Billy Ko
President - Investment Club at Singapore Institute Of Technology
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Top Contributor (Apr)

Level 5. Genius
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Advocate of financial literacy among youths
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President - Investment Club at Singapore Institute Of Technology
Top Contributor
Top Contributor
(Apr)
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  • Asked by Anonymous

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 1d ago
    Hi! The idea of using POSB Invest Saver (a form of Regular Share Savings Plan) which utilises the concept of Dollar Cost Averaging helps to accommodate to the dips in the market by purchasing a larger amount of STI ETF and when the reverse comes, it'll purchase less. Henceforth, this is a long-term tool that helps you tide by the volatility of the market. Furthermore, given how you're invested in STI ETF - which itself is considered less risky / volatile as compared to individual stocks, I think you're in safe hands and will recommend you to hold it for long as what others have mentioned too
  • Asked by Kuriakin J. Zeng

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2d ago
    Low Flats / Few Units When developers redevelop properties / acquire and rebuild its of great opportunity to increase the number of units / build higher blocks. Therefore, with PLAB shifting and the height restrictions being lifted from the North-East / East area, I foresee enblocks happening there. Location With the above reasoning coupled with good location i.e. near upcoming malls / MRT stations, it'd be a motivation factor for transactions to happen Past enblocs Mandarin Garden's developer has twiced tried to enbloc the condo but unfortunately the tenants did not agree to it. https://www.straitstimes.com/business/collective-sale-mandarin-gardens-fails-to-get-green-light There are reasons cited in the article too! You might want to check the article out :)
  • Asked by Rasyad .

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2d ago
    Hi Rasyad I attended the REITs Symposium organised by Shareinvestor over the weekend which featured 20 over REITs companies setting up booths with their Investor Relations and higher management there to answer questions of investors. The link below contains metrics in considering REITs which is also printed in one of the collaterals handed out. https://einvesthub.btinvest.com.sg/investing-trading/2019/05/08/metrics-in-evaluating-a-reit/ So a couple of other metrics which I overheard others asking were Loans When are the loans due? If they are due in coming years, REITs sometimes would conduct rights issue (issue more shares at a discount to the share price) to raise money to repay their debt - this will in turn dillute the shares in the market (more shares = less dividend / share) which will push down the share price Future acquisitions / Sponsors Sponsors are the main companies that own this REIT i.e. Capitaland Commercial Trust's sponsor = Capitaland. Frasers Centrepoint Trust sponsor = Frasers Property So what does this tell you? The strength of sponsors is also crucial because it can help to boost up REIT portfolios. The soon-to-be opened Funan which has had quite huge hypes is under Capitaland Mall Trust. The recently Jewel is owned by Capitaland but has yet to be included into CMT yet so in the future there could be possibility of it being included in CMT's portfolio if the performance of the properties in the portfolio aren't very charming (Hence this is also why CMT is on my watchlist) Cyclical Sectors Interestingly enough, REITs also have cycles and this can be more clearly seen in Hospitality REITs because the hospitality industry tend to fair better on even years (2016, 2018) due to events such as Air Show etc. So this year being an odd year, would Singapore still have enough to shine. Occupancy Rates An empty space is revenue not gained. Therefore this is also another metric that you may wish to seek when you evaluate a REIT. Funan has 98% of it's office space sold and with the inclusion of the Retail segment, the entire property is set to open with 90% occupancy and with the new concept shops, it does offer a different experience. I can't wait to see how will this affect the share price. WALE - Weighted Average Lease Expiry This shows how long their average tenants tease is going to expire. The sooner it is, means that they would have to find new tenants. And aside from all these, you have your: Gearing Ratio (how much of the company is funded by debt - interest rates rising environment = cash flow goes to repaying interest = lesser payouts to shareholders) Net Asset Value (how much is the entire asset of the company being worth right now. Usually high NAV companies have a higher chance of selling of their properties due to the undervalueness) Geographical Location (Currency fluctuations, loss in FX conversions, prone to natural disasters, initiatives / regulations by government) This is a couple that I can think of right now. If there's anymore, I'll just add on accordingly :) Hope you're clearer about REITs now! And echoing Thaddeus, do tune in to SeedlyTV live and you can post your questions too, the guest speaker is a real expert on REITs
  • Asked by Anonymous

