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Did You Beat the Market in 2015? I Did Not.
23 Dec 2015
As 2015 is coming to an end, I am interested to see how well I did, especially since this is the first year where I had sufficient surplus to invest seriously in the stock market. I am especially interested to know how well I fared against a form of benchmark. In a previous article, I suggested that an easy and good way for anyone to start investing is via ES3, an Index ETF tracking STI. The truth ...
Keeping an Investment Journal (in SGXcafe)
17 Dec 2015
Sometimes, I think I have an investing addiction. Just like people with a shopping addiction who feel compelled to go shopping whenever they have the time or money, likewise, I feel compelled to read up on stocks whenever I have the time (which was why I built SGXcafe to gather as much useful information as I can find for my ease of reading) and buy them whenever I have the money. However, I face a ...
What to buy next? - Part 2
15 Dec 2015
(Updated: 7 Jul 2016)
There exists hundreds of stocks in SGX and deciding what to buy next is not an easy task. In part one of the "What to buy next?" article, I shared a few tools in SGXcafe designed to help me with this problem, including a new screener tool, Screener added to SGXcafe about 3 weeks ago. Screener was met with very positive response and high usage, and I received comments on how useful it was and requests ...
Trapped in Chennai, India
8 Dec 2015
On a recent business trip to India, I was stranded in Chennai because of massive flooding everywhere, including the airport, due to the worst rains the city has seen in the recent century. I shall skip the details of who, what, when, where, why and how I was trapped and escaped, but focus instead on what I felt during my time there. The Rich vs The Poor It was Day 3 since the heavy flooding started. ...
What to buy next?
25 Nov 2015
(Updated: 7 Jul 2016)
"What to buy next?" Almost every month, I ask myself this same question whenever my salary arrives or when a good amount of dividends have accumulated. When I first started investing, I wanted a diversified portfolio which is why I built the tool, iSuggest (iSuggest is free for all registered users). It worked well at first, as it quickly brought my portfolio risk down to a minimum. However, for those ...
Bull or Bear?
27 Oct 2015
"No price is too high for a bull or too low for a bear" - an old Wall Street proverb It is a known fact that investors can be over-optimistic or over-pessimistic at times. When a series of good news happens, investors switch into the optimistic mode, often over-optimistic, and significantly bid up the price of a stock ditching any rational pricing theory whatsoever. Any high price will be justified ...
How Much is a Stock Worth?
17 Aug 2015
Recently, I read a book, A Random Walk Down Wall Street by Burton G. Malkiel. In the book, he discussed two ways to valuate a stock - The firm-foundation theory and the castle-in-the-air theory. The firm-foundation theory assumes that each stock has a true value which is equal to the present value of all its future dividends. It is likely that you have heard something similar because this approach ...
A Simple Trend Analysis of Dividends
6 Jul 2015
One factor that affects whether I purchase a stock or not is how much dividends it gave out last year, and for how many years it has been doing so. This is because when I purchase stocks, I am hoping mainly to benefit from dividend gains rather than capital gains. One obvious question would be: how much can we rely on the dividends that was paid out in the past to predict future dividends? One might ...
Can you avoid investing?
16 Jun 2015
Recently, a friend of mine sent me an article about how you should create a "total portfolio" that takes your career into account as part of the portfolio. That is, if you have a stable job, you should buy risky stocks so that you would have opportunities for huge gains since you are unlikely to get large pay raises. Likewise, if you are an entrepreneur, you should hold safe bonds since your career ...
How diversified are you?
5 May 2015
(Updated: 26 Jun 2016)
As the idiom goes, "Don't put all your eggs in one basket". It is common knowledge that diversification is very important when it comes to investing. However, the questions are: How to diversify? How diversified are you? How do you measure diversification? Google "How to diversify" and there are countless articles out there "teaching" people how to diversify. In my opinion, many articles are either ...