Author: Compounding Wealth Through Sensible Investing

Sunday Times Article – 53 Tips for Better Financial Health

I read with interest this article on Sunday Times today on the 53 important points about personal finance. There are few points which I think are absolutely critical to one’s financial well-being, especially for beginner anyone or working adults just started on his investment/financial journey. Saving11 – The 50/20/30 Budget. A budgeting guideline that suggest spending 50% of income on living expenses and essentials; 20% for financial goals like savings and investments; 30% for discretionary spending. I feel that 20% for financial goals is actually too low. If one is serious about growing wealth, one should place protection and...

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You Could be Unknowingly Timing The Market with These Actions

Most, if not all, of the investors I encountered agree that it is extremely difficult to time the market successfully, meaning trying to buy at absolute bottom and sell at absolute high to earn maximum profits. But I see many investors deciding their buying and selling that are supposedly based on sound rules and experience, but are actually timing the market unknowingly. I believe the underlying reason for such behaviour is due to emotional biases in investing. One is the anchoring bias, and the other is the tendency to project future price movement based on recent patterns. For the...

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Reflections from Recent Seminar

Or rather, observations, from my recent seminar held just over the weekend. I shared how should investors go about analysing investment moat of a company, identifying stocks with modest growth rate and comfortable yield so not to be affected by market’s sudden change of trend, and selecting strong REITs using the GOV framework and balance sheet analysis. There was also a major segment dedicated to investor psychology with my personal experience/tricks to better handle the emotional roller coaster, and practical portfolio management. It was a good session with active participation from audiences. At least they were awake, listening and...

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Three Takeaways from MNACT AGM

MNACT? What stock is that? In case you are still unaware, Mapletree Greater China Commercial Trust (MGCCT) recently changed their name to Mapletree North Asia Commercial Trust (MNACT), to reflect expansion of investment mandate to whole of North Asia. As one of my income stocks, I attended its AGM on 18 Jul to find out more about its past year performance and future growth strategies. Here are my three takeaways from the AGM. Choice of Private Placement over Rights Issue for Recent Fund Raising One unit holder asked the management why was there no rights issue during the recent...

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Education Series: STI End Q2 Quick Observations

Technically this market snapshot is not really end Q2 – its is already one week into July as I wrote this article late. But market had some big movements on Fri 6 Jul, after latest round of property cooling measures announced on Thursday (5 Jul) night. So i might as well base this article on 5 Jul closing price, to better reflect latest market movement. Source: Business Times, 7 Jul 2018 Q1 article can be found here. As of last Friday, there was only one company priced above 75th percentile of its past 52 week price range: Comfort Delgro....

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Silver Linings in This Down Market

Singapore stock market undergoing some rough patch now, as STI has dropped about 11% from 3,640 to 3,240. Once in a while the market will catch a cold, and this is when all the negative news will surface prominently in media. Future looks bleak and stock market seems to be falling off a cliff. Human nature, being risk averse, will start thinking about getting out of market, avoiding the downturn until the coast is clear. But let’s remember that market always climb a wall of worries, and eventually it will recover. We were even able to survive and prosper post-2008...

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Give Your Portfolio A Health Check

Most people go for regular health check-up to ensure that their body functions well to lead a healthy life. Similarly, retail investors should also conduct health check on their portfolio to ensure tip-top conditions. After all these are our hard-earned money and we should guard it attentively.  But very often investors are lazy and do not monitor the health of their portfolio regularly. Here I would share my portfolio review steps to offer you some guidance. I do such review at least half-yearly. (Wait.. You do not have a portfolio? Or don’t know what is a portfolio? Perhaps we...

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Some ETFs to Ride on China A Share MSCI Inclusion

Amidst all the buzz about Trump Kim Summit and US vs Rest-of-World trade war, an important financial event is taking place, that is the inclusion of China A Shares into MSCI Emerging Market Index. Let’s understand some background first. MSCI and Emerging Market Index MSCI stands for Morgan Stanley Capital International. It compiles key indices that represent the targeted equity market according to themes, industries or geographical sectors. These indices are often used as benchmark to measure investment funds’ performance. One of the most popular MSCI indices is the MSCI Emerging Market (EM) Index that tracks equity performance from...

