As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

Welcome to Ministry of Wealth!

This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

It is here where I share with you how I did it! FREE Education in stock market wisdom.

Think Investing as Tug of War - Read more? Click and scroll down



Important Notice and Attention: If you are looking for such ideas; here is the wrong blog to visit.

Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Monday, 31 December 2012

Singapore rigbuilders set for strong 2013: analysts

SINGAPORE : Singapore rigbuilders Keppel Offshore & Marine (O&M) and Sembcorp Marine have secured a slew of contracts this year.

Analysts have said the two companies could see another strong set of orders in 2013, driven by robust demand for ultra-deepwater rigs.

Keppel O&M booked about US$8 billion worth of contracts this year - its second highest on record.

This follows a record S$10 billion worth of contracts which Keppel O&M secured in 2011.

Keppel O&M said over 65 per cent (US$5.36 billion) of the orders in 2012 came from Brazil.

Looking ahead, Keppel said it is developing a new product that will enable drilling in deeper and harsher environments.
Tong Chong Heong, chief executive officer of Keppel Offshore & Marine, said: "There are also new frontiers, new areas where more rigs are required, and with the emergence of areas such as the Caspian, Black Sea, Mexico and many parts of Southeast Asia, demand for rigs has gone up."

Keppel O&M along with Sembcorp Marine are big players in the offshore rig building industry, accounting for some 70 per cent of the global market share for jack-up rigs.

Analysts said the growing demand for ultra-deepwater drilling vessels and equipment will continue to support business growth.

Low Pei Han, investment analyst at OCBC Investment Research, said: "O&M companies have seen very good order books, Keppel and Sembcorp Marine each secured about 10 billion dollars worth of orders this year.

"About 50 per cent of each came from Sete Brasil and Petrobras, which is what the market had more or less anticipated. Going into 2013, we expect Sete Brasil and Petrobras orders to remain about the same level as this year, which will be about S$4 billion to S$5 billion."

But the Singapore rigbuilders are likely to face stiffer competition from Korean and Chinese companies.

Analysts said some Chinese shipbuilders are offering similar products at a 20 per cent discount.

For example, earlier this month, Yangzijiang secured a US$170 million order for a jack-up rig, while a similar contract at Keppel O&M cost US$205 million.
According to the China Association of the National Shipbuilding Industry, China hopes to capture 20 per cent of the global market for rigs, production facilities and offshore products by 2015.

But some analysts said Singapore rig builders are not likely to lose their competitive edge anytime soon.

Janice Chua, head of equity research (Singapore) at DBS Vickers, said: "It is a tall order for the Chinese yards to try and get the global market share for rigs.

"In order for the Chinese yards to have a bigger market share globally, what is more important is the soft skills of project management, engineering, design expertise, as well as ensuring that they can deliver the projects on time and according to the clients specification. That will take at least three years to build for any of these offshore structures."

Increasing shale gas production in the US could also present a new competitive landscape for rigbuilders.
Jason Waldie, associate director at Douglas Westwood, said: "The wild card here is whether the US is going to export, or how much the US is going to export. Certainly I know the US government is planning to export a very good share of its gas to the market. Now what impact does that have for the yards?"

Analysts expect the demand for rigs to come under some pressure should the US decide to export a substantial amount of shale gas.
- CNA/ms

Do you still believe in financial experts or Gurus forecast and calls? (2012)



Update on accuracy for 2012 Guru Forecast


At 31 Dec 12 market closing price:


Kep Corp: $10.27 (This one is Createwealth8888's all time favourite stock)
$11.00, +7.2%


M1: $2.55
$2.71, +6.3%


ComfortDelgro: $1.445
$1.78, +23.2%
Q&M: $0.84
$0.35,  - 58.3%

Ezion: $0.71
$1.69,  +138%

Super: $1.39
$2.34, +134%

If you have followed Guru from Share Investment, you huat ah in 2012!!!


Next in 2013


Will Createwealth8888 huat in 2013???

Createwealth8888 also has the following stocks:

At 31 Dec 12, market closing price
  1. Biosensors  : $1.205
  2. DBS: $14.84
  3. Keppel Corp: $11.00
OCBC Research chun bo???

Read? Do you still believe in financial experts or Gurus forecast and calls? (2013)

Fisher's Eight Investment Principles


1. Buy companies that have disciplined plans for achieving dramatic long-range profit growth and have inherent quailities making it difficult for newcomers to share in that growth.

