Dec 27, 2014

Cory Diary : Dividend Returns

When i started investing many years ago it was for the gamble and quick money. Dabbled in Warrants in the days when they are extremely popular. Made some good money ~ $10K total in/out trading them despite my business work schedule. It was days where the market only knows how to climb.

Danger of Warrants

I did fell once where my "Tang" expired and went with my $1500 in smoke. I remembered my broker screams at me pondering whether i know what the hell it is but i kind of laughed it off in my head. I learned later that 6 months before expiry, i need to be careful. She is still my broker today.

As i got bolder over the years, i plough into larger part of my little saving. Those days I had colleagues who lamented to me how desperate they are to get into the market but they just do not have enough saving. I learned from it.


Soon after, i got burned in an S-Chip counter.16K lost LOL. Why i laugh ? Well, by then i learn to read announcements and annual reports. Despite all the indications that is a "FRAUD" even from public announcements, i continued to hold. I was hoping that the CEO can't be that stupid to give silly excuses. I learned it does.

As my salary goes up, so are my knowledge in the market. My investment grows till 2008 GFC Epic. Even then i was numbed to the daily horror news. I learned about market timing.

S-Chip Scandals

2008 GFC
When the market recovered, my 2009 profits doubled my 2008 losses. Then i entered 2011 and see the how rocky the market can be and chance encounter with Value Investing. I learned to rebalance my portfolio. By then my portfolio has already skyrocketed with my saving and profits.


Value Investing
Is only in 2012 that i really think about stability and more predictable growing returns to support my retirement. This is tougher to grasp for me but i learn more about Reit and the power of strong business model that can protect my investments.






Dividend Play
Learning never stop as i continue to seek new ideas and knowledge. I have become less risk averse actually. And Fd, Index, Wider Portfolio, Bonds and fixed instruments, Large Blue Cap, Currency Balance and Reits have a good present today in my investment. I am still working and mind you ! Is great to see bonus. :)



Last but not least, my Dividends Report card. Manage to swing it back to a little new high.
Looking forward to 2015.

Cory Dividend Tracker

Cory
27 Dec 2014




Dec 17, 2014

Cory Diary : SEMBCORP IND

Oil ! Oil ! Oil! Crashed. Many people may have thank Saudi Arabia that we have an Oil Crisis except this time is for lower price. As a matter of fact, Shale Oil and Gas is the cause of main disruption with maturing technology that break OPEC monopoly who works in "cahoots" with few other key players that not always play fair.

Is there gem right now ? Let's me try to investigate SEMBCORP IND today.

Capital Gain
The worst SBI price is about 2.11 during 2008 Global Financial Crisis. This is not. A lower oil price is good for the economy. We have 10 years of growth when oil price stays low. However it can be a nervous investment for the new investors who never see it for Oil Support Industry. The Monthly Chart indicate 4.0-4.1 range as resistance. And appears reached. Weekly Chart will be in the region of 3.89. Down side seems limited i guess but market sentiments are hardly predictable. Volume is weakening.

Dividend Yield
2014 declared dividend ~ 0.22. That's on the high side i feel. Let's MOS to 0.15.
3.5% yield roughly. That's 35k for a Million for a rather consistent performing counter.

Business Segment
This is not fly by night company.

Sembcorp Industries was incorporated in Singapore on 20 May 1998 to act as the 
holding company for the merger between Singapore Technologies Industries 
Corporation (STIC) and Sembawang Corporation. On 22 July 1998, it assumed its 
present name. The merger was effective on 3 October 1998.


i. Utilities


ii. Marine & Offshore Engineering
This business focuses principally on repair, building and conversion of ships 
and rigs, and offshore engineering.



iii. Environmental Management


iv. Industrial Parks

After Thoughts
Every crisis can be an opportunity. Will this be one of them ?
Long term with a back mirror will we regret ?
What's the down side ?
Can it be a long term hold and forget ?
Time to nibble slowly ?

Here's my novice notes today. Hope you like it. May we prospers till we go to dust.


Cory
17th Dec 2014


Dec 14, 2014

Cory Diary : SAIZEN REIT

In my quest for yield, a reit that caught my eye again is Saizen Reit. What's interesting is the recent softening of it's price due to the depreciation of the Yen mainly. 6 cents move is a year dividend ... oh a little pain..

