Tuesday, 31 December 2013

Focus on being debt free, generating passive income or growing net worth?

It has been a relaxing few days as i took leave to focus on my personal finance and plan for myself how to continue my pursuit for financial freedom in 2014. I read with huge interest some bloggers who attain passive income of more than $1,000 a month this year and another blogger who became debt free at a relatively young age by paying off their HDB mortgage loans in its entirety. 

A very mind intriguing thought came to my mind. In our pursuit for financial freedom, do we want to focus on Net Worth, focus on Cash Flow or focus on being Debt Free? There is no right or wrong answer but the mindset can lead to very different outcome eventually and a lot will depend on which stage of the life cycle we are currently in. Let me give you a simple illustration.

Illustration

Assuming a young couple in their early 30s managed to save $100,000 and this year, they received a bonus of $100,000. With $200,000 in the bank earning low interest, they were wondering what to do with the money. They currently have 2 kids and a remaining HDB mortgage of $200,000. 

Focus on Debt Free

A couple who is focused on being debt free will want to use the $200,000 to pay off its HDB mortgage. This is because it essentially means that they are "officially" debt free and as long as they have enough to feed themselves, they will have a roof over their head. This couple wants to "sustain" their lifestyle.

Focus on Cash Flow

A couple who is focused on cash flow will weigh the alternative use of the $200,000. If they can invest the $200,000 in a relatively safe manner (say in a corporate bonds or REITs) yielding 5% p.a., they would effectively have earn an arbitrage difference of 3% (assuming 2% mortgage loan). Hence every month, their $200,000 will earn 200,000 x 3% / 12 = $500 per month. An extra $500 per month! Not too bad actually if they can eventually generate passive income to cover their lifestyle . This couple wants to "maintain" their lifestyle.

Focus on Net Worth

A couple who is focused on growing net worth will actually view it differently. They will put the $200,000 in the "mortgage-one account" to offset the home loan interest (HSBC and SCB offers such loans previously) and wait for opportunities to use that $200,000. When the opportunities arise, they will invest within their area of competence, be it in properties or stocks or other assets. (I have shared with you previously why properties are preferred because of the leveraging effect). This couple is not afraid to take on "good debts" and in a few years, their net worth multiplied because of the good "debts" and increased in value of their stocks and properties. This couple wants to "enjoy" their lifestyle.

What mindset do you have?

I have a friend who is a few years older than me but his original focus was on being debt free. When the opportunities came, he didn't have the "bullets" to pull the trigger as he has just paid off his HDB mortgage loan. You must also remember that banks prefer to lend money to younger couples in their early 30s. As you aged, the ability to borrow from banks actually falls, especially with all the mortgage rules being implemented. 

When i was in my early 30s, my focus was on growing my net worth. Now that i have crossed 40, i am beginning to pay slightly more attention on generating stable yields (or passive income) but my priority is still focus on growing my net worth. Once i cross 50s, i will want to ensure that i have stable passive income that will allow me to maintain my lifestyle for the next 20 years (assuming i can live till 70s).

SRS and me 

As i reflect back on my SRS account in 2013, i think i am actually too "hung up" on finding yields and creating passive income. I should instead be focused on investing in great businesses and growing my net worth given that i am still relatively young. As such, l would like to change my mindset a bit for the SRS account from 2014 onwards. I would like to take a more balanced approach between finding good dividend-paying stocks as well as growth stocks that will generate the alpha to grow the net worth. The table below shows the portfolio growing at a compounded 7% per annum, i am actually slightly behind for 2013.   



My SRS balance is ~$119,873 versus the targeted $121,880. Let's see if i can "catch up" in 2014 to grow it to $143,108 in 2014 with a lofty target of $778k in 2030.... seemed so far away.

SRS and wifey

To help fund our retirement, i have actually seized control of her SRS account as well and in fact, contributed the money there ^_^. I will share with you periodically her account but her focus (given that it is my money and her low risk nature) will probably be in the more boring stocks that pays dividends every year.

2014 - What stocks to invest?


This may surprise you but i am actually currently looking at a China stock that is in the clean environmental space. China has a huge need to clean up its air and water. In fact, there is a news article today on the opportunities. I will post about it if i managed to get in at the price i want.

