Author: Dr Wealth

Elite REIT IPO: Do Not Buy Yet

2019 could be characterised as the year of the S-REIT. A combination of low interest rates and record high S-REIT valuations drove a flurry of REIT mergers and acquisitions. It also led to 4 REITs deciding to list themselves in the past year on the SGX. As such, it is no surprise we begin 2020 where 2019 left off with yet another REIT IPO. The latest challenger is Elite Commercial REIT (ECR) with an offering of mostly freehold offices in the UK. Suffering from REIT IPO fatigue yet? If not, let’s take a look at this offering together. IPO...

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Lessons You Should Learn from Our Bright Packaging Investment: 28% Loss, 84% Profits

Value strategies can be applied anywhere and although Singaporeans like to shop in Malaysia, it isn’t a popular foreign stock market among the investors. One of the reasons that come to mind is the forex risk – the devaluation of the Malaysian currency versus the Singaporean dollar. In the past, it used to be one Singapore dollar for every two Malaysian ringgit. Nowadays, it’s one Singaporean dollar for three Malaysian ringgit. There is some obvious risk if you buy stocks in Malaysia therefore if the currency continues to be worth less than what you traded it for. But that...

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MS Holdings Limited: Delivering a Bigger Lift to Profits

While MS Holdings may seem to be turning the corner, investors need to be wary of its declining net asset value, high debt levels and cyclical business. Introduction In Singapore, I always tell my wife that construction activity seems to be never-ending. Wherever we go, we see huge cranes dotting the landscape, tall hoardings and workers in coveralls buzzing around like busy bees. There always seems to be something being constructed, from spanking new condominiums to new MRT stations around the island. This constant hive of activity and the sight of tall crawler and tower cranes made me wonder:...

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Is 138% Returns In A Year Really Possible?! Here’s how to get Started

Bitcoin was a stellar year for me. And this is why. It has been almost 3 years since I started cryptocurrency courses, in which I teach retail investors how to buy, or sell, Bitcoin and other digital tokens. In that time frame, I’ve observed that many investors enter when the markets surge up, but very few dare to enter during bear markets – exactly what is required when you talk about making huge profits. The Bear Market In 2018, investors watched the collapse in prices of various crypto assets. The industry leader, Bitcoin, plummeted by more than 75% from...

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TheBearProwl: Yoma Strategic Holdings Limited Is Possibly Next Asian Godfather with 300% Returns

Why Asian Godfather? The term “Asian godfather” was first coined in a book titled “Asian Godfathers – Money and Power in Hong Kong and South-East Asia” and writes about a small group of very rich men – the south-east Asian billionaires who, in the post-Second World War era, came to dominate the domestic economies of their region. The book explores how these families slid quietly into their positions of economic power, largely thanks to the colonial and then post-colonial politics of the region. The fictionalised account of some of these families are in the book “Crazy Rich Asians”. We...

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TheBearProwl: Dairyfarm International is Evolving

About the author Thebearprowl is a trading and research outfit with focus on Global Equities, FX, Fixed Income and Commodities. We take a view with ideas generated from macroeconomic and fundamental analysis by utilising a comprehensive range of products and solutions across multiple asset classes. We also provide research reports and conduct courses based on the trading strategies we have developed. Credentials ⦁ #1 Winner of SGX/Investing Note Stock Trading Challenge 2018 ⦁ #3 UOB-SOCGEN-SGX DLC Competition 2018 ⦁ InvestingNote – Active Traders Club (1 of 5 verified trading veteran) ⦁ Quoted by The Business Times on 9th August 2019 due to a...

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Unconventional Investing Ideas to Profit Massively From A Recession

Disclaimer: You are responsible for what you buy. I may control shares in stocks & indexes mentioned. Broadly speaking, when a recession happens, patterns emerge. These are some of them. Mortgage delinquency rates pick up. Middle income luxury good consumption spending goes down. As wages are cut and as jobs get slashed, people retool, reskill, retrain and hope to attain new employment. Off-price discount retailer selling household items for $1 shoots up in sales. Pawn Brokers also experience shoot up in sales. Passive Investing cash flows heading into the indexes reverse as wages are slashed, jobs are cut, and as people pull OUT of the...

