3Q 2018 passive income (non-REITs): WILMAR.

Another business I increased exposure to in 3Q 2018 was Wilmar.

As its share price went under $3.00, I simply had to buy some.

At that price, I believe Wilmar was very undervalued and based simply on NAV per share, it was.





If the constant buying by insiders as the share price declined was anything to go by, I am in good company.

When the soft commodity cycle turns up again and it is just a matter of time when it does, Wilmar will be a major beneficiary.

Apart from this, I am also waiting for the listing of Wilmar's Chinese business in 2019 which would probably help to unlock some of Wilmar's true value which has gone unappreciated by Mr. Market.





Wilmar has become a more valuable company over the years on a per share basis but its share price has languished.

Still growing, it will become even more valuable in future and any further weakness in its share price is an opportunity to accumulate.

I believe that patient shareholders will be well rewarded with higher dividends in time to come when CAPEX finally tapers off.

Then, capital gains would logically follow.

Of course, I don't know when this is going to happen.

However, being paid while I wait makes patience more affordable.

3Q 2018 passive income (non-REITs): RHT.

In 3Q 2018, I also added to my investment in RHT Health Trust at 72c a unit when Mr. Market got the jitters and the unit price plunged.

The reason for a nervous Mr. Market could be due a cautionary note issued by RHT's external auditors on its weak balance sheet.

I received messages from readers and my reply to each and every one was more or less the same.

"The cautionary note really was not saying anything new nor was it earth shattering."

If we sell simply because the share price is declining and we are fearful, that is probably a bad reason.

Warren Buffett said the dumbest reason to buy something is because the price has gone up.

Probably, the dumbest reason to sell something is because the price has gone down.

If we sell because we think that RHT cannot continue as a going concern just because of the cautionary note from the auditors, that is probably a bad reason too.





However, if we sell because we think that RHT could not reasonably be expected to refinance their debt, that is a good reason.

I didn't happen to think that way.

Anyway, peace of mind is priceless.

So, although we should have mental fortitude and the right attitude as investors, we should do what gives us peace of mind.







In late August, RHT announced that sale of its assets to its parent would go on.

After repayment of external borrowings, estimated net consideration per unit would be 82.5c.

Unitholders expected to receive about 76.6c per unit. (See comments section for more on this.)

The proceeds will help to replenish my war chest.

Watch video: 
"Malaysia's IHH Healthcare Wins Fortis Bid At Rs 170 Per Share."






See:
1. Disposal of entire asset portfolio.
2. Results of EGM held on 26 Sep 18.