Author: Compounding Wealth Through Sensible Investing

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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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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