T.U.B Investing

Firstly, I like to say my thanks again to SGX for inviting me to be one of the panel speakers along with so many other gurus! It was a great talk and I learnt a lot from the other speakers as well! I hope my answers for the many questions have been satisfactory to the participants as well! As I look at the pigeonhole website (participants were able to post questions on this website) , I realised there is 1 particular question relating to my scorecard method. Therefore, I think I should provide an answer to the question. Hopefully the people that posted this question and voted for this question is able to read this answer! How can the tub scorecard capture and account for market sentiments and industry outlook. Also, even if it’s an undervalued stock, how can then the value be realized if it’s out of favour? Ans: Firstly my scorecard capture and account for market sentiments and industry outlook via the changes in share price. This is because the scorecard report ...

Before we go into the actual discussion, I like to inform my readers that I am very privileged to be invited to be one of the speakers for the panel for "My First Stock Carnival Week - Different Investing Styles and Finding Your Ways" organised by SGX. I will like to thank Shanison of IN and SG Thumbtack Investor for the recommendation. Here is the link to register for the event and its FREE! I hope to see you there and do "direct" all the question you have for me, I will try my best to answer! So back to main topic of today - Dividend Yield. Recently while I was engage in some analysis, I realised dividend yield played a lesser role in my analysis currently as compared to my previous analysis.  Thus, it makes me wonder if dividend yield should be an important factor in our analysis? For example, if a company makes increasing revenue and net profit, but did not increase the dividend, should retail investors be angry with the firm? As mu...

If you have read about the previous post about my Ex, I am updating here that she just announced her full year results! And I was right! The dividend has decrease from 33 cents to 18 cents! If the retailer investor is looking for 5% dividend yield, then he will be expecting the share price to fall to $3.60! But I have my doubt that the share price will drop till so much! If you read about the news article , there are a lot of hidden messages. Are you able to catch them? For existing retailer investor, I advise you to ignore the news report and spent some time to look at their latest financials results. Hopefully you will be able to pick out their "important" numbers. There are 2 "firsts" over the last 3 years in the most ignored portion of the financial results! If you picked them out, that will be great! Next, for existing retailer investor, it is also important to remember "why did you invest in Bukit Sembawang Estates Ltd"? Once you rem...

Recently for my Big Idea 1 and Big Idea 3 , I have been talking about discovering "Moats" of the companies. But I am wonder if those information that I provided are really "moats"of a company? Or am I using this term too loosely? As per Investopedia   (do read this page for a much deeper understanding) , an economic moat is a competitive advantage that one company has over other companies in the same industry; this term was coined by Warren Buffett, a renowned investor and executive at Berkshire Hathaway. The wider the moat, the larger and more sustainable the competitive advantage of a firm. By having a well-known brand name, pricing power and a large portion of market demand, a company with a wide moat possesses characteristics that act as barriers against other companies. The website further explains that economic moat describes a company's competitive advantage derived as a result of various business tactics that allow it to earn above-average profits...

After writing about Big Idea 1 and Big Idea 2 , I will talking about the next Big Idea. Big Idea 3 is actually quite a new company in my portfolio. I have only held it for about 1 month. It was also never mention in any of my portfolio listing. Upon checking, I realize that I have only written about this counter in a 2015 post. Reasons Why This Counter Qualifies as a "Big Idea" 1. Discovering Its Moat I must confess that this company do not really have a significant moat. In fact, its industry have a low barrier of entry. However, as this company sells a "luxury niche product", it creates an invisible barrier of entry.  This is because consumers will not just go to any shop to buy this "product". They tend to choose renowned shops that they TRUST to buy this "product". Since it is also a "luxury niche product", not anyone can just straight away open a new shop to sell this "product". In my opinion, this compa...

Sorry for the delay in writing, but I just came back from a trip in Beijing. I was expecting a culture shock but it turn out better than expected. Throughout the trip, I had learnt many interesting aspect of the city, such as the following: 1. Spitting on the ground is common. 2. Seem hard to get any taxi and train stations are quite a long walk away (Or maybe Singaporeans are just too pampered?) . End up becoming the "cabbage head" for other transport services. 3. You need to walk a lot, especially in the landmarks. Do need to look out for any trams. 4. Taobao has killed cheap clothing in the city. Shopping became quite boring. Only international/big brands that are not located within Taobao seem to have shops around. 5. High living standards. The food seem to cost as much as those in Singapore. 6. But it is still the ancient city with many landmarks not to be missed. 7. Security is a top priority in the city. Even train stations have checks. There are also a...

Update on 11 May 2018: Sorry for publishing the draft copy. Amended the draft via the Blogger app and I went overseas to publish them, but end up the draft copy got published instead.  Before I start talking about my Big Idea 2, here are some words of wisdom I had with A after he read about my previous post . The conversation are broken down into sessions which I deem are words of wisdom and even if you knew them, it can act as a reminder. Section 1: Diversification "The question is about diversification. I have a dual answer to that. If you are not a professional investor, if your goal is not to manage money to earn a significantly better return than the world, then I believe in extreme diversification. I believe 98% - 99% who invest should extensively diversify and not trade, so that leads them to an index fund type of decision with very low costs. All they are going to do is own part of America and they have made a decision that owning a part of America is worthwhile....

I have stated numerous times that I wanted to consolidate/reduce my positions in my blog. But it has been in vain. However, a chat with Simple Investor SG recently made me understand the real power of a concentrated portfolio ( Read his last year review here). If you knew about his current returns in 2018, you will get a reality hit like me. Thus, I decided to focus and cut down from 26 counters at last count  to a current 20 counters. I foresee myself reducing further after World Cup and Full Year Results releases in May/June. Nevertheless, I have also decided that I will focus about up to 50% (could rise to 60% or more) of the portfolio on a group of 6 to 8 counters (not yet decided fully on the exact numbers) ,   which I will rename them as "Big Idea". These counters are meant to be  potentially  vested till the end of the year (unless it rises too fast) . Image from Freepik.com Big Idea 1 will be the company that I stated in this  previous po...