Author: Compounding Wealth Through Sensible Investing

Lum Chang waking up?

Lum Chang has been one of my key holdings, constituting about 9% of my portfolio. I first invested in the company back in Oct 2013 at a price of 0.34, attracted by its relatively large discount to its NAV of 0.48, around 29%. It also had quite good dividend yield of 5.8%. The company is definitely not as largely followed by the construction firms that get the limelight with their large contract wins – the ah beng ah sengs such as Lian Beng, Hock Lian Seng, Tiong Seng, Chip Eng Seng etc. The company is a low profile construction player...

Read More

Riverstone Holdings FY14

Riverstone Holdings is positioned as a growth stock in my portfolio. Being a growth counter, its earnings had not disappointed in the past few quarters. Similarly, its share price has seen a nice increase to the current $1.18. At this price, it is valued at PE 19.52 based on 2013 earnings. (I previously blogged about Riverstone here) For my dividend and assets holdings, I usually just glance through the top line results and focus on the balance sheets strength, amount of ops cashflow statements and ability to continue paying dividends. However, for my growth shares, it is important to...

Read More

2014 Review and 2015 Targets

2014 has been an eventful year. I got my house and got married. So the previous few years’ savings had been well utilised for the 2 big events. Investment wise, I did not achieve the yearly target of 12% return per annum. It is probably about 9% or so. The focus was on establishing positions in low PE and relatively unheard of companies. These shares usually will take a longer period to realise its values, hence a one year time frame may be too short to determine the true returns. Based on my investment journey this year, there were...

Read More

So Market Didnt Crash

So much so for the bear market that was widely anticipated to kick in with the recent market correction. It turned out that DJIA dropped about 7% before swinging up to close at historical high last night, all in the span of a month. I read about many fellow investors in forum dishing out warnings and cautioned others to seek cover. Some urged others to cash out the shares that have earned them profit to raise the level of cash for use during the impending crash. Others shouted out to cut loss and sell out regardless of amount loss,...

Read More

AP Oil

AP Oil is a company that engages in distribution and production of lubricating oil used in automotive, shipping and industry machinery. The company also produce specialty chemicals used in shipping and oil/gas industries for cleaning and maintenance purposes. Its products are marketed throughout Asia and as far as Middle East. It has been listed on Catalist in 2001 and was upgraded to the Mainboard in 2003. The company appeared in my radar due to my chat with a friend who invests like Walter Scholes and specialises in unearthing stocks trading way below the RNAV. He impresses with his depth...

Read More

What methods had I used

Come to think of it, I have been seriously investing since 2011. Although my first share purchase was done back in 2007, a few lots of Thai Beverage, which would not count as proper investment as there was no share analysis and business model study. It was more of a speculation. Over past couple of years I have bought shares based on different investment strategies, including net assets play, growth stocks, dividend counters, swing trading based on basic technical analysis such as MA, support and resistance levels. There had been varying degree of success with these strategies. Let me...

Read More

Which Investment School of Thoughts

I attended a course today: ‘The Value Investing Mastery Course’ conducted by BigFatPurse. I believe BigFatPurse need no more introduction, as it is a well known blog with a wealth of information among the local financial blogger scene.  Coincidentally, I read Cheerful Egg latest blog post on way back home after the course, on the pros and cons of different investment strategies out there and why he thinks passive investment through an ETF is the best deal for retail investors like you and me. Let me distill my doubts a little and put them into words. I have been...

Read More

Ah.. That Long Term View Thingy.

Warren Buffet, ‘If you do not intend to hold on to a stock for 5 days, do not even think about holding it for 5 days.’; ‘It is foolish to expect a stock price to rise the next day after you buy it.’ 冷眼‘建房子需要等五年,收割油棕需要等五年,做生意从开业到回本赚钱需要等五年,为什么买股票不可以等五年?’ Master investors had given us enough advice and wisdom on the need to have a long term view on stock investment, as shown in the couple of quotes shared above. However, such long term mentality is exactly what is missing in the investment process of majority of the retail investors. I was sharing with colleagues...

Read More

Learning Points – 2 Major Financial Commitments

I have to say sorry to readers for going on a break over past 4 months as I was extremely busy with my marriage and house collection cum renovation. Finally, over the Easter long weekend when most of the wedding and renovation matters largely settled, I am able to sit down and pen some of my thoughts down. I got married at the end of December last year. And 1 week after that, I received notice from HDB to collect my house keys in early Jan. The timing and sequence of event was coincidentally perfect relative to each other....

Read More

It is difficult to buy growth.

Investors would be most delighted if they could lay their hands on a company undergoing rapid growth that sees its revenue and profits rising steadily and aggressively over time. This sort of investment tends to bring about the greatest wealth increase for investors as the share price grows many folds over years. Philip Fisher laid down his arguments for growth investing and explained the thought process and framework in his classic investment book ‘Common Stocks and Uncommon Profits’, widely regarded as the bible for growth investing. He advocated the 15 points of key assessment criteria for a company to...

Read More

Misconceptions About Moving Average

Moving average is a widely-used technical analysis indicator. Different systems and school of thoughts use different days moving average, but the more commonly used ones are 20, 50 and 200 days. Statistical studies and academic research showed that MA is useful in identifying reversal of trend and serve as a strong support or resistance for stock price. 20 and 50 day MA signifies short term trend of the market while 200 days represent mega trend that could last a few years. I have also heard some experts shared that investing based on MA analysis has the highest statistics probability...

Read More

Implementing Passive Investing for My Fiancee

I am starting on a plan to implement passive investing for my fiancee to put her stash of savings to better use. It is rather amusing to find out that her perception of investment is to park the money in a bank fixed deposit account to ‘earn’ the interest. It is even funnier to know that my fiancee do not really mind seeing that stash in bank accumulate to a substantial amount as she values the safety of funds parked with local banks. Not that she doesn’t know inflation. She is aware of that. But, she is still fine...

Read More

I Prefer to Worry About Buying Than Selling

Whenever we buy something, we always talk about price. Be it simple routine purchase such as daily groceries, to expensive big ticket item such as cars or properties. We are constantly looking out for bargains to buy at a low price, as that symbolises value. Of course, I am assuming that we are not substituting quality for value here. The goods we are trying to buy must be of good quality, and within this condition we seek to establish value in our purchase. However, if the goods are of bad quality, it will not be a buy for me...

Read More

You check your portfolio everyday?

As the market rised substantially over the past month, my friends who have been rather quiet and reluctant to talk about share investment sprang back to life. They started commenting, exclaiming ‘wow xxxx rised another 10 cents today! Ho Seh la!’, or lamenting ‘Shit! Yyyy fell 3% today’. It is strange as just 1 month ago they seem rather low-spirited and kept mum about their portfolio when casually asked:  how did your investment go? I noticed this common behavior present among majority of the retail investors. I used to behave this way too. I was ultra-concerned about my portfolio...

Read More

Frasers Centrepoint Trust

I have been staying at market’s sideline to sniff out good reits to add to my portfolio, as part of my portfolio construction process. This reit segment aims to provide sustainable, consistent dividend to to my coffers. Added together with my monthly investment funds, this will form a substantial amount to be used for purchasing cheap and good investments during down times.  Looking at the reit landscape, I excluded office and industrial reit from my list as the rentals are volatile, and subjected to the economic cycle. I did not even consider hospitality reit as the rental is even...

Read More

Like us on Facebook

Follow us on Twitter