TIPS FOR NEW STOCK MARKET INVESTORS:

Investing in the singapore stock market  is one of the fastest ways to grow your wealth when compared to growing wealth in a savings account with small monthly increments. Relying on the advice of friends and family isn’t the best way to get started investing in stocks for beginners because everyone’s financial situation and investing risk limit is different. Relying on investing experts and expert resources can give you some peace of mind when you’re making knowledgeable investment decisions that can potentially grow your money.
The three most important points that are crucial for success in the world of stock investments.

Look stocks as businesses:

Behind every stock is a business. There are more than 700 stocks to invest in the Singapore stock market.we should not handle stocks like pieces of paper to be bought and sold randomly.

Warren Buffett, one of the world’s most renowned investors, once said:
“Buy a stock the way you would buy a house. Understand and like it such that you’d be satisfied to own it in the absence of any market.”

which means that we should know a company inside out very well before investing any money into it. For example, before we buy any electrical devices we would do thorough research on it by checking reviews on the internet, comparing different products and the price, before parting with our cash.  
The same concerns with the businesses. Before we buy any stock, we should research the underlying business thoroughly, such as its financial statements, its competitive advantages, and its management. We also want to ensure that the valuation of the company is not expensive.

Don’t be duped by high dividend yield:

The dividend yield of a company gives you an idea of how much dividends you are getting for the stock price that you are paying. So check the company’s financial position before buying such dividend payers.

For example, if Company X’s dividend per share is S$1 and its stock price is S$10, the dividend yield of Company X is 10% ((S$1/S$10)*100%). However, this dividend yield in itself does not tell us if the dividend is sustainable. Another firm, Company Z, with a dividend yield of 5%, may offer more stable dividends than Company X.
So, never buy any stock based on high dividend yields.

Keep checking your emotions:

This means What is needed from the investor is patience and discipline, without getting fear anyway. When it comes to investing, we should have a long-term view, and invest more in stable businesses whenever the stock market throws an outburst.

From 1993 to 2017, there were a total of 6,411 trading days where some companies have more than doubled (excluding dividends). In that period, there were 870 days when the index lost 1% or more, 242 days with a drop of more than 2%, and 90 days when the daily decline went past 3%. This shows that over the 24-year period, the stock market managed to generate wealth for investors. 

THE POWER OF PARADOX: HOW WE GAIN AND LOOSE INFLUENCE

A paradox is a statement that contains conflicting ideas or that seems contradictory.  In other words, they are propositions that show credible but, in fact, they are illogical. That is because it contains two facts that are opposed to each other and can't exist at the same time. The two things can’t happen at the same time is termed as paradoxical.

The similar situation is arising from the White House’s plan to cut its trade debt by forcing trade tariffs on the rest of the world. Think about what occurs when America buys $100 worth of goods from China. It pays for the purchases in US dollars. If China then buys $100 worth of American goods, then no trade deficit. The latest Singapore Stock Blogs are here.

Meanwhile, it also wants to be the reserve currency of the world. But it also means that China would have nothing in reserve. So, it buys less than $100 worth of goods from America and keeps the balance in US Treasuries or it allows the back-balance to America.

The conclusion is that if America wants to be the world’s reserve currency, which it does, then it must run some sort of a trade deficit with not only China but also with the rest of the world. That is the price it must pay for being the world’s reserve currency.

         The value of the US dollar is likely to be artificially boosted which will make us less competitive in terms of US goods and services and could turn, increase in its trade deficit. Who would want to buy American-made vehicles, when Japanese vehicles are cheaper?

The problem with America’s trade deficit is contrary. It can influence China and other countries to buy more goods to narrow the trade deficit but then the US dollar would no longer be the reserve currency of the world. Thankfully, that is not going to happen. So, America is attached to a problem that even trade tariffs won’t solve. You can go through with Singapore Stock Market News.

Investors Should Decide Which Approach Is Suitable For Them: The active or The passive way.

