Author: STE's Stocks Investing Journey

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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Special Situation (Event) Investing

What is a ‘Special Situation’ Investing ? You may or may not heard about this before but below shall give you some clue or clearer definition : Time to explain : From Wikipedia : Special situation in finance is an event turning business to go not as usual and materially impacting a company’s value. The notion covers restructuring of a company and corporate transactions such as spin-offs, share repurchases, security issuance/repurchase, asset sales, or other catalyst-oriented situations. A conflict of shareholders is also considered a special situation. To take advantage of special situations, a hedge fund manager must identify an upcoming event that will increase or decrease the value...

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AGM ( Annual General Meeting )

While looking at the piling up of “Annual Reports “ be it in the form of CD-R or book” , we know that company’s AGM is just around the corner. As stocks investors , you will have same experience as these annual report keep coming in to your mail box during this time. Company are required by law to hold a general meeting of its shareholders each year (the Annual General Meeting – “AGM“). If an important matter requiring shareholder approval cannot wait until the next AGM, the company will call an Extraordinary General Meeting (“EGM“). There was an article from The...

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Personal Finance is Really Personal (CPF / Insurance/ Housing /Saving /Investing etc)

Personal finance is an interesting subject which is really“ Personal “ as there are many factors affecting a person or family’s finances – how much to keep as saving vs investing , to buy term or life insurance , to take up HDB loan or from private banks , to buy HBD or Condominium and of course the hottest topic of CPF ( to transfer our OA to SA or do a voluntary cash top up into SA account) ? Recently , my friends & famous financial bloggers ( Chrisfrom Growing your tree of prosperity , Uncle CW8888,SGBudgetBabe ) gathered together to give a talks...

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How to Prepare for Rising Interest Rate

So, it is final that FED increased interest rate by 25 basis points on last Wednesday and you could easily find news and comments on the impact of stocks and economy with this rate hike.  But at least the rate hike is seen as vote of confidence in US economy which has witness increasing inflation and job growth and of course market react positively on this. Our immediate thinking will be, of course the cost of borrowingwill increase as bank will price in higher loan rate, and this lead me to think further that will bank be benefited with higher loan cost eventually. Meantime...

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Where have all the Manhattan tenants gone ?

I read therefore I write This is an interesting article about increasing vacancies rate at high end shopping district at Downtown Manhattan in today’s The Business Time. Quoted from the article “ Dusty windows on Madison Avenue. Ghostly trace of sign on Columbus Avenue. Manhattan’s top retail strip, some of which are among the world’s most expensive shopping districts, appear to have seen better days. Once packed street are being hit by completion from emerging neighborhoods, and deep discounting fromonline retailers. In February, the heart of Madison’s shopping district had 37 vacancies or stores for rent …….. “ Situation looks similar to our high end shopping paradise – Orchard Road which is...

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Dividend Update : 1st Qtr 2017

All Roads Lead to Rome : Dividend Income Investing may not suit everyone as it is more passive and slow way of investment strategy. Some may opt for more aggressive or growth type of investment as their core strategy but I think many ways or route to achieve the ultimate goal of financial independence. As retiree  someone without active income , this might be the best strategy for me although I do understand that some may argue that holding so much of REITs and Biz Trust may not be good in term of asset diversification and also will be affected when interest rate...

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DOW 21,000 : What’s Next and Its Valuation

I think it is time for me to update the world major stock market’s valuation by “ Regression to the Mean ”  after DJ exceeded 21,000 mark in such a short period after hitting 20K level. Always remembered that “ Reversion to mean “ is just a “statistical phenomena “ and it may take much longer time to “reverting to mean” if market is in bubble or irrational stage. As renowned economist John Maynard Keynes famously commented, “The market can stay irrational longer than you can stay solvent.” Please find the link to my previous blog post about this topic (here ) ” Regression Line For Major Stock Market...

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How Much Luck in Investing Success? My Experience in 2008/09

We all know well that market are efficient (most of the time) and many active management fund outperform because of “luck “ and not skill.  You may find out more about this topic in my previous blog on  Success in Investing : Skill or Luck ?  (here ). As most of the investment professional think, it is hard to admit that luck plays as significant a role as skill in their investment success. That’s not to say skill is unimportant but betting on continued success doesn’t work well in investing as in other fields. Michael J. Mauboussin author of “The Success Equation: Untangling Skill...

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