Author: The Fifth Person

The January Effect: Does the STI Always Rise in January?

The January effect is a hypothesis that the stock market tends to outperform in the first month of the year. The effect was first observed in 1942 by investment banker Sidney B. Wachtel and that small-cap stocks tend to perform better than the broader market in January. There are a few reasons why stock prices tend to rise in January but I wanted to find out if the January effect holds true in Singapore as in the U.S. Can investors simply ride the January effect and make decent gains simply by investing in the STI for the first month...

Read More

Merry Christmas 2015!

Christmas is traditionally known as the season of giving. Find out how The Fifth Person has been doing our part, not just this holiday season, but since we founded our company two years ago. Are you looking for a formula that can consistently pick out the best companies to invest in and make you a LOT of money in the stock market? If you are, then this might finally be the answer you’ve been looking for. Because this is the same exact formula we used to create 7-figure results in a single stock portfolio – and we did it in just two years. Find out what...

Read More

4 Local F&B Companies That Make More Money Outside Singapore

When we think of local F&B companies, we may find it hard to identify one that has achieved consistent success on an international scale. But the truth is, while many local companies choose to stay within our borders, there are many who are successfully established overseas as well. We all know that Singapore’s domestic market is pretty small. For a company to really make it big, it has to look beyond our island for growth and expansion. As investors, we all prefer companies which are able to grow successfully beyond their local markets. So in the case of the...

Read More

3 Quick Things I Learned from Singapore Post’s AGM 2015

The recent resignation of CEO Wolfgang Baier raised worries among shareholders about SingPost’s performance moving forward. According to an article from The Business Times, there is speculation that Dr Baier may have been poached by a global firm in a similar space. So why are many people lamenting Dr Baier’s sudden resignation? The answer can be found from what I learned at SingPost’s AGM 2015: With traditional mail slowly declining, Dr Baier has been widely credited for turning SingPost around by expanding into the e-commerce logistics space. Since his tenure from 2011, SingPost’s revenue has grown 59% in four...

Read More

3 Things You Need to Evaluate in a Company Before You Even Look at its Stock Price

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” – Warren Buffett We all know that finding a wonderful company to invest in isn’t always that easy to do. There are thousands and thousands of companies out there in the stock markets around the world (776 in our SGX alone), so how do we tell which companies are quality and which aren’t. A high-quality company is one that will continue to be more successful and profitable in the long term and see a rise in its share price...

Read More

7 Quick Steps to Pick the Best Value-Growth Stocks

In my previous article — 7 Quick Steps to Pick the Best Dividend Stocks — I covered how dividend stocks are great for investors who love to build a portfolio of passive investment income. But we have to admit that not every investor is interested in an income investing approach. Rather, their aim is to invest in growth companies that are able to grow multiple times in value which most dividend stocks can’t achieve. These types of stocks are known as value-growth stocks. So if you are investing for growth and looking for potential multi-bagger stocks, the question is: How do you pick the...

Read More

Top 5 Aspects of Quality When Assessing Companies for Equity Investment

Search the Internet for “measures of investment quality” and you are likely to find roughly one-tenth as many results as you would if you searched for “measures of investment return” or “measures of investment risk.” Quality, it seems, is hard to define. Across the investment management industry, definitions differ. Here we summarise the five aspects of quality we consider most important when assessing companies for inclusion in a fund. 1) Business strategy and prospects Before investing, we need to believe that a company’s business model is durable. We, therefore seek evidence of industry growth, a clear business strategy and...

Read More

4 Warning Signs the S&P 500 Might Have Run Out of Steam

Looking at the roaring performance of the S&P 500 since the financial crisis, it has certainly been a great half-decade with the index outperforming hedge funds as a whole and leading the world out of a deep recession that would otherwise have caused another depression if not for the Fed stepping in. The arguments on the topic of asset managers’ failure to outperform the market index can be saved for another day, I’m going to talk more about the S&P 500 index itself, and why I think it may have run out of steam. Referring to another article on...