2. Buy companies when they are out of favour.

3. Hold a stock until either (a) there has been a fundamentall change in its nature (e.g., big management changes), or (b) it has grown to a point where it no longer will be growing faster than economy as a whole.

4. De-emphasize the importance of dividends. (CW8888: We should be looking at both dividend and dividend payout ratio at the same time, and not just based on dividend alone. High dividend payout ratio will return high dividend yield. It is expected and nothing extraordinary about it. This is how market works in the long-run)

5. Recognise that making some mistakes is an inherent cost of investment. Taking small profits in good investments and letting losses grow in bad ones is a sign of abominable investment judgement.

6. Accept the fact that only a relatively small number of companies are tryuly outstanding. Therefore, concentrate your funds in the most desirable opportunities. Any holding of over twenty stocks is  a sign of a financial incompetence.

7. Never accept blindly whatever may be the dominant current opinion in the financial community. Nor should you reject the prevailing view just for the sake of being contrary.

8. Understand that success greatly depends on a combination of hard, intelligence, and honesty.

Sunday, 30 December 2012

Happy 2013 New Year to all CW8888's blog visitors and readers!



Happy New Year to you!
 
 


What is your investment plan for 2013?

How can you up your investing skills and knowledge?


"A man only learns in two ways, one by reading, and the other by association with smarter people." - Will Roger.




 

Occam's Razor in TA and FA? (2)



Read? Occam's Razor in TA and FA?

What is in FA?

FIXED Numbers!!!

The financial numbers and ratios that are presented at quarterly financial reports or annual report are fixed. You as investors cannot "suka suka" change them.

You analyse these numbers and ratios and decide whether you are still comfortable and happy with the reported numbers. Value investing is the way to do it for FA.


It is You See What You See.


What is in TA?

Too many School of Thoughts with too many adjustable parameters.

Every TA school claims success, BTW, who lose their money in market, then???

With so many adjustable parameters for TA indicatorsit is You See What You LIKE to See by adjusting these parameters to tell your own story and convince yourself that you are right. Each telling their own story. No???

Bluffing yourself or what???


 







 
 

Donkey, Dog, and Monkey years!


Just For Laugh ....



The nice story that I read ...


After the Earth was created, God in His wisdom decided to grant all creatures a thirty-year life span.

But the Donkey, realising how much work that would mean, was horrified and immediately negotiated an eighteen-year reduction.
 





 


















The Dog was none too happy either, fearing it would be useless and unwanted in old age, kick from pillar to post. So God agreed to reduce its life span as well.





 
 
Then the Monkey also pleaded for a reduction and God agreed to remove ten years from its busy and precious life.
 
 
 
 
 
 
 
But the Humans were shocked to have given so little time, especially as they considered themselves to be by far the most superior part of creation. So God gave them the donkey's eighteen years. But still the Humans were dissatisfied, so God gave them the extra years taken from the Dog. And still they complained, so God added the Monkey's unwanted ten years too.
 
And that's why Human Beings live in health and happiness for the first twenty or so years of their long lives - for that's their natural span. But, after that the serious work starts, and they carry the heavy burden of working from dawn to dusk to pay for their home, to bring up their children, and to service the pension that's necessary to sustain them through so many years of life. Slaves to their masters, they'll put up with almost anything to get through their Donkey years.
 
 
After that come the years of the Dog when they sit by the fireside, grumbling and grousing, irritated by their offspring, and scratching at itches.
 
 
Finally, they enter their Monkey years (Dementia) where, as everyone knows, they do whatever the hell they like.
 
 
 
 
 
 
 
 

 
 
 

Saturday, 29 December 2012

My War Room (7) - The Lost Years



Read? My War Room (6) - The Lost Years


Uncle8888 has learnt and became wiser not to chase the Last Mile.

Read? Chasing the last $100K (last mile) and may fall hard!



Significant changes in Mindset in 2007/2008 and 2011/2012. Spot the difference!














Full Year 2012 Investment Performance Report



Read? Q3 2012 Investment Performance Report

A goal-based investing approach


I use a goal-based investing approach by setting a 10-year goals target to achieve for each year from 2012 to 2021.


Full Year 2012 Result

Achieved 63% of 2012 Goal.


 
 


Portfolio XIRR

Track, measure and visualise - without doing it how to revise investing strategies and improve year-on-year investing performance.




 

 
My portfolio XIRR includes all investible cash plus the current stocks value at market closing price as on 28 Dec 2012.

