18th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 17th New Record set by Uncle8888's Investment Portfolio in 2014


Another moment of happiness is here. 


This Bull made me smile. Seize the day!

Long On Keppel Corp If You Can Afford It

Read? Long On Keppel Corp If You Can Afford It


Wah!

Expensive stock!

 

Speculating or Gambling???

Buy Quick Picks is Gambling?

Pick your own Numbers is Speculating?

Passive Income??? Why must have more of it! (2)

Read? Passive Income??? Why must have more of it!


What is Passive Income?



First, See it for yourself. 

Where does passive income come from?

Second, Measure it.


What do you need to do to get it?


1. Return per Unit Time (What is the dollar value for monetizing your waking time?)

2. Return per Unit Stress (How stressful for you to get paid for doing it?)



Even begging for money is not passive income. Right?

17th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 16th New Record set by Uncle8888's Investment Portfolio in 2014


When Market throws you .....

What would you do?

 

Why Uncle8888 likes The Motley Fool Singapore???

Now Uncle8888 can conveniently read The Motley Fool Singapore in one of his blog links.

Uncle8888 read this .... Ha Ha!

 
We regular bus riders can be a strange lot, sometimes. If you want proof, just take a good look around the next time you hop on board a bus in Singapore.
 
For instance, we have the “aisle-hoggers”. These are the people who – once they secure an aisle seat on the bus – will steadfastly refuse to budge. It seems that the simple act of shifting over to the seat by the window – to let another passenger sit down more easily – is almost as painful as having teeth pulled.

Next, we have the “exit-hoggers”. These commuters can be almost as exasperating as the aisle-hoggers. They spend most of the bus journey milling around the exit door, even if they don’t intend to disembark for some time. Until they do get off the bus though, they make it awkward for anyone else to alight easily.

Why do people do this?

Quite frankly I have no idea. It is almost as though they are terrified that they might not be able to get off the bus when they want. But to my knowledge, no one has ever been held against their will on a Singapore bus.

Leave when you want

Something similar goes on in the stock market. It seems that no sooner has someone bought a stock than they are already planning an exit strategy. They are already looking at how to dump the stock they have only just purchased.

Taking profit, it has to be said, can never be a bad thing. After all, no one ever went broke by taking a profit. But simply selling a stock because we have made a quick buck misses the point behind investing, altogether.

For instance, did you know that no fewer than eight constituents of the Straits Times Index (SGX: ^STI) have delivered total returns in excess of 20% a year over the last decade? These include casino operator Genting Singapore (SGX: G13), Singapore Exchange (SGX: S68) and industrial conglomerate Sembcorp Industries (SGX: U96).

A 20% return means than an investment in any one of the eight companies in 2004 would have sextupled over ten years. Or to put it in even simper terms, a $5,000 investment would have turned into $30,000 after just ten years, if you had bought, held and reinvested the dividends.


Read? Would You Like A 20% Annual Return?


Read?Articles for Sembcorp Industries Ltd. (SGX: U96)


Why Uncle8888 likes The Motley Fool Singapore?


The Motley Fool Singapore often made him smile.













You know why. Right?

What is your best guess?
 

STI is a STALE BULL???

What did you see?

STI is a STALE BULL?

May be ...









May those who believe in blue chips huat; especially for those on the three local banks: DBS, UOB, and OCBC!

You Can't Predict. You Can Prepare - Updated on 25 Jul 2014

Read? You Can't Predict. You Can Prepare - Updated on 25 Jan 2014

Just about everything is cyclical.

Nothing goes in one direction forever.

Tree’s don’t grow to the sky. 

Few things go to zero.

Cycles always prevail eventually.

- Howard Marks

BTW, how are you preparing for it?

Uncle8888's Game Plan 2014

Stress Test on Investment Portfolio for the next Fat Bear!

When the next Fat Bear strikes!

(Carnegie 49)

 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.






 Stress Test on Investment Portfolio for the next Fat Bear!


Current Portfolio @ 25 Jul 2014

Assumptions

1. Doing nothing now i.e. no more re-balancing of portfolio.

2. Current holding stocks drop 50% from last Friday market closing price.

3. Start deploying War Chest after STI turns Bear i.e. drop of 20% from its recent peak.

4. New positions from War Chest drop an average of 30% from their initial investment cost.

 

Stress Test Result:

 



Benchmark against CPF OA rate @ 2.5% return?

Just don't feel that bad at market low should be okay.

Can recover. Right?