Happy SRSing and focus on having the right mindset (if you are still young!)  :)

Thursday, 26 December 2013

Wednesday, 25 December 2013

Second Chance Properties Ltd


Received this annual report in Dec. Readers will know I bought this counter for my SRS portfolio a while back.


The company will pay a second and final dividend of 1.7 cents for the FY ending 31 Aug 2013. 


The revenue and profit figures are not entirely comparable as FY2012 consist of 14 months. 

Fair value properties accounting caused the profit to go up by $42.9m but overall,
this is a simple and well run company that is paying out dividends on a regular basis. 

Anyway, no cause of concern at this juncture. Will continue to hold on to this counter but nothing exciting as well. Zzz..

Monday, 9 December 2013

SRS Portfolio - 30 Nov 2013


A relatively quiet month given that I have only 4 positions but the good thing is all of them are in the black, even China Merchants, which has been in the red previously. 

Dividends

Received $165 from China Merchant Holdings in November. 

Cash

Received $3.94 in interest income. 

I am holding on to too much cash to the tune of $95,875 but in all honesty, haven't have any ideas on where to deploy the cash yet as the stocks at current valuation are generally not "good value". 

Happy SRSing. 

Saturday, 7 December 2013

Investment Ideas for 2014

Time really fly. It seemed like yesterday when i shared some investment reports on 2013 strategies.

Here you go. Some early Christmas presents from UBS, DB and CIMB to share with you where to put your year end bonus.




The year end bonus for Civil Servants this year is about 2.5 months (including the 13th month AWS). How did you fare for your bonus?

Did you get a big fat bonus? Share with Mr. IPO on his facebook page. The poll are as follows. How many months bonus did you get or think you will get for 2013?

0 month - My monthly salary is too high. No bonus needed.
1 - A pathetic AWS and nothing more.
2 - My employer is feeling more generous this year
3 or more - I am going to buy myself a new car! 

Sunday, 1 December 2013

Brain dead!

I am finally back in Singapore after 2 weeks of business travel. I hope i am done with business trips for the rest of the year having flown to 4 cities in the last 10 days.

I think my brain is suffering from the lack of oxygen from all the high altitude, not to mention all the irregular food intakes due to different time zones. I have almost finished the entire library of in flight movies (or at least those I find worth watching) that I watched a documentary on my last flight. 

Yarsagumba - Himalayan Gold

The documentary talks about a Nepalese man and his 12 year old son who for the first time follows him to hunt for Yarsagumba during the season in the Himalayan. 


Yarsagumba is more commonly known as Cordyceps or 冬虫夏草. It is a worm in winter and after consuming mushroom spores, exploded and died in the ground.  The mushroom spores continue to grow within the body of the worm and the plant exploded out through the head above the ground. 

How it was first discovered?

Anyway, the medicine effects was first noticed by herdsmen in Himalayan who discovered that its herd of animals that ate Cordyceps recovered faster than those who don't. This little potent worm was used in Chinese medicine for Emperors since ancient times! Maybe it is the Chinese version of Viagra. This is an interesting article on whether Cordyceps is worth its weight in cold. 

Himalayan Gold

The price of this worm has increased by 1000% over the last 10 years such that it is said to be more expensive than gold. The villagers can earn a year's wages in 2 months. As a result the entire Himalayan is filled with many worm hunters camping out in tents during the season. 

Learning about financial planning from
this documentary film

Expand into other trade - Diversify

I thought the more "clever" villagers expanded into other business. Instead of joining the thousands of hunters (increasing each year) and the decline in the number of wild Cordyseps due to over harvesting in unsustainable manner, some set up "restaurants" tents at base camps where the hunters can eat in comfort and pay using either cash or "worm gold". Hmmm. That is really quite smart and cash flow generative and has less risk than hunting for the worms since there is no guarantee if one can find sufficient "worms". 

Sounds like a similar investment strategy where you invest around the oil and gas sector (such as those providing services to it) without taking commodity or exploration risk. 

Don't cultivate bad habits - Gambling

The documentary showed the man gambling away the worms which he and his son has gathered in a simple dice game. Many weeks of hard work has gone down the drain due to the temptation for a quick buck. Similar to our pursuit for financial freedom, don't cultivate bad habits and gamble the future away. 

Always be alert - one misstep can be costly

Imaging crawling on all fours at 5000 ft, one mis step and your life is gone. Similarly, we should plan our financial freedom. One wrong move may not kill you but may set you back by a good number of years. So don't over leverage yourself or trade beyond your means. 

