Here's My Story

In a previous post , I pointed out the absurd minimum amount of investment required to buy bonds compared to shares. I recently discovered that the minimum amount to purchase US government bonds and Singapore government bonds is just around USD 1,000 and SGD 1,000 respectively, the final amount dependent on the price and vested coupon. This is good news! US government bonds were rated AA+ while Singapore government bonds were rated AAA. Unsurprisingly, the yield of the former is higher than the latter. I bought some of the former.

You don’t need to buy at the perfect moment to build lasting wealth. What matters more is choosing strong companies, committing to a plan, and sticking with it, even when markets feel uncertain. Because over time, it’s not timing the market that makes the difference. It’s time in the market that does.  - Joanna Sng, Co-Founder, The Smart Investor 

Generally you'll want to invest in a portfolio that generates a rate of return greater than inflation rate. Let's called this the desired rate. Investing wholly in bonds generally would not be sufficient to do that. Those who can invest a lot in riskier assets are those who are wealthy and yet ironically it's sufficient for them to jus invest solely in safer assets. For example, someone with RM 10 million placed in, say, fixed deposite with interest rate of 3% p.a. would earn interest of RM 300k a year, which translates into RM 25k each month and that is more than enough to live very comfortably. Those who are not rich would understandably be worried about losing their capital and shy away from riskier assets but putting their savings into fixed deposit is not ideal either it doesn't give the desired rate. Here's another irony: I came accross bond issued by the Victorian government (an Australian state) with coupon rate exceeding 5% p.a., which easily beat Malaysia ...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (2 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies. The overall dividend yield on cost weighted by invested amount is 5.0% (vs 5.1% in previous review), excluding the 2 share counters mentioned above. There are 16 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): AEM (1)  Capland Ascott (1) CapitaLandInvest (1) ComfortDelGro (5) Delfi (1) Frasers L&C Tr (3) IFAST (6) Keppel DC REIT (3) Mapletree Log Tr (3) Micro-Mechanics (1) Parkway Life Reit (5) Raffles Medical (3) SGX (5) Sheng Siong (3) Singtel (3) UOB (6) (at 4.9%, it's very close to 5%) UOB's dividend yield of 4.9% is good since it's a bank. iFAST's low dividend yield is more than compensated by its huge unrealised capital gain but I might pare it down further....

These are the shares that I initiated position in and sold since the last update about year ago : Initiated in: (1) Credit Bureau Asia Ltd (as recommended by The Smart Investor) " Credit Bureau Asia (CBA) is a leading credit and risk information solutions provider in Southeast Asia. The group provides credit and risk information services to a wide variety of clients such as financial institutions (FI), multinational corporations, government bodies, public agencies, local enterprises, and individuals. " Reasons to buy: A dominant market leader in the credit information services sector Network effect competitive moat Solid financials with growth in revenue, net profit and dividends Catalysts for continued growth Potential growth in China and other countries Risks: Economic downturn Non-renewal of contract with Dun & Bradstree Uneven track record in expansion (2) The Hour Glass Ltd (as recommended by The Smart Investor) I bought some once The Smart Investor moved it from sp...

About 6 months after purchase , the condo unit was renovated, partially furnished (the idea, as presented by my sister, was that some tenants may already have their own furniture) and ready to be rented out. So, I contacted the agent to commence looking for tenant. Less than 2 weeks later, I happened to be in Butterworth to meet the agent who brought a family of three to view the unit. It was quite clear that it was the wife who wanted to move out from their then current rented place: Husband told me that his wife wanted to move to a condo. He asked both his wife and daughter whether they liked the unit or not. The viewing went well. The mother/wife was impressed with both the photos of the unit and the unit itself. In fact, among the preliminary questions that the agent asked (I suspect it was part of a standard form of enquiry), "What are your requirements for the unit?" Their response was "LIKE THE PICTURE". Both mother and daughter liked the place. There was no...

So the purchase of the condo unit is very nearly over. The last step is to receive the title deed from the lawyer after its transfer of ownership is registered by land office. I, together with my mum, sister and hubby, inspected the unit a final time and received the keys from the agent. Earlier, I was looking up on how to activate electricity and water supply and was exploring the possibility of doing it online. However, the lawyer has passed two copies of the SPA (Sales & Purchase Agreement), via the agent, to me for this purpose. Also, my sister said that from her experience, the process was quick at PBA's office (for water) but took a little longer at TNB's office (electricity). Since I hadn't yet figure out the online process, I decided to do it at their offices. In case there was lack of parking space, I asked Ban to drive me. First, I had to photocopy my IC, which I did at a photoshop. I also got another copy of the SPA as I anticipated that it would be required ...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (2 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies. The overall dividend yield on cost weighted by invested amount is 5.1% (vs 4.9% in previous review), excluding the 2 share counters mentioned above. There are 15 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): BOUSTEAD (6) (at 4.9%, it's very close to 5%) CAPLAND INTCOM T (3) CL ASCENDAS REIT (1) COMFORTDELGRO (4) FRASERS L&C TR (2) IFAST (5) KEPPEL DC REIT (2) MAPLETREE LOG TR (2) MPLTR PAN TR (2) PARKWAYLIFE REIT (4) RAFFLES MEDICAL (2) SGX (4) SHENG SIONG (2) SINGTEL (2) UOB (6) The UOB's dividend yield of 4.8% is more than good enough for me. iFAST's low dividend yield is more than compensated by its huge unrealised capital gain. Here is the average cost of each s...

