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A blast from the past: Singapore blue chips or S-REITs?

Monday, October 29, 2012

I have been blogging for close to three years and looking back, I was a rather prolific blogger. Over the weekend, I read some of my older blog posts and found one which I have almost totally forgotten about.


Those were the days when S-REITs were largely unloved and shunned. Written in the first year of my blog's creation, to anyone who would listen, it was an effort to show that S-REITs could be great investments too.

Readers from my blog's early days might or might not remember this blog post but, I believe, all readers could benefit from the blog post as a reminder for us not to be bigots. It is a reminder to myself as well as I find that I have an increasing propensity to become mired in mental mud as I grow older. Feel the same way?

Then, you might want to read an ASSI forgotten classic:
Building and preserving our wealth: Singapore blue chips or S-REITs?

25 comments:

SnOOpy168 said...

in any case, I still want to thank you for starting and writing the blog "that long ago". Without which, perhaps I will be direction-less with my investment dollar. SREIT and it's regular income steam suits me just fine

AK71 said...

Hi SnOOpy168,

Wow! So, you remember that blog post I published more than 2 years ago? I think you were known as SnOOpy88 back then, weren't you? ;)

I am very happy that our investments in S-REITs have turned out nicely thus far. :)

INVS 2.0 said...

Hi Ak71,

Invest in both, with S-REIT hevier than S-chips.

Looks like I have sold out all of my stocks but now nothing to beat inflation. :(

Going to buy back those solid ones mentioned by me before, but only at a tiny lot each. High prices now? Nah, I am in purely for the dividends and won't sell them anyway.

Only those bought at cheap prices will be sold for profits. High prices to be kept for dividends. Hmm...

AK71 said...

Hi INVS 2.0,

My investments in S-REITs are more substantial compared to blue chips. My investments in S-chips are limited to China Minzhong and Sound Global. I hope my confidence is not misplaced. ;p

I am not really tracking it but I think my portfolio's performance is probably outpacing inflation at least by a bit.

Sell those you bought cheaply and buy back some at higher prices for income? It doesn't quite gel with me.

What I have done is to keep a core position for income and divest the rest for capital gains.

INVS 2.0 said...

Hi Ak71,

Ok, I adjusted abit. Will look into S-chips for now as their prices don't overeact like REITs do. Anyway, I need these S-chips to balance the beta levels of the REITs. :)

Once some of these REITs enter the market correction phase, I will come back again. :D

INVS 2.0 said...

*correction: I was referring to SG Blue Chips all the while, not China S-chips.

AK71 said...

Hi INVS 2.0,

Ah, a different kind of chips. ;)

Sounds like you have a plan. :)

EY said...

Hi AK,

I've just started reading your blog recently. Thanks for sharing so unreservedly! Understand that Saizen REIT is in your basket of stocks. I've just read about Japan's debt situation this morning. Thought it might provide some perspective on the macro environment that might increase the risk factor of Japan REIT.

Next in line after the euro debt crisis: Japan
http://jubakpicks.com/2012/10/29/next-in-line-after-the-euro-debt-crisis-japan/?utm_source=Jubak+Alert&utm_medium=email&utm_campaign=8428c56806-RSS_EMAIL_CAMPAIGN

Cheers,
Endrene

JCK said...

i am getting mighty confused by all zis expert advice here! :)

Simple man: Own Gold and own SREITs.

Own a bit of others for trading..

:)

LCF said...

AK, your perspectives had indeed open the eyes of many investors on having REIT as a defensive income generating instruments in their portfolio. The thing about M-REIT is that it is lacking the zero-withholding tax regulation unlike S-REIT, and I've just interviewed the chairman of MRMA and he admitted that he's been trying so hard over the past few year to lobby the government to lift the withholding tax. You S-REIT investors are such a lucky bunch!

AK71 said...

Hi Endrene,

Welcome to ASSI. :)

I believe that Japan is different from PIIGS and I wrote a piece on Japanese debt more than 2 years ago:

Japanese debt issue and Saizen REIT.

I would agree that Japan has to address its debt issue more rigorously as the foreign component of national debt has steadily grown. Having said that, it is only about 10% of total debt as the high savings rate in Japan allows its government to borrow domestically mostly.

I believe that Japan will try to devalue the JPY and this will have some impact on the income we derive from J-REITs since we will receive income in S$. I have mentioned this a few times before.

So, a bigger margin of safety is required before I would invest in REITs which derive most or all of their income from Japan.

AK71 said...

Hi JCK,

Keep it simple. I like simplicity. Modern life is so complicated. Why make it more complicated? ;p

AK71 said...

Hi LCF,

They also invited scorn and sarcasm from quite a few people. This is life, I guess.

Witholding tax for M-REITs? Tell your readers from Malaysia to invest in S-REITs. Haha.. ;)

SnOOpy168 said...

88 makes me sounds FAT !
So, 168, 一路发.... all the way...

LCF said...

Leading by example yes? Haha...Yea, only if I do myself :) Would not talk the talk if I don't walk the walk.

EY said...

Hi AK,

Thanks for surfacing your older blog post on the Japan debt issue. A balanced perspective and certainly still holds water today. :)

Really marvel at the amount of time and effort you devote to your writings and your patience in replying every comment. Thankiew!

Cheers,
Endrene

AK71 said...

Hi SnOOpy168,

88 sounds fat? Really? I have seen some luxury cars with "8888" license plates. Looked prosperous. ;p

AK71 said...

Hi LCF,

I always put my money where my mouth is. ;)

This blog's birth was due to boredom and curiosity on my part. From then, it just grew on me.

Almost 3 years now and sometimes I do wonder if I all the time I spent blogging is productive. Measured in terms of monetary compensation, definitely not, I guess.

I suppose I am a strange one. :)

AK71 said...

Hi Endrene,

I am glad you think so. I believe in being a pragmatist and not be overly bearish or bullish. Either extremes could create too many regrets or so I have found out (since I was not always a pragmatist). ;)

I believe that if readers bother to take the time and effort to leave comments, it is courtesy that I reciprocate with replies and I have tried to do this in a timely manner. I am happy you appreciate it. :)

opal said...

I try to minimise exposure to Japan assets for a different reason. Not because of the debts, but because of fukushima tragedy.
Nuclear plants on a place with earthquakes, volcanoes and tsunamis - the risks looks a little too high for me. Even if the probability can be low, the consequences of one is disastrous.

AK71 said...

Hi opal,

Surprisingly, Saizen REIT emerged from the triple disasters last year stronger. Lucky. ;)

Well, I always say that if we are uncomfortable with an investment, it is best to avoid. So, I believe you are doing the right thing. :)

Singapore Man Of Leisure said...

AK,

Ah! Sweet vindication ;)

What a difference 3 years make!?

:)

AK71 said...

Hi SMOL,

Vindication... I guess this is what it is. :)

Would you believe me that since becoming a blogger, more effort is required to stay focused? Well, it is taking the good with the bad.

There were people who gave advice with good intentions as well as people who poured scorn and sarcasm. So, I would be less than honest if I say I did not waver.

More effort it took to stay the course but stayed the course I did (mostly). ;p

Thanks for cheering me on. :)

Kim said...

Hi AK
Yes stay on the course.
We really appreciate your selfless sharing.
你是独一无二的! Yes!

AK71 said...

Hi Kim,

Early morning pep talk for me. Puts a smile on my face. Thank you. :)

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