On the other hand, you cannot be too cautious as well until you are "immobilized". In the documentary, the man and his son moved higher to a new unexplored area when the area they were originally searching in has an influx of migrant hunters. The new area yielded much reward for them. 

Watch out for unscrupulous hunters!

Some hunters insert metal strips into the worms to boost up the weight to cheat others. Similarly, watch out for unscrupulous management of companies  who may just want your hard earned money without any intention of paying back to you!

YouTube movie

You can search for the movie on YouTube. May not be the same as the one I watched but definitely worth to spend a lazy Sunday afternoon watching it. 



Maybe a little Cordyceps in my chicken soup can help revive my dead brain and helped inspire some investment ideas?! ^_^

Sunday, 17 November 2013

It's time of the year again!

It's time for the year again whereby you start reading articles about the benefits of SRS. Probably because Christmas is coming?


Goh Eng Yeow

Perhaps this author wants to gently remind you about what you should do with your bonus. However, what I can't stand is this author's tendency to boast about himself whenever he can. 

I am never surprised to see phrases such as "Since I have already doubled the money which I have into my SRS account..." I truly wish he can open his account and let it be audited. I am most willing to pay for the accountant fees to go through his account to find out if he truly has doubled his account and how he did it so that readers can truly benefit from it and take comfort that they are reading from someone who has been there and done it. 

You should have read his earlier claims about his "contribution" in helping some readers avert the Blumont crisis and his role in it or why the market crash whenever he takes holidays... Blah blah blah.. If only he can tone down the big I in his articles. 

Sometimes I really wonder if he is writing about his personal experience or boasting about them. It's a fine thin line. If he is right in future, I guarantee you that he will dig up his old articles and boast about it but conveniently forget about all the misses he made. He is nowhere near the humility of Teh Hooi Ling, a financial journalist who is now with a boutique fund manager. 

Open an SRS Account today 

Anyway, I don't want to sound like a broken recorder. If you haven't open or top up your account for 2013, it's time to do so. If you have been following my blog, you will know this I have topped it up quite sometime back. I won't go into the tax savings or the benefits of investing through it. 


Don't leave cash idling in the account 

Sounds like this article is written for me? Hahaha. Not really actually. If you have been following my blog, I have been steadily reducing my exposure in stocks and increasing my cash component.

Crisis always hit whenever you least expected it and I am increasing the cash component so that I can take advantage of it should it happen. 

Is a crisis coming soon ?

Your guess is as good as mine. I don't know and won't claim to know it. But when it comes, don't hesitate to deploy your cash. One indicator I am waiting for is for the FED to raise interest rate. 

What I am waiting for?

Am I waiting for crisis? Actually not. However I have been very busy in
my work and I wish I have more time to study the stocks fundamentally and analyze them. If you have any ideas to put those money into fundamentally value stocks, do share them with me via Facebook or leave a comments here. 

That is it for now. You have up till 31 Dec 2013 to top up your SRS account. Don't procrastinate and start your SRS journey with me! 

My SRS Journey

My SRS journey is well documented in this blog. You are most welcome to join me! 

Sunday, 10 November 2013

SRS portfolio as of 31 Oct 2013


Received $100 dividend from UMS this month and a little interest income. 

There is too much cash in my portfolio now and I haven't have the time to analyze what stocks to add to my counter. The cash balance is now $95,706. 

Currently I have 3 counters in my portfolio. I may consider adding more shares to them next time if there is a correction. One of my regrets is selling out Riverstone. Seemed like the performance continued to improve but i have no regrets selling NeraTel. The gains at NeraTel are "accounting" driven.

In my "ideal" world, i will probably have 5-8 counters of $10k to $20k each in my portfolio. Lets see if there will be opportunities to build up my portfolio. 

My life has been in a hectic pace for the last few weeks and I don't think it is slowing down. In fact, I am going to visit 4 cities in the next 2 weeks for business. Don't think my wifey is pleased other than for one city which can add to her bag collection. 

Happy jet-lagging. ^_^

Sunday, 27 October 2013

Don't treat your career marathon like a sprint


This article appeared in the previous week's EDGE. I have mentioned before that pacing yourself in your career is important and having a work life balance is as important! It helps to keep your sanity and become very effective and efficient in your work. 

