tag:blogger.com,1999:blog-58725895840511611572024-03-14T18:20:11.099+08:00Of Bulls And BearsGrowth>ValueFrowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.comBlogger60125tag:blogger.com,1999:blog-5872589584051161157.post-63701869384653934782022-10-30T22:12:00.012+08:002022-10-31T00:11:06.827+08:00Dashboard: US Big Caps & SG REITS<p></p><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXic1PYqOB-N4MntFv1XyoDtUjL-8KSID9ibAppcNB-sGlepRKEoXAtqCIA6VGuOZiiii5J36xtu3k7HXfC7sP896SYrG2rhERSSNrM7Uzgf5L8Z-1DYn_3HWr2VIsyXvIODVhqFio7GADkXLS_8Z20UYl0Z63k60nxbF3uLH1XhWWwjDiOhvaDCfDmw/s772/Dashboard%20Chart%2028%20Oct%2022.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="422" data-original-width="772" height="350" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXic1PYqOB-N4MntFv1XyoDtUjL-8KSID9ibAppcNB-sGlepRKEoXAtqCIA6VGuOZiiii5J36xtu3k7HXfC7sP896SYrG2rhERSSNrM7Uzgf5L8Z-1DYn_3HWr2VIsyXvIODVhqFio7GADkXLS_8Z20UYl0Z63k60nxbF3uLH1XhWWwjDiOhvaDCfDmw/w640-h350/Dashboard%20Chart%2028%20Oct%2022.jpg" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8zdtZI688RmnjzUJSmI5GkYArV6pil7OphrOQ-kfK9KeUeuZOZn8YwUw_8bTsR2-st3fxX7pses0qahetp_8J9XkUBD1DDG6cNynj0RFwAmxy1apyDyDvdfPCb5PsViO1Xo8RFbW0FQZSosdlA4ipxA-YAVn61jwnUAJ55LNfIGvrwov8zg83Nyzyuw/s707/Dashboard%202%20Chart%2028%20Oct%2022.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="503" data-original-width="707" height="456" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj8zdtZI688RmnjzUJSmI5GkYArV6pil7OphrOQ-kfK9KeUeuZOZn8YwUw_8bTsR2-st3fxX7pses0qahetp_8J9XkUBD1DDG6cNynj0RFwAmxy1apyDyDvdfPCb5PsViO1Xo8RFbW0FQZSosdlA4ipxA-YAVn61jwnUAJ55LNfIGvrwov8zg83Nyzyuw/w640-h456/Dashboard%202%20Chart%2028%20Oct%2022.jpg" width="640" /></a></div><br /><div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2NTAf_yqR8vuaJWOIGk_ol4epC9ZIWPABkBo9AxZr_PpwwaHcba3tbQ7o3b7i0q2MzNcnFVbFO3kfpe6O1PC2rhmbE1DiC2o4mkYO4afxDdZF_LKt37DYvtsRnkzVV9GeyyLsjUaKthHsnBMqLggDgPFyLWR0uJ6j3UC5V6-ggRSIkVpLuNh754x7Gw/s1336/Dashboard%20Table%2028%20Oct%2022.jpg" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="612" data-original-width="1336" height="294" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2NTAf_yqR8vuaJWOIGk_ol4epC9ZIWPABkBo9AxZr_PpwwaHcba3tbQ7o3b7i0q2MzNcnFVbFO3kfpe6O1PC2rhmbE1DiC2o4mkYO4afxDdZF_LKt37DYvtsRnkzVV9GeyyLsjUaKthHsnBMqLggDgPFyLWR0uJ6j3UC5V6-ggRSIkVpLuNh754x7Gw/w640-h294/Dashboard%20Table%2028%20Oct%2022.jpg" width="640" /></a></div><p style="clear: both; text-align: left;"><i style="background-color: white; color: #393939; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;">*Near 52L is applicable if last closed price is within 10% range above 52 Lows<br /></i><i style="background-color: white; color: #393939; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;">*Data such as market cap may be estimated and not real-time<br /></i><i style="background-color: white; color: #393939; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;">*Companies selected based on personal selection</i></p><div class="separator" style="clear: both; text-align: left;"><i style="background-color: white; color: #393939; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif;">This does not imply or suggest a buy or sell recommendation.</i><i style="background-color: white; color: #393939; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 12.8px;"> </i></div><p></p>Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-35242814325300048292020-04-26T15:09:00.002+08:002020-05-01T14:01:06.835+08:00Personal Update: April 2020<div class="separator" style="clear: both; text-align: left;">
I am putting everything aside this noon to blog, taking this as a therapeutic task away from life and work. </div>
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We are currently in a unique history of events and majority of them are bad. It may also be good if we look at it as a long-awaited correction. </div>
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Today, I will be sharing my investment changes and what I have been doing during these maddening times. The work-from-home schedule has certainly made time pass by faster that we are already now in April. Although time passing fast is nice (especially when we are slogging at work), it also means the current circuit breaker will continue to affect many businesses and the society negatively.</div>
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We can never have the best of both worlds?</div>
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<b><u>Investments & Finances</u></b></div>
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I have underestimated the impact of Covid’19 initially, thinking that it will subside in a while. This is due to the lower fatality rate compared to SARS. However, Covid’19 was so much more contagious than SARS.</div>
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Due to my wishful thinking, I have added some counters in early February only to see them dropping further. At the very lows of the market, the paper losses whipped out almost half of all my gains since 2016. Fortunately, these are just paper losses and not realized losses. And here we are, the market has recovered substantially from its lows while uncertainty continues to linger. </div>
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Below are the actions I made since my last post. I can say that I am not totally unlucky because I managed to make use of the correction to switch some counters as well as enter some at lower prices. I hope I will not jinx myself by sharing!</div>
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-Sold Keppel Pacific Oak Reit near its peak<o:p></o:p></div>
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-Sold Paypal at mediocre paper gains <o:p></o:p></div>
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-The cash in USD returned from Paypal and Keppel Pacific Oak are then used to purchase some Microsoft. I am still not sure if I
will sell Microsoft soon since valuations are not cheap. They will be reporting
their earnings next week on 29<sup>th</sup> April. Let’s see about that. I expect them to beat earnings again but provide poorer guidance.<br />
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-Added some DBS and Koufu shares (could have waited
for lower prices)<o:p></o:p></div>
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-While Singtel regained from its lows, I decided
to divest 1/3 of it and shift it to ST Engineering. I guess this is one
strategy to make use of the low prices to switch to better counters (take a loss
and get into another counter to ride its wave; at the same time reduce my risks
on poorer counters and further diversify the portfolio)<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGw1xYOKDvj3gWpCFq4LbO7vbhK9qjHN65TVOZdzB4S0I8yc8Jowub5eyyUUTJFqfHVPsOmjgXlhou0mnT5Bxb_vNQmFw7HtRVkngh-Zmagest6t09fiL6ML-J1FNbnhzujDQDSq-5ricO/s1600/Yield.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="519" data-original-width="1316" height="252" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiGw1xYOKDvj3gWpCFq4LbO7vbhK9qjHN65TVOZdzB4S0I8yc8Jowub5eyyUUTJFqfHVPsOmjgXlhou0mnT5Bxb_vNQmFw7HtRVkngh-Zmagest6t09fiL6ML-J1FNbnhzujDQDSq-5ricO/s640/Yield.jpg" width="640" /></a></div>
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The recent correction really reminds me that I should stick to my beliefs and plans than be controlled by greed. From this lesson, we are reminded that all our gains can be returned to the market in a major bear market. So why not keep more cash and wait for it to happen?<br />
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Back to finances, most of us get to save more money working from home. This is because we no longer have daily transportation to work and “expensive” lunches at CBD areas. Since we are able to spend less, the money can be used to buy some necessities while we can save the rest. Nevertheless, staying at home means more electricity and water usage/expenses.<br />
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<b><u>Well-being</u></b><br />
Working at home means less movement and more snacking. I have stopped jogging for weeks as the park is getting crowded and weather is getting warm. It definitely feels sinful since I used to exercise 3 times per week in the past and snacked less. I am trying to lift some dumbbells and do some high intensity exercises at home to make it up.<br />
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It is also getting stale at home. I have finished most of my entertainments such as the game I bought from the recent PS4 Sales and completed my TV series.<br />
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Working at home also means we feel less tired. Thus, it gets harder to fall asleep and we tend to sleep later and wake up later. I am thinking that I must exercise more to make myself more tired.<br />
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<b><u>Work & Skills Upgrade</u></b><br />
It is hard to literally work at home at times. We tend to feel lazy or distracted. Interestingly, it is also during these times that we start to cherish our jobs more after witnessing those who had lost their income or even their jobs.<br />
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Work from home does grant us more personal time, depending on how you do your work. Other than indulging in more entertainment, I have also made used of this period to take up free e-learning lessons such as finishing up on my Python lessons and getting some free skill certifications. It is my plan to practice my programming skills from time to time to keep in touch.<br />
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Job-wise, I may have to jump ship again despite not wanting to. The increment rate at my company is too slow and I am expecting to leave if this year’s increment is not up to my expectation. Due to the current situation, our salary had to be freezed temporarily and this means we do not even get a low increment. This is why I am looking around. However, it is almost impossible to job hop with the current headcount freezes and shortage of jobs out there. Guess I will just have to wait and keep the cash flow coming in for now.<br />
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I hope this is not a very long post.<br />
Let’s wish we can all cruise pass this period and witness reduced daily infections so we can get back to our normal daily lives. Hopefully, we can all feel better soon.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-31946140148856392812020-01-20T16:45:00.005+08:002020-01-22T18:17:21.916+08:00Quick Portfolio Update<div class="separator" style="clear: both; text-align: center;">
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Just doing a short update on my current holdings:<br />
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-I have recently added a small position in Paypal for fintech exposure. This however may or may not be a short term trade.<br />
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-Added small position in Keppel Pacific Oak US Reit late last year, partly to push up portfolio’s dividend yield. W8-BEN has been approved by the firm. So goodbye 30% withholding tax and hello 7% divy!<br />
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-Continue holding both Singtel and Cisco. For these, I will see how it goes.<br />
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-Most of the companies are hovering above the P/E level of 15, which may hint overvaluation levels.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjKBBidM3M6TcMNimg-IqdljMyDIHpNpVVaNGkDI3rPfdjMdGR3HvopwdJ936Yc-7zVuHFdMwOvUPsnP60RCE6QExSC4vMcDr6zDjPwJClU3mjZLq7OlkxnjhUV7pNXGg_ik-Vc3aHCkcj/s1600/Yield.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="519" data-original-width="839" height="394" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhjKBBidM3M6TcMNimg-IqdljMyDIHpNpVVaNGkDI3rPfdjMdGR3HvopwdJ936Yc-7zVuHFdMwOvUPsnP60RCE6QExSC4vMcDr6zDjPwJClU3mjZLq7OlkxnjhUV7pNXGg_ik-Vc3aHCkcj/s640/Yield.jpg" width="640" /></a></div>
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<i>*Yield percentage does not reflect any overseas dividend withholding tax</i><br />
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I will be updating this chart on my page with any new addition/removal.<br />
Perhaps I should include percentage of warchest as well.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-70165141241425349452020-01-02T14:08:00.001+08:002020-01-10T20:41:17.659+08:00Portfolio with the year ending 2019Happy 2020, everyone!<br />
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2019 had been good year for US investors!<br />
I have been pretty much missing in action in 2019. A post to end the year may be the least I can do.<br />
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Here are some updates to life. <br />
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<b><u>Finances:</u></b><br />
Finally surpassed the 100k mark. (including investments)<br />
The savings growth shall remain slow being in the rat race.<br />
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<b><u>Investments:</u></b><br />
Portfolio has been quite inactive this year mainly due to fear of high valuations, which also caused me to miss several good opportunities. Well, it happens.<br />
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However, I was extremely lucky to get out of Costa Group listed in ASX (buying some at $5.70, averaging down at $4.90 before escaping and selling all at $5+ in April’19). In June’19, it shares traded down to the $3.45 lows. It ended the year at only $2.47. Imagine the pain if I am still holding this!<br />
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Nothing else is interesting in terms of monthly transactions. However, I did missed another multi-bagger stock yet again. No point beating myself up but take this as fate.<br />
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I have been aiming to let go of Singtel to release the bulk of my portfolio to maneuver around, be it into other companies or loading up on cash levels. This too, will increase my confidence to invest into 1-2 new counters.<br />
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Overall, my portfolio has realized around 11% gain in 2019, beating STI’s return of 8% but greatly lacking behind S&P’s return of 31%. Can't complain much with less trades made this year. :)<br />
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<b><u>Job:</u></b><br />
I am working in an industry I do not yearn for and believed this is a very common issue in the society. I no longer feel pride working. Yet, it is not easy to switch careers during such cautious times. Job hopping is unhealthy as well, especially getting into jobs you may dislike for a higher paycheck. Many fresh graduates are currently struggling to find permanent jobs out there and having one is really something to cherish.<br />
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And how do I feel about my job security?<br />
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Let’s be realistic. Unless you work in government careers, in a niche market or are highly skilled in IT skills, job security should be pretty much non-existent given the competitiveness these days.<br />
Making it worse, it is hard to find relevant skills to upgrade on - which employers will take into consideration seriously in their hiring decisions.<br />
