Stocks Discussion

I only have 2 methods + 1 pre-requisite: Method A: Buy the company for its dividends 👉🏻 use dividend yield method (Google the formula) 💡Determine the yield that you want also you to know the price that you’ll buy this company at Method B: Buy the company for its earnings/cash flow powers 👉🏻 use the discounted method (I.e. over a 10 year period, if I earn $10k each year, should I pay a price of $100k now?) 🔆Pre-requisite: Formulas have always been there. Strangest part is when investors ain’t clear of their intentions of buying the stock. Once I clear this huddle, it’ll a breeze.

With the Suntec Office and Retail Mall having several quarters of positive rental reversions, and the upcoming Penang road development being occupied in 2020, this REIT should see better days ahead.

It is worth investing with high liquidity, large number of assets, diversified tenants base and experienced Sponsor and Management. Downsides will be the high leverage ratio and potential rights issue for acquisitions due to its high leverage.

There is a comparison at https://blog.seedly.sg/spdr-sti-etf-vs-nikko-am-sti-etf/ to me there is no significant difference. just choose which ever is available from your provider/broker.

Can check here out on page 2! https://www.asx.com.au/asxpdf/20191206/pdf/44cc3814f5zz3p.pdf

Might as well just focus all your monies in the diversified portfolio Robo-advisors and set an acceptable asset allocation. STI index performance is paltry.

Consistency of dividends paid out over the years, any funky management decisions (case in point, OUE). As to when is a good time to buy, look at the spread between nav and current price. Find an entry point when the spread is around its lowest. Hope this helps.

Your current portfolio has a higher interest rate risk attached to it and are co-related to each other. It will be better to find 1 - 2 more industries to invest in.

Hi Leo! That is a fascinating question you asked. My take is that everyone can be a good investor with the right behaviour, but only a few can be superior. On the first point, I had discussed why investors lose money in the stock market in an article in my personal investing blog. The TL;DR version of my article is that investors succumb to greed and fear; and investors invest without knowing what they're investing in. On the second point, I'll use football as an analogy. If everyone trains hard, they likely can be a competent football player that can pass and tackle. But not everyone can be a Lionel Messi or Cristiano Ronaldo - they are innately talented. I also discussed a similar point in another article in my blog. The relevant excerpts are below: "The analytical edge is where you’re able to process information differently and come up with better insights compared to most. I believe, like Huber does, that this is still possible. Give two investors the exact same information about a company and it’s highly likely they will arrive at a different conclusion about its attractiveness as an investment opportunity. As a great example, we can look at Mastercard and how investors Chuck Akre and Mohnish Pabrai think about the credit card company. Akre runs the Akre Focus Fund, which has generated an impressive annual return of 16.8% from inception in August 2009 through to 30 September 2019. Over the same period, the S&P 500’s annual return was just 13.5%. Pabrai also has a fantastic long-term record. His fund’s annual return of 13.3% from 1999 to 30 June 2019 is nearly double that of the US market’s 7.0%. At the end of September 2019, Mastercard made up 10% of the Akre Focus Fund. So clearly, Akre thinks highly of the company. Pabrai, on the other hand, made it very clear in a recent interview that he wouldn’t touch Mastercard with a 10-feet barge pool. In the October 2019 edition of Columbia Business School’s investing newsletter, Graham and Doddsville, Pabrai said: “Is MasterCard a compounder? Yeah. But what’s the multiple? I can’t even look. Investing is not about buying great businesses, it’s about making great investments. A great compounder may not be a great investment.” The fact that two highly accomplished stock market investors can have wildly differing views on the same company means that it is possible for us to develop an analytical edge. But it is not easy to achieve. In fact, I have a hunch that the ability to consistently produce differentiated insight may be an innate talent that some investors possess and others don’t."

Hopefully, there is some synergy and cost may go down,e.g REITs manager fees, share's fee). Another benefit would be that they are able to go for bigger projects since they can have more debt. (REITs has a cap to their gearing ratio, so if there is a bigger base, there can be more debt). I think these would be the main benefits. Deal-wise, they seem to be paying fair value for it, rather than a premium. But hey, at least they are not undercutting it.