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

Sunday, 24 January 2016

When We Are Very Sick We May Have That Feeling of Entitlement that PAP Govt Owes Us Something! (2)


Read? When We Are Very Sick We May Have That Feeling of Entitlement that PAP Govt Owes Us Something!

With proper financial planning, assets and portfolio management, can we build up our own Medical & Health Care Self-Funding before we retire from our active employment?

This self funding is like Pay Per Use till exhaustion rather than Pre-Payment with limited Usage and may be potentially under-usage like many of us for our mobile plans.  


Not Bear Yet But Already Feel That Assets Value Impact!


STI @ 2,577

Wealth = Assets Value + Cash Flow!


Assets Value has been badly impacted; but Cash Flow still look quite okay. Still have enough for survival!


 







































Saturday, 23 January 2016

When We Are Very Sick We May Have That Feeling of Entitlement that PAP Govt Owes Us Something!

WTF! Wait so long! So crowded! Not same doctor har!

 


One Lesson Learnt After Looking Back At The Past 16 Years Records In Long-term Investing and Short-term Trading.



For small retail investor like Uncle8888 who has a full-time job to take care and his earned income is enough to feed his family of five member as single household income. It is tight but manageable!

He has learned one lesson after looking back at his past 16 years records in long-term investing and short-term trading. It is better NOT to speculate in the stock market for monthly or daily cash flow

Trading for a living is a full-time job. Are we financially off better in trading for living or working for a living? 

We should be true and honest to ourselves after we have tried our hands on it.













Friday, 22 January 2016

Golar LNG and Schlumberger sign Memorandum of Understanding

Published: 15:29 CET 22-01-2016 /GlobeNewswire /Source: Golar LNG / : GOL /ISIN: BMG9456A1009 

Golar LNG and Schlumberger sign Memorandum of Understanding

Golar LNG today announced that it has signed a Memorandum of Understanding with Schlumberger to co-operate on the global development of greenfield, brownfield and stranded gas reserves. 
Under the Memorandum, Golar and Schlumberger have agreed to jointly market gas monetization solutions to owners, investors and governments. Golar will contribute the Floating LNG assets and technology while Schlumberger, via its special project management division, will provide upstream development knowledge, resources and capital.  The intention of this integrated offer is to gain access to a wide range of uneconomic gas reserves by delivering low-cost LNG production solutions.
This is a ground breaking agreement that will provide resource holders with a completely integrated package both reducing risk and securing financing for gas projects. The main aim of the venture is to accelerated the time it takes to bring proven gas reserves into production.
Both parties have initiated their activities and have already made solid progress expecting to announce the first project within the next two months.


Kep Corp is a conglomerate!


Some people tend to forget that Kep Corp is a conglomerate and not a pure O &G player so it is extremely difficult to analyze its future and transformation!


What did you see?








































CW, seen you invested in KepCorp >15 years, how does it's SBU fit into BCG matrix?

1. Star
2. Cash Cow
3. Question mark
4. Dog




What can we see from the PAST and make some guess into its FUTURE?


It is quite clear. Right?




























 

How about Cash Cow?

Why does Kep Corp choose to return dividends in specie for former K-Green and K-REIT to its shareholders and not keeping cash cow for itself?

Probably two reasons:

(1) Let shareholders themselves to decide to continue to get small regular milk or one-off small meat

(2) Avoid pumping in more capital to feed these cash thirst BUs.


 Back to (1)

How much more pro-rated dividends does royal shareholder get from ex K-Green and K-REIT on top of dividends from Kep Corp?

ex-K-Green (2010 to 2015) : $0.15
Kep Corp (2010 to 2015): $2.89

+ 5.2% more


K-REIT (2013 to 2015) : $0.056

Kep Corp (2013 to 2015): $1.32

+ 4.3% more


 


Kep Corp : Entries/Exits. That Will Shape Our Own Investing Experience!

Hi Uncle,

Been following your blog for a while and noted that you have investments in Keppel and Sembcorp. Recent news is that Sete Brasil may be filing for bankruptcy, if true, that will really affect both companies.

What are your views and are you still holding onto shares of both companies? 
 
 
The PAST is NOT the PRESENT. The PRESENT is NOT the FUTURE.
 


Entries/Exits. That will shape our own investing experience over long run and likely we will make decisions based on that experience. Good or bad feeling! So we are biased based on that feeling. Right?






























 
 

On Blog Leave : 25 Jan 16 to 1 Feb 16


 



































Read? Exploring Taiwan for Round 2 - Cingjing, Sun Moon Lae, Xitou, Taichung and Taipei






Financial Independence 2.0 : Moving Away From Just Dividend Income!