Since one year ago: 2.6%
Since 1 Nov 2008: +10.2%
Since 1 Jan 2003: +11.5%
Since 1 Jan 2000: +10.2%

From the above multi-years XIRR value, I believe my investing performance is rather consistent.


Riding the market cycles of Bull and Bear


 
 
 
Higher low at market correction was noted and still waiting for the next Bear.
If the Bull continues to charge forward, a new all-time high record breaking can be expected.


 
How is my investing skills contributing to my net worth and towards my financial independence dream?

 
 
 
 
 
 



 
Liquidity and Permanency
 
 
Liquidity of Capital for the Next Bear and Permanency of staying Invested for the Next Bull!
 
 
Having taken back 100% of Investing Capital as War Chest for the next Bear; it is like Year 2000 all over again; but this time Uncle8888 is armed with Master Degree in Stock Market and going for PhD. in Stock Market.
 
It is going to be more exciting!
 
This time, regular readers will be able to watch "Full Time" actions on how investing lessons for PhD course are conducted here. In the last two courses, readers could only manage to watch "Half Time" actions  as Uncle8888 started to blog in 2006.
 
 
Mr. Bear, do come quickly in 2013/2014 for the 1st semester!
 
 
 
 
 
BTW,
 
Someone asked: "One question i wanted to ask you. Is there a reason you upkeeping create wealth blog? Is it an avenue for you to track market progress and put up interesting articles? Just out of curiosity."
 
 
 
 
 








DOW : 12,938.11 Down 158.20(1.21%)

 
CLIFF MONDAY???
 
 

Friday, 28 December 2012

Secret behind Uncle8888's Top Pick: Kep Corp

Just For Thinking ...



What is the secret behind Uncle8888's Top Pick: Kep Corp???




Superior Fundamental Analysis???


NO, NO, NO!!!



Superior Technical Analysis???


NO, NO, NO!!!


Actually, it was .....


Uncle8888 made money from watching LKY's lips.

He said Singapore had too many finance companies!

Uncle8888 listened and bought Keppel Finance and Tat Lee Finance.

Guess what happened???

Uncle8888 made $XX,XXX when smaller finance companies were taken private and disappeared.


Some years later, Uncle8888 made money again from watching LKY's lips.

He said Singapore had too many banks!

Uncle8888 listened and bought Keppel Bank.

Guess what happened???

Uncle8888 made $XX,XXX when Keppel Bank also disappeared.


By then, Uncle8888 loved Keppel Brand.



When the opportunity in Sep 2011 came, Keppel Corp was the natural choice in Uncle8888's mind. Right?

The rest is History.






Thursday, 27 December 2012

Keppel’s new contracts bring total 2012 order wins to S$9.9 billion

Keppel Offshore & Marine Ltd's (Keppel O&M) subsidiaries have secured three new contracts - worth a combined value of S$420 million - to bring the group's total order wins for 2012 to S$9.9 billion.

Mr Tong Chong Heong, Chief Executive Officer of Keppel O&M, said, "With the strong confidence and support of new and repeat customers, Keppel O&M continues to be the provider of choice for a broad range of offshore and marine projects.

"2013 will be a busy year for us as we continue to focus on the quality execution of all our projects - we are committed to ensure that they are delivered safely, promptly and to high customer satisfaction. We will also enhance our capabilities, and so extend our range of value-added services."

Keppel Singmarine Pte Ltd (Keppel Singmarine) secured two of the three new contracts, with the third new contract won by Keppel Shipyard Ltd (Keppel Shipyard).

One of Keppel Singmarine's two new contracts is from Hydro Marine Services, Inc., a subsidiary of McDermott International, Inc (McDermott), for the construction of a high-specification deepwater pipelay (S-Lay) vessel.

Developed by Keppel's Marine Technology Development (MTD), this vessel is designed to support advanced pipelay operations, in which pipelines are installed to depths of up to 10,000 feet. It is also capable of achieving efficient pipelay rates for long trunklines, operating in severe weather conditions, and providing significant thrust output and power distribution.

Works for the pipelay vessel is scheduled to commence in 1Q 2013 and is expected to complete in approximately two and a half years. This contract will become effective after both parties have fulfilled certain conditions precedent by January 2013.

Keppel Singmarine's other new contract is from Australia-based Bhagwan Marine Pty Ltd (Bhagwan Marine) to build a catamaran air dive support vessel (DSV).

