Portfolio update - 25 July

Dividend by mth.
1) hupsteel
2) plife suntec
3) namlee
4) taisin
5) steng singre hwahong suntec
6) tcil plife
7) engro
8) metro stamland suntec plife
9) steng singre
10) tcil
11) ngil taisin plife suntec

This year to date, dividend grew by nearly 7%, due to dividends reinvestment and rebalancing.

Metro added. Ave 98c. Undervalued hence downside risk guarded. Growing NAV. Pays regularly in August. Good for retirement planning.

I don't track portfolio value or growth.

Greek issues, china slowdown or ?malaysian crisis etc don't matter as strategy remains the same.

Have money but what's the plan

Today i share about an old school friend of mine, my senior though.

Lets call him Mr C.

Mr C is a single. Never married. No children.

He's semi retired and runs his own business.

Some years ago we had a chat at his bungalow near marine parade.

He revealed that he owns few other pieces of land around the area, all freehold. Total land size perhaps 120,000sf.

It seems that far east and cdl came knocking on his doors several times asking him whether he wants to sell or JV the land. But he rejected all those offers.

Now his house is surrounded by tall buildings.

I asked him why.

He said i don't need the money. Why should i sell?

Maybe he has other plans. I don't know.

But being in his 60's, no wife, no children. He might just end up like the seletar house owner who nearly got cheated big time.

Hope things turn out well for him.

Have money...must plan..

Inspired by cw8888 post, i share one case of a big towkay turn coolie.

Mr W used to be high flier n boss of company. Used to own few sports cars n 7 series. That was not too long ago.

Was surprised when i was told he took up some work at my friend's office, more than one occasion.

I believed this was more of a necessity for him rather than out of boredom.

Had he not bought his sport cars, he would have a least a couple of million more. Put this into blue chips/reits at 5% would give 100kpa. I think at the time he was making 500kpa or more, he probably did not think so much.

Morale of story...have cash must plan in case no cash.

stamford land - ? value trap ...does it matter

to me it doesn't. there are more things to like than not to like

1) over the past 10 years, dividend has doubled from 1.5c to 3c

2) share price has seen steady increase from 20c range in  2005 to near 60c today

3) pays like clock work every August..good for retirement planning!

value trap..really, it doesn't matter if one is in for a long ride with boss ow.

unlocking of its assets be a bonus

Who should not invest?

I just thought this is an interesting qn posed to me by someone.

In point form

1. No money.
2. Borrowed money.
3. Emotional when comes to money
4. Lack of knowledge as how stock market works.
5. Lack of knowledge how company make their money and pay out money.
6. Lack of investment plan.
7. Lack of conviction to stick to their plan.

july 2015 portfolio update

Dividend by mth.

1) hupsteel
2) plife suntec
3) namlee
4) taisin
5) steng singre hwahong suntec
6) tcil plife
7) engro
8) stamland metro suntec
9) steng singre plife
10) tcil
11) ngil taisin plife suntec

metro added ave 98c. looks undervalued, growing nav, with high property portfolio and with unfailing august dividend.

overall dividend income goes up slightly.

Reits...what i look out for

Previously i had avoided having too much reits in my portfolio but i think not all reits are the same. Some are worth a look.
gearing high n rights issue are still issues to think about but if below features present, i will still give it some consideration.
here's what i want to see
1. Prime ppties in portfolio, preferable link or near mrt.
2. Dividend on ascending trend.
3. Other associations. Eg starhill associated with ytl. Plife associated with premium healthcare n closely associated with insurance industry.
2-4x a year payout can use to feed other non reits traditional counters to quickily increase income streams. N these in turn can feed back to the reits for synergistic effects.

Is a dividend of $100 too small to be of any use?

someone commented that the rich can snowball their investments and get richer, while the poor find it hard to do compoundation.

Not true.

Let me illustrate.

Say someone invested $2000 in a counter with a 5% yield. So he gets a dividend of $100.

He can spend his family on mao shan wang durians, of course.

But he can choose to invest this. Just regard the broker fees as a one off fee, remember we are talking about investment for long term basis.

As a real example, $100 minus broker fees of $25, gives, $75 left. This can buy 100 shares of a stock with yield of 5% pa worth 75c a piece.

Fast forward 30 years...what do we have..?

At just 10% compoundation, he could be missing out on $1308!!! Or even more.

If i were in that position, I would choose to give up on that mao shan wang.

Ways to increase passive income without funds being pumped in

1) switching from stock which has run up leaving a lower yield, to another stock which has a greater yield. Of course not forgetting watching downside

2) switching a stock which pays 1 x dividend to one that pays 2-4 times dividend. Of course dividends must be able to sustain n again not forgetting downside. With more payouts, can buy n different times of year with dollar averaging concept.

3) last but not least, simply buying a wonderful stock which increases dividend over time.

Primary school tuition...more costly than i imagined

I sent my children to learning lab for their english maths science tuition.

Last year it cost me tens of k for both of them.

The consolation was that my children's grades improved after that.

?will their grades actually be the same if no tuition

?will their grades actually be the same if they had gone to a cheap neighbourhood tuition centre

Perhaps. Perhaps not.

The sum i could have invested into a blue chip to yield 4%pa

I guess kids education thing is something which is same yet different from investments. (Haha..i myself getting confused)

To add,

When i pick my children up from the tuition centre, i see so many smaller children perhaps as young as 7, wearing glasses already.

Hmm..no wonder myopia is such an epidemic here.

Portfolio update july 2015

Dividend by mth.
1) hupsteel
2) plife suntec
3) namlee
4) taisin
5) steng singre hwahong suntec
6) tcil plife
7) engro
8) stamland suntec
9) steng singre teckwah plife
10) tcil
11) ngil taisin plife suntec



Notes:

1) Teckwah and SATS sold at ave 39c and 350 respectively. Proceeds used to add plife.

-techwah ran up to 39c. I deem that to be unsustainable thus sold it off to lock in profits.

-my cut off for SATS was 350. Beyond that, i deem as higer risk as yield compressed. though it continued to climb to near 370.

2) TCIL dividend used to buy plife.

3) December dividend becomes zero.

4) plife is chosen to increase my quarterly payouts to buy more income producing stocks at different times. Plife is near its yr low lvl. N healthcare reit. Risk lower.

Overall, my dividend income will increase by nearly 1%, yet my risk is reduced by a greater amount, by the above maneouvres.
No external funds pumped in.

I did not track portfolio value because it is changes month to month, might go up or down.

Dividend income only goes unidirection.

Over long time, portfolio value will pace itself with dividend value.

One thing good about PAP...NTUC

Yes, NTUC fairprice is a good thing, very good in fact. N the government allowed this to thrive.
NTUC is the largest supermarket chain in spore.
How many of us can escape a week without going to NTUC?
Most of its stuff are fresh and reasonably priced.
because of this, the private supermarket groups are forced to follow suit n none of them can monopolise or are allowed to monopolise the market.
this is for the common good of the commoner.
this is a very good thing...imho.