Whenever there’s a discussion about active or passive investing, it can rather quickly turn into an excited debate because investors and wealth managers serve strongly favor, one strategy over the other. I hope this article can help investors to make a better choice between the pair.

Active Investing:   Active investing refers to an investment strategy that involves ongoing buying and selling activity by the investor. Active investors purchase investments and continuously monitor their activity to exploit profitable conditions. Active investing requires confidence that whoever’s investing the portfolio will know exactly the right time to buy or sell. 

                            Active investing requires a constant monitoring of the market, and research to select stocks. Stock investment. This also means that investors would need to spend a substantial amount of time to keep up with market developments. Active investors can also usually be grouped into three different camps, such as income investing, growth investing, and value investing. 

Here are some advantages and disadvantages of active investing ;

1. Flexibility – Active managers aren't required to follow a specific index. They can buy those "diamond in the rough" stocks they believe they've found.

2. Hedging – Active managers can also hedge their risks using various techniques such as short sales or put options, and they're able to exit specific stocks or sectors when the risks become too big. 

3. Tax management – Even though this strategy could trigger a capital gains tax, advisors can tailor tax management strategies to individual investors, such as by selling investments that are losing money to offset the taxes on the big winners. 

Disadvantages :

1. Very expensive – The average expense ratio at 1.4% for an actively managed equity fund. Very expensive because all that active buying and selling triggers transaction costs, not to mention that you're paying the salaries of the analyst team researching equity picks. 

2. Active risk – Active managers are free to buy any investment they think would bring high returns, which is great when the analysts are right but shocking when they're wrong.

Passive Investing:  Passive investing is an investment strategy that aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum. This a very cost-effective way to invest. The strategy requires a buy-and-hold mentality.   By investing in a passive manner, there’s no requirement to think about the varieties of stocks that go into our portfolios – we can buy the whole market. Share Investment

Investors may want to choose a passive approach because -they may have no time to analyze stocks due to work or family responsibilities, Or they have no interest in learning the necessary steps to invest with an active approach. 

Advantages: 

1. Ultra-low fees – There's nobody picking stocks, so failure is much less expensive.  Passive funds simply follow the index they use as their benchmark.

2. Transparency – It's always clear which assets are in an index fund.

3. Tax efficiency – Their buy-and-hold strategy doesn't typically result in a large capital gains tax for the year.

Disadvantages: 

1. Too limited – Passive funds are limited to a specific index. Thus, investors are locked into those holdings, no matter what happens in the market.

2. Small returns – By definition, passive funds will pretty much never beat the market, even during times of confusion, as their core holdings are locked in to track the market. Sometimes, a passive fund may beat the market by a little, but it will never post the big returns active managers crave unless the market itself booms. 

LONG TERM INVESTING CONCEPT BY WARREN BUFFETT;

I start with Buffett’s well-known saying: “Successful investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time." 

                                                  

Warren Buffett is probably one of the best investors in the world.  One of the key reason for Buffett's incredible return in the stock market is his Patience. He is well-known for holding his stocks for the long-term. In fact, his favorite holding period in stocks is “forever”.  Stock Tips

From 1965 to 2017, annual returns of around 19% for his company’s shareholders was generated by Buffett. If you had invested just $1,000 in his firm, you would be sitting on a cool $8.9 million by 2017.

Yes, Buffett has sold shares often, but it is the thinking behind his quote that matters. If you have a long time horizon when investing, you will focus on the things that matter (hint: stock prices are not one of them) and will not bother with the things that don’t. STOCK INVESTMENT

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For any business to do well, it requires a considerable amount of time. By focusing on the long-term, we are forced to think about the quality and fundamentals of the company we are investing in. If we have an “investing” time frame of just one month, we would only be looking at stock price fluctuations alone, and it turns the damage to our portfolio. The daily fluctuation in stock prices will not do any good for our psychological health as well.

However, if our investing time frame is measured in decades or even generations, we will be forced to think about the things that matter: The long-term prospects of a business; the leaders behind a company; and the value of a business. Singapore Stock Blog

we want to invest in companies that have products or services in the next few years that will not become outdated  – ideally, we want companies with businesses that can succeed. Moreover, when we invest in the long-term, the probability of suffering losses will be much lower. 

