I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!

Click to email CW8888 or Email ID : jacobng1@gmail.com

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

Thursday 27 February 2014

SCI : Can break out of $5.50 this time???

Warren Buffett's Secret Sauce

By John F. Wasik

Warren Buffett knows more about investing than a room full of celebrity chefs know about cooking. But he has secret sauce that has worked for him over the course of a half century that he’s not entirely sharing.

In a recent Fortune blog, the oracle of Omaha shared some of his advice on long-term investing. He bought a farm and some real estate near New York University and held onto them. Surprise! They rose in value.
Yet what Buffett rarely acknowledges these days is a prime source for his long-term strategy: John Maynard Keynes.

Yet when I asked him (through his assistant) how Keynes influenced his investment philosophy when I was researching my book Keynes’s Way to Wealth, Buffett’s reply was that Keynes had no influence on his strategy. This surprised me, since Buffett has quoted Keynes over the years and told people to read Keynes to get a grounding in fundamental investing. He said this in an interview with Business Wire (which is owned by his company Berkshire Hathaway):

“Mr. Buffett said if you understand chapters 8 and 20 of The Intelligent Investor (Benjamin Graham, 1949) and chapter 12 of the General Theory (John Maynard Keynes, 1936) ‘you don’t need to read anything else and you can turn off your TV.’”

And Buffett said in 1991 that Keynes was a man “whose brilliance as a practicing investor matched his brilliance in thought.”

The Graham-Keynes-Buffett Connection

Buffett’s reference to Graham’s book, originally published in 1949, is understandable since Graham was Buffett’s mentor and was a giant in investment methodology and the “value school” of investing, which Buffett has championed his entire career.

But where does Keynes fit into the Buffett worldview? Although Buffett has not acknowledged as much in recent years, Keynes’s prosaic chapter 12 in his otherwise turgid 1936 “General Theory” must have made a significant impression.

Keynes may have been the original value investor who realized in the late 1920s that chasing the market with grandiose theories was a fool’s errand. Like Graham, Keynes lost a fortune in the crash of 1929 after losing a smaller sum in 1920 while speculating on European currencies. Yet Keynes learned his lesson and changed his thinking at a time when most investors thought holding stocks was like throwing a match in a gasoline can.

Here’s Keynes, in a letter to insurance executive F.C. Scott in 1934:

“As time goes on, I get more and more convinced that the right method in investment is to put fairly large sums into enterprises which one thinks one knows something about and in the management of which one thoroughly believes. It is a mistake to think that one limits one’s risk by spreading too much between enterprises about which one knows little and has no reason for special confidence… One’s knowledge and experience are definitely limited and there are seldom more than two or three enterprises at any given time in which I personally feel myself entitled to put full confidence.”

Here’s Buffett from his Fortune blog:
“You don’t need to be an expert in order to achieve satisfactory investment returns. But if you aren’t, you must recognize your limitations and follow a course certain to work reasonably well. Keep things simple and don’t swing for the fences. When promised quick profits, respond with a quick `no…’ Forming macro opinions or listening to the macro or market predictions of others is a waste of time. Indeed, it is dangerous because it may blur your vision of the facts that are truly important.”

Keynes again on making long-term investments (from 1934):

“Investing is an activity of forecasting the yield over the life of the asset; speculation is the activity of forecasting the psychology of the market.”

Buffett from his blog:

“If you instead focus on the prospective price change of a contemplated purchase, you are speculating. There is nothing improper about that. I know, however, that I am unable to speculate successfully, and I am skeptical of those who claim sustained success at doing so.”

Whatever source is moving Buffett, as you can see, the intellectual groundwork had been laid by Keynes — and Graham. It’s not known if Graham connected with Keynes during the time that both investment savants developed their value investing theories.

I tried to find correspondence between Keynes and Graham when I was researching my Keynes book at Cambridge University. I didn’t find anything, although that doesn’t mean that they didn’t know of each other’s activities.

Keynes was a celebrity during the 1920s and 1930s. His talks on investing were well attended during the time he managed The King’s College/Cambridge fund, two insurance company portfolios and money for himself and famous Bloomsbury Group friends.
Although his fame as an economist is global, Keynes’s stunning success as a professional investor is not well known, even among economists.

When I asked Prof. Paul Krugman after a Chicago talk last year if he was familiar with Keynes’s investment record, he replied that he wasn’t familiar with that part of his life. And this coming from a Nobel Prize winner who is one of the world’s leading Keynesians!

