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

Sunday, 15 January 2012

S'pore economy already starting to see slowdown: PM Lee

SINGAPORE: Prime Minister Lee Hsien Loong said Singapore's economy is already starting to see a slowdown, particularly in the electronics sector.


But he sounded a note of confidence, saying that Singapore is prepared for the uncertainties ahead.

"The economy... probably will grow slower than last year. We're projecting 1 to 3 per cent growth. We have to take that in our stride, and accept that. But within Singapore, we should continue to build, we should continue to develop, we should continue to prepare ourselves and our next generation for the future," said Mr Lee.

Mr Lee said what the government can do is to improve the education and public transport systems, and build more homes so that young couples can start their families.

He made these points at a Lunar New Year event on Sunday morning in his constituency of Teck Ghee, which is part of Ang Mo Kio GRC.

He also officiated the re-opening of a wet market and food centre at Block 409, Ang Mo Kio Avenue 10, which had recently been renovated.

He said more of such markets will be built over the next few years, with the aim of keeping food prices affordable.

The prime minister also distributed red packets, each with S$150 in cash and supermarket vouchers to low-income residents.

It's a small gesture that brought a smile to housewife Haslinah Mahmood, who said she's concerned her Malaysian husband will be affected by the downturn.

"I'm more worried because he has a work permit. Who knows... if one day he can't carry on working with the work permit, what will happen to us?"

Madam Haslinah has two young children, and she plans to use the money for school fees and transport fares.

- CNA/cc

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

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

The Gurus continue with another 6 stocks to make it 12 sparkling stocks in 2012.

7. Olam $2.44 (CW8888 also has)
8. OKP $0.55
9. OCBC: $8.16
10. GLP: $1.865
11. SoundGlobal: $0.56
12. LMIR: $0.37

So I have 2 out of 12 i.e. Kep Corp and Olam. Let us see at 31 Dec 2012, how many of them are sparkling or rotten?

Buy and hold??? Take a good look and seriously think over it.

Just for Thinking ....

Buy and hold???

The same old debate will start fresh once again whenever we have new investment bloggers on board.




Take a good look and seriously think over it.

The keys to long-term investing:
  1. Market timing.
  2. Pocket must be deep enough to buy enough of them on sales. ("It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." ~ George Soros)
  3. Right and Hold.



Saturday, 14 January 2012

How did Kep Corp survive the last crisis?

How did Kep Corp survive the last crisis?

Can it survive the next crisis in 2012/13?

Looking at its past net order book especially in 2006, 2007and 2008 and that may have lead to its rising EPS.



















For the next few years, how will its EPS like?


Will the growing infrastructure division be enough to mitigate the lack of order in 2009 and 2010?


























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

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

Kep Corp


Good trading stock!

Thursday, 12 January 2012

Biosensors: Closing a new 52W high @ $1.565 near all time high @ $1.57


Amazing bull stock in not a bull market!

Sembcorp Signs Agreement To Explore Developing A 1,200 Megawatt Power Plant In Vietnam

Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp Utilities, has signed a memorandum of understanding (MOU) with the People’s Committee of Quang Ngai Province (Quang Ngai PC) to explore the feasibility of developing a 1,200 megawatt coal-fired power plant in Dung Quat Economic Zone, located in central Vietnam’s Quang Ngai province.

The MOU was signed by Ng Meng Poh, Executive Vice President & Head of Singapore and ASEAN (Utilities) of Sembcorp, and Cao Khoa, Chairman of Quang Ngai PC. The signing took place in Quang Ngai province earlier today and was witnessed by Le Tuan Phong, Deputy Director General, General Directorate of Energy, Vietnam Ministry of Industry and Trade, Low Sin Leng, Executive Chairman of Sembcorp Industrial Parks & Deputy Chairman of Sembcorp Utilities, and Vo Van Thuong, Party Secretary of Quang Ngai province.

Commenting on Sembcorp’s latest development plan in Vietnam, Mr Ng said, “Dung Quat Economic Zone’s rapid industrial development has in recent years supported the tremendous economic growth of Quang Ngai province. It has been earmarked by the Vietnamese government to become a multi-sectorial economic zone and a base for oil refining and petrochemical industries. As such, Sembcorp certainly sees opportunities to invest and further establish our utilities presence in this fast growing region.

“With our combined expertise and proven track record, Sembcorp is well-positioned to offer integrated solutions for Dung Quat Economic Zone’s present and future power needs. We look forward to working closely with Quang Ngai PC on this project.”

This is the second agreement Sembcorp has signed with Quang Ngai PC in the recent six months. Earlier in September 2011, Sembcorp’s Industrial Parks business, through its joint venture in the Vietnam Singapore Industrial Park, also signed a MOU with Quang Ngai PC to conduct a comprehensive feasibility study of a 1,020-hectare integrated township and industrial park in Quang Ngai province. This comprised a 500-hectare industrial park located within Dung Quat Economic Zone and 520 hectares of land zoned for commercial and residential purposes near downtown Quang Ngai city.

“We are pleased that the Group is able to build on the strong relationship that our Industrial Parks business has established in Vietnam and with the Quang Ngai PC. We are confident that, with Sembcorp’s group strength and capabilities, we will be able to offer an integrated approach to support the development of Dung Quat Economic Zone,” said Ms Low.



