Singapore Dividends for Financial Freedom - Chill Out

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Well folks, how are you? With the STI down about 20% and the media screaming bloody murder, what's a man to do?

Many people are selling stocks like there's no tomorrow. I've seen friends glued to Bloomburg, their eyes pinned open like Malcolm in A Clockwork Orange, grating their teeth.

'I just can't believe what's happening in the markets. This is weird' he said to me.

'What's so strange about it?' I replied.

He rubbed his red, puffy eyes with the back of his hand and said, 'Who knew there would be a crash?'

I walked away from this conversation scratching my head, his words echoing in my head.

'Who knew...? Who knew...? Who knew...?

Well, that's just it, isn't it? No one knows and if you think this way, you shouldn't be investing in stocks. If your mindset shifts to rhetorical questions, especially those of a defensive kind, then keep your hard-earned cash in a money market fund.

What I find weird is that the books, websites and blogs we read, the podcasts we listen to and posts we write are littered with historical data about this crash and that correction. It's doesn't take a genius to work out that after such a long period of time without severe market turbulence that some was on the way.

That's life my friend, warts and all.

Personally, I see this time as an opportunity as a dividend investor. I'm more than happy to let the markets tumble and pick up some bargains. Why pull your hair out and freak? The current corrections are as natural as water evaporating, forming into clouds and then falling as rain. It's the way it goes. Full stop.

My investing horizon is super-long term, so I will continue to reinvest my dividends no matter what the market is doing. If it's down, sweet. If it's not, cool. I'll continue to grow my dividend paying portfolio rain or shine.

Don't sweat it people. Invest in decent companies while there's some value to be had and sleep soundly with this in mind.

Singapore Dividends for Financial Freedom - Vegetarian Festival and your Portfolio

As I type, local Chinese communities in mainly Thailand, Myanmar and Indonesia are slicing, parading and praying their way towards the final day of the annual 'Vegetarian Festival' also known as the Nine Emperor Gods Festival.

Phuket, Thailand, is the best place to witness the festivities at their most frenetic. About half of the island's inhabitants are Chinese Thai, and these people congregate in the countless temples around the tropical paradise. During the week, people partake in rituals and ceremonies that resemble events from a forgotten age with gruesome mutilation and spiritual possession. 

In Thai the festival is called thetsakan kin che (Thai: เทศกาลกินเจ), 

As Wikipedia states:

'many religious devotees will perform ritualized mutilation upon themselves and one another while under a trance-like state, including but not limited to: impaling through cheeks, arms, face, legs, back etc., with everything from as small as syringes to as large as is agreed upon between all members; partial skinning (the skin is not removed, just cut and flipped over); slashing of limbs, chest, stomach and especially tongue with swords, axes and knives; bloodletting; removal of tissue (normally limited to cysts) and intentionally wrapping or standing near fire crackers as they are lit.'

https://en.wikipedia.org/wiki/Nine_Emperor_Gods_Festival

According to locals the purpose of the impaling and bloodletting is in veneration of the Chinese gods and ancestors with the majority of this being done by the Masong ม้าทรง  

These individuals, it is said, are used as vehicle for the gods/spirits during the week. The Masong behave as if in a trance-like state with rolling eyes and erratic movements. After undergoing piercing by all manner of objects including swords, spikes, banners, petrol pumps, machine guns and anything else you can imagine, they walk the streets with their minders, clad in white, around the streets giving blessings to bystanders. This is quite the spectacle when combined with the rhythmic beats of drums and temple bells. 

So, anyway, how does this atavistic freak out relate to investing (I'm having to think hard myself here) Well, in a way it does.

Wish thinking

People taking part in the strange ceremonies of the Vegetarian Festival believe their luck will improve as a direct result. Personally, I've always has an issue with luck being the prize of doing this ritual or singing that song. 

How can you be so sure? 

Questions:

How many people make investment decisions based on advise from a fortune teller or some other 'expert'?

How many believe it's just bad luck when their investments  are unsuccessful? 

How many spend hard earned money seeking advice from people claiming to know the unknowable?

As a wise man once said. "extraordinary claims require extraordinary evidence."

Is this not the case?

--

It's important we don't think of investment as a game of luck. Sure, there are elements of luck, but over the long term if we read enough and exercise patience, fortitude and courage we will succeed whether the gods are smiling down on us or not.

Enjoy your day folks.

x

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Singapore Dividends for Financial Freedom - Ranting Under the Stars

Morning folks. Here we are. Another Sunday morning and another blog post from Singapore Dividend Collector. Strap yourself in people.

I would like to start this post with a few thoughts on what has been going on in the markets over the past week.

We've all read about the the nose dive in the US with the major indices loosing more than 3% in a single session. Household names such as Apple, Microsoft, Nike and Amazon felt the heat losing more than 4% of their value. Investors have been hit in Singapore, too, with some in the blogging community freaking out and talking about running to the hills. Aghhhhhhhhhhhhhhhhhhhhhhhh!