These are the shares that I initiated position in and sold since the last update about year ago :   Initiated in: (1) Delfi (as recommended by The Smart Investor) " Delfi manufactures, markets and distributes consumer chocolates and snacks to more than 17 countries with its core markets being  Indonesia, Malaysia,  and the Philippines." Reasons to buy: A consumer giant in Indonesia Going asset-light Growing profits and dividends New product releases are a catalyst for future growth Risks: Stiff competition Depreciation of regional currencies Food safety issues and hygiene Legal claims from Barry Callebaut Exited: (1) SIA Engineering Dividend yield less than 5% for past 5 years. (2) iFAST Pared down because current value is disproportionately large in the portfolio. (3) VICOM Smart Investor recommends selling it: the company decided to pause giving out dividends. As at 31st March 2024, I have investment in 28 companies (*these companies' source of business are only ...

So, the title of the unit I'm purchasing was held not by me or the seller: it was the developer. For some reasons, despite having received the strata title nearly a year ago, they haven't transferred it to the current (beneficial) owner. Hence, there are additional steps: The developer had to confirm that the seller is the current beneficial owner of the unit. The developer agreed to transfer the strata title directly to me, rather transfer it to the seller who the transfer to me.  So, aside from the usual Sale & Purchase Agreement ("SPA"), there are additional documents: for developer to sign to effect to above while both the seller and I sign to indemnify the developer for any loss arising from them signing those documents. Normally the 3-month timer where this transaction is due to be completed starts upon signing the SPA by both parties but in this case, it also conditioned upon signing of the relevant documents by the developer. The SPA outlines the conseque...

In this article by The Smart Investor, this sentence caught my eyes: " The lender’s total loan provision stood at S$151 million for 3Q 2023, up slightly from the S$135 million a year ago. " That's an increase of nearly 12%. Definitely not "slightly"! Disappointing for a team that analysed numbers all the time.

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (2 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies.  The overall dividend yield on cost weighted by invested amount is 4.9% (vs 4.8% in previous review), excluding the 2 share counters mentioned above. There are 16 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): BOUSTEAD (5) (at 4.9%, it's very close to 5%) CAPLAND INTCOM T (2) COMFORTDELGRO (3) FRASERS L&C TR (1) IFAST (4) KEPPEL DC REIT (1) MAPLETREE LOG TR (1) MPLTR PAN TR (1) OCBC BANK (3) PARKWAYLIFE REIT (3) RAFFLES MEDICAL (1) SGX (3) SHENG SIONG (1) SIA ENGINEERING (5) SINGTEL (1) (at 4.9%, it's very close to 5%) UOB (5) The banks' dividend yields of 4+% are good enough for me, whereas SIA Engineering is on my watchlist to sell (3.7%). Here is the average co...

These are the shares that I initiated position in and sell since the last update about year ago :   Initiated in: (1) AEM (as recommended by The Smart Investor) " AEM is known in the industry as a leader in test innovation by providing comprehensive semiconductor and electronics test solutions. Customers receive customised, application-specific solutions tailored to their needs.  The group has a global presence..." Reasons to buy: A leader in Test 2.0 solutions Industry megatrends and increasing device complexity Growth in profitability and free cash flow Savvy acquisitions and partnerships   Exited: (1) Boustead Project Accepted Boustead Singapore's voluntary unconditional offer of takeover. I was afraid that it might be delisted with me being a minority shareholder. The fact that I'm also Boustead Singapore's shareholder meant this decision was easy to make. (2) Keppel Corp Dividend yield less than 4% for past 6 years. (3) Nordic Been on the "first to sell...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (7 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies.  The overall dividend yield on cost weighted by invested amount is 4.8%, excluding the 7 share counters mentioned above.   There are 15 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): Boustead (4) CapLand Int (1) ComfortDelgro (2) iFAST (3) Keppel Corp (6) Mapletree Com (2) Nordic (3) OCBC (2) Parkway (2) SATS (7) SGX (2) SIA Engineering (4) SG O&G (2) UOB (4) SingPost is excluded as I'm maintaining minimal exposure to this counter as speculative investment. I should really sell Keppel Corp and SATS, realised the losses and reinvest the proceeds into better companies. Six to seven years of waiting is long enough. Here is the average cost of each share counter compared to ...