 Read? Depending On Your Dividends in the Land of Financial Independence For Small Retail Investor?

 Learning from wise men of the past
” If you have a worry problem, do these three things:
1. Ask yourself: “What is the worst that can possibly happen?”
2. Prepare to accept it if you have to.
3. Then calmly proceed to improve on the worst.”

 (Carnegie 49)

Newton said: "If I have seen further it is by standing on the shoulders of giants."



When companies started cutting dividends during crisis to save themselves; and what if the cut is even worse than our most conservative estimate. It may seriously impact our desired level of "passive" income in the Land of Financial Independence.  



We need Plan B!








Thursday, 21 January 2016

Depending On Your Dividends in the Land of Financial Independence For Small Retail Investor?



With Kep Corp cutting its FY 15 dividend to 34 cts instead of market expectation of at least 40 cts. This is a good reminder to Uncle8888 on the importance of strengthening his Tap 1 in his Three Taps Solution for Sustainable Retirement Income for Life.


Can we as small retail investors seriously depend on dividends as bulk of our "passive" income in the Land of Financial Independence?


For Tap 3 cash flow, Uncle8888 has downsized the cash flow on his two top holdings in view of more uncertainty in the next two years as follows:

Kep Corp's dividend to 30 cts in 2016,  28 cts in 2017 and 2018 

Semb Corp's dividend to 10 cts in 2016, 8 cts in 2017 and 2018


Revised Cash Flow for Tap 1 (Interests) and Tap 3 (Just on Dividend Income)
















Kep Corp FY 2015


1. 4Q 2015 Net Profit down 44% to S$405 million, compared to 4Q 2014's S$726 million.

2. FY 2015 Net Profit down 19% to S$1,525 million, compared to FY 2014's S$1,885 million.

3. Earnings per Share was 84.0 cents, down 19% from FY 2014's 103.8 cents.

4. Annualised Return on Equity of 14.2%.

5. FY 2015 Economic Value Added decreased to S$648 million from S$1,778 million YoY.

6. Cash outflow of S$694 million.

7. Net gearing was 0.53x.

8. Total cash dividends of 34.0 cents per share for FY 2015.























Your Chance of becoming "Passive" Retail Investors getting around 3% yield may be here soon!



See it closely with your own  eyes actively to receive "passive" yield. Choose your own "passive yield" at your own time and own target. 

Carry on! LOL!





Wednesday, 20 January 2016

SGX reports 2Q performance with net profit of $84 million

2Q FY2016 Financial Summary

 Revenue: $195 million, unchanged from a year earlier
 Operating profit: $98 million, down 4%
 Net profit: $84 million, down 3%
 Earnings per share: 7.8 cents, down 3%
Interim dividend per share: 5 cents1, up from 4 cents


All figures are for the year except for figures in brackets which are for the year earlier, unless otherwise stated


Singapore Exchange (SGX) today reported net profit of $83.7 million ($86.6 million) for 2Q FY2016. Revenue was largely unchanged at $194.6 million ($195.1 million). Expenses increased $3.5 million or 4% to $97.1 million ($93.5 million). Earnings per share was 7.8 cents (8.1 cents), and the Board of Directors has declared an interim dividend of 5 cents (4 cents) per share, payable on 4 February 2016, in line with the stated dividend policy.


Net profit for 1H FY2016 was $183.0 million, up 11% from a year earlier ($164.2 million), on the back of a strong first quarter.


Outlook

Our results this quarter reflect persistent weak market sentiment. The outlook for global markets remains uncertain as market participants adjust to the recent change in US interest rate policy, slower growth in China and volatile commodity prices. While we have successfully launched a number of new initiatives this past quarter, including SGX Bond Pro, their initial contribution to business performance will be marginal. We remain committed to our long term growth strategy.


We are focused on managing our costs, and operating expenses for FY2016 are now expected to be between $415 million and $425 million. This is lower than the previously announced range of between $425 million and $435 million.  


Technology-related capital expenditure is now expected to be between $70 million and $75 million, lower than the previously announced range of between $75 million and $80 million, as we re-prioritise our projects.
 

Is STI stepping into Bear market soon?


Look at the first two charts closely and notice what did you see!








Tuesday, 19 January 2016

STI History Since 1990 Major Data Points : Bare All For You To See Closely! (2)


 Read? STI History Since 1990 Major Data Points : Bare All For You To See Closely!

Now, the chart has been improved with color coding band in Blue, Orange, Yellow and Red; you should be able to recognize the FOUR re-bouncing bands of STI's past corrections and Bear markets.

