Author: Investment Moats

Shangri-la Asia’s Presentation shows the Impact of Hong Kong Protest and China Slowdown

How do we know whether these political and government policies have an impact on the businesses you invest in? Perhaps a review of a slew of companies will tell you something. That is lots of work. But if you want your money to be safe, you got to do it. If this is not for you, there are always index funds. Shangri-la Asia Limited (Stock code: 69) is a hotel operator listed in the Hong Kong Stock exchange. It is owned by Robert Kuok, His Daughter is the executive chair person. Yesterday, Shangri-la Asia released its interim results. It’s...

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Interactive Brokers setting Up Singapore Offices

There are a bunch of investors who are always searching for a cost effective broker platform. Through these platform they wish to handle the majority of their transactions. I think cost is one aspect but there are other considerations Think in terms of whether the broker will continue to be in business If you have a problem with the platform, or your trade, are they responsive The variety of products they allow you to trade How easy will it be for you to transfer your money in to start and transfer the money out How intuitive is the interface...

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The National Day Rally 2019 Notes (Unfiltered Version)

This used to be a hobby. If you feel like writing then you write. If you feel strongly enough, you write. It hit me especially hard when I was about to watch Dr Stone. “Kyith, could you provide a summary of the National Day Rally for the advisers?” Guess this is life now. So since I already read it, why not provide it here. The version that I wrote internally is more for a different base. This one is more…. Let me give a summary that is closer to the readers. They are ranked in terms of importance. No...

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Singaporeans may achieve Financial Independence. Retire Early not So Much. What the Data Shows.

The department of Singapore statistics published the Household Expenditure Survey 2017/18. The department published the results every 5 years. And so we have the figures to compare against the expenditure figures published in 2012/13. That is the data 5 years ago. There is too much data, and we would probably not be able to finish in one seating. As a researcher of financial independence, I was curious whether the data do show that Singaporean’s will find it challenging to reach their financial independence goal. How to Judge whether You can easily reach Financial Independence? In most cases, if you...

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Journal-ling the reaction when Dow Fell 800 Points

This is a follow up to the last post I did when the volatility of the markets picked up. Not to cause panic but I want to see how different ETF for different asset classes do. 800 points do look like a lot and for a market like this you realize there are not a lot of 3% moves. The 20 year US Treasury Bond ETF always look good in times like this. Very uncorrelated and moving up 2%. Gold Holdings ETFThe Gold Miner Stocks Gold miner stocks is quite insulated. Since they are equities, you do not know...

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Do We Hoard Too Much Money?

What are we saving for? Are we saving for food and expenses? Or are we saving for lifestyle. I was reading this very thought provoking post by Early Retirement SG. Well, he is currently not in Singapore, following his wife to work. So now he is living in Paris. If you follow his posts, you will realize that whatever skill set you picked up on Freegan living, can be applied in Paris as well. So now he has taken food that will probably last for 3 to 4 days. Early Retirement SG reflected on how our insecurity with food...

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Definitive Guide to Dividend Withholding Tax in Stock & Passive Investing

As an investor, you will invest in a stock, a business, a partnership that is based overseas. These stocks, business or partnership are incorporated or domiciled in another country. These stocks, business or partnership may declare dividends, interests or capital payments to you as a shareholder in Singapore. Once the dividends, interest or capital payments exit a specific country there is a withholding tax on these income, dividends, interest and capital payments. There is no running away from withholding tax. I sort of validate this when I have the privilege to meet the subject matter experts that are recommending...

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Innovative Wealth Strategies to Redistribute Nation’s Wealth

Bloomberg has a good article a few months ago on re-thinking wealth. They highlight 3 suggestions that may be explored to re-distribute wealth in a fair manner. These articles may end up behind a paywall so I want to share this over here at Investment Moats. I will add my interpretation as well. Two of them are rather interesting to me. More because of the way they were suggested because one involves retirement withdrawal. The other feels like a conversation on financial independence. So here are the suggestions. Baby Bonds The gap between a median white family and median...

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Wharf REIC (1997) – a Storm coming for Dividend Yielder

Wharf Real Estate Investment Company’s (REIC) interim results was not too bad. Wharf REIC Interim Income Statement I first wrote about Wharf REIC here. If you are not familiar with it, you might want to get a short overview of it through that article. Operating profit showed an improvement over last year. The profit attributable to shareholders was lower due to a reduction in fair value increase of the investment properties. That portion should be OK. We should look upon the recurrent earnings or cash flow aspect of the business. The majority of the revenue for Wharf REIC (1997)...

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Market Volatility is Up. What I am Thinking about Now. Might help you a little.

Trump said something. Then China did something. So what we have is the DOW, S&P 500 and Nasdaq down 3%. But they been falling for a few days. It gets even worse for me considering a large part of my equity holdings is in Hong Kong. And you know what is going on there. This article is taking a look at what goes on in my brain. You might have some takeaway from this. An Eye on the 10 Year US Treasury Honestly, I can be rather myopic on things. Since Manulife US REIT is a rather large holding,...

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Dealing with the Uncertainties in Financial Independence Pursuit

Few things ran through my head currently but I will keep this post on some of the struggles and what I think about these struggles. In the short span of three months, I have had friends dealing with grief and great struggles. B wrote about the sudden turned of events when his dad suddenly came down with ischemic stroke while his dad is overseas. Due to that, he would have to shift his plans for financial independence. You can read about it here and here. My friend Chris also shared a little more about his dad who has to...

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Singapore Savings Bonds SSB September 2019 Issue Yields 1.95% for 10 Year and 1.65% for 1 Year

Here is a higher yielding, safe way to save your money that you have no idea when you will need to use it, or your emergency fund. The September 2019’s SSB bonds yield an interest rate of 1.95%/yr for the next 10 years. You can apply through ATM or Internet Banking via the three banks (UOB,OCBC, DBS) However, if you only hold the SSB bonds for 1 year, with 2 semi-annual payments, your interest rate is 1.65%/yr. $10,000 will grow to $11,962 in 10 years. This bond is backed by the Singapore Government and its available to Singaporeans. A single...

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Family Inc: Measures of Health of Family Wealth

Personal finance books would usually teach us how to tell whether we are in a good or poor financial position. Today, we continue with our Family Inc Series with a look at what Doug McComick recommends as metrics to measure the health of our family wealth. You could use these metrics for a snapshot of how your family is doing. You could incorporate them into your tracking as well. I take particular interest in this chapter to see if there are metrics that we can incorporate into my firm’s financial planning practices. You gotta keep trying to do better....

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Retiring in the Worst 30-year Period

You may be planning for your retirement. And you might be thinking about what kind of risks you should be considering in your planning. The common fear is that in the first 5 years of your retirement, you experience a very large draw down of your portfolio. On Investment Moats, I have highlight the risks of a negative sequence, and the havoc it could do to your retirement. Some friends have asked me: What if you have very good rate of return? Does that mitigate the risk? Well…. Yes and No. Because while sequence of return is a big...

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Family Inc: 8 Weaknesses of Conventional Family Asset Allocation

If you have read some finance books, you would be acquainted with the traditional asset allocation. The traditional asset allocation model typically explains the different kind of assets. They are typically stocks, bonds, cash. The finance books will explain how you should allocate between these three asset classes, when you should allocate them and in what way. We continue with some excerpts from an outstanding personal finance book Family Inc. You can read my introduction to this book in this article. This article is enlightening if you have started investing for a while, perhaps a few years, and are...

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