Wednesday, 11 January 2012

Kep Corp: Sold $10.14

Round 94: ROC 2.3%, 154 days, B $9.85 S $10.14 (Bought back at higher price. Last sold @ $9.05)

Round 93: ROC 5.7%, 67 days, B $8.50 S $9.05

Round 92: ROC 10.6%, 166 days, B $7.98 S $8.89

Tuesday, 10 January 2012

Do you fully understand how your investment yield come from?

Just For Thinking ....

Do you fully understand how your investment yield come from?  Especially those investment that provides monthly yield. How can this be possible?

This is a true story.

My colleague, his siblings and relatives all also kena burnt due to kind recommendation from him after he has been receiving nice monthly passive income from his investment. Good investment opportunity must share in the family. Right?

Read? 'I was victim of mis-selling by own brother'

Same as those guaranteed rental income for X years from property investment. How can it be possible? Think about it. If you still don't understand; buy me coffee for the answer. No free answer hor!

CapitaLand in US$3.33b Chongqing project

By JASMINE NG


CapitaLand said on Tuesday it will embark on a mixed development project in Chongqing worth 21.1 billion yuan (US$3.33 billion).

The pact was sealed between CapitaLand, CapitaMalls Asia, Singbridge Holdings and the Chongqing government.

The development will comprise a shopping mall and eight towers for residential, office, serviced residence and hotel use. It has a total gross floor area of about 817,000 square metres.

CapitaLand and CapitaMalls Asia each owns a 25.0 per cent effective stake in the development, while SBH owns a 30.0 per cent effective stake. The remaining 20 per cent is held by unrelated parties.

CapitaLand said the project will be funded through a mix of debt and equity.





Kep Corp

Monday, 9 January 2012

Keppel AmFELS to Construct and Upgrade Deepwater Semisubmersible for Diamond Offshore for US$150 million

Keppel AmFELS LLC, a US wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M), has secured a contract from Diamond Offshore to construct and upgrade a moored semisubmersible rig with delivery scheduled for 3Q 2013. The estimated shipyard contract price is approximately US$150 million.


The rig, to be named Ocean Onyx, will be constructed from an existing hull from a Diamond Offshore cold stacked unit, which previously operated as the Ocean Voyager.

Keppel AmFELS' scope of work on the Ocean Onyx includes the reconstruction of the rig, installation of advanced equipment such as a modern drilling package, and installation of sponsons to the pontoons to enhance the stability of the rig in deepwater. The rig will be designed to operate in water depths of up to 6,000 feet and will have a variable deck load of 5,000 long tonnes, a five-ram blowout preventer, and quarters capacity for 140 personnel.

Mr Larry Dickerson, President and CEO of Diamond Offshore, said, "We have worked with Keppel for more than a decade, and our rigs have consistently been delivered on time and within budget, whether in the US or Singapore. With Keppel's track record as a leading offshore yard, we are confident that this project will also be a success."

Keppel O&M has previously built four similar semisubmersible rigs for Diamond Offshore: the Ocean Baroness, Ocean Rover, Ocean Endeavour and Ocean Monarch.

Mr Tan Geok Seng, President of Keppel AmFELS, said, "We are pleased to be able to embark on another major rig project for Diamond Offshore, who has worked with Keppel on more than 20 projects since 1996. Diamond's rigs are sent regularly to our yards around the world for maintenance, repair and upgrade, and Keppel AmFELS has proven to be their choice yard in the US Gulf of Mexico. Having built a long-term partnership with Diamond, we understand the company's needs and are confident of delivering another high quality rig to their satisfaction."

The above contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year

Saving, Lending and Investing (4)

Read? Saving, Lending and Investing (3)

There is so much interest in CapitaMalls Asia's 10 Year Retail Bonds and even seasoned investors are heading to ATMs too.

How come?

The stock market is too volatile for comfort???

More retail rather be a lender than investor and choosing return of money over return on money. I rather be a small patient investor than an opportunistic small lender.










Sunday, 8 January 2012

Understanding the Concept of Demand and Supply

Passive Income - Rental vs Dividend Yield (3)

Understanding the Concept of Demand and Supply

I believe most of us know what is Demand and Supply in Economic theory; but allow me to take it a bit further into passive income.

How do we get paid for passive income?

Read? Saving, Lending and Investing (3)

For interest on saving, coupon on bonds, dividend on stocks, we are in the Demand side; but NOT in the Supply side of getting paid for our capital. We basically demand yield and that is all about it.

However; for rental on properties it is different, we are in the Supply side; but NOT actually in the Demand side of getting paid for our capital. When we supply, people are expecting us to provide some level of basic services to meet their demand (expectations). Some unexpected demand can sometime drive us nuts. Similar to some nasty internal and external customers and bosses at our workplace with their unexpected demand are driving us nuts too.

See the big difference between Supply and Demand of getting paid for passive income. I rather stay in the Demand side.













Stress test your portfolio!

Read? Portfolio Management - Portfolio Risk (3)

Track, measure, and visualise

Is the next bear market happening in 2012/2013?

If it happened, how bad will our portfolio get hit?

Will we still have enough cash to survive without liquidating our investment near market low till the next bull?

When the general forecast and sentiment for market condition in 2012 is bad, we must prepare and get ready for it. We must have enough resources to seize the opportunities and the window for that opportunity is only 2-4 months for sharp capital gains.


Stress test your portfolio. Visualise it!
 
My stress test result on my portfolio.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Passive Income - Rental vs Dividend Yield (3)

Someone said:

"I have been reading on your blogs that your plans on achieving financial freedom and passive income through stocks investments.

