Author: Investmoolah

When can Whole Life Insurance be better than Term Insurance?

The topic of buying Life Insurance popped into my mind again recently when the Straits Times covered a topic of how Insurance Product options have expanded online and how it can be purchased without the need of going through agents. So perhaps it is a good time to re-evaluate when Term Insurance is better; and when Life Insurance is better. Previously, I did a short write up of the common types of Insurance shown which can be read here. Hence if you need a basic understanding of how Term and Life insurance works, you may read it before continuing this...

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Spend Less on Bubble Tea if you want to be rich and healthier

Most people would have heard about the money hack on cutting back on Starbuck’s latte to increase your savings. Some will have recently heard about Australian’s Millionaire Tim Gurner rant on Advocado Toast and how it is making millennials poorer. Locally too, we have a beverage (food) that is making Singaporeans poorer. The Bubble Tea Initially, I wanted to paste a picture of LiHo’s or Gong Cha’s Bubble Tea; however to avoid potential lawsuit for damaging their business, i guess better not! So down to the facts. The Bubble Tea is a favorite Singaporean beverage and costs about $3- $3.50 per...

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A review of Starhub’s Dividend Sustainability

From my previous post on Starhub on Feb 2016, I asked about the sustainability of the company’s 20 cents dividend policy on a cash flow basis. You can read the previous article here. Since then Starhub has reduced its dividend policy to 16 cents annually. This means Starhub has to generate $277 Mil of cash to deliver its 16 cents dividends. What has happened? Since then, Starhub has experienced 2 events. Firstly, the issuance of a s$200 mil perpetual securities with a 3.95% yield. In my opinion, the proceeds from this perpetual securities is likely to be used for to repay Starhub’s...

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Is the Lease Buyback Scheme a worthwhile option to monetize your home?

Came across a blogger’s post about the Lease Buyback Scheme (LBS) available at HDB. This pique my interest and I decided to check out its info graphics at HDB’s website. HDB Info graphics Quoting directly from HDB’s website its example of LBS. This is what I get below. Source: HDB Lease Buyback Scheme (as of 28 July 2017) From the Info Graphic, we can infer two assumptions: i) a 65 year old flat is valued at $450,000 and ii) at the tail end of its 35 year lease, the HDB flat is valued at approximately $190,000. Let’s delve into the...

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How a trip to Courts offered me Personal Finance Lesson and its Company model

Recently, my laptop that had accompanied me since my last year of university has been acting up; a sign that a tech refresh to a new laptop may be needed. So I was off for a window shopping trip to identify a laptop good for writing and reading annual reports. Flexi Plan (which will put you to ruins) One of those that caught my eye (because it was literally big) was a Lenovo 15.6″ inch laptop. It screen size was big and ideal for staring at annual reports and investing forum. Not sure if it was reasonably priced, but...

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Low Oil Price for a Long Time

Let’s face the facts: Low oil prices are here to stay for a while. Despite OPEC’s commitment to continue supply cuts until mid 2018, the world is still producing more oil than it needs (similar to our local property oversupply and global container ship glut). In addition, Singapore is now set to be one of the largest “parking lots” for large crude oil tankers as covered in this article. In my opinion, low oil prices are expected, to 2019; because i) oil supply outstrips global demand due to production increase by USA and Nigeria and ii) the need to draw down...

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Candy, Decision Fatigue & Habits

Ever wondered why most candy products are placed near the cashier? Well there is a psychological explanation behind it and that is “Decision Fatigue”. The idea is simple: During a consumer’s journey through the supermarket, he/she would have made numerous decisions such as the items to buy, product to choose etc, this in turn reduces their mental willpower making the subject susceptible (tempted) to temptations. Aided partly by the colorful visuals of candy packages (stimuli), the consumer succumbs to the temptations and we engage in impulsive buying which harms our financial health. This blog is not going Psycho! So...