Few questions come into my mind. Is there opportunity to gain/recover from this ?

Impact to S$ returns

"Hedged the distribution payments for the six-month financial period ending 31 December 2014 and for the six-month financial period ending 30 June 2015 at JPY81.9/S$ and JPY85.6/S$ respectively."

This hedging is rather important though not cheap. Looks like they did it well considering rate is about 91 currently. I do not see dividend issue for Mar'15.

Property Yield
About 1/4 of the portfolio in Sapporo: Prices known to increase in that area but Cap Rate maybe mute.

Age of the Reit properties are not young so i would perceive rental yield stable considering the net property income in last report shows slight decrease in JPY Q/Q not proportional to Revenue decrease.
S$- denominated bank balances help a little from the Warrant proceeds leftover.

Trend
Revenue has been decreasing about 2% quarterly. Operating expenses increased slightly from the net property income of lQ'15 report.

"The decrease in gross revenue was due mainly to a year-on-year decrease in occupancy rates."

Leverage Potential
Ability to access low fixed loan rate is a plus for higher leverage considering their returns are relatively stable.

Moving Forward
One thing to watch is the the weekend election and what this means to Saizen. Abe wins mean more weakening of the Yen therefore more hedging needed. Delay in consumption tax hike is good news.


Cory
14th Dec 2014



Dec 7, 2014

Cory Diary : STI Index

If you have yet notice, STI Index ended this week 3324.39. STI Jan 1st Jan'14 was 3167.430. That's mean about 5% returns. If we include roughly 3% dividends conservatively, that's 8% for 2014. This is despite of Current Oil Bear, Interest Rates going up, Property Curbs and Commodity Crash.

Quite amazing huh ? Do your math and tell me am I right ? So why ? why ? why ? why ?Maybe is the Singapore Story or thanks to the liquidity.

How many of us can beat that on annualized basis ?
Are your Unit Trusts beating this values. What do you think ?
How about those who put your money with Private Fund Managers after cost ?  How do they perform ?
Do you have concern with scam or time bomb ?

Things i like about STI Index so far is as follow

1. No rights issue
2. Reasonable Dividends ( Cover Core Inflation )
3. Capital Gains annualized results are strong ( Cover Inflation )
4. Low management fee
5. No manager risk
6. Transparent Tracker
7. Singapore Dollar
8. Participate in Singapore Key Industries
9. Risk Spread across companies
10. Do not need active management
11. Do not need a lot of money to invest


Cory
7th Dec 2014





Dec 6, 2014

Cory Diary : Oil Price - Fact Check

Read a few posts and articles on the risk of low oil price. Frankly I am kind of lost. Isn't this will boost economy ? How the world did experts able to "back"trapolate that logic of known condition that economy in recession will have reduced oil consumption thus lower oil price. Therefore in reverse, the current low oil price climate will result in poor economic conditions ?

Let's get back to the fact. Oil price is low today because there is ample supply not because there is lesser demand. That's A WORLD of DIFFERENCE ! We have more purchasing power. We have more saving. And we will travel more ! Is the Oil Companies or vested interests trying to hoodwink our mass media to brainwash our brains ?

Let's do a fact check for the period Year 1986-1996 where Oil Price is in sub US$30 due to ample supply. Despite a small blip due to Black Monday (1987), DJIA jumped 4 times ! STI Roughly 3 times ! by 1996.

10 Years of Stock Prosperity. Enough said.

Cory
6th Dec 2014

Nov 22, 2014

Cory Diary: 2014 Interim Review

Interim Financial Report

My Investment Portfolio is made up of Equities, Fixed Deposit, Preference Shares, Bonds and Gold. Spread across various currencies according to their risks/returns which helps me ride over market turbulence with peace of mind.

Equity ~ over 20 counters of Blue, Reits, SME and PS of various weightage. Currently this year returns are to better Equity Dividends. FDs help some.

Cash level is relatively high for opportunities and because as i am still working which afford me to have lower investment returns. Pension, Property, Insurance and CPF are Bonus.


AUD and GOLD
AUD$ weakened 2-3% roughly. After higher interests, return is flat. Lower GOLD price on the back of stronger US$ that my GOLD denominated. Acquire more RMB$ few months ago to put into higher FD as i do not like to hold too much NT$. If i have them it will be converted to other currencies or lock away in FD which are about 1.4% now. Yes is still miserable.

