AK the born again teacher or a mental blogger?

Reader: I chanced upon your blog half a year ago and been following your every entry since then. In my free time, i try to read up your entries to get a grasp of what we can do to improve our wealth and be financially independent. Articles such as contribution to CPF SA holds dearly to my heart as it means the earlier we transfer from OA (of course living a portion for hdb flat payment) to SA … [Read more...]

After 13 Years, I Sold My Endowment Policy!

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In a rare case of “happy endings” with insurance companies, I sold my NTUC endowment policy that I bought during my NS days to a company that buys them. After calculating the quoted value that REPS Holdings gave me (using the spreadsheet from InvestmentMoats) by e-mail, versus the internal rate of return on the total value of premiums paid till date, it was at an “acceptable” value of -1.53%, … [Read more...]

My 23 Insurance Philosophy (revised after reflecting on the past 10 years )

Have you wonder if you planned something out, whether you are doing things the right way? 12 years ago, I had the idea how I could plan my insurance protection by doing it myself. I executed it. There were not much resources then in Singapore and the traditional way was to listen and buy what your insurance adviser recommended. These days, readers like yourself are more aware on the different … [Read more...]

ISOTeam Limited: Initiation Report

Business Model of ISOTeam Limited (‘ISO’) ISOTeam is founded in 1998 and listed on the SGX Catalist in July 2013 at an IPO price of $0.22 (equivalent to $0.11 today after a 1 for 1 bonus split in 2015). It is founded by David Ng (Chairman), Antony Koh (CEO) and Danny Foo (Director of Operations). The founders collectively own 42.1% stake in ISO through their investment vehicle, ADD Investment … [Read more...]

Investing for income and dividend yields.

Reader: wonder how aggressive you are at aiming dividend % yield when you were younger. Because I realized that recently you are pretty content with 5% yield or lower. When we invest for income, a higher yield is naturally attractive but we want to exercise caution. We should avoid the instant gratification of yield. (See related post at the end of blog post.) Be aware of our … [Read more...]

How much is QAF Limited worth using DCF?

Many people ask me what is a fair price for QAF Limited. Obviously, all of us will have our own answer. Of course, depending on Mr. Market's mood, share price could go higher or lower. There is no accounting for prices or so I have heard people say. What we can try to find out is the intrinsic value to help us make sense of the price offered by Mr. Market. After all, price is what we pay and … [Read more...]

My savings accounts, recent money flow and investments.

I have a few savings accounts but my most used accounts are the following three: 1. POSB Despite the low interest rate for my savings, I am holding on to my POSB account mainly because I have had it since I was a boy and I feel comfortable with it. I have many arrangements tied to this account and it would be a bother to terminate it.The most important function of this account for some time … [Read more...]

Invested in ST Engineering at the right price.

Reader: Hi AK, I remembered you mentioned ST Engineering in one of the session (Evening with AK and friends) a couple of years back (2015) and shared that through one of your readers, you have a greater understanding of their business model. At that point, you mentioned you would look at entering the market if it goes below $2.9 per share, it was hovering around $3.2. It was my first time … [Read more...]

I bought shares of XXXX and I am worried now.

I get emails like this quite frequently: "I am very new to investing and am learning a lot from your blog. May I seek your advice on whether to buy/sell XXXX? I have recently bought XXXX shares at $X.XX and am worried about their involvement with XXXX. Should I sell or hold?" I always say if we know the value of our business, we will know if the market price makes sense. If we know, then, … [Read more...]

My investment portfolio, market value and position sizing.

I feel that I have been blogging a bit too much recently and it is probably a good idea for me to go offline for a few days. So, it won't just be blogging that I am avoiding but everything else that requires me to go online to do as well. Hence, I won't be replying to comments and emails either. Before I go offline in another few hours for the next few days, I should respond to a request … [Read more...]

An incomplete analysis of SingPost.

SingPost was a company I was looking at just a few months before Alibaba came into the picture. Thinking of adding it as an investment for income, I was waiting for the share price to go a bit lower before buying. However, Alibaba came in and bought a 10% stake at $1.42 a share and the share price went ballistic. This was in 1H 2014. I told myself I should be patient and wait. Then, Alibaba … [Read more...]

$500K in gold and waiting for stock market crash.

Gold is not a productive asset. Hi boss! Like to ask you on a topic (precious metals) rarely mentioned on your blog. I love precious metals (gold and silver) and anything in gold I can wear. I liquidated all my shares in 2013 in anticipation of a market crash that didn't happen till date. If I were to liquidate all my gold today, I will get back 500k.  I like to ask should I continue … [Read more...]

Sizing my investment in SPH.

A journey through time with SPH. When I tell people I am a blogger, some assume that I am IT savvy. People who say that are probably not very IT savvy. We only need to know how to use a word processor to blog. My generation and those who are older would remember that in between typewriters and PCs, we had word processors. Their time on Earth was pretty short, however. I am really a … [Read more...]

KrisEnergy Preferential Offer – Measured Risk Taking

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After raising money back in 2005, KrisEnergy is back at the deal table due to their upcoming notes this year. Seems that it was a pretty good deal for the shareholders, as the zero coupon bonds that were issued are secured. However, instead of a vanilla zero coupon bond mechanism, they moved the discount on the zero coupon bonds to the free warrants attached to the bonds. Pretty cleverly designed … [Read more...]

Stock pick- It is time to be greedy (part 2)

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Part 2 of my stock pick story If you have missed the first one, you can read it by clicking the link “stock pick- it is time to be greedy (part 1)”. Question: Will you do well with just 10-20 stocks? There are 2  schools of thoughts when it comes to holding the number of stocks in your portfolio. One school like to hold maximum 10-20 stocks. They will spend time to research really good one and … [Read more...]

Essential Terms that all Bonds Investors must know

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Bonds are like IOUs. Borrowers (usually businesses) issue bonds to raise funds by reaching out to investors who will lend them the money for an agreed interest rate for a certain period of time. Bonds are a great tool for the income investor who wants to balance their portfolio to include assets beyond stocks. Before you even invest in bonds, here are the essential terms that you should … [Read more...]

Stock Pick- It is time to be greedy

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Quote by Warren Buffett “Be Fearful When Others Are Greedy”.  Many people knew it but very few people can do it. Why we do understand but no able to do it?  Because this is human nature. When the stock has stumbled over the past few years, when everyone has lost hope on it, would a normal person like many of us have confidence to invest in it? When every investor is afraid of it and go away from … [Read more...]

Take home loan from bank and buy unit trusts!

Hi AK, I'm new to your site, saw quite a few interesting post from you.. Wonder if I can get some advise and directions to investment... Have $50k spare cash, now searching for what to invest... I have a $500k HDB housing loan. Some financial advisors asked me to switch to bank loan. Instead of using my spare cash to clear my housing loan, look for an investment product which is stable … [Read more...]

Viva Industrial Trust: Initiation Report

Business Model of Viva Industrial Trust (‘VIT’) Viva Industrial Trust is a business-park focussed REIT listed on the SGX since November 2013. It manages a portfolio of 9 properties (2 Integrated Business Parks, 3 Warehouses and 4 Light Industrial Factories) in Singapore.  It collects rent from the tenants and after netting operating expenses, the rents are then paid out to unitholders as … [Read more...]