Author: Compounding Wealth Through Sensible Investing

Buy Low Sell High Can or Not?

The notion of ‘Buy low sell high’ is usually the desired way to earn in investing. So imagine you have done your homework analysing a strong company with great potential. And your valuation tells you that it is now at a cheap price. You went ahead to buy the share. But to your horror, the share price seems to drop immediately right after you bought it. And it continue to slide further for an extended period right after. This is a familiar scene. It happens often, even to me, and it is indeed puzzling. Buy low sell high is...

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Time to Have Some FAANGs?

The FAANGs – Facebook, Amazon, Apple, Netflix, Google (standing in for parent company Alphabet), are arguably the world’s most popular tech stocks today. The FAANG stocks have surged more than 40% collectively in 2017, outperforming the Dow Jones Index and S&P 500. However the FAANGs out-performance came to an abrupt halt in early March. It has since registered significant fall from the peak right up till the most recent market trading date. Let us look at the FANG+ Index listed on the New York Stock Exchange for a sensing on the drop magnitude. FANG+ Index, according to its factsheet,...

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End Q1 STI Stocks Quick Observation

First quarter of 2018 has passed in a blink of an eye. I thought it would be interesting to look at STI and have a good sense how the STI blue chips are doing, especially when we just had some volatility in Feb and Mar this year. Source: Business Times, 31 Mar 2018 Based on the table above, I noticed that Five companies are at a price level of 75th percentile or higher based on their past one-year price range: City Developments, Venture Corp, DBS, OCBC and UOB. Among these, Venture at $28.11 is the closest to its 52...

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Sasseur Reit and Peers Comparison

The newest Reit to IPO on local bourse is Sasseur Reit, touted to be the first outlet mall Reit to be listed in Asia. It comprises an initial portfolio of four outlet malls located in Chongqing, Kunming and Hefei and offers investors the opportunity to invest in China’s fast-growing retail outlet mall sector. Local investors now have another option to gain exposure to the retail consumption sector in China, dovetailing into the trend of growing middle class with increasing affluence. But are there alternatives in the local stock exchange that grant similar exposure to investors? You bet. Off the...

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5 Metrics to Analyse Banks

The trio of local banks – DBS, OCBC and UOB, are major components of Singapore’s economy. Not only are they the biggest market-capitalisation companies in the stock market, occupying the largest weightage in the Straits Times Index, the three local banks are also among the safest banks in the world. Global Finance ranked DBS, OCBC and UOB among the world’s top 15 safest banks in 2017. Banks have large asset base, comprising of deposits, loans and assets under management. Being in the heavily-regulated financial industry with many liquidity, credit risk and interest risk requirements, their financial statements can be...

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About Two Tibetan Monks (Lamas)

I had the best holiday of my life (without wife) last year when I went backpacking for 2 weeks alone in the wilderness of Western Sichuan province, venturing into the mountainous region with strong Tibetan culture. The highlight of my trip has to be Hailuogou(海螺沟)glaciers and Daocheng Yading (稻城亚丁)National Park. The beautiful scenery was truly out of this world and I was totally blown away by the snow-capped mountains, turquoise lakes, the vast grassland without a single person in sight etc. Just Google these places and you will see how beautiful they are. Daocheng Yading National Park   Gongga...

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3 Ways to Invest Your Infant’s Ang Pow Money

This is my first CNY spent as a father, with my daughter born just 2 mths ago. It is certainly a happy CNY celebration this year, carrying a cute baby around meeting all the relatives. As i received ang pow on her behalf, I am already thinking how to invest this sum of money. Knowing that she has a super long investing runway ahead, investing her money even before she turns one would give her a good head start in this journey, leveraging the power of compound interest. ‘Time in the market’ is a safer bet than ‘timing int...

