The fate of my investment in SPH.

"At SPH, we recognise the power of sharing in a world that's more connected than ever, across multiple platforms."

Disruption to the media industry is faster and more frightening than I had expected. Actually, if an IT dinosaur like me can be a blogger, I shouldn't be alarmed by this but I am.




That the disruption has impacted SPH is amply evident with its earnings declining in the last few years. DPS declined by 33% or so in the last 5 years and we will probably see DPS dropping by another cent or two this year.

If the decline is seasonal, there is no reason to fear because some months will do better. If the decline is cyclical, we can always wait for the cycle to turn up if we are patient enough. 

However, if the decline is structural, whether a business can do well again would depend on whether it is able to re-invent itself to stay relevant in the face of a new reality.




The move to diversify its business to reduce reliance on the media industry made sense but although SPH has investments in real estate which provides recurring income, the bulk of its fortunes is still tied to the media industry.

Witnessing its decline is very sobering for me. The world is changing and changing fast. What has not changed is my attachment to SPH. I belong to the old economy and I guess SPH still does.

I have been a shareholder of SPH since before the Global Financial Crisis and taking into consideration the years of dividends received as well as the low prices I paid during the Global Financial Crisis, I doubt I have lost money being invested in SPH. 

Even taking into consideration the highest price I paid when SPH REIT was listed in the middle of 2013, with the dividends paid out since, I doubt I have lost money.




Will I add to my investment in SPH now? 

I am happy enough to hold on to my investment but to add to my investment in SPH, there must be a sign that earnings will improve or at least stop declining.

I can see that SPH is changing but is it in the right direction and is it fast enough?

Of course, if Mr. Market should offer me a price that I cannot refuse, even with SPH's declining earnings, I might buy more, but, for now, I am keeping the status quo.




See update here:
Sizing my investment in SPH.

Impressive passive income but are you lying, AK?

This is not the first time I have received an email like this but it has been quite a while. 

This one is actually pretty friendly:

"I know about your blog from a forum... Very impressive passive income... there are people who say you are just making things up... you did not show your CDP statement... can you show?"

My short answer is "no".

Now, my long answer.




Why should I have to prove anything? 

I am not selling some investment courses that charge thousands of dollars per pax, am I?

While we are on that point, how many investment gurus who do sell such courses show people their portfolios in detail, backing each of their claims with audited documentary proof?

Hey, I am just a blogger. 

OK, I am a bit mental. 

So, I talk to myself and probably a bit too much.




People can eavesdrop if they want to. 

I cannot stop them from doing so.

After eavesdropping, they can walk off and say that AK is mental. 

It's OK. 

AK doesn't mind (since AK is supposed to have lost his mind).

Alamak, what are these? 

Can eat or not?

Must throw away many times a year.




Why do they keep sending these things to me? 

Must be mental.

I said many times before that what is more important is my philosophy towards wealth building. 

People who are more concerned with the veracity of my investments and passive income have missed the point big time.

Why don't these people give it a chance and try to create more meaningful passive income for themselves? 

Why do they choose to believe I am lying thereby denying an achievement that could possibly be theirs too?




Do they have to give money to AK until their hearts are broken? 

Do they have to sell their flats to give money to AK? 

Hmmm. Sounds like an idea. 

Maybe, I could day dream a little. 





Yes, I know. 

Bad AK! Bad AK!

I am quite sure that the proof of the pudding is in the eating and not the asking.




The love of money is the root of all evil or so the Church says.

How much money did you donate to AK?

Did you sell your flat to give $20K to AK?





Related posts:
1. What is AK's way of investing?
2. Don't thank AK. Thank yourself.