Author: Create Wealth Through Long-Term Investing and Short-Term Trading

Shocking Truth on some Stock Gurus!

Just For Thinking …. Like most Sundays, I was flipping through thesundaytimes papers at air-con KopiTiam while having breakfast with Kopi-O siew dai. As usual there will be some Stock Gurus advertising how easy they can teach you to make money from the stock market and you can reach financial freedom by following their method but firstly you have to put $X,XXX in their pocket. On Pg 3, I can’t really miss reading off the bold-worded of easy trading in the stock market. Let recall what did I joke about … Read? Hey! Are you good at stocks? (2) Getting an...

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Investing Made Simple by Uncle8888 (10)

Read? Investing Made Simple by Uncle8888 (9) Simplify your investing to avoid undesirable stress when you read the news that your stocks were halted and later got suspended. Why would you want to do that just to make some money from the stock market? Why stress yourself? I believe that there are enough opportunity in SGX to invest in non S-Chips to make decent returns. I have been doing that with non S-Chips since Nov 2008. I don’t even care to invest in overseas stocks for the same reason. The blue chips in SGX are also global companies with global presence...

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Passive Income?

When we think of passive income; most commonly we will think of passive income coming from rental income from property and income from stock dividends. For retail stock investors, such thinking of passive income coming from stock dividends may actually corner them into searching into REITs, Biz Trusts and other defensive counters that are known to pay consistent dividends. Since REITS and Biz Trusts are specially created for investors looking for stock dividends as passive income on regular basis e.g quarterly or semi-annually; probably it becomes the best place to look for high dividend yield. But, the best place may not be...

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How are you measuring up with your investment return?

Here are some top investment guru’s annualized returns Peter Lynch, he posted a 29.2% average annual return over 13 years Warren Buffett, from 1965-2005,over 40 years has produced an annual average return of 21.5% Anthony Bolton, his Special Situations the fund achieved an average annual return of 19.5% over 28 years Bill Miller, Portfolio Manager of Legg Mason Value Trust (LMVTX). Since inception, his fund has earned 15.25% average annual total returns over 15 years If considering time and return, I would rank in the order Warren Buffet – 21.5% Anthony Bolton – 19.5% Peter Lych – 29.2% Bill...

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Noble : Bought back @ $1.98

I last sold at $2.08 and now bought back at $1.98 Placement to BBs at $2.07 Round 13: ROC 20.8%, 185 days, B $1.72 S $2.08 (Price has been adjusted after XB) Round 12: ROC 5.4%, 190 days, B $1.87 S $1.98 (Price has been adjusted after XB) Round 11: ROC 10.1%, 45 days, B $3.04 S $3.37 Round 10: ROC 6.5%, 20 days, B $3.07 S $3.29 (Bought back higher) Round 9: ROC 5.7%, 74 days, B $1.71 S $1.82 (Bought back higher) Round 8: ROC 34.3%, 100 days, B $0.96 S $1.30 Round 7: ROC 5.7%, 10...

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Bought back Cambridge (CIT) at $0.51 (2)

Read? Bought back Cambridge (CIT) at $0.51 Someone asked me why I bought CIT? Good? I last bought CIT at $0.455 and sold at $0.545. I bought back at $0.51 to subscribe for right issues and some excess at $0.429 which is lower than my last purchase price at $0.455. So it is just simple Maths for me to do a fair deal. It has nothing to do with TA or FA. Rights Issue will be offered on a 1-for-8 basis (fractional entitlements to be disregarded) at a price of S$0.429 per Rights Unit (the “Issue Price“) which is at...

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Investing Made Simple by Uncle8888 (9)

Read? Investing Made Simple by Uncle8888 (8) on Two-Way Buying Decision Avoid paying a price for overconfidence As retail investors, how do you know you have become overconfidence and may have exaggerated your skills in TA/FA? One common sign of being overconfidence and exhibit the sense of exaggerated superior analytical skills in TA/FA is those who keep on doing Averaging Down on it while the market is aggressively selling it down. They think that they are right and the market is wrong; but they often forget that in the stock market there are hundreds and thousands of Not-So-Stupid investors or professional Jaws analysing the same...