Funnily I saw this poster in a toilet today. Perhaps can share the 9 foods that enhance men's health. Since majority of my Facebook fans are male, suitable to post this today ^_^


Have a well paced and balanced career. No point making millions and losing your life through ill health. And remember to share your wealth with those less fortunate. 😄


Monday, 21 October 2013

Blumont

I have to tell you that I have been swarmed with work, which is why you hardly see any postings from me in recent weeks. In fact, my crystal ball tells me it will be even worse in November. Nevertheless, i have to tell you about the near miss i had.

I had a short coffee session with a stock veteran on Wednesday last week and nearly spilled coffee on him when he told me 

"I just whack a few hundred lots of Blumont and hold. Don't think too much, when such opportunities come, just whack".

You know i never really like small caps but having said that, i also know that small cap will give me the opportunities to make muIti-baggers. 

Since i trusted this veteran, I whatsapp my broker immediately,  asking him, can i buy Blumont from my SRS account at $0.14 and he replied, nope. SGX says cannot, only cash transaction allowed.

I was not deterred but decided to do more work over the weekend to find out the intrinsic value of Blumont and saw this article by Kevin Scully

The next thing i know, SGX lifted the "designated stocks" on the 3 stocks including Blumont and here you go, the opportunity to make some money "vanished" in the air. 80% return within one day at the end of today. Urggh... perhaps i should be more 'gung-ho', think less and use my 'cash trading account' to buy Blumont instead. 

Sometimes i am quite amused by my own 'inertia' and the excuses i have for not executing the transaction... i better be more 醒目 (alert) to such opportunities.

I haven't told you about another missed opportunity in RH Petrogas at 66c. I am already quite upset with myself. haha will keep the story for another time if i have time... but UOBKH came up with a $1.60 target today and i think the chance to buy at 66c will probably be gone for now :(

Monday, 14 October 2013

SRS Portfolio - 30 Sep 2013


Just came back from another business trip.

September is a "divestment" month where i continue to sell SPH and Suntec Reit

Interestingly, despite my divestments, I also received $597.87 of distributions from the following counters:
  • Mapletree Commercial Trust $87.65
  • Perennial China Trust $190
  • AIMPS Industrial REIT $82.50
  • Capita Retail China Trust $234.50
  • Interest income $3.22
I am currently holding $89,523.41 in cash. I will deploy them again when the time comes. I guess one regret will be selling Riverstone, which has since moved on to 'greater heights'. :)

Happy SRSing.

Tuesday, 1 October 2013

Mapletree Commercial Trust

Today, i sold off my position in the above trust at $1.23, barely covering my original investment cost.

I am doing a "major" portfolio reshuffling, moving out of interest rate sensitive stocks but i have yet to think of where to deploy the freed up cash yet. I will keep you posted later.

Monday, 23 September 2013

SPH & Suntec REIT

SPH


I continue to rationalize my SRS portfolio today, taking advantage of the strong run-up to divest SPH at a small profit, which in my view, continues to face challenging times ahead. Many print media globally have gone bankrupt if they don't move with time and with SPH listing its properties and currently trading at 18x historical PE multiple and a yield of less than 4%, i think it is time for me to move on and focus on investing in good quality small to mid caps.

While giving me a small profit from my entry price of around $3.70, SPH has treated me well, giving me at least $930 in dividends alone over the past few years.

Suntec REIT


I also said goodbye to Suntec REIT. My purchase price was at $1.545 in June 2013.Coupled with the dividend of $112 received in Aug, my return from this short investment would have been around $650. The FED will probably raise interest rates next year and i took advantage of the rebound to divest my position. 

Happy SRSing


Monday, 9 September 2013

SRS Portfolio - 31 Aug 2013


Received the following dividends in Aug:
SPH Holdings - $180
Starhill Global - $119
Suntec REIT - $112.45
Ascott REIT - $204.05
Sabana REIT - $120
Interest income - $1.51

Considering I have divested a fair bit of some of the stocks,  the passive income of $735.50 is still not too bad. 

Happy SRSing. 

Wednesday, 28 August 2013

This the season for cutting loss ^_^

August seemed to a long one. It is one where my alerts went non stop whilst i was in the midst of meetings. hahaha..

Anyway, today i had 4 sell transactions on my SRS account.

Riverstone


I took profit on Riverstone when 62c gave way this morning. I first entered this position sometime back in Feb this year.