What I find interesting is how quickly the tone of writing changes once market turbulence kicks in. For a long time, people have been glowing, showing their portfolios online for all to admire. Like kids in the playground presenting their football cards, these bloggers fizz with excitement when given a message of encouragement from a random in blogosphere.

"You're so close to FIRE!!!"

(By the way, next person to say "FIRE" gets a punch in the neck. I'll be blogging oh so soon on this fucking annoying term)

However, as the last week has shown, the stock market occasionally will rabbit punch you in the kidneys.

"Oh, have you seen my new Hong Kong growth portfolio?"

"No, I haven't."

"You just have to see this; I swear micro caps are so the way to go moving forward." 

"Really? why's that?"

"Well, like, I read this book, yeah. And it said that the only real way to get a ten bagger is to scour international markets for this little companies called micro caps, yeah. Are you with me?"

"Yes, I'm with you."

*The following day*

"Shit, help, my micro port is down...badly. I'm selling up. This is not for me. Big time."

Anyway, the fact is that we haven't had a decent, balls to the wall, blood out the nose market collapse for a long time now, and it's on the cards. Make no bones about it: something big, grotesque and vulgar lucks on the horizon, and things are going to get messy.

For me this is cool. I'm happy to let the markets do their thing while I nibble at beaten down stocks from time to time. History has shown us there's little to fear in the long run. In fact, as Business Insider wrote ' There's almost no chance young investors will lose money over 40 years.' Thus, it's important for people during these times of volatility to remember the long term game (if that's the game you play, of course)

I play the long game in investing and sleep at night as a result. A colleague, who will remain nameless, buzzed around out workplace earlier in the year, gesticulating like a street drinker on acid.

He felt he found the key to life (like so many by the way) in the Crypto rally.

"Bit coin is the way forward. Followed closely by Litecoin. Have you read about Litecoin? It's the future according to my research."

Hearing this, I breathed deeply and shuffled somewhat uneasily in my office chair, waves of cynicism warming my veins.

"Your research? Tell me about that, if you will."

He ran his fingers through his hair and chomped quickly and awkwardly on some gum. His mouth moved up and down almost as if controlled by some hidden, malevolent force."

I saw this and it alarmed me. I'd seen this type of chewing before by people on MDMA and Cocaine.

"Are you OK?" I asked him. "You don't look OK. Have you been sleeping?"

He sighed deep and long and chewed on his right thumb nail.

"I haven't really been sleeping. No time really. I feel this run in the Crypto market is my big chance. I believe this is a once in a generation opportunity, and I will not miss my chance."

The dark rings under his eyes and flabby facial expression told me a different story.

"What do you mean your chance?" I replied.

"Can you not see what is going on here? This is the big one. The big chance. All we have to do is study this stuff and invest hard. The markets will take care of the rest."

I saw in his eyes a strained expression. One full of painful, stretched optimism. Eyes reddened by too many sleepless nights. 

I'm sure you will agree this is not a wise road to traverse. And the same goes for freaking out when the market has a wobble. Don't panic; don't sit up all night watching endless videos about the history of stock market crashes; don't listen to Doomsday pundits predicting Armageddon for your portfolio. Screw all of that 100 times over!

What you need to do is the following: make sure you are confident in the underlying businesses you own. Do they have decent management? Do they make money? Are you confident they will be around in the future?

If the answer to these questions is yes then chill out, work hard and then invest back into your portfolio when pessimism is high. Don't get caught up in the noise. Relax, for life is for living, not gnawing at your lunulas like some crazed psychopath.

Please be rational and learn from history. All is well and will continue to be so. Crack open a beer and smile.

Singapore Dividends for Financial Freedom - What % of REITS/Trusts should I have?

Good morning party people I trust you are smiling on this overcast Sunday morning.

For the first time this rainy season, little bits of bright blue sky are beginning to assert themselves overhead. With only a month or so left of the rains, it's time to visualize long evenings spent reading on the beach with a cool wind ruffling the green palm leaves. Ahead, past the demerara sugar sands, the ocean, flat and twinkling, relaxes and reflects on the sanctity of life. Psssssssssit! I crack open another beer and toss the lid aside. As the horizon begins to glow crimson, blue and orange, I reflect on how lucky I am to be here; how lucky I am to be alive. In world full of atrocity, pain and existential paranoia, I sit here, wide-eyed, smiling, contemplating the beauty of nature and my place within it.

Living in the topics is more than I could have ever dreamed of as a boy, and it's where I feel home. Like most, I don't want to work for ever. This is not because I hate what I do - far from it. It's just that I know I won't always be able to work at such a frantic pace: days blurring into weeks into months like some sort of purgatorial punishment; missed meals and irrational moods. The pursuit of money will one day take a back seat in my consciousness, and so it's vital to have a hefty income paying portfolio as back up. This will provide the means in the future to lounge around, sipping booze and reading books (two of my favorite things)

I realized this is 2015 - rather late I may add- thanks to a few gentle nudges by wife. She noticed that we worked all the time and our money sat dormant in the bank. At the time, I had a mindset that said the following:

'Well, at least the money is safe.'

