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Showing posts from 2019

How Many “Lemons” Do You Have In Your Portfolio ?

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The Market for Lemons
From Wikipedia,
Akerlof's paper uses the market for used cars as an example of the problem of quality uncertainty. It concludes that owners of high-quality used cars will not place their cars on the used car market. A car buyer should only be able to buy low-quality used cars, and will pay accordingly. The market for good used cars does not exist. "The Market for Lemons: Quality Uncertainty and the Market Mechanism" is a well-known[1] 1970 paper by economist George Akerlof which examines how the quality of goods traded in a market can degrade in the presence of information asymmetrybetween buyers and sellers, leaving only "lemons" behind. In American slang, a lemon is a car that is found to be defective only after it has been bought.

Building Your Own ATM Machine !

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Sometimes my friends or even relative just wonder how I could survive without working or having “active income” for the past 4 years. I told them that I have my own “ATM Machine “that will generate a consistent cash flow , quarter by quarter , or course sometime I can withdraw more money from this ATM and sometimes less. It has consistently giving me the cash without fail even during GFC ( Global Financial Crisis), it just a matter of given out more or less.
Yes, it is dividend pay- out from my shareholding which I’m depending on since 2016 to pay for my monthly expenses and holidays. Of course I’m not saying is easy to build this ATM Machine, it take long time ( very long ,almost 20 years for me ) with hard work and saving , investing and reinvesting on the dividend received…taking advantage of the power of compounding effect“ as well as spend within your mean ( try to avoid “Lifestyle Inflation“ ).

Saving on Transaction Cost : 1st Qtr 2019 vs 1st Qtr 2018

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I have done less transaction in 1st Qtr 2019 vs 1st Qtr 2018 although market has gone up much from the low recorded in end of last year  In line other with world stocks market , STI also performed well in 1st Qtr ,up by +8.02% to 3315 as of writing and my portfolio managed to outperformed market by few % points with ROI of +12% YTD, mainly due to better performance from REITs.

Five Best-Performing S-REITs Average 20% Total Return in YTD<from SGX.com>

OMG !! The Yield Curve Just Inverted ! Sell or Not Sell ?

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This is probably one of the hottest topics where you can see and read from all over the business news headlines in last two weeks.
What is “ Inverted Yield Curve “ and why is it so important that draw so much attention from financial strategist / economist/ investors / fund managers all over the world. Discussing, pondering and arguing about the impact and direction of economy due to this so called “ Inverted Yield Curve” , relentlessly.

Share Buy-Back By REITs : Does It Make Sense ?

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If you may notice , I think K-Reit is the only REIT that is actively buying back its own share among all REITs listed on SGX.

I fully understand the benefit of “share buy-back “ as it has been carried out by many companies who see the value of their share when the price might be temporary plummeted due to market condition or caused by certain bad news.


What is a Share Repurchase/ Buy-Back( From Investopedia.com)

1st Qtr 2019 : Dividend and Portfolio Update

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Time flies , 1st quarter 2019 just passed in the blink of an eye , I am sure most of us have good return on your investment as STI has achieved +4.9% returns YTD.
My portfolio managed to outperform STI with returns of 9.7% YTD , thanks to most of the REITs and some other counters like Global Investment and Comfort DelGro.

Keep Calm and Collect Photos (Dividends)

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STE  and Mrs like to take photos during our morning/evening walk , of course other than catching Pokemon ..hahaha  :D
Photography allows you to create images of events, times, and places, it also record what happened and allow you to share them with friends and family, either in digital format or more permanently with prints or photo books. By being able to capture a special moment in time, you carry the memory of that event forward with you, allowing you to share it and remember it with those that were there.

HYFLUX Scheme Of Arrangement (SOA) : Yes or No ?

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**Disclaimer : I am vested with $127,000 in Hyflux 6% CPS, my views and opinions expressed here might be biased to some extent , please do your own due diligence when acting or using the info as presented below.


Bitter pill to swallow despite Olivia Lum's sweetener to small investors(18 Feb 2019)
Hyflux reorganisation plan will see heavy losses for small investors(17 Feb 2019)
Hyflux's replies to Sias raise more questions ( 16 Feb 2019) SIAS's Hyflux rap: A wake-up call for corporate Singapore(13 Feb 2019)SIAS queries Hyflux chief Olivia Lum and board on remuneration, operations(11 Feb 2019)
Finally, Hyflux unveiled the so called Scheme of Arrangement under the court protection restructuring plan on 16 Feb which affecting more than 34,000 (mostly retail investors) registered holders.

Saving Too Much For Retirement ?

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Was having casual conversation over the dinner with friends last week and some knew that I am not working since 2015, asking if my investment income will be able to cover my expenses. I told them that I am still able to save $60-80 K a year after deducting all my yearly expenses including holidays and staycations.
“Then you are saving too much for your retirement !” ,one of them said that .. I was stunned like : huh ?? saving too much ?? …Uhhh !

Open Electricity Market (OEM) : I Switch You Switch , Save ! Save! Save!

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Everyone seems happy recently (including STE ) as our pocket willhave some extra money from saving of our electricity bill by switching to some other’s retailers , other than SP Power. STE just signed up with Keppel Electric on their FIXD24 plan at $0.168/kWh vs current tariff of $0.2413/kWh (before GST ) which is around 30% discount from current tariff + $20 NTUC voucher.
😄

CapitaLand 3.0 – Asia Largest ( Rights or No Rights ?)

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Guess this is the hottest business news headlines since the announcement made last week : CapitaLand buying Temasek unit Ascendas-Singbridge in $11b deal
While everyone seems excited about how it will transform CapitaLand -> CapitaLand 3.0 to be one of the Asia largest real estate group and world No.9 in term of AUM , with 8 listed REITs entity on SGX.

2018 : CPF-IS and Interest Income Update

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Right after 31st Dec 2018 , I guess everyone was busy logging in to their CPF account to check what is the latest balance they have in their CPF account. Yes , CPF interest will be credited on that day and one will be able to see how much he/she got on interest income for the year of 2018.
STE doesn’t have the opportunity to feel the joy of getting year- end bonus since 2014 but instead, receiving the interest income from CPF on first week of each year make me happy same as getting the bonus. ( Not from employer but from “Ah Gong” ). We normally work hard to get bonus but in this case, we let our money work hard to generate the interest income. :D
Total $29,348.70 been credited to our CPF accounts ( for both STE and Mrs. ).

2018 Portfolio Review and Reflection

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As we leave 2018 behind and roll into 2019, first and foremost allow me to wish all A Very Happy & Prosperous 2019.
I am sure 2018 was a tough year for all investors as compared to 2017 where most of us may end up having negative return on our investment portfolio.This is a big contrast to 2017 where we have achieved double digits growth in our portfolio. If you are still enjoying double digit +ve return this year, congratulation !! you must be an exceptional and extraordinary good one in picking wining stocks.
STI closed at 3068 in 2018 with -9.9% return since early 2018. For me, my portfolio ended up worse than STI with -13.2% (including writing-off of $117K of Hyflux 6%CPS ) vs return of +24% last year.  This year will be the second year where my portfolio under-performed STI by 3.3% and another year was in 2013 where REITs was badly hit.
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