Like many of its peers, CapitaLand share price is volatile because of the cyclical nature of the real estate business. Arising from this, the 5-year beta for this counter is 1.11. In spite of this, I like this counter very much because of its unique business strategies and diversified asset portfolio. Under the founding CEO, Liew Mun Leong, CapitaLand had embarked on a “asset recycling” approach, resulting in the real estate giant deriving majority of its revenue from recurring sources like commercial, retail and serviced residence.
Indeed, CapitaLand investors may think that volatility as undesirable but I view it otherwise. You can make money out of the volatility of CapitaLand share price, provided if you used the right strategies. Looking at the past four year data, there is a clear pattern concerning the movement of CapitaLand share price.
Hit and run with CapitaLand