Is today STI bouncing off the Blue band or Dead Cat re-bounces and then drops further to test the Orange band?


Who want to bet?


 

2015 Household Expenses


2015 overseas travel expenses is about 17.6% of total household expenses.


Uncle8888 will need to increase "passive" income from 2017 to be sustainable.








Monday, 18 January 2016

Keppel Infrastructure Trust Unaudited Results for the Year Ended 31 December 2015


1. Distribution per unit (DPU) of 0.93 Singapore cents was declared for the quarter ended 31 December 2015.

2. Group revenue for 9M FY15 was S$427.9 million, 12.5% higher than 9M FY14, with full quarter contributions from the Crystal and KMC acquisitions, partially offset by (i) lower revenue from City Gas as town gas tariff decreased with lower fuel prices, and (ii) higher negative CRSM(1) adjustment incurred by Basslink and the impact of the outage of the link since 20 December 2015.

3. Profit attributable to Unitholders of the Trust of S$15.5 million in 9M FY15 were higher than the last financial year as a result of contributions from the Crystal Trust and KMC acquisitions.

4. 9M FY15 distributable cash flows of S$90.7 million, was S$53.5 million higher than 9M FY14, mainly due to contributions from the Crystal and KMC acquisitions.

5. Net asset value per unit as at 31 December 2015 increased to 35.3 Singapore cents from 12.3 Singapore cents as at 31 March 2015. This was primarily attributable to the issue of new units in connection with the Crystal and KMC acquisitions and mark-to-market gains of derivative instruments, which were partially reduced by distributions paid.

6. Gearing(2) as at 31 December 2015 was 34% compared to 52% as at 31 March 2015 as a result of the lower gearing of the Crystal assets and KMC.

Keppel REIT's 4Q 2015 distributable income grew 17.8% y-o-y

Gearing reduced significantly to 39.3% and High portfolio occupancy of 99.3% as at end-2015

Key Financial Highlights
 
• Income distributed to Unitholders for the fourth quarter of 2015 ("4Q 2015") and full year 2015 (FY 2015) rose 17.8% and 5.4% year-on-year ("y-o-y"), and remained constant on a quarter-on-quarter ("q-o-q") basis
• Higher distributable income was achieved despite the lack of income from Prudential Tower, as well as the absence of rental support from Ocean Financial Centre and Marina Bay Financial Centre ("MBFC") Phase One
• Improvement in distributable income was due mainly to higher property income from all assets in Singapore and Australia, as well as higher contributions from share of results of associates and share of results of joint ventures
• Distribution per unit ("DPU") of 1.68 cents for 4Q 2015, amounting to a total of 6.80 cents for FY 2015

Key Capital Management Highlights
 
• Gearing level reduced significantly by approximately 8% to 39.3%, considerably lower than the Monetary Authority of Singapore's (MAS) revised gearing limit of 45%
• Maintained fixed-rate loans at 70% which safeguards against interest rate volatility and provides certainty of interest expenses as well as financial and operational flexibility
• Average cost of debt remained stable at 2.5% and interest coverage ratio at a healthy 4.4 times
• Completed almost 100% of refinancing requirements in 2016, and maintained well-staggered debt maturity profile with weighted average term to expiry at a healthy 3.7 years
• Almost 100% of income from Australia hedged up till the third quarter of 2016 ("3Q 2016")

Key Portfolio Highlights

• Concluded a total of 114 leases, equivalent to approximately 1.6 million sf (attributable space of approximately 800,000 sf) of prime office space in 2015, bringing overall portfolio occupancy to a high of 99.3%
• Of the total new leases signed during the year, half were from tenants who were new to Keppel REIT's portfolio, one quarter from tenants new to Singapore and the remaining one quarter were expansions by existing tenants
• Approximately 30% (32 leases) or 480,000 sf (attributable space of approximately 222,000 sf) of space was committed in 4Q 2015
• Tenants from the telecommunications, media and technology ("TMT") sector accounted for half of the new leases signed during the quarter
• Achieved high tenant retention rate of 90% as at end-2015, and positive rent reversion averaging 13% for all new and renewed office leases in Singapore
• For leases expiring in 2016, the Manager is already in advanced negotiations with these tenants and is likely to achieve high retention
• For leases expiring in 2017, the Manager is also proactively engaging these tenants and is likely to renew most of these leases as the majority of these tenants are in their first renewal cycle
• Approximately 75% of total leases not due for renewal till 2018 and beyond, when limited new office supply is expected
• The Government of Western Australia (WA) commenced its 25-year lease at the office tower on the Old Treasury Building site in Perth in November 2015
• Announced divestment of interest in 77 King Street in Sydney for A$160 million or S$160 million, which is approximately 40% and 27% above the original purchase price and latest valuation respectively

Bear Market Confirmed Once The Bo Chap Also Concerned!!!