Perennial China Retail Trust


This is one whereby i had ample opportunities to sell at much higher price. I first entered this position in Sep 12, see it move to the high of 66c before collapsing back close to my entry price again :(

I should have said "goodbye" when 58c give way but i didn't haha. Anyway, this is life! :)

Sabana REIT and Ascott REIT

I also cut loss on both Sabana and Ascott REIT when it broke below the recent low of 1.115 and 1.215 respectively today. Contrary to what you may think, i am actually quite happy cutting losses as it allows me to move on and rethink about how to deploy my money into more fundamentally strong stocks. The "trick to cutting" loss is to make them "palatable" and less painful but once your cut loss level is hit, don't hesitate. Cut and move on.

Anyway, probably this are the last few positions to cut loss. 7 remaining positions in the SRS account.

September will be a busy month for me where i will be flying around most of the time... probably will not have as much time to invest and trade. 

Happy SRSing.

Monday, 19 August 2013

Good "Reit-dance"?

I divested two more REITs today when they all hit the internal "cut loss" points i had for them.

I sold CapitaRetailChina when $1.40 support gave way.


I also took profit on Starhill Global when $0.80 gave way.


Anyway, at the rate it is going, the portfolio is going to do a 'self-pruning" and allow me to rebuild my portfolio in the coming months.

Wednesday, 14 August 2013

AIMSAMPI REIT



It is interesting that I got stopped out with 2 REITs within a week. My first was Croesus Retail Trust on Monday. I first got into AIMSAMPI on June 4 at $1.65, saw it drop further before it recovered above my entry price on 2 July. It then went downhill thereafter and broke the key support at $1.53 yesterday and I cut loss at $1.50 today.

As mentioned earlier this week, i am focusing my efforts into more concentrated positions (larger investment amounts and less companies) for my SRS fund. 

For those who are not on Facebook, I ran a poll on SoilBuild REIT and this was the poll results made last evening. I mentioned that it is probably a good idea to give Soilbuild REIT IPO a miss given the meltdown in industrial REITs. So if you want to receive the most updated postings and thoughts, probably a good idea to like my facebook page and you can "message me" via facebook as well. 

Happy SRSing.

Monday, 12 August 2013

Riverstone Holdings

Riverstone announced a good set of 1H results with 2.3 Malaysian Sen interim dividend. A report from UOBKH is here.


The Company continued to be debt free and generating strong cash flows to fund its capex requirement while at the same time, maintains a strong dividend payout ratio of 40-50%. This is a very well run company.


The share price is at record high. We shall see how it performs in the next 6 months.

Croesus Retail Trust



Today I cut my loss in Croesus Retail Trust at 91.5c when it broke below the IPO price of 93c. You can see that even for positions which i acquire for long term and for passive income, there is a "cut loss" point as capital preservation has always been my priority.

I take this opportunity to explain to you why my IPO chilli ratings are for 'short term' indication only. If you have sold on the first day at $1.14, it is a 22% return and a 3 Chilli for sure. After 1 week, it drops to a 2 Chilli and after one month it became 1 Chilli. Today, it became chopped chilli....

I am not sure when Croesus will recover again but probably i will avoid it for now.

I spent the long holidays thinking how i should "refocus" on my SRS portfolio. I intend to:
-  reduce the number of positions in my SRS portfolio to a more manageable level
-  increase the exposure through larger and more concentrated positions
-  search for under-valued, fundamentally strong and if possible, dividend paying stocks. 

Stocks such as NeraTel, Riverstone, Overseas Education and UMS have been doing well for me. In addition, I will probably not increase my exposure to REITs.

Happy SRSing.


Wednesday, 7 August 2013

Starfish SRS Portfolio - 31 July 2013


Not much transactions this month except that i sold Nera Tel. Frankly i am not sure if that is a wise move but we shall see.

The portfolio received the following income:
Dividend - 2nd Chance: $170
Dividend - UMS Holdings: $100
Interest - $0.73

The Portfolio is now holding cash of $22,457.96 which can be deployed into new positions.

Happy SRSing.

Monday, 22 July 2013

Nera Tel

Today i sold off my position in NeraTel with a gain of around 85% as valuations become "fair" with PE hitting 15x. I will probably buy it back again at a later stage when the valuations become more compelling. The holding period is close to one year. My entry post is here.


Happy SRSing.