I would like to hear your views on why you would not consider passive property rental income as part of your passive income? I believe you have your bullets and so...just curious and would be glad to hear your thoughts."
 
Read? Passive Income - Rental vs Dividend Yield (2)
 
Why I prefer stock dividends as passive income?
 
Stock dividends as passive income is truly passive as it doesn't require lifting a finger to receive them; but it will require strong heart to ride the emotional roller coastal ride across market cycles of bulls and bears.


A portfolio of diversified stocks and good money management to scale in and out the amount of investing capital according to market condition it will help to mitigate portfolio risk and stabilise the heart.

Saturday, 7 January 2012

Investing Made Simple by Uncle8888 (30)

Read? Investing Made Simple by Uncle8888 (29)

Tell you the secret of finding multi-baggers

Read? MULTI-BAGGER STOCK PICKER

There few gurus or trainers out there in Singapore who can teach you to pick multi-baggers or do value investing for a few thousands bucks. You just need to place your trust and have good faith in them and hand over your money to learn it. It is the easiest way to find multi-baggers. Believe it or not. It is up to you.



How to find multi-baggers?

Are you strong in TA?

If you answer yes.

Uncle8888 is sorry to tell you that you may not have chance to hold multi-baggers in your portfolio and it doesn't matter which school of TA Kung Fu you come from. The reason is fairly simple. The market cycles of bulls and bears will definitely generate plenty of exit signals for you; and one of these exit signals will eventually trigger you to sell.

Understanding holding power

What is holding power???


Most retail investors are capable of holding on to their stocks when their stock prices are falling. Their holding power comes from their financial strength as they don't need to liquidate stocks for cash. But, when their stock prices are rising fast and when the sign of market reversal in sight. Will they have same the holding power as when their stock prices are falling? Where does the source of holding power come from?

Read? Shake Off That Seller's Mindset (2)

Can you shake off the seller's mindset?

If you can't.

Again Uncle8888 is sorry to tell you that you may have no chance to hold multi-baggers as your holding power is weak; even though you can be financially strong.

What will drive a stock price?

Future earning growth and dividend growth. If both are expected to rise together; the stock price is more likely to rise faster. No analysts can forecast company earning beyond three years. Two to three year is the norm.

So it is for you to visualise on your own and trust their own instinct. Your own instinct will come from the number of companies and sectors that you actually lay your hand on and bet with your money. The more the merrier.

Stock picking is part science, part art, part luck, part intuition, and always uncertain - "not precisely knowing."

Friday, 6 January 2012

Biosensors: A bull stock in a bear or dull market.

In every bull market, there will some bear stocks. In every bear market, there will be some bull stocks. This is how market works!

Biosensors is one such example of a bull stock in dull or bear market. Today, Biosensors closed at a new all time high @$1.545. The last closing of all time high @ $1.52.


A new all time high closing @ $1.545

10% dividend yield for 10 years? Fact or Fiction?

Greatsage said...


"I dun think such stocks exist in our SGX. 10% dividend yield for 10 years? Absolutely no, as least not in SGX."

Read? Dividend Yield

10% dividend yield for 10 years?

Fact or Fiction???

See? Keppel Corp's Dividend History

See? Semb Corp's Dividend History


CW8888's Kep Corp dividend yield since 2001



CW8888's Semb Corp dividend yield since 2002

















Read? Investing vs Trading (3) - Here the Hard Truth from me!

The Great Robinson Sales in the stock market is worth waiting for. When will it come?


Holding power???

Just For Thinking ...


What is holding power???

During falling stock price

When we don't need to sell even the stock price hits a newer low everyday, we have holding power.

Holding power = No need to liquidate stock for cash

During rising stock price

When the stock price keeps rising, where can we find our holding power???




Thursday, 5 January 2012

Wednesday, 4 January 2012

Tuesday, 3 January 2012

Keppel to expand suite of solutions for Offshore Wind Farm Installations

It will acquire a substantial stake in OWEC Tower, an industry leading designer of jacket foundation.

Singapore, 3 January 2012 - KV Ventus B.V., a wholly-owned subsidiary of Keppel Corporation Ltd. (Keppel) has today entered into a share purchase and subscription agreement and shareholders' agreement to acquire a 49.9% stake in offshore wind turbine foundation designer OWEC Tower (AS) for about NOK $61 million.

OWEC Tower, headquartered in Norway, is a leader in the design and engineering of offshore wind turbine foundations. The company has developed a proprietary jacket foundation design known as OWEC Quattropod®, which is currently the only proven jacket design in the market. The OWEC Quattropod® design separates and optimises the piling and jacket installation process, resulting in reduced installation costs and faster project delivery.

With the aim of getting a slice of the offshore wind foundation business, this investment will enable Keppel Offshore & Marine to tap on OWEC Tower’s expertise to further develop its business in the design and construction of offshore wind turbine foundations as well as installation and support vessels thereby providing value-added solutions to its customers.

Mr Michael Chia, Director of Group Strategy and Development at Keppel said, “We are seeing offshore wind energy rapidly gaining traction around the world and a large number of offshore wind farms are under construction and planning. This will result in a huge increase in demand for foundation structures. With OWEC Tower’s leading design in this segment, our partnership puts us in the ideal position to capture a share of this market.

“As offshore wind farms move into deeper waters with bigger capacity turbines, a large number of jacket foundations will be required. With our experience and expertise as a leading rig builder, we see good potential in supporting OWEC Tower to meet this demand in a cost-effective and reliable manner. Together with our proprietary designs for offshore wind turbine and foundation installers, we are confident of further enhancing our suite of solutions for the offshore wind industry.”

