Showing posts with label random musing. Show all posts
Showing posts with label random musing. Show all posts

Monday, September 30, 2019

Musing - Lowering yield on income stocks?

Recently I came across these terms reading this article by STE's Stocks Investing Journey.

As someone who is most comfortable with income investing, it struck a chord with me. And when someone thinks of income investing, S-REITs naturally comes to mind.

At the present I feel the reputable S-REITs in general are too richly valued for my liking. Even if I were to have the extra resources to put into the market, I simply cannot see myself wanting to add positions at this price barring exceptional circumstances.

(And this is also why Lendlease Global REIT IPO-ed at such a timely period - I hope I manage to jip a tiny bit. Looking forward to the IPO ballot.)



It has never occurred to me what I will do if these stocks being more richly valued and hence compressed yield of 2-3% becomes the new norm in Singapore market, nor do I have much ideas how to properly tackle such a scenario moving forward.

(AFAIK 2-3% with continual growth in dividend payout is common for investment in US Market - correct me if I'm wrong).

If the conventional way of determining asset value based on fundamentals becomes obsolete, then how does one decide a good entry point instead of resigning to Dollar Cost Averaging or looking for alternatives?

It also begs the question in my mind:

Have we been spoilt silly by the yield from selected stocks in Singapore market?

I came to the conclusion that while it's fine to be most comfortable with a specific investment strategy, one must be prepared to be adept at other strategies as well. I still got ways to becoming a good investor.

We must adapt and overcome.

Sunday, April 1, 2018

Random Musing - When a union of two is more than just +100%

When one gets attached to his or her significant other and settles down, it's not merely a union of two person. They love each other, double their joy, share their sorrow, and offer comfort in each others' company. It is also a synergistic link where the couple is able to compliments each other's quantities and bring out the best in themselves.

Just like how when you work in a partnership over a project with another person, where there is opportunity to bounce ideas between each other, and their ideas may just be the missing piece(s) (and vice versa) to a blockbuster of an idea, just as how mixing blue and yellow paint gives you different shades of green.

On a more tangible level, it could be a simple thing, such as pooling up resources to invest in stocks with a lower commission, as opposed to buying twice. It may give you the opportunity to purchase at a better valuation instead of averaging up as well. It could even allow you access to means of generating passive income at an earlier age if even at all.

A union of two person grants the opportunity to prosper together, achieving much bigger targets than if they had not been together, and pursued their own goals separately, and enjoying the fruits of their labour earlier.

A union of two is more than just +100%. A union of two is exponential.