Author: Investment Moats

Try not to Play Games Until You Do Not Know How Much You Had Spent. Especially if its More than $2,000

Every spend a lot on games? Before a lot of the free to play games come into the picture, we have to spend $30-$100 to buy a title of game in the old days. Then, we have these free to play games. The beauty of these free to play games is that: you do not know where the game ends for you. You either get addicted or resonate with it or you give up fast you get tired of grinding, or some obstacles that is just so tough that you pay money for it for the materialistic folks like...

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The Great Appeal of Semi-Retirement vs Financial Independence

After reading much literature on the topic of retirement, financial independence and various sub discipline on the topic I lean closer to the view that what people are looking for is a more balanced life. Less stress, more family time, doing work but not at such a frantic pace, not a constant worry about money. With this regard, financial independence is meaningful to pursue, but could ultimately proved challenging for sum to achieve given their circumstances. Given that you are above middle income, this pursuit could be far easier than others. Pursuing a scheme where we work in reduced...

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Keppel DC REIT Extends Dublin 1 Land Lease to 957 Years more with 30 mil Euros

There sometimes is a theoretical debate whether when leases expire, concession ends, do the land title or ownership hands back to the owner. Often the owner is government or another company that owns the land title deeds. Yesterday Keppel DC REIT, one of Singapore’s unique REIT that focus on data center with long lease to tenants, acquired the rest of the 999 year lease of a data center they currently own in Dublin, Ireland. The total consideration was for 30 mil Euros or S$48 mil. Completion is expected to be in 2020. Keppel DC IPO in End 2014, so...

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A Lot of People Should be Shot for this Integrated Shield Plan and Rider Mess

My private hospital and surgical health insurance (H&S) premiums have been through the roof. So much so that at the age of 37, I am partially paying cash with it. And now, the health ministry announced that those who are on these H&S plans with comprehensive rider that covers all the cost would have to share the financial burden with the insurance company. I am not sure whether I am affected. I do have a rider that covers the co-insurance but not the deductible.  Based on what is written, it seems I am affected. I do know one thing....

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Reader Question: The Best Strategy to Save Up $80,000 in 4 Years for Young Adults Greatest Needs

I receive this question from a reader. Every time I receive posts on people planning to get married it makes me happy that the majority of Singaporeans are heeding the call of nation building. We have a 30 year old chap writing in about the strategy that he should take to ensure he doesn’t miss out on the opportunity and find the most efficient path to build up $80,000: After reading most, if not all of your articles and I start saving money in 2017, in general, to be able to embark on my wealth accumulation journey in 2018....

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Sales Charge on CPF Investment Scheme to be Removed. Wrapper Fee to be Reduced.

Singaporeans who have CPF accounts may be less pushed with investment products. Singaporeans generally do not have a lot of cash flow to invest. Their main source of investible funds tend to be their CPF ordinary accounts. And it is these funds that are often preyed upon by financial advisers. According to the recent announcement that there will be a reduction in the sales charge for new purchases of CPFIS products from 3 per cent to 1.5 per cent from Oct 1. The sales charge will be removed entirely from Oct 1 next year. The aim is to remove...

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No One Can Teach You Conviction. You need to Acquire It Yourself

One of the biggest stock disaster for myself in recent memory was my speculation on AEM Holdings. The Semi Conductor Stock did some R&D work with Intel and AEM started producing for Intel with Intel being their big customer. In a lot of ways, AEM sounded like UMS holdings in its infancy stage in 2010-2011 when it carried out the capex which eventually brought online its production to its sole customer Applied Materials. In terms of valuation it was cheap, but I had enough reservations about AEM. For one thing, the people being AEM are private equity. Looking back,...

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Singapore Savings Bonds SSB Apr 2018 Issue Yields 2.31% for 10 Year and 1.42% 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 2.31%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.42%/yr. $10,000 will grow to $12,340 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A...

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Dividend Machines Course Online Now – Taking In the Batch of 2018

At some point in my investing journey, dividend investing became something that I identified with. Dividend investing has a lot of appeal, and I think the reason is that people likes to be validated that they are slowly getting a cash flow payout from their investment. This has a lot of similarities to the Asian concept of owning land and leasing out to farmers to grow crops and living off it. It is a very passive form of income. At this stage of investing, I wouldn’t compartmentalize the way that I invest to be called dividend investing. I prefer...

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Taming Portfolio Size Risk

Your portfolio will get to a certain size that, if you do not manage its exposure to volatility, your portfolio might not be able to last long to generate adequate cash flow for your use. I seen a lot of good investors, and mediocre investors generate an astounding rate of return these past 10 years. The reason they could do that can be a mixture of good investment processes and also favorable luck. What I noticed as well is that their portfolio tend to be concentrated as well. They put in the effort to prospect, watch the stock carefully,...

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A Chinese Conversation on the Attitude to Money (and a Little on the Attitude to Freegan Lifestyle)

There is this show on Singapore Channel U that is my staple entertainment when I was waiting for my TCM doctor. Voices 听我说 is a show where the 2 hosts bring a panel of guests to discuss a particular topic close to heart of Singaporeans. And in last week’s show, they discussed about money. As seasoned readers of Investment Moats, a lot of the concepts won’t be new to you. However, I do find myself surprised by people’s willingness and philosophy when lending money to good friends and people they do not know. Particularly, the seemingly most rational money...

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A Moderate De-Construction of Investing in Interest Rate Sensitive Assets in Rising Rate Environment

In a world that is clamoring for extreme binary views, I do appreciate some moderate views on how things might work out if things do not be too extreme. We have an idea that interest rates will rise but how would that affect the investment landscape? The immediate thoughts is that interest rate rise will be bad for existing bond holders, bond fund holders, those holders of sensitive interest sensitive instruments like real estate investment trusts (REITs), telecoms and infrastructure investments. Frank Gelber, the chief economist at BIS Oxford Economics offers some of his views, also noting perhaps you...

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Kyith’s Unfiltered Take on Singapore Budget 2018

I’m glad I do not have to sit through that budget 2018. For all the controversy over MAS paying influencers so that younger Singaporeans have a keener interest in the Singapore budget,  I genuine FEAR what are the drastic things that they will announce. In the end, I  am pretty glad I have the help of friends from the HWZ MTC Chat and some private Chat helping me distill down what the government is going to give us and what the government would take from us. There will be no summary to this article but my take is this...

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If You See the Math, Maybe You would be More Motivated to do Something about your Wealth

Back in 2005 or 2006, one or two short years when I was starting out digesting all these information on investing, I encounter a forum member. He shared with us some of his background, financial situation, family make-up and some of his lifestyle choices. What I distinctly remember was that his spouse and himself was 38 years old and he had a portfolio of $638,000. He drives and lives in a HDB flat. Now back then, I thought its incredibly humbling that someone who has such a high net worth would choose to live in a HDB flat, when...

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SBS Transit sells NEL and Seng Kang LRT to LTA. Moves to Rail Financing Framework. Deal does not look Good

So shortly after I shared some of my thoughts on SBS Transit, SBS announces tonight that they will be selling the North East Line and Seng Kang, Punggol LRT to LTA. SBS will also be transiting to the New Rail Financing Framework. NRFF. The sale consideration is $28 mil, which is a small amount in the grand scheme of things. With the sale, SBS can be truly asset light. The NEL concession was a 30 year operating contract with a possible 30 year extension. This will be changed to a 15 year concession starting in April 2018 with the...

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