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Thoughts on market plunge and what should one do

Recent market drop has been stomach churning. If you are a relatively new investor who entered the market past 2 years when it was smooth sailing, it is only natural to be terrified by the wild swing. In this article I share some opinions on why such drop is to be expected and offer some ways to stay afloat in such market conditions. 1 – Have a right perspective for this market drop Majority of investors’ fears were stoked by scary news headline such as ‘Dow plunges 1,175 – worst point decline in history’, ‘Dow and S&P 500 now...

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6 Things I Learned from Jumbo Group AGM

*Disclaimer: I own Jumbo shares. This is not a buy or sell call. The next company in my AGM series is Jumbo Group – the restaurant chain synonymous with chili crab. My favourite is still Black Pepper Crab. But Chili Crab is not bad too.. What about you? As usual, AGM started with CEO Mr Ang Kiam Meng giving a presentation on business overview, expansion developments and upcoming plans, followed by CFO presenting on company’s figures. Presentation slides can be found here. AGM Held in Grand Ballroom of Chui Huay Lim Club.   From Left: CFO, CEO Mr Ang,...

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AGM Series – Frasers Centrepoint Trust FY17

FCT is a long term holding in my core portfolio and I have written quite a few articles about it. See here, here, here and here. Despite following its performance for long, I still learned new things about the Reit after attending its AGM yesterday. In this article, I share some key takeaways and candid opinions expressed by Dr Chew Tuan Chiong, the CEO of FCT. FY 17 DPU Increased Despite Northpoint City AEI The AGM started with Dr Chew presenting the FY17 results. He commented that the Reit achieved a record high 11.90c Distribution Per Unit (DPU), despite...

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What Type of Returns You Want in Shares Investing

The aim of investing in shares market is to earn money. Lest we end up over-simplifying the investing process, this seemingly straightforward response can actually be broken down further, to better guide your investment strategies, approach, and perhaps type of shares suitable for your investment goal. There are 3 types/levels of returns we should aim for in this investing journey. Do spend some time to think about what we hope to get out of investing, and be clear about which objectives we are after. To beat inflation Someone with conservative risk appetite could be contented with low but stable...

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Re-Examine Your Understanding of PE Ratio

PE ratio is arguably the most commonly used financial metric in share investment. But many investors may not truly grasp the idea of PE and how can it be applied to shares investing. In this article, I try to explain PE ratio using simple language, and highlight how it can be used in your daily investing decisions. PE Ratio – The Concept Imagine this. You have a sum on hand, and is prepared to acquire a food stall in the neighbourhood as an investment. As you approach the business owner, what would be your first question to ask? Surely,...

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A-Point-In-Time vs Over Time

A-point-in-time or over-time?? A short post. Investment is a long journey of building wealth. It takes time and effort to understand businesses strength and future growth prospects. I heard an interesting comment from an industry heavy-weight recently, on investors’ mindset of a-point-in-time vs over time. His words were insightful and I try to share it here, with some of my thoughts. People often focus on issues or problems on hand. These are matters confronting them at the current moment. These are issues at a point in time. And we usually get swamped by these issues, and out mind zoom...

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2017 Year End Stock Take

*shares quoted in this article are for education and learning purposes only. It does not constitute a buy or sell call   How was your 2017? Did it go according to your plan? How many ticked check boxes do you have on resolution list done up this time last year? Here are my year end records and musing.  Overall Returns Investment wise, 2017 is a year to remember as I had the best returns so far. My Time Weighted return for 2017 is 26.5%, including dividends. Individual Stocks – Positives These shares had good un-realised profits in 2017 plus...

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5 Steps to Manage Risk in Shares Investing (Especially beginners!)

In share investing we always talk about managing risk, which may sound rather abstract. The objective of managing investment risk is to minimise the possibility of your portfolio running into huge, irreversible loss. If one’s overall portfolio is down by 50% on paper, his funds would be stuck for an extended period and not able to invest somewhere else profitably. The opportunity cost is immense. Worst case would be an investor who can’t stand the drop and sell out, his previous good returns earned during market rise (like now) would have been emptied. Besides financial loss, it would deal...

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