SOME EFFECTIVE WAYS THAT MAY HELPS IN RAISING YOUR STOCK RETURNS

People who interested in trading are often drawn to trading because they want freedom and they are interested in multiplying money. 

                        While initially most traders are drawn to trading because of the promise of great monetary gains, most traders come to realize that trading is essentially a balance of risks and rewards. Each trader must decide whether or not a particular trading system or money management system is appropriate for his risk level. Singapore stock market news.

In this article, I want to highlight three simple steps that investors can take to maximize their returns. Stock Tips

1. Find the most cost-effective broker:

when investing you have to more focused on which stocks you wanted to buy rather than choosing the broker that was most cost-effective for your portfolio. sometimes the brokers are not the most cost optimal for us.In foresight, if I had chosen a more cost-effective broker, I could have saved hundreds of dollars each year. Together with the compounding effect of investing, the savings could have added up.

2. Don’t forget that tax can affect your returns:

Singapore investors who invest in Singapore shares have a big advantage over their foreign counterparts. We do not need to pay capital gains tax or even tax on the dividends earned.

However, when we invest in foreign shares, we have to abide by the tax laws pertaining to the countries in which the companies are listed. For example, investors need to pay a 30% tax on their dividends when investing in shares listed in the United States. Tax can have a major impact on our returns.  Ideally, we should try to invest in stocks that we do not need to pay tax for.

3. Save on foreign exchange expenses

When dealing with foreign stocks, investors often overlook the cost of foreign exchange. Banks charge a commission for each transaction we make. To save costs, investors should find the bank that has the best exchange rate. Singapore Stock Blog.

It is also useful to take any foreign currency fluctuations into account when calculating our returns. As a rule of thumb, I try not to invest in shares in a country that has an unstable currency. Even if the stock you have invested in provides good returns, the devaluation of the currency will certainly affect your profits.

Experts Advice: Capital World Ltd one of the Best Stocks in Singapore to Trade

Warren Buffets

According to the secret method or formula, Chong Ser Jing recently ranked all the stocks in the Singapore market by an investing strategy generalized by Joel Greenblatt in his book -"The Little Book That Beats The Market". For 2018 when Ser Jing wanted to find the 30 best stocks in Singapore, with the help of secret method, he found Capital World Ltd (SGX: 1D5)  to be one of them.   Share Investment 

Capital World is a property developer company establishes joint ventures with landowners to minimize its initial capital outlay. It is also known as Terratech Group Limited and also involved with the production and sale of premium-quality marble blocks and slabs, aggregates, and calcium carbonate powder. The executive director and chief executive of Capital World are Siow Chien Fu. Meanwhile, Tan Eng Kiat Dominic is the group’s non-executive chairman.

As Capital World was highly ranked on Greenblatt’s book, Warren Buffett is one of the greatest investors in the world would be interested in the company? we found an answer to this question by six-point acquisition criteria formulated by the Oracle of Omaha to give us some clues. However, more importantly, Buffett’s checklist deep dive into Capital World’s financials can help investors to develop a better understanding of the company. Singapore Stock Blog

With that, let’s turn to Buffett’s acquisition criteria.

1. Pre-tax earnings of at least US$75 million

In 2017, Capital World had pre-tax earnings of RM102.1 million (around US$25.5 million), which is much lower than the first criterion. Retail investors looking into Singapore-listed companies. Buffett has this criterion in place because his acquisition targets need to be of a certain size to move the needle for Berkshire Hathaway to control US$500 billion.

2. Demonstrated the consistent earning power

Buffett to determine the second criterion helps if a company has a stable or growing business. Companies that have a history of steady and growing earnings tend to have competitive advantages that help their businesses grow over time.

3. Good returns on equity (ROE) while no debt

Generally, a company that has a history of generating good ROE has a high chance of possessing durable competitive advantages. This criterion’s purpose is similar to the second: It helps Buffett to identify companies with competitive advantages. The company ended 2017 with an ROE of 49.6% and negligible debt.

