Reflection of 2009

2009 year was a great year for my investment portfolio. I have recover my 2008 losses and earn a tidy profit in the year 2009. Some of my proudest stock pick in last year include keppeland,FSLtrust and suntecreit. I have thrown every penny i have into the stock market as i deem many stocks are trading at a ridiculous low price. It is only a pity that i do not have extra money to invest in. If not, i will be even a step closer in acheiving my lifelong goal. This also higlight an important lesson which is to always to maintain a certain level of money with you to capitalise on once in a life time opportunity.

2009 was a year when many people become fearful. There was much uncertainty about the economy and many people was fearful that they will lose their jobs. I too was also very worried about my investment portfolio which at that time was suffering from quite a big loss. But being a great fan of Warren Buffett, i turn to his words for advice. He famously mention time after time in TV interviews asking investors to be greedy when others were fearful and fearful when others were greedy. That was when i realise that i have to be greedy and buy in stocks even though there is so much uncertainty in the investing world. After my buy in, the stock market shoot up in the second half of the year which i did not see it coming. I thought there was still some time where i can accumulate undervalue stock. Nevertherless, i was greatful to have accumulate some good stock at that period of time.

Buffett's advice has once again proven to be so true and relevant in today investing world. if i have taken some advice from the so called financial experts, the result would be very much different.Ironically, my portfolio size has grown considerably till now since the onset of the financial crisis. I hope that it will still continue to grown bigger in this year and i am smart enough to spot and buy good companies at great price. There is still a long way of achieving my primary goal of retiring at 40 but i will continue to works towards in acheiving it. I am still waiting for my next breakthrough for my investment portfolio which is to include real property in it. Let hope that that day will not be far away.

Looking ahead in the year 2010, there are still many uncertainties but what is certain is that i will hold Buffett advice dearly in my heart.

The Magic of compounding with REITS

In my previous posts which is in January 4,where the market is irrationally pessimistic, I encourage my readers to be invested in Singapore REITS as the prices of these shares are very cheap. If investors who have bought REITS in between the period January and February will have make a decent gain. Going forward, i will still stick with my strategy as mention in my previous posts but will a little alteration. This time I will be investing in REITS using the money that i have collected from my past holding of reits. There will be no capital injection into my investment for now as my resources are drying. As mention in my previous posts, the two REITS that I have recommended made some money for me.I will continue to make more purchase if i will that the price is reasonable. Others REITS that i am looking now is Capitalcommercial,starhill and capitalmall. Feel Free to comment about my investing strategy and click the advertisment by nuffnang to show support for this blog. Thanks

Trading Strategy for 2009

Happy New Year to all my reader(if there is still any)It has been a while since my last post.
2008 has been a turbulence year for investors. Many have suffer financial losses and I am no exemption. In the year 2009, my focus will be on REITs which have been battered badly. Many of the REITs have reach below IPO price. I do not see any upside for REITs for the short term as prices of property and rent will continue to fall. However, when the financial crisis is over and the economy start to pick up, share price of REITs will go up. Another factor that will push the share price of REITs up is inflation. We have not seen the last of raging oil prices, and when the economy pick up oil prices might be higher than the previous pick. Therefore REITs will provide a hedge against inflation. The problem now is that we do not know when that will happen.

Some of the Reits that i have been buying
Suntec
Fcommtrust

macCookPFS-Undervaule gem

Due to the pessimism of the investor, a lot of stocks have fallen below their intrinsic value. One of them would be MacCookPSF. Net tangible asset stands at $1.02 per share while share price is trading at $0.49 which is approx 52% discount.
If dividend payout is the same as last year, dividend yield would be approx 25%. Which mean that if you hold on the stock for 4 years (assume dividend payout do not change) you would have gotten back the sum of capital invested. Only if you are willing to hold on that long

$0.49- share price as at 110808

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High Yielding stocks

High dividend stocks should form part of your portfolio and even more so when the market is volatile. Having stocks with high yield for the long term can be very rewarding. Ten year worth of dividends is not something to be ignored.

Dividend yields function as a reliable forward-looking predictors of stock prices. high dividend yield are associated with a deeply oversold market and vice versa. Eventually, the market will recognise that and the price will correct itself.

So which are the high dividend yielding stocks in the market right now.
1) Allco reits
2)Suntec reits
3)UOB kayhian
4)Gk goh

Security analysts-Should u trust them?

Why is it that some of the highly trained and well paid professionals have failed in their analyst?They will ask you to buy when the price is high and sell when the price is low. It can be attributed to four factors:
1) The influence of ramdom events
2) The productionof dubious reported earning through "creativity" accounting
3) The basic incompetence of many of the analyst.
4) The loss of the best analysts to the sale desk or potfoilio management

Asia the next superpower

Saw a article in times magazine saying that US might lose its place as a super power to Asia countries. Here are some the reasons why:

1) More Asian names in Forbes richest list

2) The biggest ferris wheel is in Asia

3) The biggest casino is in Asia

4) The tallest building is in Asia

5)The rise of China and india

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