When it comes to investing, the first few things that come to investors’ mind are stocks or REITs. However, many investors tend to overlook or ignore bonds (fixed income securities) as an asset class.
What exactly are bonds?
Bonds represent debt obligations aka they are a form of borrowing. Bonds can be issued by the government or a company. Let’s say if a company issues a bond, the issuer owes the holders a debt and is obliged to them interest (also known as coupon payment) or to repay the principal at the maturity date. The interest payments are usually payable at fixed intervals – semi-annually, annually and sometimes monthly.
Note that in the event of liquidation (the process of ending a business and distributing its assets to claimants), bondholders will get the first priority in terms of getting paid, followed by unsecured creditors (suppliers, employees, banks and stockholders).
Generally, due to the nature of bonds, bonds are considered less risky than equities like stocks or REITs. That is also why bonds generally entail a lower return in relation to the risks.
Before you start investing in one, you have to familiarise yourself with the list of bonds available in the Singapore market that you can invest in:
This article, Time Weighted Returns Vs Money Weighted Returns was originally posted here. He is a veteran community member on InvestingNote, with username known as ThumbTack Investor.
TIME WEIGHTED RETURNS VS MONEY WEIGHTED RETURNS
I think probably 70% of the people here don’t really calculate their returns.
Certainly not the traders with multiple transactions, cos it is a mammoth task doing so.
The vast majority of the remaining 30% are probably calculating it wrongly (Wrongly, that is, if you are using your ROI and comparing it to active managers)
We’re organizing a private and premier half-day trip to $Centurion(OU8.SI) for investors to see and get a feel of a listed company’s day-to-day operations. This is part of a new initiative that allows investors to get insights directly with listed companies!
Being able to go behind the scenes and understand how the business really functions is a totally different experience. It marks a huge leap forward compared to analyzing a company’s operations and financial numbers on paper.
Moreover, you will be able to gain deeper insights into Centurion’s workers and student accommodation business by touring the grounds, attend a special Corporate Presentation and a Panel Discussion with its key management executives including Chief Executive Officer (CEO) and Chief Investment Officer (CIO).
Get exclusive access to company grounds and gain true insights on how operations are run, all from the bottom up.
This practice is coined by legendary investor Philip Fisher as “scuttlebutt investing”, a strategy he used to become one of the world’s best growth investors.
Date: Sat 8 September 2018 Time: 9:30 AM – 1:00 PM Meeting Point: dwell Student Accomodation @ Selegie
Registration closes on 6th Sept, so register early. …
Moats refers to a business’ ability to maintain its competitive advantages over its competitors in order to protect its long-term profits and market share. It is generally a qualitative term and it is hard to assign a number/ratio to determine a company’s moat.
The Moat Scorecard is a report that measure a business’ moat in terms of strength, durability and trend. In addition, it compares the score with companies in the same industry, and provides an analysis of the company’s fundamentals. These includes balance sheet strength, share dilution and financial strength. There is also a handy guide for price analysis using various methodology, with an share price indicated where value would likely be present. As per Warren Buffett had said, “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” …
We have launched a series of short interviews called #InsightsInterview, to understand how reputable financial experts, bloggers and influencers in the InvestingNote community think as winning investors.
This series is to showcase financial experts, influencers and bloggers on a personal and insightful manner, to get glimpse of their investment journeys and their insights on the market in the near future. Every one of them have different styles of investing, expertise in different types of securities and also have their own story to tell.
This is #InsightsInterview Episode 1, with Terence from TUBinvesting.
T.U.B investing is short for “The Unique Bunch”. His investment methods are heavily influenced by value-investing concepts and fundamental analysis and the stocks he invests in, consist of mainly small to mid caps. That being said, he also invests in blue chips when the timing is right.…
A tariff is basically a tax paid on imports and exports of goods and services.
An imposing tax on an imported product would cause its price to increase, which results in a decrease in demand for imported goods. In relation, the price of local products becomes lower to the consumer.
