Showing posts from 2018

My Realized Loss

“Soon after I bought the stock recommended by my broker, its value dropped by half so I decided to cut loss “, sounds familiar right. While investing in financial markets over the long-term is an excellent path to wealth, it’s not unusual to experience occasional losses as investment values goes up and down, depending on market cycles.
Every investors ever incur loss in our investment during the journey, the point is, do you keep track of your“realized gain/loss” on all your stocks’ transaction? Yes, I know , nobody like to mention or talk about their losses made in stocks as the “Prospect Theory“ suggested in one of the famous behaviors bias i.e “Loss Aversion”

STE Smart Beta : Not so Smart !

It has been quite sometimes I never update the performance of my “STE Smart Beta “ since last one in Aug 2017 (here ).   You may also want to know what is “ Smart Beta “ (here ) , for those who are not so familiar with this investment / financial " jargon".

Here is the latest update :

Buy Low, Sell High ! How ?

I hope stock market will crash tomorrow !!
Hey ! wait a minute (ちょっと待って) , don’t throw rotten eggs or curse at me !! J

Here is my story ….
Every stock market investor knows the old adage: Buy low, sell high. We often hear this in investment courses or seminars we had attended, even in financial blogsphere. We talked about “ Price is what you pay ,value is what you get “ , we wanted to buy cheap at best “bargain “ and high M.O.S ( margin of safety ).

Is Stock Market Correction Normal ?

Since the start of 2018, the stock market has experienced higher levels of volatility than we’ve seen before. The result has been in many headlines or news highlighting the downfall of a strong market and how much the market cap has been wiped out in such short period of time. It’s left many people wondering if this is normal and healthy, or a sign of worse things to come ?
For me , it is normal for the markets to experience a short-term decrease in prices, typically followed by a long-term advance. Those are the facts.
The complexity of available financial products is contributing to this unusual volatility. In recent years , financial services industry innovates by creating new and complex products such as Options/ Future / CFD / DLC that track everything from market volatility to price speculative. These leverage products / derivatives  give “investors or gambler “ entirely new ways to “trade or gamble” on the market. I am sure market will tend to be more volatile due to these “tradi…

Your IQ and ROI

According to Warren Buffett "Investing is not a game where the guy with a 160 IQ beats the guy with a 130 IQ"and what Buffett says about what is necessary for investing successfully: 

Temperamentis also important. Independent thinking, emotional stability, and a keen understanding of both human and institutional behavior is vital to long-term investment success. I’ve seen a lot of very smart people who have lacked these virtues.
Also, investing is simple, but not easy. It requires independent thinking and emotional intelligence more than IQ. When markets are tumbling and fall like no tomorrow, IQ is not going to help you to stay away from selling and buy even more at most bargaining prices.

1st Qtr 2018 : Dividend and Portfolio Update

Is time to calculate our dividend income for 1st Qtr 2018 as financial result for most of the company should had been announced by this time. Market has gone through like a “roller coaster“ ride in 1st Qtr 2008 where it was down by almost 10% at one point and rebounded subsequently. As I mentioned in my early blog post (here) , even with correction of 10-20% from current high in US market , I would consider it still as “ expensive or rich in valuation “ and normal correction in any market cycles.

The Power of Saving

I have written about the “The Power of Divided( here ) and shared my view on the important of dividend throughout my investment journey.  I try to visualize it through the chart as below which I published every quarter in my portfolio and dividend update.

As I am not really good in doing analysis on financial detail for companies or trying to identify the next FANGs type of exponential growth companies, my investment philosophy is quite simple that buying those company with strong fundamental (clean balance sheet with less debts ) and have dividend pay-out regularly. Of course ,buying at right timing especially during crisis will give you a boost in your ROI but one need to take note also on the important of diversification as well. ( More reading on My Investment Strategy –Part 1 ! Time & Timing –here)

Fake News : Dividend Income from STE

With increasing usage of internet as main platform of social media for us to communicate and as source of news replacing traditional printed media, corporate and government starts to pay more attention to the problems and consequence of  “fake news “ and its impact on society at large.

Stock Market Crash : DJ just fell more than 1000 points!!

DJ falls more than 1000 points!! STI sinks more than 100 points!! Nikkei 225 plunges more than 1000 points. You will see such news headline on every major financial news portal in last 2 days. Well , finally the long-awaited market correction is here and is quite normal to have market correction of -5 to -15% in any market cycle especially when we have experienced such long bull market sinceGFC in 2008.
We must always remember that market is about “ psychology “ and full of “euphoria and panic “ from time to time…

Volatility Paradox vs Market Returns

Buffett once said: “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.” What can we learn from latest memo from him ( you may read the full memo here ).
In his latest memo , he touched on the topic of “market volatility” and “Pro-Risk behavior” . According to him , although most of the valuations seems pointing to high and overvalue scenario in major stock markets  but the “unacceptability of low returns on cash & Treasuries / Bonds couple with the attitude of “ FOMO “ , continue to push the market indexes to higher high. Every week, we could hear or see the news of market reaching new record high , again and again.

Just For Fun & Photos Sharing

Recently , after reducing my holding in Capital Commercial REIT(here) and Accordia Golf TR , other than deploying my fund to short term bonds  and building up my war chest , I am also thinking of adding new counters which would generate some passive income to replace the loss of income from these two counters which used to be the main holding in my portfolio.
While doing the due diligent for one of the target stock , I came across this paragraph in one of the analyst report…

What Reversion To The Mean means ?

This is one of the best article on topic of “ Reversion to the Mean “ … just for reading.
The Realities of Mean Reversion by Jack Forehand,  Validea's Guru Investor Blog

Quote “Mean reversion is one of the most powerful forces in investing. Whether it be the performance of asset classes, the fundamentals of companies, or economic data, almost everything in investing will revert to long-term averages over time.” Unquote
Full article ( here )

What is your “ Share Turnover “ ratio ?

What is 'Share Turnover'From
Share turnover is a measure of stock liquidity calculated by dividing the total number of shares traded over a period by the average number of shares outstanding for the period. The higher the share turnover, the more liquid the share of the company.

CPF Interest 2017

Ding…Ding…Ding , CPF Board had just credited the interest into our CPF account , you may log in and check your latest balance and amount of interest you got from “ Ah Gong “ ..😊
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