STE's Stocks Investing Journey

I really enjoy the beauty of the sky every morning or evening whenever I look up the sky from my living room….. these photos were taken from my house in the morning or evening. Like skies, Mr Market’s mood swings days and nights or minutes by minutes …. Below quoted from Warren Buffett’s Letter to  Berkshire Hathaway   Shareholders in 1987.

image credit to channelnewsasia.com In last’s week’s Town-Hall meeting, in a distressed and disappointed mood, Hyflux "s CEO said that “ it was ironic that she built Hyflux and made it a successful business story started in Singapore and yet fail because of Singapore’s project ( Tuaspring Integrated Water & Power Project   -Link). The Town-hall meeting was attended by almost 600-700 retail investors ( mostly retirees), with one reported to have invested more than $250,000 in 4.25% Perps Bond and also 200 plus MTN holders in early session.

Have you been nudged? (  Link ) from BBC.com) <In probably the most well-known example, spillage around the toilet , an age-old problem for at least half of the human race was cut by -80% using an ingeniously simple  intervention. > The 2017 Nobel Prize in Economics was awarded to Professor Richard Thaler for his contributions to behavioural economics. Prof Thaler's work essentially questions the economic dogma of the so-called "rational man" as defined by classical economic theory, who makes decisions based on weighing the additional benefits against the additional costs of every single option.

Animal spirits  is the term  John Maynard Keynes  used in his 1936 book  The General Theory of Employment, Interest and Money  to describe the  instincts ,  proclivities  and  emotions  that ostensibly influence and guide  human behavior , and which can be measured in terms of, for example,  consumer confidence . It has since been argued that  trust  is also included in or produced by "animal spirits". image credit to en.wikipedia.org Even apart from the instability due to speculation , there is the instability due to the c haracteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic.  Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits—...

One of my readers ask me what am I doing since the market has gone down by more than -10% from early May, am I buying or selling? My answer is "No", I don’t do any major adjustment on my portfolio, except nimble a little bit here and there with the dividend I received. Basically, my war-chest remained the same in term of percentage in my portfolio. For me, I don’t think it is compelling for me to do major adjustment on my portfolio at this point of time, although the STI Index has corrected by more than -10% , but it sits just at long term mean level.

image credit to staritstimes.com Disclaimer : I am a Hyflux N2H ( 6% CPS ) holder, my view may carry some biases towards the company I have vested. As I said in my previous blog post, we shouldn't blame anyone for losses incurred in our investment except ourselves. Electricity tariffs to rise by 6.9% for July-September period ( from channelnewsasia.com - 29 th June 2018) This is what caught my attention and I think this will further contribute to a better bottom line of SP power ….. Yes, SP Power is making close to $900 mil per year   ( Base Annual Report from SP Power –  here ) and all the Genco is bleeding and in red of more than -$357 Mil in 2016 ( I’m sure it will be much more than this figure in 2017 and some estimated it could be close to $1 Bil ) image credit tp SP group.sg While : “Singapore's power generation sector has a total capacity of 13,350 megawatts (MW). Peak demand, however, averaged only 7,000 MW in the year to Ma...

"Photo was taken inside Langjokull Ice Cave" The market looks more volatile in June and STI was down by almost -5% since the beginning of June, there may be some truth about " Sell in May and go away "...some might have started to deploy their war-chest to buy stocks listed in their " watch list " which have hit their so call " target price". Ops! I am not going to talk about buying stocks in current market condition here today, which I also think that there might be some "value " started to appear but definitely not in "crisis mode" that offers "great bargain ". What I would like to write about today is " Buy Experiences! " You may notice that I didn't blog much in June as we got to spend more time with kids since it's school holidays. We have our staycation at one of the hotel resort in JB and also some other activities in Singapore like "rock climbing ", "Bounce Sin...