The US Total Imports vs Dutiable Imports from 1821 to 2016 can be seen below:
The current US deficit as of 2017 is $500 billion. The US imports from China about four times as much as it sells to that country in goods as services, leaving Washington more room than Beijing to tax a greater share of bilateral trade. The U.S. trade deficit with China was $375 billion in 2017. The trade deficit exists because U.S. exports to China were only $130 billion while imports from China were $506 billion. The United States imports consumer electronics, clothing, and machinery from China. A lot of the imports are from U.S. manufacturers that send raw materials to China for low-cost assembly. Once shipped back to the United States, they are considered imports. …
But first, what exactly is a corporate action? And why does it matter?
According to Investopedia,
A corporate action is any activity that brings material change to an organization and impacts its stakeholders, including shareholders, both common and preferred, as well as bondholders.
Photo: Hyflux AGM
Corporate actions includes:
Stock Split and reverse split (consolidation)
Mergers and Acquisitions
Corporate actions are important source of indicators for the retail investors to monitor the company’s direction and effectively, the share price. There are some rules that investors and traders have to take note of, according to Li Guang Sheng (a top tier remisier and veteran community member):
Officers and employees of the Company two weeks before the announcement of the Company’s financial results for the first three quarters and one month prior to the announcement of the full year results (“Black-out Period”). Usually there will be internal memo to notify and remind all Directors, officers and employees of the Company on compliance with the best practices on dealing in securities pursuant to Listing Rule 1207(19)(c), in not dealing with the Company’s securities during the Black-out Period. The Company, its Directors and officers should be aware that the Company should not deal in its own securities (including undertaking any share repurchases) during the Black-out Period. Therefore, the Company would wish to complied with the Listing Rule 1207(19)(c) and not run foul with SGX.
If the players of the company shares belong to insiders, then during this period there may be less buyers and harder for you to run or sell your shares. Also if the company is undergoing share buyback and supporting the share prices through daily share buy back, the price may tank during the 2 weeks of no buying from the company or 4 weeks if it is the full year listing result period. So for those who trade heavy, be prepared to reduce your position 2 weeks prior to quarter result announcement due to less liquidity.
Also take note on listed company share buy back rules,
a) on-market purchases should not exceed 5% above the average closing market prices of the share over the last five market days;
b) details of purchases to be released to the SGX-ST, if it is non-market purchases, by 9am on the next market day, or, if an off-market acquisition, by 9am on the second market day after the close of acceptance.
Watch this quick video of Guang Sheng where he explains why corporate actions are so important:
This latest workshop in our series, is all about helping retail investors focus on key criteria in the stock selection and portfolio allocation process by using a solid checklist.
Serious investing requires the investor to do his homework.
Every piece of homework done needs to follow a structure. Like the great Benjamin Graham and Warren Buffet, great investors always have a plan.
Like the saying goes…”Failing to plan, is planning to fail.”
This is the workshop that teaches you how to plan your portfolio, by first creating the most crucial part of the plan: the checklist.
Whether you’re a totally newbie or an experienced investor, having a solid investing checklist is necessary because it will set the criteria, tone and structure to pick the best stocks and also manage the worse threat faced by investors when it happens – Fear.
In this session, we will share with you how you should build your own portfolio using this 10-step checklist.
This week is the annual Securities Investors’ Association of Singapore (SIAS)’s investment week!
For those who’re not familiar with SIAS, it is a non-profit organisation that acts as “the voice” for minority shareholders and engages with corporations falling short of good Corporate Governance practices. SIAS is also a Charity and an Institution of Public Character (IPC), and the largest organized investor group in Asia. It is run by an elected Management Committee comprising of professionals who are volunteers. It actively promotes Investor Education, Corporate Governance and Transparency and is the advocate for Investor rights in Singapore. SIAS also holds events and workshops to enrich and empower retail investors which many are free.
We had the privilege and honour to be one of the speakers along with Stashaway, who presented on the topic of The Rise of Artificial Intelligence (AI) in Investing, held at Lifelong Learning Institute yesterday. …