Singapore Companies of Interest

During this festive season, I took some time to tidy up and re-organise my investing notes. Going into 2011, it is most likely going to be a tale of two halves (just like 2010, again!).

Whatever the case, some investing fundamentals don't change. I like firms with low debt gearing, good cashflow and cash reserves, healthy revenues and preferably consistent dividend payouts.

I have shortlisted for my own use some companies of interest. These may also show up on your radar screen. Again, in the spirit of X'mas, it's purely for sharing and does not constitute any specific recommendation, whatsoever.

Highlighted in blue are those with more consistent dividends (in addition to REITS)

Happy investing in 2011...

Merry Christmas and a Happy New Year.

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Where Do I Put My Money in 2011

Where Do I Put My Money in 2011?

That's the title of the SIAS Research seminar next Saturday 18 December 2010.

For details and registration, pls follow the link.

And you may like to check out CNBC's Predictions 2011 to match against your own 'homework'. At least Goldman is ultra bullish on 2011 with its forecast of 1450 on the S&P 500.

Happy countdown to 2011.

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Singapore Property Prices (up up up!)

Sunday Times featured Ms Wendy Kwek and her property investments. Real estate investing has really captured the hearts and minds of everyone, from the well-to-do to the ones dreaming of big time riches.

Naturally. Which other instrument offers the following characteristics?
1. Purchase with only an upfront deposit and intial payment + stamp fees (of course, this is subject to the fact it's a secured loan with the property as underlying collateral and the debtor with good credit/cashflow for loan instalments).

2. Leverage on rental income to offset interest on principal (after all, subject to location, rental is almost only a question of pricing); thereby reducing cost of investment.

3. Sell off with potential attractive capital gains against invested capital and taxes (some rebuild/repackage the current property to raise its valuation for even better gains).

However, a word of caution. Especially on private residential properties.
We always hear of people lamenting today's high prices but how high is high? Here's a chart on S'pore local house prices in real dollar terms.

URA data. Chart from Economist.

More recent data from URA (property index up to 2010Q3) and NUS Institute of Real Estate Studies indicate we have surpassed the highs of 1996 (though not adjusted for inflation).

At the rate prices of private residential property are rising, surely a bubble is forming? Those already over-stretched, beware.

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Euro Debt Crisis (what's next)

One after another. First Greece. Now Ireland.

This Euro debt crisis is dragging its feet to nowhere. Underlying problems continue to exist. These two Economist articles provide a good reading on the current situation.

1. The crisis in Euro area: no easy exit
2. Breaking up Euro: how to resign from the club

Meantime, enjoy the dance (in the markets) till the music stops.

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The Insurance Discussion

This ST Forum writeup (in my opinion) is apt and timely.

While it is easy to capture the attention of readers by focusing on the issue of term vs whole life insurance, surely the ultimate aim is to raise the financial literacy of the general public and hence make more informed financial decisions (in this particular instance on personal risk management)?

From understanding what is necessary insurance coverage in terms of scope, to discovering the suitable amount of sum assured (some use nominal expense basis; others discount to net PV; there are those who follow benchmarks) and finally to choosing the most suitable plans (factoring in pre-existing medical conditions, underwriting requirements and budget of course!), there are many steps in between.

Which is why choosing a trusted adviser isn't always easy.

Contributor Alvin Choo summed it up best with this para (and I quote)

"It is incontrovertible that term insurance gives the bigger bang for the buck. What is disputable is that it should be bought at the total exclusion of all other forms of life insurance policies.

Instead of contriving a great divide between term and whole-life policies, it would be far more productive and meaningful if efforts were spent on educating the public on the merits of life insurance and the advantage of getting an early head start."

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