Tuesday, July 31, 2012

"July 12" - Transactions Update

July has been a rather busy period for my portfolio as it undergoes a restructuring process as I decide to sell my low dividend yield stocks which coincidentally had a run-up in July.

On my Singapore portfolio, I have sold my positions notably in Comfort, CMT and CMA, all of which had a run up of more than 10% from my purchase price. These are without a doubt good blue chip stocks to have in any portfolio but with a low dividend yield of below 4%, i decided to sell them.

With some cash on hand, I decided to purchase Neratel, Noble and AHT. I am most pleased with my purchase of Neratel as within a few days after my purchase, they went to announce their dividend of $0.04.

Noble has been performing rather disappointingly, which is one of the reason why I have purchased them albeit at a much slower rate than the others, thus allowing me to average them down should I see the need to.

There has been much discussion regarding Ascendas Hospitality Trust (AHT) IPO on whether the stock is attractively valued at $0.88. The opening day on Friday was disappointing, especially that we know the IPO was oversubscribed. With a dividend of almost 8%, I guess it'll be a good buffer for now.


Transaction
Date
Counters
No. of Lots
Price (S$)
Amount
Sell
03/07/2012
ComfortDelgro
3
1.560
S$4,680
Sell
03/07/2012
CapitalMallTrust
1
1.920
S$1,920
Sell
03/07/2012
FraserCenterPoint
1
1.700
S$1,700
Sell
11/07/2012
CapitalMallAsia
7
1.620
S$11,340
Buy
12/07/2012
Noble
3
1.110
S$3,330
Buy
16/07/2012
Neratel
10
0.430
S$4,300
Buy
27/07/2012
Ascendas Hospitality Trust
5
0.89
S$4,450
Buy
31/07/2012
Neratel
4
0.405
S$1,620


On my US portfolio, I have sold off all my positions in Halliburton. Though not much gains in terms of dollar value, it has went up about 10% from my purchase price.

Another reason why I decide to sell HAL is also because I still have an open position at Schlumberger (SLB), which I deemed much more attractive than HAL and could further spike up on any ECB or Fed news. Even if not, the price I bought at is attractively enough for me to hold on to the position for now.


Transaction
Date
Counters
No. of shares
Price (US$)
Amount
Buy
10/07/2012
China Petroleum & Chemical
2
83.20
US$166.40
Sell
25/07/2012
Halliburton (HAL)
50
31.50
US$1,575


Saturday, July 28, 2012

Goals vs Dreams - Setting Goals and Reaching Dreams

Everyone of us have our own goals and dreams. While the two may seems like complimenting each other, many people have mistaken goals for dreams and dreams for goals.

Goals are dreams with deadlines. A "goal" is something that you, yourself, have the power to make it happen... and it has to be realistically realistic and achievable. A "dream", on the other hand, should be something much bigger than your goal, albeit something similar to your ultimate goal. What your goals do consist is the little tiki-taki step to support your dreams. For instance, if your dream is to retire and live a financially freedom lifestyle by the age of 35, then you should set your goal to start saving and investing to the point that you feel it is sufficient to reach your dream.



And how is it important to have both goals and dreams in your life...To me, having goals and dreams in my life keep me in command and moving in times of difficult situations. It also gives me a sense of accomplishment whenever I completed each simple goal that I set for myself. Many times in my life I may get occasionally swayed and tempted into walking a different path in my life - these goals which I have set for myself do set me back on the right track. Until then, we should not rest with each and every day aiming to reach our goals and dreams with conviction.

"If you don't know where you are going. How can you expect to get there?" - Basil S. Walsh

Saturday, July 21, 2012

"The Power of Now..."

Presenting "The Power of Now" by Eckhart Tolle is a book that sheds light on the issue of understanding the depth of the present moment which is NOW rather than the future.

In the book, the author explains that humans tend to think about the future all the time, a concept of thinking of the thought and by doing so it creates a false sense of self. Whether it is in a form of problems or enjoyment, people tend to think of tomorrow rather than what it is today. It doesn't necessarily need to be a bad thing of course, but for some other things it may not be a good thing as well.

One such example is delaying what you are supposed to do today to tomorrow. Below are a table adapted from www.investmentmoats.com and one of my personal favorite of all time. This is an example of two investors of the same age but one (investor B) who started investing S$2000/month at the age of 19 and stopped at the age of 25 while the latter (investor A) started when he was 26 and keeps doing so until he is at the age of 65. As you can see from the table below, they ended up at the same net result. The rate of return used in the example below is 10% compounding and while a more conservative rate of return is perhaps more favorable, the idea is there - start early and start now.


Monday, July 16, 2012

Importance of constant communication with your children

Constant communication with your children is an essential process which involves engaging in a small conversation topics that keeps both you and your children updated on the daily lives' activities.



Some conversation can be very hard to begin with, especially those involving wealth and financial related. Some parents may think that their children are not matured enough to understand their financial situation. Some may not want their children to worry for them, thus choosing to keep quiet over it. Some parents may think that it is okay to delay the conversation till the next day or the next month....or the following year...

While everyone would agree that this can be a difficult conversation to start with, but when the time comes, you and your children will be glad you had it. Let's take for example an important conversation regarding the financial assets that you own and you want your children to know.

During this conversation, make sure that you clearly explain where all the necessary documents are (E.g The different types of your life insurance policy or the power of attorney/title deeds relating to the property that you own, etc). If you have multiple properties abroad, it is important to educate them so that if needed, your children can act on your behalf when it comes to handling your care and properties. Last but not least, it is important to make a will or at least communicate your thoughts to your children so that it will help to make sure your children act on your wishes, and don’t have to make uncomfortable decisions themselves when the time comes.

Sunday, July 15, 2012

Save your money for August!!!

A lot of the STI companies are going ex-dividend in the month of August, most notably Singtel, Comfort, ST Engineering, Boustead, SATS, REITS and many more - which means that it is probably a buying opportunity for dividend investor, whom has been waiting in the sidelines for a long time now due to many people searching for yield in the past few months resulting in the high price of the dividend stocks.

With many countries and companies recently reporting their Q2 GDP/Result, it seems evident that we are currently in a low growth environment and potentially facing a technical recession in Q3. Will we see another Sept/Oct low similar to last year?? If you are still waiting to enter the market, when is potentially good time to do so?
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