Track the companies we are "Vezted" in.

Ever wondered how to keep track of all the news regarding our companies?

Hey AK, would like to seek your advice on a question I've been pondering: how do you recommend keeping track of press releases regarding the companies in your portfolio? For instance, dividend info, quarterly earnings report, etc. I currently manually google them now and then, but I find that I tend to miss some of them until it appears on blogs like yours or thefinance.sg. it must get especially tougher to stay on top of things when the portfolio gets larger

thanks in advance! bought your tickets again to your upcoming tea session too

Here is the answer.

Kenji Tay: 
"Its a new service call Vezted that helps readers get all the investing news of the company they invest."

At the first "Evening with AK and friends" of 2016, Rusmin Ang introduced the app to an appreciative audience.

Choose the companies we want to follow and all the news related to those companies will appear in chronological order. 

As investors for income, we will know when our companies are going to pay dividends and how much they are going to pay (including CD and XD dates). 

Go on and try it: here.

This service is FREE. AK likes!

Note: This is not a paid advertorial.

Another special dividend from SPH in future.

One of the larger investments in my non-REIT investment portfolio is in SPH. Actually, SPH is also one of my oldest investments for income. 

Most of my investment in SPH is priced between $2.86 to $3.55 a share with a more recent tranche at $4.20 a share purchased in 2013 when SPH REIT was created. 

Wah! $4.20 a share? Then, lost money already lah. Well, some might look at it that way. 

For me, as an investor for income, assuming a DPS of 21c at the time, I was looking at a 5% dividend yield. With a much stronger balance sheet than SPH REIT, SPH made more sense to me as an investment for only a slightly lower dividend yield.

When SPH REIT was created, SPH declared a special dividend of 18c a share while retaining major ownership of both Paragon and Clementi Mall. In fact, when the counter went XD back then, I added to my investment again at $4.03 a share. (See: The mystery of the extra money in my account.)

Will SPH declare another special dividend when it sells a percentage of its stake in Seletar Mall to SPH REIT? Very likely.

Seletar Mall is 70% owned by SPH and the other 30% is owned by UE. It would probably be cleaner for SPH to take 100% ownership of Seletar Mall before injecting the asset into SPH REIT. 

Of course, only time will tell how things progress but we know for a fact that SPH REIT has been granted right of first refusal on Seletar Mall by SPH.

Visiting Seletar Mall has been on my to do list for a while and, recently, I did. 

I didn't see any vacant shop space and I saw a pretty good crowd on a weekday evening.

I am sure it will be a matter of time before SPH REIT is offered Seletar Mall and, as a SPH shareholder, I am looking forward to that day. 

Patience will surely be rewarded.

Related post:
SPH or SPH REIT?

SPH Reit Management CEO Susan Leng said that SPH has granted a right of first refusal to the Reit, but it is only when the sponsor has decided to divest the property that the Reit can evaluate the opportunity... - Source: AsiaOne

Get dividends while preserving or growing capital.

Hi AK,

I'm new to your blog.

In searching for passive income in the past it was all about property and I never really considered REITS, stocks or funds in general. However I'm slowing accumulating these instruments in recent years to both diversify and bolster my passive income stream.

Too many investment and UT performance reports assume you will keep reinvesting dividends to take advantage of compounding and show wonderful returns. Unfortunately for retirees who cannot afford to roll their dividends back to their investments these numbers do not hold true.

REITS often make cash calls and one can see even the holdings that you've mention like AIMS, LMIR, Cache, Sebana over the past 3 years have lost capital for their investors (assuming you don't reinvest).

If you look at income-focused UT reports purely on a NAV basis most head south. I've seen advice by other investors that say we should look for even higher returns, spend a portion of that and reinvest the rest (eg, get a 10% dividend, spend 8% and reinvest the rest) but that also usually entails taking on much higher risk. Another talks about a hybrid between income and value & growth investing.

So if you're an investor starting out today that needs dividends as income but wants to preserve or grow his capital you're really in a hard place.

How would you advice someone in this situation?

Regards

V

Hi V,

Welcome to ASSI. :)

If we entered at a high price, it is unlikely that we are going to do well. It is not just REITs but the same with everything else, including ETFs.

If we want to invest in REITs, for example, it would be more meaningful to compare within the REITs sector to see which ones have performed better. Why did I choose to stay significantly invested in AIMS AMP Capital Industrial REITs instead of Sabana REIT, for example?

In the current day environment, if we want to preserve our capital (i.e. zero risk and volatility) and yet want to receive income, investment grade bonds or fixed deposits are the best bets. Even so, the risk is not zero.

Grow our capital (and I take this to mean appreciating prices) and yet want some income? I am sure there isn't anything that can provide such certainty although if we have a very long term investment horizon, the chances will improve if we invest in a basket of well run companies that pay dividends.

Best wishes,
AK

Related posts:
1. 3 points in stock investing.

2. Be cautious climbing the S-REITs tree.

How high a dividend yield is worthwhile etc.?

Hi AK!

Reading your recent post on your 1H 2016 income is very inspiring and I hope one day to be able to reach your level. I have a few questions that I hope you can help me with in planing my portfolio

1) How much of your portfolio do you allocate to growth stocks and how much for income stocks?