Utlimately, it doesn’t matter who takes the credit for long-term investing principles that build wealth without churning your stomach at every market turn.

If you seek long-term value in businesses that will be around in every market cycle, generate cash and dividends, you will probably make money. The key to success is not only holding onto those stocks through thick and thin, but holding onto the idea of selecting those investments with great care.

John F. Wasik is the author of Keynes’s Way to Wealth: Timeless Investment Lessons from the Great Economist and 13 other books.  An investor protection advocate, he speaks and writes regularly on investing, economics and personal finance.

Rotary back in black with S$5.17m Q4 net profit

Rotary Engineering, a mainboard-listed oil and gas infrastructure services company, on Thursday posted a net profit attributable to owners of S$5.17 million for the fourth quarter ended Dec 31, 2013 (Q4 2013), reversing a net loss of S$18.4 million a year ago.

Revenue more than doubled from S$84.3 million a year ago to S$181.5 million in Q4 2013, due to "the execution of major projects secured at the beginning of this year", Rotary said.

For the full-year, net profit surged to S$20.7 million, compared to the previous year's net loss of S$80.4 million, while revenue grew 34 per cent to S$595 million, also from the execution of major contracts secured at the beginning of the year.

Singapore contributed 56 per cent of the group's full-year revenue, while overseas operations, which comprise projects in Middle East and Asean, accounted for the rest.

Swiber swings to record profit

Josh Lewis                   

Singaporean service provider Swiber Holdings posted a rise in profits for 2013 on the back of a surge of sales in South-East Asia.

The company posted a profit of US$90.9 million, up 45.3% from 2012's net profit of US$62.5 million.

The jump in profits came as revenues climbed 11.2% year-on-year, from US$952.2 million to nearly US$1.1 billion.

Swiber attributed the increased result to a 75.3% surge in sales in the South-East Asia segment to US$780.8 million.

“We are pleased to have delivered our second consecutive year of record-high revenue and net profit,” Swiber chief executive Francis Wong said.

“The South-East Asian market, where we enjoy a long and solid track record, remains strong, given expected accelerated oil and gas exploration to boost domestic oil production in this region. We remain bullish on rest of Asia too, where rig demand is expected to be strong for the next few years.”

He added that the company was well positioned to expand its market growth and was looking to replicate its success in the South-East Asian market by increasing its foothold in the Latin American market.

As of 31 December the company's order book stood at roughly US$800 million.


Sembcorp Marine nabs $1.08bn in drillship contracts

Swiss-based Transocean has awarded two $540 million contracts for a pair of drillships to Sembcorp Marine’s subsidiary Jurong Shipyard in Singapore.

Wednesday 26 February 2014

Learn from late Uncle Chua???

Uncle8888 has met someone last week for lunch meeting.

Told him we can learn from late Uncle Chua.

Read? Uncle Chua's investing skills

What are the two lessons we can learn from him - an illiterate?

Making money from stocks is not about how good we are at prospecting business or doing deep dive analysis into companies; otherwise full time professional analysts will be very rich and retire early to manage their own investment portfolio.

Lesson one: You have large war chest during market crash and dare to buy big.

Lesson two: Replenish your war chest for the next market crash and patiently wait to repeat lesson one.

You don't think so?

Sembcorp Marine's subsidiary inks US$214.3 million contract to supply jack-up rigs

A subsidiary of Sembcorp Marine - PPL Shipyard - inked a US214.3 million (S$271.3 million) contract with a unit of Marco Polo Marine (MPM) to supply a turnkey jack-up rig.

The contract includes an option for two similar jack-up rig units to be exercised by MPM, the company said on Wednesday.

The rig is scheduled for delivery in the fourth quarter of 2015, and is able to operate in deeper waters of 400 ft and drilling high pressure and high temperature wells to depths of 30,000 ft.

Mr Seah Lee Yun Feng, the group chief executive of MPM, said the agreement with PPL Shipyard "marks the start of a significant leap forward in terms of our operations and service offerings".

Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (3)

Read? Yield of dreams: Investors have "a once in a lifetime opportunity" in blue chips (2)

26%, 12% and 8% per annum respectively.

SCI is now a slow and steady growing utility company for dividend play.

It will be nice to collect many more years of dividends without doing anything.

