Author: Financial Horse

3 Quick Thoughts on Starhub’s massive dividend cut

As most readers are probably aware, StarHub recently announced that it is slashing its dividends for 2019. Starhub is switching from a fixed dividend (4  cents a quarter, translating to a 9% ttm yield) to a variable dividend policy, where it will distribute at least 80% of net profit each year. 1. Why did it take so long? The first thought I had when I heard the news, was “What took so long?” Literally everybody in the industry knew that Starhub’s dividend was unsustainable, so the fact that it took them until now to cut it was slightly puzzling,...

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Top Reads this Week (17 Feb)

Rounding up the top reads from around the web, as shared by fellow investors or myself in the Financial Horse Facebook Group. Taking stock of where REITs are currently (Investment Moats) Interesting take on REIT valuations. If right, it would mean that REITs are not overvalued simply because longer term yields have come down by so much the past month. The Incredible Shrinking Singapore Stock Market (Bloomberg) There’s a lot of truth in this article, but at the same time it’s a bit too pessimistic. Still a really interesting read though! Fund Managers’ Current Asset Allocation – February (Fat Pitch)...

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Top 5 Singapore Stocks to buy (2019 edition)

There’s an interesting exercise that fund managers like to run. And it goes like this. Imagine that you’re a fund manager and you just raised S$100 million for a new fund. Because your fund is brand new, you own absolutely no stocks at all. This means that over the course of the next 3 to 6 months, you need to deploy most of your newly raised capital into the market. What stocks do you buy? It’s an interesting exercise because it forces you to set aside all your preconceived notions about where stocks were 1 year ago, where they...

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Top Reads this week (10 February)

Rounding up the top reads from around the web, as shared by fellow investors or myself in the Financial Horse Facebook Group. Here’s wishing all readers a great and prosperous Chinese New Year! 🙂 Even God Couldn’t Beat Dollar Cost Averaging (Of Dollars and Data) On market timing vs buy and hold Banks Part I: Capital Adequacy (Reality Inversion) Nice introduction to the topic of capital adequacy for banks. Pricing Power (pt 2) Intellectual Property (Epsilon Theory) “No one has loyalty to a robo-advisor. There is no relationship here, beyond whatever halo effect is generated by the brand label on...

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[Ask FH] How to build a balanced stock portfolio for Singaporeans – Part IV

[Ask FH] is an ongoing initiative to respond to readers’ queries on portfolio building, investment advice, or anything finance related at all. If you have any burning questions on investing at all, drop me an email at [email protected] with the subject title [Ask FH], and I’ll respond to you personally via an article. Note: I’ve tweaked/omitted some of the information below to protect the privacy of the readers. Accordingly, any resemblance with a person you know is purely coincidental. Please note that this article should not be construed as formal investment advice. If you are uncertain as to the...

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Top Reads this Week (3 Feb)

Rounding up the top reads from around the web, as shared by fellow investors or myself in the Financial Horse Facebook Group. Totally illogical to suggest CPF payout term of 28 years where there is no one to receive balance payout (The Online Citizen) Following up on this week’s article on CPF, here’s another story that illustrates some potential issues with CPF. The Single Greatest Error (The Irrelevant Investor) You can get everything about a stock right, but if you get the price wrong, you’ll still lose money. Investors, we need to talk about your cash (MorningStar) Pretty good...

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Time to sell Mapletree Commercial Trust and all your REITs after the recent runup?

Okay, clickbaity title aside, this was a real problem that I encountered in January 2019. One of the main trends I highlighted in the Q1 2019 Financial Horse Outlook (you can get it for 2 bucks a month and help support this site ;)) was the crazy run-up in REIT prices. Indeed this risk rally continued through much of January, to the point where REIT prices are looking quite richly valued. It’s always hard to know when to sell – there’s always a fear it may go up further after you sell it, so I wanted to pen this...

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Top Reads this Week (27 Jan)

Commentary: Who’s buying private property after last year’s cooling measures? (Channel News Asia) Interesting take on why property is, and will continue to remain strong after the cooling measures. Best Way to Short China? (The Macro Tourist) How to trade the China slowdown, without shorting the yuan-usd. It may not necessarily work, but the thought process is always interesting. 10 Charts to Watch in 2019 (Top Down Charts) Bunch of really great charts to take note of in 2019. Fickle Fortune (Of Dollars and Data) We are all lucky in our own ways. It’s how we use that luck...