2) If looking at income stocks aka dividend yield, what % and above do you deem it worth your while to invest in?

3) Whats your average yield for your whole portfolio currently?

Thanks!

Cheers,

Lewis

Remember the pyramid?

Hi Lewis,

Such blog posts are meant to inspire readers to embark on their own journeys towards financial independence. They are not meant to instruct. I am glad you are inspired. ;)

Allocation would depend on a person's motivation. Since I am more interested in income, I allocate more resources towards investing for income, for example.

When investing for income, a higher yield is always attractive but we have to bear in mind that other factors must be considered too. Always ask how is that income generated and also if it is sustainable (for how long)? We might not always get it right but if we ask these two questions, we should get it right most of the time.

One objective of investing for income is to beat inflation. If a stock is able to generate a yield that beats inflation rate or at least equals it, I might consider.

I never tell people what is my portfolio's average yield since I have revealed my annual passive income in absolute dollar value. However, this does not stop some readers from doing some CSI in my blog to get an estimate. ;p

Gambatte!

Best wishes,
AK

Related posts:

1. 1H 2016 income from S-REITs.

2. 1H 2016 income from non-REITs. 

Read only if you want to be closer to heaven.

Heavenly!

Why I suddenly like that say?

I have been a bit more lax when it comes to my diet in recent days and readers who follow me on Facebook know this as I post photos of what I cook on my Facebook wall frequently.

I decided to have something that is extremely unhealthy this morning, so unhealthy that it will elicit screams from the most health conscious of readers.

Ingredients:

A prata.
A slice of cheese.
A scoop of ice cream.
Some nuts.

Step by step instructions:

1. Pan fry prata on both sides.
2. Press warm and crispy prata into a bowl.

3. Apply cheese so that it melts slightly into prata.
4. Wait for a while for this to cool.
5. Add a scoop of ice cream.
6. Add some nuts.

There! Heavenly breakfast!

I call it "Nutty Cream PrAKta". 

Sounds cheesy? 

Aiyoh.

Why do you think there is a slice of cheese?

Duh...

Now I must do the socially responsible thing and apply a health warning label (just like what they have on cigarette packaging):

This will bring you to closer to heaven (in more ways than one). You have been warned!

Bad AK! Bad AK!



Related post:
Being fallible in dieting and investing.

Invitation from the National University of Singapore.

I have been making donations to NUS to help needy students for years, always making sure that my donations go to bursaries but this is the first time I am being invited to the award presentation.

Last year, I donated much more money than in previous years as I donated the proceeds from the many sessions of "Evening with AK and friends" I had last year as well.

"It is our honour to host this dinner to recognise our donors..." Professor Tan Eng Chye.

It is nice to be appreciated but I don't think I will attend the function.

Must go in office attire. 

I am so used to my comfortable shorts, t-shirt and flip flops these days.

Yes, I know.

Bad AK! Bad AK!





If we have money to invest with, we are probably more fortunate than most. 

If we can afford to help the needy, why not?

Can't donate much? 

Well, honestly, I am more impressed with a $20 donation from a regular middle income employee than a $100 donation from a multi-millionaire towkay.





If you would like to make a donation to help needy students too, please read the related post below. 

十年树木，百年树人.

"The best thing a human being can do is to help another human being know more." Charlie Munger

Related post:
Helping needy students.

What did AK tell a reader who aims to save $1.8K a month?

Hi AK shifu,

I have been following your blog for quite some time now (2-3 years)! I am 26 this year and have recently graduated and will be starting work next week. Over the past few years, I have made some money from trading physical goods and right now I have a warchest of about 30k. Once I start work, after accounting for all expenses, I will foresee myself saving around 1.8k a month.

Over the last one year, there have been a couple of corrections and on hindsight, its easy to say "damn! i should have bought some". However, a part of me is telling myself to hold on to the bulk of my money till the market crashes so that I start off at a good position. I think that is important. 

I see myself as a 'lazy' investor, so I am looking to invest in telecomms, various gov linked services and perhaps some reits for passive income which I believe to have upside in the next decade or two (healthcare and retail). Could I get your opinion on how to time my entry with this little money I have?

On a side note, I like what you have been doing with your CPF monies....

Why are cacti able to grow in deserts?

Hi,

You sound like a very down to earth kind of guy when it comes to money making. You are also financially prudent.

As for investing for income, timing the market is difficult. Time in the market is easier unless you are not the disciplined or patient type or if you are using money not meant for investing.

Timing the market is not impossible though. It boils down mostly to luck. Did I know that the GFC was going to happen? No, I could not have predicted it. However, I could prepare for it. That is where our war chest comes in.

We cannot predict but we can prepare.

However, if we keep waiting for another GFC to happen (and quite a few people I know have been waiting for years now), all the while leaving our money in our savings accounts, then, it is a little silly.

While waiting for that big crash to come along which inevitably will happen one day, put some of our money to work with each correction in the stock market.

Do you believe in having some assets that do not move in the same direction as the equities market? My CPF money, I treat it as the investment bond component of my portfolio. A risk free, volatility free component which pays relatively good dividends.

