Portfolio January 2015

Month End Portfolio Update:

Actions for this month, I had sold off Capitamall Trust to get Keppel Corp to diversify my REIT holding to another hot growth prospect (read more here). Having to realise a profit of $967.74 from paper gains in Capitamall Trust, which I am very happy about.

Date                  Type Stock      Transacted Units Transacted Price (per unit)

19. January 2015 Buy      Keppel Corp         1100                 $8.10

21. January 2015 Sell      CapitaMall Trust 4000                 $2.18

Biggest Winner:

Keppel Corp - I bought this share 2 weeks ago at a price of $8.10 and then 2 days later. Keppel Corp decided to privatise Keppel REIT which had caused KC price to go up averagely $0.10 everyday due to the rebalancing of total net worth. I must say that I am very lucky to get this deal at the before the privatising announcement. (luck plays a small part)

Biggest Loser:

Ascendas Hospitality Trust - This high dividend yielding share was introduced by my friend (he vested in it as well) when I first started investing in August 2014. The share price was constantly dipping in the few recent month due to various factors. What I can do now is to wait for the dividends first and see if things would change then before deciding to cut loss from this counter and inject that capital into another counter.

Announced Dividends:

Feb 15

27 - Cache $107.30

27 - FCT $110.00

27 - Starhill $25.80

Mar 15

26 - Aimsaimp $283.00

Last year, in my Total Gain/Loss column reflected in the spreadsheet above was most in red. I'm seeing a positive gain currently from most of my stock holdings now. How I wish that I started this earlier when I already have savings sitting in the savings account where the share prices were so much better. Despite not having that kick start, I'm glad that I am on track now.

Cheers

Jeffrey

My Feel - Fraser Centrepoint Trust (FCT)

CAR STORY

Today had been a long day for accompanying my friend to service his car at Hyundai Servicing Centre at Alexandra Road (Tiong Bahru area). We reached at 10.30am and had to wait until 4pm to have his car serviced. According to him, every car must be serviced for every 10,000 km distance travelled. During the servicing, the administration rep would try to sell things saying "you need to change your battery" and stuffs like this. I don't recommend changing anything there other than doing basic servicing. Because the price is hiked due to it's award winning records and so on. Example: a shell engine oil could be bought at around $70 in public but it was sold $100+ there according to my friend (who brought to replace a better engine oil at $50+ through the internet so as not to purchase the overpriced Shell engine oil)

Since today, I couldn't help but I felt sympathy for car owners in Singapore because of the overpricing in COE, jams on the road during peak hours, having to pay ERP and still get jam, having to expend on periodical insurances, road taxes, parking fees, inspection fees, petrol, ad hoc repairs and servicing fees that may still have to wait half a day to get it serviced. I had to admit but I have plans to own a car in the future when I have a family.

MAIN TOPIC

During our wait, we walked to Anchor Point in motivation of finding Kale veggie for my juicing nutrition inside Cold Storage. Finally! I got Kale! Some more it was on a discount due to the expiry date I guess. It is very hard to find Kale over here due to it's scarcity and overloaded benefits (here). After that we walked around the shopping mall it was quite heart warming to see groups of family gathering at the atrium with an event where stage was set up for the Prom King and Prom Queen childrens were made to dress up like prince and princess to cat walk the stage, when crowd from every level are looking down cheering for them.

Fast forward ->

Finally, as my friend have gotten a Manhattan Fish Market 1-for-1 voucher when he paid his bills in the AXS machine. We went to Bedok Point to enjoy the benefit. It was nice, but I shouldn't talk too much about it because 'NPNT'. After dinner, we walked around the mall talking about which shop would continue staying in Bedok Point and which shop would close down as we noticed some of the stalls are really empty. Jon, my friend mentioned earlier that there were a few malls before Bedok Point closing down due to lack of human flow and that may be due to myth that, it is a bad location as he labelled it as "Ghost Mall". But I guess Bedok Point is now doing well since there's quite a decent human flow when it comes to food as Bedok Point has a majority of F&B tenants.

Guess what? We saw the old Sushi Tei closing down and the place is now being renovated for the opening of Saizeriya soon to come along with some Korean chicken restaurant beside it. Can't wait for Saizeriya to open as they sell some italian-western fusion food on a cheap price for a restaurant and the food are not too shabby as well.

Overall, I enjoy visiting malls managed by FCT than CMT. I didn't say that because I had sold my CMT shares. I just felt more homely and things are more organised by the managements. And somehow I feel that restaurants tenants there are generally more affordable than in other malls, not including the $10 bread shop.

What I Think

For a shopping mall, I think the most important thing is comfort. People like to go back to places that they feel comfortable with. Second is product/services, so on and so forth. I think FCT has done a great job. I have confidence that it will grow further independently, despite not being a blue chip with government backing.

What do you think?

