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Investment Notes

Sheng Siong is setting up its first outlet in China.


Investment Notes

An investment thesis for SpRe.

Investment Notes

A nice interview with Mr Lim Hock Chee, CEO of SSG.

My Investment Portfolio Returns (2015)

My Singapore stock portfolio returns (including dividends, excluding transaction cost) in 2015 was about -1.82%.  Major portfolio changes this year:

  1. Divested Zagro  – The Chairman/CEO of Zagro is seeking a voluntary delisting of the company at $0.30.
  2. Divested CapitaLand Mall Trust.
  3. Distribution in specie of shares of Boustead Projects by Boustead Singapore and its listing on SGX.
  4. Added 6 new companies to my portfolio this year (some are relatively small stakes): ARA, Boustead Projects, Fraser and Neave, Jardine Cycle & Carriage, SBS Transit and Select Group.
  5. Adjusted my stake in some of my existing holdings.

In 2015, some companies specific issues, like BreadTalk’s Soya Bean Milk Saga, resignation of Singpost’s CEO etc. were disappointing.

Although challenges persist, I hope my portfolio of companies will perform satisfactorily in the long run.

Investment Notes

Following the Amazon model, it is building a network of 24 warehouses in 12 countries to stockpile goods for companies. The e-commerce team is staffed with former Silicon Valley executives.

Investment Notes

The product is strong for a few reasons. It’s a 100 year-old formula that works, we sell 50 million units a year – and 50 million people in more than 100 countries worldwide can’t be wrong. Sixty per cent of the product is made from active ingredients – it’s not all wax and petroleum. That’s why a jar last between six and 10 months, as only a little is needed each time.

Investment Notes

…he likes companies that he has a reasonable idea of how they might look in five years. …”Do we really want to be in partnership with this person and count on them to behave well in the future? “That stops a fair number of deals…

If we talked our book, he says, “we would say pessimistic things about all four of the biggest holdings we have” because all four are repurchasing their shares at the moment…“If people weren’t often so wrong, we wouldn’t be so rich.”

When it comes to expensive stock prices, he says the level of interest rates going forward is what will shape his view on how attractive stocks are…

Cumulative results have the money invested in the S&P up more than 63%. The hedge funds are up 19.6%…“the hedge funds haven’t done badly.” They’ve been collecting their 2-and-20 in fees…“The investors in the hedge fund have paid a pretty big price,”…

When you get old, you’ll get the reputation you deserve.

…will not be buying oil and gas stocks very often going forward… probably has not bought its last one…

The battery business will be a declining one…but it will be around for a long time here and around the world.

…they favored investments in companies where they were pretty certain of a “decent result” instead of a chance of a great result.

…there’s more to life than ”merely be[ing] shrewd at picking stocks and passively holding them.”

Investment Notes

“You don’t own a stock because somebody else owns it. You own it because you do your own analysis and you decide where you think the future will be, and if you don’t know the answer to that, you don’t own it.”

I buy IBM because I like it.”

On why he’s buying Deere: “It’s not one variable. You should make your own decisions. If you don’t feel capable of making your own decisions, you should buy an index fund.”

“The decision between dividends and repurchases is simple. If you can repurchase your shares for below what they’re worth, you’re doing the shareholders who are going out a favor and you’re doing the shareholders who are staying in a favor, and nobody’s getting cash that they don’t want.”

“If you’re a 20- or 30-year-old and you can invest for your next 50 years and you just consistently buy American business, American business is going to do wonderful over that time, and I think you’ll do wonderful as a shareholder. But you have to do it consistently and you shouldn’t try to dance in and out or pick this stock or that stock. Just own the country. The best days of America lie ahead and the best days of American investors lie ahead as long as they don’t beat themselves.”

My Investment Portfolio Returns (2014)

My portfolio returns (including dividends) in 2014 was about 16.33%.  Major portfolio changes this year:

  1. Divested Goodpack  – KKR made a general offer for Goodpack at $2.50 a share via a share scheme.
  2. Divested Eu Yan Sang, Food Empire, SPH, Super Group and The Hour Glass.
  3. Added 5 new companies to my portfolio this year (some are relatively small stakes): 800 Super, iFAST, Raffles Medical Group, Singapore Shipping Corp, Yoma Strategic.
  4. Adjusted my stake in some of my existing holdings.

I am satisfied with the performance of most of the companies in my portfolio this year.  Although some of the companies are currently facing some challenges, I hope they will perform satisfactorily in the long run.

Investment Notes

… aphorism from late GIC Deputy Chairman Goh is inscribed on a wall.  CIO Lim can recite it from memory:

“The more you save and the more wisely you invest, the faster you get rich.”

Lim says, “It sounds so simple.” He smiles and adds an aphorism of his own:

“But simple things are hard to do.”