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So what will you do when you get another $500 skills future credits?<br />
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<u><b>Health:</b></u><br />
Physical health has been fine doing gym, sports and jogging on a weekly basis. This too helped kept me sane, giving me temporary positive vibes.<br />
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Overthinking and over-worrying does take a toll on our mental alertness, fatigue level and affect our daily motivations. Being once poor, it seems that we are engineered to relate everything to monetary consequences. It is both a good and bad thing. It is nice to think ahead but it makes it hard for us to freely enjoy the things we do due to the guilt of spending. Funny enough, we do feel joy keeping more cash on hand. These are just some individual lifestyle choices I guess.<br />
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Ending the post, I hope to share more transaction updates in this new year to come~Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com2tag:blogger.com,1999:blog-5872589584051161157.post-89366488370650908132019-12-05T20:59:00.002+08:002019-12-06T23:39:30.882+08:00Simple MSFT Analysis with Tableau- Part 2This is just a follow up from the <a href="https://tobidortosell.blogspot.com/2019/12/simple-analysis-with-tableau.html">previous post</a>.<br />
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As the image shared earlier does not do justice to Tableau's real functions, I decided to also share the readable/interactive file in the below link.<br />
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By right, its dashboards are useful for users to use filters the criteria they would like to view. For example, users will be able to select only the years they want the data to show, such as only years 2013 to 2016<b> </b>OR<b> </b>only the top 3 years by the amount of Net income etc. In this case, users can only pick the Years as filters.<br />
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<span style="color: #444444;">If you like this, I may do the same View on another company upon request if I have the time. </span></div>
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<span style="color: #444444;">Enjoy Tableau. </span></div>
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<span style="color: blue;"><b><a href="https://drive.google.com/open?id=1sCIDCElBjvO-xwtRGOPSSK0E0cQ25rpc" style="text-decoration-line: underline;">MSFT Analysis</a> </b></span></div>
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-Tableau Reader is required to view the file. You may download it <b style="color: blue;"><a href="https://www.tableau.com/products/reader/download">here</a>.</b></div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com2tag:blogger.com,1999:blog-5872589584051161157.post-60849122672659970512019-12-03T15:52:00.001+08:002019-12-06T23:39:19.054+08:00Simple MSFT Analysis with Tableau<div class="separator" style="clear: both; text-align: left;">
2019 is ending and my portfolio is honestly not performing as well this year. </div>
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Not much change has been made since my last update. </div>
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This is actually a good sign as I used to do many transactions to take quick profits. </div>
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Here are some of my recent actions:</div>
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•<span style="white-space: pre;"> </span>Initiated small position in Keppel Pacific Oak Reit</div>
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•<span style="white-space: pre;"> </span>Added more Cisco shares</div>
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At work, I have been having fun with Tableau software since finally granted access to it. Users’ license seems to be expensive and naturally, not everyone is entitled to use it. </div>
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In case if you are not yet introduced, Tableau is a Business intelligence software useful for creating interactive Dashboards and powerful data visualization.</div>
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It is good to have at least something fresh to learn at work and I take it as a mini skill upgrade. </div>
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However, actual training may be required to create better charts as seen in <i><b><a href="https://public.tableau.com/en-us/gallery/?tab=viz-of-the-day&type=viz-of-the-day">Tableau Public</a>. </b></i></div>
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There are really many interesting analysis out there. </div>
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So I did a Tableau Dashboard on Microsoft stock (MSFT) just for fun. </div>
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Some notes to consider before we start:</div>
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1.<span style="white-space: pre;"> </span>Reflected share prices were based on closing prices on the last day of each year. Data is from <a href="https://www.macrotrends.net/stocks/charts/MSFT/microsoft/stock-price-history">Macrostrend site</a>.</div>
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2.<span style="white-space: pre;"> </span>All other measures were retrieved from <a href="https://financials.morningstar.com/ratios/r.html?t=0P000003MH&culture=en&platform=sal">Morningstar Key Ratios</a>. Basic VBA is then used to run/transpose the data into the required format for Tableau to read. </div>
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The same Dashboard below can be easily refreshed to analyse any other listed companies as long as the same data format can be generated from Morningstar. </div>
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Let’s run through the analysis. </div>
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As they say, "A picture is worth a thousand words" and hence the explanation will be kept short. </div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7wNWEuzEx1uC5lJPwMYbpzu0L8P7nIeMt8UJrsLLg1vOL80_5w0HR57x49J6fTJluWxuCqlM8N4UPSKwLTVarHnciS-jkxyKStSpw3gnPI6N2pVkVXyDwq9e_5jm58_Uw2RDyeDkIhTZf/s1600/MSFT+Dashboard.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="895" data-original-width="1600" height="356" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg7wNWEuzEx1uC5lJPwMYbpzu0L8P7nIeMt8UJrsLLg1vOL80_5w0HR57x49J6fTJluWxuCqlM8N4UPSKwLTVarHnciS-jkxyKStSpw3gnPI6N2pVkVXyDwq9e_5jm58_Uw2RDyeDkIhTZf/s640/MSFT+Dashboard.png" width="640" /></a></div>
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<b>Earnings:</b></div>
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As seen above, Microsoft’s revenue has been growing consecutively since 2010 (using 5 year average).</div>
<div class="" style="clear: both;">
Net income dropped in year 2015, 2016 and 2018. Further investigations can be made to understand what caused these drops. </div>
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<br /></div>
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<b>Stock Valuation:</b></div>
<div class="" style="clear: both;">
Perhaps PEG ratio is not suitably useful to measure Microsoft since its PEG has been hovering above 1.0 since 2010- which means it is always overvalued. PEG should be more suitable for faster growing companies. </div>
<div class="separator" style="clear: both;">
Formula used for PEG is: [P/E Ratio]/[Rev 5-Year Average Growth]/ 100</div>
<div class="" style="clear: both;">
<br />
Earnings per share (EPS) has been edging up slower than its book value per share. </div>
<div class="" style="clear: both;">
Reason may be because earnings are not growing as fast as asset acquisitions. </div>
<div class="separator" style="clear: both;">
Its P/E is last seen to be below 15 at 14.50 in year 2013. </div>
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<br /></div>
<div class="separator" style="clear: both;">
Investors are awarded with increased dividends yearly. Payout ratio can be set visible when moused over using Tooltip function.</div>
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<br /></div>
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<br /></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiObgezKGxkxBt8op4Tl93vMfAaryCwRIdEf8gQIwyamf6zP-GHF0pklIEGdXbYBmvTFHMCC8olwuYkpLoj-eUXxFIzkIwgD4KBnk8jni7eIBBAcYNAdCjBecYW8d395CggVZhPdDgAXL6q/s1600/Payout.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="403" data-original-width="810" height="196" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiObgezKGxkxBt8op4Tl93vMfAaryCwRIdEf8gQIwyamf6zP-GHF0pklIEGdXbYBmvTFHMCC8olwuYkpLoj-eUXxFIzkIwgD4KBnk8jni7eIBBAcYNAdCjBecYW8d395CggVZhPdDgAXL6q/s400/Payout.jpg" width="400" /></a></div>
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</div>
<div class="separator" style="clear: both;">
<br /></div>
<div class="" style="clear: both;">
<b>Financial Health:</b></div>
<div class="separator" style="clear: both;">
•<span style="white-space: pre;"> </span>MSFT’s current ratio has been stable and above the 2.0 level. </div>
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•<span style="white-space: pre;"> </span>Debt-to-equity has since been reduced from year 2017. This is a good sign. </div>
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•<span style="white-space: pre;"> </span>Looking at the bottom area chart, MSFT’s cash flows have been rather healthy.</div>
<div class="" style="clear: both;">
•<span style="white-space: pre;"> </span>Inventory level is not quite applicable here since Microsoft is not a hardware centric company. </div>
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Thus, quick ratio is not useful in its context (inventory is found in its formula)</div>
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<br /></div>
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It has been fun creating such views with Tableau. I hope you enjoyed it. </div>
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There are certainly more improvements to be made. Feel free to add on if you have any comments. </div>
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<br /></div>
<div class="" style="clear: both;">
I wanted to do another analysis on the full STI components based on their P/E ratios but was not able to find a legit online source. </div>
<div class="separator" style="clear: both;">
Perhaps P/E ratios have to be calculated by our own?</div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-57381259273910740812019-07-10T11:54:00.000+08:002019-07-10T11:56:23.604+08:00Recent Transactions - July 2019Today, I am here to share on some of my recent trades.<br />
<br />
Singtel has been doing well lately but its P/E is getting on the high side at 18+. All eyes on its Ex-dividend date on 26th July.<br />
<br />
•<span style="white-space: pre;"> </span>Sold some Singtel shares to finally reduce my exposure. Still holding the bulk of it.<br />
•<span style="white-space: pre;"> </span>Traded on UOB, with a 7.4% in profit.<br />
•<span style="white-space: pre;"> </span>Traded on Capitaland, with a 10% in profit.<br />
•<span style="white-space: pre;"> </span>Traded on Sandfire Resources, with a 6.6% in profit.<br />
<br />
As you can see, I am once again on selling mode and keeping cash on hand. About half of my investments are now converted back to cash. The markets have been on range trading mode for months, and the upside seems pretty limited.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-60274301881602038522019-02-09T13:09:00.000+08:002019-02-09T15:14:25.525+08:00Why I hardly invest in ReitsReits are popular in Singapore. And there is nothing wrong owning some of them.<br />
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.<br />
<br />
Below are the reasons why I minimize holding Reits:<br />
<ol>
<li>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.</li>
<li>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. </li>
<li>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?</li>
<li>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. </li>
<li>Most Reits are heavily in debt and some even have debts higher than 40% of their net worth. </li>
</ol>
<div>
In my own opinion, anyone thinking to go "All-In" on reits without diversifying should probably think twice.</div>
<div>
<br /></div>
<div>
Thanks for reading,</div>
<div>
and Happy Chinese New Year, folks!</div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com16tag:blogger.com,1999:blog-5872589584051161157.post-582005333296102122019-01-29T12:09:00.003+08:002019-12-06T07:44:55.991+08:00Broadcom- My New FavoriteOnce again, I got rid of Alibaba and this time at a small profit. The cash is then used to purchase Broadcom shares.<br />
<br />
I have always longed to own a semiconductor company and finally picked up Broadcom.<br />
Coincidentally, Broadcom (Avago) was one of the highest volume customer in my previous job among other tech companies like Dell, AMD, Apple, Keysight etc etc.<br />
Probably a waste not leveraging on my work exposure then?<br />
<br />
There has been fears that over 20% of Broadcom’s revenue comes from Apple but they are slowly moving away from their reliance on Apple (despite their already diversified structure).One fine example is the acquisition of CA Technologies, one of USA largest software companies. They also sold off their Wireless Iot business to Cypress Semiconductor, foreseeing the great competition and capex ahead. This will also help push their focus on things that will more likely work.<br />
<br />
Another fear is the obvious trade war escalation since a big chunk of their revenue comes from China like many chip companies.<br />
<br />
If you did not know yet, Broadcom is actually a shareholder centric company (while Alibaba is client centric). The company is still growing fast and some of their free cash flow are turned into dividends to reward shareholders. Their dividend yield is one of the highest in the chip industry and they also use their cash to buy back a lot of their own shares -which once again benefit investors.<br />
<br />
<a href="https://www.fool.com/investing/2019/01/02/these-3-things-make-broadcom-a-buy.aspx">https://www.fool.com/investing/2019/01/02/these-3-things-make-broadcom-a-buy.aspx</a><br />
<br />
The dividend will act as a buffer to volatility as compared to other chip companies like Nvidia, AMD and Micron. Still, I did rather prefer Broadcom use some of the cash to pay off short-term debts to reduce interest payments.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_MpoYt7auJJR7df2Wxrn3LitRowz3u5ja2Bvgf9kgIEMLtm0pFkYiNyyYSElcO03tzHUHdg49GNcqbFBTCVTzWr7MaNIY4NAoFSojOVije1O5tgtBJB75sAG5pv9yVWyLqbq4V9cGKvtV/s1600/Avgo.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="531" data-original-width="1241" height="273" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj_MpoYt7auJJR7df2Wxrn3LitRowz3u5ja2Bvgf9kgIEMLtm0pFkYiNyyYSElcO03tzHUHdg49GNcqbFBTCVTzWr7MaNIY4NAoFSojOVije1O5tgtBJB75sAG5pv9yVWyLqbq4V9cGKvtV/s640/Avgo.JPG" width="640" /></a></div>
I was lucky to catch the latest price uptrend despite not catching the recent bottom of around $200.<br />
As Broadcom is a great company and its uptrend still looks intact, I will give it some time to see if it will break out through the next resistance of $270.<br />
Happy profiting.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-70801778948718930772019-01-06T16:53:00.000+08:002019-01-06T21:30:31.931+08:00Dilemma on Rebalancing<div>