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Parted Ways with Tai Sin Electric

Examples and stocks quoted in this article do not constitute financial advice and/or buy/sell recommendation. Opinions expressed are personal view and do not take into account your investment objective, financial situation and particular needs.  I sold Tai Sin Electric after some un-inspiring results. This is one of my longest holding so I decided to pen down this short article as a record. Background I first bought Tai Sin in Sept 2012. It is the leader in the field of manufacturing and supplying of cables to the construction players. I expected the demand for electric wires and cables, being a...

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Make Sense of Your Insurance Plan Bonus Statement

I will be having a talk covering various instruments available for retail investors, how to determine quickly the quality of selected stock, and ways to safeguard your profit and protect your assets.  Sign up for the session here!  If you have an Participating Life Insurance policy, you would receive an annual bonus statement that provides an update on bonus declared for this year and the total accrued bonus so far. In this article I highlight what are the important segments to zoom into and the key info to be gleaned from a bonus statement, using my own Tokio Marine policy....

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3 Reasons Why Retail Investors Find it Hard to Cut Loss

There is this investing words-of-wisdom in Chinese: 会买的是徒弟,会卖的是师傅。Essentially it means it is relatively easy to buy a share, but when to sell is much trickier. Buying is like elementary school level, but selling may be a high school level manoeuvre. What about selling a loss position, ie cut loss? What level does is it? PHD? While I have no answer for that, I do have some opinions on reasons that make most retail investors not willing to cut-loss. It Will Come Back Up Again Perhaps this is due to the old adage, or common belief that, over the long...

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Education Series – Financial Statement: A Layman Overview

95% of investors, or my clients, shun financial statements like some kind of poison. They frown upon the mention of it, let alone reading through these statements. But the truth is successful investment cant run away from analysing Financial Statements. As Warren Buffet puts it, accounting is the language of business, presented in the form of Financial Statements. They are important documents which companies communicate to us investors, how well the business is doing. But reading financial statements need not be such a painful experience. We do not need to know how statements are prepared. Just like we don’t...

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Market Outlook and Investment Insights Sharing

Were you taken aback by the recent market swing as opposed to the smooth-sailing market we had in 2017? Were you unsure of how to react when your portfolio share price falls sharply? Would you like to gain valuable knowledge about current market situation to better position yourself for next movement? If your answer to the above is yes, then this seminar is for you. In this session, I will cover Global Market Insights Singapore Market Insights Selected Singapore Stocks Fundamental Analysis How to Structure a Resilient Portfolio In addition, I will also share my investment watchlist, and how...

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5 Points I Learned from HRnetGroup AGM

HRnetGroup is the largest human resource recruitment agency in Asia (excluding Japan), with operations across 10 key cities such as Hong Kong, Beijing, Shanghai, Seoul, Taipei etc. It is also the largest player in Singapore according to Frost & Sullivan analysis in 2017. Its revenue and net profit derived from Singapore for FY17 is $298m and $37m respectively, while the second largest player Adecco, had revenue of $144m and net profit of $5.7m. As a newly listed company that just IPO-ed last June, it recently held its first ever AGM just last week. As a shareholder intrigued by its...

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5 Things to Note – Frasers Logistic and Industrial Trust Expansion into Europe

Frasers Logistics & Industrial Trust (FLT) announced that it would be expanding to Europe via acquisition of a Special Purpose Vehicle that holds interest in 21 industrial properties located in Germany and the Netherlands. FLT is a Reit that holds 61 industrial and logistic properties in Australia worth about A$1.93 billion, concentrated in major cities of Sydney, Melbourne and Brisbane. It is part of the Frasers Property Group that also owns other Reits in retail, office and hospitality sector such as Frasers Centrepoint Trust and Frasers Commercial Trust and Frasers Hospitality Trust. Predominantly Freehold Prime Properties 93% of the...

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