Auntie8888 has just asked after reading newspapers this morning: 

"How much have you lost?"



Sunday, 17 January 2016

What do seasoned retail lnvestors fear the most? (2)



Read? What do seasoned retail lnvestors fear the most?

For newbies who have lost money recently; you may like to think that you are among those unlucky fellows who step into your investing journey at the wrong timing. Sianz!

What about Uncle8888 who have a dream in Dec 1999 of becoming financial independence and get out of Rat Race through ...





 






















He started right at the end of Bull Peak in Jan 2000. He was so unlucky, and then followed by more bad luck in Sep 2011 WTC,  SARS in 2003 and was badly hit and down by GFC in 2008. 

Anyone who has just started his/her investing journey near the end of Bull market will know that kind of feeling? 

Investing can lead to more wealth meh!



What next in 2016 and how BAD can it be?









Rich Man, Poor Man




Read? Rich Man, Poor Man

 
MAKING MONEY: The most popular piece I've published in 40 years of writing these Letters was entitled, "Rich Man, Poor Man." I have had dozens of requests to run this piece again or for permission to reprint it for various business organizations.

Making money entails a lot more than predicting which way the stock or bond markets are heading or trying to figure which stock or fund will double over the next few years. For the great majority of investors, making money requires a plan, self-discipline and desire.

I say, "for the great majority of people" because if you're a Steven Spielberg or a Bill Gates you don't have to know about the Dow or the markets or about yields or price/earnings ratios. You're a phenomenon in your own field, and you're going to make big money as a by-product of your talent and ability. But this kind of genius is rare.

For the average investor, you and me, we're not geniuses so we have to have a financial plan. (CW8888: Ants can continue reading. Grasshoppers can stop here!) In view of this, I offer below a few items that we must be aware of if we are serious about making money.

Rule 1: Compounding: One of the most important lessons for living in the modern world is that to survive you've got to have money. But to live (survive) happily, you must have love, health (mental and physical), freedom, intellectual stimulation -- and money. When I taught my kids about money, the first thing I taught them was the use of the "money bible." What's the money bible? Simple, it's a volume of the compounding interest tables.

Compounding is the royal road to riches. Compounding is the safe road, the sure road, and fortunately, anybody can do it. To compound successfully you need the following:perseverance in order to keep you firmly on the savings path. You need intelligence in order to understand what you are doing and why. And you need a knowledge of the mathematics tables in order to comprehend the amazing rewards that will come to you if you faithfully follow the compounding road. And, of course, you need time, time to allow the power of compounding to work for you. Remember, compounding only works through time.

But there are two catches in the compounding process. The first is obvious -- compounding may involve sacrifice (you can't spend it and still save it). Second, compounding is boring -- b-o-r-i-n-g. Or I should say it's boring until (after seven or eight years) the money starts to pour in. Then, believe me, compounding becomes very interesting. In fact, it becomes downright fascinating!

In order to emphasize the power of compounding, I am including this extraordinary study, courtesy of Market Logic, of Ft. Lauderdale, FL 33306. In this study we assume that investor (B) opens an IRA at age 19. For seven consecutive periods he puts $2,000 in his IRA at an average growth rate of 10% (7% interest plus growth). After seven years this fellow makes NO MORE contributions -- he's finished.

A second investor (A) makes no contributions until age 26 (this is the age when investor B was finished with his contributions). Then A continues faithfully to contribute $2,000 every year until he's 65 (at the same theoretical 10% rate).

Now study the incredible results. B, who made his contributions earlier and who made only seven contributions, ends up with MORE money than A, who made 40 contributions but at a LATER TIME. The difference in the two is that B had seven more early years of compounding than A. Those seven early years were worth more than all of A's 33 additional contributions.

This is a study that I suggest you show to your kids. It's a study I've lived by, and I can tell you, "It works." You can work your compounding with muni-bonds, with a good money market fund, with T-bills or say with five-year T-notes.

 


Rule 2: DON'T LOSE MONEY: This may sound naive, but believe me it isn't. If you want to be wealthy, you must not lose money, or I should say must not lose BIG money. Absurd rule, silly rule? Maybe, but MOST PEOPLE LOSE MONEY in disastrous investments, gambling, rotten business deals, greed, poor timing. 

