Author: Investment Moats

Learning to Invest in Individual Stocks & Proper Portfolio Management with Investment Quadrant 3.0

I been known to wear many hats, from writing about personal finance, index investing, wealth management, financial independence and commentating on all the affairs surrounding me with regards to money. The way that I been doing my wealth accumulation is through active individual stock investing. What that means is that, I spend my time prospecting the stocks in Singapore, Hong Kong to find stocks that I can invest for long term, to speculate on the short term in order to accumulate my wealth. As part of demonstrating the great benefit of my Stock Portfolio Tracker, you can have a...

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Lippo Malls Indonesia Retail Trust Annualized Dividend Yield Goes Back Up to 11% from 6%

One month ago, I wrote two blog post on Lippo Malls Retail Trust (LMIR).  The first post is on their challenging acquisition of Lippo Mall Puri. This would likely be finance by a mixture of debt and equity.  The historical dividend yield, prior to the announcement, was around 10%. This purchase, with income support, is not going to be dividend yield accretive. Subsequently, some readers have questioned whether we should be using the historical dividend per unit of 2.05 cents in our analysis. After all, the dividend per unit for the last quarter, if you annualized it, is only...

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Should You Leverage Up Your REIT or Stock Portfolio?

After the large DFA article last week, I do not really feel like writing a lot of stuff. There is probably a lot of other stuff I need to catch up upon then to do one humongous article every week.  So this week one is a little breather. It is some numbers that I ran some time ago.  I think I decide to bring it out.  There is emerging trend of experts teaching folks to build wealth with the aid of leverage. Leverage means, using other people’s money, in a lot case the banks money, to aid you in...

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Be Careful not to be Addicted to Large Mobile Data Usage from Recent Promotions

If you are re-contracting your phone plans in recent months, you would have observed that your data bundle have gotten real attractive.  This is probably the result of intense competition due to entry of a 4th telecom operator TPG. Before, they start offering their paid package, and as they are testing out the quality of their network, the incumbents are starting an intense price war.  Not just that, the mobile virtual network operators (MVNO) such as Circles Life, Zero, MyRepublic and Zero1 are also offering some really competitive packages.  As a consumer, this is a good thing because these...

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The Potential Impact of CWT International’s Loan Default to Aims APAC, Cache and Mapletree Logistics

In Dec 2017, Chinese conglomerate HNA Group acquired all shares of CWT Ltd to successfully acquire CWT for S$1.399 bil. Since they were acquired, CWT has been combined with other assets and listed as CWT International and subsequently listed in HK. Yesterday, CWT International said it defaulted on a S$179mil loan and it has less than 24 hours to pay the funds or lose assets pledged as collateral. They have not paid accrued interest and fees worth HK$63 mil to lenders. The lenders will take possession of the assets if the amount due is not paid by 9 AM...

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Should Singaporeans Invest in Dimensional Fund Advisors (DFA) Funds? My Comprehensive Take

Back in the days when I was investing in funds, I had this problem of finding the ideal low cost unit trusts that I could invest in. In Singapore, there was not a lot of solutions. Back in 2003, exchange traded funds was not prevalent yet, and have not developed into the mindshare that they have now.  The books and research that I had carried out leads me to conclude that for investing to work out well, we need to respect the cost that we pay for our investing solutions, and that it is damn tough for active fund...

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On Teaching Financial Literacy to Kids and Giving Back

Sometimes I wonder if those folks who said that they are financially independent yet still teach a course that charge 4 digits are actually financially independent. They probably are not so independent yet. It is easy to justify to yourself that people are paying for “your expertise” and you are “delivering value”.  I had this conversation with a friend of mine on this industry. He was asking me what the fx#k are these people who ran these investment courses doing? If they are so good at what they do, their method work, can compound the money, why do they...

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Infinity Global Stock Index Fund – the Wrapper Fund for Vanguard Global Stock Index Fund in Singapore

I first introduce the Infinity Global Stock Index to readers in 2014. 5 years later, I think it makes sense to do an update since the landscape for passive investing have changed.  One way to build wealth, but don’t want to actively manage it, treating investing as a form of accumulation is to passively invest in a diversified portfolio. And one of the best way is to invest in a diversified portfolio across the world as if you are purchasing a group of the stalwarts around the world. If we know that it is hard to pick the right...

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Singapore Savings Bonds SSB May 2019 Issue Yields 2.16% for 10 Year and 1.95% 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 May 2019’s SSB bonds yield an interest rate of 2.16%/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 1.95%/yr. $10,000 will grow to $12,169 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

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Why Financial Security is a More Worthwhile Pursuit than Independence

My friend Christopher Ng tried to scope the problem that Financial Independence is trying to solve.  Without a monster, there is no use for a powerful sword. So we need to find that monster. And he framed the problem this way: the emergence of the gig economy retrenchments are affecting younger workers compared to the past your salary will become lumpy as work becomes projectised you will come under pressure to retrain and it would be a fight for survival life gets better for a while, then it starts to suck I look at the problem and its not...

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It can be quite Hard to Rent out a Sale and Leaseback Property Upon Expiry

When a long term tenant of your property decides to leave, this might create a problem for the landlord.  In some cases, your tenants go bankrupt halfway through the lease and could not pay the rent, despite that there is a contractual obligations to do that.  You would have the headache of trying to find new tenants for the property.  And if you cannot find one, you do not get any rent for the vacant period. These are some of the trials and tribulations if the company you are invested in, decides to acquire a property in a sale and leaseback...

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How your Obligations to Yourself and Others affect your Wealth for Financial Independence

Back during my army days, we would meet all sorts of different characters.  I guess that is the same for you as well. It is good exposure for a sheltered JC kid to mix with people on the “other side of the track” to learn from their experience. Our team, for some reason happened to have 2 batches of NS boys who were from JC background. And one member who did not complete Poly.  And he is one colorful character.  Colorful things but many things best not shared on Investment Moats. The cleanest, most tattoo-less Ah Beng. Probably teaches...

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Providend is looking for an Associate Adviser. You might fit the Job

As my readers, I guess you tend to be a more financial savvy bunch.  You understand why we need to manage our money well You have manage to create a good wealth foundation You have started accumulating your wealth You like diving deeper into the topic of wealth management, protection and accumulation You are the resource for your friends whenever the topic of money comes up  You are rather good with people Some of you might see yourself leaving your current job, which you are less enthusiastic about, or going nowhere, for a job that matches your interest better. ...

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Singapore Airlines SIA issues a Safe 5 Year 3.03% Retail Bond – My Take

Seems the prediction is shaping up really well.  After Astrea IV 10 year 4.35% and Temasek 5 year 2.70% bonds, SIA followed their cue to release a retail tranche for their just announced bond issue.  SIA will be releasing $500 mil worth of bonds, with the public being allocated $300 mil out of this and the rest going to institutional investors. Should the bond be oversubscribed, they will expand it up to $750 mil. The minimum denomination is $1,000 which makes it affordable for most people. And you can apply it at your ATM or through internet banking like...

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Did I (and Lippo Malls Retail Trust’s Manager) used a Distributable Income that is Too Optimistic?

So after I wrote the Lippo Malls Retail Trust Proposed Purchase of Puri article, some more astute readers in the REIT Telegram group commented that their latest distributable income is much much lower than previous quarter. Indeed they are right.  Figuring out these rights issue stuff is rather challenging so I based a lot of my figures on the guidance in the announcement. They used a distributable income and so I based my analysis off it.  Totally didn’t check if that income is sustainable. And that really impacts because for the past years, LMIR’s cash flows have been volatile. ...

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