<div>
<u><b>30 Year Old target: Hitting $100k net worth</b></u></div>
<div>
<br /></div>
<div>
I realized that I have not updated my 30 year old target after passing this milestone back in 2018. </div>
<div>
The update is I did not manage to hit $100k net worth but instead only achieved $75k. </div>
<div>
<br /></div>
<div>
Funny enough, I am not upset about the miss. I have tried my best since becoming aware of things. </div>
<div>
</div>
<div>
With time lost, there is only more pushing to be done in the upcoming years. </div>
<div>
I just have more rebalancing to do in life to reach my long term goals pertaining to net worth.</div>
<div>
<b><u><br /></u></b></div>
<div>
<b><u>Rebalancing of Investments </u></b></div>
<div>
<br /></div>
<div>
My strongest current dilemma is on how/ when to rebalance my current holdings despite the decent performance in 2018. </div>
<div>
<br /></div>
<div>
With around 75% in Singtel and 25% in Alibaba, these are apparently extreme investment types. One is a stagnant yield play while the other is an exponential growth play with zero dividend insurance. </div>
<div>
<br /></div>
<div>
Singtel belongs to the traditional defensive industry but is it still defensive now?</div>
<div>
<br /></div>
<div>
I have to admit that there is also partial speculation in Alibaba despite the due diligence done. It is highly dependent on the outcome of this trade war. </div>
<div>
<br /></div>
<div>
However, my current main concern is still Singtel. I wished that I owned less Singtel shares which will translate to more cash to diversify into other cheap companies currently available in the market. With that, I can have a good handful of 4 to 5 companies covering 2 to 3 different stock exchanges. </div>
<div>
<br /></div>
<div>
As mentioned in my <a href="https://tobidortosell.blogspot.com/2019/01/portfolio-with-year-ending-31-12-2018.html">earlier post</a>, I have arrived in this situation after acquiring Singtel shares from my fiancée. (There is a joke here too, Singtel is the only company which I dare to invest for my family and yet it was a big laggard compared to many of my previous trades) </div>
<div>
<br /></div>
<div>
Selling some Singtel shares now will only lead to some actual losses. The best way which I can think of is to sacrifice some shares using some of the past dividends received to limit such losses. </div>
<div>
<br /></div>
<div>
Nevertheless, it can be fun and challenging for me to figure my way out since I am stuck in such situation. Once more cash is raised from Singtel, the fun shall begin. </div>
<div>
<br /></div>
<div>
The below points are what I look for in companies.</div>
<div>
<br /></div>
<div>
Guess I am a greedy person who look for great Risk-Return Tradeoff while at the same time seeking insurance from dividends lol. </div>
<div>
<br /></div>
<div>
-Healthy companies (for sure)</div>
<div>
-Decent future growth</div>
<div>
-Relates to future/emerging trends</div>
<div>
-Country diversification in terms of revenue/stock markets</div>
<div>
-Decent Yield (% dependent on dividend tax), with controlled payout ratio</div>
<div>
-Limited currency risks against SGD</div>
<div>
-Cheap valuations based on future cash flows</div>
<div>
<br /></div>
<div>
Looking for the best of both worlds as always.</div>
</div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-19297302041417135382019-01-01T14:51:00.003+08:002020-01-02T10:54:06.138+08:00Portfolio with the year ending 20182018 has finally come to an end.<br />
<br />
I used the word “finally” because it was not a particular good year for me.<br />
There are struggles in life as usual, or perhaps what we tend to perceive as problems ourselves.<br />
Overthinking?<br />
<br />
We really need to learn to take more deep breathes, stop and admire the big blue sky above us to remind us how small our problems are in this majestic world.<br />
<br />
I know 2018 may be a good year to some people and friends out there so it is not all bad.<br />
<br />
Today is the first day of 2019, and we hereby confront our successes and failures.<br />
I was awaiting for the closing bell of NYSE yesterday to conclude my paper losses and overall 2018 performance.<br />
<br />
Portfolio for the year was very positive until the big drop from September highs. Some of us are lucky enough to have sold some holdings before the correction happened. My prediction is that any companies we are still holding now should be mostly having paper losses. In my case, Singtel is the heaviest bag I am holding. In Stocktwits forum, we call ourselves “Bagholders” when we are holding on a losing stock.<br />
<br />
I guess that the trade war will likely strike a deal within these 90 days while a final agreement will take more time. At least, that is what most of us are hoping for. If this holds true, <b>now</b> will probably be the best time to buy more stocks at cheaper valuations and stocks will rally once again after the deal. (especially stocks with major China revenue exposures)<br />
<br />
Before I share my portfolio performance for 2018, I need to highlight 2 things as it does significantly affect the outcome:<br />
•<span style="white-space: pre;"> </span>During December, I took over all Singtel shares from my fiancée. (since I was the one who suggested her to buy initially and it has already been a year, I feel that it is best I take over ownership and add it to my portfolio)<br />
•<span style="white-space: pre;"> </span>As for the Singtel shares under my parents, these are totally excluded from my performance.<br />
<br />
<b><u>Current holdings: </u></b><br />
Singtel, Alibaba<br />
<h3>
<br /><b>2018</b></h3>
<b><u>Top Winners:</u></b><br />
IRobot: 20.14%<br />
Sembcorp Ind: 12.52%<br />
Sanofi ADR:<span style="white-space: pre;"> </span> 9.61%<br />
<br />
Notable mentions: LCII, Wilmar, ST Engineering, ABF, Shire PLC, Sandfire Resources, Capitaland<br />
<br />
<b><u>Top Losers:</u></b><br />
Oracle:<span style="white-space: pre;"> </span> -3.36%<br />
Alibaba: -21.32% <span style="font-size: x-small;">(first batch)</span><br />
<br />
<b><u>Investments portfolio in 2018:</u></b><br />
<span style="font-size: x-small;"><b><u>(based on current investment amount + deducted commission fees + currency conversions gains/losses + dividends)</u></b></span><br />
<br />
<b><u>Overall Portfolio:</u></b><br />
<b>• Total Realized + Paper Gain: 2.72%</b> <span style="font-size: x-small;">(includes paper losses in current market)</span><br />
•<b> Overall Realized Gain: <span style="white-space: pre;"> </span>18.36%</b><span style="white-space: pre;"> </span><span style="font-size: x-small;">(excludes returns in current market) </span><br />
<span style="font-size: x-small;"><br /></span>
<br />
The good news is the portfolio has beaten the market this year as compared to S&P 500 and STI index.<br />
Feel free to judge ;)<br />
<br />
Happy New Year, folks!Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-37996534191586835822018-12-19T17:23:00.005+08:002019-01-02T11:36:00.656+08:00Pre-Year End UpdatesMerry Christmas in advance!<br />
Another year is coming to an end now.<br />
<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxms5xc0RpeOdcGDhyphenhyphendHP1lRE0ujXP5C0c3nB_5vsIkhs7j_hAWUnoQ6rLc4De-KOCWtAjNFLUfFDy3TFTXHuepAtANl5aX-Km7ple_GDIQ4_s0l1sWP3i9IvW7gh3t1jwyi7Ny9h4H7TN/s1600/Merry-christmas-cookies-gingerbread-text-design-vector.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="239" data-original-width="600" height="157" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgxms5xc0RpeOdcGDhyphenhyphendHP1lRE0ujXP5C0c3nB_5vsIkhs7j_hAWUnoQ6rLc4De-KOCWtAjNFLUfFDy3TFTXHuepAtANl5aX-Km7ple_GDIQ4_s0l1sWP3i9IvW7gh3t1jwyi7Ny9h4H7TN/s400/Merry-christmas-cookies-gingerbread-text-design-vector.jpg" width="400" /></a></div>
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<div>
<div>
It is unsure yet if 2018 will be a better year in terms of the financial markets but life sure is better this year working for a better company compared to 2017. Work life balance sure makes a big difference. Hope it was a better year for many of you too. </div>
<div>
<div>
<br /></div>
<div>
To find out if 2018 was a better year to my money, I shall follow up with a final post to summarize my performance and the good lessons learnt. </div>
<div>
<br /></div>
<div>
Associated British Foods was removed from my portfolio recently as the risks in pounds (GBP) became seemingly high due to Brexit uncertainties. I am lucky to get out early at GBP 24.40 at a profit. It is estimated that the pound can drop by 10-25% to the Dollar if agreements fall out (which it most likely will). Thus, I prefer to have my cash back in SGD.</div>
<div>
<br /></div>
<div>
In contradiction to my <a href="https://tobidortosell.blogspot.com/2018/10/stopped-loss-and-reduced-risks.html">last post</a>, I have taken back my words and added Alibaba back for the very long-term growth. </div>
<div>
<br /></div>
<div>
The reason of buying back was due to simple reasoning (yet complicated since I did sold all my shares back in October’18).</div>
<div>
<br /></div>
<div>
USA stocks are mostly expensive, which explains why I am turning back to $BABA for growth. Baidu looks good too. (Some popular US stocks discussed in Stocktwits forum are: Amazon, Apple, Nvidia, Facebook , Alphabet, Microsoft and Netflix)</div>
<div>
<br /></div>
<div>
My prior research was probably insufficient to keep me confident in holding on to BABA earlier. </div>
<div>
With further digging, I now have more reasons to back me up now on some past concerns: </div>
<div>
<br /></div>
<div>
<b>Accounting practices </b></div>
<div>
Alibaba shares are held by major and reputable institutions such as BlackRock, T.Rowe Price, Vanguard and State Street. Moreover, the SEC are closely watching Alibaba on its reporting figures. Frauds may exist in NYSE but it is at its minimal. Non-GAAP figures may have been used and it can be argued that they are able to reflect more accurately on the operations of a business than standard GAAP. </div>
<div>
<br /></div>
<div>
The reason of having its shares held in Cayman Islands also became more apparent now. As opposed to allegations made, the main reason of doing so was to avoid the PRC regulations that restricts foreigners investing in China companies. Without knowing this, such arrangements once appeared to me as shady.</div>
<div>
Of course, risks are still present to foreign investors here. </div>
<div>
<br /></div>
<div>
<b>Valuation</b></div>
<div>
Investments like Baba should not be for the short term. It may take 2-10 years for share prices to reflect the growth coming ahead. </div>
<div>
Alibaba has an attractive PEG ratio of around 1.0. Due to expected growth of around 27% in the next 5 years, it helps explain the current share valuations and high P/E. </div>
<div>
<br /></div>
<div>
Forecasted GBP growth in China is still strong while Baba has many untapped market share to penetrate in China, Taiwan and Asia. </div>
<div>
<br /></div>
<div>
<div>
It is obvious Alipay is almost everywhere in Chinese retail as it became a trustworthy brand for vendors and consumers alike. Core e-commerce will also continue to feed into revenues while Alibaba “passively” earns from commissions from each transaction made. </div>
<div>
<br /></div>
<div>
<b>Looming Key risks</b></div>
<div>
Examples are RMB devaluation, trade wars affecting China revenues/investors’ perceptions, China country debts, poor investments made in Media industry. </div>
<div>
<br /></div>
<div>
We know Alibaba is not directly affected by US tariffs (due to revenue largely coming from China) but investors are fearful of how China will be affected as a whole. </div>
<div>
<br /></div>
<div>
Cloud computing is still at a net loss despite its exponential growth.</div>
<div>
<br /></div>
<div>
I was lucky enough to be presented with share prices below the one I have sold previously. (so it is similar to not having sold my initial stakes. Such chances do not always appear). </div>
<div>
Anyway, my current exposure is not huge to boost about. Time will tell if the small risk is worth it. </div>
<div>
<br /></div>
<div>
For latest Baba news, please do check out <a href="https://www.alizila.com/">https://www.alizila.com</a></div>
<div>
<br /></div>
<div>
I am looking forward to check out the portfolio performance of others as well as my own in the coming days ahead. </div>
<div>
<br /></div>
<div>
Happy holidays to all.</div>
</div>
</div>
</div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-18641016607892836362018-10-30T21:17:00.000+08:002018-10-30T21:25:06.154+08:00Stopped loss and Reduced risksWith the downside risks presented in the world, I am switching over to the defensive.<br />
It may be a time when doing less is doing more. (time spent on stock search can be minimized due to most companies being somewhat cyclical)<br />
<br />
Recent Actions:<br />
-Stopped loss on Alibaba at around USD 144; I would take it that losses are taken from previous profits and admit my mistake of owning an overvalued company (who says bloggers only share on their profits?)<br />
-Took profit on Sandfire Resources as mining industry is partially cyclical<br />
-Added second batch of SSB to build on interest ladder and may continue to do so<br />
-Added back Wilmar. It is defensive but I dislike their high debt levels.<br />
<br />
Let's wait for 7 more days to see how the market react to US mid-term election to decide on what to do next.<br />
<br />
I am currently halfway through the book: The Millionaire Fastlane.<br />
It is quite interesting and it changed my view on entrepreneurship.<br />
<br />
Its philosophy is however the opposite of many other gurus' as it discourages the norm of saving and investing (buy and hold). The reason is that these actions require us to sacrifice many years of our life <u>before we have a chance </u>to become millionaires. And usually, saving comes down to becoming misers and having a mediocre lifestyle.<br />
<br />
From the book, there are three types of people in this world:<br />
<br />
<b>Sidewalkers</b>: People who lives a day by a day and tries to consume as much income they have and may even go into debt doing so.<br />
<br />
<b>Slow laners: </b>Those who work (be it employed or having a business) and uses the market as their income accelerator. When slow laners become millionaires, they are plagued with old age (probably with poor health) and are "nearing death". Though slow laners are better off than sidewalkers, it is risky to lead such life because many things are dependent on Hope.<br />
For our plan to work: We hope to be healthy, we hope the market will be merciful, we hope not to be retrenched. However, hope is not 100% and it is risky to depend on it.<br />
<br />
<b>Fast Laners:</b> Those who take high risks in building businesses that produce explosive returns by selling to many or by selling off the business for millions. And for this to work, the business should not require our constant involvement to produce revenue.<br />
These people gets rich when they are young and are producers instead of consumers. Time is on their side as they gained freedom young.<br />
<br />
While I am sharing his ideas, it does not mean that I fully agree to all that was mentioned.<br />
Of course, everyone wants to be a Fast Laner but it is not for everyone. One has to quit their job, and success is not guaranteed.<br />
<br />