DIVIDENDS
Glad to break last year record before Dec ~ S$29K

EQUITY
Positive but slightly below STI index return due to more low caps. Took a few risky positions which are not delivering as hoped. Net net including dividends, annualized returns around 10% for the past 10 years

CURRENCIES
This are exposure not just cash. Example Gold invested in US$ Denomination, i will have it paper translated to S$ in percentage term for exposure in US$.



















Net Worth
Back on track to new highs after recent months turbulence. I expect this to continue to go on till i retire.


thanks
Cory
22 Nov '14

Nov 14, 2014

Cory Diary: My Home

Something strikes me today after reading AK's comment in his post on singapore property.

If I am to buy a home say S$1M, and a year later the price comes down by S$100K. Will I be sad ? Ofcourse i will, silly ! But sad due to what is the critical issue here. Well i am sad because my home value drops 100k. But why should i when is a place to stay other than being sad for paying 100K more. Someone will pay more someone will pay less in any trade. If i am to sell it 100k lesser 5 years later, i will be getting cheaper price from others of another property anyway. 

If i got my home and price shoot up say 100K in a year, should i be happy then ? Why not, 100k take someone years to save ! But i cannot realise it since is a place to stay so what so big deal about it then ?
Well, i can sell it 5 years later and if price holds 100k up, i will be good. But then i will be buying another property from others at higher price too aren't we ?

And here comes the fundamental question if you haven't realise it yet. Higher property price only make the rat race course larger for your children and you. And a lot of paper work at your expense.

thanks
Cory
14th Nov 2014


Sep 9, 2014

Cory Diary: How much is considered too much cash for rotting?

A friend pose this interesting question to me over my concern with inflation eating into our hard earn money. To point out how serious the problem is, i have it structured below.

Let's think of a scenario. I have idle cash of $1M. Considering inflation of 3%, that's 30K loss annually. We know how rich we are is how much we save. Using this basis, if I save 30K annually from my monthly earning, i am just working my arse off just to level up my networth. The curse of being a millionaire ?

Let's go further. For those who are more financially awakened, potential returns may average 5% annually. $1M sitting idle is 50K loss. Has risk adversity reached a new height in stupidity ?

Not surprising for those Savvy Investor who hits 10% return. That's 100K average. If you have this money and they are not working because you are so busy with work, do yourself a favor, sit down and do some Maths. What the hell am I talking ? A Savvy Investor will not have this problem.


Now where am I ...


Cory
9th Sept 2015

Aug 24, 2014

Cory Diary : STI ETF and Nikko


STI ETF
As of Friday, 22 Aug 2014
(1) the NAV per unit is S$3.3515
(2) the total number of units in issue is 132,500,000


STI ETFDIVIDEND07 Aug 2014

SGD 0.045 ONE-TIER TAX
STI ETFDIVIDEND04 Feb 2014

SGD 0.043 ONE-TIER TAX
STI ETFDIVIDEND15 Aug 2013

SGD 0.045 ONE-TIER TAX
STI ETFDIVIDEND01 Feb 2013

SGD 0.04 ONE-TIER TAX

Last Trade: $3.36


NIKKO ASSET MANAGEMENT ASIA LIMITED

As of 21 August 2014
(1) the NTA per unit is S$ 3.4040
(2) the total number of units in issue is 37,846,400

NIKKO AM SINGAPORE STI ETFDIVIDEND01 Jul 2014

SGD 0.0465
NIKKO AM SINGAPORE STI ETFDIVIDEND10 Oct 2013

SGD 0.045
NIKKO AM SINGAPORE STI ETFDIVIDEND29 Apr 2013

SGD 0.035
NIKKO AM SINGAPORE STI ETFDIVIDEND11 Oct 2012

SGD 0.035

Last Trade: $3.40

In term of size (liquidity/stability), STI ETF is ahead.
In Dividends, on average STI ETF is ahead historically.
Nikko skipped one in early 2014 probably explains why higher NTA.

No brainer for me to choose STI ETF.


Cory
24th Aug 2014


Jul 14, 2014

Cory Diary : CPF Minimum Sum 155K

The minimum sum has been increasing for years. Based on my earlier rough estimation is certainly moving faster than the inflation. My logic is that there is an initial growth phase to close the gap as the current minimum sum lags significantly behind the minimum needs for basic retirement. Once this is met or politically so, i would expects the the growth to follow inflation trend.