To-date, OWEC Tower is the only company with a track record of having its jacket foundation design installed for offshore wind farms. Projects include the Beatrice pilot test off the coast of Scotland, the German pilot project Alpha Ventus, Ormonde wind farm in the UK, and the Belgian Thornton Bank project.

Europe is currently the leader in offshore wind energy. According to the European Wind Energy Association (EWEA), at the end of 2010, Europe had 1,136 offshore wind turbines installed and connected to the grid on 45 wind farms in nine countries. In total, these have a power capacity of 2.9 GW and can produce 11.5TWh of electricity in a normal year.

Offshore wind will become increasingly important as European countries move towards renewable energy. EWEA has set a target of 40 GW installed by 2020 and 150 GW by 2030. The huge number of offshore wind farms under construction and planning will result in a corresponding demand for foundation structures.

Investments in offshore wind farms in Europe alone are projected at €209 billion from 2010- 20.

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

Sunday, 1 January 2012

Wishing you a very Happy New Year!

Gone Batam!

1-2 Jan 2012

I started the New Year with a Golden View!


I will be spending 1-2 hours in hot jacuzzi longbath having a view on 2012.



Who knows I may come back with better insights on how to huat in 2012!





Saturday, 31 December 2011

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

Read? 4 financial experts' forecast for this year

There are no experts who can forecast. They are just paid to tell a fairy tale story in the stock market.

Only Carmen Lee has a small consolation prize for her forecast for biosensors at $1.35

Closed at $1.43 on 30 Dec 2011

 
I have been holding biosensors since 21 Jan 2008, CAGR on unrealised gain is 22.2% over 3.9 years.
 
Biosensors is the newest multi-bagger in my current portfolio at last market closing.
 
I have sold some positions to lock in realised profit to make a new pillow but it is currently only 43% full of feathers. I will sell some to make it into the newest pillow stock aka zero-cost investment holding and hopefully to grow a new money tree when biosensors starts giving out stock dividends.

Biosensors International to Participate in the 30th Annual J.P. Morgan Healthcare Conference

Biosensors International Group, Ltd. (“Biosensors” or the “Company”, Bloomberg: BIG:SP; Reuters: BIOS.SI; SGX: B20), a developer, manufacturer and marketer of innovative medical devices for interventional cardiology and critical care procedures, today announced it will be participating in the 30th Annual J.P. Morgan Healthcare Conference which will be held from 9th to 12th January 2012 in San Francisco, United States.


During this conference, the senior management of Biosensors will present on Thursday, January 12th, 2012 at 11:00am PST within the Asia Healthcare Company Track, and will also meet investors in scheduled one-on-one and small group meetings throughout the conference.

Dreaming of financial independence by 55!

2011 is an important year for Createwealth8888. Why?

Read? Four Financial Progressive Stages

It was many years back .....

One day, after reading the book on "Rich Dad Poor Dad" by Robert, I began to like the idea of passive income, financial freedom and getting out of rat race so much that I have a mind flip. I began dreaming of financial independence by 55 and keep dreaming till this day.



(Another book that helped me is "Think and Grow Rich" ) Read? Two Books That Change My Views

But, how to achieve this wonderful dream?

Business or Investment?

For me, the choice is quite obvious. Without much talent for Business; I would have to take the Investment path to financial independence. Next, I would have to decide whether properties or stocks? I decided on stocks as I believe stocks are easier to execute.

Read? Why you must not stop dreaming of reaching financial freedom and pursue it?


Why we must get out of rat race as early as possible? Read? Regret of the Dying


Why 55?  When I began that dream, Singapore's official retirement age was 60; but now, it is 65. Too bad folks! We will have to work longer. 60 is the new 55.

Actually, when I have this dream I have already achieved financial security so financial independence is just the next step and leaded me to this simplistic thinking. If I put in enough time and effort to educate myself to become savvy with long-term investing and short-term trading; I will be able to create wealth from the stock market. (This is how I named the title of this blog. This is why I am still blogging since 2006).







I started reading many finance and investment books that I could find in NLB libraries. I also started to follow closely many investment and trading blogs, forums, cboxes closely and to identify who were the experts and gurus and hoping to learn more tips and tricks from them. (But, unfortunately, some of my superheroes were killed in 2008/2009. Read? Following My Superheroes!)

I also attended many investment and trading previews to hear from Gurus themselves; but all of them have failed to convince me to part my hard earned money to attend their so-called easy money making programmes. May be I was too stingy!

Setting Goals

It was only after a few years in the stock market, I realised that I must get real and set concrete goals to achieve this dream. I then set progressive yearly investment goals to be achieved from 2003 to 2011. This is how the investment marathon race for 2003 to 2011 has started. Basically, it is living part of my life in financial news and market and riding the emotional roller coaster ride up and down with the market.















2011 is an important year for Createwealth8888

Announcing final result

It is like students and parents waiting for the announcement of PSLE, GCE 'O' and 'A" level result.

The final result for 2003 - 2011 is as follows:



OMG! I missed the end goal!

I only achieved only 58.6%.

The reason for not achieving 2011 goal is so obvious! Look at the Red arrow in the above chart.

Sianz!!!

Financial Independence by 55

Lagi sianz .............















Look at the plunge in 2008 bear. Just a few moments of foolishness and greediness in me to bet much bigger in 2008 and the dream never come true!!!

