Author: The Bedokian Portfolio

An Intervention and Some Lessons Learnt

While on a weekend getaway a couple of years ago, I received a message from a friend, whom I shall name “H”. H was a relatively new investor and wanted to seek my opinion on a blue chip company whose share price had fell drastically. From H’s entry price, the fall was about 40%, and H was worried about holding it. As I did not bring my laptop or tablet along, I had to use my smartphone (and the hotel’s free Wi-Fi) to do some rudimentary research on this company. After a few rounds of reading from a small...

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Do Not Underestimate The Power of Dividends

One of the underlying principles of The Bedokian Portfolio is in dividends (with bond coupons and bank interests included), which is why the tag line for it is “passive income through dividend and index investing”.  Dividends serve as the compounding effect in the early part of portfolio building, and then later as passive income when one is ready to retire. On a shorter term, dividends can magnify your gains and mitigate your losses. Here’s how. You May Be Earning More Than You Think Take for instance the SPDR STI ETF, one of the ETFs that track the Straits Times Index,...

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Tariffs, Tit-for-Tats and Trade Wars

Recently the financial markets are jittery over trade issues between the two largest economies of the world, China and the United States. With figurative blows at each other, the markets are experiencing a roller coaster ride of sorts. Over the past five days from 2 Apr to 6 Apr, the S&P 500 index swung between 2558 and 2671 points1, while our STI fluctuated between 3339 and 3445 points2. While it is not confirmed whether some or all of these tariffs will come to fruition, such news could bring butterflies to most stomachs. Though some may consider these market swings...

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Bond Coupon Rate and Yields

After starting this blog back in 2016, I realised that I have yet to write a single post on bonds. Let me start the bond ball rolling by explaining bond coupon rate and the two common bond yields used, current yield and yield to maturity. Coupon Rate and Current Yield The coupon rate of a bond is always calculated based on its par value. If a $1,000.00 bond’s annual coupon rate is 5%, the bondholder will get $50.00 per year (5% of $1,000.00 = $50.00). Like any investments, the market value of a bond will fluctuate depending on its...

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Did You Miss The Sale?

Everyone loves a sale. It is during a sale period that you can shop for things at a bargain. There are sale periods in the financial markets as well, but there is a huge difference; Department stores will tell you when the sale starts and how long it will last, but financial markets will never tell you such things. The most recent sale period was during the market downturn in early February. As above, there was no announcement that share prices were going to take a dip, and also in my post here I had stated that we do...

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A Must-Read Investment Book

When it comes to the realm of investment books, there are tons of them. Some are written by famous greats, like Benjamin Graham’s The Intelligent Investor and Peter Lynch’s One Up On Wall Street. There are also books on the different portfolio styles, like The Permanent Portfolio by Craig Rowland and J.M. Lawson, Pioneering Portfolio Management by David E. Swensen, and not forgetting my humble contribution in the form of The Bedokian Portfolio. There is another investment book which I felt is a must-read by both beginners (for learning) and seasoned investors (for re-learning), and it is Essentials of...

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Yield on Cost

We all know that by normal convention, yield is calculated as the annual dividend/coupon/interest amount divided by the current price of the security, which is current yield. However, some investors, instead of using current price, used the entry price as the denominator. This is also known as yield on cost. They would prefer to look at this version of yield as they wanted to know the returns based on their initial investment amount.   For example, a person bought Company A’s shares at $1.00 a few years ago. Fast forward to the present day, the share price had risen...

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Before You Jump In, Some Admin Stuff To Look Into

It felt good being a first time investor; after reading The Bedokian Portfolio or some other investment books or material, you will feel the urge to jump straight into the action. You may quickly want to open up a brokerage and/or regular savings plan account, start to look for securities to invest in, and voila, you have started an investment portfolio. Then as the months or years gone by, suddenly you have discovered something; your Company A and REIT Z shares are straddled between your Central Depository (CDP) and your regular savings plan accounts. Your Corporate Bond Q is...

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Seeing Red?

Just last month, I had written about bull market investment strategies, and within the past week, we had seen some red. No doubt red is good for the upcoming Lunar New Year festivities, but seeing this colour in the markets is a real bummer. Ah, such is the roller coaster nature of the financial markets. I have been hearing from some sources, online and in person, that the bear is going to come, and along with it some panic and a possible trip to a reservoir that bore my namesake. First things first, let us all calm down. Is...

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Bull Market Investment Strategies

2017 was a bull year in the financial markets, and there are some opinions that 2018 would be the same as well. We cannot exactly predict the future, but the fact remains that as a Bedokian Portfolio investor, we have to stay invested, whether bull or bear. In a bull market, exuberance and optimism is in the air, so are the prices of equities and REITs, which typically thrive in such economic conditions. If you are a passive Bedokian Portfolio investor, just stay focused and rebalance to your asset class allocation periodically. If you are in the active camp,...

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Is There A Risk-Less Investment?

Quite a while ago I was asked this question, “I am new to investing but I am risk adverse. Is there a risk-less investment that I can go into?” I could not remember the answer that I gave in verbatim, but I would give a general gist here. If you had asked the above question before, hope this post would give you some clarifications. I tend to be a little bit long-winded and go a bit out of point, but I would prefer to explain some stuff on a holistic basis. What is Risk? Risk is a possibility of...

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2017 Review, 2018 Preview, and Bob

2017 Review Many people had cited 2017 as a strong bull market year; for the Straits Times Index (STI), which is considered a proxy for the local equity market, it opened at 2,887 points on the first trading day of 2017 and closed at 3,402 points1 at the last trading day of the year, giving it a 17.8% rise. In fact, we do see a bull of various degrees across other asset classes as well; for REITs, the FTSE ST REITs index showed an increase from 711.54 points to 855.88 points2, a whopping 20.3%. On the gold front, it...

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Cryptocurrency – An Introduction

If you have been reading the financial news lately, one word keeps popping up almost everyday, and that word is “cryptocurrency”. Whether people are talking about Bitcoin, Ethereum, Dogecoin, etc., they are members of the same cryptocurrency family. What Is Cryptocurrency? “Cryptocurrency” is a portmanteau of the words “cryptography” and “currency”. As the name suggested, cryptocurrency (crypto for short) is a digital currency that uses encryption technologies with regards to its creation and regulation of its use. Most, if not all, cryptos are non-regulatory and decentralised; in other words there is no central regulatory body (such as governments and...

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Singles Day, Black Friday and Cyber Monday

And the common theme among them? Yes they are retail related, and billions of dollars of retail sales were reported from these days. For the active Bedokian Portfolio investor, this would be an interesting sector to look into. So what do we have? Directly related would be the retail stores themselves and online retail platforms, and indirectly we have REITs with retail malls, logistics and delivery companies, payment solution companies and the hot products that people will buy during these days, among others. In fact, you could use the associative investing method that I had mentioned here to plot...

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