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Review of First Ship Lease Trust (FSL)

First Ship Lease Trust (FSL) is currently the only listed shipping trust on SGX, in recent times, the market value of FSL has fallen 35% from a market value of s$102 in million to s$65.5million. This was due to the negativity of the shipping industry and market’s apprehension on the trust’s inability to refinance its debts.  Business  FSL owns a fleet of mainly tankers and 5 container ships and lease them out to shipping companies for revenue. While we tend to associate shipping to the container or dry bulk segment, FSL is more exposed to the tanker segment; with...

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Short Portfolio Update

Just a quick update to my portfolio because there has been a flurry of activities. Sale of Hyflux Preference Shares Sold all Hyflux Preference Shares in my CDP to realize an approximate 10% gain. I managed to “pick some pennies” on this company debt instrument and have decided to allocate my capital to the below 2: Memtech International The thesis for Memtech was pretty simple. It is in the same industry as Fischer Tech and Sunningdale. With its strong cash position and cash flow generation ability, the price which i purchased at 0.705 seemed a good steal. Furthermore Memtech...

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Your HDB Flat is a Depreciating Asset (eventually)

Recently, the stark reality about the value of our HDB flats was reiterated by our current MND minister, Mr. Lawrence Wong – where upon expiry of its lease, your flat will be returned at zero value to the State via HDB. The Straits Times too has been unforgiving with its relentless churning of articles on the topic of “Lease Expiry” with its latest article on private estates nearing the end of its lease and residents distraught. Hard Truth   A few investment bloggers and investing forum had been harping on the fact that many properties in Singapore are leasehold...

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March 17 Portfolio Update

It has been almost 2 months since my last portfolio transaction updates. So here goes: World Precision Machinery   The “No dividend” announcement was bit of a shocker to me. My main thesis to invest in World Precision was due to its consistent declaration of dividends. Therefore, i took a chance to divest it when someone was offering to buy it at 0.235 after the full year results. This allowed me to clock in a 7% return. First Ship Lease Trust   This was another company hit by negative news via comments made by its auditors. However, when I...

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Lesson from Ezra Bankruptcy: Asset Rich, Cash Flow Poor

By now, some of you would have read Ezra’s filing for bankruptcy protection in the United States. Previously a billion dollar company, Ezra’s fall from grace was due to the fall in oil prices. Nevertheless here are a few things we can learn from it. 1) Cash/Cashflow is key One reason for Ezra”s decision to file for bankruptcy was due to its inability to pay creditors. The reason was simple – Ezra’s assets was neither generating sufficient cash flow to meet its daily expenses nor did it have enough cash reserves. If one were to examine Era’s balance sheet...

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Portfolio Update Feb 16

Since my previous portfolio update, I have made a few more purchases. The first was the purchase of Broadway Industrial at 0.195. The thesis is pretty simple because I am hoping for a bumper dividend from completion of its “Foam Plastics and Flow Control” Segment. I am hoping its one off high dividend will attract investors attention and push its stock price up. Thta is where I will evaluate my position.  The Second purchase was World Precision Machinery at 0.22. Its business is in the metal stamping industry and is based in China. It is a subsidiary of Bright World...

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Owning a Car in Singapore can make sense

Fellow Blogger, Bullythebear, covered an interesting concept he read from ‘Tools of Titans” by Timothy Ferris. It talks about weighing the utility of the extra time gained from spending an extra dollar to get it. This concept reminds me of constant conversations about how a car is a tool of convenience through saving time. So, I will be using a mathematical approach to show when owning a car in Singapore may make sense. Cost of Owning and Maintaining a car Firstly, lets find out the approximate expense of owning a car for 10 years. I used the price of...

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How to be a millionaire through Stock Investing by 2017

Dear Readers & Fellow Bloggers,   I am neither hallucinating nor suffering from permanent brain damage as I write this post. I have stumbled across a company on the SGX where you can indeed earn a million ( if you believe the management & auditors). Introducing China Sports International About China Sports International A China Company which sells Sports & Apparel products in China under the brand name “Yeli”. The company’s current market capitalization on the SGX is s$9.228 million. Its current auditor is RT LLP. How To Make a Million Before you guys get too excited , lets...

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