4. Management in place

Management point is a reminder to take a look at the people running a company when researching a stock. Buffett did not want to provide a management team when he acquires a company. For stock market investors this criterion has no real meaning, but public-listed companies almost have leaders in place. 

5. A simple business

 Capital World is a simple business to understand. However, it is worth noting that Buffett is only interested in acquiring businesses that he understands. Going with this thought simple business may be complicated for you, and vice versa.

6. An offering price

This is another criterion in Buffett’s checklist that is not applicable for stock market investors, since stocks have quoted prices that are easily seen, unlike the private businesses that Buffett evaluates for acquisitions. This criterion, though, serves as a useful reminder that the price we pay for a stock is critical.  Singapore Stock Market News

If we invest in a stock at an expensive valuation the chances of our investment succeeding will be low. A famous quote from Buffett, “Price is what you pay, a value is what you get,” rings true here.

Coming to Capital World, the company last traded at a stock price of S$0.064 on Monday. This translates to a price-to-book ratio of 0.8.

Real Estate Investment Trusts (REITs) In CapitaLand Retail China Trust

CAPITAMALL

CapitaLand Retail China Trust (CRCT) (SGX: (AU8U) is a Singapore-based real estate investment trust (“REIT”) which has a diversified portfolio of income-producing real estate used primarily for retail purposes and located in China. Share Invstment Some of the properties in its portfolio include CapitaMall Xizhimen, CapitaMall Wangjing, and CapitaMall Grand Canyon. CapitaLand Retail China Trust has a market capitalization of S$1.42 billion. Many investors like to invest in real estate investment trusts (REITs) as these investment vehicles produce regular income, often on a quarterly basis. 

Here are three reasons to like CapitaLand Retail China Trust: 
Singapore Stock Blog

1. Resilient portfolio:

 This REIT has the flexibility of its portfolio. A retail REIT is not easy in this day-and-age due to competition from e-commerce. CapitaLand Retail China Trust has managed to maintain a commendable portfolio occupancy rate of 94.9%, as of 31 March 2018. In 2017, another telling sign of shopper traffic to the REIT’s malls increased by 4.7%, while tenants’ sales inched up by 0.8%. It also achieved a rental reversion rate of 5.6% in 2017. For the first quarter of 2018, the REIT’s rental reversion rate did even better, increasing by 12.8%. All these are the testament to CapitaLand Retail China Trust’s resilient portfolio.

2. Strong financial health

 The REIT had a gearing ratio of 32.5%, which is way below the regulatory limit of 45%. It means that the REIT has a relatively low level of financial burden, and has room to increase its borrowings if needed for future acquisitions. CapitaLand Retail China Trust’s gearing ratio is also below the average ratio of 34.8% among the REITs. The interest coverage ratio measures how easily a REIT can pay the interest expenses on its outstanding loans. Singapore Stock Market News

3. Past and future growth

From 2007 to 2017, CapitaLand Retail China Trust is growing both with its net property income (NPI) and distribution per unit (DPU). During the period, its NPI had increased from S$46.5 million to S$149.2 million, while its DPU had climbed from 6.72 cents to 10.10 cents. These translate to annualized growth rates of 12.4% and 4.2%, respectively.

Since January 2018, CapitaLand Retail China Trust can go on to deliver stellar returns in the years ahead due to: (1) The rising disposable income of the middle-class population in China; (2) the rights of first refusal to purchase assets held by its sponsor, CapitaLand Limited (SGX: C31); and (3) the addition of Rock Square to the REIT’s portfolio which should drive its future performance.

ONE OF THE SECURE STOCK INVESTMENT COMPANY WHICH I LIKE MOST:

Stock Research Singapore

Recently, when I was searching stocks, I like one company from that was obscured by a few Singapore-listed companies, thought were interesting. These companies are not extensively covered by big-name investment analysts.

I will find the first company that I like: "Advancer Global Ltd (SGX: 43Q)". Let’s find out more about this company and the reasons why I like it.

