Author: Investmoolah

Buying a life insurance policy

For young working adults, the thought of purchasing a life insurance policy is one of the first things we will be approached in our working life. To help out, here are some things to note on life insurance. What is life insurance?   Life insurance provides you a payout upon death or total permanent disability (TPD). The policy can vary from a limited period of time (20 year limited plan) to the entire insured’s lifetime. There are 4 common policies which falls under the category of life insurance – Term, Whole life, Endowment & Investment Link Policy.   When should we buy?...

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What the humble "Bak chor mee" can teach us about investing

Let’s talk about food! Had a bowl of bak chor mee for lunch at the canteen. Well it costs $3.50; let’s be honest, it wasn’t the tastiest bak chor mee in my lifetime but it did give me an epiphany which deserves a post. You see, I have frequented this particular canteen and sometimes I will order the spaghetti bologanise for lunch, which costs $5.50. What struck me was how the time and effort to prepare both dishes are similar – put the noodles in hot water for a few mins, wring it dry, add the sauce (which has...

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Start Saving when we are young

Came across an article today by SGYI and in which a reader has commented the difficulty of getting returns of 12% etc etc.. Guess what, I did write on a similar subject on “the powers of compounding” few months back with realistic settings. Here is an excerpt: “Albert Einstein called compound interest “the eight wonder of the world” and rightfully so. Lets consider an example to illustrate it. Two individuals, Ah Huat and John, enters the workforce at 25. Knowing the importance of saving when young, Ah Huat decides to set aside $7000 yearly from age 25 to 35...

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Local Crowdfunding Expansion and Defaults

March has been an eventful month for the P2P industry with high profile loans being issued. While p2p loans are innovative, there is still one risk that remains – default. Default March too has seen a few defaults. One of which has been covered by another blog. The company is a travel agency who has a few p2p loans. Another p2p default: S Travel Similarly, Moolahsense too has encountered a default on a bullet term loan by one of its issuers. And yours truly too has a late repayment by one of the companies in my p2p portfoilo. What...

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Increasing my P2P portfoilo

This week something historic happened in Singapore’s crowdfunding scene –  a company related to an SGX-listed company sought to raise debt via crowdfunding. It was none other but Epicentre- once famous for selling Apple products. You can read the article here. Epicentre Crowdfunding   It is quite unprecedented for Epicentre to raise funds this way. Prior to this, the company relied on unsecured bank loans which yielded 3+% – 4+%. However, now it is relying on callable and equal monthly installment loans for working capital and purchase of inventory. Looking through Epicentre full year and recent 1H results, my guess estimates...

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Short update to hypothetical and Real portfoilo

Quick Summary In line with my bearish outlook and following from my post, my hypothetical “insurance arm” has decided to sell off all STI ETF holdings at today’s price of 2.83. This means netting a sales proceed of s$1003.90, after  “brokerage fee of Stan Chart and clearing fee rates” Coupled with the 4.6 cents dividend received, Total net proceeds is now $1020.20 and will be placed as cash. A positive 2.02% was achieved. As per my fund restriction, only the STI ETF can be bought and sold. No other equities can be targeted. The transaction has been reflected on my “challenge”...

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Nothing much has changed

On 4th Jan 2016 (the first trading day of 2016), the SPDR STI ETF was selling at $2.90. Fast forward to today, the STI ETF is $2.84 and has given dividends of 5.1 cents. So overall, little loss has been made despite the tremendous amount of news and market gyrations. Nothing has changed since New Year’s Day   That’s pretty much it, nothing much has changed since the start of the year. The narrative is still the same: Oil price is down, some economies in Asia are slowing as expected and wall street is now expecting a few rate...

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Is Starhub a buy for its dividends?

Starhub is the second largest telecommunications company in Singapore. It is part of the 30 components stocks of the STI and a crowd favorite due to its stable business that produces good cash flow. Starhub has committed to reward shareholders an annual dividend of 20 cents in 2016. Sustainability of its 20 cents Dividends Dividends are only sustainable if they are paid from cash flow. Hence, it is apt we start with the cash flow statement. Firstly, lets remember Starhub needs to generate $346 Mil of cash to deliver its 20 cents dividends. From its latest full year results, Starhub has generated...