Away from the serious talk, I am finally going for my overseas holidays after almost a year in Singapore.<br />
Traveling is fun but always tiring and a hassle. Understand that most people will need to travel at least twice a year to be suffice but it is really up to individuals. They are also some who can actually bear not traveling for a year or two. Which type are you?<br />
<br />
Anyway, it is time to enjoy while I can before the wedding preps and the busy new year ahead.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com6tag:blogger.com,1999:blog-5872589584051161157.post-61540271910232250672018-09-29T21:15:00.002+08:002018-09-30T16:24:57.416+08:00Portfolio Update: Added Associated British FoodsThis will be a short post, following my long <a href="https://tobidortosell.blogspot.com/2018/09/my-analysis-on-sandfire-resources.html">analysis on Sandfire Resources</a> last week.<br />
<br />
I have just added <a href="https://sg.finance.yahoo.com/quote/ABF.L/">Associated British Foods (ABF)</a> from the the FTSE 100 Component into my portfolio. This is the name behind the budget retailer Primark, the Twinings English tea and the famous Ovaltine drink. It is a conglomerate dealing with 5 main business segments: Sugar, agriculture, ingredient, grocery and retail. While I am aware that Brexit decision largely looms and ABF is exposed to its operations in Europe, shares are selling at a compelling price after my due diligence. Over the years, revenues and dividends are rising while debts are well managed.<br />
<br />
In any bear case, there are still dividends to collect and I can even add on my stakes. Like Unilever, IFF and Wilmar, it is a known consumer defensive.<br />
<br />
In the same week on Friday, I sold ST Engineering and took profit. My action does not imply a guess that it will not continue higher. It may be the right time, or it may be too early.<br />
This brings me to my portfolio update:<br />
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<tr><td class="tr-caption" style="font-size: 12.8px;"><b><span style="color: #783f04;"><u>Total Investments</u></span></b><br />
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<b><span style="color: #783f04;"><u><br /></u></span></b></div>
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<tr><td class="tr-caption" style="font-size: 12.8px;"><span style="color: #783f04;"><b><u>Stocks' Distribution</u></b></span><br />
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<span style="color: #783f04;"><b><u><br /></u></b></span></div>
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It is funny realizing that I did not invest in any US based companies at the moment while there are a variety of companies from different continents on hand: AU, UK, CN and SG. Alibaba is not considered US based but only US listed. Probably the rationale in my subconsciousness is, US companies are still expensive after the long bull market.<br />
<br />
Back to personal life, I have been feeling dreadful about work lately even before reaching the age of 30.<br />
<br />
Work means 5 days of repetitive lifestyle, multiplied by about 4 times per month. Spending time with family, gaming and watching TV shows are things I do when freedom is presented.<br />
<br />
The stress, boredom, fatigue, politics and work related expenses which we face all adds up to the importance and motivation of getting to our financial freedom.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-72273476205435336832018-09-22T10:47:00.004+08:002018-10-01T20:24:01.783+08:00My Analysis on Sandfire Resources<div class="separator" style="clear: both; text-align: center;">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMzON09Wxwo-QktHObtiZc818St0C51-rHV_e-10SaJu9bU1sks3Ov5cwE3hnODT_UvNREyO9mmVqwCRIwYCTh9EwT1k4moecj3Qum-OVrnGzjl-VDlbhDOtjhPsEHoV9bkvBmUdGaecAl/s1600/Capture.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="127" data-original-width="542" height="93" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgMzON09Wxwo-QktHObtiZc818St0C51-rHV_e-10SaJu9bU1sks3Ov5cwE3hnODT_UvNREyO9mmVqwCRIwYCTh9EwT1k4moecj3Qum-OVrnGzjl-VDlbhDOtjhPsEHoV9bkvBmUdGaecAl/s400/Capture.JPG" width="400" /></a></div>
<br />
<b>Overview</b><br />
<br />
Sandfire Resources NL (<a href="https://au.finance.yahoo.com/quote/SFR.AX/">ASX: SFR</a>) is a copper-gold exploration company based in Perth. Listed on the Australian Securities Exchange (ASX) in 2004, Sandfire Resources was later added in the ASX 200 index in 2010 (not to be confused with ASX 100). Their Copper-Gold mine, DeGrussa, has been one of the best finds made in the history of Western Australia and has since been serving Sandfire Resources with good revenues.<br />
<br />
The company is being categorized as a Small Core company by <a href="https://www.morningstar.com/stocks/XASX/SFR/quote.html">Morningstar</a> despite it being one of the largest copper producers in Australia.<br />
<br />
<b>Main Projects</b><br />
<b><br /></b>
<span style="font-family: inherit;">Australia: DeGrussa Mine , Monty Mine</span><br />
<span style="font-family: inherit;">USA: Black Butte Copper Project</span><br />
Alaska: Zinc VMS project<br />
Bosnia and Herzegovina: Rupice project<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPZEjTxrAzmoVuSzNj26fYo8q_IefFCQRSbk6f9EP7bI7EI4_bxEWwc-BgtailmkuW1m0CqNMxhezt7mRZRhfHB0qE_33gsZYPkYb2pIjaj8sAPXeAF-rgzKjMmEOM-DN9EiREBWLVaypy/s1600/Assets.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="510" data-original-width="1051" height="307" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjPZEjTxrAzmoVuSzNj26fYo8q_IefFCQRSbk6f9EP7bI7EI4_bxEWwc-BgtailmkuW1m0CqNMxhezt7mRZRhfHB0qE_33gsZYPkYb2pIjaj8sAPXeAF-rgzKjMmEOM-DN9EiREBWLVaypy/s640/Assets.JPG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="http://www.sandfire.com.au/images/files/5-Aug-18---2018-Diggers-and-Dealers-Presentation.pdf"><b><span style="color: #b45f06;">Assets Overview</span></b></a></td></tr>
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<b><br />Financials</b><br />
<br />
Sandfire’s revenue and assets have been steadily rising while net profits are surging at an even faster pace. Cash balances are picking up since year 2016. All these good signs are largely attributed to the long economy growths which favor copper prices.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwndM0EdgIvoFoAiEJQm4KI80mtK_UvcAwMdBJPBPOOnnB_lNJxDYLZX4sklaUj4pceX-ngt8EaS78KcNCEaSdbqNZyf-IPDbkP1wYV5C19xE06mqe5L4zpGNzeoek6Jr2FGRjIWDrXThF/s1600/SFR+graphs.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="245" data-original-width="1243" height="126" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhwndM0EdgIvoFoAiEJQm4KI80mtK_UvcAwMdBJPBPOOnnB_lNJxDYLZX4sklaUj4pceX-ngt8EaS78KcNCEaSdbqNZyf-IPDbkP1wYV5C19xE06mqe5L4zpGNzeoek6Jr2FGRjIWDrXThF/s640/SFR+graphs.JPG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b><span style="color: #b45f06;">Source: DBS Vickers</span></b></td></tr>
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From my research, the management has been reducing their debts yearly and this is great news to the employees and shareholders. (Long term debts fully paid in FY2017) This led to a strong balance sheet where Total Assets stand at more than 4.5 times of Total Liabilities.<br />
<br />
Current Ratio is at 3.80 when a measure of minimum 2.0 is suffice to justify a healthy balance sheet.<br />
This indicates that Sandfire will be strong enough to pay off its obligations for a sustainable period of time during poor industry or economy conditions.<br />
<br />
It must be emphasized that about 87% of Sandfire's revenue comes from copper, 11% from gold and only 1% is from silver. In my <a href="https://tobidortosell.blogspot.com/2018/09/hedging-my-investments-with-ssb.html">last post</a>, I shared about the characteristics of copper and gold. Cooper prices tend to rise during economy growth while gold prices tend to rise during economy "doom".<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrubTE7KWQC6LOkcQvc0V4FmxOoe78WNqiliE6r0-Vdv4-xEjFyqbKnzIwuW3ZFyXuIAJTlI9hWpDatTOHiTNZzYI0UNVOgSNqh83pUZZXpupisKTR00oQIVR-95nc_FENWNjeevR4iWQy/s1600/Copper+Gold+revenues.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="400" data-original-width="795" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgrubTE7KWQC6LOkcQvc0V4FmxOoe78WNqiliE6r0-Vdv4-xEjFyqbKnzIwuW3ZFyXuIAJTlI9hWpDatTOHiTNZzYI0UNVOgSNqh83pUZZXpupisKTR00oQIVR-95nc_FENWNjeevR4iWQy/s640/Copper+Gold+revenues.JPG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><a href="http://www.sandfire.com.au/images/2017_Annual_Report.pdf"><b><span style="color: #b45f06;">Annual Report 2017</span></b></a></td></tr>
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<b><br />Growth</b><br />
<b><br /></b>
Growth in copper commodity is supported by the rising demand in Electric Vehicles (EV) and its related infrastructures. Moreover, future copper supply is foreseen to fall short to its future demand. When this happens, it places copper producers at a good spot to command higher prices.<br />
<br />
Thus, it is not alarming that Sandfire's revenue is expected to grow 11% annually.<br />
<br />
<br />
<b>Valuations </b><br />
<br />
While Sandfire's shares are selling at about 2 times Price to Book Value, this is closely aligned to its industry's index. Looking closer at other measures, its shares are considerably cheaper than its peers in terms of Price to Sales , Price to Earnings and Price to Cash Flow.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi0VjDDfWon4E9cFs4SDFD-0fYFCmQLvyPQBOOH3AwFXy8h_4hIYe_b-lcCIS_ExQ60oZ04qBs53fAUt4FJ6cLlp66UiXVPE6xJw64kmt25e4xICNEKSM_y9WdkO3kPmTKkPqHSffS_Lvj/s1600/Valuation.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="489" data-original-width="797" height="392" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgi0VjDDfWon4E9cFs4SDFD-0fYFCmQLvyPQBOOH3AwFXy8h_4hIYe_b-lcCIS_ExQ60oZ04qBs53fAUt4FJ6cLlp66UiXVPE6xJw64kmt25e4xICNEKSM_y9WdkO3kPmTKkPqHSffS_Lvj/s640/Valuation.JPG" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b><span style="color: #b45f06;"><a href="https://www.morningstar.com/stocks/XASX/SFR/quote.html">Source: Morningstar</a></span></b></td></tr>
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<br />
Its <a href="https://www.investopedia.com/terms/p/pegratio.asp">Price/Earnings to Growth (PEG)</a> ratio stands at only 0.81 (P/E: 9.0 over 11 percent growth), which is quite attractive.<br />
<br />
By Comparing Sandfire's P/E with 3 of its Australian peers, it has a much cheaper P/E and yet distributes a substantially higher dividend.<br />
<div>
<br /></div>
<div>
<a href="https://finance.yahoo.com/quote/SFR.AX?p=SFR.AX&.tsrc=fin-srch">Sandfire Resources (ASX: SFR)</a>: </div>
<div>
P/E: 9 , Dividend: 4.00%</div>
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<br /></div>
<a href="https://finance.yahoo.com/quote/WSA.AX?ltr=1">Western Areas Ltd (ASX: WSA)</a>:<br />
P/E: 60 , Dividend: 0.84%<br />
<br />
<a href="https://finance.yahoo.com/quote/IGO.AX?p=IGO.AX&.tsrc=fin-srch">Independence Group (ASX: IGO)</a>:<br />
P/E: 51 , Dividend: 0.70%<br />
<br />
<a href="https://finance.yahoo.com/quote/NST.AX?p=NST.AX&.tsrc=fin-srch">Northern Star Resources Ltd (ASX: NST)</a>:<br />
P/E: 27 , Dividend: 1.10%<br />
<br />
It must be reminded that this is not a full apple-to-apple comparison as the 4 companies deal with a different range of metals and commodities.<br />
<br />
<b>Dividends</b><br />
<b><br /></b>
The dividends issued by Sandfire are fully-franked and thus will not be taxed on shareholders. This is also because the company has already paid taxes. "Franked dividends" is a term that prevent double taxing in Australia.<br />
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDezvhoRQBCUS81kr3lf6prczolzBQJgx9SPurhVM1rvhEXXd-PVB9a90jIulMA7rvHG64-rlLqnvp4Zy1FrLIr7_EdLDOcmFkxXRJCqeEqYNMKM1xgU-Gao7r8nZlxTWhU0FCwNfPTwto/s1600/Dividends.JPG" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="474" data-original-width="857" height="352" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjDezvhoRQBCUS81kr3lf6prczolzBQJgx9SPurhVM1rvhEXXd-PVB9a90jIulMA7rvHG64-rlLqnvp4Zy1FrLIr7_EdLDOcmFkxXRJCqeEqYNMKM1xgU-Gao7r8nZlxTWhU0FCwNfPTwto/s640/Dividends.JPG" width="640" /></a></td></tr>
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With a dividend of 27 cents per share issued in 2018, this translates to an estimated 4% dividend on the recent share prices.<br />
<br />
<br />
<b>Risks</b><br />
<b><br /></b>
Underground mining is an extremely dangerous activity. In each mining accidents or cave collapse, many lives can be lost. This leads to long mining downtime and loss of employees.<br />
Both the company’s reputation and profitability can be instantly and adversely affected if such accidents were to occur.<br />
<br />
As Sandfire deals with commodities, revenues can be easily swayed by price fluctuations of Cooper, Gold and Silver. As an example, we had witnessed and are still witnessing how low oil prices have affected the profitability of companies such as Exxon Mobil and Keppel Corp.<br />
<br />
With almost 90% revenue coming from cooper, financial position of Sandfire will go on a downward spiral during economy dooms since cooper is an economic indicator.<br />
<br />
Its main mine, DeGrussa, is also forecasted to last till year 2022, which is only 4 years away (despite new investments and assets made in other regions as shared earlier)<br />
<b><br /></b>
<b>Strengths</b><br />
<b><br /></b>
-DeGrussa owns one of the world's reportedly largest off-grid solar. Sandfire has been moving its dependence from diesel power to renewable energy by investing in solar systems. With solar energy, Sandfire can save an estimated 5 million litres of diesel per annum. (below video)<br />
-Diversified its portfolio in USA via 78% stake in Black Butte Copper Project<br />
-Rising copper demand along with lack of copper supply sources<br />
-Offers shareholders about 11% hedge from gold (based on revenues)<br />
-Low cost producer, zero long term debt and stable cash flows<br />
-6 years of safe mining operations<br />
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<b>To Sum It Up</b><br />
<br />
Sandfire Resources is still growing as a company , has 4% dividend yield, healthy financials and cheaper share price valuations to peers. AUD/SGD is also currently trading at 5 year low of S$0.99, which makes it cheaper for Singapore investors. While there are still risks to consider, my research showed that the pros far outweigh the cons.<br />
<br />
I have bought some Sandfire shares before it went ex-dividends on 10th September. (though it is advised to buy shares after ex-dividends)<br />
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These are the shares which I hesitated to buy way back in 2017 when it was much cheaper.<br />
Let's see how it goes and I may even add more if it gets cheaper.<br />
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<u><br /><span style="font-size: x-small;">Disclaimer:</span></u></div>
<div class="separator" style="background-color: white; clear: both;">
<span style="color: #393939; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: x-small;"><i>Writings made in this blog are based on opinions and findings. The writer/author of this blog is not liable on any liabilities or losses that arises from the contents of this blog</i></span></div>
<div class="separator" style="background-color: white; clear: both;">