I have to dream once again till 2015.

My net worth as on 30 Dec 2011




My net worth as on 30 Dec 2011 market closing price.

  1. Capital already invested in stocks and subjected to market volatility = 5% of net worth.
  2. Capital not invested yet and available as cash on hand = 20% of net worth.
  3. 30% of net worth comes from net profits from stocks and re-invested back into stocks and subjected to daily market volatility.
  4. 45% of net worth are assets not affected by market volatility.
Volatility is name of the Game


How bad will the next bear hit my portfolio?

My stress test result on my portfolio indicated that it may not be as bad as compared to 2008 Bear.

I am better prepared for the next bear this time than in 2007. Now, I will have far more bullets to take on the bear. See the chart below:


 


In 2007, I have too much capital invested in stocks and too little bullets.
In 2008, I have too little bullets to recover.
In 2012, I think I am quite balance with stocks and bullets.

Track, Measure and Visualise!

It is very important that we can visualise our portfolio performance and know how are we doing?

Can we reach our goals with the current investing strategies?

Know our XIRR!


  1. XIRR since one year ago = -2.5% (negative growth)
  2. XIRR since 3 years ago = +10.0%
  3. XIRR since 9 years ago = +11.0%
  4. XIRR since 12 years ago = +9.3%
2011 is a very difficult year with my current investing strategy. It has failed so badly. I will go to Batam in the New Year 2012 to think over it.

I never have so much cash for investing!

2011 is even more important year for me when I unlocked my Division of Commandos in my CPF OA to battle the next bear; but it can be a double-edged sword too. I can lose big.

Setting the new goals









The next 10 years of progressive goals (2012 to 2021)







 
I have been tracking my annual expenses since 2000. The next 10 years of progressive goals are inflation adjusted at 3% rate based on this formula to compute the likelihood annual expenses to determine the amount required in retirement.
 
Likelihood Annual Expenses =
 
(Max Expense since 2000 + 4 x Avg Expenses since 2000 + Minimum Expense since 2000) / 6
 
 
 
 
 

The Money tree has grown and is bearing fruits

Sometime in life, we will reap what we have sowed. I will be reaping what I have sowed. Read? One click! That is more than enough to generate passive income for a long time.

These fruits will ease my future goals.

I hope to sow more One Click in the next bear.

I realized that passive income from stock dividends is fantastic once you got damn right. You don't even need to lift a finger to receive it. Really wonderful!






How will I end the next race in 2021?
















Will I have the wisdom not to repeat the same few moments of foolishness and greediness in me?




















Thursday, 29 December 2011

Keppel Offshore & Marine wraps up 2011 with new contracts worth S$150 million

Singapore, 29 December 2011 - Keppel Offshore & Marine Ltd (Keppel O&M) through its subsidiaries, Keppel Singmarine Pte Ltd (Keppel Singmarine) and Keppel Verolme BV (Keppel Verolme), has secured contracts totaling S$150 million from international customers.


Keppel Singmarine, the specialised shipbuilding division of Keppel O&M, has entered into contracts for the building of a 91-metre container vessel and three 4000 DWT (deadweight tonnage) bulk ore/fuel carriers for Papua New Guinea customer Ok Tedi Mining Limited (Ok Tedi Mining), while Keppel Verolme, Keppel O&M’s comprehensive yard in the Netherlands, is undertaking upgrading activities of a semisubmersible drilling rig, Scarabeo 6, for Italian customer Saipem Misr for Petroleu Services S.A.E. (Saipem).

Mr Chow Yew Yuen, Managing Director of Keppel O&M, said, “With these contracts, our new orders for the year to date has reached a record high of some S$10 billion, with deliveries extending to 2015. It reflects the confidence of global customers in the capabilities of our yards across the Keppel O&M group. We have established a solid track record of successfully completed projects and we intend to mainmaintain this by executing our orders to the satisfaction of our customers.


“With a network of yards around the world, we are proud to be able offer a variety of services to customers wherever they are. We will continue to strengthen the partnership with repeat customers like Saipem and gain the trust of new customers like Ok Tedi Mining.”

The container vessel to be built by Keppel Singmarine is capable of loading 3,000 tonnes of copper concentrate or carrying 236 TEU (twenty-foot equivalent unit) of containers. In addition, the three 4000 DWT bulk ore/fuel carriers that Keppel Singmarine will be building, will each be able to carry a minimum of 4,000 tonnes of copper concentrate or 1,900,000 litres of bulk diesel fuel. All the vessels are scheduled for delivery in 2Q 2013.
 

Saving, Lending and Investing (3)

Read? Saving, Lending and Investing (2)

One simple rule to remember.  How are we paid?

When we save - we are paid low interest rate.

When we lend (buying bonds or pref shares), we are paid coupon rate (interests)

When we invest in stocks- we are paid dividends and we also speculate for capital gains.

When we invest in property - we are paid rentals and we also speculate for capital gains.

Interests, coupons, dividends, and rentals are basically yield on investment cost; if we don't receive any yield regularly, it is pure speculation When we speculate, it is all about timing to recover capital and gain.

Some people may think that riding it and down is hedging against inflation???

But, when we invest long enough, one day we will recover our capital. Surely that day will come. So we better invest than speculate. Right? LOL







Top S'porean pastimes unveiled

SINGAPORE: The top three leisure activities among Singaporeans are eating, shopping and surfing the web.


A survey of more than 600 Singaporeans on their preferred leisure activities came up in this order.

