Author: Dr Wealth

Smaller is not better for dividend investors

The small-firms effect is the theory that firms with a smaller capitalisation will outperform those firms with a larger market capitalisation. This effect was one of the three factors use in Eugene Fama and Kenneth French’s Three-Factor Model that was made in 1993. To test this theory, we ran a backtest using the Bloomberg back-testing tool on the Singapore markets. In this test, we compared the performance of an equally-weighted portfolio of stocks against half the number of stocks with a different market capitalization. Back-tests were done over the following: 10 years – Corresponding to the decade after the Great...

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My embarrassing investment in Sing Tao: 31% Gains

I would like to share with you an embarrassing moment in my recent stock investing experience. It was regarding a newspaper company in Hong Kong, Sing Tao. But I need to give you the background before I can tell you about the embarrassing moment. Similar to SPH, Sing Tao and the rest of the newspaper companies, have seen declining sales and profits as advertisers move more of their advertising budget online. But SPH wasn’t selling at undervalued prices despite the bad news. Sing Tao on the other hand presented a super undervalued case, and became a better choice for...

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Understanding Intrinsic Value: Part I

With so much information floating in the internet these days, it’s hard for people to know what’s the best investment source for them. It is even more difficult for normal salary worker to trust the so-called “experts” when all they really care about is to profit from your hard-earned money rather than telling you the truth. I think we can relate to this; one moment some insurance guy pops up and says I have the “best financial plan available in the market”. The other moment when we think we are safe; they pay you a visit while engrossed in...

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Early Retirement: Reducing the Probability of Losing Money with Statistics

We are innately averse to pain as human beings. If we burn our hands on the stove, we learn to never put our hands on the stove again. This is part of the reason of why it is so difficult to become a successful long term investor – over a long period of time, the likelihood of anyone losing money is almost a foregone certainty. No one has ever entered the markets and not lost money to it. Such a problem becomes exacerbated when you consider how to teach an Early Retirement Masterclass. Retirement entails relying on dividends/bonds for the...

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Why Should 10% of Your Portfolio be Diversified in Bitcoin?

As a kid, my weekly Friday routine was a trip to Macdonald’s. I loved it! I still remember the happy meal with hot fries, crispy chicken McNuggets, ice-cold coke, and a surprise toy inside. I remember the yellow & red theme, the clown Ronald Macdonald, and many choices or burgers I could select. It shouldn’t come as a surprise, that I was an unwilling member of my primary school’s Trim And Fit Club (TAF Club). Being in my 30s now, I tend to go Macdonald’s (a lot) less. I think there was a season, where I didn’t visit the...

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How Do We Find Investment Ideas?

Most investors rely on stock tips because it is the easiest way to get into the stock market without doing much work or requiring much effort. They will pick up comments like this, “I think Hongkong Land is very undervalued right now given the situation in Hong Kong,” especially from someone who they believe is a good investor. Even if it wasn’t meant to be a stock tip, it might be taken as one by the eager investors. There are no shortage of ‘stock tips’ if one is actively looking for them. The sources include, but are not limited...

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Undervalued Company with 18.2% Yields

Editor’s Notes: We previously covered how we were able to net a 153% gain on Oriental Watch Holdings here. It appears that the HK protests alongside the unsteady world macroeconomics have resulted in a buying opportunity once again. These are Oriental Watch Holdings relevant data as of 7th Nov 19. Note that yields might shift as share prices fluctuate. Disclosure: I am intending to take position in this when able. Caveat Emptor. DYODD. Source This is data from our proprietary screener available only to Dr Wealth graduates of the Intelligent Investor Immersive. I have displayed it here for ease...

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