<span style="color: #393939; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: x-small;"><i>Information shared in this blog does not guarantee completeness or accuracy.</i></span></div>
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<span style="color: #393939; font-family: arial, tahoma, helvetica, freesans, sans-serif; font-size: x-small;"><i>Subjects, demographics, currencies, shares or companies mentioned in this blog does not indicate as investment recommendations but solely for discussion and sharing purposes.</i></span></div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-81579320945618083512018-09-14T17:21:00.001+08:002018-09-19T19:14:27.093+08:00Hedging My Investments with SSBI have started to hedge my investments by selling Bumitama Agri to park into the “risk-free yielding” Singapore Saving Bonds (SSB) and getting some exposure to gold.<br />
<br />
The thought of hedging came as well after Wall Street reached its longest bull run history. Despite on-going positive GDP growths, unknowns can be dug out anytime and public investors like us will likely be caught off guard. Unless one can be confident that such warnings will be revealed to them in their life or profession before things happen, the overall risk is not really worth it.<br />
<br />
The current question in our minds during volatile times must be: should we sell all our investments now and take on lesser pain? (rather than greater pain of major corrections) While there is nothing wrong to do so even at a minor loss, it is not exactly what many will define as “long-term investing”.<br />
<br />
Instead of selling, we can turn to hedging. Hedging can come in many forms but it is a double-edge sword. It can either buffer our losses or amplify our pain through deepened losses / opportunity costs (eg. using SSB which has zero price appreciation as compared to stocks).<br />
<br />
I am looking at the following hedges:<br />
<br />
<u><b>Gold</b></u><br />
Although most gold companies or funds do not pay dividends, it is an obvious hedge tool to many.<br />
Copper is the Boon or Boom measure. Gold is the Doom measure. When it is all gloomy and doom, gold prices will move in the opposite direction of the general market.<br />
Some gold ETFs available are:<br />
<br />
-<a href="https://finance.yahoo.com/quote/O87.SI/">GLD US$ (SGX: O87)</a><br />
-<a href="https://finance.yahoo.com/quote/GLD?p=GLD&.tsrc=fin-srch">SPDR Gold Shares (NYSEArca: GLD)</a><br />
<br />
<b><u>Dividend Paying Companies</u></b><br />
During down times, dividends are not only bonuses given to us for staying vested.<br />
At the last resort, we can sacrifice our investments using the dividends already realized.<br />
<br />
As an example, I am currently losing $500 on each 1000 shares of Singtel.<br />
Till date, I have already received more than $500 worth of dividends from my whole Singtel investment.<br />
If there is really the need to sell partially now, it is a use of realized dividends as a sacrifice.<br />
<br />
Another option is to invest in dividend paying companies with some gold exposure. This is hedging in one investment in itself. Some mining companies are:<br />
<br />
-<a href="https://finance.yahoo.com/quote/OZL.AX?p=OZL.AX&.tsrc=fin-srch">OZ Minerals Limited (ASX: OZL)</a><br />
-<a href="https://finance.yahoo.com/quote/GLEN.L?p=GLEN.L&.tsrc=fin-srch">Glencore PLC (LON: GLEN)</a><br />
<br />
Pharma or defensive stocks are also "hedges". When the general market is in a correction, we can tell how defensive the pharma companies are from their downside deterrence.<br />
<b><u><br /></u></b>
<b><u>Singapore Saving Bonds (SSB)</u></b><br />
For risk-free products, we can turn to the popular SSB which rewards us interest every year at “no risks” and with no price fluctuations. I have signed up for October’18 SSB with an average of 2.42% annual interest over the span of 10 years. At this rate, it is higher than most interest yielding deposits out there without the obligation to perform any transactions. The money parked in SSB will be deployed during negative times when the stock market becomes a better alternative.<br />
<br />
While tariffs are implemented on China, there has been increased volume of shipments diverted to other ports such as Canada before shipping them to USA to evade them. UK may resort to voting for Brexit. Continual rising interest rates by the Feds. I am not sure if any the events ever reported in the news or something hidden from us will spark the next recession.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-75349008505696753032018-08-26T18:04:00.000+08:002018-08-26T18:19:58.863+08:00Micro Needling: The money it will save you from expensive facial sessions<div class="separator" style="clear: both; text-align: left;">
In my earlier post on <a href="https://tobidortosell.blogspot.com/2018/05/saving-47-to-50-of-salary-my-expenses.html">how I save nearly half of my salary</a>, the topic Micro Needling
was mentioned.</div>
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My apologies to UN for reading his comments this
late, requesting for more information on this topic.</div>
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Micro needling or other facial treatments commonly
costs us around $100 or more in Singapore facial outlets. Some of us may avoid
paying such hefty fees despite hoping to look younger or better. Many are
unware that it is a problem that can be solved by themselves. <o:p></o:p></div>
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When my dermatologist shared that micro needling
is a faster process than most other procedures, it led me to do some further
research. I was astounded to find out that we can easily do it ourselves,
saving us from facial packages. In fact, it is a growing trend and some
celebrities are also having these treatments. <o:p></o:p></div>
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<b>So What is
Micro Needling?</b></div>
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The process consists of rolling many teeny-tiny
needles over your skin, to encourage collagen/elastin production from beneath. This
results in younger, clearer skin and lightening of wrinkles/marks/scars. <o:p></o:p></div>
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One must be able to bear some pain and take
precautions while performing such invasive process. <o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Micro Needling
Products<o:p></o:p></b></div>
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We can get the needed products within Singapore. XMedicImports used to have an outlet in Bedok but
is now limited to its sole outlet in Jurong.<o:p></o:p></div>
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Fret not as their products can be mailed to your
doorstep. Delivery costs will appear accordingly on their online platform based
on the products that you picked. If you need further assistance on which
product suits you best, you can contact them via email stated on their <a href="https://www.xmedicimports.com/shop/index.php?main_page=product_info&cPath=69&products_id=186">site.</a>
For faster response, you can drop an instant message at <a href="https://sg.carousell.com/xmedicimports/">their Carousell account.</a><o:p></o:p></div>
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<b style="mso-bidi-font-weight: normal;">Alcohol
Disinfectant <o:p></o:p></b></div>
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<b style="mso-bidi-font-weight: normal;">Derma
Roller<o:p></o:p></b><b style="mso-bidi-font-weight: normal;"><br /></b></div>
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<b><br />Meso Calm
Solution</b></div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBHf1M8ZQLybUEHAzqU7wC8KrgjDbdg9poG3isePIs7WDFcUfqRlBwp0tgSa6NkAX-1er_qrmQKfrYnBslwPrDQYGSqsn3QWh089QUzR7iLpa58RZh21ktybYnh_JKgXithXSy4_p-AhdX/s1600/Meso+calm.jpg" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="1200" data-original-width="1200" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBHf1M8ZQLybUEHAzqU7wC8KrgjDbdg9poG3isePIs7WDFcUfqRlBwp0tgSa6NkAX-1er_qrmQKfrYnBslwPrDQYGSqsn3QWh089QUzR7iLpa58RZh21ktybYnh_JKgXithXSy4_p-AhdX/s200/Meso+calm.jpg" width="200" /></a><br />
<b><br />Medical
Grade Oxygen</b></div>
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<b style="mso-bidi-font-weight: normal;">How to perform Facial Micro Needling<o:p></o:p></b></div>
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</span></span></span><!--[endif]-->Cleanse your face and make it dry.<o:p></o:p></div>
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</span></span></span><!--[endif]-->Apply Meso Calm on your face to hydrate it.<o:p></o:p></div>
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</span></span></span><!--[endif]-->Disinfect your Derma Roller with Alcohol
Disinfectant. Make sure to dry your Derma roller to rid the alcohol before you
start micro needling. <b style="mso-bidi-font-weight: normal;"><o:p></o:p></b></div>
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</span></span></span><!--[endif]-->There is an effective and correct way of doing
derma rolling. The below video shows us the required directions (up and down,
and diagonally up and down) and how you should hold the derma roller. It is suggested
to roll 20-30 times lightly in each stated direction. Do not use too much
force. <o:p></o:p></div>
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<iframe allowfullscreen="" class="YOUTUBE-iframe-video" data-thumbnail-src="https://i.ytimg.com/vi/KmRP7jo85g0/0.jpg" frameborder="0" height="266" src="https://www.youtube.com/embed/KmRP7jo85g0?feature=player_embedded" width="320"></iframe></div>
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<span style="text-indent: -24px;">5)<span style="font-size: 7pt; font-stretch: normal; font-variant-east-asian: normal; font-variant-numeric: normal; line-height: normal;"> </span></span><span style="text-indent: -24px;">Once you have covered the areas you wanted, apply Medical Grade Oxygen and let it rest for 30-60 minutes. Wash your face clean, make sure it is dry and hydrate your skin (Please read up on the products to avoid after micro needling is performed ,before applying anything on your face)</span></div>
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<span style="text-indent: -24px;">6) Disinfect your derma roller with alcohol after use.</span></div>
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<b style="mso-bidi-font-weight: normal;">Precautions
To Take:<o:p></o:p></b></div>
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-Micro Needling is an invasive process and we need
to take good care of our skin while performing it. Any severe damages can be
long lasting or unpleasant to see.<o:p></o:p></div>
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-It is normal for the face to be reddish for
minimum of 1 day, depending on how many times and how much force is applied. It
is also normal to see a bit of blood. Thus, I will recommend one to perform the
procedure on a Friday night and reddishness will be gone by Monday when you go
to work. <o:p></o:p></div>
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-If you have sensitive skin, please check with
your dermatologist if you are suitable for such procedure.<o:p></o:p></div>
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-Tip: It will be good to first try micro needling on
a small part on your skin or your hand to see its effect. <o:p></o:p></div>
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-Let the skin rest 3-4 weeks after each procedure.
This will allow the release of collagen to last longer as well as ensure faster
recovery. <o:p></o:p></div>
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-Do not use facial washes around for 2 weeks after the
procedure. If you need to, please read up on the products which are suitable. <span style="mso-spacerun: yes;"> </span><o:p></o:p></div>
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-Important: Ensure sun screen protection 1-2 weeks
after procedure.</div>
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For more in-depth guide and research, you may visit the <a href="http://beautyproductwarnings.com/micro-needling">given site</a> specializing on beauty and wellness.<br />
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<span style="background-color: white;"><u>Please do read up more before performing micro needling and take your own needed precautions. Nobody else will be liable as it is your skin after all!</u></span></div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com1tag:blogger.com,1999:blog-5872589584051161157.post-15627087359083963172018-08-25T18:57:00.005+08:002018-08-25T20:58:20.129+08:00Monthly Expenses: August 2018<b><u>Total Expenses: $1,284.80</u></b><br />
<b><u><br /></u></b>
<b><u>Family: $550</u></b><br />
-Monthly Allowance for Parents: $550 (recurring)<br />
<br />
<b><u>Utilities: $76.00</u></b><br />
-Handphone Bill: $23 (recurring)<br />
-Internet bill: $53 (recurring)<br />
<br />
<b><u>Food & Coffee: $364.70</u></b><br />
<br />
<b><u>Transport: $83</u></b><br />
-Ezlink Topup: $70<br />
-Grab: $13<br />
<br />
<b><u>Others: $211.10</u></b><br />
-4D and Toto bets: $18<br />
-Household goods: $31<br />
-New work shoes: $87.20<br />
-New shoes for my love: $39.90<br />
-Miscellaneous: $35<br />
<br />
(Period: 26th July to 26th August, 2018)<br />
<br />
My food and transportation expenses have remained constant as compared to last month's. The betting had been slightly reduced but I think it is not good enough; below $10 will be great.<br />
<br />
Overall expenses this month have been jacked up by around $100 due to my 3 years old work shoes finally giving its way ; and when repairing it isn't worth it as it may not last long.<br />
Hesitantly, I got a new shoe from an outlet store at a cheaper offer.<br />
<br />
Most of the new expenses in August came from buying things for my girlfriend as I dote on her (more than myself.)<br />
And one can easily say no to themselves but not to their girlfriends, right? lol<br />
<br />
I am not sure if annual expenses such as air tickets and hotel charges should also be factored in as well when it is already a minimal <u>one time event</u>.<br />
<br />
Though it is fine to stay in Singapore 365 days in a year, I guess it will be healthier for anyone to go out and enjoy different culture and places with our loved ones time to time. Those are the meaningful time which we get to spend with them when our personal time is already so limited. Plus, it keeps our mind sane by being away from the hectic life just for a while.<br />
<br />
Thus, it may not be a good idea to include such special expenses to stress ourselves.<br />
Or should we still do it?<br />
Probably, we can use our investment realized earnings or dividends to cover them?<br />
<br />
It is a paradox indeed.<br />
<br />
Will it be considered working too hard if we factor them in?<br />
Or will it considered cheating when they are omitted?<br />
There are no right or wrong answers.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com2tag:blogger.com,1999:blog-5872589584051161157.post-9668571465417409432018-08-18T17:03:00.002+08:002018-08-25T20:57:37.234+08:00Recent Transactions and Dividends: June to August 2018<span style="font-size: 13.5pt;">The market has been restricting much upside gains but it is a good
time to accumulate on the dips. As you guys noticed, I frequently change stocks
to gain on price appreciation and sell them when limited upside is foreseen.