When completed in 1Q 2014, the DSV will be deployed in the north west of Western Australia to support the operations of Apache Energy Ltd. Designed by Incat Crowther Pty. Ltd, the DSV is of twin hull configuration (catamaran).

Specialised units such as pipelay vessels and DSVs form part of Keppel Singmarine's growing track record. Keppel Singmarine has also worked together with Keppel Shipyard to bring to the market Saipem's Castorone, one of the world's largest and most capable pipelay vessels. Presently, Keppel Singmarine's projects include a multi-purpose dive support construction vessel for SBM Offshore N.V. (SBM Offshore).

Keppel Shipyard's new contract is from EMAS Offshore Construction and Production Pte Ltd (EMAS Offshore) to modify and upgrade an existing Floating Production Storage and Offloading (FPSO) facility, Lewek Arunothai. The yard's workscope includes the installation of new structures, piping systems and deck crane, refurbishment of the living quarters as well as the fabrication and installation of the rigid arm and external turret mooring systems.

When completed in 2Q 2013, the FPSO will be deployed as an Early Production System in the Kamelia field, which is located in the Malaysia/Thailand Joint Development Area (JDA) in the North Malay Basin. The upgraded FPSO will be capable of handling 100 million standard cubic feet per day (MMscfd) of gas, 1000 barrels per day (bpd) of condensates and 500bpd of water.

The above contracts are not expected to have any material impact on the net tangible assets and earnings per share of Keppel Corporation Limited for the current financial year.


Createwealth8888's tracking of Kep Corp Order Book

However, market is still worry of margin squeeze.






The next 2-3 quarters will be clearer whether margin really kena squeeze or not? 
 
 
 



DOW : 13,114.59 Down 24.49(0.19%)

 
 
 
 

Wednesday, 26 December 2012

STI 3,180.81 Up 12.24(0.39%)


Tuesday, 25 December 2012

12 Years of Christmas and Two Lessons in Investing.



12 years of Christmas .....

 
 
 
 
Two Lessons in Investing: Liquidity and Permanency
 
Lesson 1: Liquidity
 
Liquidity for expenses
 
Investment  axiom: "Always invest what you can to afford to lose."
 
BUT, how many retail investors have discipline for this?
 
When chasing the Bull market, it always look silly for any extra cash to be rotting in the bank earning tiny returns. The lure of the Bull will be so strong that we will soon begin to deploy these extra cash "temporary" into the market.
 
No worry!
 
We will know how to take them back soon.
 
 
 
BUT, the Truth... Market can turn faster than our self-denial

The moment we have accepted the truth and overcome our self-denial. It is often too late. Big negative returns are locked once we have liquidated our investment at market low or near market low


In Jan 2009, Uncle8888 finally realised the liquidity for expenses issue and accepted the "truth" that the daily bombardment of Great Depression 2.0 news might be real.


What about losing his job? Living expenses. How???

What about his two kids university fund starting from Jul 2009? Taking a gamble???


He bited the bullet and liquidated them at big losses to maintain Liquidity for Expenses and locked in negative returns. Painful lesson learnt when market recovered two months later.

Never, never invest money that may be needed in few years even when the Bull Market is running fast!

Risk is the permanent loss of capital and not price stock volatility. We really cannot take stock price volatility anymore when we really need the money soon.

What Warren Buffet said is so right!

What is risk? The conventional definition of risk in finance literature is price volatility. But to super-investor Warren Buffett, risk is the permanent loss of capital.

Lesson 2: Permanency of staying invested at all times

Market volatility is something we as investors have to live with it across market cycle of Bulls and Bears.

It is hard for us to exactly time the market to execute meaningful and significant Exits and Entries of our positions in the market.

But, we must always remember that for every 365 days of Liquidity of Cash in the bank; we are eroding the value of these idle cash at the rate of inflation.


Over long-term can we afford to lose them to inflation???

Permanency of staying invested to fight inflation.

Get it?



Merry Christmas!

















Sunday, 23 December 2012

Merry Christmas to all CW8888's blog visitors and readers!



Merry Christmas to you!
 
 
 
 
 

This StockWhiz Kid could have made the History in Singapore stock investing!!!



me and my money,  Dec 23, 2012, thesundaytimes


Bought OSIM at $0.055

Sold them between $0.10 and $0.30 --> 5 baggers Return!!!