Singapore is one of the lowest tax countries in the world. This do not happen by chance but by the expectation that retirement is mainly self-funded, and CPF is a commitment to the society that we meet our minimum obligation.

Considering the retirement needs in future dollars, releasing CPF money will not going to help much to our financial wealth being. This is not hard to deduce considering a million dollar without investment will easily be expended in 15 years in earlier article. Even with 2.5%-4% returns, the minimum sum will not be enough to meet my personal retirement needs. If we understand the concept, will people still care about not meeting the minimum sum less the purpose is to withdraw them asap, and this can be worrying.

The logic is simple after i did my own lifestyle count. By the time I retire, my  investable should be at least 10x of the minimum sum of today money. If i am not achieving that yet, is time i find a way to earn more and be Accountable for my own financial well being before is too late.

I start to draw out all my investments. And soon realised that CPF money sits very well as the guaranteed portion of my portfolio that provides stable and min. baseline returns. Withdrawing CPF is certainly not an answer to it. Is our money safe ? Last i check our government prints their own money so this should not be an issue. Is better to be locked away till 65 from anyone or even myself. The monthly withdrawal feature provides an additional layer of protection for my golden years. Once we put further thoughts into it, CPF is actually a safety net insurance scheme at national level.


Cory
13th July'14

Jun 22, 2014

Cory Diary : Retirement Amount


Retirement Amount

One of the misconception about saving is how long it can last once we retired.
Assuming no investment and just plain saving bank. See Table 1.

Table 1 : Without inflation adjustment







Above is a simulation without inflation. How will this impact me ?
Assuming 3.5% inflation rate, the monthly absolute amount increases as Table 2.

Table 2 : With inflation adjusted







So how long can my S$1M last actually ? See Table 3.



















Just  below 16 years. After that i am on my own ...

For those who are curious on whatif Inflation hits 5%. The answer is 14 years.
That's how long S$1,000,000 can last.


Cory
22nd June 2014



Jun 15, 2014

Cory Diary : Currency Risk

Strength of Currency drives purchasing power. Determines where, what and how to park and invest my money.

What's the use of doubling my S$ denominated Stocks if Singapore currency devalue by half. Most likely I will see super inflation like Venezuela with soaring prices.

What happen overnight we have a watershed election and Opposition won the day. Will I still see Singapore progress or sustainability as normal ? The risk is there but am i prepared ? It will be a serious mistake to say i have S$100K today and still same number after that there is no loss. The notion that Value is Absolute can be disastrous in my financial well being.

I will first have to classify all my net worth by currency denominations as below.














Pretty enlightening after i draw up the pie chart. What's next ?

Using back Venezuela economic situation as an example, i would have to increase my net worth by 60% within a year just to break even on all the basket of items i could buy last year with the same items today.

Well i am not in that part of the world ? It won't happen ! Will 15% devaluation within realm of possibilities ? That will set me back years of investment gains without need of global financial crisis. Well, if to act, at least i have something to plan ahead today.


Cory
15th Jun 2014





Cory Diary : Net Worth Metrics

Watching World Cup Greece V Columbia right now and decided to write this article in parallel. Hopefully i can wake up for the next two morning matches as well. In summary, next few weeks will be challenging. :)

From my earlier Retirement titled article which has my net worth chart, i will be doing an update here. Since then, i have invested in RMB FD, bought some bonds and did a major re-balance in my Reits Portfolio. I have also increase my Telecom and Banking exposures. Passive income has caught up to last year 50% mark.


















Key Metrics

First : Net worth climbed about 19% annually. This is a surprise.
Second : Average annual increase is larger than my income. Money is working hard. :)

The climb has been relentless. Considering low interest rates environment in major economies still a trend, I would expect stock index to continue to break new grounds and inflation in developing countries to stay high. I think it will takes Major International Disruptions to change that story. Hopefully my bet is right.

Oh ... the game just finished with Columbia 3-0 Greece. Good night !

Cory
15th Jun 2014

May 25, 2014

Cory Diary : No Earning Money is Losing Money

Continued from my earlier Damn to Saver article, with the continued QE though tapered and expectation of long term low interest rates, high inflation will continue to stay with us one way or the other. Nevermind about the statistics from any governments.


