Monday, May 18, 2015

Uncle Chua: SG Secret Millionaire

The book

The Author

Recently, I read Uncle CW8888 post about Uncle Chua. Hey! the story sound quite familiar and I did read it somewhere a few years ago. So I dig my bookshelf and finally found the book 'Why I keep losing money in Stock Market'. It was first published in 2005 by a remiser. Wow, almost 10 years ago. The last section of the book has a very motivating real live case study of Uncle Chua. He is a great movitation for all of us.

How about if I tell you that you just need to start building up your retirement stock portfolio when you are retired in the 50s and you will end up a millionaire? No need to do in depth stock analysis, everyday just need to monitor the stock price using daily newspaper and no computer, graphs or fanciful software required.

Finally someone local, a Singaporean did it. He achieved financial freedom and build riches by investing in stocks.

Here's how Uncle Chua did it
1. Buy only and just blue chips eg SPH, Keppel Corp, Sembcorp, SingTel, etc
Copy of the hardcopy statement

2. Buy bit by bit when market is down

3. Live till ripe old age to allow your investment to compound and multiply. He lived up to 85 years old.

4. Stay invested and reinvest all dividends into his portfolio

5. Frugal. Lead a very simple life, he wore simple clothes, slippers and travel by bus. Car is way too expensive in Singapore

Uncle Chua is no longer with us now but his investment portfolio and knowledge has been inherited by his children. Accordingly to the book, his children will still call the remiser to buy blue chips when market is down.

We should all learn from his experience.

Friday, May 8, 2015

The Doubling Effect

This was an advertisement captured from Business Times. I thought it was a very good illustration of the magic of compounding interest at work using different asset vehicle.

Looking at the table above, FD will take 72 years to double at 1% interest OMG!

It looks like most of us should be able to target about 6% to 7% of return by investing in blue chips or ETFs so that our investment can doubled every 12 years.

If you want higher returns, you have to look out for hidden gems or value stocks. These are normally not under the big boys radar.

Another alternative is if you are a hardcore contrarian buying big time during global economic crisis just like the 2008 Great Financial Crisis (GFC) due to the collapse of Lehman Bro, you should be able to get 10% to 12% of return therefore doubling your investment every 6 years! However, these GFC do not happened often (touch wood!) do take advantage of it when it happens!

Saturday, May 2, 2015

Apr 2015 Portfolio

Market kinda strange and manipulated, me thinks. The US job report came in worst since 2013 before Good Friday and US futures fall sharply. However, on Monday, STI reacted positively to the news because Fed will not be raising interest rate so fast because of poor job data. Huh? Well, nevermind, we still go by our business and its good for us. This is also a reminder that we may still be in the bull market because if it was the bear market, the slightest bad news will cause the market to fall by a big margin. That's the difference.

Finally had a feel of a bull run after all these months of bear. There's a small caps play going on and the O&G stocks are recovering. Nice :)

This month I added CSE Global into my portfolio.
It was established in 1985, was once part of the engineering projects division of Chartered Electronics Industries, the electronics arm of Singapore Technologies Engineering. Its quite a good value buy now with consistent high dividend. It used to be trading around $0.70+ range and much higher but have fallen to $0.50+ range. PE is 8 and it has a low debt.

Also added another blue chip Keppel Corp :)
I have been watching this counter for a long time. Its low PE 8 and good dividend of 5% makes it a good buy. I didnt buy when it was $8+ because it was a downtrend (didnt want to catch the falling knife) but looks like its come up and just ripe for picking.

Also added more Sembcorp Ind :)
STI vs my portfolio

This month, there was a bull run and my portfolio went up by a bit. However, there's lots of companies XD this month such as Sembcorp Ind, ST Eng, etc so my portfolio went down by abit. Overall, still lose out to STI which ran up pretty good. Maybe better luck next month :)

PeriodSTIMy Portfolio (Realised)Verdict
Jan 20152.71%3.21% I win
Feb 20152.41%2.16% I lose
Mar 20153.31%0.62% I lose
Apr 20156.02%4.18% I lose
Total 14 stocks in portfolio

This month I got my biggest dividend scrip from Global Inv
Checkout my Dividend history

Dividend Stock Tracker
I keep track of good SGX dividend stocks such as 10 years consistent SGX dividend stocks, REITs, Business Trusts, etc with real time information update. Checkout the link below:
Checkout my Dividend Tracker