Author: The Bedokian Portfolio

Light Reads On Understanding Financial Statements

In my ebook The Bedokian Portfolio, I did not cover much on financial statements except for a brief description of the income statement, the balance sheet and the cash flow statement1. Short of reading up accounting and financial textbooks, it is not easy to explain the nooks and crannies of these statements in a simplistic form. Fortunately, I have identified a couple of books that are light for reading (and light for your brain, too) in understanding some of, if not almost, the whole gist of things. Each of these books could be read over a lazy weekend and after...

Read More

Light Reads On Understanding Financial Statements

In my ebook The Bedokian Portfolio, I did not cover much on financial statements except for a brief description of the income statement, the balance sheet and the cash flow statement1. Short of reading up accounting and financial textbooks, it is not easy to explain the nooks and crannies of these statements in a simplistic form. Fortunately, I have identified a couple of books that are light for reading (and light for your brain, too) in understanding some of, if not almost, the whole gist of things. Each of these books could be read over a lazy weekend and after...

Read More

Physical Property in The Bedokian Portfolio?

I had mentioned about property briefly in my ebook1, which I stated that it should not be in The Bedokian Portfolio due to its huge capital outlay. One of my acquaintances suggested that I relook into this. Let us look at physical property as an asset class. Real and Physical Asset Unlike equities and bonds, properties are real and physical assets, meaning you can see it and touch it. The main argument for properties over the other financial instruments is that it will never go down to zero value (end-of-lease assumptions aside). Even if a house is demolished, the...

Read More

Physical Property in The Bedokian Portfolio?

I had mentioned about property briefly in my ebook1, which I stated that it should not be in The Bedokian Portfolio due to its huge capital outlay. One of my acquaintances suggested that I relook into this. Let us look at physical property as an asset class. Real and Physical Asset Unlike equities and bonds, properties are real and physical assets, meaning you can see it and touch it. The main argument for properties over the other financial instruments is that it will never go down to zero value (end-of-lease assumptions aside). Even if a house is demolished, the...

Read More

All About Price: Introduction & Valuation of Value

In our everyday lives, there is one attribute that you will see, hear, use, ponder and gawk about most of the time. Yes, that attribute is price. Whether you are comparing on the same item across different places, different items in the same place, or different items across different places, the notion of price will always be there. Zooming into the financial markets, the price of the financial instruments will be the first thing you will encounter; the bid/ask figures on your trading platform, the ticker tape shown on most business news channels, etc. There is no way you...

Read More

All About Price: Introduction & Valuation of Value

In our everyday lives, there is one attribute that you will see, hear, use, ponder and gawk about most of the time. Yes, that attribute is price. Whether you are comparing on the same item across different places, different items in the same place, or different items across different places, the notion of price will always be there. Zooming into the financial markets, the price of the financial instruments will be the first thing you will encounter; the bid/ask figures on your trading platform, the ticker tape shown on most business news channels, etc. There is no way you...

Read More

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...

Read More

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...

Read More

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,...

Read More

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,...

Read More

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...

Read More

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...

Read More

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...

Read More

Like us on Facebook

Follow us on Twitter