Portfolio Update January 2015

This month, minimal activities happened as I am building up my money from monthly savings and looking for a chance to inject into the stock markets when the price is right, For POEMS users I personally think that the broker fee of $10 for 100 shares purchase is quite a waste of money. So I haven't really started using that service yet.

Recent actions: 

1) I've sold off my CapitaMall Trust to buy Keppel Corp. Why did I do that? Informations can be found on my blog post here if you are interested to find out more.

2) Cancelled off my POSB Regular Saving Plan for Nikko AM ETF after 2 months, as I wanted more control of every dollar I have in my hand.

3) Trying to reduce my Prudential Endowment Plan from $500 to $200 per month. Trying my best to work a way out to not waste any dollar in this process.

My way ahead for next month is to continue to watch the oil price, if it drops further I may continue to repeat what I did to CapitaMall Trust. Generally, my focus now would be more on the oil markets and also my health. I aim that every day I will make my own vegetable juice where I am currently exploring more in depth about health and nutritions.

Diverting of Portfolio

I am glad I'm on off today so that I have the chance to go through a day of volatile stock market in the STI which finally ended at 3307.700 (+7.020).

Primarily, my focus is on few stocks on my Holding List and Watchlist which most of the time, I am looking at Capitamall Trust and Keppel Corp.

It's been awhile since I wanted to divert my REITS stocks to Growth stocks hence today I've made up my decision and take chance on the volatile market.  As today is a day where people can starting buying shares in multiply of 100.

I managed to purchase 1100 units of  Keppel Corp @ $8.10 = $8910 (closed $8.18) 

On the other hand, I am still trying to sell off my 4000 units of Capitamall Trust @ $2.18 = $8720  (closed $2.16) looking to realise a paper gain of $1056 not including the brokerage. I will give this a go until this Friday, 23 Jan before the market closes. If not I will just settle to whichever is the next highest before the stock market closes on Friday.

The reasons why I buy Keppel Corp:

1) This is an appropriate time to get Keppel due to the falling oil prices. (I don't want to keep guessing/predicting about how much further the oil price will drop, i believe at this point my entry is relatively conservative already)

2) When the oil crisis saga ends, the price will recovery back to about 30-40% (don't know when, but it's a waiting game)

3) Dividends yield not too shabby (average of 5%)

4) I want to make full use of a crisis and here's the chance.

The reasons why I choose to sell off my holding of Capitamall Trust:

1) I believe it's a relatively matured stock which may have slow growth from now onwards.

2) It will realise me a profit of $1056 not inclusive of brokerage fees.

3) I believe FCT still has the potential to grow further so I don't want to touch it.

Would like to hear from your sharing and what do you think if you were me?

PS: The aboves reasons are only made of what I feel and what I think, hope fellow investors have no offence.

Treat to Keep Myself Going On [Portfolio Update]

Hello if I could just pretend to have your attention,

It's been a frugal fortnight for me and I decided to go easy and give myself a treat since I managed to save a little from my daily $20 expenses on tonight's dinner with friends at Le Steak Restaurant. Approximately after sharing the desserts, each person damage is $25 nett.

Sirloin Steak ($16.90)

Creme Brulee ($10.90)

Waffle Ice Cream ($9.90)

Additional Income this month:
Selling of Porter Sling Bag at $120 on goodwill to my good friend (Cost $3500NT = $152SGD; 1 : 23 xchng rate). I am currently using the exact same bag currently and had bought this from Taiwan 6 months ago when I was working there. Initially thought to use it as a back up bag but then I guess I don't need it anymore.

Less Handphone Bill from Feb onwards:

I always wonder handphone bill why does it always cost so expensive. I was shocked that I'm paying extra $10 every month when I finally take a scan through on the latest bill, just for the Autoroam service that I had never use. Immediately, I called the M1 customer service centre to cancel off that service.  I do no know why that service was added in the first place but I'm glad I notice it soon. From Feb onwards, my hp bill will be $60+ after deducting the autoroam $10net charge every month. Which I do not need at all..

Update on Portfolio:
Yeah! I'm seeing a good growth especially on Capitamall Trust on a price high of $2.15 and Fraser Centrepoint Trust at 1.925 after finish constructing East Point and beginning to rent out to various unit holders. I believe this time FCT price will be more stable at 1.925, rather than dropping down to $1.8+ again. My biggest losers are still Ascendas HT and Croesus RT. But overall the result appears to be a gain.

Maybe that's for today only, but I am contented because: 我不在乎天长地久，只在乎曾经拥有.

Whats is Your Cash Flow Pattern?