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Portfolio Management – Portfolio Risk (2)

What does Japan Quake tell you something on risk management on your portfolio? No matter how good you are with your TA or FA or both. You still must at all times protect your portfolio against Black Swan event that may happen and causing big losses to the portfolio. It is lot harder to recover from big losses in the portfolio. In Joel Greenblatt’s brilliant book, “You Can Be a Stock Market Genius“, he provides the following statistics by owning the following number of stocks: 2 stocks eliminates 46% of non-market risk of just owning one stock 4 stocks eliminates 72% of the risk 8...

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Hey, investors in Singapore. Inflation has shrunk your money!

The inflation rate in Singapore was last reported at 5.5 percent in January of 2011. From 1962 until 2010, the average inflation rate in Singapore was 2.73 percent reaching an historical high of 34.00 percent in March of 1974 and a record low of -3.10 percent in September of 1976. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. If the inflation rate...

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Investing Made Simple by Uncle8888 (8)

Reading? Investing Made Simple by Uncle8888 (7) Two-Way Buying Decision For every completed stock transaction, there are  buyer/buyers and seller/sellers. You may have analysed the stock and decided it is good time to buy; but have you equally put in enough time and effort to analyse why they sell? Never assume the market is wrong and you are right. As retail investors with limited resources, you are better off to be humble and assume that the market is often right than wrong. To be contrarian-investor, you may dare to go against the crowd’s wisdom; but you may still need...

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XIRR is easy to use

Read? Measure, Measure, Measure (5) As investors, we should be very concern on Rate of Returns on our investment, and Microsoft Excel function XIRR may be the right tool for us to track and monitor our investment performance. How to use XIRR? XIRR(values,dates,guess) Values is a series of cash flows that corresponds to a schedule of payments in dates. The first payment is optional and corresponds to a cost or payment that occurs at the beginning of the investment. If the first value is a cost or payment, it must be a negative value. All succeeding payments are discounted...

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Noble launches S$527.5m top-up placement

Placement Agents have agreed to procure subscriptions and payment for 306,546,000 new ordinary shares of HK$0.25 each (the “Placement Shares”) in the capital of the Company at a placement price of S$2.07 Placement Price The Placement Price represents a discount of approximately 6.77 per cent. to the price of S$2.22, being the weighted average price for trades done on the Singapore Exchange Securities Trading Limited (“SGX-ST”) on 3 March 2011, being the trading day on which the Placement Agreement was signed . Financial Impact The Placement Shares represent approximately 5.1 per cent. of the existing issued and paidup share...

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Biosensors

Market doesn’t seem to have an issue with such a big placement since there is no sell-down and in fact it surges forward. Biosensors: PLACEMENT OF 216,325,800 NEW ORDINARY SHARES AT AN ISSUE PRICE OF S$0.9283 PER PLACEMENT SHARE The Placement Shares represent approximately 19.55% of the existing issued and paid-up share capital of the Company as at the date of this Announcement and will represent approximately 16.35% of the enlarged issued and paid-up share capital of the Company after the issue of the Placement Shares. Upon allotment and issue, the Placement Shares will rank pari passu in all...

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Labour and Capitalist

Definition: a social class comprising those who do manual labor or work for wages So anyone who works for wages is a labourer. I know you may protest wildly at that definition. LOL When we labour, we are paid wages. How much we are paid is determined by someone or company that perceives our value for providing that services. The company is more likely to pay you enough wages to keep you in the jobs. The company is not there to make you rich. As a capitalist is different, we are not paid for our labour but for the use...

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Keppel wins two jackup orders worth about US$1 billion from Maersk

Keppel FELS Limited (Keppel FELS) has been awarded contracts from Maersk Drilling Holdings Singapore Pte Ltd, a wholly owned subsidiary of A.P. Moller – Maersk A/S (Maersk), to build two Gusto MSC CJ70 harsh environment jackup rigs worth close to US$1 billion. The first rig is scheduled for delivery near end-2013, with the second rig following seven months later. As part of the agreement, Maersk has the option to build an additional jackup unit with Keppel FELS. Mr Tong Chong Heong, CEO of Keppel Offshore & Marine, said, “The Maersk-Keppel partnership, spanning decades, has achieved many significant milestones. We...

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