Author: STE's Stocks Investing Journey

IPO : Tell Me A Story

This year should be a good year for SGX as we have seen many  IPOs in first half of 2017 and as for retail investors , many  should be excited busy pressing button at ATM to apply for the IPOs ,expecting to have some quick bucks if successfully being  allocated with some share. The latest one will be the hottest in the market of “NetLink Trust “ which expected to raise up to $2.6 Bil from the IPO ( detail here ). In such a bullish market , one should expect to at least “ get something “ from the IPOs if they successfully applied for it .  Below quote...

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Portfolio Construction : To Diversify or Not to Diversify ?

As investors, when we think about Risk-Reward analysis, the first thing pop up in our mind automatically will be the word “ diversification”. This is what been mentioned in Investopedia about the importance of Diversification : “Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.” There is also different types of diversification e.g  Asset class Allocation ,...

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1-2-3 To Be A Successful Investor

If you are looking for investing ideas or methods of successful investment , guess you will often hear this in any investment seminars , talks or even encountered this many times in newspaper or blogs , i.e “Investing is simple, not easy” ,the famous quote from our legendary and super-investor Warren Buffet. As human nature , we like to simplify things which is complicated such as investing into simple DIY version of 1-2-3. You may find many articles as below in financial news or portal which simplify the investment ideas or philosophy into point form for easy understanding. ** Please click the underline number if wish...

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1st HF 2017 – Net Worth and Portfolio Review

Had seen many bloggers busy updating their portfolio recently right after the last day of June , allow me to come and join the party. Thank GOD , there was no market crash in 1st HF of 2017 and in fact STI has outperformed many regional peers with returned of close to 13% YTD ( excluding Dividend Yield of around 3-3.5 % which is also one of the highest among Asian bourses ) . My New Worth ( Including Dividend & Interest received ) increased by 16.7 % which I think is quite in line with market ( STI + Dividend return ) but If I have added in the CPF outstanding , my net...

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HPH Trust : 一只让人又爱又恨的蓝筹股

HPH Trust has been one of the worst performer blue chips within the STI Index component. It has created a hype during IPO in 2011 where investors being attracted with high dividend yield and promising growth story of China’s export and full potential of containerization. But the reality was that, with the increasing and fierce competition from surrounding port along Pearl River Delta , couple with prolong slump in shipping industry in its secular down cycles, the result is reflected in current stock price of -60% down since IPO. Their business also badly affected by shipping line’s action to...

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Looking at Stock Market as A “Complex Adaptive System “

One of my favorite book other than “ Game and Chaos Theory “ is this called “ Complex Adaptive Systems : An Introduction to Computational Models of Social Life , by John H. Miller and Scott E. Page “. What is “ Complex Adaptive System “  and why is it so important to understand the stocks market ? other than “behavioral or psychological “ aspect of market. We often look at the things or world as “linear “ and has a very clear “cause and effect “ relationship. The bulk of economics studies is based on equilibrium systems: for...

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2nd Qtr 2017 : Dividend and Portfolio Update

The last company in my holding “ Accordia Golf Trust “ announced the result and dividend on 25th May while I was still busy catching “Pokemon “ . Is time to calculate and tabulate my dividend & interest income to be received in coming months for 2nd Qtr 2017 . Total Dividend & Interest Income for 2nd Qtr 2017 = $62,964.11 ** Total amount receive still about $972 lower than last year (same period ) due to lower dividend from Accordia Golf Trust which reduced by – $1940.4  ( DPU 4.31 cts in 2nd Qtr 2016 vs 3.59 cts in 2017 )...

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STE Smart Beta Update and Photos Sharing

It has been quite sometimes since my last update of STE Smart Beta Index which was created on 28 Aug 2016 ( here ) and Yah !! Just for Fun  J STE SM Index beat the STI Index by just 2 % points and if take into consideration of dividend yield where it has been set higher than STI by around 1.5% , total return could be around 3.5 % . I will need to do the portfolio re-balancing in Aug 2017 after 1 year of inception and I think since the market has been very bullish recently ,...