'I know nothing about the stock market.'

'I didn't study finance.'

'Investing is for rich people.'

'The stock market is for greed-heads.'

If any of you have ever had such thoughts, I'm sure you can empathize with me. Honestly, I thought with my extensive background in reading classic literature and living in far flung places in the world, I had life all worked out. But, I was wrong.

So, what was the turning point? How did I make the shift from an artsy reader of literature to a income investor?

Socrates said 'True knowledge exists in knowing you know nothing.'

I heard this quote on the 'In Our Time' show hosted by Melvin Brag on BBC Radio 4, and it got be thinking.

My  wife continued to urge me to read the financial section of the newspaper - at which I grimaced. All those ratios and numbers; all those greedy corporate assholes; all those anachronisms! Screw all that...

However, Socrate's quote bounced around my head like a pinball, and little by little my ego retracted.

'Perhaps I know less than I think.'

This phrase invaded my consciousness like the evening does the day and I began my reading.

I will talk in later blogs about books, blogs, blog and podcasts that have influenced me over the past 4 years. For now, I must talk about my portfolio's REIT allocation.

Presently, I have the following holdings. I've divided them into sectors with % of total portfolio.

Keppel DC REIT	7.00%	REIT data center (alternative)	11%
AimAMP Cap REIT	3.00%	REIT industrial	17%
Ascendas REIT	14.00%	REIT industrial
AscottREIT	2.00%	REIT property	19%
Fraser Com Trust	14.00%	REIT property
Capita Com Trust	3.00%	REIT Property
First REIT	9.00%	REIT healthcare	9%
CapitaMall Trust	4.00%	REIT retail	4%
Global Investments	1.00%	Trust investment	1%
Acenndas H Trust	5.00%	REIT hospitality	9%
Accordia Golf Trust	4.00%	Trust golf courses hospitality

REITS and Trusts Total = 66%

Some might say this is rather aggressive, but I don't think so.

The rest of my portfolio is made up of blue chip divided payers, all of which I plan to hold for as long as possible.

SingTel	6.00%	Stock telecommunications	8%
Starhub	2.00%	Stock telecommunications
SATS	1.00%	Stock Airport management and services	1%
Keppel Corp	1.00%	Stock oil etc. and property	1%
DBS	0.10%	Stock bank	0.35%
UOB	0.25%	Stock bank
SGX	3.00%	Stock stock market etc.	3%
Singpost	2.00%	Stock post and logistics	2%
Kingsmen Creative	1.40%	Stock marketing events and displays	1%
Sheng Siong	5.00%	Stock supermarkets	17%
Thaibev	12.00%	Stock food and bev
Nikko AM STI ETF	1%	STI ETF	1%

Blue Chip Dividend Payers Total = 34%

(I'm aware a couple of the shares in there are not blue chips)

As you can image, this portfolio is generating a large amount of cash all of which is pumped back in. between Jan and Aug 2018 passive income stood at $28,000 (Singaporean) which is not to be sniffed at. Give it ten years and this has the potential to be a worthwhile project.

The questions is though, do you think the REIT and Trust component is too meaty at 66%?

I'm happy with the risk, but is this just because I ignore the realities of a rising interest rate environment, or is it that I understand the likelihood of all being fine in two decades time? 

I'm not sure I know the answer myself.

Singapore Dividends for Financial Freedom - Accordia Golf Trust (BUY)

Welcome to you all. This blog is a collection of thoughts loosely related to my investing adventure that began in 2015. If you fancy you can check out older posts in which I tell some of my back story and reveal my holdings.

Feel free to ask any questions you might have by leaving a message. As you will notice within microseconds of reading my posts, writing is a means for me to stay level in a busy world. Don't expect to read my posts and be enlightened...I hope they provide a little light-hearted peep into my investing world and show others that even a scatterbrain, procrastinating Mr. Average can push toward financial freedom with saving and aggressive stock investing.

Anyway, in with the focus of this post and out with the waffle.

Today, is my birthday (cue HBD song) so instead of going out and spending a ton of cash on fancy food and wine I decided to pick up a further 14,500 shares of Accordia Golf Trust at 0.56. 

This counter has taken a battering of the past year and at yesterday's price of 0.56 looked to good to refuse.

Thus, with this birthday purchase, my position has grown to 58,500 shares.

It looks decent value to me:

These kinds of ratios, combined with its sweet 7.13% yield make the company seem dam tasty, so I just couldn't resist.

Sure, the company has debt issues to deal with, but I still think this is a great long term income play.

If you disagree, please tell me all about it.