Compounded 2.5% inflation across 5 years,
Years Principal Inflation Rate Purchasing Power Principal Reduction
5 $10,000 -2.50% $8,811 -11.89%

Compounded 4% inflation across 5 years,
Years Principal Inflation Rate Purchasing Power Principal Reduction
5 $10,000 -4.00% $8,154 -18.46%

what this means are you need to deduct probably 20% profits you made from the past 5 years just to break even after fixed interest returns are taken into consideration. So don't start patting yourself on the back yet till you are earning way above it.

For those who has Stayed on the sideline Mainly, good luck to you !

Cory
25th May 2014

May 17, 2014

Cory Diary : Investment in STI Index



Year
1988 1989 2013
Annual Capital Injected
$6,000 $6,300 $20,318
Years Invested till 2013 ended
26 25 1
Capital Value
$20,269 $17,339 $18,714
XIRR
3.19%


Today my mind Experiment is Simple. I do a capital injection annually into STI Index starting from year 1988. Injected amount grows at 5% annually.

In Year 1988, i injected 6K which grew to $20,269 after 26 years. In start of year 2013, i injected $20,318 which register a loss to $18,714 within the year. When i total up all my investments, the Compound return is 3.19% over 26 years.

This implied for $100,000 investment at 3.19% compounded will arrive a figure of $226,244. This return excludes Dividend. If i include 3.5% Annual dividends, a potential figure of $538,538. 

This exercise tell myself that to invest in STI Index, Dollar Cost Averaging investment is critical imo. The logic is pretty simple. I got more shares at lower STI. Fewer shares at higher STI.

When STI moves up, more shares benefit. When STI moves down, less shares impacted. Furthermore Stocks will grow with inflation as there is business behind, which mean STI is biased towards higher long term. If all this deductions hold true, it seems to be a viable plan.

Thoughts ?

Cory
17th May 2014

May 3, 2014

Cory Diary : Damn to the Saver with Fixed Deposit

There are people who are believers of Saving and Fixed deposit.
Here's the Math for them.

Assuming I strike lottery $1M dollar on 1st Year. The next year I start to lose $29,100 due to loss of purchasing power. Many people cannot even save that amount of money to compensate for the yearly loss.

Year Principal Fixed Deposit Inflation Effective Purchasing $
1 $1,000,000 1.00% 4.00% -3.00% $970,000
2 $1,000,000 1.00% 4.00% -3.00% $940,900
19 $1,000,000 1.00% 4.00% -3.00% $560,613
20 $1,000,000 1.00% 4.00% -3.00% $543,794

Continue my way till Year 19th. Original $1M left with $560,613. On the Year 20th, I will lose another $16,819 that year.

Conclusion
The more money I have the more I lose. I will never be able to retire early.


Cory
3rd May 2014

May 2, 2014

Cory Diary : A Proper Business Behind

Have been a little slow in conceptualizing my Investment Strategy this year. It has change with wisdom and climate over the years. Yes i do review my plan often and usually i could identify a theme behind it.

Here i go - 

Business focus on sustainability, reasonable dividends and little debts. 

A little emphasis on some growth will be nice. Profitability is required and FCF a checking step. Dividend a must. ROE level should be sufficient. Notice i did not put exact figures behind it. I realized this is an Art rather than a Science.

Niche product or services will be perfect. A check on my portfolio seems sub-consciously along that line. Wish me luck !


Cheers

Cory
02 May 2014






Apr 20, 2014

Cory Diary : Property Crazy Question

Let say i have enough budget for either.
Apply value investing and quality of life, which should i go ?

Property 1 : Condo (New)
Region: RCR
Area: 850 sqf
Price: S$1 M
Rental Value: S$3000
Proximity: School, NE MRT/CIRCLE

This leave me with heavier loan, small family, less money for equity and need more loan for car.

Property 2: HDB Re-Sale (10 yrs)
Region: NE Region
Area : 1200 sqf
Price: S$600K
Rental Value: S$3300
Proximity: School, Coffee Shop, Supermarket, NE MRT/LRT

This leave me with 400K to do stock investment, larger family, major renovation and a car.

Cory
20 April'14

Apr 17, 2014

Cory Diary : Dividend Dimension


Why Dividends ?