The Power of Zero-cost Growth!

Sembcorp Delivers Robust FY2013 Performance

- Utilities business achieves strong profit growth of 20%

Sembcorp Industries (Sembcorp) delivered a robust performance for the full year 2013 (FY2013). Net profit grew 9% to S$820.4 million from S$753.3 million in FY2012, while turnover increased 6% to S$10.8 billion from S$10.2 billion the previous year. The Utilities and Marine businesses continued to be our main profit contributors, accounting for 51% and 39% of Group net profit respectively.

In FY2013 the Utilities business delivered strong profit growth of 20%, with net profit increasing to S$449.9 million from S$374.6 million in FY2012, underpinned by solid growth from China and gains from the initial public offering (IPO) of Sembcorp Salalah Water and Power Company (Sembcorp Salalah) in Oman. The Marine business reported a net profit of S$336.9 million in FY2013, up 3% from S$326.7 million in FY2012. Meanwhile, the Urban Development business reported a 22% increase in net profit to S$50.2 million from S$41.1 million the previous year.

Return on equity for the Group was 17.1% and earnings per share amounted to 45.7 cents. Economic value added was a positive S$619.5 million while cash and cash equivalents stood at S$2.3 billion.

In the fourth quarter of 2013 (4Q2013), Group net profit grew 9% to S$223.8 million from S$204.7 million in 4Q2012, while turnover increased 6% to S$3.0 billion compared to S$2.8 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “Sembcorp delivered a strong performance in 2013 with all our businesses delivering profit growth. Demonstrating the success of our global growth strategy, our Utilities business saw its net profit up 20% and profit contribution from its overseas operations increasing to over 50%.

“During the year, we created value for shareholders by successfully developing and then selling down our stake in the Salalah Independent Water and Power Plant through an IPO in Oman. With this, the board is pleased to propose a total dividend of 17 cents per ordinary share, including a bonus dividend of 2 cents per ordinary share.

“With a strategic presence in key emerging markets, significant growth in capacity and a strong Marine orderbook of S$12.3 billion, Sembcorp continues to be well-positioned to deliver sustainable long-term growth.”

2013 Dividend

The Board of Directors is pleased to propose a final tax exempt one-tier dividend of 17.0 cents per ordinary share comprising an ordinary dividend of 15.0 cents and a bonus dividend of 2.0 cents. If approved by shareholders, this will be paid on May 16, 2014.

FY2014 Outlook


In 2014, Utilities’ underlying core business is expected to deliver a steady performance compared to 2013.

2014 will see continued growth from our overseas operations. Strategically positioned in key emerging markets, the business continues to focus on its significant growth in capacity.


The Marine business has a net orderbook of S$12.3 billion with completions and deliveries stretching into 2019.

Moving ahead and in anticipation of the tight labour supply situation, the business will further improve operational efficiency, productivity and safety management as well as ensure timely delivery of projects to its customers, although margin remains challenging. Demand remains strong at the new Sembmarine Integrated Yard @ Tuas. Construction of its wholly-owned shipyard in Brazil remains on track to commence initial operations in the second half of 2014.

Urban Development
The Urban Development business is expected to deliver a better performance in 2014, underpinned by land sales in its new urban developments in China and Vietnam.

With a strategic presence in key emerging markets, significant growth in capacity and a strong Marine orderbook, Sembcorp is well-positioned to deliver sustainable long-term growth.

Highlights from Sembcorp’s FY2013 Financial Results

• Turnover at S$10.8 billion, up 6%
• Profit from Operations* at S$1.3 billion, up 4%
Net Profit at S$820.4 million, up 9% • EPS at 45.7 cents
ROE at 17.1% • Proposing a final tax exempt one-tier dividend of 17.0 cents per ordinary share, comprising an ordinary dividend of 15.0 cents and a bonus dividend of 2.0 cents

*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).

- END -


Tuesday 25 February 2014

Book : Better Stock Trading: Money and Risk Management

We may have read many books and countless of articles in the Internet on investing.
How many such readings have transformed into our own personal success in investing?
Uncle8888 has learnt one thing from Daryl.
It is zero-cost averaging. He has copied it with great success.
He called it Pillow Strategy.