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Complete guide to CPF, CPF Life, and CPF Investment Strategies

Source: Business Times Unless you’ve been living under a rock the past month, you’ve probably heard about the whole CPF Life saga. Long story short, CPF made some changes to CPF Life and a lot of people started getting really upset. I’ve always wanted to do an article to share my thoughts on the use of CPF as an investment tool, so I felt this was an opportune time. What is CPF? The basics of CPF should be relatively familiar to everyone. Seedly has a short guide that was quite well done, and I’ve extracted the key portions below....

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Top Reads this Week (20 Jan)

On the perils of dividend investing… Dividend Investing is Really Dumb (Fat Tailed and Happy) Always sad to see a fellow blogger go, but I can understand why he did it. Lots of good insights and sharing in his final post. An interview with Mr 15HWW (My 15 Hour Work Week) A fitting tribute for a great man. RIP Jack Bogle. What I learned from Jack Bogle (A Wealth of Common Sense) Shared by a reader: Singtel Analysis – Walkthrough of all businesses of Singtel Shared by a reader: Parkway Life REIT using Dividend Discount Model (The Ancient Babylonians)...

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Review of AXA Wealth Treasure – And some thoughts on Investment Linked Policies

I received a really interesting question over Christmas (names and details amended for privacy reasons): Dear FH,  Firstly, a Merry Christmas and Happy New Year to you and your family. Thank you for your wonderful posts and selfless sharing. The question I have for you today is regarding ILPs or more specifically, AXA Wealth Treasure. The 2 main selling points are as follows: 100% startup bonus. Access to accredited investors funds which was explained to me as funds with generally better performance. https://markets.ft.com/data/funds/tearsheet/performance?s=LU0372178672:USD https://markets.ft.com/data/funds/tearsheet/performance?s=LU0690374615:EUR What is your view on such an investment plan? Seeing that the returns are quite...

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5 quick thoughts on CapitaLand’s S$11.3 billion acquisition of Ascendas-Singbridge

It’s funny how life turns out. Just last week I added CapitaLand Limited onto the FH Stock Watch, because I thought it was starting to look interesting as a long term investment. And today, CapitaLand announced that they would be buying over Ascendas-Singbridge from Temasek, in what is probably going to be the largest Singapore M&A deal this year. Basics: Who is buying who? There’s a lot of misinformation going around, so I’m just going to summarise quickly what’s happening (the full announcement and slides are...

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[Ask FH] Building a balanced investment portfolio for Singaporeans

Source: India Inc Taking the opportunity to respond to reader’s queries on portfolio building, investment advice, or anything finance related at all. I know I’ve been a bit slow on this one (some questions are from a month or two back), so my sincere apologies for that. As always, if you have any burning questions on investing at all, drop me an email at [email protected] with the subject title [Ask FH], and I’ll respond to you personally via an article. Note: I’ve tweaked/omitted some of the information below to protect the privacy of the readers. Accordingly, any resemblance with a person...

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Top Reads this Week (13 Jan)

Rounding up the top finance reads from around the web this week. If you enjoyed this, do also check out Financial Chickens, a new initiative to compile the top daily reads from the sources that I personally follow. How I Grow My CPF Today for my future retirement (Heartland Boy) I’m not a fan of topping up CPF SA, but it can definitely be a decent strategy for certain types of investors. Shared by a reader: Analysis of Ascendas REIT and Mapletree Industrial Trust (Frugal Youth Invest) Shared by a reader: Mapletree Industrial Trust collaborates with Equinix to expand data...

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Interview with StashAway’s CEO: What to do if your StashAway portfolio is losing money

  Full Disclosure: This is not a sponsored post. The recent December correction was a really rough one for US markets, and a number of readers have reached out to me with concerns over StashAway. I decided to speak to Michele (StashAway CEO) to see if he was able to share his thoughts, and he very kindly agreed to do an interview. I’d originally planned to add my thoughts in at the end of this article, but after reading the responses I felt he did a truly fantastic job with the responses so I won’t spoil it with my...

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