I treat my CPF-OA money as the ultimate war chest only to be used in the event of a huge crash in the stock market as the opportunity cost of using it is quite high. I treat my CPF-SA money as the ultimate in investment bonds with an unbeatable coupon plus the magic of compounding.

I believe you will do well, given time. Gambatte!

Best wishes,
AK

Related post:
Graduating soon?

Why investors for income buy gold and silver?

It has been a long time since I blogged about having some precious metals in our portfolio and some newer readers might not even know I blogged about gold and silver before.


What do gold and silver have to do with investing for income?

Sounds like a scam?






If you think like this, congratulations! 

You will never fall victim to Geneva Gold and their friends!


Gold and silver coins can be mesmerising. 

I know. 

They look so shiny and beautiful. 

They twinkle, reflecting light. 

They look almost like they are winking at you.

I have a friend who fell so much in love with the two silver coins I gave him as birthday presents that he went and bought many more in different designs. 

I gave him bullion coins but he went and bought proof coins with numismatic value (i.e. worthy of collection). 

Oh, dear.


Anyway, why do I have gold and silver in my investment portfolio? 

Are they investments?






Many people say that we should have some precious metals in our portfolios. 

The late Dennis Ng had 7% of his portfolio in gold and silver, if I remember correctly. 


Dennis was concerned with the excessive money printing in the world and this is also why Jim Rogers says we should have some gold.


Fiat currencies are flawed. 

Governments around the world can print as much of their own money as they like. 

The supply is, theoretically, limitless. 






This infinite supply of paper money is unlike gold and silver as their supply is finite. 

Technology has not found a way to synthesize gold or silver.

Basic economics tells us that, over time, excessive money printing leads to immense inflationary pressure.

So, if you think that I buy gold and silver as an insurance against fiat currencies, you are right.






Of course, if we are traders, we can trade some gold and silver for profit. 

However, if we are investors for income, then, buying gold and silver requires an understanding that although precious metals are not income generating assets, they are probably important enough assets to keep some.

I can hear some protesting.


Yes, gold and silver are not income generating assets and it will even probably cost us some money to hold them. 

OK, even if we do not keep our gold and silver in a safe storage facility, we would still incur opportunity cost as the money used to buy gold and silver could have been invested in income producing assets instead.


Ouch. 

Yes, I know the feeling.

Do you believe in insurance? 

In the purest (and correct) form, insurance is an expense. 

It is not free of cost. 

It is not an investment. 

It doesn't generate income.

The elderly understand and believe in gold as they see it as a store of value.

I remember when gold got cheaper in years past, my grandma would go to the goldsmith to buy more gold. 

Not the best way to buy gold as I would have bought gold bullion coins instead but why did she think the way she did and did the thing she did?

I like to think that I understand.







So, should you buy some gold and silver? 

I suppose it will depend on what you believe in.


Related posts:
1. Where to buy gold?
2. Silver bullion coins.
3. Silver savings account.

Watch out as we look for gold in the ASSI jungle.

ASSI has been around since 2009 and will be celebrating our 7th birthday in a few more months. 

Many things happened in the past. 

Some things good. Some things not so good. Some things not good at all.

Some of the good things that happened are the friendly banter with some readers and I am sharing one such conversation here:

• 
  
• 

  12:04pm
  

  Assi AK
  

  
  

  
  

  It is just a place where I talk nonsense.

  
  

  When I am bored, it is an outlet. ;p

  
  

  I guess if one day someone offers to compile my blog posts and pay me a royalty, I can consider. :)
• 12:05pm
  

  R
  

  
  

  
  

  Your 'nonsense' is sensible to lots of people...
• 

  12:05pm
  

  Assi AK
  

  
  

  
  

  My blog is a jungle.... Just like my brain.
• 

  12:06pm
  

  Assi AK
  

  
  
• 12:06pm
  

  R
  

  
  

  
  

  If a people hungry enough, he will dig your jungle as there are many gold in it...
• 

  12:07pm
  

  Assi AK
  

  
  

  
  

  I think have yam, bananas and potatoes.

  
  

  gold cannot eat de

  
  

  lol
• 12:07pm
  

  R
  

  
  

  
  

  I did it few year ago when I chance upon your blog... learn lots of investment tips, IQ, EQ...
• 

  
  

  
  

  :o
• 12:08pm
  

  R
  

  
  

  
  

  Convert gold to $$$
• 

  12:08pm
  

  Assi AK
  

  
  

  
  

  I was wondering why I couldn't find any... You found them first!
• 12:09pm
  

  R
  

  
  

  
  

  Frankly, I only start equity investing ~5 year ago...

  
  

  You're humble lah...
• 

  12:10pm
  

  Assi AK
  

  
  

  
  

  I am full of nonsense lah... Life is too short to take myself too seriously. ;p
• 12:11pm
  

  R
  

  
  

  
  

  I choose and pick some of your nonsense... which make sense to me.

A jungle is full of resources but it could also be a dangerous place.

You are welcome to explore the jungle that is ASSI but tread carefully and be careful in deciding what are the resources you can use.

Related post:
Get the most out of ASSI.