Sembcorp Grows its Renewable Energy and Industrial Water Operations in China

- Expands wind power capacity in Huanghua, Hebei province, by almost 50%
- Doubles industrial water capacity in Nanjing, Jiangsu province

Sembcorp Industries (Sembcorp) continues its growth momentum in China with the expansion of two of its utilities facilities – its wind power plant in Huanghua, Hebei province, which will see its wind power capacity increase by almost 50%, and its industrial water plant in Nanjing, Jiangsu province, which will have its industrial water capacity doubled. Besides meeting the country’s growing energy and water needs in a sustainable manner, the expansions also demonstrate the Group’s focus on growth in China, a key market for Sembcorp.

Expansion of wind power capacity in Huanghua

Sembcorp will build, own and operate an additional 48-megawatt wind farm in Huanghua, through its joint venture with Guohua Energy Investment Co. The RMB454.9 million (approximately S$94.4 million) expansion will increase the wind power capacity in Huanghua by almost 50%, from 99 megawatts to 147 megawatts, and is expected to be completed by the first half of 2015. This expansion will also increase the Group’s renewable energy capacity worldwide to 380 megawatts.

The total project cost will be funded through a mix of equity and borrowings. With its 49% stake in the joint venture, Sembcorp’s share of the equity investment will amount to RMB78 million (S$16.2 million), which will be financed by internal funds.

This expansion is in line with the Group’s commitment to grow its renewable energy portfolio as a responsible energy player, and to help China achieve its environmental goals. Hebei province has a provincial-level 12th Five-year Plan for Energy Conservation and Emission Reduction that aims to reduce carbon emissions. In keeping with this objective, Hebei has been promoting the wind power industry across the province to reduce dependence on traditional energy sources and increase the proportion of energy produced from renewable sources.

Expansion of industrial water capacity in Nanjing

In addition, Sembcorp will be doubling its industrial water capacity from 120,000 cubic metres per day to 240,000 cubic metres per day in the Nanjing Chemical Industrial Park (NCIP), Jiangsu province.

The total expansion cost will amount to RMB65.2 million (approximately S$13.5 million), which will be funded through a mix of equity and borrowings. Expected to be completed by mid-2015, the expansion will be undertaken by Sembcorp NCIP Water, a 95:5 joint venture between Sembcorp and NCIP Utilities Co. Sembcorp’s share of the equity investment of RMB24.8 million (S$5.1 million) will be financed by internal funds.

An established developer, owner and operator of utilities assets, Sembcorp currently has 24 operations across China. The Group has been present in the Nanjing Chemical Industrial Park since 2005. Driven by strong demand, Sembcorp will be able to serve the fast growing water needs of existing and potential customers in the industrial park by doubling its industrial water capacity to 240,000 cubic metres per day.

Alan Yau, CEO of Sembcorp China, said, “These two expansions are in line with our China growth strategy and exemplify our firm focus in this important market. With our commitment as a responsible energy player and track record in specialised water solutions for industry, we help meet China’s growing demand for energy and water, while supporting the government’s pledge to limit environmental impact.

“With the increasing emphasis on environmental protection, renewable energy and other new energy resources have been earmarked as key development sectors in China’s 12th Five-year Plan. Sembcorp supports this agenda with our renewable wind power plants in China. In particular, with our Huanghua wind power plant strategically located in Hebei, we play a part in reducing air pollution in the province.”

Sembcorp has invested in energy and water assets in the China market for over a decade and its utilities presence now spans 10 provincial regions across the country.

These two expansions are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.

- END -

Monday 24 February 2014

A Word of Warning on Gold: Investor Fear May Be Fading


Singapore's Sembcorp Marine Q4 net profit rises 9.2%

[SINGAPORE]Singapore's Sembcorp Marine Ltd, one of the largest offshore drilling rig producers in the world, said its net profit in the fourth quarter rose 9.2 per cent as higher operating profit offset lower contributions from associates and joint ventures.

Sembcorp Marine, which is the world's second-largest jackup rig producer after crosstown rival Keppel Corporation Ltd, posted a fourth-quarter net profit of S$182.4 million (US$143.89 million). Its full-year net profit rose 3.2 per cent to S$555.7 million, above a mean forecast of 23 analysts of S$528.50 million.

The company's order book fell to S$12.3 billion from the all-time high of S$13.5 billion a quarter earlier.

Sembcorp Marine is the second-worst performer so far this year on Singapore's benchmark Straits Times Index, losing about 8 per cent after Genting Singapore PLC's 9 per cent drop.

