest as hobby. For hobby, I go fishing.

I come to stock market to make my money works harder for me so I will need to know how hard is my money working for me.

Can I afford to work less for money when my money is working harder for me?

How can I roughly know it?

This is where the past performance will provide some indication. Historical XIRR trending pattern across market cycles of Bulls and Bears will help to provide good insight.

Common question

Should we include investible cash in our portfolio XIRR?

What is investible cash?

Investible cash is the cash available for investing after selling stocks. Your excess Virgin cash sitting in your bank account should not be included as investible cash as it is …

Buy and hold??? Take a good look and seriously think over it.

Createwealth8888 — Sun, 15 Jan 2012 11:36:00 +0000

Just for Thinking ….

Buy and hold???

The same old debate will start fresh once again whenever we have new investment bloggers on board.

Take a good look and seriously think over it.

The keys to long-term investing:

Market timing…

How did Kep Corp survive the last crisis?

Createwealth8888 — Sat, 14 Jan 2012 20:50:00 +0000

How did Kep Corp survive the last crisis?

Can it survive the next crisis in 2012/13?

Looking at its past net order book especially in 2006, 2007and 2008 and that may have lead to its rising EPS.

For the next few years, how will its EPS like?

Will the growing infrastructure division be enough to mitigate the lack of order in 2009 and 2010?…

Understanding the Concept of Demand and Supply

Createwealth8888 — Sun, 08 Jan 2012 11:57:00 +0000

Passive Income – Rental vs Dividend Yield (3)

Understanding the Concept of Demand and Supply

I believe most of us know what is Demand and Supply in Economic theory; but allow me to take it a bit further into passive income.

How do we get paid for passive income?

Read? Saving, Lending and Investing (3)

For interest on saving, coupon on bonds, dividend on stocks, we are in the Demand side; but NOT in the Supply side of getting paid for our capital. We basically demand yield and that is all about it.

However; for rental on properties it is different, we are in the Supply side; but NOT actually in the Demand side of getting paid for our capital. When we supply, people are expecting us to provide some level of basic services to meet their demand (expectations). Some unexpected demand can sometime drive us nuts. Similar to some nasty internal …

Stress test your portfolio!

Createwealth8888 — Sun, 08 Jan 2012 11:07:00 +0000

Read? Portfolio Management – Portfolio Risk (3)

Track, measure, and visualise

Is the next bear market happening in 2012/2013?

If it happened, how bad will our portfolio get hit?

Will we still have enough cash to survive without liquidating our investment near market low till the next bull?

When the general forecast and sentiment for market condition in 2012 is bad, we must prepare and get ready for it. We must have enough resources to seize the opportunities and the window for that opportunity is only 2-4 months for sharp capital gains…