Author: STE's Stocks Investing Journey

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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The Power Of Free Cash Flow

<Imgae credit: trvanalyzer.com> Accounting Profit is Fake Yup, you heard me correctly. Accountant’s idea of profit is prepared according to tax adjustments and accounting standards. These were established to provide consistency and governance across how accounting is done. The problem is these ‘rules’ are very much open to interpretation — leaving room for ‘creative accounting’. The collapse of Enron is a prime example of how investors and business owners assess a company’s financial performance is guided by all the wrong numbers. But if you look at the Net Cash Flow position, you will see that the company was losing cash. Sounds familiar...

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Are S-REITs Overvalued ?

<Image credit:SGInvestor.io> If you are having more REITs in your portfolio , the chances that you are beating STI is higher as most of the REITs are having good “run” so far. Overall YTD returns for FTSE ST REIT Index is 16.5% vs STI of 7.67%. Since I have more than 42% of REITs in my portfolio , quite natural that my portfolio also outperformed STI by +6.3% with YTD returns of +13.97%. Are REITs Overvalued Now ? From long term trend perspective, valuation for S-REITs looks “rich “ as you may see that is very close to +0.5SD...

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Know Your Yield , Know Your Risk

Your Portfolio Yield Determine Your Risk-Tolerance , No? In general, your portfolio yield could be a very good indicator if you are taking too much risk or risk-averse. I plot a chart to show my portfolio yield vs other income investment instrument as below: My yield from equity is about 6.1% , which is slightly lower than S-REITs averg of around 6.5% (base on OCBC Investment Research S-REIT Tracker-link). Although I am just having around 42% in REITs but since my other’s holding also mostly dividend play like Telco/ Banks + 2 investment trust ( Hotung Investment and Global...

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You Should Be Worried When FED Starts to Cut Rates

Market rebound strongly in last two days after FED Chairman indicating future rate cut if economy situation is getting worse due to trade war. “The Federal Reserve’s top policy makers aren’t yet ready to cut interest rates, but worsening trade tensions are nudging them in that direction. In separate comments Tuesday, Fed Chair Jerome Powell and his No. 2, Richard Clarida, reassured nervous investors they’re watching closely for signs that disputes between the U.S. and its trading partners are denting the outlook for the world’s largest economy. Their remarks moved the Fed slightly closer to its first rate cut...

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When REITs Lead To Large Losses

<image credit: Thinkstock via kiplinger.com> I would like to share this very good article from SeekingAlpha.com in regard to investing in REITs : Summary REITs are famous for being defensive income-producing investments. There exists, however, a lot of landmines that can lead to massive losses. We explore the most common reasons that lead to large losses in the REIT sector. Finally, we present how we seek to avoid landmines at High Yield Landlord. Generally speaking, REITs are famous for three things: ·         They pay high dividends. ·         They are defensive investments. ·         They tend to outperform in the long...

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2nd Qtr 2019 : Dividend & Portfolio Update

Finally, is my turn to update the total dividend and interest income that I will be getting in 2nd Qtr 2019 , after my last company i.e Accordia Golf Trust announcing its result yesterday. I’m really excited because second quarter is normally the highest dividend amount I will get as most of the blue chips are given out their dividend in this quarter. Total Dividend & Interest Income 2nd Qtr 2019 = $59,007vs 2nd Qtr 2018 ($60,325), decrease by -$1318. Total 1st Half 2019 = $96,211 vs 1st Half 2018 ($94,108) , up by $2103 , but excluding the...

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Return On Investment vs Return On Luck

When buying TOTO , everyone thinks ( or at least hopes ) that they will be the “lucky” one to become the next “millionaire” and we all knew that winning 4D or TOTO is just a pure luck, but how about investing ? My friend ( Chirs ) from (Growing Your Tree of Prosperity ) have blogged about it here which caught my attention to write about my case and “luck factors “ which have much impact on my of investing. I have also written a blog about “ (How Much Luck in Investing Success? My Experience in 2008/09)”,on...

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How Many “Lemons” Do You Have In Your Portfolio ?

The Market for Lemons From Wikipedia, Akerlof’s paper uses the market for used cars as an example of the problem of quality uncertainty. It concludes that owners of high-quality used cars will not place their cars on the used car market. A car buyer should only be able to buy low-quality used cars, and will pay accordingly. The market for good used cars does not exist. “The Market for Lemons: Quality Uncertainty and the Market Mechanism” is a well-known[1] 1970 paper by economist George Akerlof which examines how the quality of goods traded in a market can degrade in the presence of information asymmetry between buyers and sellers,...

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Building Your Own ATM Machine !

Sometimes my friends or even relative just wonder how I could survive without working or having “active income” for the past 4 years.  I told them that I have my own “ATM Machine “ that will generate a consistent cash flow , quarter by quarter , or course sometime I can withdraw more money from this ATM and sometimes less.  It has consistently giving me the cash without fail even during GFC ( Global Financial Crisis), it just a matter of given out more or less. Yes, it is dividend pay- out from my shareholding which I’m depending on...

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Saving on Transaction Cost : 1st Qtr 2019 vs 1st Qtr 2018

I have done less transaction in 1st Qtr 2019 vs 1st Qtr 2018 although market has gone up much from the low recorded in end of last year  In line other with world stocks market , STI also performed well in 1st Qtr ,up by +8.02% to 3315 as of writing and my portfolio managed to outperformed market by few % points with ROI of +12% YTD, mainly due to better performance from REITs. “In the 2019 year-to-date, the 20 best-performing S-REITs – which have a combined market capitalisation of more than S$60 billion – have averaged a total return...

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OMG !! The Yield Curve Just Inverted ! Sell or Not Sell ?

This is probably one of the hottest topics where you can see and read from all over the business news headlines in last two weeks. What is “Inverted Yield Curve “ and why is it so important that draw so much attention from financial strategist / economist/ investors / fund managers all over the world. Discussing, pondering and arguing about the impact and direction of economy due to this so called “ Inverted Yield Curve” , relentlessly. What is an Inverted Yield Curve?  An inverted yield curve is an interest rate environment in which long-term debt instruments have a...

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Share Buy-Back By REITs : Does It Make Sense ?

If you may notice , I think K-Reit is the only REIT that is actively buying back its own share among all REITs listed on SGX. I fully understand the benefit of “share buy-back “ as it has been carried out by many companies who see the value of their share when the price might be temporary plummeted due to market condition or caused by certain bad news. What is a Share Repurchase/ Buy-Back ( From Investopedia.com) A share repurchase is a program by which a company buys back its own shares from the marketplace, usually because management thinks...

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1st Qtr 2019 : Dividend and Portfolio Update

Time flies , 1st quarter 2019 just passed in the blink of an eye , I am sure most of us have good return on your investment as STI has achieved +4.9% returns YTD. My portfolio managed to outperform STI with returns of 9.7% YTD , thanks to most of the REITs and some other counters like Global Investment and Comfort DelGro.  Top-10 Holding Top-10 YTD Return Portfolio as 1-Mar 2019 Total holding reduced by one to 46 with 4- Out and 3- In since last update. I hope to reduce my total holding to 40 counters by end of...

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