Singapore’s inflation at 4-year-low in January

SINGAPORE: Singapore's consumer price index (CPI) rose 1.4 per cent in January from a year ago, slowing from December's 1.5 per cent increase as the lower cost of transportation offset a rise in food prices.

The 1.4 per cent gain in January's CPI was the lowest since February 2010 when prices rose 1.0 per cent.

Food prices increased 3.0 per cent last month from a year ago, partly due to this year's Chinese New Year celebration taking place in January instead of February.
But transport costs fell 2.7 per cent year-on-year.
The majority of economists had expected inflation to pick up slightly in January, with the median estimate at 1.6 per cent.
Looking ahead, the Monetary Authority of Singapore and Ministry of Trade and Industry said they expect inflation to pick up in coming months as rising wages lead to higher prices of domestic consumer services.
They said core inflation -- which in Singapore excludes the cost of housing and private road transport -- is expected to rise over the next few quarters and average 2-3 per cent in 2014.
As for the CPI, it will most likely increase by 2-3 per cent for the whole of 2014.
Singapore's CPI rose 2.4 per cent last year. 

Sunday 23 February 2014

Book : Stop Not Till the Goal is Reached

 Now, we have a book with this title: Stop Not Till the Goal is Reached.

 Who are those still insisting that goal is not necessary?


Read? No Goal. No Aim. No Dream. You are more likely to end up as an Average in your 60s! (2)


Let it go or Hold it tight???

Just For Thinking ....

Read? Let it go or Hold it tight?

Over many seasons of cold winter in the stock market, you have to be really good in one of these actions; otherwise you might be dead before the next winter season.

Let it go!


Like these migrating animals



Hold it tight!




Never wonder around in the long winter season thinking that you can survive the long winter without let it go or hold it tight hor!

Get it?

A bird in hand: Cum Dividend now!

"Lan Jiao" (bluebirds) yield now (cum dividend)

Oil and gas sector shows strong signs of recovery

Let it go or Hold it tight???

Just For Thinking ...

Some of us are still waiting while others may have jump into it for some income dividends to reduce more money rotting in the bank.


Let it go or Hold it tight?
A bird in the hand is worth two in the bush. Right?

A bird in the hand?


It is better to focus on the bird (dividend income) in the hand, and rather not waiting to catch uncertain growth-dividend or multi-baggers at the next Fat Bear.

How many birds in the bush you will need to catch in order to beat that one bird in the hand for waiting that many years?

You may need to do some homework here.

Looking at the magic of compounding return.


Saturday 22 February 2014

Cost of outsourcing your investment e.g. STI ETF (3)

Just For Thinking ...

When they claim that these are low-cost funds.

Low-cost based on what?

(1) As % of Net Asset Value


(2) As % of Net Cash Flow


(3) % of whatever

Anyone did some serious homework themselves to verify these low-cost funds?

Can share?

Read? Cost of outsourcing your investment e.g. STI ETF (2)

STI Major Data Points since 1990

Just For Thinking ...

TA: Can be as simple as you like and you don't have to take a paid TA course to do it.

Only for those who may like to think of doing some homework themselves ...

Read? Fundamental or Technical Analysis? - Revisit 3

Uncle8888 simply uses support and resistance for his simplified TA.

All these lines were pre-drawn to be carry forward into the future of STI movement.

You may check back in those older blog post to verify.


You can see it for yourself and feel it with your own feeling.

Chun bo?

Changes to CPF contribution rates from January 2015

Employer contribution rates to the Medisave Account (MA) will be increased for all workers to help them save more for healthcare needs. Workers aged above 50 to 65 will see an additional increase in the employer contribution rates to the Special Account (SA) to help them save more for retirement.

Employee contribution rates to the Ordinary Account (OA) will increase for workers aged above 50 to 55.

The table below shows these increases in CPF contribution rates for Singapore Citizens (SCs), and for Singapore Permanent Residents (SPRs) from their 3rd year of obtaining SPR status.

Increases in CPF contribution rates for SCs and SPRs from January 2015
Employee's age (years) Percentage point increase in CPF contribution rates (for wages ≥ $750) Allocation of increase
Contribution by employer Contribution by employee Total OA SA MA
50 and below +1% - +1% - - +1%
Above 50 - 55 +2% +0.5% +2.5% +0.5% +1% +1%
Above 55 - 60 +1.5% - +1.5% - +0.5% +1%
Above 60 - 65 +1.5% - +1.5% - +0.5% +1%
Above 65 +1% - +1% - - +1%

Medisave contribution rates for Self-Employed Persons (SEPs) with annual net trade income of $18,000 and above will be raised by 1%.

