Author: The Fifth Person

A Simple 4-Step Introduction to ETFs

On 22 January 1993, State Street Global Advisors launched the first ever exchange-traded fund or ETF. The Standard & Poor Depository Receipt (SPDR or “spider” for short) tracked the S&P 500 index and allowed investors everywhere an easy way to invest in 500 of the most successful U.S. companies with just one stock. If you invested in these 500 companies individually, the transaction fees alone would cost you thousands of dollars (not including your capital outlay). But with the ETF, you can have a stake in all these great companies for just US$200. Today the SPDR S&P 500 ETF...

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SIA Engineering: What You Need to Know About its Business Before You Invest

Photo: SIA Engineering Company SIA Engineering Company (SGX: S59) is a stock that has always been on my watch list. As the market leader for aircraft maintenance and repair in Singapore, they seem to be a business that’s not only recession-proof, but also one that has built a reputation of providing world-class standards of safety and deliverability over the years. I mean… who else wants to fly in an aircraft that’s not properly maintained or undergoes substandard checks? In the aviation industry, safety is everything and there is no room for compromise. SIA Engineering’s reliability and reputation is well-known...

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SGX Posts 28% Rise in 1Q Earnings to $99.3 Million on Derivatives Growth

Singapore Exchange reported its highest quarterly earnings in about seven years, boosted by a strong performance in the fast-growing derivatives business. SGX posted a 28% rise in earnings to $99.3 million, or 9.3 cents a share, for the first quarter ended September, from a year ago. Bloomberg consensus estimates were for earnings of $93.3 million on the back of $219 million in revenue. Operating revenue rose 30% to $219.6 million, following growth in all its businesses apart from issuer services. Securities revenue increased 14% to $55.9 million and accounted for 25% of total revenue while derivatives revenue increased 69% to $90.9 million...

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2 Examples of Why You Must Challenge Your Confirmation Bias When Investing

Investopedia defines confirmation bias as: “A psychological phenomenon that explains why people tend to seek out information that confirms their existing opinions and overlook or ignore information that refutes their beliefs. Confirmation bias occurs when people filter out potentially useful facts and opinions that don’t coincide with their preconceived notions.” For example, if we start out with the preconceived notion that Apple is a great stock, we will selectively seek out confirmation (from news, analysis, reports, etc) that prove to us that Apple is a great stock. Even if we read reports of the new iPhone sales being a...

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InvestX Congress 2015

InvestX Congress returned with a bang in 2015 as over 500 people joined us last Saturday, 17 Oct, at Suntec Singapore Convention Centre to come together and learn how to make more profitable investment decisions and become better investors. The sold-out event kick-started at 9AM with Rusmin Ang, co-founder of The Fifth Person, as he talked about how to invest in dividend-growth stocks and how to generate stable & growing dividends from your investments year after year. Rusmin must have done a fantastic job as he was literally swamped (ambushed!) with attendees who continued to ask him questions and...

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A Simple Guide to How Market Liquidity Affects Your Investments

In his regular letter to Oaktree clients, Howard Marks wrote about market liquidity and its potential dangers investors often overlook. I highly encourage readers to read it as it points out various key issues on liquidity and behavioral economics. One of the key quotes from Marks sums up this entire article:  “Liquidity is ephemeral: it can come and go.” What does Howard Marks Mean by That? When analyzing key risks in any security, liquidity would always be one factor amongst the endless list of risks involved. Investors usually glaze over liquidity and look at more substantive risks such as...

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6 Things I Learned from Mapletree Greater China Commercial Trust’s AGM 2015

China’s economy is slowing down. The country delivered enviable double-digit annual growth for the past decades but now growth has significantly shrank to 7%. This concern bothered a unitholder and he decided to to raise this question at this year’s AGM. “What impact would that (China’s slowdown) have on Mapletree Greater Commercial China Trust?” It was a valid question considering Mapletree Greater China Commercial Trust owns a property, Gateway Plaza, in Beijing. A few months ago the REIT also acquired another property in Shanghai — Sandhill Plaza. “Let me take a step back to set the scene since the question...