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Lower Risk IS Higher Returns: Billionaire Ray Dalio’s Risk Parity Approach

Quantitative investing, virtually unheard of 2 decades ago, has come a long way. While still the minority, quantitative managers now represent about a quarter of the hedge fund industry. Collectively, they managed one third of the industry’s assets or roughly USD 1 trillion. Quant names also snagged the top 3 positions as the largest hedge funds in the world today – Bridgewater Associates (USD 160 billion), Renaissance Technologies (USD 110 billion), AQR Capital (USD 61 billion). And just recently, one of our local hedge funds Vanda Global made the headlines as the top performing hedge fund in 2019, delivering a...

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Why Trend Following Works & Why You Should Trade With The Trend

I am sure you have encountered some stocks (or any other securities) that kept going higher and higher. When you think it’s already at its peak and can’t go any higher, it continues to defy gravity and continues to climb north way beyond your imagination. This phenomenon can continue for months or even years. That, my friend, is a trend in action.  And if you are a trend follower, you move and get into the market after it has made its direction clear, albeit still in an early phase uptrend. You only sell and get out when the trend ends. ...

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Early Retirement Masterclass 2019 Performance Review

In every Early Retirement Masterclass, students will create two portfolios, a blue-chip portfolio and a dividend income portfolio. The objective of teaching students how to build a starting portfolio is not to beat professional fund managers but to decrease portfolio volatility and risk. We want to lose as little money as possible and we want stability in our portfolios. We pay greater attention to stability and risk because investing is a psychologically painful endeavour. One must be able to endure significant temporary losses in order to emerge a winner. During the depth of the 2008-2009 recessions, my personal portfolio...

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2019 Dr Wealth Annual Letter to All Our Readers and Supporters

You may be a reader, a customer, a friend or a combination of all. Thank you. We wouldn’t exist without you. I started the tradition of writing the annual letter 4 years ago as I thought to explain our perspectives of the business and to give you a better understanding of why and how we do things would give you more trust in us. Who Are the Dr Wealth Trainers? The common questions revolved around the myriad trainers we have under Dr Wealth – what is the relationship, how do we select the trainers, and why do we want...

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Be a Better Investor Part II: Why invest in small companies?

I don’t know about you or what the markets think. Personally, when I invest, I’m not looking for 20%, 30%, or even 100%. I’m looking for 3x, 5x, 10x the returns on my money invested. In order to achieve such returns, I go to the most ignored, the most hated, the smallest, uncovered places of the market. I frequently go over companies with less than $300 million in market cap and I almost always (nowadays at least) look at companies that are sub $100 million in market capitalisation. The reaction of some of the friends I have working in...

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Be a Better Investor Part I: Using Insider Trades to Find The Very Best Investment Ideas

It is difficult to determine if you should invest in a company simply because it is undervalued. Any tom, dick or harry can arrive at a company being undervalued and there are many ways to do it. It’s primary 5 mathematics at best. The hard part is deciding what to do once you have a company that is undervalued. Do you invest or no? How do you make the decision? When I am deciding, I typically look at it in reverse. First I look for insider buying, then I try to see if the company is indeed undervalued. Insider...

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Frasers Logistics Trust and Frasers Commercial Trust Merger by Christopher Ng

As a result of perhaps coincidence or back-testing, both the ERM Masterclass portfolio and my personal portfolio contained a large number of Frasers Logistics & Industrial Trust (FLT) and Frasers Commercial Trust (FCOT) shares. Both positions have been mildly profitable at the time of writing but, generally speaking, they have not been particularly stellar compared to other counters selected by the alumni of the program. As Goh Kah Kiat has already written an excellent article on the merger that can be found here. This article merely builds on the firm foundation that Kah Kiat has already built in the past. For retail investors who read Kah...

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