Can't believe Covid-19 is still around a year later . I thought it would be gone by June last year @@   Initiated position in (all recommended by The Smart Investor):   (1) Ascendas REIT " ...the largest listed business space and industrial REIT on the Singapore Stock Exchange. ...The REIT has properties in four main regions: Singapore, Australia, the US and the UK/Europe. " Reasons to buy: Diversified portfolio of properties and tenants Long-term leases with favourable characteristics A long track record of growth Active capital recycling, redevelopments and AEI Pipeline of properties from sponsor   (2) Frasers Logistics & Commercial Trust " Frasers Logistics & Commercial Trust (SGX: BUOU), or FLCT, is a REIT that owns 103 industrial and commercial properties worth around S$6.8 billion as of 30 June 2021.   These properties are diversified across five countries: Singapore, Germany, the Netherlands, Australia and the UK. " Reasons to buy: Diversified por...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (2 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies. The overall dividend yield on cost weighted by invested amount is 4.6%, excluding the 2 share counters mentioned above.   There are 18 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): Boustead (3) Boustead Project (1) Capitaland (2) ComfortDelgro (1)  HRnet (1) iFAST (2) Keppel Corp (5) Mapletree Com (1) Nordic (2) OCBC (1) Parkway (1) SATS (6) SBS Transit (1) SGX (1) SIA Engineering (3) Sing Shipping (6) SG O&G (1) UOB (3) SPH and SingPost are excluded. I'm maintaining minimal exposure to these counters as speculative investment. Sing Shipping's historical dividend yield has consistently been just above 4%. The question is whether I want to continue to hold on to such sha...

We're still in a pandemic crisis a year on . This is the latest yearly update: Initiated position in: (1) Micro-Mechanics Recommended by The Smart Investor. " Micro-mechanics is primarily focused on the semiconductor industry, manufacturing consumable tools and parts for the assembly and testing of semiconductors. It also provides contract manufacturing of precision parts and tools for semiconductor wafer fabrication and other high-technology industries." Reason for inclusion, as articulated by the investment club: A high proportion of recurring revenue Diversified customer base Strong financial track record Positive tailwinds (2) ParkwayLife REIT Recommended by The Smart Investor. "ParkwayLife REIT (SGX: C2PU) has 53 healthcare-focused properties in Singapore and Japan, along with strata-titled lots at Gleneagles Intan Medical Centre, Malaysia. In Singapore, the REIT houses three private hospitals, namely Mount Elizabeth Hospital, Gleneagles Hospital, and Parkw...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (8 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies. The overall dividend yield on cost weighted by invested amount is 5.2%, excluding the 8 share counters mentioned above. There are 10 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): Boustead (2) Capitaland (1) iFast (1) Keppel Corp (4) Nordic (1) SATS (5) SIA Engineering (2) Sing Shipping (5) Top Glove (1) UOB (2) SPH and SingPost are excluded. I'm maintaining minimal exposure to these counters as speculative investment. Sing Shipping's historical dividend yield for the past 11 years has consistently been at 4.35%, which is just a tad above my current yield on cost of 4.2%. So I'll be keeping this counter. Here is the average cost of each share c...

This yearly update was done while Malaysia was under partial lockdown. Initiated position in: (1) Boustead Project From their website: " We are a leading real estate solutions provider in Singapore, with core engineering expertise in the design-and-build and development of smart eco-sustainable business park and industrial developments. " " To date, we have constructed and developed more than 3,000,000 square metres of real estate regionally in Singapore, China, Malaysia and Vietnam. " Subsidiary of Boustead Singapore Limited. (2) HRnet Group From The Smart Investor (set up by people behind Motley Fool SG): " HRnet Group is in the business of helping other companies hire people. The HR recruitment firm has two main business segments: Professional recruitment services where it owns brands such as HRnetOne, PeopleSearch, SearchAsia, HRnetRimbun and REForce. Flexible staffing solutions with its Recruit Express, RecruitFirst and Career Person...

Here are the average dividend yields on cost for shares that have paid out dividends: Share counters (7 of them) with no dividend yields just means that I have yet to receive at least a year's worth of dividends from these companies. The overall dividend yield on cost weighted by invested amount is 5.5%, excluding the 7 share counters mentioned above. There are 10 share counters with dividend yield (on cost) less than 5% (number of consecutive years of this low yield in bracket): Boustead (1) Keppel Corp (3) Kingsmen (5) SATS (4) SPH (3) ST Eng (5) Sembcorp Ind (5) Silverlake (3) Sing Shipping (4) UOB (1) It's probably time time to sell Kingsmen and Sembcorp Ind. Except for bank's shares (4% is good enough), I need all other shares to provide dividend yield of at least 5%. Here is the average cost of each share counter compared to its then prevailing price as at 9 March 2019: Share that had increased significantly is Venture (53%) and th...