Current OSIM stock price @ $1.80


---------------

Uncle8888 is curious to know in real life how many retail investors out there in the market can hold on to their multi-baggers across market cycles of Bulls and Bears without dropping the balls?

Share with us if you are one of them?






Saturday, 22 December 2012

How to beat CPI??? (3)

Just For Thinking ..


Read? How to beat CPI??? (2)


If you only want to listen to the inflation part by Warren Buffet, fast forward to the last segment of the video.

Watch? HOW WARREN BUFFETT HEDGES HIMSELF AGAINST INFLATION






History doesn't just happen. Someone has to make it happen!!! (2)


Just For Thinking ..


Read? Shocking Truth on some Stock Gurus!


Read? History doesn't just happen. Someone has to make it happen!!!


Luck, Skill or Market's Window of Opportunity???

One woman's History of making CAGR of 2X% from 2008 till mid 2010 by jumping in and out of stocks like Grass-hopper.

Can History be repeated?

I voted with STRONG YES!!!





How to beat CPI??? (2)


Just For Thinking ..


Read? How to beat CPI???


Read? History doesn't just happen. Someone has to make it happen!!!


Learn from words of Wisdom from Warren Buffet

"It just seems not to resonate with some people and talking about it or showing them the performance/results won't help."

"Even if you show them the results, they still don't believe you. However, eventually proof comes through results."



Growth-Dividend is NOT a Myth. It is possible!





















Uncle8888 has made that History come Alive here!





































Thanks to Raymond Ng for his contribution:



He commented
 
I totally agree with your method and strategy. The trick is to spot potential growing company (EPS) with growing dividend and low pay-out ratio.
 
Append here some examples of stock that pay high dividend but with high pay-out ratio or flat EPS/Dividend.
 
1.       KeppelCorp – you know best. J
2.       SPH – People favourite. But its dividend is flat since 2006 with higher payout ratio due to declining EPS
3.       Suntec Reit – in some years, the dividends were paid by debt
4.       Chip ES – Small/mid cap company but is growing over the last 3 years. Growing Dividend with low pay-out ratio. J





 








 
 
 
 


Friday, 21 December 2012

How to beat CPI???


Just For Thinking ..



Read? Are dividends the way to go in equities?


"A 6 per cent yield today is likely to be 6 per cent in three or five years' time and the dividend stream will be exposed to the eroding effects of inflation."


How to beat CPI???


IT'S NOT YIELD, IT'S GROWTH


How many dividend income investors got it right?


The secret weapon for long-term retail investors is not income yield but actually finding and holding growth-dividend stocks.

You can't even buy your MacDonald Value Meal ...





















Get it?











CPF Medisave Required Amount to be raised to $38,500

SINGAPORE: From January next year, the Medisave Required Amount (MRA) in the Central Provident Fund (CPF) will be raised to S$38,500 from the current S$32,000.
The MRA refers to the amount that must be set aside in the Medisave Account, after the CPF Minimum Sum requirement has been met.

The CPF Board said those who have met the CPF Minimum Sum and have an MRA shortfall at the point of withdrawal have to make a top-up to the Medisave Account.

This can be done with part of the balances from the Ordinary Account and/or Special Account to meet the prevailing MRA.

CPF said the requirement for members to set aside the MRA in their Medisave Account is to enable them to have enough savings to meet their healthcare needs during old age.

Central Provident Fund members will also continue to enjoy a risk free interest rate of four percent on their Special and Medisave Accounts (SMA) for the next three months, from 1 January to 31 March 2013.

The interest rate on their Retirement Accounts (RA) for the whole of next year will also remain at four percent.

The CPF Board said this was in line with the government's announcement in September that it would maintain the four percent per annum floor rate for interest earned on all monies in the Special and Medisave Accounts as well as savings in the Retirement Account until the end of next year.

Savings in the SMA currently earn either 4 percent or the 12-month average yield of 10-year Singapore Government Securities (10YSGS) plus 1 percent, whichever is the higher.

The interest rate on SMA savings is adjusted quarterly, based on interest rates on 10YSGS over a preceding 12-month period.

Since the average yield of the 10YSGS plus 1 percent, from 1 December 2011 to 30 November 2012, works out to be 2.49 percent, the SMA interest rate payable to CPF members from 1 January 2013 to 31 March 2013 will be maintained at the current floor of 4 percent, CPF said.

New RA savings are invested in SSGS which earn a fixed coupon equal to either the 12-month average yield of the 10YSGS plus 1 percent at the point of issuance, or 4 percent, whichever is the higher, adjusted yearly.