Read More

A Step-By-Step Guide How to Apply for Rights Shares by ATM

A rights issue offers existing shareholders the option to purchase additional shares from the company usually at a discounted price. A company may issue rights to raise money for a few reasons: to save a cash-strapped company, to pay off debts, to finance a new acquisition or to fund business growth and expansion, etc. For example, ARA Asset Management, a fund management company, recently conducted a rights issue worth S$150 million for seed capital for new funds and to finance strategic investments. In October, Croesus Retail Trust used a rights issue to raise S$70 million to acquire a retail...

Read More

The Tortoise & the Hare: How Investors Can Avoid the Hot Hand Fallacy

Investing is not necessarily an activity where the smartest person always wins the race. Just like the parable about the tortoise and the hare, there are times where being slow and steady wins you the race. While it is true that backing the right horse will bring you positive returns, this has to be coupled with correct a steady emotional state and an understanding of current market conditions. What I’m talking about here are the dangers of being overconfident in a rising market. Yes, bullish markets can actually lose you money when prices keep rising and you believe you...

Read More

How to Earn 6% Returns “Risk-Free” from Your CPF

Love it or loathe it, the CPF is something that all Singaporeans and PRs have to accept as a way of life here. While there have been many vigorous discussions about our CPF in recent years, we’ll leave that aside because we’re a finance & investment site. So let’s focus on how the CPF works for you at a personal finance level. As an investment site, we focus mainly on one thing: How can we as investors earn higher returns on our money? Now there are many ways of investing to generate the returns you want but the first...

Read More

Trans-Pacific Partnership Agreement is Reached and What This Means for Singapore’s Economy

Photo: Wikipedia Free trade agreements (FTA) are as crucial to Singapore as water. If you want to know the value of water, try not drinking water for one day. The thirst will make you appreciate water more. In the same token, Singapore needs FTAs as much as it needs water and we require new FTAs regularly in order to maintain our growth. Hence despite the existence of 21 FTAs with 32 countries around the world, Singapore still has to pursue more FTAs. The most recent and important FTA would be the Trans-Pacific Partnership (TPP) that ties Singapore with 11...

Read More

2 Reasons Why I Won’t Be Buying the Straits Times Index ETF Anytime Soon

The Straits Times Index ETF (SGX: ES3) is listed on the Singapore Exchange and it tracks the Straits Times Index. The index comprises 30 of Singapore’s most notable blue-chip companies and with the purchase of one share of the STI ETF, you can gain exposure to all of them. These are some of the characteristics of the STI ETF: As you can see on the table above, the STI ETF is an established one with $401 million in net assets with a full 5-star rating from Morningstar. The top 10 holdings of the ETF are listed below and they...

Read More

Portfolio Pumping in Singapore not Widespread, says CFA Institute

Portfolio pumping or the practice of manipulating stock prices higher at calendar-end periods is not as widespread in Singapore as commonly perceived. That is the finding of a report by the CFA Institute authored by its staff at its Asia-Pacific regional office in Hong Kong. But don’t confuse that practice with “window dressing” or outright pump and dump” schemes. The detailed research behind the CFA Institute report was sparked by a landmark civil suit filed by the Monetary Authority of Singapore (MAS) against well-known fund manager Tan Chong Koay and the firm he founded, Pheim Asset Management, back in August 2009. The suit alleged that Tan had created...

Read More

7 Things I Learned from Cordlife’s AGM 2015

Cordlife Group Limited is a fast-growing company with an annualized revenue growth rate of 28.8% for the past three years. Number of clients also grew 33% to 21,085 in 2015 from the previous year. Those are impressive numbers, but what is Cordlife’s nature of business? Cord blood banking. When a baby is born, the umbilical cord that is cut after delivery contains cord blood. Cord blood is a very rich source of hematopoietic stem cells. Cord blood stem cells are currently used to treat blood and immune system related genetic diseases, cancers, and blood disorders. Due to its numerous...

Read More




Like us on Facebook

Follow us on Twitter