Sound Investment

10 years 2 months ago #19333 by Rock
As the reporting season had just ended below are my latest portfolios:

1. Straco - Increased to about 15%
Straco steady growth over 6 year, net profit margin of 48.6%, can be classified as "Perpetual Dividend Raisers". Share price at 50 cts backing out its cash, the stock is attractively priced at 8.5x FY13 P/E plus dividend yield of 4%. Being debt free & able to increased profit margin and its cashflow yearly to about SGD 130m. Straco is one stock I'm going to hold for long term.

2. Cordlife - Reduced to about 10%
Cordlife had been growing its business oversea too fast and its now suffer from some indigestion. Cordlife may need at lest 6 months to 1 year to digest its oversea business before it able to contribute to its bottom line. Fundamentally Cordlife is still a good stock to hold, although I dont' expect much capital appriciation this year. Codrdlife share price is well supported by company share buy-back.

3. Chip Eng Seng - Increased to 10%
I had sold off SuperBowl and increased holding on Chip Eng Seng. This year Chip Eng Seng will ripe it riches reward of about SGD300m in profit. Chip Eng Seng dividend yield of more than 5% is very attractive of all the under-value property stocks.

4. REIT & High Yield Stocks - 30%
I am holding REIT mainly for dividend yield of more than 7%.

My cash holding at present is about 35%.

God Bless

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10 years 2 months ago #19383 by Rock

"Investing without research is like playing stud poker and never looking at the cards."

If you're wary of doing hard work - of getting your hands dirty doing some research - then I don't think investing is for you. It's not a game. Or a gamble.

Investing isn't all gut feelings, whims and trying to hopefully channel "the Midas touch." It's about research.It's about taking the time to understand what moves the shares of the companies you are investing in and why... Knowing where the trouble spots are... Understanding when the best time to buy is...

That's how you make money investing. Otherwise, save yourself the frustration and just buy lottery tickets.

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10 years 1 month ago #19432 by Rock
Why Individual Investors Almost Always Lose Money

The financial industry does not exist because it enriches its clients. The clients provide all the wealth required to maintain the financial industry.

The profits that power the branding and the marketing of mutual-fund companies and big investment banks came out of the pockets of their clients. Think about that. Think about it carefully the next time you consider following any financial institution's advice about what to do with your savings.
Investment banks exist to raise capital for corporate clients. They do not exist to give you a good stock tip or put you in a safe bond.

1. The main reason people, on average, tend to fare so poorly in stocks is that very few individual investors know anything about how to value a security – a stock or a bond.

2. Catastrophic losses happen because people can't stand to take small losses. They allow them to grow into big losses.

3. They fail because they allow their emotions to overtake their reason. They fail because they don't have the most basic tools – they don't know how to value stocks. And they fail because they eventually suffer a catastrophic loss.

4. Individual investor failed is because of complete lack of risk management

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10 years 1 month ago #19519 by Rock

Buy Perpetual Dividend Raisers. Buying stocks that raise their dividend every year is one of the most cost-effective strategies you can find.

You keep more of your money, which gets put to work in the investment, compounding over the years and adding more and more to your principal.

Furthermore, investing in dividend-raising stocks means you receive more income every year, increasing your buying power.

Many structured products like annuities and insurance policies don't have an increasing benefit much beyond a cost-of-living increase, if they have any increase at all. But with a portfolio of Perpetual Dividend Raisers, you're likely to get a 5% to 10% boost every year depending on which stocks you're invested in.

Furthermore, whereas a bear market could crimp your returns with an annuity or whole life insurance, with Perpetual Dividend Raisers it could actually increase your return - as long as you hold the stock during the bear market and reinvest the dividends.

As the stock price falls, as long as it pays and raises the dividend - your dividend buys more shares. The more shares you have, the more dividends you receive. So the compounding machine kicks into overdrive during a bear market.

When your dividend growth to as much as your salary, you're ready to retire. Your income level will able to suport your retirement and the continue growth in your dividend will also take care of inflation each year.

The eventual resultant of "Perpetual Dividend Raisers" will not only result in the increase of dividend but also increase in the share price over the year as well. That means the eventual growth in wealth & income over the years.

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10 years 1 month ago #19598 by Rock
Traders Verse Investors

Trader do not care about the quality of the asset. concerned, "All that matters is where the price is headed." Investors are more concern about the company prospects for the shares he buy, rather than what the price will be in a day or a week.

A trader holds a stock which plunges, he will deduce that the tide has turned against him and sell the stock quickly to cut his losses. But an investor in the same situation may well look to buy more stock at the cheaper price, if he is confident about the company.

Trading is largely a zero-sum game - if they win on a trade, there will be another trader out there who took the opposite position and is nursing losses. Traders will find it hard to tell what a stock's price will be in a day or two, investors can reasonably expect their holdings to go up over many years. This difference means that investing is no longer a zero-sum game - all parties can win from it.

Trader do not care about dividend, as for investors it is best to buy some dividend stocks to ensure a flow of income.

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10 years 1 month ago #19648 by Rock
Income Investing - Better than a dartboard

When I invest, I am looking for stocks that will pay me for owning them. But I want more. I also want to make sure that they are undervalued, which should provide me with my margin of safety.

As far as I am concerned, investing is never about luck. It can be for some people, though, if their suite of investing tools comprise a dartboard, a copy of the Business Times and three steel-tipped tungsten darts.

Investing is about using techniques to identify stocks that are valued below what they are really worth. Investing is about identifying the potential growth of a company.

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