The rates in the table below are applicable to SEPs for annual net trade income from 2015.

Contribution rates applicable to SEPs from 2015
Annual net trade income (from 2015) Age as at 1 January of work year
Below 35 years 35 to below 45 years 45 to below 50 years 50 years and above
Above $6,000 to $12,000 4% 4.5% 5% 5.25%
Above $12,000 to $18,000 Phased in* from 4% to 8% Phased in* from 4.5% to 9% Phased in* from 5% to 10% Phased in* from 5.25% to 10.5%
Above $18,000 8%

(Maximum $4,800)

(Maximum $5,400)

(Maximum $6,000)

(Maximum $6,300)
*Please refer to the CPF website for the phased-in rates.

Friday 21 February 2014

Retirement Income for Life??? (12) - Re-posting

He keeps saying he wants to retire early.

So, Uncle8888 passed him this retirement planning Excel worksheet.

After simulating with the retirement planning Excel worksheet, he realizes that he will need 13% ROC.

Uncle8888 told him frankly that he is still far away from early retirement.
He will need to save more and invest for higher growth.
13% is a tough number to achieve.
5-6% ROC is more reasonable.

Read? Retirement Income for Life??? (12)

Book : All About Low Volatility Investing

Buay tahan volatility?

May be you should borrow this book from NLB to find out to avoid it.

Noble's 2013 profit down by nearly half

NOBLE Group's 2013 earnings tumbled 48 per cent to US$243 million, as losses on supply chain assets and from associates spiked.

Net profit attributable to shareholders fell to US$243.5 million, from US$471.3 million a year ago. This translates to earnings of 3.4 US cents per share, compared with 7.06 US cents before.

Revenue inched up 4 per cent to US$97.8 billion.

The group's losses on supply chain assets spiked from US$488,000 in 2012 to US$65.8 million, while its share of losses from associates rose seven-fold from US$14.8 million to US$106.1 million.

ONGC search for jack-ups as it eyes drilling boost


India’s state-owned Oil & Natural Gas Corporation (ONGC) is on the hunt for a number of jack-ups that can drill in water depths of 300 feet.

CW8888: You can see for yourself the quality of Mgmt.


Wednesday 19 February 2014

Classes of retirees - Revisit

Why more money during retirement is much better?

Last Tuesday, Uncle8888 went to Old People's Park Centre and Chinatown jalan jalan and makan makan.

Try the famous Hong Kong Soy Sauce Chicken Smith St Food Centre #02-127.

Long queue as expected.

At Old People's Park Centre's food centre, he still see the same thing:

  1. They were happily drinking cold beer and eating roasted duck, pork belly and char siew and cheering each other.
  2. They were happily drinking MacCoffee and chatting at one cozy corner inside MacDonald and enjoying air-con.
  3. They were happily drinking kopi-o at the coffee stall and chatting in the natural afternoon air flow.
  4. They were sitting at the bench and staring at the crowds.

Read? Classes of retirees

CapitaLand's Q4 profit falls 45% on one-off loss

[SINGAPORE] Singapore's CapitaLand Ltd , Southeast Asia's largest property developer, said on Wednesday its fourth-quarter profit slumped 45.6 per cent on the year on a one-off loss on divestment of part of its Australand stake.

CapitaLand, which operates in Singapore and China among other countries, reported a profit after tax and minority interest (PATMI) of S$142.9 million for the October-December quarter.

The loss on the Australand Property Group stake sale in November also affected CapitaLand's full-year profit. Its 2013 PATMI dropped 8.7 per cent from a year earlier to S$849.8, undershooting an average forecast of S$976 million by five analysts polled by Reuters.

Operating PATMI, a gauge of profitability of core business, was S$527.7 million for the year, below a forecast average of S$555.7 million.

Tuesday 18 February 2014

Biosensors share price jumps on rumours of China Citic's interest

Citic Private Equity Funds Management Co. is considering buying full control of medical devices maker Biosensors International Group Ltd., two people with knowledge of the deliberations told Bloomberg - PHOTO: BIOSENSORS INTERNATIONAL GROUP 

CITIC Private Equity Funds Management Co is considering buying full control of medical devices maker Biosensors International Group Ltd, two people with knowledge of the deliberations told Bloomberg.