Yes, after almost five decades of investing and talking to investors, I can tell you that most people definitely DO lose money, lose big time -- in the stock market, in options and futures, in real estate, in bad loans, in mindless gambling, and in their own business.

RULE 3: RICH MAN, POOR MAN: In the investment world the wealthy investor has one major advantage over the little guy, the stock market amateur and the neophyte trader. The advantage that the wealthy investor enjoys is that HE DOESN'T NEED THE MARKETS. I can't begin to tell you what a difference that makes, both in one's mental attitude and in the way one actually handles one's money.

The wealthy investor doesn't need the markets, because he already has all the income he needs. He has money coming in via bonds, T-bills, money market funds, stocks and real estate. In other words, the wealthy investor never feels pressured to "make money" in the market.

The wealthy investor tends to be an expert on values. When bonds are cheap and bond yields are irresistibly high, he buys bonds. 

When stocks are on the bargain table and stock yields are attractive, he buys stocks. When real estate is a great value, he buys real estate. When great art or fine jewelry or gold is on the "give away" table, he buys art or diamonds or gold. In other words, the wealthy investor puts his money where the great values are.

And if no outstanding values are available, the wealthy investors waits. He can afford to wait. He has money coming in daily, weekly, monthly. The wealthy investor knows what he is looking for, and he doesn't mind waiting months or even years for his next investment (they call that patience).

But what about the little guy? This fellow always feels pressured to "make money." And in return he's always pressuring the market to "do something" for him. But sadly, the market isn't interested. 

When the little guy isn't buying stocks offering 1% or 2% yields, he's off to Las Vegas or Atlantic City trying to beat the house at roulette. Or he's spending 20 bucks a week on lottery tickets, or he's "investing" in some crackpot scheme that his neighbor told him about (in strictest confidence, of course).

And because the little guy is trying to force the market to do something for him, he's a guaranteed loser. The little guy doesn't understand values so he constantly overpays. He doesn't comprehend the power of compounding, and he doesn't understand money. He's never heard the adage, "He who understands interest -- earns it. He who doesn't understand interest -- pays it."The little guy is the typical American, and he's deeply in debt.

The little guy is in hock up to his ears. As a result, he's always sweating -- sweating to make payments on his house, his refrigerator, his car or his lawn mower. He's impatient, and he feels perpetually put upon. He tells himself that he has to make money -- fast. And he dreams of those "big, juicy mega-bucks." In the end, the little guy wastes his money in the market, or he loses his money gambling, or he dribbles it away on senseless schemes. In short, this "money-nerd" spends his life dashing up the financial down-escalator.

But here's the ironic part of it. If, from the beginning, the little guy had adopted a strict policy of never spending more than he made, if he had taken his extra savings and compounded it in intelligent, income-producing securities, then in due time he'd have money coming in daily, weekly, monthly, just like the rich man. The little guy would have become a financial winner, instead of a pathetic loser.

RULE 4: VALUES: The only time the average investor should stray outside the basic compounding system is when a given market offers outstanding value. I judge an investment to be a great value when it offers (a) safety; (b) an attractive return; and (c) a good chance of appreciating in price. At all other times, the compounding route is safer and probably a lot more profitable, at least in the long run.

What Retirees Fear The Most?



Without more investment capital coming from their human asset through earned income and more savings; it is extremely tough to fight future inflation with only their financial assets without using assets draw-down strategy. They will need superior investing skills to grow their investment portfolio and investment income over market cycles to be sustainable.

The Road to FI 2.0 from FI 1.0  is so much tougher without the assistance and financial support from his human asset.

Still want set Goal for it and get Poke again!












Saturday, 16 January 2016

STI ETF : Let Double it???


"Passive" Investing. Let double it to 2009 low!

Doable?



Friday, 15 January 2016

What do seasoned retail lnvestors fear the most?


Read? What do Traders fear the most?

You know his answer. Right?

What do seasoned retail Investors with adequate level of stocks holding and strong war chest fear the most?
  


Slowly scroll ...


















War Chest: Collect interests

Stocks holding : Collect Dividends

 So, we either collect interests from our war chest or collect dividends from our stocks holding.

Flat market: Collect dividends from our stocks holding AND collect interests from our war chest.

Falling market: Buy slowly, reduce our war chest, reduce interests but increase dividends.

Rising market: Sell slowly, increase our war chest, increase interests but reduce dividends.

How fearful can it be?





STI History Since 1990 Major Data Points : Bare All For You To See Closely!





Are these data or information?

It is for you to think over it. LOL!



































































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