Minimum of 10,000 hours hard work (3)

Read? Minimum of 10,000 hours hard work (2)

Few months ago, Uncle8888 showed this chart to a few colleagues what can be achieved from SERIOUS long-term investing and the number of hours we must commit ourselves to up skill our investing knowledge and skills; and to formulate and continuously revise our investing strategies to meet our financial independence goal.


This 49 age old colleague has been trading and "investing" for years has a mind flip and now committing many hours of his wake time to up skill himself to become SERIOUS retail investor.

Seeing it with our own eyes. 

Hearing it with our own ears. 

Feeling that they are like me. 

We will believe more that this is real!


"Tell a man there are 300 billion stars in the universe and he'll believe you. Tell him a bench has wet paint on it and he'll have to touch to be sure." - Murphy


So did you see stars or bench?

Hunters, Fishermen, and Farmers??? Returns per unit of stress.

Read? returns per unit of stress.

How do we relate returns per unit of stress for our ancestors who were hunters, fishermen, and farmers?

Hunting for meat.

Fishing for fish.

Farming for meat and fish.


Hunting and fishing: It is always begin with starting it all over again on every other day.

Farming: Sustainable over a period of time before restarting it all over again.


To grow your wealth besides your earned income from the day job, who do you want to be?

Hunter, Fisherman or Farmer?



 

The special purpose joint venture will undertake the S$488 million contract for the Land Transport Authority of Singapore for the construction of Marina South station and tunnels for the Thomson Line.

Singapore, July 25, 2014 – Sembcorp Industries Ltd announces that its wholly-owned subsidiary Sembcorp Design and Construction Pte Ltd has entered into a 50:50 project joint venture agreement with Sinohydro Corporation Ltd (Singapore branch). The special purpose joint venture will undertake the S$488 million contract for the Land Transport Authority of Singapore for the construction of Marina South station and tunnels for the Thomson Line. 

The above transaction is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2014.

Professor Sanjay Bakshi on Value Investing Styles

Read? Professor Sanjay Bakshi on Value Investing Styles

CW8888: Learn something new Today!



Like!
 

Returns Per Unit of Stress

I have absolutely enjoyed practicing all these styles of value investing. Over the years, I also learnt a few additional things. One of them was about the idea of returns per unit of stress.

You can make a lot of money by being an activist investor, which I’ve done in the past. But it’s stressful. You can make a lot of money by shorting over-valued stocks of companies run by promotional and fraudulent managements. But it’s stressful. You can make a lot of money doing risk arbitrage where you have to monitor — perhaps 20 deals at any given point of time and be ready to react quickly when odds change. But it’s stressful.

I found that investing in moats is not stressful. It involves a slow and more meaningful understanding of how a business creates value over the very long term. And boy does it work!

I’d argue that if you pick 100 successful value investors who have compounded their capital over the long term (a decade or more) at a very healthy rate, then the vast majority of them would have accomplished that by first investing in high-quality businesses run by great managers at attractive prices, and then by just sitting on them for a long long time.

Moats are internal compounding machines. History shows that you get rich by just sitting on them because they do all the hard work for you. And I realized that over the years. Just as Mr. Buffett did when he too moved from classic Graham-and-Dodd to moats.

Read? returns per unit of stress.

If one was to think about stressful way of investing vs. a relatively stress-free way of investing, what would the differences look like? The following table offers some suggestions.

High Stress	Low or No Stress
Investing in Highly Leveraged Companies	Investing in Zero or Low Debt Companies
Borrowing to buy stocks	Never borrowing for buying straight equities
High Frequency Trading & Day Trading	Long Term Investing
Shorting	Long Only Investing
Cigar Butts	Moats
Business exposed to Negative Black Swans e.g. Banking and Commodity Trading	Businesses not exposed to black swans
Corporate Governance Issues	No Corporate Governance Issues
High P/E for Growth Stocks	Low P/E for Growth Stocks
Cyclicals	Stable businesses
Hostile Takeovers	Passive Investing
Dealing in F&O	Staying Away from F&O
Trading on Inside Information	Avoiding inside information
Event Driven Investing	Moats Driven Investing

Once you start incorporating return per unit of stress in your investment thinking, the trade-offs become obvious. You would start settling for investment situations which offer a satisfactory return per unit of risk and stress over those which offer high returns per unit of financial risk but low returns per unit of stress. You will slow down and start appreciating the slow process of long-term, stress-free compounding as opposed to nerve-wracking, adrenalin laden high frequency operations in the stock market.