CPF said given the lower 10YSGS yield, new RA savings will earn a fixed coupon of 4 percent.

- CNA/al

Noble Group: Maybank Kim Eng Research, Dec 20

WE SEE Noble as most leveraged to an improvement in China's economic activity in 2013, especially industrial output. Excluding its oil & gas business, China is its single biggest market, which we estimate accounts for more than 30 per cent of total group tonnage. Its importance as a commodity supplier was also likely a key consideration when China Investment Corp took up a substantial stake in 2009.

While on-ground assets in China are quite light (limited to oilseed crushing and storage), Noble is one of the largest suppliers of hard commodities such as coal and iron ore into China, sourced from other countries. Improved demand in 2013 could mark a significant turnaround in profitability.

Noble has a business and asset footprint across the world, and is involved from energy to soft commodities. We believe this should allow them better opportunities to deploy capital profitably. Its earnings over the past 12 months have also been generated through lower values at risk (VARs) (0.52 per cent in Q3 2012), which may imply upside if 2013 turns out to be a conducive year for commodities demand.

Thursday, 20 December 2012

DBS - One more attempt to break this tough resistance


Are dividends the way to go in equities?

Firms that grow their dividends can yield a 'double compounding' effect.

By ANDREW HENDRY

WHILE many investors focus on capital gain as the main source of return from equities, history shows that long- term returns are enhanced a lot by the inclusion of dividends. Just take the outcome of a US$1,000 investment in a portfolio of US equities since the beginning of 1970. The capital alone has increased to US$13,474, but the total return - which includes dividends and the reinvestment of those dividends - has risen to US$51,377. The difference is accounted for by the benefits of compounding - that is to say, the amplifying effect of reinvestment.

However, this compounding effect can be further enhanced if an investor were not to focus just on any dividend-paying stock, but on companies that can grow their dividends, resulting in a "double compounding" effect. For example, had you invested US$1,000 in the US stock market 10 years ago, your stake today would be worth US$1,980, including the reinvestment of dividends. Now if you were fortunate enough to have put this money not in the broad market, but instead into an elite group of companies in the US called the "dividend achievers" - companies which have rewarded shareholders with a rising dividend every year for 25 years or more - your investment, on the same terms as above, would have increased to US$2,750. That is a vastly superior return to simply investing in the index. As a consequence, for this to work to greatest effect, you need to concentrate your money on companies that increase their dividends year in, year out - and stick with them for long periods of time. Consistency and patience are what's required. But what about high-dividend yields, so often targeted by equity income strategies? A high yield is not an automatic signal of value. In fact, it can often be a sign of trouble or limited growth potential. Without growth in the business, a company cannot sustain long-term dividend growth. Consequently, the return profile of a telecom or utility sector - industries which currently yield the most - is typically predictable but unexciting; very much like a bond, in fact. A 6 per cent yield today is likely to be 6 per cent in three or five years' time and the dividend stream will be exposed to the eroding effects of inflation. Investing in companies that can increase their dividends over time is much more compelling because dividends and share price performance go hand in hand. It is better to begin with a lower starting yield compared to the highest yields in the market if you insist upon growth in the dividend stream because rising dividends will lead to higher yields in the future. Yield tomorrow is more interesting than yield today. More importantly, a rising dividend stream will create pressure for the share price to perform. The combination of a higher dividend and a higher share price can be a powerful one for investors.

Take, for example, Nestle - the world's leading food- and-beverage company with household brands such as Kit Kat and Milo. The Swiss company has a long history of profitable growth and it is no coincidence that the dividend track record is equally impressive: Nestle has raised its dividend every year for 16 consecutive years with an average annual growth rate of 13 per cent. Back in 1996 at the beginning of this sequence, the shares were yielding a paltry 2.4 per cent - too low to be considered by many dividend investors. However, the dividend has increased more than six-fold since then. So the yield at the outset, with the benefit of perfect hindsight, was actually more than 15 per cent. Not surprisingly, the strong growth in the dividend stream has led to significant capital appreciation and the share price has quadrupled during that time. Looking at the total return, the investor has been rewarded with a six-fold increase in his investment.

Wednesday, 19 December 2012

History doesn't just happen. Someone has to make it happen!!!


Just For Thinking ...



