Wednesday 16 September 2020

Obsession with Money and Things.



Seneca's quote on happiness resonates deeply with me:

True happiness is…to enjoy the present, without anxious dependence upon the future. 

Thus...

Why are so many people obsessed with money and materialism? 

This is a question that reverberates around my skull for large portions of the day. And the more I think about it, the more it makes sense.

We've all heard stories about super-rich people involved in corruption, being sent to jail or being crippled with mountain of debt. What is it that drives so many people to such extremes? What is it that they are seeking to discover by accumulating more wealth? Do they even know themselves?

In physiological terms "minds obsessively fixate on the idea of making money, without considering the consequences of their obsession." 

This definition reads almost like a definition of addition: "A person with an addiction uses a substance, or engages in a behavior, for which the rewarding effects provide a compelling incentive to repeat the activity, despite detrimental consequences." (Psychology Today)

Now, please don't misinterpret my thoughts here. I'm not saying that making money is a bad thing in itself. We all need a certain amount if money to fulfill our basic needs of having food, shelter and a few treats every month. But where do you draw the line? Once our basic needs have been met we are usually happy, but how much happier can someone be if they live in a penthouse surrounded by fawning servants? Honestly, I doubt they would be any happier at all.

With increased levels of wealth come more responsibilities such as mortgages, staff, cars, stock market crashes etc. which make us more anxious and hyped up than those with less material possessions. So, why do people constantly push for more money and things when we all know it won't make us any happier than just having enough to meet our basic needs?

As I fast approach forty and have an 8 month year old baby, this question has been bothering me. 

For the past 11 years I have - with some help - built up a successful company with a small, loyal workforce. We are well respected for the service we provide and help many people. However, anyone who owns their own business knows full well the stresses that come with the territory. As I slip over the imaginary horizon of young adult into a fully fledged middle aged fella, my attitude towards work/live balance is shifting rapidly. 

In the early years, for example, it was head down, struggle and get shit done. Now though, I feel my concentration being pulled in other directions: family, exercise, meditation and poetry. Honestly, I can't see me being motivated to work the same way I have done for another 10 years. At a push, I could stretch to 5 years, for after that I would be more than financially comfortable and able to focus more on the present moment with my family and meditation practice.  

I know many people buzz with excitement of making enough for the boat or the vacation penthouse, but, as nice as they are, material trappings, or the thought of them, do little for me. 

Flashy people of the world go forth and do your thing. Buy more gold. Buy more property. Upgrade your BMW to the newest model if this is what makes you happy. For me... I just don't feel the need. I would rather explore the inner regions of my mind and, hopefully, become a more grounded and selfless individual. 







Tuesday 1 September 2020

What are the lemons, the keepers and the stars in your Singapore portfolio?

 


Right, so here we all are into another new month. Can you believe it's September 2020 already? It's hard to fathom, isn't? Well, take a deep breath folks, it's true. 

What a year it has been so far for investors with some counters blasting into orbit and others sinking down to the dark depths. Let's have a look at this and decide whether I should cut my losses on a few bad performers (lemons) or hold on for dear life and pray for some divine intervention.


Here's my portfolio 2-9-20 which I have been building since 2005.


SATS
Keppel Corp
Singtel
Keppel DC REIT
ThaiBev
AimAMP Cap REIT
CapitaMall Trust
Capitalcom trust
Ascenads REIT
Nikko AM ETF
SGX
Singpost
Starhub
UOB
Kingsman Creative
Sheng Siong
DBS
Accordia Golf Trust
AscottREIT
Capital land Commercial Trust
First Reit
Global Investments
Frazer Comm Trust
Wilmar International
Ascendas-h-trust
ICBC (HK)
Centurion

As you can see I invest primarily for dividends which I reinvest back in to the portfolio 3/4 times per year.

The Corona pandemic has not been good to us investors, and my portfolio has suffered. Thus, I will divide it into three parts:

1. Lemons (stocks I might dump)
2. Keepers (stocks performing understandably in the current circumstances, but I like it's dividend/future potential)
3. Stars (stocks shining brightly in the sky)

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1. The Lemons

Singpost

I bought this back in 2016 when finding stock picks was like pissing in the dark. I hadn't a clue where to aim. My thinking at the time was that Singpost would do well from the emerge online retail markets and than it paid an ok dividend. I saw it as a long term, safe, dividend play. Well, the dividend is still there - currently 3.86% - but the stock has been hammered - currently trading at 0.7. It was 1.97 in Jan 2015. That quite a drop, and with the divided so low, a terrible investment. What the future hold for this stock doesn't look promising.

Starhub

I bought this stock again for the long term dividend opportunities, not really digging any deeper. As we all know, its fall from grace has been rather dramatic and its dividend unsustainable. Dam you Starhub!

Kingsman

When I bought this back in 2016, I was attracted by its decent balance sheet and dividends. That said, the last few years have not been kind. Presently, it dividend looks a bit silly at over 11%. How much longer can this small cap last in world with restricted travel and cancelled conferences?

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2. The Keepers

SATS/Keppel Corp/ThaiBEV/AIMS REIT/CapitalMall/CapitalCOM/Ascendas/NIKKO ETF/UOB/DBS/Accott Trust/Capitalland Comm Trust/First REIT/Global Investments/Frazer Com Trust/ Ascendas H Trust/ICBC

A few notes on this lot. 

SATS has been shafted by Corona for sure, but I'm staying vested for the long term. People will travel when they can.

Keppel has been in the news as 
Temasek bottled the deal at the last minute. I still think this beast will bounce back and is still an OK long term hold. 
Aims REIT has been going sideways, but pays a solid divided and has good management.
CapitalMall will be grand long term as its malls are great locations. And let's face it, what else is there to do in Singapore?
Capital Com will be fine long term.
Ascendas has not been hot too badly and is a quality company. Long term hold.
NIKKO EFL was a silly investment for me after reading a Boogle book. Singapore continues to go sideways without innovative tech companies.
UOB/DBS/ICBC will be fine in the long term and pay good dividends.
Ascott has great locations and will be fine as the super rich need somewhere to stay in big cities.
Global Investments pays a good dividend and is steady enough. No debt as well. Hold long term.
Frazer Comm trust is solid, pays a good dividend and is backed by a strong sponsor.
Ascendas H Trust is fine in the long run.
ICBC is getting hammered at the moment, but will continue to grow as China does.
Centurian should cash in on the new government rules for Corona housing for workers and students. They are the main player and have a dam fine management team. Long term hold with a tasty dividend.

Note: I am holding on to FIRST REIT as it's down too much to let go at this stage. The sponsor is a joke and I don't have high hopes, but let's call this a white knuckle hold. Perhaps they will prove everyone wrong.

3. Stars

Keppel DC

What can I say...? Amazing

Wilmar

On fire and with investments in the company in place, this looks set to continue long into the future. They should raise the dividend in the future as well.

Sheng Siong

Thank you Corona...Thank you so much. People gotta eat etc etc.

Accodia Golf Trust

With the big meeting on the 16th Sept and the new deal, it looks like the deal will go though. This will be a big payout for us investors. 


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OK, so that's about it. I could waffle on more but I won't. Let me know your thoughts below if you have an opinion.

Have a great day ahead.






January 2021 Portfolio Update