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8 Money Habits Stopping You from Being Financially Stable

Being in your thirties means you should feel more financially secure. But if you’re still finding yourself living paycheck to paycheck, then you’re reading the right article. There are many factors to not feeling financially stable: a bad job, an unstable employment climate, insufficient income, etc. Then there’s habit. Habits can make or break you, and if you have terrible money management activities and beliefs, there’s no doubt it’s going to be the latter. “We first make our habits, and then our habits make us.” John Dryden But what could these habits be? Here are 8 of them that...

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Sovereign Wealth Funds and What Temasek Holdings & GIC Do With Your Money

It’s high time someone talks about the elephant(s) in the room (Singapore) that has been the talk of this election and conspiracy theorists: Temasek Holdings and GIC. Sovereign wealth funds (SWFs) have been accused of having hidden agendas, being state economic weapons. At the same time, they’ve also been hailed as saviors, buoying up banks during the financial crisis when capital markets were frozen. Singapore isn’t the only nation with a SWF; many other nations (mainly net exporters) that enjoy current account surpluses and hoard reserves have a SWF as well. SWFs manage vast amounts of money, also often...

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Is a Recession Coming?

Investors befuddled by Singapore’s recent precipitous plunge into bear market territory recently may be right in thinking that stocks are pointing towards the ominous R word, for recession.  Bank of America Merrill Lynch in a report out today tries to make sense of all the brouhaha in the asset market, as well as take a deep dive into some of the leading indicators. The investment bank’s Asean economist, Chua Hak Bin, believes Singapore likely slipped into a technical recession in the July-to-September third quarter. “Singapore, being a small economy, may be a useful recession barometer for the rest of...

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Investing in VICOM: What You Need to Know About its Business Before You Invest

VICOM Limited (SGX: V01) is a vehicle inspection company based in Singapore. Apart from our famous ERP, anyone who owns a car in Singapore would probably know about VICOM. Yes, I know… all car owners have gone through the dreaded hassle of bringing your car to VICOM knowing that a failed inspection means having to go through the trouble all over again (not to mention forking out more inspection fees a second time around). However, if you come from an investor’s point of view, failed inspections and extra revenue may not seem like such a bad idea after all!...

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[WEBINAR] This Blue-Chip has Fallen 40% in Ten Days: Is This Your Next Undervalued Stock?

This blue-chip company was hit by a global scandal recently and its share price has plunged 40% in the last ten days. Is it time to panic? Or is this a huge opportunity right now to take a look at this global multibillion-dollar MNC when prices are close to a 4-year low? LIVE Webinar: One Blue-Chip Stock Which has Fallen 40% in Ten Days » In This 1-Hour LIVE Webinar, You’ll Discover: Which blue-chip stock has fallen by 40% in just ten days The global scandal which caused its share price to plunge so dramatically Why the effects of...

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Newton’s South Sea Bubble & China’s Stock Market Crash – History Repeats Itself in 294 Years

“I can calculate the movement of stars, but not the madness of men.” This famous quote was spoken by Sir Isaac Newton after he lost his fortune in the South Sea Bubble in 1721. Isaac Newton was widely acknowledged as the foremost scientist of his time and was the one who famously defined the laws of gravity. His scientific achievements would be unrivalled until the arrival of Albert Einstein. Einstein only approached Newton’s league some 235 years later when a solar eclipse on 29 May 1919 proved his general theory of relativity correct and Einstein gained worldwide recognition. The...

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SGX: 8 Things I Learned from its AGM 2015

It has been two years since the penny stock saga of Blumont broke. The valuation of the scandal-hit company plunged by 90% in a week – wiping out billions of dollars overnight in shareholder value. To date, the case remain under investigation. Tan Boon Gin, SGX’s new chief regulatory officer and ex-director of the Commercial Affairs Department (CAD) and Singapore Police Force had this to say: “This is a complex investigation and in fact, the biggest securities fraud investigation that CAD has ever conducted.” Mano Sabnani, a well-known investor in the local scene, demanded an update on the investigation...

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Ticket Sales End Tonight!

Ticket sales for InvestX Congress 2015 ends tonight, 14 October, at 23:59 hours sharp. Click here to get your tickets now before ticket sales close for good and you miss out. 33 tickets left! 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...

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