Saturday, 20 July 2013

Riverstone Holdings Ltd

Let's me try to do a few updates on my SRS positions this weekend. Will spread it over a few posts if time permits. I want to see if it is worthwhile to continue holding some of my positions which hit all time high.


My entry post was here at 47c (depicted by the green arrow on the weekly chart below) and the last traded price was 62.5c (up 33% and at all time high)


Seemed like the market is finally appreciating the counter and it is at all time high. No major news announced except that the warrants will expire on 2 Aug 2013. Given that the exercise price is $0.31, most warrant holders will be converting their warrants into equity.

While it is good that the Company is receiving additional injection of equity, it is "detrimental" to existing holders like myself who are being diluted down.

The total number of shares in issue as of 18 July is 369,572,645 and this will creep up in the coming days as the Aug 5 deadline looms nearer.

Q1 2013 Result

Announced a good set of Q1 results on in May. I must have missed it due to my busy travelling and work schedule back then. keke..

"Market is a voting machine in the short run and a weighing machine in the long run ~ Benjamin Graham"

At the end of the day, earnings always drives share price performance and perhaps this is why the share price of Riverstone has been creeping up slowly. I like companies that show strong quarter on quarter performance and Riverstone has delivered on that front as Q1 profit is up by 21%. However, you can see that EPS has not increased by the same % on a fully diluted basis. 


Assuming last year's profit increased by 21%, FY2013 net profit will be around MYR 47.6m and the EPS will be around 12.9 RM sens or  5.11 Singapore cents. That translates into a forward PER of around 12.2x, which is probably trading at fair value.

The company continues to be debt free and I will continue to hold it for Q2 results. 

Happy SRSing.


Wednesday, 10 July 2013

Starfish SRS portfolio as of 30 June 2013



During the month of June, i received the following distributions:
  • Dividends from China Merchants Pacific - $165
  • Distributions from Far East Hospitality Trust - $69
  • Interest income - $1.25
To recap, i bought the following as well:
As you can see from the statement, the addition of the new REITs purchased resulted in some unrealized losses to my portfolio :-P

Happy SRSing.

Monday, 1 July 2013

Topping Up SRS account

Today i made a quick trip to the bank to top up my SRS account to create more 'dry powder' and for tax savings reason even though technically i can wait till end of the year to do the top up. How time flies, i blogged about my previous top up in Sep last year.

As of today, the invested capital is as follows:


The value is based on today's closing price. I have to tell you that i have been fairly inactive for a long time with my SRS until i decided to be more active last June and start blogging my journey here. I hope it can be a little inspiration to you to start saving for your future and create a portfolio that generates passive income.

You just have to take the first step out... like what i did in 2006 and gradually, it will build up over the years.

Happy SRSing

Sunday, 30 June 2013

Starfish SRS Portfolio Expected Yield

I updated my portfolio expected yields as of 30 June (automated using some software).


This is just an estimate so read it with a pinch of salt.

The expected yield on this portfolio based on the historical cost which i purchase is around 7.24%. In other words, i am expecting a dividend of $6.9k every year on my portfolio but as you can see, i am still a long way off in reaching financial freedom! :( The portfolio is well diversified with no individual stock weighing more than 10%. I will probably trim my position in Croesus and rebalance should the share price recover above $1.

As mentioned in my earlier post, i am low on cash now in my SRS portfolio. So i will need to either sell some stocks or top up with 2013 allocation if i want to add some more positions. 

Happy SRSing.

Friday, 28 June 2013

Addition of "ACS" to SRS portfolio

Today I added 3 positions to my SRS portfolio (2 new and 1 existing).

Frankly i am not sure if it is a good time to buy (technically don't seem to be the time yet) but as i have shared with you, this diversified Starfish SRS portfolio is meant to create a stream of passive income to fund my retirement. I still have side pockets of cash to take advantage of the crisis (if and when it happens), be it in stocks or property. Remember to always keep a pool of cash on hand for such purposes but more importantly, know how to deploy them when the time comes.

In addition, I have 2 other "instruments" to help me "hedge" my positions via futures and CFDs when necessary, so you too will have to expand your repertoire of skill sets over time.

Ascott Reit


I sold my Ascott REIT on 29 May 2013. Today, i bought 5 lots back at $1.265. The yield at current price is more than 6.5% (assuming occupancy remains the same). This is my only hospitality REIT at this juncture with most properties outside "hazy" Singapore.

