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Thursday, August 11, 2016

Should I buy a higher price or lower price stock?

Thanks, AK.

I was considering between singtel and singpost but decided to go for singpost cause I can buy more lots.
 
Singtel price is 3x of singpost. I was comparing buying 10 lots each. Hence singpost appeals to me more.
 
Any comments?
 
Regards,
D



Hi D,

Price is what you pay and value is what you get.

A 10c stock could be costlier than a $1 stock. ;)

I blogged about why QAF was cheaper at a higher price before, for example.

Use related posts below as food for thought.

Best wishes,
AK


Related posts:
1.
$1.14 a share cheaper than 94c a share?
2. 1H 2016 income from non-REITs. (Added QAF again.)

6 comments:

  1. Hi D and AK,

    Buying Singtel means indirectly owning Singpost too as Singtel is the largest shareholder of Singpost. :D

    ReplyDelete
  2. Hi Kevin,

    Thanks for this.

    Hi D,

    Kevin dropped a pretty big hint here. ;p

    ReplyDelete
  3. Singtel is trading almost at historical high where yield is being compressed.

    If dividend yield is a consideration for your reader, i wonder why he would want to enter where current yield of singtel (4.1%) is almost the same as risk free rate (CPF SA).

    Earlier of the year, a chance to enter at $3.50 did appear, giving a yield of 5% which is reasonable and capital gain of 20%.

    Consider the value one wanted to pay, even for good company like singtel

    ReplyDelete
  4. I don't think this person is experienced enough to invest in stocks. perhaps STI ETF is a better fit

    ReplyDelete
  5. Hi Solace and Victor,

    Thanks for the comments. Indeed, my reply to the reader is not to provide affirmation or otherwise. It is to get him thinking and hopefully set him on the right track. ;)

    ReplyDelete