Keep my CEOs on their toes
Best proof of returns
Income sustainability

Year 2005 2006 2007 2008 2009
Cumulative Dividends $2,494 $6,074 $9,365 $12,711 $20,109
Dividends $2,494 $3,580 $3,291 $3,347 $7,398

Year 2010 2011 2012 2013 2014
Cumulative Dividends $31,096 $44,284 $56,880 $85,821 $92,889
Dividends $10,987 $13,188 $12,597 $28,940 $7,068

Q1 2014 has been slow due to divestment of some Reits counters. Of course is still in the earlier part of the year. Building portfolio back up with strong cash companies. I will have to catch up to beat 2013 dividends but not going to lose an arm or leg for it.

No turning back on the Twin Pillars Strategy - Dividends & Growths.


Cory
17th April 2014

Apr 6, 2014

Cory : Financial Health Report 2014 April


Personal portfolio heath report using chart gives me a broader perspective view. Over 15 years of record. Cash deposits consist of a number of foreign currencies fixed deposits. Pension fund, oversea stock markets record, any CPF related returns and investment, and property are all excluded.

Profits build up over time while moving towards the direction with lesser risk play, growing dividends, larger capital base and industry selection focus. War chest is quite large if we consider the fixed income segments.



Structured here refers to Preference/Bond types of products. Fixed returns typically from Fixed Deposits. Equity, Dividends and Returns presented are from SGX stock market only.

Over the years learned that i have to

1. Do my own investments
2. Change strategy when needed
3. Learn from mistakes
4. Take calculated risks
5. Cut lost when fundamental change
6. Not invest in Unit trusts and S-chips
7. Read Chart and Fundamental
8. Measure performance

Cory
6th April 2014

Mar 25, 2014

Cory Diary : Contemplating Retirement

Retirement has been in my mind for a long time. If i make that move there is no turning back. Two key concerns in the back of my mind.


Net Worth Hurdle

First to lose is the monthly income. In addition to that, bonuses which always pull my net worth a mile. Will I be able to stomach possible decrease psychologically ?



Left is the investable net worth chart captured over the years.What can we understand from the annualized return rates compared to investment return rates.








Social Hurdle

The connection with colleagues.What can i do so that my experiences will not be lost. How can I continue to be relevant to the society ?


Cory
23 Mar 2014

Mar 16, 2014

Cory Diary : Expenses worth to manage ?

Transportation
Cab fare per trip S$10 may amount to S$5000 annually. Bus/MRT maybe 20% of that amount. Makes sense to save always ?  If you have important preparation or meeting that day or next, may want to consider taking cab to give you the edge mentally, time and energy to be prepared to advance your career. Be aware of cab addiction.

Saving in Bank
S$200K in bank doing nothing ? Normal saving rates 0.05%. 0.55% fixed deposits amount to S$1000. Split it to smaller amounts and draw them for emergency. That's take very little effort to earn considering internet age of banking today.

Foods
Food court still ok for most. Well, home cook maybe better. Do checks on satisfaction, skill, time, sourcing, water and energy costs. If you have a housewife, kids and grands at home that's make perfect sense. A working wife may badly need the rest time and energy.

Do you visit restaurant often ? Daily cost says $20 delta more. That can amount to $7000 annually for one. Go once a while is refreshing though.

Coffee
If you are addicted to Starbuck, a cup a day can cost you S$2000. Why not try home make or neighborhood coffee-shop or food court. I know i know. Feeling is different. Taste maybe different. Is it a lot better ? You can save S$1500 easily.


Summary
I like to do a lot of approximations. S$12000 easy saving on the plate. Probably a lot more for two.

Here's the Math - If your annual income is 100K, that's 12%. However if your annual saving is 30K. That's 40% of your annual saving.

If your combined income is just 70K, assumes same expenses, there's no room for saving which is real for some people. Then, S$12K saved is golden. I am sure there are few other things we can skim but the point is ... do you get the point ?

Not convince, how about the opportunity cost without those saving compounded :)

Cory
16th March 2014


Feb 19, 2014

Cory Diary : Reits 2014

Despite my preference for "fixed income" and being a "landlord", the leverage mechanism of Reits and Management have been trying this days. Facts - Reits are mainly in downtrend and is hitting home with starts of QE. Interest Rates are not even in the picture yet. Things will be tough this year as well if the strong ones are also doing fund raising.

There are still few gems out there but is not a guaranteed profitability net-net. Meaning after Rights, Placements, Dividends and Market Value, are we better off is a big question mark.

