Author: Investment Moats

Too Many People Lose Their Self-Respect Due to Money

Why can’t some people pull themselves out of a shit hole? I think for some people, over time, they lost a lot of self-respect. And then they get eaten up alive by their peers, their friends and their relatives. I have a friend from University days share with me what she saw in the office in her old job. There was a co-worker in her company that has worked in the compay long time. If you have worked in an organization for a long time, you are likely to have built up some relationships with long time co-workers. Even...

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Net Profit, EBITDA, Operating Cash Flow and Free Cash Flow in Dividend Investing

As active stock investors, we look for companies that can potentially be worth more than what they are selling now. These can be companies that was doing well in the past, but currently not doing very well, but are showing some tell tale signs profitability may be returning. These could also be companies that have the hidden ability to do well and grow their profitability over long duration. The market might be underestimating their ability to grow their profits. How do we sense if the company is worth more than the price that it currently trades for? A company’s...

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Tenants’ tough fight against their Landlords

The landscape for retail has changed dramatically these few years as online e-commerce have become more accessible, due to the improvement in the retail supply chain and processes of online retailers. Thus, more and more consumers are purchasing what they need online. This means that retailers need less space. For retailers that are primarily brick and mortar, they face a daunting prospect of having too short a time to ramp up their e-commerce strategy to compete. Many retailers face the prospect of closing down, and for the anchor tenants, they are factoring E-Commerce into their overall strategy and thus...

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Exploring Dollar Cost Averaging Versus Other Strategies

This week, one article that was pretty heavily discussed was on the concept of dollar cost averaging (DCA). The article states that the returns, based on the recent historical results of dollar cost averaging into exchange traded funds (ETF) is not too good. A better implementation would be to dollar cost average only when the price of the STI ETF is below the average. “I took monthly closing prices of the ETF over the 9 years and found that the average price is $2.977. I would then do a dollar cost average strategy only when the ETF is below...

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This Befuddling Singapore REIT Performance

The Singapore REITs have been rising steadily over these few months. Not all of them. If you check out the REITs on my Dividend Stock Tracker, the hospitality REITs, Office REITs and the large market capitalization REITs have been doing well. Their dividend yields have compressed to a level that many investors would term it as overvalued. The larger capitalization office REITs have yields of 4-4.4%, which is like 2% above the 10 year Singapore government bond rates. I think this is not uncommon. For sometime, Singapore REITs have command a larger yield spread over risk free government bonds...

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On HDB Housing Related Thoughts. Again

So I saw one of my Facebook friend shared out this article titled Stark Reality: Singaporeans Waking from the Housing Dream. It was written in Jun 2017. And it is long. This article provides: History of the role of public housing Narratives by various parties on this issue over the years Questions from the public regarding the mix signals they are receiving on this leasehold condo-rum Not being inclusive due to the stringent rules Housing affordability versus other countries, with our higher cost of living and large contribution to social security An attack on my friend 15 Hour Work Week...

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The Best Singapore Short Term Savings Account for 2018

Last year, after not bothering with efficiently managing my liquid money for a long while, I decided to take a look at what are some of the short term saving deposits available to us. So my setup for last year was a mixture of: OCBC 360 Hurdle Account UOB One Hurdle Account Singapore Savings Bonds Lion Global Money Market One year has passed and there are some changes. However, most of the plans available to you are still out there. But some of the plans on floating interest rates might start to look attractive. My criteria for short term...

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Singapore Savings Bonds SSB Feb 2018 Issue Yields 2.04% for 10 Year and 1.55% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund.   The Jan 2018’s SSB bonds yield an interest rate of 2.04%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) $10,000 will grow to $12,062 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. You can find out more information about the SSB here. Note that every month, there will be a new issue...

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My Annual Review of 2017 and What to Expect in 2018

Annual reviews are a time where you take stock of what you did well in the past year, where you did not do so well. We seldom like to write diary posts like this but at least some things have to be forced upon ourselves (you are not a blogger so you do not have to publicized it!). I have even friends who write these annual financial review for their spouse for financial accountability and communication! That is hardcore. This year end, I decide to save the effort by reviewing 2017 briefly, and some of the things that I...

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Annual Expense Report 2017 – $21,723

Expenses report from bloggers are hardly exciting. I have been compiling this since 2014, so this year will be the 4th consecutive year that I been doing this. They say you should get your income up rather than prioritize optimizing your expenses. There is only so much you can optimize. Getting your income up, now that is boundless. So I got my income up a little over time, and while many have start to find optimizing expenses to be time consuming and not worth it as your income go up, I still do it. Because it is easy to...

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Your Insurance Policy’s Participating Fund Returns Compared

We went through some policies such as Aviva’s MyRetirement Choice and OCBC PremierLife Generation showing the projected returns the policy holder could potentially get. Through the article, the biggest determinant of the policy performance is in the investment return of the participating fund. So how is the reality versus projection. We take a look at some historical data today The Return Performance of your Cash Value Policies For the uninitiated, we can group insurance protection into 2 groups: those with cash values those without cash values. Your whole life insurance, limited whole life insurance, insurance savings endowments and universal...

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A Dual Income Couple Should Live on Single Income (And Why Dual Income is Not Always More Financially Stable)

There is a topic that is taboo among men. And their wife often brings up to them. “Can I be a stay at home mom?” “Can I enjoy a Tai Tai lifestyle?” To men, a lot of times this is out of consideration. Except for the rare few that actually considered it seriously, planned it, and tried to execute it.  (Read How a Singapore couple juggles having $2 million retirement goal and letting a spouse stay at home) The cost of living has gone up so much that, on the surface, not having two income seems impossible for survival. If...

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Some Corrections to ComfortDelgro’s Valuation Done Previously

Back when ComfortDelgro’s share price was around $2.04, I wrote a comprehensive analysis about it. In the article, I went through a few rounds of discounted cash flow to see at current earnings, cash flow scenario, what is the estimated intrinsic value given the growth rate and the discount rate. I also did  a reverse discounted cash flow on it. I think not many people delve deep into the figures except for probably a few. Rusmin from Fifth Person was the rare few that gives me a conservative value, and I was thinking why is it so low. Another...

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$200,000 in Investments at 5% Yield Gives you $10,000 a year. What is the Hidden Complexity?

This is a question about whether we are missing some deeper factors in a very simple wealth building idea: Assuming an individual has $200,000 in investments and it is generating 5% dividends a year. Is it right to simply assume that the person will receive $10,000 of passive income a year which amounts to $833.33 a month ? Or should the calculation be more complex than this? I tried to understand this question and so here is my interpretation. My reader is trying to find out if the formula is REALLY that simple. So here is my take. If...

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Frasers Commercial Trust Jointly Acquires Farnborough Business Park

On Dec 14, Frasers Commercial Trust (FCOT) announced that, together with parent Frasers Centerpoint Limited (FCL), will jointly acquire a prominent business park west of London. The Business Park is valued at 175 mil pounds (SG$315.6 mil) and would be acquired by the JV  at 175 mil pounds (SG$315.5 mil). FCOT will pay 88 mil pounds (SG$158.7 mil) for their 50% share. Any outstanding rent free incentives granted by the existing owner of the property will be paid to the JV. There is a car showroom that will be completed in Jan 2019. The existing owner will pay a...

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