15 May, 2019

The past months had been the worst of my life

In the past few months, I hardly had the mood to do anything or even to live.

It is not just random negativity.
To make it short, my fiancée and I had broken up when our wedding is supposed to be held this year end. Last year, she voiced out that she is not ready to get married and that we will not be happy together. (There was no 3rd party) It may sound like a joke that our love still exist but we realized what she mentioned was rather true after further months of trying.

It is unbelievable that someone who was so close to you and there for you for 4 years suddenly just disappear. Or perhaps the sole real meaning of life just vanished.

We were lucky most wedding preparations were not yet made but the heartbreak is real. Being someone who overthinks, it was surely a rough period of my life.
Sleeping, drinking, jogging, gaming and even working were some great escapes. I lost interest in almost everything including investing.

I even found it oxymoron. Why work so hard to save and invest when money can be lost so easily due to such “mistakes”? Why thrift and not just splurge these money instead on entertainment, gaming, drinking and time wastage? (or even smoking- while I don't smoke) I also wondered why must this happen to me when my life is already quite f***ed.

Good news is I am slightly better now after learning to slowly accept things.

Sadness aside, I am actually having my reservist now and it has been a good time to avoid the stress from work. It was also a pleasant time to quiet down the mind.

During reservist, the regulars in camp will often ask everyone what we are doing outside for work and we may even exchange contacts for job or business opportunities.

How I wished I can tell them that I am making money from home.

Minimal action was taken since last year.
Perhaps it was partly due to the lost of motivation during this period of time.

I took a small profit selling Costa Group which was listed in Australia.
Due to Brexit fears, I missed adding a multi-bagger which I wanted to buy earlier. (guess what is not yours will not be yours)

My current portfolio is well reduced in size, keeping more cash on hand.

Added more SSB in May 2019.
I missed out buying SSB in Feb and March to complete the investment category of DBS Multiplier for the “whole year”. (including months covered by dividends from Singtel)

SSB owned:
SBOCT18 GX18100V
SBNOV18 GX18110Z
SBDEC18 GX18120X
SBJAN19 GX19010T
SBMAY19 GX19050A

Decided to try moving out the logistics industry and enter the banking & finance industry since this is ultimately what I will like to do. To be honest, I am already pretty sick of my current industry.

Many said that it is still not too late at the age of 30 while we know the job market is quite bad now.
Hopefully, someone will give me a chance to learn.

09 February, 2019

Why I hardly invest in Reits

Reits are popular in Singapore. And there is nothing wrong owning some of them.
I personally have not held any Reits for a while (mostly due to point 2 & 3 below). This does not mean that I am not currently looking out for them because I see no harm holding a small substantial amount to diversify.

Below are the reasons why I minimize holding Reits:
  1. It is better to have Reits when we have large capital to capitalize on the given yield. 5% yield on $4000 is mediocre but 5% yield on $40,000 is something. In other words, I feel Reits suit the rich more.
  2. Reits tend to move slow in prices (same for Trusts). Yes, this means they have less speculative movements. However, I am still quite young and able to take more risks by building more cash from price appreciations. Instead of gaining about 5% yield , there are so many better risks-rewards out there to grow our money. 
  3. Most of us should know by now, Reits are exempted from taxation as long as they distribute at least 90% of their revenue to shareholders. This explains why their yield are generally attractive. What is expected to happen during down times (declining net profits) in order for Reits to maintain the same payout per share?
  4. Most Reits move with the economy unless we are talking about more defensive Reits like Parkway Life. If we really want to go long term in Reits, I feel it will be worth waiting for the next cyclical downturn. 
  5. Most Reits are heavily in debt and some even have debts higher than 40% of their net worth. 
In my own opinion, anyone thinking to go "All-In" on reits without diversifying should probably think twice.

Thanks for reading,
and Happy Chinese New Year, folks!