My advice to those who ignore the stress part of the equation but focus only on returns per unit of risk: You cannot take it away with you, so what’s the point of all that stress, just for the money?

16th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 15th New Record set by Uncle8888's Investment Portfolio in 2014



Now the pressure is getting higher for me to be smart enough to turn paper gains to real money and lock it safely.

KNS!
 

Kep Corp: SECOND QUARTER & FIRST HALF 2014 REPORT CARD (2)

Read? Kep Corp: SECOND QUARTER & FIRST HALF 2014 REPORT CARD

 

From CMIB above:


CW8888: Good to note that Keppel;s Can-do drillship is not competing against Koreans as it is hard to compete the Koreans on Drillship.

15th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 14th New Record set by Uncle8888's Investment Portfolio in 2014


Shiok again!

When will the Party end?

405% Yield : One realized multi-baggers stock!

With an interim cash dividend of 12.0 cents per share for Kep Corp, Uncle8888 has achieved another significant milestone benchmarking in his investing journey.


405% Yield on Cost over 13 years or 32% p.a.



Just based on dividends received over 13 years; he has realized one 4 Bagger stock!

Kep Corp: SECOND QUARTER & FIRST HALF 2014 REPORT CARD

1. 2Q 2014 Net Profit up 17% to S$406 million, compared to 2Q 2013's S$347 million.

2. 1H 2014 Net Profit up 6% to S$745 million, compared to 1H 2013's S$704 million.

3. Earnings per Share of 41.0 cents, up 5% from 1H 2013's 39.0 cents.

4. Annualised Return on Equity of 14.3%.

5. 1H 2014 Economic Value Added decreased to S$341 million from S$404 million YoY.

6. Cash outflow of S$785 million.

7. Net gearing of 0.22x.

8. Interim cash dividend of 12.0 cents per share.

Role model leaders: Keppel is Singapore’s most well-governed firm

Singapore Business Review

This year’s high scores declare everyone a winner.

Keppel Corporation climbed up two notches to become Singapore’s most well-governed and transparent company, a point ahead of 2nd placer Singtel.

In a media release, NUS reveals that Keppel fared well in several corporate governance measures used for the GTI. The firm disclosed details on the process of which it appointed its new CEO, including the criteria for CEO succession, in its annual report.

SembCrop Industries clinched 3rd spot with 113 points while Singapore Exchange and SATS Limited followed closely with 112 and 108 points, respectively.

Commissioned by CPA Australia and NUS Business School’s Centre for Governance, the 2014 Governance and Transparency Index (GTI) shows the highest year-on-year increase in Governance and Transparency Index scores, indicating significant corporate governance improvements.

A total of 644 SGX-listed companies were examined for GTI 2014.
Here’s more from NUS:

“The annual trends and detailed GTI rankings over the last six years show that Singapore-listed companies are making positive strides in reinforcing the values of good corporate governance, risk management and transparency, which are at the core of financial infrastructure and foundation. While there is room for improvement among listed companies in the broader market, it is clear that well-governed entities create sustainable value for organisations and are trusted by investors big and small,” said Associate Professor Themin Suwardy, Singapore Divisional President at CPA Australia, which has sponsored the comprehensive study since its inception in 2009.

The GTI 2014 study, released at the CPA Forum organised by CPA Australia, found that the majority of SGX-listed companies have embraced the new Code of Corporate Governance, which came into effect in November 2012. For instance, more companies were found to have disclosed the exact remuneration of both executive and non-executive directors. In addition, more companies now have whistle blowing policies in place and are implementing voting by poll during annual general meetings.

The mean score of the index increased from 38.0 in 2013 to 42.1 this year, marking the highest year-on-year improvement since the index’s inception in 2008. The median score also hit a record of 40, up from 35 last year, indicating the progress in companies’ governance practices.

Lian Beng posts record profit, higher dividends

By lee mei xian

CONSTRUCTION company Lian Beng on Wednesday posted a record net profit to shareholders of S$87.1 million for its full year ended May 31, 2014, a 19.4 per cent increase from a year ago.

Revenue also surged 49.1 per cent to a S$753.9 million - also a record - driven up by higher turnover from its property development segment, arising from sales at its developments M-Space, The Midtown, Spottiswoode Suites and Lincoln Suites.

Revenue from its construction segment - the largest contributor - also rose from higher revenue recognition from its ongoing and new projects, it said.