The wire agency said the Beijing-based firm, an arm of China's state-backed Citic Group Corp. conglomerate, is in talks with several banks about financing for a deal. It owns about 22 percent of the Singapore-listed company, which had a market value of S$1.5 billion ($1.2 billion) as of Monday.

On Tuesday, Biosensors shares opened at 87 cents each before jumping to S$1.03. They are currently trading around S$1, up 13 cents or 15 per cent, the biggest intraday gain since September 2010, prompting a query from the Singapore Exchange. 

Sources told Bloomberg that Citic Private Equity is considering an offer for the rest of Biosensors after the company lost about half its value from a February 2012 peak.

Real income up for most working household

Singapore's median household income from work rose to S$7,870 in 2013, up 4 per cent from the year before. Taking inflation into account, the real income growth is 1.6 per cent, according to the Department of Statistics 2013 report on key household income trends.

SINGAPORE: The gap between the rich and poor in Singapore narrowed to its smallest in years, according to an annual report titled "Key Household Income Trends, 2013" by the Department of Statistics.

Last year, real income also went up for all working households, except for those in the top 10 per cent income bracket.

In 2013, Singapore's median monthly household income was S$7,870. Taking into account inflation, this is a 1.6 per cent increase from the year before.

For per household member, the increase is 3.2 per cent.

However, for the top 10 per cent of earners, the income per household member fell 5.2 per cent.

Among top earners, households with at least one member who was an employer saw the largest drop of 11 per cent in average household income per member.

Households headed by managers also saw a larger decline of 8.7 per cent, compared to those headed by professionals (+1.5 per cent), and associate professionals and technicians (-3.7 per cent).

Nevertheless, over the last five years, real incomes across all brackets still rose.

From 2008 to 2013, the median household saw its monthly income grow 11 per cent in real terms.

Experts say the pervasive real income growth was no surprise, given Singapore's better than expected economic performance in 2013 but Dr Tan Ern Ser, a sociologist at National University of Singapore, said the happy figures do not always reflect perceptions on the ground.

Dr Tan said: "I think the low income do feel they benefited from the government transfers but maybe the same cannot be said for the middle income. It's about expectations. I think the middle-income expect more, and if they're not getting as much as they expected, they may still feel that the figures don't really reflect their true sentiments or feelings about the whole matter."

The report also highlighted the country's narrower income gap in 2013.
Singapore's Gini coefficient, a measure of inequality, fell to its lowest at 0.412 in more than 10 years -- if government transfers and taxes are included.

Without government transfers, the Gini coefficient still fell from 0.478 in 2012 to 0.463 in 2013.

The report said various government schemes gave a boost to resident households living in smaller HDB flats.

Households in HDB 1- and 2-room flats received S$8,630 per household member on average from the government, higher than the S$7,210 in 2012.
Annie Koh, associate professor of finance at the Singapore Management University said: "This government transfer element, there's nothing wrong with it. People might think, oh these are all schemes to move towards an election year, but this is what's happening across many (countries in the) developed world.

"If you leave it to market forces, you're going to see widening income gaps, and there're a lot of these trans-generational transfers, and taking from the richer in order to transfer so that you have more inclusive growth."

Looking ahead, while more government schemes may be expected, Dr Tan said Singapore's social safety nets will also remain focused on the idea of self-reliance.

"As a basic principle, it's still always about self-reliance but I can see that in the last few years, there have been a lot more transfers, in terms of subsidies. Going forward, there will be more, but at the same time I believe the principle remains, to ensure whatever programme we put forth is sustainable," said Dr Tan.

Simple Asset Allocation : Only two classes!

Uncle8888's simple asset allocation strategy:

Two classes only: Volatile and Non-volatile

Asset Class 1: Volatile asset that is marked to current market price to generate investment income.It can expand or contract.

Asset Class 2: Non-volatile asset has been planned for draw-down when necessary to meet any shortfall in investment income generated from Asset Class 1. (Target: To be at least 67% of yearly household expenses @ 3% inflation rate till 2036)

A worry less model in an uncertain future market?

Monday 17 February 2014

How are you preparing financially for your kids' university education???

Read Uncle88888's plan? Over Long Term We Are Safe?

55% of Singaporean parents not financially prepared for kids' education

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