Author: Rainbow Coin

Book review: High returns from Low risk

Learning points from this book: In the long-run (the author used data of US traded stocks over 86 years), low-volatility stocks are shown to give a higher return. Comparing portfolios of varying volatility – as volatility increased from 13% to about 20%, compounded return increased. As the volatility increased further beyond 25%, compounded return declined. How to select the right low-volatility stocks? Look at Beta less than 1 the stock’s income yield and momentum (price trend) People who underreact to news when it comes in gradually run the risk of being ‘boiled’ (boiling frog syndrome). The selection of low-volatility stocks can be applied to...

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Richdad’s cashflow game

My friend introduced me to the richdad’s cashflow game which can be played online for free (click here to play). I think it’s a great beginner learning tool to introduce kids (or anyone else lacking in financial literacy) to grasp certain concepts of cash-flow and investing. Takeaways from the game Clear your debts first You don’t have to act on every opportunity Calculate the yield...

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Blockchain: Massively Simplified

All that hype about bitcoins and block-chain led me to wonder what am I missing out here. Ok… so bitcoin is a cryptocurrency (with no practical usage at this point in time but price is inflating like mad balloon??). Then what is blockchain about? Just wondering – if blockchain one day became hackable, wouldn’t that spell...

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ADVANC’s intention to acquire stake in Singtel

Did I read wrong? “Advanced Info Service Public Company Limited (SET:ADVANC) signed a non-binding and conditional letter of intent to acquire 56.2% stake in Singapore Telecommunications Limited (SGX:Z74) from Singapore Telecommunications Limited (SGX:Z74) and DTV Service Company Limited for THB 2.6 billion on September 5, 2017. The shares will be acquired at a preliminary indicative price of THB 7.8 per share which is subject to further negotiations and/or due diligence. The transaction is subject to satisfaction in the due diligence result, approval from the Board of Directors and the approval from the shareholders of Advanced Info Service Public Company...

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Blue-black chips’ 2 years flash back

A quick recall to my old blog post Blue Chips in Red Sea, I have done another mini simulation here. (Got nothing much to do in my short break before starting new work hehe.) This was the list I put up in Sep 2015 – Fast forward 2 years… Which are the ‘blue-black chips’? Most of the chips managed to rebound quite a bit, except Noble Group and a handful of the black sheep. CityDev, Jardine, Genting and GLP soared. [Apologies for missing out Capitaland that time.]   Have you made the right choices 2 years back? :) — Let’s take a look...

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Peter Lynch and the blue chips

It’s always good to learn something new from blog reading. Those scraps of information are like bread crumbs which can lead me to discover more interesting stuff about investing – to know what I don’t know. As the saying goes, danger lies when you don’t know what you don’t know. Stalwart – simi lai? “Stalwart is a term popularized by legendary stock picker Peter Lynch to describe a large, well-established company that still offers long-term growth potential. ” “In addition to a strong balance sheet, one of Lynch’s key measures for a stalwart company is the P/E growth ratio (PEG), which is...

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Why I don’t play in overseas stock markets

Despite home biasness and possibly missed opportunities by only investing in SGX stocks, the big deterrent for me to dabble in overseas stock markets are the additional costs of trading and holding the foreign exchange’s stocks. See https://the-international-investor.com/international-stockbroker-list/singapore-stock-broker-list Trading commission + nominee service fees (custody fee, admin charge etc) + FX fee + withholding tax on dividends And of course… I am just too lazy to monitor other markets. If I want foreign market exposure, buy shares of companies with stakes overseas...

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I work best when my boss is not around

Why? I can work at my ‘own time, own pace’ at researching, planning and implementing new projects, rather than having to keep fine-tuning things that are already in place. I get motivated by stories and visions. Less so by money and in-between kind of power. Anyway since I am not doing sales, technically speaking, I have less ‘rights’ to ask for higher pay / monetary rewards. Boss likes to micro-manage and correct things down to the details, so there are often draft after drafts. Boss likes to change his mind...

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OCBC repurchases share from market

“Oversea-Chinese Banking Corporation Limited (SGX:039) commences share repurchases on May 9, 2017, under the program mandated by the shareholders in the Annual General Meeting held on April 28, 2017. As per the mandate, the company will repurchase up to 209,124,917 shares, representing 5% of the issued ordinary share capital. ” That may be one of the reasons why its share price was heading up in the past weeks. Its price was downhill when I bought, finally it is making a turn. In one of my previous posts I was lamenting that I should not have reinvested my dividends as...

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It’s harvest time again

Here comes the time of the year for harvesting dividends. Yay! I wonder if that is why people ‘sell in May and go away’ other than the summer holiday… Just a refresher on what is ex-dividend date: http://www.investopedia.com/ask/answers/06/exdividenddate.asp Where can you find the ex-dividend date on SG stocks? Here http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/stockfacts Find the stock and click on the Dividend...

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Thought processes & problem solving

I finally discovered how to utilise pivot tables for data analysis. It looks cheem to me when I first looked it up (I only know pie charts and line graphs for the sake of presentations), until I discovered the ‘woah’ moment with trial-and-error and things suddenly fall into place like magic. Not without some data chewing that was quite frustrating initially as I have 800+ lines of data with assorted information such as timing, category etc. — When it comes to problem solving, many times we tend to fall into the trap of focusing on ‘What I can do?’...

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Insights from interviewing candidates

Being the sai kang Ops Manager, my new add-on duty currently is to hire for a HR generalist position for the SME I am working at (before I get a new add-on duty of HR manager too). Here are some interesting takeaways from the interviews I have conducted. 1) Those who don’t know how to give ‘model answers’ for the standard questions asked, I know they have little or no experience in interviewing and recruiting people, as well as being interviewed. “What do you know about our company xxx?” *stumped* “Thank you, exit is over there.” 2) “What makes you...

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Unattractive Lunar New Year bank promo

Till end Feb… The only low-hanging fruit promo that I could find is the DBS $28 Hong Bao giveaway for opening a new deposit account or SAYE account online. T&C applies. So I have gotten myself a Multiplier Account. POSB is offering 1.45% for 4 months if you open a higher interest account with fresh fund deposit. Last year was 8 months. Standard Chartered is offering a miserly 1.15% for 11 months FD tenor with minimum deposit of 25k. (If I didn’t recall wrongly, new year period was 1.25%.) https://www.sc.com/sg/save/term-deposit-sgd-dollar.html CIMB is offering 1.25% for a 12 months FD tenor...

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Sequel to CAGR, XIRR simplified

A sequel to my previous post. Can I make use of XIRR’s value to help in my investment portfolio goal setting? Think come, think go… cannot leh. :( WHY? Because XIRR % is like a report card grade which shows how my portfolio has performed over a fixed period of time, say last year. However, it is not practical to set a goal based on the % or confer a meaning to it as the current market value of my portfolio is controlled by Mr Market (although you may argue investment timing matters *cough cough*). So on sunny days, XIRR...

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CAGR, XIRR simplified

Inspired by SMOL’s post, I decided to do some reading and a short post on these “cheem cheem” terms that previously I do not use. CAGR stands for Compound Annual Growth Rate. It is useful in measuring (in %) how much an investment has increased in value over a fixed period of time. Watch the illustration in this video here – http://www.investopedia.com/calculator/cagr.aspx  So if your investment grew from $1000 to $1500 over a period of 3 years, the CAGR is 14.5%. Which means the amount increased by 14.5% on its compounded value each year, as follow Year 1: $1000+14.5% Year 2: Year 1...

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