This is my strategy as a young investor to build up capital size. The strategy
will definitely change to a high yielding portfolio as I age to reduce the risk reward ratio.</span><br />
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<br /></div>
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<span style="color: black; font-size: 13.5pt;">Sometimes, my exit may be too early which is something I am still
mastering. Like Peter Lynch wrote in his book, <i>“It's easy to make a mistake and
do the opposite, pulling out the flowers and watering the weeds"</i>. I
believe my stock picking isn’t shabby but I am guilty of selling stocks too
early at various occasions despite making profits.<o:p></o:p></span></div>
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<br /></div>
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<u><span style="color: black; font-size: 13.5pt;">Recent Transactions and Dividends:<o:p></o:p></span></u></div>
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<br /></div>
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<b><span style="color: black; font-size: 13.5pt;">June 2018</span></b><span style="color: black; font-size: 13.5pt;"> <o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;">Purchased: LCI Industries, Singtel<o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;">Sold: IRobot<o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;">Dividends: LCI Industries<o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;"><br /></span></div>
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<span style="color: black; font-size: 13.5pt;">-Profited from IRobot with a 20% gain ($80.50 - $67). After which, it
continued to rise another $15 per share. <o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">-Added more LCI Industries<o:p></o:p>
shares to my position.<o:p></o:p></span><o:p></o:p></div>
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<br /></div>
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<b><span style="color: black; font-size: 13.5pt;">July
2018 </span><o:p></o:p></b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Purchased: UOL<o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;">Sold: UOL, Singtel (those bought in
June) <o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;"><br /></span></div>
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<span style="color: black; font-size: 13.5pt;">-Earned some pocket money by trading UOL and Singtel (non-contra)</span></div>
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<b><span style="color: black; font-size: 13.5pt;">August 2018</span><o:p></o:p></b><span style="color: black; font-size: 13.5pt;"><o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Purchased: ST Engineering, Alibaba ADR<o:p></o:p></span><o:p></o:p></div>
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<span style="color: black; font-size: 13.5pt;">Sold: Sanofi ADR, LCI Industries<o:p></o:p> <o:p></o:p></span></div>
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<span style="color: black; font-size: 13.5pt;">Dividends: Singtel<o:p></o:p></span></div>
<div style="margin-bottom: .0001pt; margin: 0in; tab-stops: 135.75pt;">
<span style="color: black; font-size: 13.5pt;"> </span><br />
<span style="color: black; font-size: 13.5pt;">Sanofi was sold with a decent 9.6% gain. </span><span style="font-size: 13.5pt;">Finally, Singtel investors received some juicy dividends while taking current paper losses. Singtel is the only stock which
I bought for my parents and my girlfriend to help them better fight inflation. The
recent price drops do give me some concerns mentally but I believe the fundamentals
are intact.</span></div>
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<br /></div>
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<span style="font-size: 13.5pt;">LCI Industries<o:p></o:p>
was trading widely recently and I have to let it go for now with only a 5+% gain. despite some </span><span style="font-size: 18px;">hesitance</span><span style="font-size: 13.5pt;">. It may be a good
thing since it is a pure cyclical stock. <o:p></o:p></span></div>
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<br /></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<span style="color: black; font-size: 13.5pt;">I have also purchased both ST Engineering and Alibaba at near key
support prices using DBS Vickers Cash Upfront. This is my first time using cash upfront on a foreign stock, saving me additional brokerage fees.<o:p></o:p></span></div>
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<br /></div>
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<span style="color: black; font-size: 13.5pt;">Alibaba will be reporting their Q2 2018 results on next Thursday,
23<sup>rd</sup> August. So please keep a lookout if you are interested. </span><span style="font-size: 13.5pt;">Like many investors, we have great confidence in Jack Ma’s
leadership and Alibaba’s vast business model: Lazada, Alibaba Cloud, TMall, Taobao,
Zto Express, Yahoo China , Ofo Bikes etc. And recently Kroger.</span></div>
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<span style="font-size: 13.5pt;"><br /></span></div>
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<span style="font-size: 13.5pt;">I have updated my portfolio in this blog. While exercising control on my portfolio
size, I will be watching shares of </span><span style="font-size: 18px;">Alphabet</span><span style="font-size: 13.5pt;">, Sanofi, LCI Industries and a UK fast
grower closely to take advantage when price is right.</span></div>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih3tjIX0hNSCM6bwglWHFECKxOD18S1_3uTwGwUYU1P0twJFxUV42qJN9SklZ39vdtQmN5QMbLWJd4-HAvkUow4zCiDFwGNK7UwWjfuG7Q2cA49pX1eReXaIRF8LP-ENvie3Sq8BylOmwI/s1600/Portfoolio+Aug+2018.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="126" data-original-width="585" height="136" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEih3tjIX0hNSCM6bwglWHFECKxOD18S1_3uTwGwUYU1P0twJFxUV42qJN9SklZ39vdtQmN5QMbLWJd4-HAvkUow4zCiDFwGNK7UwWjfuG7Q2cA49pX1eReXaIRF8LP-ENvie3Sq8BylOmwI/s640/Portfoolio+Aug+2018.png" width="640" /></a></div>
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<i><b><br /></b></i></div>
<div style="margin-bottom: .0001pt; margin: 0in;">
<i><b>*Ranking is based on portfolio size</b></i></div>
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<span style="color: black; font-size: 13.5pt;"><br /></span></div>
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<span style="color: black; font-size: 13.5pt;">Bumitama Agri will be issuing dividends on 14<sup>th</sup>
September after reporting fantastic results along with Wilmar recently. </span></div>
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<span style="color: black; font-size: 13.5pt;">Congrats to investors of both clans and let's await for some dividends. </span></div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com1tag:blogger.com,1999:blog-5872589584051161157.post-11844452708438001442018-08-05T16:54:00.004+08:002018-08-25T20:58:07.829+08:00Monthly Expenses: July 2018<div>
<div>
<b><u>Total Expenses: $1,159.90</u></b></div>
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<br /></div>
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<b><u>Family: $630.00</u></b></div>
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-Monthly Allowance for Parents: $550 <span style="white-space: pre;"> </span>(recurring)</div>
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-Mum’s birthday dinner treat</div>
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-Cousin’s 21st Birthday red packet</div>
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<br /></div>
<div>
<b><u>Utilities: $76.00</u></b></div>
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-Handphone Bill: $23 (recurring)</div>
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-Internet bill: $53 (recurring)</div>
<div>
<br /></div>
<div>
<b><u>Food: $353.80</u></b></div>
<div>
-Groceries: Instant coffee, snacks, cereals</div>
<div>
-Hawkers/Restaurants</div>
<div>
-Coffees/desserts</div>
<div>
<br /></div>
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<b><u>Transport: $60.00</u></b></div>
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-Ezlink Reload X 2</div>
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<br /></div>
<div>
<b><u>Others: $40.10</u></b></div>
<div>
-Household products: Bathroom soap, Tissue boxes</div>
<div>
-WC, 4D and Toto bets: $27</div>
<div>
-Haircut: $5</div>
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<br /></div>
<div>
<i>(Period: 26th June to 26th July, 2018)</i></div>
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<br /></div>
<div>
Before reading the book "Your Money or Your Life", I have been tracking my expenses since the month of May 2018. As the months goes by, the revelations of where my money flows start berthing to the surface. While the steps in the book did instruct us to categorize each of our spending and investigate if they align with our life purposes and values, it may not be necessary for everyone. </div>
<div>
<br /></div>
<div>
Expense tracking apps alone should be suffice for some people, especially those already frugal. In the recent pages read, the book also encourages us to talk to someone or blog about our money journey. This gives us a greater sense of responsibility and accountability.</div>
<div>
So here I am. </div>
<div>
<br /></div>
<div>
In July, the new expenses (birthday gifts/treats) under Family category are both non-recurring and well spent. No further efforts on my part to reduce them. It was an overall good month compared to the past. Due to the recent World Cup fever, I did wasted some money on betting in both June and July (along with 4D and Toto). </div>
<div>
<br /></div>
<div>
But like the book says: No Shame, No Blame. Instead, it is a journey of reflection and realization. </div>
<div>
<br /></div>
<div>
To further improve, I have started cutting down on the daily morning $1.50 coffee and switching to <b><a href="https://www.fairprice.com.sg/product/super-essenso-microg-coffee-2-in-1-coffee-25s-x-16g-13077013">Essenso 2-in-1</a> </b>costing only $0.26 per pack lol. (Get a free umbrella when you purchase 2 packs at once)</div>
<div>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIc1Mw92YV06B43SSP3l0XfuTTM8ShJevgmkacvhJTi1yKbWbKZsuCs3Zuf7v9s1nGKkmhDBqqajIC4xsurbU-jeEGDlckeiKESfvbyt2i6WQMsIfPGVjDGx9kx30qEGRDdlcO557o2pBD/s1600/Essenso.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="540" data-original-width="474" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjIc1Mw92YV06B43SSP3l0XfuTTM8ShJevgmkacvhJTi1yKbWbKZsuCs3Zuf7v9s1nGKkmhDBqqajIC4xsurbU-jeEGDlckeiKESfvbyt2i6WQMsIfPGVjDGx9kx30qEGRDdlcO557o2pBD/s320/Essenso.png" width="280" /></a></div>
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<div>
The weekly bets will also have to be further reduced. The cash will be better utilized on food and transport. </div>
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<div>
Thanks for reading.<br />
I hope that you are also making your own efforts on the money journey.</div>
Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-26634667298422643222018-08-03T21:29:00.002+08:002018-09-30T13:25:32.000+08:00Opening of DBS Multiplier & UOB One depositsWe have seen a few revamp from some of the banks such as the recent policy update by UOB One account effective 1st August 2018. Being a financial savvy adult becomes complicated nowadays, with the abundance of many deposit accounts out there such as the CIMB FastSaver Account and BOC SmartSaver Account at your discretion to earn higher interests.<br />
<br />
Honestly, I have not been the most updated on the subject and hence was late in switching my deposit accounts to one with a higher interest. In fact, it is almost 6 months late since the revamp of the DBS Multiplier Account. Better late than never?<br />
<br />
I have peers who are also hesitant to switch to better accounts due to the hassle involved such as informing the HR to amend the salary crediting account and the need of moving large sums of money to a new account.<br />
<br />
As we know, different deposit accounts suit different spending habits to yield each of us an optimal annual interest.<br />
Before I go into why I choose DBS Multiplier and UOB One, below are the factors/expenses which led to my decisions.<br />
<br />
•<span style="white-space: pre;"> </span>Credit card spend (usually less than $500)<br />
•<span style="white-space: pre;"> </span>3 bills to pay (Debit GIRO Transactions)<br />
•<span style="white-space: pre;"> </span>Crediting of salary (over $2000)<br />
•<span style="white-space: pre;"> </span>Investments: Brokerage transactions executed almost month to month<br />
<br />
After comparisons made between some deposit accounts and credit cards, I decided to choose UOB One and DBS Multiplier. In expense, OCBC 360 will be sacrificed soonest. Let me share with you why they are a good fit in my scenario and some of which may also be applicable to inform you on how you can take advantage of the accounts' criteria (especially on the investments portion).<br />
<br />
<b>DBS Multiplier Account</b><br />
-Multi-Currency Account (MCA)<br />
-Higher Interest Rates for up to first $50,000 balance<br />
-Fall Below Fee applicable for balances under $3000<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJNYOW7f9RduAos8ZabIxvGKw4enzDw1lIpSg5nkq62NSjxc7pCqoiRrUsdm6W8-Om37nTqSWx3ohYBfrr-5MguLnbHYKLtU2OekY2rNbZO1Vx0Wah7dBR3vL5g4WUXcElntVmzyCK3KY2/s1600/DBS.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="484" data-original-width="1025" height="299" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiJNYOW7f9RduAos8ZabIxvGKw4enzDw1lIpSg5nkq62NSjxc7pCqoiRrUsdm6W8-Om37nTqSWx3ohYBfrr-5MguLnbHYKLtU2OekY2rNbZO1Vx0Wah7dBR3vL5g4WUXcElntVmzyCK3KY2/s640/DBS.JPG" width="640" /></a></div>
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To earn juicer interests, DBS Multiplier requires you to credit your salary (mandatory) along with any one of the other 4 categories to further stack your interest returns. The great thing is that there is no minimum imposed on salary crediting amount OR credit card spend to limit us from earning higher interest. In addition, different types of currencies in your Multiplier Account are also eligible to earn you interests.<br />
<br />
As shown below, you will be entitled for the interests even if your salary are credited into other DBS/POSB deposit accounts (than the Multiplier account itself). This was confirmed further with the sales at the DBS branch.<br />
Do read up on the <b><a href="https://www.dbs.com.sg/iwov-resources/pdf/deposits/multiplier-programme/DBS%20Multiplier%20Programme_FAQ.pdf">T&C</a> </b>for more details.<br />
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<div class="separator" style="clear: both; text-align: center;">
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In my opinion, DBS has the most complete product bundle currently in terms of credit card, saving accounts and investments. It will be a bonus if you are taking DBS house loan OR are insured under any of their Manulife products.<br />
<br />
As seen in the above calculator, I can earn around 2.2% interest per annum by:<br />
•<span style="white-space: pre;"> </span>Crediting my salary.<br />
•<span style="white-space: pre;"> </span>Making any transaction with my POSB Everyday credit card ($1/month is also eligible). I plan to use this card as my EZ Link, since transport cost is inevitable for work.<br />
•<span style="white-space: pre;"> </span>Executing “Buy” transactions on stocks using DBS Vickers.<br />
•<span style="white-space: pre;"> </span>Credit of dividends into my DBS saving accounts.<br />
<br />
To investors out there who trade foreign stocks, I am going to explain why using DBS Vickers will be very beneficial to your wallet. Here is why!<br />
<br />
<b>•<span style="white-space: pre;"> </span>Since the Multiplier account is able to contain 12 different foreign currencies, your money in other type of currencies (eg. USD or GBP) will no longer need to be stuck in your trading account balance doing nothing. They will be transferred to your MCA account automatically without the need of self withdrawal (if account linkage is done).</b><br />
<i>*Update: Foreign currencies are not eligible to the higher interests. </i><br />
<b><br /></b>
<b>•<span style="white-space: pre;"> </span>By using MCA, you can convert your SGD into other currencies at the banks’ rate (which is more attractive compared to a non multi-currency account). Furthermore, you can hold on to them and exchange them back to SGD when it is deemed more attractive.</b><br />
<b>•<span style="white-space: pre;"> </span>You will earn interests from your "Buy" transactions and dividends received, as explained earlier.</b><br />
<b>•<span style="white-space: pre;"> As an introduction to non DBS Vickers users, "</span>Cash Upfront" payment provides us heavily discounted brokerage fee when we purchase shares by paying cash upfront to the bank. This used to be only limited for SG stocks. Fortunately, they are now applicable to foreign stocks after you link your MCA account to the Vickers trading account.</b><br />
<u><br /></u>I really like the whole Mutiplier package and it strongly favors me in earning higher interests while taking advantage of more savings from investments.<br />
<u><br /></u>
<b>UOB One Account</b><br />
-Higher Interest Rates up to the first $75,000<br />
-Fall Below Fee applicable for balances under $500<br />
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<div class="separator" style="clear: both; text-align: center;">
