Author: (The) Boring Investor

Investing Is Not A Bed Of Roses

Do you walk away with the idea that investing is easy after reading investment blogs? That all you have to do is to invest the money and the returns will roll in on a regular basis in the form of dividends? In a way, I am guilty of this as I subconsciously relegate blog posts on how to survive a bear market to the back. After all, who would be interested to read blog posts such as “How to survive a harsh winter” when the season now is summer? Investing is not always easy, especially during the depth of...

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All I Want Is To Invest Wisely

I work in the engineering industry. Many of my colleagues and friends know that I blog. However, not many actually read my blog. It was only recently that some of them feedback to me that my blog is a little too difficult to comprehend. If I could distil what they probably want to read, it would be this: “All I want is to invest profitably”. However, since nobody can guarantee that investing would be profitable, the next best thing would be “All I want is to invest wisely”. To understand how you could invest wisely, first of all, let...

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The Bull-Bear Tug of War

I really liked the series of posts on asset allocation started by Derek and followed on by a few other bloggers. Unfortunately, I was busy with the privatisation theme then and could not participate. So, here is my post on the issue. To make up for the late posting, I added a few notes for readers’ info. I have been tracking my asset allocation since 2001 and the figure below shows the asset allocation at semi-annual intervals since then. Semi-Annual Asset Allocation Each column shows the asset allocation at the stated point in time. The assets are arranged such...

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Daughters Are Generally Prettier Than Mothers

There are a couple of mother companies and child subsidiaries listed on the Singapore Exchange (SGX). For the sake of this blog post, let’s call the mother companies “Mothers” and the child subsidiaries “Daughters”. Generally, are Mothers or Daughters prettier? For the measure of beauty, let’s not use price as the yardstick, as beauty is often in the eyes of the beholder. To value investors, beauty means a low price while to growth investors, beauty means a rising price. Instead, we turn to more objective measures of beauty that both value and growth investors can agree on, namely, Return...

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Striking the Privatisation Lottery 4 Times

I am not sure if you have read the letter that I sent to Today, which was published on Tue (27 Jan). Here is the link if you have missed it: “Review Wave of Delistings on SGX“. Coming back to the topic, how many times do you hope to strike lottery in a year? For me, I struck the privatisation lottery 4 times last year (based on date of announcement of the offer)! Below is the list of lotteries that I struck: CapitaMalls Asia (privatisation at $2.35)1 STATS ChipPAC (takeover at $0.466; sold) UE E&C (privatisation at $1.25) CH...

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Poker Game Over CH Offshore & UE E&C

After the last poker game (i.e. privatisation offer) with Capitaland over CapitaMalls Asia in Jun last year, I was invited to another 2 poker games, this time over CH Offshore and UE E&C. How should I play these 2 poker games to extract maximum value from them? CH Offshore This game should end very soon, with the cash offer from Falcon Energy at $0.495 expiring on Mon at 5.30pm. The Independent Financial Advisor recommended that shareholders should reject the offer or sell the shares (if they so wish) in the open market if they could get a higher price....

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My Investment Trends for 2015

Last week, I blogged about the Changes to My Investment Strategies in 2014. This week, I will share what are the likely changes in 2015. Dividend Stocks Generally, I am not a big-time investor into dividend stocks. This is because I am predominantly a value investor. Value investors seek out undervalued stocks so as to make capital gains when the stocks recover to their intrinsic value. Whatever dividends paid out is a bonus and a side-product of the investment strategy. When I firsted started investing, the dividends collected were very small. However, as my capital grows over time, the...

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Changes to My Investment Strategies in 2014

With the start of the new year, it is good to take stock of the changes made to my investment strategies in 2014 and the likely changes coming in 2015. Looking at the list of changes below, it is amazing that I still have so much to learn despite being an investor for so many years. Here is the list of changes in 2014. Turnarounds I seldom invest in companies that are making losses. Most of the time, if they are loss-making, it is because the business conditions turned sour after I had invested in them. However, turnaround companies...

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Dogs and Puppies of STI for 2015

This time last year, I blogged about the performance of the “Dogs of the Dow” and its sister “Puppies of the Dow” investment strategies as applied to the Straits Times Index (STI). I also identified the Dogs and Puppies of STI for 2014 as follows (you may wish to refer to The Dogs and Puppies of STI for more info). Puppies of STI 2014 CapitaMall Trust HPH Trust SingTel SPH ST Engineering Other Dogs of STI 2014 Jardine Cycle & Carriage OCBC SGX SIA Engineering Starhub So how have these Dogs and Puppies of STI performed in 2014? The...

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My Oil Stock Adventures

I never realised I had so many oil-related stocks, until nearly every one of them started to tank. That is the problem with a bottom-up approach to stock investing; you might not realise how concentrated you are to a particular industry. The list of my oil-related stocks (prior to the mini-crash in Oct) is: MTQ, ChinaAvOil, PEC, Rotary and CH Offshore. During the mini-crash in Oct, I had picked up CSE Global and averaged down on MTQ, not realising that oil prices were falling steadily. It was only in late Nov when OPEC decided not to cut production did...

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Minimising the Costs from SRS and CPF Investments

Thanks to owq’s and Uncle CreateWealth8888’s comments to my previous blog posts on SRS Exit Strategy and Maximising the Benefits from SRS, I had omitted to mention, for reasons discussed below, the costs of investing through the Supplementary Retirement Scheme (SRS). If you invest in shares and unit trusts, the transaction fees charged by agent banks are $2.50 per 1,000 shares/ units, subject to a maximum of $25 per transaction. In addition, there is a maintenance fee of $2 per counter per quarter. Thus, if you hold a diversified stock portfolio of say, 20 stocks, the costs can add...

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Maximising the Benefits from SRS

In last week’s blog post on SRS Exit Strategy, I mentioned that the Supplementary Retirement Scheme (SRS) would benefit most investors except for super-investors in lower-income groups who could grow their portfolios by leaps and bounds. This is actually only a high-level analysis. The truth is, everyone, including the super-investors mentioned above, could benefit from SRS at some stage. Before we go into the details, let’s recap this chart from the previous blog post, which shows that super-investors in lower-income groups actually benefit less from SRS compared to fellow investors in the same income group who do not invest as...

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SRS Exit Strategy

The Supplementary Retirement Scheme (SRS) was started in 2001. I first learnt about it around 2003. Still, it took me a good 3 years before I made my first contribution. The reason? I had not figured out an exit strategy from the SRS scheme. Although SRS contributions are tax-deferrable and only 50% of the withdrawals after the age of 62 would be taxed, there was a lingering concern that I could still end up paying more tax if I could achieve a good rate of returns on the SRS funds. After 8 years of contributing to the SRS account,...

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Fishing for Future Generations

This is a follow-up post from last week’s post on Building A Lasting Portfolio for Future Generations. As rightly pointed out by some of the readers, creating and maintaining such a portfolio across generations is not going to be easy. But when you think about it, how many skill sets are easy to transfer to the next generation? You might be the best engineer/ doctor/ lawyer etc. and make lots of money based on your skills, but how easy is it to transfer those skills to your children so that they too are going to be the best engineers/ doctors/ lawyers,...

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Building A Lasting Portfolio for Future Generations

It is often said that the earlier you start investing, the more you have for retirement. This is because you have a longer time-span for compounding to take effect. A typical investment life-span is about 30 years, so for a portfolio that can provide 4% real returns (or 7% nominal returns) annually, $1 at the start of 30 years will become $3.24 at the end of 30 years. However, if you can pass down the portfolio intact to your children who can continue to invest for another 30 years, $1 will become $10.52 at the end of 60 years....

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