Lian Beng did not provide a specific set of results for its fourth quarter only.

DBS : Super Resistance to test the bulls - See green arrows

14th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 13th New Record set by Uncle8888's Investment Portfolio in 2014


2013 Records Broken!

Power!

 

 

 STI Bull is still running ....

Singapore inflation eases to 1.8% in June

By Kelly Tay

 

CONSUMER price inflation in Singapore eased more than expected to 1.8 per cent in June from 2.7 per cent in May, mainly on account of a more moderate increase in car prices

CONSUMER price inflation in Singapore eased more than expected to 1.8 per cent in June from 2.7 per cent in May, mainly on account of a more moderate increase in car prices.

The median forecast of 20 economists polled by Bloomberg before the Department of Statistics released the data on Wednesday was for a 2.4 per cent year-on-year rise in the consumer price index (CPI).

The government has also narrowed its inflation forecast for 2014. 

The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in a joint statement that headline inflation is "expected come in at the lower half" of the 1.5-2.5 per cent forecast range.

Said MAS and MTI: "(Headline) inflation is expected to ease in the second half of 2014 due to lower imputed rentals on owner-occupied accommodation and car prices. For the whole year, car prices are now projected to exert a slight drag on overall inflation, given the larger-than-expected increase in car COE (certificate of entitlement) quotas."

Increasing your FQ - some words for the lost investor who knocks here (2)

More than 5 years!

That blog post in 13 Jan 2009 was Uncle8888's response to the Lost Investor who came knocking at his Gmail Inbox. He or she had lost so much money in 2008 until LOST!


Read? Increasing your FQ - some words for the lost investor who knocks here


Isaac Newton once commented that if he had seen farther than others, it was because he stood on the shoulders of giants.
 

So where are the shoulders of giants? 

They are hidden in the pages of books, and in the minds of other Informed Investors. Seek, and you may find!


Probably his or her FQ has improved and recovered from Apr 2009 onwards since Uncle8888 has not heard from him or her anymore. (Reasonable guess. Right?)

We may have mini or micro giants in our local financial blogs. 

Seek and you may find!

DBS

13th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 12th New Record set by Uncle8888's Investment Portfolio in 2014

Shiok!

Match 13 records set in 2013.

STI Bull hasn't stop running.


 

Ocean Mineral Singapore Clears Next Step for Seabed Exploration

Ocean Mineral Singapore Pte. Ltd. (OMS) has received approval from the International Seabed Authority (ISA) on its application for its first seabed exploration licence.

Over the next few months, OMS will work with ISA to finalise the terms of contract for the award of the licence. The licence will allow exploration for polymetallic nodules at a site within the Clarion-Clipperton Fracture Zone of the Pacific.

OMS is a Singapore-incorporated company majority owned by Keppel Corporation, with UK Seabed Resources Ltd, a wholly owned subsidiary of London-based Lockheed Martin UK Holdings Ltd, and Singapore-based private investment company Lion City Capital Partners Pte. Ltd., as minority shareholders.

Mr Ong Ye Kung, director of OMS, said, "We are pleased to have taken another step forward in this long term project. It leverages Keppel's experience in the offshore and marine sector, and we are excited by the opportunities that this venture presents."

Under the exploration licence, OMS intends to conduct environmental studies and to survey for deposits of polymetallic nodules within the approved area. Polymetallic nodules contain copper, nickel, cobalt and manganese, as well as rare earth minerals.

Seabed mineral recovery beyond nations' territorial waters is administered by the ISA established under the United Nations Convention on the Law of the Sea.

How Do You Invest Safely? Uncle8888's views

Read? How Do You Invest Safely?


Only invest your money in the stock market  that you may NOT need in the next 7 year

Why?

Read? The Joseph Cycle

Understand market cycles?


See what you may see like what Uncle8888 saw?

Stock Price Volatility and Paper losses


One good way to handle stock price volatility and paper losses ..

Heart pain is not real PAIN. Don't think. No more pain!





Another better way to handle stock price volatility and no hard earned money losses...


 

Pillow Stocks strategy and sleep on them without more nightmares over market cycles. It is House Money Effect and Other People Money (OPM). Okay lah. Not too bad.