Croesus REIT


My entry post was here. I have to admit to you that my entry was too early and at that time, I was 'switching out' the 4 lots which i get from the ATM into SRS. Today, i added another 5 lots of Croesus REIT at $0.945. The yield at current price is close to 8%.

Suntec REIT


I have previously owned Suntec. Today i bought 5 lots at $1.545. The yield at current price is more than 5.8%. Probably the yield will go up once the asset enhancement projects are over. I wanted some exposure from the office sector to balance up my portfolio.

Invested Capital and Cash on Hand

My total contribution (i.e. investment capital) from 2006 to 2012 is as follows:
2006 - $11,475
2007 - $11,475
2008 - $11,475
2009 - $11,475
2010 - $11,475
2011 - $12,750
2012 - $12,750
Total = $82,875 

Current portfolio value based on today's share price plus cash is around = $102,371 

My remaining cash is running low and i may contribute the 2013 allocation of $12,750 to the SRS account soon.

Passive Income Goal

Assuming my portfolio cost of $82,875 generates a yield of 8%, my passive income will be around $6,630 per annum. I will work out the implied forward yield of my portfolio when i have the time.

Sigh... still a long way to go! I want it to hit at least $50,000 per annum before i retire... :(

Tuesday, 25 June 2013

Show me the money!

Here you go. I am going to show you the money for the new coins that will come into circulation. 


Fresh from the "oven". ^_^

Monday, 24 June 2013

A Global Meltdown and a REITgrettable mistake?

The recent addition of 5 REITs actually added a lot more volatility to my SRS portfolio.

As of end today, the entire SRS portfolio is only up 5.6% and all the losses are ALL "contributed" by the recent REITS that i added! :(

Have i been too impatient in adding the REITs and was it a bad mistake? A lot of the REITs looked "downright" ugly... and it will be a while before they recover.

The portfolio as of today looks like this:



We shall see if a meltdown is on the cards. I will probably implement a strict "cut off point" should a global meltdown happens to preserve my capital.

For those who want to purchase a property, you will need to see a global meltdown in equity prices before it filters down to property prices. 

To complete the picture to those who have been following my Apple purchase, it hit my "stop profit" level and i got out at a small profit last week. 

Take care all :) 

Monday, 17 June 2013

Mapletree Commercial Trust & Sabana REIT

Today i added 2 more portfolio counters into my SRS portfolio.

5 lots of Mapletree Commercial Trust at 1.22. The projected yield should be ~5.5% at current price.


5 lots of Sabana REIT at 1.15. If i recall correctly, the projected yield should be around  ~8.5% at current price. I was also contemplating Cache Logistics but it seemed that with the recent addition of AIMPS and Sabana, i am "too" overweight on industrial REITs whereas the yield on office and retail reits have yet to drop to appealing levels yet.


I am building up a portfolio to create a stable cashflow of dividends for my retirement, so my focus was more on the cashflows. 

Not sure if it is a good time to buy, only time will tell. ^_^

Starfish SRS Portfolio as of 31 May 2013

Here is the portfolio status as of 31 May 2013. The unrealized valuation gain is around $10k but of course you know what happened in June. The markets crashed and so the unrealized gains would have dropped as well.



May seemed to be a good month for dividends? Received a total of $1,239.44 dividends from the following counters:

Nera Tel - $400
Overseas Edu - $275
SPH - $70
Riverstone - $157.44
Starhill - $137
UMS - $200

Also divested Ascott, Far East and M1. The post is here.

I will be deploying my cash in SRS back into the markets when i see good valuation or yields. 

Happy SRSing.

Tuesday, 4 June 2013

AIMPS Reit and CapitaRChina

I am terribly busy with work and am going for a trip soon, thus am not entering into trades even though i see some beautiful opportunities for trading last evening.

Nevertheless, i made 2 investments for my SRS portfolio but i will not elaborate too much as they are basically yield plays as i re-balance my SRS portfolio with this sell down.

AIMPS Reit


Industrial REIT that is yielding around 7%. I entered 5 lots at 1.65

Capita Retail China


Bought 5 lots at 1.57. Again for the yield which is around 6%.

Happy SRSing

Wednesday, 29 May 2013

Capital Preservation Mode

Today i am in a capital preservation mode.