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A Tale of Diversification ( Part 2 )

In previous blog post , I have shared my experience of diversification into Telcos and O&G industries which is still sitting on paper loss of more than – $12 K ( here ). In today’s part 2 , I am going to further elaborate my story of diversification into banking sector since 2016. Some may still vividly remember that banking stocks has been beaten-down in end 2015 and early 2016 due to market’s projection on slow-down in China’s economy as well as others emerging market ( BRICs ). Others that “ China’s factor “ , struggling in O&G companies...

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A Tale of Diversification ( Part 1 )

As you may notice from my portfolio (here ) which is very much skewed toward high yield counters like REITs and Business Trust. I would recognize and think that this is not good  in the long run as asset concentration in just one or two sectors in my portfolio , as such , I try to diversify and accumulate some non-REIT or Business Trust counters when situation allow. I have picked up some stocks like Telcos , Banks and Conglomerate since 2014 and of course every industries has their cycle and challenges , some of my investment turned out...

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Do You Look At Management Fee in Selecting Which REIT to Invest ?

We do understand that most of the time, “yield” is the main consideration for investors to invest in REIT and of course other thanP/NAV , gearing , interest coverage ratio, asset quality , occupancy rate etc. Other than normal property expenses such as interest & finance cost and operating expenses , management fee is also the major cost for a REIT.  How often do we really look at the management fees as one of the criteria in selecting a REIT to invest ?   If every $1 we earn from the property but40cts goes to management fee , then we...

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Should You Be Worried About Geopolitical Risk ?

European markets and Dow Futures seems celebrating on the news of today’s French Presidential Election result. FTSE , DAX and CAC 40 all up by 2-4% at the time writing and Dow Future also up by more than 200 points. Recently, investors seems given more concerns to geopolitical issues where it hasdominated the market move base on their preliminary or final results , since BREXITreferendum on June 2016 and follow by US Presidential Election on Nov 2016. Definition of “ Geopolitical Risk by Wikipedia : ( Here ) What is ‘Political Risk’ Political risk is the risk an investment’s returns could suffer as a result of political changes or instability in a country.Instability affecting investment returns could stem...

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I Read therefore I Write : Next Financial Crisis May Cause by ETF

On 19th April , The Business Time published an article on issues related to ETF , “Vanguard is growing faster than everybody else , combined !! “. No doubt , ETF which is tracking indexes from all over the world is getting so popular because of lower cost as compare to active management. “In the last three calendar years, investors sank USD$823 billion into Vanguard Funds , by any measure , these are staggering figures. Vanguard’s asset under management have skyrocketed to USD4.2 trillion from USD 1 trillion seven years ago. “ according to the company. “Flow of this magnitude into one company are...

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What I Learned From These Two Blog Posts

You might have noticed that the frequency of me updating my blog post has reduced recently. Yah .. I have been busy catching “Pokemon” and running around many parks which I never or have no time to explore before during full time working . Places like “ MacRitchie Reservoir “ ,” Woodland Water Front Park” , “West Coats Park” , Fort Canning Park “ , ChangiVillage “ , “ Bishan-Ang Moh Kio Park “ and of course the usual “ Garden By the Bay and East Coast Park”..etc. Believe me , money or even after achieving financial freedom have nothing to do with  “ Happiness” Happiness is not about how much money you...

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The Importance of “Human Capital” in Financial Planning

For a company or organization, “Human Capital” is a measure of the skills, education, capacity and attributes of labor which influence their productive capacity and earning potential. According to the OECD, human capital is defined as: “the knowledge, skills, competencies and other attributes embodied in individuals or groups of individuals acquired during their life and used to produce goods, services or ideas in market circumstances”. Human capital of the economy – The aggregate human capital of an economy, which will be determined by national educational standards Gary Becker , a renowned behavioral economist defined  “Human Capital” (1964) as “determined by education, training, medical treatment,...

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