Managers are securing funding to lower their gearing. Meaning no additional returns from the funding exercise. Isn't this much worst than investing in a lower yield property than current DPU ? Not sure i should classify it as one of ultimate worst sins.

The Property Market has hit the ceiling. We should be expecting book value hitting north but the market pricing seems ahead on that giving us a value proposition that is actually sliding with lower price and value.

I still view Reit a key segment in my portfolio but there is also a time for everything. At the mean time, do look at the trend chart and draw your own conclusion.

Happy Reit'ing !

Cory
19th Feb 2014

Feb 8, 2014

Cory Diary : Part 2 on Base Lining

I just read a thread and decided to think aloud.

Here's the background.

Someone bought Sabana and now sitting at a loss. Advisor came and said this.
If you have buy at a low last year around 90. Is ok to hold on. However those who buy at high, meaning lately, chance of return is remote.

Saying it another way.

Since you have capital gain when you enter at 90, is ok to lose those gains. Those who got recently be prepared for further loss if continue to hold.

Hello ? Hello !!

To hold or not should not have dependency on price entered at different times.
This is why I need to base line my portfolio to avoid falling into the feel "rich" gap.

Cory
8th Feb 2014

Feb 1, 2014

Cory Diary : Base Lining my Stock Investments

What do i mean by that ?

The goal of investment is to be able to generate more and more cash. We do not want to go up and down equally or similarly. In the long run, is useless and time wasted. And worst, loses all your capital.

In summary, base lining my profits/losses is resetting my Capital in a regular manner. A fresh start and perspective into my portfolio. And re-evaluating all my holdings.

For example I have 100K capital. Earned 30K by the end of year. In the new year, I have 130K capital. Zero out my profits/losses in every counters. Doing so i am basically treating 130K as my own money from my "saving" account as though is a fresh fund. I do this annually.

Upon doing that, I am resetting my stock initial investment cost to the price of the new year in a new page. And then i re-start to re-evaluate my holdings at this cost level which then kickoff a re-balancing of my portfolio.

This put my thought into a more balance approach with no baggage. To know whether we have execute this mental method successfully, you would have forgotten your initial buy price of prior years like me do.

Ok ! You can call me absent minded. :P


Cory
1st Feb 2014




Jan 28, 2014

Cory Diary : A Book that I have been reading recently

WINNING THE GAME OF STOCKS
To be frank I was quite impress with the knowledge within. Recommend anyone who is interested in stock investment to read it.





  • Investing in Reits have to look into trend. This probably apply to property. Helps to control my portfolio segment size
  • Market Timing. Helps to profit from market sentiments
  • Stocks that we can buy and almost forget. Helps to push for more investment



They formed my 2014 inspirations too. I do have a little concern on the leverage. Well ! No book is perfect.



Cory
28th Jan'14


Jan 1, 2014

2013 Portfolio Review

2013 Measure
SG Stock XIRR figure for the year ended up 11.74%.Compared to STI which is -0.85% (2 Jan'13-2 Jan'14) excluding dividends, performing above after taking into account STI 2-3% dividends.

Annualized Performance since 2007 will be 11.6%.
Dividends received this year $28, 940.

Did well in expanding my dividends and performing above STI. Another key area is the punch (Invest amount) approximately doubled. Net Worth reached a new milestone despite spending is up significantly.

Another area i am happy with is that Reits did not do significant damage to my portfolio. Looks like trading them helps to negate their impacts this year. They will remain a key segment for re-balancing my portfolio for a long time.

Portfolio details
Reit returns flat after consideration of capital loss. In the aspect, on the bright side, they will be position to be better in 2014.
Fixed return continues to maintain good stability.
Growth and SME stocks see large rises.

2014 Focus
Still under invest last year despite some step-up in absolute amount added, my wish is to add more counters and depth for specific counters. However i will continue to exercise caution steps.
Goal : 20% more

Dividends wise, with tapering reduction, contribution from Reit can be lesser. Higher business cost may also means lesser distribution. Goal: Maintain 2013 at minimum.

To reduce impact from any single stock, number of counter has to increase but this will tax my mental bandwidth. Therefore stock selection has an angle of less risk priority.

Re-balancing of my portfolio still required and needs to be watched closely.


Cory
1st Jan 2014