Author: Compounding Wealth Through Sensible Investing

Recent Financial Statement Analysis Workshop

More investors are getting interested in using Fundamental Analysis to short list strong company stocks to invest in, especially in a lacklustre market we are going through right now In fact it is an opportune time to start studying the fundamentals and earnings of companies you are interested in. So one would know where is a good, under-valued price to start establishing position. I held a seminar recently to share with participants how to analyse financial statements and annual reports. Much insights were presented on extracting relevant figures, zooming into key sections of annual report, and performing company valuation....

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5 Things To Know About Phillip SING Income ETF

There is a new kid on the block for the local ETF scene – the Phillip SING Income ETF (Phillip SING). Hot from the oven, it was launched by Phillip Capital on 1 Oct Monday. I will share some pertinent points worth noting about this ETF, to aid you in your decision whether to subscribe for it. The index Phillip SING tracks the Morningstar Singapore Yield Focus Index (The Index) that comprises a basket of stocks selected using Morningstar’s proprietary quality income strategy and factors. The 30 stocks were identified based on a composite score derived from following factors:...

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Helping You to Start Financial Statement Analysis

Not knowing how to start Fundamental Analysis (FA), in particular reading financial statements, is a common pain point among retail investors. It is especially true for novice, with quite some experienced investors facing the same problem too. Most of us know the importance of FA and studying financial statements, but most do not have the knowledge and know-how to start. Quarterly earnings statements and annual report are thick documents, inundated with figures, charts, diagram and texts. It can be quite daunting to digest all these info to arrive at a fair opinion on the company. Indeed a headache for...

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Airports of Thailand A Good Investment?

I was reading news online and saw this piece on the expansion of Bangkok Airport to have a second terminal. The airport’s operator, Airports of Thailand (AOT) piqued my curiosity. Here’s what I found out about the company. Disclaimer: I do not hold AOT shares. Introduction AOT runs 6 international airports in Thailand – Suvarnabhumi, Don mueang, Chiang Mai, Phuket, Hatyai and Chiang Rai. These are the gateway airports that serve major cities with regular international flights. AOT airports. Source: AOT 9mth FY18 earnings presentation Its revenue are split into aeronautical and non-aeronautical segment. The former includes landing and...

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What To Do If You Bought Stocks Before This Correction

Straits Times Index has not been performing well so far in 2018. Year-to-date, it has dropped 7.1% and touched a one-year low of 3,103 on 11 Sept, and rebounded slightly to close at 3,161 last Friday. Similarly, other main index in Asia had also done poorly. In fact, fared worse than STI. Hang Seng Index has dropped 12.8% this year, while Shanghai Composite has plunged 19.9% in 2018. Not a pretty sight. STI (Black), Hang Seng (Orange), Shanghai Composite (Blue) year-to-date performance. Source: Bloomberg.com So assuming you have started investing not too long ago in 2017, such volatility may...

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The Worst Parents Video and Some Thoughts

There is this latest marketing video by NTUC Income about retirement planning that is very well-received. ‘The Worst Parents in The World’ video by NTUC Income The advertising message aside. Being a new parent myself, this video does strike a chord with me and made my eyes teary at some scenes. Naturally a video like this would achieve more than just selling or marketing something. To create long-lasting, maximum impact it needs to trigger some deep thoughts and subsequently, actions. NTUC says that it aims to ‘challenge the notion of what ‘best’ meant, and get viewers to reflect if...

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Is Tencent Holdings Limited Still a Buy Now?

I intentionally held off writing about Tencent’s earnings. One reason is I want to see market’s reaction to the earnings, and also to allow myself a more objective analysis after much of the media hype and noises had died down. I will just be comparing year-on-year figures as quarter-on-quarter change is too short a period to form any meaningful analysis. For a company that is still growing strongly I will be looking at just the revenue and profit, margin, and cash flow, as I seek to find out if the growth rate is still intact. Earnings Source: Tencent 2Q...

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Which of These Investing Scenarios You Don’t Wish to Encounter?

Assuming you have conducted due diligence assessing the investment merit of a company. All things seem good – growing revenue, earnings, low debt, strong fundamentals, management hold large stakes etc. So it passes your investment screen. The Following scenarios might occur. Share Price Shot up After Your Analysis Before you have bought it.  I am sure many have experienced this before. You have done your homework, you were confident in the company’s prospect, outlook is good, market is there to seize.  Then you got pre-occupied with other life matters. You got busy. And maybe two weeks later, share price...

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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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