More than two-thirds - or 68 per cent - cited food or dining-out as the top leisure activity in the MasterCard Survey on Consumer Purchasing.

Shopping was next with 65 per cent votes while surfing the web was third with 60 per cent. (Createwealth8888: Me too. LOL)

Interest in languages and literature as well as learning crafts made the bottom of the list of preferred activities.

Only about a fifth -- or about 20 per cent -- of those who responded liked these.

In terms of preferred dining outlets, the food courts and hawker centres reigned supreme as the most popular.

About 90 per cent cited these as their top choice for eating out.

The survey said Singaporeans visit hawker centres and food courts an average of 16 times a month.

This is followed by fast-food restaurants and other quick-serve restaurants where they visit about seven times a month.

- CNA/wk

Buy Gold/Silver as insurance or hedge against inflation? (4)

Read? Buy Gold/Silver as insurance or hedge against inflation? (3)

Gold fell near $1,560 an ounce, hitting a three-month low.




Wednesday, 28 December 2011

Your year-end bonus is here!

Read? Money Management - What to do with your year-end bonus?

I have been doing it for a long time and still doing it again for this year.

Budgeting is an important personal financial skill to acquire. It can help us to minimise financial stress and financially prepare for the next coming Bear without having to liquidate our investment near market low and regret.

How do you prepare yourself for the next economic downturn?

Tuesday, 27 December 2011

Hyflux's unit signs US$41.21m sale and purchase agreement with JV company

By CARINE LEE


Hyflux Ltd on Tuesday announced that its wholly-owned subsidiary, Spring China Utility Ltd, has entered into a sale and purchase agreement with Galaxy NewSpring Pte Ltd, in relation to the injection by Spring China to Galaxy of its entire equity interest in each of Hyflux Utility WTP (DZ) Pte Ltd and Hyflux Utility WWT (HCHX) Pte Ltd.

Hyflux Utility WTP (DZ) and Hyflux Utility WWT (HCHX) are special purpose vehicles which holds the company's two plants in China. The net tangible asset value of Hyflux's interest in them was US$25.2 million as at Dec 31, 2010.

The aggregate consideration payable by Galaxy under the agreement is US$41.21 million, and payable in tranches. It will be wholly funded in cash.

Galaxy is a joint venture company between Hyflux and Mitsui & Co Ltd to invest, develop, construct, operate and maintain water plants in China.

The Singapore-listed company said that the latest transaction 'has been entered into in furtherance of the intent of the joint venture between the company and Mitsui'.



DBS Group increases stake in DBS Bank with $1.35b

By CARINE LEE


DBS Group Holdings Ltd on Tuesday announced that it has subscribed for 116.18 million shares in the capital of DBS Bank Ltd for $1.35 billion.

Funded by internal resources, DBS Group satisfied the purchase wholly in cash.

Following the subscription, DBS Group now holds 2.17 billion ordinary shares in its wholly-owned subsidiary, DBS Bank.



Monday, 26 December 2011

Uncle, you work for Keppel?

Just For Laugh ...

One reader asked: "Uncle, you work for Keppel?"

I guess why he asked this question. Ha Ha. May be only employees of a company will hold its stock for a long time as retail shareholders are more likely to sell stocks that are going up too high.

Actually, I have been investing and trading Keppel family of stocks since 199X e.g. Keppel Finance, Keppel Bank, SPC, Keppel Land, and Keppel Corp. I like Keppel brand!

So You Think You Can Trade? - Re-visit

Investing and trading is simple as it doesn't require minimum educational or professional qualification to practise; but it is not as easy as advertised in your daily newspaper ads.

Read? So You Think You Can Trade?

Passive Income - Rental vs Dividend Yield (2)

Read? Passive Income - Rental vs Dividend Yield

What you will not find in property rental as passive income.

To receive unexpected special dividends down the road and especially when the special dividends are fairly large. Shiok!!! The key here is unexpected. Really shiok!!!



For examples, see below


Sunday, 25 December 2011

Year-end budgetting for the next 2 years

Just For Thinking ....

Common advice from financial advisors is to keep 6 - 12 months ready cash for emergency use; but there is no such thing as one size fits all.

You should sit down and do your year-end budgetting exercise for the next 2 years. You must seriously and consciously think through what are the expected expenses that may be coming up in next 2 years and how you are going to fund these expenses.

You should not be thinking that you can easily fund your expenses by liquidating your stocks next year.

Nobody can predict where the maket will be going in the next two years and you might be liquidating near market low. Heart pain hor!

Kep Corp : Not a dividend hunter's favourite animal???

Read? Kep Corp













Is the elephant too big to be hunted for its dividends?

For that one Click effort in 2001 and doing nothing else after that, Createwealth8888 has been paid total dividends of $3.57 per share (or total yield of 248% over 10.3 yrs) for maintaining his confidence and patience in Kep Corp.

With the backlog order book to S$10.7b, a level not seen since 2006, sustainable dividend payout is possible over the next 2-3 years.

Saturday, 24 December 2011

What should I do with my life?

Most people have good instincts about their calling in life, but they make poor choices and waste years


By TEH HOOI LING
SENIOR CORRESPONDENT

I HAD dinner with a reader some months back. During dinner, I lamented how the modern economy is compensating people in the finance industry. 'Because of that, all the bright brains are flocking to the financial sector. The other more productive sectors of the economy suffer as a result,' I said.

