T.U.B Investing

So for the last 2 articles that I have written - The last article of 2020 and first article of 2021 - I have stated that I am reducing my OCBC position to redivert the money into Singtel and US Market. OCBC remains a smaller position in my portfolio and I may still sell everything within the near term. In both articles, I did not mention my reasons for selling/reducing OCBC. Nevertheless, I did reveal all the reasons in a recorded session in a FB Live with JR_Chai . (Click on the picture to watch the recorded session) Furthermore, I also had a separate discussion (which I did not mention before) on my Fundamental Scorecard Telegram Group where it was stated that (1) capex for Singtel will be huge with 5G and digital banking coming together and (2) this may affect future dividend.  Nevertheless, our Fundamental Scorecard provides a Moat Score of 55 for Singtel - which is relatively high. Thus, I was not too concern about the negativity stated above as I am looking for a company w...

This is a continuation of the previous post . The replacement of OCBC is Singtel. The joke is on me. Many months ago, for those that asked me about Singtel, I will tell them I do not like it. The main issue is cash burn in the future and the “traditional” management. But recently a friend changes my thinking and it kept me thinking on all the future possibilities.  Basically, in my opinion, the opportunities exceed its own weaknesses .  Thus, let me get into the reasons. 1. Digital Banking Grab-Singtel JV (GSJV) has been awarded for the full digital banking license. Singtel has a 40% stake in the S$1.5bn entity (around at least S$600million outlay from Singtel) . Recently, I have a deep discussion on the Fundamental Scorecard Telegram Group on Digital Banking. Basically, I commented that Google Pay as an aggregator will be a major competitor against Digital Banking – and there were a lot of explanations stating that this is a wrong. Part of the conversation as showed above (M...

For the last article of this extraordinary 2020, I like to discuss about a future new trend that will be very interesting in the US Stock Market, as well as the fact that I have been disposing OCBC for another STI component which I target for 2021.  Let’s look at the new trend first… The New Trend for the US Market It is what I called the igaming/sports betting trend . Basically I believe that companies involved directly or indirectly in the sports betting scene will grow significantly in 2021. The reasons are as follows: 1. New Jersey Supreme Court Ruling If we look prior 2018, Sports betting was illegal. As per article , it was “after New Jersey's Supreme Court victory in May 2018, any state that wishes can legalize sports betting”. Thus, since then, many states have proceeded to legalise sports betting. 2. Covid-19   Covid-19 pandemic accelerated the process of state government pushing ahead to legalise sports betting. The reasons were simple – for taxes. As per article , w...

While I informed of my friends a possible correction ahead this week and the month ahead, one of them asked me if the SG banks will be falling as well?  I gave him a long message and it goes like this: "In US, the economy is protected via the stimulus. So when the 2nd stimulus is taking so long, economy get worse In SG, it is a bit different. We are protected by government in terms of everything, to the point have keeping our job. We are in a bubble wrap economy in SG. For example, just look at SIA, if government did not even come out with the stimulus plans, so many people will be out of job. The fact is - once this bubble is POKED and it will burst, the banks will be the 1st to hit. Big time. There are really many policies that is protecting everyone - like the wage credit scheme, the temporary covid-19 act that allows deferment of loan payments, forbearance of loan payments for mortgage, Temporary bridging loan by Spring Singapore (90% risk sharing), etc. Banks knows this and i...

It has been a while since I wrote so often. While I talked about the Risk of Investing in ETF in the last post , I particularly mention about STI ETF. So I thought I should clarify my position and also address a particular question that I believe members of my Fundamental Scorecard Telegram Group will be interested (And maybe you who are reading this post). While everyone is busy looking at the US market tonight, I am writing about STI ETF. While everyone is raving about S&P 500 rising from the dead, here I am writing about STI ETF which is trying to go lower everyday. To start off, I don’t disagree in investing in US markets now. In fact, I encourage it. But one must make the purchase with the mindset that “this could be a permanent loss of capital” (Atas sentence cause I watched too many Guru Youtube lately) . So you should only press the buy button IF you know the company well enough. This has also been what I have been preaching to everyone in the Fundamental Scorecard T...

As a fundamental investor, I always look at financials statement to analysis if a company is good enough to invest in. However, there is always 2 types of balance sheet we need to take note – The regular one and the Financial Institutions (FI) one. Normal Balance Sheet FI Balance Sheet In the past, if I want to invest in a FI, I used to tell myself – I don’t know how to analyze their financials, let’s skip them! But as days, weeks, years went past, and you realise that there are numerous financial firms in of Berkshire Hathaway picks , that’s probably an indication for me to start to learn how to analyze a FI financials. After jotting down a list of criteria and factors, I reduce it to these 4 criteria. 1. Return on Assets (ROA) Formula: (Net Profit - One-time Gain) / Total Assets x 100% In my opinion, Return of Assets is the most powerful ratio of them all to calculate the performance of a FI. I believe it is mention by Warren Buffet before (lost track of th...