Author: STE's Stocks Investing Journey

4th Qtr 2019 : Dividend and Portfolio Update

  It has been almost haft month since my last blog post on 2nd November, I am really lazy to write anything recently while spending more time with family since early Oct after my daughter finished her PSLE. We have our short trip to Penang / Melaka / JB and also spending few days backed to my hometown and we really look forward to our next trip to Hokkaido in early December. I hope...

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What Would Negative Interest Rate Mean For Investors : A Memo From Howard Marks

Howard Marks, founder and co-chairman of $122 asset manager Oaktree Capital Management and author of many best selling books ( including the recent one “ Mastering The Market Cycle”) had just published his latest memo. “And that brings us to the subject of negative interest rates.  I find them no less mysterious.  The fact that we know what they are – as we do with inflation and deflation – doesn’t alter the fact that we don’t know for sure why negative rates are prevalent today, how long they’ll continue in force, what might cause them to turn positive, what their consequences are,...

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Eagle Hospitality Trust : A Case of Narrative Economics

“Disclaimer :The information provided in this blog is for general information purposes only and not a recommendation to buy or sell stocks mentioned in any blog post.( Warning!! Writer owns share in Eagle Hospitality Trust, information & views provided may subject to bias in view of stakes he have in the company.” I recently ordered a book from Book Depository called “ Narrative Economics : How Stories Go Viral and Drive Major Economic Event ” by a Nobel winning economist “Robert Shiller. Who is Robert Shiller and what is Narrative Economic ? <From Wikipedia.com > In 1981 Shiller published...

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Personal Updates- 20 Oct 2019

Wow, time flies and it has been quite some time since my last blog post on 28 September. I am also quite busy with two staycations inJ.B and Penang in last two weeks after my younger daughter finished her PSLE exam.  As usual , we spent great time on movies / food / shopping and of course sight-seeing. My last visit to Penang was few years back where we were onboard cruise ship to Phuket, we arranged a day-trip to Penang and didn’t really have much time to walk around. Well, this time round we have more time to...

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0% or Negative Yields Are Becoming The “New Normal”

Would like to share some great articles on “Negative bond yield and QE”…with more and more central bankers lowering the interest rate and implementing more QE, world is flooded with liquidity and resulting  $17 Billion of  negative yielding bond sitting and idling on various financial institution’s balance sheet around the world. With this unstoppable pace of money printing, market will become more volatile… all conventional methods of assets valuation will also become obsolete… you may notice that it will become “new normal” for some S-REITs to have yield lower than 4% (especially from those with stronger sponsor like Mapletree or Capital...

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Keppel DC REIT : Wow ! Wow ! Wow

Congrats !! for those invested in Keppel DC REIT as share price shoot up to $2.13 as of closing on last Friday. It’s about +21% increased vs price prior asset acquisition and equity fund rising announcement on 16th Sep 2019. I am not so sure if the new acquisition will give a DPU boost by more than 21% , else why there is a sudden change in perception or valuation for such asset class REITs after the announcement. F.O.M.O ? T.I.N.A ? or The Sky’s The Limit ? By looking at the pace and % of the price increases...

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President Trump : Make America ( STI Index ) Great Again !

Not All Index Are Created Equal I think most of us are using Index as bench-marking against our portfolio’s performance and from time to time, we often hear about buying index as kind of passive investment. Some financial advisors are even proposing “DCA” or dollar cost averaging for Index with “buy and hold” strategy. “The average annualized total return for the S&P 500 index over the past 90 years is 9.8 %.” Guess this is the most “eye-catching” phrase that often mentioned in the news which is also the most powerful words to attract investors pouring billions of dollars...

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七线谱:四大天王( China Big Four Banks)

The big four also the world largest in term of total assets base on 2018 S&P Global Market Intelligence report . FYI, DBS rank 71th with total asset of approx. USD$388 Billion.  <Source: Wikipedia.com> “In December 2017, the International Monetary Fund published the results of a stress test, which looked at the performance of China’s banking sector. It found that 27 out of the 33 Chinese banks it assessed would not meet capital requirements in the event of a major shock. The six banks that did meet the requirements included all of China’s big four banks – ICBC, Agricultural Bank of China,...

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七线谱 : HSBC and HKG Land

Millions of people have taken to the streets of Hong Kong over the past few months as protests against the controversial extradition Bill grew into violent clashes between police and protesters. What began as a targeted protest against a controversial extradition bill in June has transformed into what feels like a battle for the future of Hong Kong. While things still unfold for the event, but it has caused billions of dollars as business been disrupted, billions worth of IPOs been scraped and conference & trade fair have been postponed or cancelled. Hong Kong stock market ( Hang Seng Index) plunged...

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Keep Calm and Collect Photos ( Dividends )

Stock Market Volatility Is Normal Feeling like markets are more volatile than ever? Yes ! Indeed. For many investors the stock market swings over the last few months have been scary and provide fresh reminders of the 2008 meltdown. In some cases, prices on the Dow could move up and down by +/- 500-800 points within a day, depending on how market reacted to “tweets message” from President Trump. :D When markets go on a wild ride, it’s understandable that we feel uneasy and wanted to get out of it when index down by few hundreds points and wanted...

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3rd Qtr 2019 : Dividend and Portfolio Update

US stocks went into a free-fall on last Wednesday after the bond market stoked fresh fears of a recession ( due to inverted yield curve for US 2 years bond vs 10 years bond ). The Dow Jones plunged 800 points — a sharp departure for a market that had very recently been hitting record highs. Same for STI Index, as world stock markets are so intertwined with each other nowadays, although STI index is not so high in term of valuation , but when US market tumble , we can’t escape and sure have some repercussion and price reaction. Hence,...

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Happy 54th National Day 2019 !!

 Wishing all a Happy 54th National Day 2019 !!  Article Of The Day : “First of all, it’s impossible to know exactly what to make of negative interest rates in government bonds around the globe for the simple fact that it’s never happened before. There is no historical precedent for this. Anyone who tells you they know how this will transpire is a maniac. Predicting interest rate moves is notoriously difficult.…” Re-thinking stock market volatility. Dividends are one of the most underappreciated aspects of the stock market. They offer investors a unique income stream if you’re able to get over...

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Want To Beat The Market ? You Need To Know This !

Would like to share this great article on subject of “Regression to Trend/Mean”:    “About the only certainty in the stock market is that, over the long haul, over performance turns into under-performance and vice versa. Is there a pattern to this movement? Let’s apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We’re using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range.” As I...

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Can You Beat Warren Buffett ?

Is it possible to Mimic Warren Buffett’s Investment Returns ? Every investment manager (or even retail investors like you and me) admires Warren Buffett’s investment returns. But is it possible to copy Warren Buffett’s investment strategy?  While most of us desire Buffett’s results and try to mimic his investment approach by reading books written about him and attending courses that try to emulate his strategies. Can we really mimic his investment returns?  The answer is of course NO. We Live in Different Generation Because other than having “superb & extraordinary “ skills in picking undervalue stocks ,obviously , Warren Buffett...

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A Money Printing Machine That Generates $69.8 Mil A Day

In my last blog post , I talked about “The Power of Free Cash Flow” , the important of having consistent and sustainable free cash flow for companies which would allow them to pay dividend or buying back their own shares. Imagine if there is a company that could generate $68 MIL a day , do you think such company exist in world stock market ? Yes ! It’s Berkshire Hathaway (BRK ) and it was sitting on a massive cash pile at the end of 2018 and the cash continue to increase quarter by quarter in billions of dollar.  BRK is...

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