The reader countered. 'The market has a way of adjusting itself. Back in '80s, the shipbuilding, the marine sector was very lucrative. It attracted a lot of talent. Then there was a downturn, and wages plunged. In the '90s, the semiconductor industry was the place to be. In the early 2000s, it was the information technology sector. Now we have the banking sector which is drawing in the big bucks. But already we are seeing signs that the banking sector is set to shrink in the years ahead.'

That conversation lingered in my mind. And a few days ago, a friend posted a link on Facebook to an article titled 'What should I do with my life?'. The article wasn't new. It was published in 2007 but I found it still offers a lot of good insights and it's timely that we be reminded of them.

Written by Po Bronson, and adapted from his book 'What Should I Do with My Life? The True Story of People who Answered the Ultimate Question', the article said instead of focusing on what's next, let's get back to what's first.

'People don't succeed by migrating to a 'hot' industry ... They thrive by focusing on the question of who they really are - and connecting that to work that they truly love (and, in so doing, unleashing a productive and creative power they never imagined).

'Companies don't grow because they represent a particular sector or adopt the latest management approach. They win because they engage the hearts and minds of individuals who are dedicated to answering that life question,' he wrote.

Now that we've come to the end of what has generally been regarded as a terrible year, I thought it's a good time for us to pause and reflect on who we really are, and how one goes about finding that answer.

As part of the research for his book, Mr Bronson interviewed more than 900 people 'who have dared to be honest with themselves'. Below are what he gleaned from them.

Except for a select lucky few, for most of us, our calling is not something that we inherently know. Far from it. Almost all of the people he interviewed found their calling after great difficulty.

'They had made mistakes before getting it right. For instance, the catfish farmer used to be an investment banker, the truck driver had been an entertainment lawyer, a chef had been an academic, and the police officer was a Harvard MBA. Everyone discovered latent talents that weren't in their skill sets at age 25.'

Most of us don't get epiphanies. We only get a whisper, a faint urge. That's it. It's up to us to make the discovery.

'This lesson in late, hard-fought discovery is good news. What it means is that today's confused can be tomorrow's dedicated. The current difficult climate serves as a form of reckoning. The tougher the times, the more clarity you gain about the difference between what really matters and what you only pretend to care about.'

The thing is, most people have good instincts about where they belong. But they make poor choices and waste productive years on the wrong work because of a number of basic assumptions we have about the work we are supposed to have.

'These are stumbling blocks that we need to uproot before we can find our way to where we really belong,' said Mr Bronson.

Money and meaning

One common false assumption is that I would make my money first, and when I have enough money, I'd walk away and use my savings to fund my dreams.

It turns out that people hardly walk away even after they have achieved financial independence. 'Making money is such hard work that it changes you. It requires more sacrifices than anyone expects. You become so emotionally invested in that world - and psychologically adapted to it - that you don't really want to ditch it.'

Money is not the shortest route to freedom. 'The shortest route to the good life involves building the confidence that you can live happily within your means. It's scary to imagine living on less. But embracing your dreams is surprisingly liberating. Instilled with a sense of purpose, your spending habits naturally reorganise, because you discover that you need less.'

Createwealth8888's comments

Living more simply by loving the nature and the sea more. Learn to hear the sound of waves hitting the seashore, seeing the beauty of sea waves and admire the brillance of the setting Sun. You will soon realize that you don't really need to spend much to enjoy all these.

Bring your kids to beaches, parks and gardens and soon you will realize you are not spending on expensive toys.

Read? Live Simply? (3)


Next, 'What am I good at?' is the wrong starting point. People who attempt to deduce an answer usually end up mistaking intensity for passion. To the heart, they are vastly different. Intensity comes across as a pale busyness, while passion is meaningful and fulfilling, said Mr Bronson. A simple test: Is your choice something that will stimulate you for a year or something that you can be passionate about for 10 years?

But stimulating work is not an end in itself. In the past decade, the working world has become a battleground for the struggle between the boring and the stimulating, he noted. We think that work should not only be challenging and meaningful, but also invigorating and entertaining.

'But really, work should be like life: sometimes fun, sometimes moving, often frustrating, and defined by meaningful events.'

Those who have found their place don't talk about how exciting and challenging and stimulating their work is. Their language invokes a different troika: meaningful, significant, fulfilling. And they rarely ever talk about work without weaving in their personal history, he said.

Place defines you

Every industry has a culture. And every culture is driven by a value system. One of the most common mistakes is not recognising how these value systems will shape you, said Mr Bronson.

'People think that they can insulate themselves, that they're different. They're not. The relevant question in looking at a job is not 'What will I do?' but 'Who will I become?' '

Once you're rooted in a particular system, it's often agonisingly difficult to unravel yourself from its values, practices, and rewards.

Ultimately, the answers to who we are, what our callings are, are very individual. On his journey, Mr Bronson met people in bureaucratic organisations and bland industries who were absolutely committed to their work. That commitment sustained them through slow stretches and setbacks. They never watched the clock, never dreaded Mondays, never worried about the years passing by. They didn't wonder where they belonged in life. They were phenomenally productive and confident in their value.

In places unusual and unexpected, they had found their calling, and those callings were as idiosyncratic as each individual.

Asking 'What should I do with my life?' is the modern, secular version of the great timeless questions about our identity, said Mr Bronson. 'Asking The Question aspires to end the conflict between who you are and what you do. Answering The Question is the way to protect yourself from being lathed into someone you're not. What is freedom for if not the chance to define for yourself who you are?'