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2d ago
    REITs can be your first asset class in your investing journey. As what I've shared in other posts, I first started out with REITs 7 years ago when I was 18 and since I didn't require the money, I just parked it there collecting dividends. One don't usually dabble in REITs for capital appreciation hence I'd take it as an investment tool rather stocks (which is more suited to shorter term trading). As what Hariz has pointed out, a low interest rate market would benefit REIT as they borrow close to 40% loans to fund their business. Therefore a higher interest rate would erode shareholder returns.
  • Asked by Vincent Tan

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
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    Top Contributor (Apr)

    Level 5. Genius
    Answered 2d ago
    My favourite book has to be Gone Fishing with Buffet. I enjoy how layman the author explains certain concepts i.e. to showcase recession-proof / defensive stocks, he described the boy in the book to visit the shopping mall during a recession and just observe what brands are being used / what store brands have customers etc.
  • Asked by Anonymous

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 3d ago
    The reason for the stock price is due to a 2-for-1 stock split by the company - https://www.cnbc.com/id/48134915 It is considerably a defensive stock given how it falls under consumer staples. That being said, it's Gross Profit has been decreasing over the years. Fortunately, cost control has been good with the company lowering it's expenses more than the decrease in profit, hence net income is still considerably stable. Coke's margins are to the left whereas industry average is to the right. Coke can be seen performing significantly better than its peers in the industry. The latest Q4 results seems rather gloomy with revenue falling 4%. leading to the stock falling by $4+ (~8%) https://www.cnbc.com/2019/02/14/coca-cola-earnings-q4-2018.html But if you see the advertising and publicity of coke - through ads + campaigns + Warren Buffett during his AGM (and how he owns this stock also).
  • Asked by Cindy Tan

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2w ago
    Hi Cindy! I think it really depends on the maturity of the estates and locality of the BTO as well. Tampines, Toa Payoh ($530k) could cost 100% more than a BTO at Sengkang / Punggol ($280k) Not sure if this is what you're looking for, but if you simply want a bare BTO from HDB, then you may locate the past launched prices here -- https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/bto-sbf
  • Asked by Jiaqi Ng

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2w ago
    Hi Jiaqi! Preserving Current Capital Aside from what Hariz and Grabriel suggested, another investment vehicles commonly utilised by beginners would be RSP - Regular Savings Plan . You simply pay a fixed amount every month (min. $100) to invest in ETFs or Indexes. This practice is good as it utilises the theory of Dollar-Cost Averaging, allowing one to diligently invest in the markets every month regardless of the price of the fund. You can get started through the 3 local banks in Singapore and brokers as well. Lump-sum investing However, if you prefer putting in a one-time investment kindda strategy, you could find stocks that are recession-proof i.e. consumer discretionary / monopolistic stocks such as the likes of Sheng Siong. Granted the price does not fluctuate much but at the very least you can be 80% assured that you capital would still be somewhat there as oppsoed to other industries. REITs also provide a good source of recurring income. I've invested in REITs for 7 years now and the dividends alone have almost covered my capital vested into the company. Hope it helps!
  • Asked by John Doe

    Billy Ko
    Billy Ko, President - Investment Club at Singapore Institute Of Technology
    Top Contributor

    Top Contributor (Apr)

    Level 5. Genius
    Answered 2w ago
    Hi there! Price fluctuation Profiting You can head on to http://www.sgs.gov.sg/savingsbonds/About-SSB/Risks.aspx for more info but here's the answer specific to your question: "However, you will always get your principal back when investing in Savings Bonds. Once a Savings Bond is issued, interest rate changes will have no effect on the bond’s value. " Therefore, bond prices will remain as it is throughout your entire investment period. But do note there's a $2 transaction fee to whenever each transaction is performed. Maturity Period This bond is a 10-year bond with a step-up interest rate at some years into your investment. If you hold the entire 10 years, it'd be on average 2.13% simple interest for the entire 10-years vested. Hope it answers your question :)
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