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Portfolio update- Investing in TTJ and BBR

I have made additions to both TTJ and BBR. The investment thesis is simple: to invest in companies which will benefit from the Singapore government’s infrastructural plan. Given the gloomy outlook of our economy, it is likely our government will commence on some form of expansionary fiscal policy to sustain growth. The most evident way is through infrastructural projects. From BCA’s outlook, 2016 construction industry is likely to be about 27 to 32 Billion (2015 was 27.2 Billion). BUT with about 65% driven by the public sector. We have a few underground MRT lines and depot which will start construction....

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Is Keppel Corp worth its current value?

Since from my last post on Keppel, the stock has “gone below $6.”, which i mentioned will be worth a re look. While it has breached the $6 mark for a while, I had delayed my coverage because I wanted to view KC’s full year results for a better analysis. What has improved Over the past 5 months, two significant events have occurred: Accredited investors have “naively” parted cash to buy 1) Keppel 8 year bonds at 3.725%, 2) Keppel REIT perpetuals at 4.75% and 3) Sale of a $160mil property by Keppel REIT. These events have improved Keppel and Keppel REIT’s cash flow. It...

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Fear and Worried seeing the STI at 2500+ for the first time?

For investors who have started their journey from 2012, this is probably your first time seeing the STI index and the rest of the market in such a state of red. Now, you are likely to be worried and fretting over your investments. Well I can relate to that fear to yours. My first experience It was during the period of July- Oct 2011 that it happened. The European Debt crisis caused almost every market to open in the red each day. Worried and sleepless nights happened and I often refreshed my screen to see the latest numbers on...

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Portfolio Update & Open Challenge to Insurance Companies

Portfolio Update I have sold one of my main holdings in Fischer Tech at 0.90. It has been a wonderful company which I discovered two years back. While the wonderful management has remained, the outlook of the automotive industry Fischer is so dependent on has not. China automobile inventories are building up and this may lead to lower orders. While Fischer is debt free and will survive the downturn, the prospect of declining share price due to declining revenue is why I have opted to cash out. My DIY Challenge Readers will be aware of my love for the “buy term invest the rest” concept vis a vis...

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Compounding Your Money (Hopefully an exam question)

Q1 (Basic). Tom (age 30) invests $1 Million into a fund which guarantees an annual return of 7.2% per year. How much will Tom have at age 50 (twenty years from now)? $2 Million $4 Million $6 Million Answer (2). Using the rule of 72, an investment of 7.2% per year means Tom’s money will double every ten years (72/7.2=10 years). Hence Tom’s money would have doubled twice over 20 years. 1 x 2 x 2= 4 Q2 (Basic). Tom, now age 50, decides to continue investing his $4 million into the same fund which guarantees an annual return...

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Review of 2015

2015 has not been a kind investment year. For this year, investing returns is negative 19.2% (due to the fall in Penguin and writing off fully China Fishery’s value). Despite the negative investment returns, overall value of my portfolio has increased by $19,000 to the region of $238,000. This is due to my tendency of saving a high proportion of income earned from work; this shows why at a young age, saving is a good habit because the magnitude in loss/gain from a small portfolio will be outweighed by the savings we add to it. However, as we get older, inadvertently our portfolio gets...

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Recent Portfolio Transactions

Due to the loss of Office Starter 2010 on my computer, I have not been able to copy and paste my Excel into my portfolio update. This is why my portfolio on this blog has not been updated. Hence, this post is to highlight my recent purchases with a short review behind their purchase. Accordia Golf Trust At the recent low of 50 cents, I have purchased another 10 lots (potential 8% yield at this level). My analysis of AGT can be found here. Kingsmen Creative I have purchased 10 lots during the recent sell down. The company has a moat due to...

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