Starfish SRS Investment Criteria

I am going to share my investment criteria for putting the eggs into the SRS basket. Only time will tell if the eggs are golden or rotten.

Let me run thru my portfolio again and why I bought them.

1. Raffles Education. Wanted to buy a "growth" company but the company wasn't doing well fundamentally with its school in China. Would have failed my yield criteria back then.

2. Starhub - stable telco company with strong casflows. Yield of > 8% at the time of purchase.

3. SPH - monopolistic media industry. Good FA and cash flow with yield > 5%.

4. Starhill (retail), Suntec (office), Cache Logistics (industrial) with Yields ranging from 6-8 %.

5. China Fish. Never really like Chinese related counters, but this company stands out with its dividends of 5% (at least it is paying dividends each year) and its single digit PE ratio of 6.5x. I will sell if it cross above $1, otherwise just enjoy some yield for holding this stock.

SOME INVESTMENT CRITERIA TO CONSIDER WHEN COLLECTING THE EGGS:

1. Businesses that are easy to understand.

2. Companies with strong cashflows and paying dividend yield of >5% each year. (ideally quarterly basis for Reits and semi annually for stocks).

3. Companies with products or services that I like.

4. Well managed with strong corporate governance.

5. Preferably with some analysts coverage and "buy" ratings.

6. If the yield criteria is not met, there must be other compelling reasons such as a blue chip company, a strong growth company, low valuations etc. The reasons must be compelling enough.

7. Companies which I can invest for a long time.