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<b>There is an ongoing new accounts promotion from 16 July to 31 August 2018. Every new UOB account member will get $100 if the account is applied online. You will also need to deposit $5,300 into your Fresh Funds and SMS the bank to register for this promotion. <a href="https://www.uob.com.sg/assets/pdfs/terms-and-conditions-nos.pdf">Terms and conditions apply.</a></b><br />
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Since I am already holding UOB One credit card, there is no harm of having a deposit account to capitalize on rebates from forecasted wedding and travel expenses. Due to my low frequencies of hitting high credit spends, I decided to charge my monthly Prudential payments to this card to push the monthly spending above $500. (to be explained below)<br />
<br />
There are two sections in this account in order to maximize the interest returns.<br />
First is the almost mandatory credit card spend of $500 or more. One must note that UOB One account interests are issued month to month while UOB One card requires you to spend $500 or more <u>for 3 consecutive months</u> to get good rebates. On the second part, you can choose between salary credit OR 3 Debit GIRO transactions. Since my salary credit is already used on DBS Multiplier, I shall perform my 3 bill payments under UOB One account instead.<br />
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To avoid the fall below fee, only a minimum balance of $500 is required (which differs significantly from the $3000 requirement in OCBC 360 and DBS Multiplier).<br />
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So give it a though, which packages out there suit you most?<br />
Feel free to throw your questions if you have any doubts on the two accounts mentioned.<br />
<br />
With all these said, the many different interest account packages are making Singapore Saving Bonds (SSB) much less attractive nowadays, especially for people with lesser net worth. Just my opinion.Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com9tag:blogger.com,1999:blog-5872589584051161157.post-45894624845126183812018-07-20T17:04:00.002+08:002018-07-21T14:26:32.211+08:00Review of My Favorite Investing Books<span style="font-weight: 400;">So far, I have only read a total of 6 books with 1 of them still in progress. Guess this is the cheaper version of self learning as compared to going to investment courses that may turn out to be bogus. </span><span style="font-weight: 400;"><br /></span><br />
<span style="font-weight: 400;">Here is a review, summary and ratings of my favorite 4 books. The ratings represents my personal view and it may be wise to also check out the ratings of other readers on Google.</span><br />
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<b><u>The Millionaire Next Door - Thomas J. Stanley</u></b></div>
<h3>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyUa3Dn7JTW90ZjeX-fkGl2qxomiMKd9AzBVbuIbgrCo2329Yia6IPztfvwn2KJUNuWrrtXn8uriK7oLFKPIk2sV8rpzuMRVq4FlyWh3DQPIjnc-o_i4_C6qXHFGHwStj9V6LL97wP_cP3/s1600/Millionaire.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="593" data-original-width="387" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgyUa3Dn7JTW90ZjeX-fkGl2qxomiMKd9AzBVbuIbgrCo2329Yia6IPztfvwn2KJUNuWrrtXn8uriK7oLFKPIk2sV8rpzuMRVq4FlyWh3DQPIjnc-o_i4_C6qXHFGHwStj9V6LL97wP_cP3/s320/Millionaire.JPG" width="208" /></a></div>
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This is very easy to understand book and it is mostly based on surveys and research done by the author on the general public. It can really open the eyes of the readers who are used to viewing things on a shallow basis. While this may sound obvious, the authors wrote about how the media portrays the wealthy families generally having fanciful houses and cars along with thoughtless spending on a luxurious lifestyles. Which variety show or commercials will show a boring self-made millionaire who does not look like one from the car he drives, the house he lives in and the clothes or watch he wears? Most viewers will not be attracted to such a boring theme.</div>
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The case studies shared showed some interesting insights about millionaires:</div>
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•<span style="white-space: pre;"> </span>You will not notice them as millionaires if they were to be your neighbor, simply by looking at what the things they owned and the life they lead.</div>
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•<span style="white-space: pre;"> </span>They are frugal and invest more than non-millionaires. And usually, their parents are frugal too.</div>
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•<span style="white-space: pre;"> </span>As they stay in normal neighborhoods, they blend in with other people of different net worth classes. It will be the opposite if one stays in a neighborhood of high-consumers, he or she will feel pressurized to match their houses/cars/clothing/lifestyles to the “rich” environment.</div>
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•<span style="white-space: pre;"> </span>Their parents are often low consumers. When children are brought up in a high consumption environment using their parents’ money, they will learn "to live, they must splurge and consume". They tend to live the same spending lifestyle as they get older but may fail to earn as much income as their parents did. </div>
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By net worth accumulated, the population is categorized into Under Accumulators of Wealth (UAW) and Prodigious Accumulators of Wealth (PAW). PAWs are those who has high net worth and are on the way to being or already are millionaires. UAWs are the exact opposite and it is impossible for them to turn millionaires without striking lottery or getting an hefty inheritance.</div>
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People in the UAW group are not necessarily low income earners. Despite that there are numerous high income earners in the UAW group, they spend most of their earnings away. Some PAWs may have lower income than some UAWs but that does not stop them from becoming millionaires because they live <u>below their means </u>; such as owning normal houses and going for second hand cars. </div>
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<br /></div>
<span style="font-size: small;"><i>*Thus, there is no need to be jealous or envious of someone who appears rich from their spendings. They may be the UAWs of the population.</i></span><br />
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<div style="font-size: medium;">
PAWs usually find the cheapest deal too. For example, those who are not in a rush to have a car will wait for the winter seasons to make their purchase when the demand is the lowest. During this period, it is very easy to walk away with a car on a great deal.</div>
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Other examples showed that parents who kept giving cash gifts to their children actually provides unhealthy dependence. Giving them independence actually helped children to learn the importance of wealth accumulation.</div>
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If you want to understand how millionaires accumulate their wealth or if you are looking for motivation to save more income, this is the book for you.</div>
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</h3>
<b><i>Rating: 4.0 /5.0 </i></b><br />
<h3>
<b><br /><br /><u>One Up on Wall Street - Peter Lynch</u></b></h3>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQPQIpdlOmQ8PRaplXVCpwnj0WyTQBIviT_m7o-7qLVO6Gr5TkFftbpse8GnLysIu2KajzzZBjxI7xTRgVsuVzxcT2cwPMdx56hVSjzsQJd-VaMkU-iPYOWb7OWhEnvp14Dewv6VnBWBoB/s1600/One+up+on+wall+street.jpg" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="598" data-original-width="425" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQPQIpdlOmQ8PRaplXVCpwnj0WyTQBIviT_m7o-7qLVO6Gr5TkFftbpse8GnLysIu2KajzzZBjxI7xTRgVsuVzxcT2cwPMdx56hVSjzsQJd-VaMkU-iPYOWb7OWhEnvp14Dewv6VnBWBoB/s320/One+up+on+wall+street.jpg" width="225" /></a><br />
<b><br /></b>
One Up on Wall Street is sectioned into 3 chapters: Preparing to Invest, Picking Winners, The Long-Term View.<br />
<br />
The first chapter is an introduction to investors, telling us not to make guesses and assumptions which lead to speculations. Picking Winners, the second chapter, is an important one covering Peter Lynch’s strategy to finding great stocks which may eventually lead to multi-baggers. It was mentioned that it is still not too late to catch a multi-bagger even if it has already returned a two to three folds. Some stocks will continue to return another 10 folds after doubling or tripling. And it does not stop at getting into the right stocks; we need to recheck the company’s story after a few months of owning them.<br />
<br />
Here is his well-known company segregation:<br />
<ul>
<li>Slow Growers: These are stocks we owned mainly for the dividends because the companies are growing at a very slow pace, which equals to slow share price movements. We need to be aware of the percentage of earnings used to pay dividends. When a company earns little money and pays a high percentage of income to dividends, it will be unstable during hard times .</li>
<li>Stalwarts: These are companies which are established, stable and with strong on-going income. We can use PE ratio to analyse them. As they have been growing for many years, it is important that their long-term growth rate is maintained. Any slowdown can be seen as a warning sign to check further. There is also a need to check on any factors that will reduce future earnings. </li>
<li>Cyclicals: As the name said it, cyclicals move with the economy. What we need to look out for here is rising inventories, supply/demand relationship and any new huge competition. PE ratio can be misleading: PE can be low when earnings are at its peak. This will be the riskiest time to invest in such stocks as it is at the end of a good cycle. It is surely a good time to scope these companies during slump periods and bad times. </li>
<li>Fast Growers: These companies are possible multi-baggers. Their growth rate in earnings should be around 20-25% to be favorable. When the company is able to be successful in different new places and is fast expanding, has a lot of room to grow and their stocks are still unheard of by many intuitions or analyst, it is the best time to buy their stocks.</li>
<li>Turnarounds: Such companies are facing very bad times and it is also risky to invest in them without doing much research. The most important question to ask is will the company turn around and get their business back?</li>
<li>Asset-play: Companies which have piles of cash, patents, property or any underlying assets that are not well known to outsiders are asset plays. You will win big by buying these companies way below their intrinsic value and wait for the public to recognize its true hidden value.</li>
</ul>
To end it , the last chapter is a summary of how we should view our stocks in the “Long Term View” such as how to design a long-term portfolio and deciding when to sell. We should not fall in love with our stocks.<br />
<br />
I give this book the highest rating due to the in-depth sharing on the strategies in finding great stocks and the awareness we need to take to avoid certain stocks at a certain time. Most importantly, the phrases used are very straightforward to read with ease.<br />
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<b><i>Rating: 4.5 /5.0 </i></b><br />
<h3>
<b><br /><u>Beating The Street - Peter Lynch</u></b></h3>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6SlPO3JHcZHgbu9yE-1Nsb-drU_PsDVyVVsoJyknQXIoKshRTPwn6qqQB_9SA702dS0doE0JETeWX1Qo5t-eUMaZN6Xzih-Imjo5VidD2LgGpuXs7dwSLVlUKel8SOOMLvz31I5yQCWBm/s1600/Beating+the+Street.JPG" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em;"><img border="0" data-original-height="597" data-original-width="383" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj6SlPO3JHcZHgbu9yE-1Nsb-drU_PsDVyVVsoJyknQXIoKshRTPwn6qqQB_9SA702dS0doE0JETeWX1Qo5t-eUMaZN6Xzih-Imjo5VidD2LgGpuXs7dwSLVlUKel8SOOMLvz31I5yQCWBm/s320/Beating+the+Street.JPG" width="201" /></a><br />
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In the beginning, it was introduced on how Peter Lynch has successfully built Magellan Fund during his tenure as a fund manager for Fidelity Investment from 1977 to 1990. The fund grew an additional of $10 billion by 1987 from an initial size of $100 million, thanks to his stock picks namely Chrysler, Ford, GM, Philip Morris, Volvo, General Electric and Fannie Mae in the early 1980s.<br />
<br />
In the later part of the book, Lynch shared how he researched and pick 21 companies he recommended in 1992 Barron's Magazine Roundtable stock. Retail is the first place he will look at as it is a common place to openly observe on new things or food which people will go for, even if the businesses may seem boring. The investor noticing such successful business in the early days will profit tremendously as prime growth usually last for a few years.<br />
<br />
Searching for undervalued and profitable companies in depressed industries and observing the predictable behaviors of cyclical stocks are some of Lynch’s favorite strategies which were elaborated. Searching for good gems is the start but not the end in successful investing. Lynch explained that re-evaluating current investments around every 6 months is very crucial to keep oneself informed. This is to check if the story has changed and what are the new plans for the future in order to decide what you should do next.<br />
<br />
It was also repeated a few times in the book that stocks generally outperformed bonds as history has supported. Bonds actually returned the investor with the cash that was inflated but does not necessarily beat inflation (but merely offset).<br />
<br />
I really liked how the book shared the strategies and steps required in the search of stock gems, which is very technical. Not many books do this as straightforward as this book does. There are certain parts in the book I found deeply applicable in real life:<br />
1.<span style="white-space: pre;"> </span>Investing as a retailer: If we will to do this during our shopping OR heard of Invisalign made by Align Technology from our friends or girlfriend/spouse, we would have invested in these multibaggers early on. Estée Lauder is another example from cosmetics, look at their stock!<br />
2.<span style="white-space: pre;"> </span>“Searching for undervalued and profitable companies in depressed industries” sounds exactly like what Keppel and Sembcorp Industries are facing since the drop in oil prices. Yet in such doom times, both have managed to remain profitable.<br />
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Ending the book, there are 25 Golden Rules in investing which we should keep reminded throughout our lives. This book is quite similar to One Up on Wall Street in my opinion.<br />
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<b><i>Rating: 4.5 /5.0 </i></b><br />
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<h3>
<b><u>The Essays of Warren Buffett: Lessons for Corporate America- Warren Buffett</u></b></h3>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3xgdXXmU7NYjAjSn1DEO2xQPzl_rC-1f4GiiP2IDOui_aeDuk6I24NoWM7QFjRnuNzSicZ4MVnaMSpHSE8ZVOKmqmcIHnawi-SckCbr-CvDZK_nKeflIAwnn7CfJ46J80lgWe2AfVBsXx/s1600/Essays+Of+Buffett.jpg" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-right: 1em; text-align: center;"><img border="0" data-original-height="499" data-original-width="329" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg3xgdXXmU7NYjAjSn1DEO2xQPzl_rC-1f4GiiP2IDOui_aeDuk6I24NoWM7QFjRnuNzSicZ4MVnaMSpHSE8ZVOKmqmcIHnawi-SckCbr-CvDZK_nKeflIAwnn7CfJ46J80lgWe2AfVBsXx/s320/Essays+Of+Buffett.jpg" width="209" /></a><br />
<br />
The book revolves around mainly on the organization and management of Berkshire Hathaway and its investors will surely enjoy the book. I would not have known that Berkshire Hathaway stocks are different from other American companies without reading this book. The message conveyed to the investors in Berkshire’s annual reports are meant to attract long-term investors who are willing to stay put and not be affected by the wild short term price changes. The aim of Warren Buffett and Charlie Munger is to keep Berkshire’s share price as close to its intrinsic value. Any variances in prices to<br />
Intrinsic value are viewed to have negative effects on both the new investors and the long-term investors.<br />
<br />
Many analogies were given to encourage long-term investing, to reap the benefits which a growing company can offer over the many years. Investing is like buying over a business, one does not simply sell his stakes when a real business becomes valuable. Instead, he should remain his stakes so long as the company is creating value and income to the owner.<br />
<br />
Personally, I enjoyed ,Chapter 5:Accounting and Taxation, the most. This is the summary:<br />
<br />
•<span style="white-space: pre;"> A</span>nnual reports are reported accordingly to GAAP but not necessary to the true values. As an example, many previous business owners have objected to Stock options being recorded in accounting as “it is hard to find its true value”. This excuse was given to avoid it being treated as an expense. However, this makes no sense. Depreciation are to be recorded according to GAAP when its values are usually based on estimations. (unknown true value)<br />
•<span style="white-space: pre;"> </span>Economic Goodwill VS Accounting Goodwill:<br />
