Individual Investment Talk

“The trick of sound investment in 3 words; margin of safety” – Benjamin Graham GOOD SENSE Idea: If a small business is paying out all its income as dividends, no margin is had because of it of protection. When a continuing business downturn occurs, the dividend must be reduced. Invest in businesses that have higher income than dividends to help ensure dividends won’t be cut during business downturns. Financial Rule: Rank stocks and shares by their payout ratios. “All you need for a life of successful trading is a few big winners” – Peter Lynch Common Sense Idea: Invest in businesses that have a brief history of solid growth.

If a business has maintained a higher growth rate for several years, they will probably continue to achieve this. The more a business expands, the greater profitable your investment can be. Financial Rule: Rank stocks by long-term income growth. “Psychology is probably the most important factor in the marketplace – and one which is least understood” – David Dreman Common Sense Idea: Look for businesses that individuals invest in during recessions and times of panic. These businesses will have a comparatively steady stock price that will make them simpler to hold for the long run.

Financial Rule: Rank shares by their long-term volatility. 250,000 houses, the money is taken by you. It is the same with a stock. When you can sell a stock for much more than it will probably be worth, you should. Take the money and reinvest it into businesses that pay higher dividends. “When the facts change, I change my mind.

  • Founder: Dave Asprey
  • Dobson, Capital
  • 4 years back from Texas
  • Original value
  • Unearned Revenues
  • Known Investors: AccelFoods, Emil Capital Partners, Monogram Capital Partners

What do you are doing, sir? ” – John Maynard Keynes GOOD SENSE Idea: If a stock you possess reduces its dividend, it is paying you less over time instead of more. This is actually the opposite of what should happen. You must admit, the business enterprise has lost its competitive benefit and reinvest the proceeds of the sale into a far more stable business. Financial Rule: Sell when the dividend payment is reduced or removed.

“The only traders who shouldn’t diversify are those who are right 100% of that time period” – John Templeton Common Sense Idea: No-one is right all the time. Spreading your investments over multiple stocks and shares reduces the impact to be wrong on any one stock. Financial Rule: Create a diversified portfolio over time. UTILIZE THE 8 Rules of Dividend Investing to rank high quality dividend growth stocks. Buy the highest ranked stock that you own the least every month to build your varied portfolio as time passes. Evidence: 90% of the benefits of diversification come from buying just 12 to 18 shares.

Many appear to be able to time the marketplace and reported earnings while my portfolio stagnated with the realized loss back in December. It really is time spent on the market (spent), not timing the market. The ability to keep positions and ride through volatility appears to be an essential component of an effective investor’s setup.

My REITs positions generally recovered and are in the green from the December loss and again I gathered some dividends. We can not forecast where Mr Market would mind but we can simply determine if Mr Market offers up discounted prices. But cheap and undervalued are often different to different investors who’ve a varying trading/investment time frame. Defensive stocks are stocks and shares that are likely to be mature stocks. This means that generally, there isn’t much growth in them. However, on the bright side of things, they can generally better endure a market crash because they are likely to have a high free cash flow, decent development/very stable and constant dividends.

These stocks tend to be inert to advertise cycles and products/services that would still confirm strong and popular in a market downturn. Barriers of entry into the market, if any, are also an advantage for these counters. Usual suspects would be telcos, utilities, transport, healthcare. As telcos are facing increased changes on the market and I am already vested in Singtel, I made a decision to exclude them. Thus, I narrowed to look at SBS down, ComfortDelgro, Vicom, Parkwaylife Reit, (I will look to add a few of these counters to my profile to create the “base” of steady stocks.

SBS is a familiar name as a bus-services operator to numerous Singaporeans even as we take them frequently on a daily basis. SBS also has been working MRT services since 2003 (North East Line) and 2013 (Downtown Line). It also operates the LRT lines in Sengkang and Ponggol. 7 billion to move SBS transit and SMRT buses procedures to the new government bus contracting model (BCM) for better service against disruptions.