Finally I finished the Rich Dad Poor Dad book, there's so many things to learn from Robert Kiyosaki. One specific thing that is simple and realistic is the Balance Sheet and the Cash Flow Pattern. The bank doesn't ask you for your academic report card when you want to borrow money, they are only interested how well you know how to manage your money. Do you think your house is an asset? do you think your car is an asset? Find out below, what three types of Balance Sheet and the Cash flow pattern of Poor, Middle-Class and Rich;

The Poor:

This guy is like most of us who lives with our parents, he depends on his salary every month to pay on his expenses. Every month he gets his salary to pay for his necessities.

He may have saved money inside his POSB Savings Account every month for future uses and to earn interest of 0.00275 if I am not wrongl, For every $10000 he puts in his POSB Savings Account he earns $25 a year for the interest part.

He have to depend on his pay check to survive, forever.

The Middle-Class:

Say, this guy is a lawyer by profession, he earns a significant sum of income every month, say $8000. Since he have high income, he used that to buy 5 room HDB/Condo, a BMW 5 series some Credit Cards. Take a look for his cash flow pattern. He earn his $8000 so that he could pay off his needs and his wants like HDB housing loan, Car Loan, Credit Card Premiums/Interest Charges.

He is alright if he keep working and pay the HDB loan, Car loan and his Credit Card. He lives a comfortable life with his high income.

LETS SAY, one day he got out of job, would he have enough to pay his Housing/Mortgage loan, Car Loan, Credit Card Premiums? He is somewhat Rich due to his High Income but then not Wealthy.

Wealth means the duration you can sustain yourself without working.

He have to depend on his pay check to survive, forever.

The Rich:

This guy earns his money from his salary, he injected his money to purchase and grow his Assets. He don't buy a car, don't buy a house because it is a Liability to him.

One day, he is able to quit his job when he feels it is enough for him to live with his Income generated from his Assets every month, to pay for his Expenses. He uses the income from his Assets to buy another Assets for himself House and Car. He pays tax but Property Tax from his Real Estate Investments where he rents out to generate income.

Some people asks how Rich is Rich, that really depends on what you really want. If you feel comfortable living with a $2,000 Income after deducting all the liabilities, If $2,000 income solely for necessities is enough for you to have a comfortable life. Than I say you are Rich.

Because a Rich Man isn't the one who has the most, but rather the one who needs the least.

My Cash Flow Pattern:


I am like The Poor and Middle-Class, trying very hard to become like The Rich. 50% of my income will go into the Assets column, $600/mth to Stocks and 500/mth to Prudential Endowment Plan.

My liability now is only the Housing Loan of my parent's HDB and which I'm staying in, I don't have any other liability at all at this moment.

Few of my friends upon signing on Army as a regular, they bought a car right away so that with that sign on bounty. Because they don't understand how money works.



Expectation vs Reality
I know talk is cheap, but in reality it is not so easy in Singapore, especially with the High Cost of Living and High Cost of Property Prices. Want to depend on that Government for your retirement? You don't even know what your CPF money is being used on in the first place due to lack of transparency.

But if you really want to break through and get out of the Rat Race, if we don't want to work till old and hope the Government can support us for the rest of our lives after retirement, which there's uncertainty. Shouldn't we take control now instead of following the current system what people are doing?

Study Hard -> Get Degree/Masters -> High Pay Job -> Work Till Old -> Get controlled amount of CPF -> Die without having back all CPF Contributed.

What is an Asset/Liability
I hope the above illustrations can make people understand about Cash Flow and the difference between Assets and Liability.

Assets are things things that put money into your pocket.

Liabilities are things that takes money out of your pocket.

When a dollar come into your hands, this is where you make your choice to become either rich or poor.

With that, thank you for the time!
Jfree

Hyundai Slow Juicer

Another Goal achieved - To buy a slow juicer.

In October 2014 I bought this Juice Maker, looking to keep myself healthy at a price of $79.00, it was good until I researched further in-depth about making juices. The method of juicing for this old juicer is to use high speed rotational blade that break down a fruit into very tiny pieces and swivel its juices out. However this high speed blades causes frictional heat may that destroy vitamins and other nutrients from the fruit itself, making the value of nutrients drop by juicing it.

After much reading of positive reviews and comparisons among some of different brands, doing some logic rationalising between 'Pricing and End Product' I decided to give it a try on Hyundai Slow Juicer. Hyundai, as everyone knows is a car brand in Korea. I was thinking if Hyundai is in a vehicle business, it's motor of the slow juicer should also be quite reliable and durable. This juicer uses an ancient way of extracting soya milk by grinding and squeezing soybeans with water on a big piece of rock grinder, without taking away it's nutrients.

Below will be some pictorials and review of the slow juicer that I've just bought and used immediately after I got home.

  

This was bought from Parkway Parade's Atrium where electronic products were put in a mini road show event. I bought the 2nd last piece of this juicer at Price: $99.00. It provides a 1 to 1 exchange Warrant of 1 Year. The sales promoter mentioned that this product is a good sell, as yesterday someone bought 5 units of this as a gift to others.

