portfolio update - september 2017

Dividend by month

1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost  taisin lippo
5) fcot steng sgx  uob sph starhillg fct sphreit cmt cdg hcg lippo Singre lmg
6) tcil ocbc lkh lmg
7) singpost
8) fcot singtel  plife  ocbc  capitacom starhillg sci steng fct singpost sphreit cmt lippo singre
9)  uob tcil cdg lmg
10) sgx
11) fcot taisin sgx spost  starhillg fct cmt lippo
12) sph sats ksh lmg

Remarks:

roxy sold on periodic review. gain was about 20% in one year. this counter is undervalued and its growing steadily. however on close review, it doesn't fit into my investment objectives as well as it did previously.

lian beng sold. double bag in 2-3years. again, this is not a bad stock, otherwise it wouldn't have gain so much. however, on close review, the yield at 63c is around 3%+ and divestment could lock in the gains and put these funds to better use.




my comments:


Overall,

nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.

No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.

Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.




DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:


1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?

3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?

Capitacommercial trust

CCT will be having its rights issue to partially fund a 2bil prime ppty in the marina district.

likely i would be subscribing to it, to get exposure to such prime property.

CCT being a reit, has little other option but to have a rights issue to fund such a huge purchase when this opportunity presents. the full positive effects of this might need a few years to take place, something which i think is acceptable to a lot of long term investors like myself. it is still one of the few reits in singapore which is trading below its book.

The rights amount would be slightly less than one tenth of my overall dividend for the year, so this would not have such a great impact and CCT currently occupies about 4% of my portfolio.

Imagine if CCT would occupy say 20% of the portfolio, then probably one has to ponder and ponder about what to do with this rights issue.

my options are still open even after subscribing to it. at 1.363 per new share, it probably won't be long before i can sell it for a profit, should i decide to. so long as the overall counter is still comfortably within my prescribed limit, i think i am fine holding it and milking this cow to feed other cows in my garden.

comfortdelgro and sph - multi year low prices

we see both counters CDG and SPH dropping to multi year lows, the former ended just above $2 today and the latter about $2.60 today.

both are the result of disruptive forces of today's modern world

i believe these two counters belong to many people in singapore, including myself.

i used to think they were very safe. perhaps not so now. 

However, but over a long time, my guess still is that both should be able to weather this and most likely they will not become history in our history books.

i did a portfolio check today, and it remained relatively unaffected still.

main reason is that each counter is about 4% of my total portfolio.

hence every 10% drop in one counter would represent a movement southwards of 0.4%. 2 counters even 20% each will at most affect 0.4x4% or 1.6%, which is rather negligible still. 

main thing i would like to ensure is that they still can maintain their dividends, though a small cut is still perfectly acceptable to me.

if i had only 5 counters in my portfolio of 20% each, and it contained CDG and SPH, the same drop of 20% in these two would mean 4x2% or 8%, which is actually 5x more than what i had, and its nearly one tenth drop.

so portfolio management is quite important to take care of unknown unknowns

why i don't have bonds

recently i met up with my broker. he told me bonds are popular and that i should consider buying.

i ask him how much. he told me 250k a pop

i declined flatly

1) bonds give income which DOESN'T rise with inflation

2) income is taxable in certain cases(pls read the comments below) . ie i need to declare this income

3) its not bao chi as there are reasons why bonds happen and as shown in recent cases, the bond owner might not see his money again.

4) bond prices might fluctuate. how volatile i dunno as i dont watch this



buy bonds? i rather watch james bond

why i declined to let my uni prof work for me

the title could be rather unbelieveable for most. it was for me too.

just last week, i received an sms from my university nus professor's PA asking me for a job to work at my company.

is it another person with the same name? i  thought about it and i did some checks. no, its him.

i thought about it for a while. yes, true that i need help in my company.

but i declined after second thoughts.

1) at 60 plus years old, surely he must have made enough as a professor. professors in nus must at least earn 300kpa. strange thing. may be poor investment wipe out all his savings? i don't know.

2) job scope of what he is currently doing doesn't fit mine, though he credentially he is much much more than qualified.

3) if he makes mistakes, can i tell him off?

so to avoid potential trouble, better avoid it in the first place.

(the identity will be kept confidential- the purpose of posting this is just to remind myself that education is important, so is managing ones life and finances)

Education is cheap in singapore? Read this

it is said that primary and secondary school education is free if not cheap for the citizens in singapore.
in reality, the truth is, far from that, if you consider education in totallity ie from the acedemic and non acedemic points of view.

30years ago, during my time, how many people did have tuition and enrichment lessons? It was the exception rather than the norm then

fast forward 30yrs later, now, ask again, how many people don't have tuition?
is it sufficient just to rely on the school's teachings and notes? i have been to a number of talks given by the teachers of the school of my children. they say its enough to study from the school books and notes.

my children attends enrichment lessons for various subjects, costing 30kpa for just their tuition fees.
looking at the notes from the premier tuition centres, i have to agree that the teachings complement and in addition broaden up a whole new perspective from the school's one.

my son is currently in NYPS gifted program and recently he was accepted into Raffles Institution.

personally, i haven't attended a day of tuition and don't believe in it. if u ask me, i still don't.

but sometimes, we just don't know the outcome if you don't invest in it or rather don't want to take the chance if you don't invest in it.

"they"say education is affordable and cheap in singapore. Yeah, if just attend the normal school and nothing else, its true. but i believe most parents know whats the real situation.

Portfolio Update August 2017

Dividend by month

1) singtel
2) fcot sgx capitacom lian beng starhillg fct sphreit cmt
3) spost  taisin lippo
4) roxy
5) fcot steng sgx  uob sph starhillg fct sphreit cmt cdg hcg lippo Singre lmg
6) tcil ocbc lkh lmg
7) singpost
8) fcot singtel  plife  ocbc  capitacom starhillg sci steng fct singpost sphreit cmt lippo singre
9)  uob tcil cdg lmg
10) sgx lian beng
11) fcot taisin sgx spost  starhillg fct cmt lippo
12) sph sats ksh lmg


Remarks:

Roxy dividend was a little of a diasppointment but will continue to hold this counter for the sake of its asset appreciation in time to come, which is slow but sure imo.

Taisin dividend maintained as earnings can support it. price overvalued imo, we might see it correcting below 40c barring surprising earning report next quarters.

uob scrip opted, as usual. scrip price is a bit high but i believe the bosses think that its still value for the process.

cdg undervalued imo. added more of this. dividend even up yet price did not reflect this

singre counter added during a selldown yet can enjoy dividend. counter revisited. now its even more undervalued as nav continues to rise

lippo malls added to existing stake. plan of this counter is to invest in indonesia real estate. currency devaluation land lease issues etc...i am aware of all these, but investments all have risks right? And risk of adding lippo actually decreases risk to my original portfolio, itself will be limited to at most 2-3% i guess.

last but not least, tan chong dividend up 25%, a bullish point to support it at or above hk240. remains deeply undervalued, even more as its net asset is still growing. when will it gap closer to its nav? its anyones guess. its just a horrendously undervalued stock which just got even more undervalued.

my comments:



Overall,

nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.

No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.

Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.



DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:


1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?

3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?