Read? Trading for Income or Active Investing for Wealth? (3)


Why haven't more people copied his investment strategy? Buffett replies:

I don't know! It's not about high IQ. It just seems not to resonate with some people and talking about it or showing them the performance/results won't help. They just don't feel good about it. I am also puzzled by why value investing hasn't caught on. I mean, what other type of investing is there? You want something other than value? But the things is, people just don't want to believe. They elect things that are emotionally satisfying. Even if you show them the results, they still don't believe you. However, eventually proof comes through results.
 
 
"It just seems not to resonate with some people and talking about it or showing them the performance/results won't help."
 
"Even if you show them the results, they still don't believe you. However, eventually proof comes through results."
 
 
 
History doesn't just happen. Someone has to make it happen!!!
 
 
How do we react to history?
 
Tomorrow's History is made by someone who believe in History and takes the necessary steps in the Present and History may actually happen!
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

DOW 13,350.96 Up 115.57(0.87%)




Santa Bull???

 


Tuesday, 18 December 2012

Trading for Income or Active Investing for Wealth? (3)



Read? Trading for Income or Active Investing for Wealth? (2)


TRADING OR INVESTING???


I have done both with some success.

I have traded 94 Rounds of Kep Corp and the last one was traded on 11 Jan 2012; but I am also holding it for 11.3 years with realised gains of 305% from dividends and sitting on unrealised capital gain of 726%.


DONT ASK ME.


I REALLY DON'T KNOW!!!

AM I CONFUSED??? MAY BE





Sunday, 16 December 2012

3 bananas in the Morning and 4 in the Afternoon (2) - Revisit

Just For Thinking ...



Read? 3 bananas in the Morning and 4 in the Afternoon (2)


Read? Clearly Know What You Really WANT or NEED; you may be financially better off!


Are you sad over 3 bananas in the Morning???






 

Do you still believe in financial experts or Gurus forecast and calls? (2013)



Read? Do you still believe in financial experts or Gurus forecast and calls?


This time from the Gurus from Share Investment for 6 stocks in 2012

At 13 Jan 12 market closing price:

  1. Kep Corp: $10.27 (This one is Createwealth8888's all time favourite stock)
  2. M1: $2.55
  3. ComfortDelgro: $1.445
  4. Q&M: $0.84
  5. Ezion: $0.71
  6. Super: $1.39
Let see them at 31 Dec 2012



2013 Stocks Pick Forecast















Createwealth8888 also has the following stocks:

  1. Biosensors 
  2. DBS
  3. Keppel Corp
OCBC Research chun bo???








 





















Createwealth8888














How to make money???



Just For Thinking ...



Read? All work sucks? - Part 2


How to make money???


  • Work for others and let others decide what is required from you e.g. Educational level, IQ, EQ, blah, blah ...
  • Work for yourself and at least you can decide for yourself what is required.
  • Let others deliver the money to you and at least you get to decide who are the best people to deliver the money to you e.g. business owner, investors.



Psychological Test on Yield

Just For Thinking ....

Psychological Test on Yield


Question 1:

For Fixed Deposit at bank, do you feel very happy to receive Upfront interest payment of X% p.a. one calendar day after placement.


Do you feel so shiok or happy about it!!!


Read? Time Deposit – Upfront Interest???


If you are one of those who feels good or shiok on receiving upfront interest of X% p.a., Uncle8888 suggests that you go up to Bukit Timah Hill next weekends and do some Deep Thought thinking on yield.

Once you have breakthrough thinking on yield, you will be in better shape to appreciate stock dividend yield.


About Yield

There are two yields that you need to seriously understand:

Current Market Yield:

Even when market is not depressed or moody, any Tom, Dick, and Harry, come Monday they will most likely to get it and become income or yield retail investors.

Personal Yield

You have to be very patient. Definitely, you don't smell it on coming Monday.

Next week???

Next month???

Next year???

Only God knows!


Stock Dividends and Capital Appreciation


Next, Question 2 to think about it.

When your stock price does not appreciate much after a few years or in the worst case, it has fell significantly below your initial purchase price. How do you feel good about it?

What is your answer for Question 1 and 2?












Saturday, 15 December 2012

Bull or Bear in 2013? But, are you ready with Wallet?





Olam - WHERE and WHEN is the bottom???



Probably after XR in Feb 13???
 
It is for pple with iron balls???
 
 
 
 

Can STI ignore and chart its own future???





 


Friday, 14 December 2012

10 Amazing Investment Quotes You've Probably Never Heard




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