I just counted my lucky stars for getting out of Asian Pay Television Trust safely. Despite my own initial "chopped chilli" rating, i was swayed by the somewhat "improved sentiments" and decide to "punt" the IPO and against all odds, actually managed to get 36 lots from ATM and amazingly i actually got out for a small profit of ~$1,060. 

I am quite glad that my decision to punt the IPO didn't affect the majority of the readers since i made up my mind only about 1hr before the application closes. On hindsight, the risk reward is just not worth the effort and i should not have done this. I should just have told my broker to allocate my 1 lot from placement to someone else. Having said that, if the price has opened below water, i would have cut my losses in any case. Lesson to share - when in doubt just stay away (as kindly pointed out by one facebook reader :P). 

M1


I decided to take profit on M1 at $3.22 today. I have been contemplating it for a while but today just gave me the perfect excuse to do it. The yield has dropped below 4% and the PE is now more than 20x. In any case, it is overvalued. My entry post was here and my only 'regret' was that i should have done it last week when i first thought about it.

Far East Hospitality Trust


Again, my regret was not taking profit earlier. I should have sold when 110 gave way under usual circumstances but as it is (no excuse) i was in big Apple when the support breaks. haha

Ascott REIT


Similarly i divested this counter as i reduce my exposure to the market. REITs have being coming under a reality check, and i reckon i can switch to some interesting counters if market drops further.

Mapletree Greater China Trust


I sold this counter today from my cash portfolio. Some of you have been tracking my position, so i will just share that with you. 

I will share with you what i think of the market in a weekend post. I am rushing for work and catching a flight for a business trip.

Talk to you shortly. :)

Friday, 24 May 2013

REITaility Check

I think the sharp drop in REIT stock prices caused a reality check and some panic selling in the Singapore market. Is this the burst of the yield bubble which i first talked about in October last year? Even Mapletree Greater China Trust was not spared and dropped a significant 7.5% this week. 

The series of upgrades by analysts last week caused me to make a mental note to take profit on this counter if the 1.11 support was breached. 

Unfortunately, i am out of office this week and by the time i had a chance to look at my portfolio yesterday, it was already trading at the support level of 1.04. The triggers on my SI Station (including my other counters) has been sounding non-stop the moment i started up the application. ^_^

 

Anyway, i have set another trigger at 1.02, i will sell my positions in MGCCT is the final line of defense is breached. This time better tell my broker the plan as i am travelling again next week. :(

How you should monitor your portfolio?

All human beings are unique, so don't expect me to tell you what you should do with your money or investments. I typically won't answer those questions because i have no answers. I have shared with you previously that you should know your own time frame and your should know yourself before you venture into trading and investing. Its okay to pay school fees and learn from your mistakes. I have paid countless school fees but just make sure it doesn't wipe you out and don't take leveraged position if you don't know how to cut loss.

How i monitor my trading portfolio

For my trading portfolio, i am pretty nimble. I trade in bigger positions and have a tighter cut loss. My objective is trading income and it is more 'technical' in nature. Currently i have no trading positions because i have taken profits on them when they hit my targets. If they have not hit my targets, i would have cut loss on them anyway. I will trade only if i have time to look at the market.

How i monitor my investing portfolio

My investing amount is smaller, my time frame is longer and my objective is passive income. You know what i have in my SRS portfolio. However, having said that, i do have a "cut loss" or "take profit" level as well. I had wanted to take profit on M1 when the yield compressed to below 4% but i haven't got the time to sit down and give it a serious thought. I usually get out when valuations get out of sync with the market but it is more 'fundamental' in nature. I do have a stop loss level as well because it is to protect my capital. Currently my SRS portfolio is up about 16%, i will probably get out to protect my capital if there is a big market crash and then slowly build up my portfolio again during the crisis as there are more bargains to be found.



Food for thought: If you are losing sleep over your stock market portfolio, either your position is too big (relative to your entire personal wealth) or you don't know what you are doing (and is therefore afraid of the unknown).  

Fed Reserve and you

One word from Bernake and the market came crashing down?



I have to tell you that the low interest rate environment will not last forever. There will be a point in time Fed has to raise the interest rate and when they do so, the prices of REITs and bonds will fall. At which the prices of real estate will probably need to take a correction as well. My "crystal ball" says it will probably be around 2015 (plus and minus) that interest rate has to go up. Take it with a pinch of salt but we can check back this page again in 2015.
 

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