About the background and business:

Advancer Global, (the Singapore stock market) is a workforce solutions and services provider in Singapore which listed in July 2016. It has three business divisions: employment services, facilities management services, and security services. Advancer Global’s offering of necessary services for both corporations and the general public. Stock Investment

These services are generally required in both good and bad economic conditions. Security service is one such example which is defensive in nature. Also, with many working adults not having the time to look after their homes, lean to their elder parents, children and foreign domestic workers are in demand.

Financial Figure: Financial Performance is one of the main things to look at before investing in a company:

• Advancer Global’s revenue surged 28.2% to S$65.3 million with all three business divisions performing well for the year ended on 31 December 2017. Stock Market News Today  With the higher revenue generated due to increased placements of foreign domestic workers to households in Singapore, contributions from subsidiaries acquired in the second half of 2016, and higher aggregate service fees charged for on-going security services projects. 

• Respectively, Advancer Global’s customer retention rates for the facilities management and the security services businesses were also high at 87.2% and 93.9%. The company has an asset-light business model with low capital expenditure needs. It had a capital expenditure of below S$500,000 in each year from 2013 to 2015.

• In 2017, cash flow from operations 32.7% to S$2.9 million, The free cash flow generated can be used by the company to reinvest into its own business, to acquire other businesses, hand out dividends to its shareholders, buy back its own shares, or pay off debt.

• Advancer Global has a strong balance sheet as well, to tide through tough economic conditions. It had S$8.0 million in cash and cash equivalents, and total debt of just S$1.9 million which gives a net profit of S$6.1 million.

• At last, Advancer Global also grows its dividends in 2017 and total dividend was 0.83 per share, representing a dividend payout ratio of just 49.1%. Generally, if a company has a low payout ratio (say, below 80%), it has room for error to maintain its dividend even if its profits were to drop in the future.

SGX STOCK UPDATES: FORCASTING SEMBCORB, AEM HOLDINGS, MENCAST

SINGAPORE STOCK RESEARCH- 3 COMPANIES- SEMBCORP INDUSTRIES, AEM HOLDINGS, MENCAST.

Last friday a listless trading session held in Singapore showing on Wall Street and geopolitical uncertainties. Investors hopes for some positive leads among Singapore corporates on Monday (May 28).SGXstock research

Sembcorp Industries: Before coming Monday Sembcorp Industries said that it has hired contact energy chief financial officer(CFO) & Graham cockroft as a new group chief financial officer with effect from Sept 3, 2018.

Sembcorp's current CFO & cheif transformation officer, Koh Chiap Khiong, has moved on with his responsibilities to head the group's utilities business in Singapore, South-east Asia and China within Sembcorp's Senior Leadership Council.

AEM Holdings: An updation given by AEM Holdings about the lawsuits faced by its owned subsidiary AEM Microtronics (Suzhou) Co (AMSZ),which is held in china.

The Suzhou court has passed its decision on two legal cases in favour of the subsidiary on Feb 2, 2016 and Feb 23, 2017. Previously AEM had announced that it was selling its business product coating and its shareholding interest in AEM for 6.63 million yuan (S$1.39 million). Launching a new subsidiary to take over the non-plating business of ASZ & this was formed as AMSZ.

New subsdiary was not purchased by Yunyi and the group then transferred the assets and liabilities of the non-plating business of ASZ to the newly formed AMSZ. However, it was later claimed some one million yuan for non-payment of property, plant and equipment transferred from ASZ to AMSZ, and 2.7 million yuan in salaries and purchases which ASZ made payment on behalf of AMSZ.

Mencast: In an interview Mencast executive chairman and CEO Glenndle Sim told The Business Times that it has plans to use the land to store inventory, sale properties & to generate cash to reduced loans. The Mencast & its CEO had helped in transforming the maintenance, repair and overhaul-focused (MRO-focused) business. since February 2017, second half of this year, Mencast and its partner, HTC Asia, expect to roll out their first MRO projects to be performed using a digital twin technology.