After breaking open the box.

Right away I washed it and get it assembled ready to be used.

While inside Giant's Supermarket I also bought along some fruits.

I used half of what I had bought

 Wash and cut them into small pieces to fit the entrance of the juicer.

Start Juicing!

End of Juicing

The Waste Product

Rather dry, can be used to make purees if not can throw.

In Addition, I soaked up a tea spoon of Chia Seed with some water and wait for 5 mins for it to get gluey, and pour it inside my glass juice container and stir it together with the fruit juice.

It was keep inside the fridge for 15 minutes and I'm impressed that the fresh color of the fruit juice still remain same as the beginning, which means nutrients are not destroyed!

Conclusion: This is only the first time I use this product so I'll try to be as neutral as possible. Juice yield is high, I got about 600ml of juice from half the fruits I bought. Slight preparation time needed as theres a need to cut fruits into smaller pieces to fit the entrant. Doesn't destroy vitamin due to frictional heat, Washing is only rinsing, just rinse without any soap would do but then theres a need to brush the stainless steel swivel thoroughly to prevent fruit pulps stucking in. Last but not least, the juice taste natural but slightly pulpy (10% pulp : 90% juice) if you want you can use another swivel to filter out the pulps but for me its not an issue at all.

Recommendation: If you don't have a juicer, get this! Consider this as an self investment, to bring your health back to the way it used to be. It is cheaper by a lot to make juice at home comparing with buying it at fruit juice stalls. With the correct mixture of fruits and vegetables, it can be used for multiple reasons such as Detoxing, Weight Loss, Beautifying, Prevent Illnesses, Look Younger etc. 

Calculation of Portfolio for Next 5 Years.

I'm trying to picture what my portfolio growth would be in 5 years time so I've decided to come out with a simple Excel Sheet to calculate that with the following assumptions:

1) Annual injection of capital is $10,000.

2) Average dividends yield is 6%

3) Dividends to be reinvested 100%

4) All else remains constant

	Year	Initial Capital	Dividends (6%)	Annual Injection	Total	Average Dividends Per Month
	2015	$60,000.00	$3,600.00	$10,000.00	$73,600.00	$300.00
	2016	$73,600.00	$4,416.00	$10,000.00	$88,016.00	$368.00
	2017	$88,016.00	$5,280.96	$10,000.00	$103,296.96	$440.08
	2018	$103,296.96	$6,197.82	$10,000.00	$119,494.78	$516.48
	2019	$119,494.78	$7,169.69	$10,000.00	$136,664.46	$597.47

This is what I would At Least have by end of 2019 at the age of 32 years old with all the assumption where everything remain constant.

On top of that I would have $54972 principle amount inside my Standard Chartered Flexi-save endowment plan (which is a huge mistake i've made)

All at the end of 2019.

Conclusion: The growth doesn't really seem optimistic with just $10,000 annual injection.. I guess I will need to cut down more on my expenses and delegate more dollars into my portfolio to work for me as my employees. This is my own business that I will have to groom it myself.

Recommendation for Myself: be a little more frugal and to increase my annual injection to $15,000.

And it would look like this!

	Year	Initial Capital	Dividends (6%)	Annual Injection	Total	Average Dividends Per Month
	2015	$60,000.00	$3,600.00	$15,000.00	$78,600.00	$300.00
	2016	$78,600.00	$4,716.00	$15,000.00	$98,316.00	$393.00
	2017	$98,316.00	$5,898.96	$15,000.00	$119,214.96	$491.58
	2018	$119,214.96	$7,152.90	$15,000.00	$141,367.86	$596.07
	2019	$141,367.86	$8,482.07	$15,000.00	$164,849.93	$706.84

What am I Doing Recently

Updates!

1)  Im back to single again as the initial agreement was to be on steady trial with this cute Malaysian girl. To try out a relationship to get to know each other better and to be able to 'ring the bell' at any point of time if anyone of us thinks it doesn't work out.

2) I've read the Rich Dad Poor Dad book halfway and learn a lot from it. Mastering about life and not to let emotions take over. I moved on in life, I am more optimistic in working (lesser complains) now because i know that will lead me to getting more income generating assets such as stocks.

3) Got my comfortable office chair! It's $88 inclusive of $10 delivery fee. anyway still cheaper than what you see in IKEA or in the shopping centres. if you are interested can visit Qoo10 for more info, just sharing :)

4) Portfolio turns red again right after new year. hahaha, but it doesn't affect the optimistic me, it will go back anyway when economy gets better. I'm only sighing about why I don't have the money to inject into investment at this moment.

5) I started using expenses tracking app to track my expenses, hopefully it can help me minimise any unnecessaries for myself after i get shocked by looking at how much junk did i actually spent on. 

Thats just a quick one, nothing much really it's just about myself :)