Economic Goodwill is a hidden value and grows with inflation while Accounting Goodwill is recorded in financial statements and will usually depreciate overtime. Economic Goodwill can actually far exceed the Accounting Goodwill that was reported in annual reports, and is a big win to investors in such cases.<br />
•<span style="white-space: pre;"> </span>Deferred Taxes are “forecasted taxes” and usually inaccurate. By reporting deferred taxes in advance, it can greatly influence the company’s reported net worth.<br />
•<span style="white-space: pre;"> </span>Book Value are figures reported based on accounting rules while Intrinsic Value is the figure based on projected future cash flows with consideration of the US treasury yield curve.<br />
•<span style="white-space: pre;"> </span>Look-through earnings: This is most applicable to companies who owns other companies. A GAAP only requires the owning companies to report figures when the ownership is between 20% to 50%. If the ownership is less than 20%, only dividends received are allowed to be recorded.<br />
Let’s say Company A owns only 15% of Company B, only dividends will not reported but not their earnings. This can greatly understate the income of Company A if Company B’s revenue is capable of growing extensively.<br />
<br />
It is a good book to pick up skills on how to uncover annual reports mysteries which are presented to look great. The "how to" guides are useful but some are not straightforward or are given in full details. For instance, intrinsic value was compared to book value but the formula to derive intrinsic value was not fully explained in the book.<br />
Nevertheless, it is overall worthwhile the time to finish the book.<br />
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<b><i>Rating: 4.0 /5.0 </i></b>Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-17963004070711007312018-07-05T15:52:00.002+08:002018-07-06T12:18:12.781+08:00Analysis: Mid Value in Current Holdings<div class="separator" style="clear: both; text-align: center;">
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The recent weeks have been rather interesting. There are lots of doom in the markets as well as surprises in the World Cup tournament. I am glad that one of my Cup winner bet is still kicking alive, after the exit of first bet Germany. Been also quite busy spending my free time catching up on books, TV shows/ 8 Pool game and fitness. It makes me wonder if I am a greedy person wanting to do so much.<br />
<br />
Portfolio movements has been rough. My SG stocks are pulling down my overall performance,with Singtel as the main culprit. US shares are somehow doing fine. Thus, there are not much transactions made in June. I have also sold my IRobot shares at a 20% gain as it went up higher too fast.<br />
<br />
<a href="https://tobidortosell.blogspot.com/2018/05/saving-47-to-50-of-salary-my-expenses.html">As mentioned earlier,</a> I have replaced Valuetronics with Bumitama Agri. On 28th May, Valuetronics corrected up to 6% despite a good earnings report. I am not sure what is the public thinking, probably its large exposure to China. Nevertheless, the chart was really ugly and I just do not want to risk it. Looking at it now, it was a good call.<br />
<br />
<b>Bumitama Agri</b><br />
<br />
Bumitama Agri is my sole mid value investment on the basis of forward-looking upward Crude Palm Oil (CPO) prices. Although dividends had been unstable and trading float is low, I choose not to ignore their double-digit revenue growth. This is despite the 29.5% rise in deferred tax in 2017.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht3m86oVRWbdRkLB5PUs3rHKBTZUQXnPShm4g3WY6LPP1d08W5Aw4wwhdcm5qOxvRmsGc5-0CbiDL5oz73GofJJT5TL2ik54aLaStij7Cd0LDKTy_ucnz9ZGMGCrkWOzj6bfEDuaIjlN1X/s1600/Bumi.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="284" data-original-width="619" height="292" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht3m86oVRWbdRkLB5PUs3rHKBTZUQXnPShm4g3WY6LPP1d08W5Aw4wwhdcm5qOxvRmsGc5-0CbiDL5oz73GofJJT5TL2ik54aLaStij7Cd0LDKTy_ucnz9ZGMGCrkWOzj6bfEDuaIjlN1X/s640/Bumi.png" width="640" /></a></div>
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Since SGD is strong, we can see IDR/SGD currency relationship all-time low as a possible tailwind.<br />
From 2016 to 2017, total assets have increased while total liabilities have fallen leading to a healthier balance sheet.<br />
Of course not all is good, net margins have been falling year on year as it was similar in Wilmar’s case. The bright side is Bumitama Agri’s net margin is a lot thicker than Wilmar (14.68% vs 2.78%) but let’s not forget Wilmar’s 2.78% is based on a larger capitalization size. Bumitama may have more potential upside along with better dividends (3.21% in 2017) but Wilmar has a better dividends stability and clarity. The risk which sets Bumitama Agri apart (from Wilmar) is having its revenue source coming entirely from Indonesia while Wilmar is better diversified regionally on this front.<br />
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On the bright side, Indonesia is a developing country and should grow extensively as compared to the developed countries. From the below tables, we can see clearly the different types of businesses which both companies are venturing in.<br />
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<table cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghJGfbn3b2ckP3QyPJyyAby_CIi-XASFl1K-HgjqtQBLO-UZvRWBF5lOUwRpx0CJDdrkGvHIQ_VK0wbBqc5bVdHdOi9lY2CaWErWKEr556y6fgElsXaFBUxWA_n-08tgz2TA2m6ru4ZGuc/s1600/Bumit.JPG" imageanchor="1" style="clear: left; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="302" data-original-width="658" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghJGfbn3b2ckP3QyPJyyAby_CIi-XASFl1K-HgjqtQBLO-UZvRWBF5lOUwRpx0CJDdrkGvHIQ_VK0wbBqc5bVdHdOi9lY2CaWErWKEr556y6fgElsXaFBUxWA_n-08tgz2TA2m6ru4ZGuc/s1600/Bumit.JPG" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b><u><span style="color: #bf9000;"><a href="http://www.4-traders.com/BUMITAMA-AGRI-LTD-11551647/company/">Bumitama Revenue Streams</a></span></u></b></td></tr>
</tbody></table>
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<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeW-Cd_M1gtPEEWHtMg4RG8eJPRYFgbThyS_9RUUIyKUld9K5q9SrmM051t8CVW4PgH9xrn4cZDQhUt0Mm8LjM-Fbrag2TarmklDVwf836iuoLlSdQSCUSdWN3x1EUZ4KgEc3rb8GWQ_8V/s1600/Wilmar.JPG" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-left: auto; margin-right: auto;"><img border="0" data-original-height="432" data-original-width="651" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeW-Cd_M1gtPEEWHtMg4RG8eJPRYFgbThyS_9RUUIyKUld9K5q9SrmM051t8CVW4PgH9xrn4cZDQhUt0Mm8LjM-Fbrag2TarmklDVwf836iuoLlSdQSCUSdWN3x1EUZ4KgEc3rb8GWQ_8V/s1600/Wilmar.JPG" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;"><b style="font-size: 12.8px;"><u><span style="color: #bf9000;"><a href="http://www.4-traders.com/WILMAR-INTERNATIONAL-LIMI-6497470/company/">Wilmar Revenue Streams</a></span></u></b></td></tr>
</tbody></table>
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghJGfbn3b2ckP3QyPJyyAby_CIi-XASFl1K-HgjqtQBLO-UZvRWBF5lOUwRpx0CJDdrkGvHIQ_VK0wbBqc5bVdHdOi9lY2CaWErWKEr556y6fgElsXaFBUxWA_n-08tgz2TA2m6ru4ZGuc/s1600/Bumit.JPG" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><u style="color: black; text-align: start;"><b><i>*Data Extracted from 4Traders</i></b></u></a></div>
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<u><b><i><br /></i></b></u>Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com1tag:blogger.com,1999:blog-5872589584051161157.post-4107082289788703002018-06-18T16:49:00.000+08:002018-07-07T14:15:46.724+08:00"Investing is like taking a train"A short post here to share on an analogy which came upon because I was too focused on my phone and took the wrong direction of the train early in the morning to work. On other occasions, I did not alight at my stop because I was not paying attention. To explain my foolishness, this is actually quite a common habit as validated by fellow colleagues.<br />
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I would like to relate how taking a train is like how investments work. There is usually an expected outcome which we desire to happen in each of our investments. That outcome is the destination in our train ride. Every time we feel rash of selling our shares, think of this. Will we leave the train when we have not reached our destination?<br />
We will only if we expect the train to crash or halt.<br />
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The awareness which we gather comes from the homework we have done. By doing so, we prevent ourselves from taking the wrong train Or alighting at a wrong destination. In return, we save time and loses less money (to price depreciation or brokerage fees).<br />
<br />
<b>Taking the wrong direction (similarly in share prices):</b><br />
<ul>
<li>It is similar when investing in a wrong company or in a right company at the wrong time, we will have to wait for a recovery. In the worst case, we will have to incur losses.</li>
<li>When we are unaware, we will continue going in the wrong direction (holding our losses).</li>
</ul>
<b>Alighting at the wrong stop: </b><br />
<ul>
<li>Missing your destination (alighting earlier/later) means that we are not getting our optimal results within given time frame. With that, we have to sacrifice added effort and time to achieve the same results. </li>
<li>This applies to buying or selling too early or too late.</li>
</ul>
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Just my random thoughts. </div>
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Now that World Cup is here along with 2 books on hand to read, it will mean lesser sleep and a busier month ahead. I have placed a small bet on the Cup winner and considering to add bets on dark horses such as Portugal to "diversify" lol. These are totally speculative.<br />
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I have also been crazy lately on frugality, trying out expense tracker apps to further cut down on unnecessary money wastage. We should however be aware that saving is just one step, earnings have to be ultimately increased to give us the ability to save and spend more.<br />
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And a sudden question struck me with fear and doom, can couples still save money when they have kids??</div>
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Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com0tag:blogger.com,1999:blog-5872589584051161157.post-88603945445566808252018-06-09T14:39:00.003+08:002018-06-10T11:26:29.040+08:00Analysis: The Fast GrowersBefore we start, I have recently added my stakes in Singtel and Lippert Components at SGD 3.26 and USD 86.00 respectively. This makes Singtel the majority in my holdings. I may have to re-adjust Singtel shares again due to such exposure. For now, I will collect the dividends. Sold Oracle shares at a slight loss to raise cash levels as well as hesitated adding stakes in IRobot when it got cheaper. Accidentally, current portfolio constitutes a 50/50 allocation in SG and US markets.<br />
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Now the main topic, I will be running through the fast growers in short summaries.<br />
Young and fast companies usually have the largest growth potentials and also the highest chances of falling apart due to lack of their establishments. In other words, they have high risks-rewards and are possible multi-baggers or the ones that can easily wipe out our money.<br />
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<b>Lippert Components Industries</b><br />
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Berkshire Hathaway's acquisition of Forest River and Clayton Homes indirectly made Lippert Components one of its business partner. I actually found Lippert Components after looking up on Thor Industries, which is one of their main customers. The reason of not picking Thor Industries was mainly due to their less attractive dividend yield.<br />
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The Recreational Vehicle (RV) industry was surprisingly still a growing trend in the camping world.<br />
RVs, as seen in movies and Breaking Bad, are usually used on family trips and tend to look like old news. Yet, the millennial will be the ones driving to grow this segment further. PEG ratio (5 year expected) also looks very good at 0.62.<br />
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht7eJEvboPR1Igk0sbrHdWFDib67-qeIy7K2ed9bFWgwI5eQmKGyaPB_thzOcH9l-O37MK8_Ethv1voJABXYzz-e7P0ysqZvI6NiSvOSoYGGkLnffp_OG-1HIUrlOpd6x-UtSi5jBBaiZa/s1600/LCII+perf.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="538" data-original-width="706" height="484" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEht7eJEvboPR1Igk0sbrHdWFDib67-qeIy7K2ed9bFWgwI5eQmKGyaPB_thzOcH9l-O37MK8_Ethv1voJABXYzz-e7P0ysqZvI6NiSvOSoYGGkLnffp_OG-1HIUrlOpd6x-UtSi5jBBaiZa/s640/LCII+perf.png" width="640" /></a></div>
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGd6U6XsTdIMwjeEV9J4YM_0b6xQUi8M_VqQF7dT4j-_cX51qJgkEL3CIUutBomjmd6lqprf9I1TaDJEpyQmk5UzkJc8VOpzEfZRyCYbwcFPfliyla1MIus2P0502iLaJ9RGT_LdafiXly/s1600/LCII+millennials.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="535" data-original-width="717" height="475" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhGd6U6XsTdIMwjeEV9J4YM_0b6xQUi8M_VqQF7dT4j-_cX51qJgkEL3CIUutBomjmd6lqprf9I1TaDJEpyQmk5UzkJc8VOpzEfZRyCYbwcFPfliyla1MIus2P0502iLaJ9RGT_LdafiXly/s640/LCII+millennials.png" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><u><b>Slides from Lippert Components </b></u></td></tr>
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LCII’s shares have been punished recently due to fears of expected steel and aluminum tariffs and gradual inventory buildup. At a closer look, inventory buildup<b> over</b> revenue rise is safe at less than 5%. This explains that sales are growing faster than rise in inventory.<br />
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<b>IRobot</b><br />
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Earnings, earnings, earnings.<br />
Earnings are ultimately what it all comes down to in investments we made.<br />
I feel that IRobot's annual growth rates do not lie.<br />
As the robot vacuum market has been far from fully penetrated, IRobot’s growth is foreseen with a rate of CAGR of 20%.<br />
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However, the public has been fearing that high competition will take up IRobot’s market share -especially after Amazon reported to be interested in the smart home robots business. The worries may be overblown as IRobot has hundreds of patents protecting their intellectual products. As an example, they were recently in <a href="http://media.irobot.com/2017-12-18-iRobot-Announces-Agreement-with-Black-Decker-in-Patent-Dispute">settlement </a>with Black and Decker of their existing patents.<br />
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In order to protect their dominant market share of 60% , serious investments in heavy research and development are already in the works.<br />
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<tr><td style="text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgbH-uIX5fVDYZLLEdHCpGxa5ddi2Jg6gu576weNkglZEt_ud7oflgRRmH1Jtl-O7OwDRRooF1k7a2gKya2d64oYPTZqrj0Tn3scLGkiVklc_l25F6OZmhJ2TTAg3DbZjiixYLH3FNyMUC/s1600/Irbt+curve.png" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" data-original-height="415" data-original-width="745" height="355" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjgbH-uIX5fVDYZLLEdHCpGxa5ddi2Jg6gu576weNkglZEt_ud7oflgRRmH1Jtl-O7OwDRRooF1k7a2gKya2d64oYPTZqrj0Tn3scLGkiVklc_l25F6OZmhJ2TTAg3DbZjiixYLH3FNyMUC/s640/Irbt+curve.png" width="640" /></a></td></tr>
<tr><td class="tr-caption" style="font-size: 12.8px;"><u><b>Slides from IRobot</b></u></td></tr>
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IRobot will be introducing new products as well in the later half of this year with smart home as a focus (similar as Valuetronics) along with plans of using cloud to aid their products' functioning. Despite the prospects, IRobot shares do not come cheap with a high current P/E multiple.<br />
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<b>Valuetronics </b><span style="color: red;">(Sold)</span><br />
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Valuetronics is an electronic play on Internet of Things (Iot) light bulbs and in-car connectivity. Iot lighting itself are expected to grow at a rate of 21% till 2023. The current worry looms on the slowdown in electronics exports, and a healthy correction is common after a long up-run in share prices.<br />
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Aptiv, a fast growing self-driving cars manufacturer, is also one of Valuetronics' major customers. Looking at Aptiv's annual earnings and up-trending stock prices, it is pretty obvious how good business is going. Furthermore, Valuetronics possess stable net earnings and attractive yield of around 4.5%. Based in Hong Kong, it serves as some form of regional diversification.<br />
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<span style="font-family: "times new roman";">Valuetronics’ chart has started to look ugly recently, making a mini U-turn curve and looking to correct severely downwards. This is what happens when you are not buying near the bottom, you tend to feel less secure “floating” above. I am not trying to speculate by selling but avoiding the pain of holding a loss for months ahead. Valuetronics will be under watch and may be added back if the price gets reasonable to me. For now, I have switched to Bumitama Agri which has similar upside potential and less downside risks. Bumitama Agri is not a true Grower and thus been excluded from this post.</span>Frowns88http://www.blogger.com/profile/02284939344444329229noreply@blogger.com2