Read? Uncle8888's Pillow Strategy



 

Keppel Infrastructure Trust Unaudited Results For The First Half Ended 30 June 2014

1H FY2014 RESULTS HIGHLIGHTS

1. Group revenue for 1H 2014 was $33.2 million. Operation and maintenance income was $25.1 million, 0.3% lower compared to 1H 2013.
2. Profit after tax for 1H 2014 was $6.8 million, contributing to earnings per unit (EPU) of 1.09 cents for the period.
3. Cash generated from operations was $26.9 million for 1H 2014, 17.2% higher compared to 1H 2013.
4. Given the stable cash flows generated, distribution per unit (DPU) for 1H 2014 remained stable at 3.13 cents compared to 1H 2013.
5. Net asset value per unit as at 30 June 2014 was $0.96 compared to $1.00 as at 31 December 2013, mainly due to the distribution payment of 4.69 cents per unit on 21 February 2014.

12th New Record set by Uncle8888's Investment Portfolio in 2014

Read? 11th New Record set by Uncle8888's Investment Portfolio in 2014



Another Moment of Happiness again!!!

Cheering the 12th new record set in 2014

Unaudited Results of Keppel REIT for the Second Quarter and Half Year Ended 30 June 2014

Keppel REIT's Distributable Income for 1H 2014 grew 3.0% year-on-year
Achieved distribution yield of 6.1%

• Property income rose 14.0% year-on-year ("y-o-y") to $94.1 million for 1H 2014 due to improved performance from Ocean Financial Centre and Prudential Tower, as well as additional income from 8 Exhibition Street in Melbourne, which was acquired in August 2013.
• Net property income increased 18.0% y-o-y to $78.7 million.
• Distributable income rose to $108.3 million, an increase of 3.0% y-o-y.
• Distribution per unit ("DPU") of 1.90 cents for 2Q 2014, making it 3.87 cents for 1H 2014.
• Divestment of 92.8% interest in Prudential Tower for $512 million announced, which is 4.5% above the property's valuation of $490 million and a 46.7% premium over the original purchase price.
• Completed successfully the early renewal of some key leases to ensure income certainty over a longer term.
• Achieved overall tenant retention rate of 87% for 1H 2014.

Passive Income??? Why must have more of it!

Read? What Passive Income?

Read? The most important chart in CW8888's blog to remember on Wealth Formula!!!

Passive income is Good; but don't ever forget about Uncle8888's Wealth Formula

Wealth = Asset value + Cash flow

Our cash flow can be in any form.We must have emergency and medical fund available too. And never ever need to liquidate any of our asset during market low. Never ever!!!




Can you see what is Uncle8888's thinking?


Earned income from employment and sometime got f...ked by bosses or customers = ACTIVE



Earning  (not yours yet) from investment; but sometime got screwed by Mr Market; but okay lah. No f..king by bosses or customers = PASSIVE
 


Uncle8888 can count his earned income till Dec 2014. It is already known and can be countable.

Earning from investment is marked to market closing price at last Friday.

See the difference. Predictable vs Unforecastable

Honestly, you tell me!

You want more of what?

Earned or Earning?

Active or Passive?

Tell me!

How to Hold a multi-bagger? (3)

Read? How to Hold a multi-bagger? (2)


Check your Selling habit


 1. You sell your best winner first and laughing to the bank with a large profit.



2. You sell your winning but less performing ones first and quite happy with small profits.


3. You sell your losers to recover your investing capital.


You are 1, 2, or 3?

How to Hold a multi-bagger? (2)

Read? How to Hold a multi-bagger?

Read? Multi-Baggers -- To Hold or Not to Hold?

Answer .....




















 
NOT EASY!

NOT PASSIVE!


 
 



 

How to have enough to retire at 60s?

Three steps ....


Step 1: Manage spending


Step 2: Increase earned income and saving

Step 3: Compound investment return through either growth-dividends or growth-cash flow investing strategies. 

Don't be too focus on income-dividends strategies when we are younger. We may not be that good at re-investing for compounding gains. Sometime, it is better to stay invested with good stocks and let the Management do the job for us.

Book: The 52-Week Low Formula: A Contrarian Strategy that Lowers Risk, Beats the Market, and Overcomes Human Emotion

CW8888: Must have ball to do it. Not so easy.

A Fascinating Reason Why Investors Really Should Invest In Times of Panic

Read? A Fascinating Reason Why Investors Really Should Invest In Times of Panic

To add more punch to the mix, even a bank like DBS Group Holdings (SGX: D05), which had remarkably robust earnings during the financial crisis even as Western banks were crumbling, was selling for only 0.6 times its book value at the Straits Times Index’s lowest point.

Real People, Real Return

In practice by Uncle8888:

See for yourself.

Great investment return?