Mr Bronson said he spent two years in the company of people who have dared to confront where they belong. They didn't always find an ultimate answer, but taking the question seriously helped get them closer.

'We are all writing the story of our own life. It's not a story of conquest. It's a story of discovery. Through trial and error, we learn what gifts we have to offer the world and are pushed to greater recognition about what we really need. The Big Bold Leap turns out to be only the first step.'

What % are you?

Keppel Offshore scoops $800m rig deal

The decision to contract a semisub with Keppel takes place just one day after Petrobras officially canceled its giant tender for the chartering of up 21 Brazilian-built ultra-deepwater drilling rigs.


Back in July, Sete Brasil partnered with Odfjell, Seadrill, Etesco, Odebrecht, Petroserv and Queiroz Galvao for the construction of a total of 15 drillships and six semisubs, while Ocean Rig bid alone for the construction of five drillships.

Petrobras said it is now engaged in direct negotiations with Sete Brasil and Ocean Rig in an attempt of getting better contract conditions.

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

Createweath8888

Fairly high chance of a few more semisubs coming from Sete Brasil.


Keep averaging down on your favourite stocks???

Read? Will you dump more than 50% of your capital at one go into your investment?

Not the first time and will not be the last time that I am hearing it again from the mouth of a big loser

I came to realise that there two groups of retail investors who are more likely to average down on their losing stocks to build up fairly large positions in their portfolio. They are smart ones or ignorant ones.

The rest of us who thinks that we are not that smart and are still attending lectures and doing tutorials in the University of Stock Market better stay far away from it. It is really very difficult to recover from huge losses in our portfolio without injecting significant new capital into our portfolio. How many of us can keep injecting more and more capital for investment?

Friday, 23 December 2011

Kep Corp

Noble to gain US$200m fr Yanzhou-Gloucester deal

SINGAPORE - Singapore-listed commodities firm Noble Group said on Friday it will make a one-time gain of about US$200 million from a proposed merger between its subsidiary Gloucester Coal and the Australian unit of China's Yanzhou Coal Mining Co.

The deal, announced in Australia late on Thursday, will create one of Australia's largest listed coal companies. Noble and its units together own about 64.5 per cent of Gloucester.

Noble said in a filing to the Singapore stock exchange that it will receive about 130.9 million Yancoal Australia shares and A$420 million (US$416 million) under the terms of the proposed merger.

'Based on information the group has to date, the group estimates its gain on the disposal to be approximately US$200 million,' the Singapore-listed firm added.

Noble said it plans to reinvest the cash proceeds from the proposed merger in its global businesses. -- REUTERS



Singapore inflation quickens even as economy slows

SINGAPORE - Singapore on Friday reported higher-than-expected November inflation even as industrial production surprisingly fell, putting pressure on the government to announce new measures to contain prices and keep costs down in its February budget.

Singapore's consumer price index rose 5.7 per cent last month from a year ago, accelerating from October's 5.4 per cent increase and matching the near three-year high seen in August.

Industrial production fell 9.6 per cent in November from a year ago, hurt by a 30.1 per cent plunge in electronics.

The government had already warned last month the Southeast Asian city-state's economy could contract in the current quarter when it cut its growth forecast for 2011 and the Monetary Authority of Singapore (MAS) expects inflation to ease in 2012.

'The MAS is between a rock and a hard place. You've got pretty sticky inflation and you've got an economy that is slowing,' said Matthew Hildebrandt, an economist at JPMorgan in Singapore.

He said private transport costs are high due to government measures to restrict the car population and tighter immigration policies mean labour costs are firm.

Citi economist Kit Wei Zheng said in a recent report that the Singapore would have to use fiscal policy measures to contain prices and cut business costs.

Inflation in most Asian countries has eased in recent months and economic growth slowed because of weakness in West, while China has begun easing restrictions on bank lending to help support its economy.

Singapore manages monetary policy by letting the local dollar rise against a basket of currencies, keeping import prices down.

But inflation in the city-state is currently at elevated levels partly due to high private transport prices, which have been affected by the government's decision to tighten the supply of certificates of entitlement (COE) that people must get before buying a car.

Singapore has also tightened its once-lax immigration policy, keeping demand for labour tight even as the economy slows.

The Monetary Authority of Singapore's (MAS) core inflation measure, which excludes private road transport and other components whose prices are influenced by government policy, rose by a smaller 2.4 per cent year-on-year in November.

Singapore next reviews monetary policy in April while its budget for the fiscal year beginning April is likely to be announced in February.

The central bank's current policy stance is to allow a modest and gradual appreciation of the local dollar.

Looking ahead, most market players expect inflation in Singapore to ease.

'After achieving about a 5 per cent growth in 2011, we expect GDP growth in Singapore to be at the lower end of the 1-3 per cent range forecast by the government. Against this backdrop, inflationary pressures will gradually abate into 2012,' said Cheng Duan Pang, head of fixed income at Manulife Asset Management in Singapore.

'We expect upward pressure on the Singapore dollar to reduce as the market will form expectations that monetary policy could revert to a neutral stance,' he added.

Song Seng Wun, regional economist at CIMB, said Singapore's manufacturing sector is likely to remain weak except for pharmaceuticals which has been boosted by new plant openings.

'Electronics will only start to improve once we start seeing the Europeans spend again. As for the US, even though fewer people are filing for jobless claims and we see modest improvement, but the economy is still not generating enough jobs to be supporting a strong recovery,' he said. -- REUTERS



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