Back in 2013, I fought a very important battle.
But alas, it was not to be.
I was not prepared. I was not experienced enough yet.
...
Now...
Coming to the end of 2014, another has come knocking on my door.
This is probably the first invitation that I am TRULY interested in.
All the training these 2 years.
All my knowledge, my skills, my enlightenment - It's time to organize and consolidate them.
This is a very very important battle.
I MUST give it my best shot.
Tuesday, December 30, 2014
Sunday, December 28, 2014
First Annual Report
Received my first ever "Annual Report" as a shareholder of Frasers. Fully colored!
In it, the management team lists out:
- How the company has performed over the past year, and the reasons contributing to its success/failure
- Summary of the company assets (value of each property, tenants mix, lease period, etc)
- Financial information (cash flow, liabilities, etc)
- Interesting Stuff (like how it organize charity events for the community)
- The forecast for the future, and how it intends to grow the company
- Proposed resolutions (i.e you get to 'vote') on plans for the coming year
------------------------------------------------------------------------------------------------------------------
It's like you are now the boss, and the management are reporting to you; submitting their progress report. If you are not happy with the company, you are free to sell your stakes away.
It's what I like about long-term investing. Success is based on actual performance of the something tangible, not reading charts and candlesticks.
Too many people treat investment like gambling. They buy stock based on symbols and price, hoping to sell it at a profit to others quickly.
I buy the actual business, and makes decision to buy/sell based on fundamental changes to the company. It's a long and slow process that can't provide instant gratification, but I'm enjoying the process.
Wednesday, December 24, 2014
Financial Summary 2014
2014 marks my first year in investing.
Here's a reflection on each of my pick.
1) Frasers Centrepoint Trust
$2.5 billion total assets with only $800 million total liabilities, growing revenue, profits and DPU.
My first stock - I brought this after months of deliberation and research. And it's my favourite and most trusted one to date.
My confidence only grows when I see how crowded its shopping malls are; I'm feeling secured on how defensive it is, even if it doesn't continue to grow at the same pace in the future.
2) Super Group
Looking back, I must say this is an impulse buy. Not just because the price took a huge dive, but because I didn't really spend that much effort evaluating it.
I was too "eager" after purchasing my first stock, and didn't do as much homework on this one. Thankfully, I held back a little and took a smaller positio.
Regardless, I feel quite safe with their solid balance sheet: $77 million cash with negligible debt. They also have upcoming new products, good track record and a quite specialized food ingredient business.
I don't feel comfortable averaging down, but I'm hopeful holding for the long term.
3) China Merchant Pacific
A strong pillar of my income investing strategy. The yield is amazing for its price - I'm getting ~$700/year from this alone.
It managed to turn Jiuirui expressway from loss-making to profit the first quarter after acquisition.
Strong backing, solid balance sheet, impressive management, and good valuation. The reason I haven't brought more is only because it would tilt my portfolio too much (can't put all your eggs into one basket).
Shall look forward to add more when the chance arrive.
4) Sembcorp Industries
The shares drop quite a bit recently as well with the oil crisis, but this is one purchase I don't regret.
I was even disappointed when the price rebounded as I'm looking to add more positions should it hit $3.8.
Overall, I'm confident of the defensiveness and growth of its utilities segment. As mentioned, garbage always has to be cleared, water and power have to be provided.
5) Cash Holdings
Being new to investing, I still feel much safer with more cash on hand.
Some may see it as missed opportunities, but I see it like my master - who refers to it as an "armageddon fund".
Your cash is like your troops. You need to strike when the enemy is weak, not when it's strong; You'll amass huge casualties.
Moreover, as a newbie, it's much wiser to send small scout forces to 'test water, to gain experience. Having the majority of the force defend the capital makes me feel safer at night.
6) Thoughts
Over the year, I've been saving up a huge part of my income. I must say that I really spend a lot lesser compare to friends of my age. I guess that's one of the benefit of being a loner. :)
I think I have been able to save as much as 80%, sometimes even 90% of my income, excluding any major purchases (which is none in 2014). This aggressive saving has allow me to build up a 2 year emergency fund (which I'll never touch), an armageddon fund (for war), and purchase the stocks above.
I'm really working hard towards achieving financial freedom without compromising on quality of life.
7) Goals for 2015
Next year will be my first "full year" investing. No more "pro-rated". I think there's a need to set some concrete goals, something for me to work towards.
- To achieve an average passive income of $200 per month
I don't want to set the amount too high, as it would force me to make purchases that is not "value for money". At the same time, it should be a reasonable step forward from what I have now.
- To dutifully track my expenses for 1 year
I have done this previously for a couple of months, but it was excel-based, and not in the ideal structure. This time round, I hope to setup a real intelligence system about my spending habits. Categorizing each items and tracking them as I spend (instead of basing them off memory).
Hmm... I need a good mobile app for this though. Hopefully at the end of the year I'll be able to come up with some meaningful charts.
Last but not least, I also aim to read a few good investment books and share my thoughts here.
Here's a reflection on each of my pick.
1) Frasers Centrepoint Trust
$2.5 billion total assets with only $800 million total liabilities, growing revenue, profits and DPU.
My first stock - I brought this after months of deliberation and research. And it's my favourite and most trusted one to date.
My confidence only grows when I see how crowded its shopping malls are; I'm feeling secured on how defensive it is, even if it doesn't continue to grow at the same pace in the future.
2) Super Group
Looking back, I must say this is an impulse buy. Not just because the price took a huge dive, but because I didn't really spend that much effort evaluating it.
I was too "eager" after purchasing my first stock, and didn't do as much homework on this one. Thankfully, I held back a little and took a smaller positio.
Regardless, I feel quite safe with their solid balance sheet: $77 million cash with negligible debt. They also have upcoming new products, good track record and a quite specialized food ingredient business.
I don't feel comfortable averaging down, but I'm hopeful holding for the long term.
3) China Merchant Pacific
A strong pillar of my income investing strategy. The yield is amazing for its price - I'm getting ~$700/year from this alone.
It managed to turn Jiuirui expressway from loss-making to profit the first quarter after acquisition.
Strong backing, solid balance sheet, impressive management, and good valuation. The reason I haven't brought more is only because it would tilt my portfolio too much (can't put all your eggs into one basket).
Shall look forward to add more when the chance arrive.
4) Sembcorp Industries
The shares drop quite a bit recently as well with the oil crisis, but this is one purchase I don't regret.
I was even disappointed when the price rebounded as I'm looking to add more positions should it hit $3.8.
Overall, I'm confident of the defensiveness and growth of its utilities segment. As mentioned, garbage always has to be cleared, water and power have to be provided.
5) Cash Holdings
Being new to investing, I still feel much safer with more cash on hand.
Some may see it as missed opportunities, but I see it like my master - who refers to it as an "armageddon fund".
Your cash is like your troops. You need to strike when the enemy is weak, not when it's strong; You'll amass huge casualties.
Moreover, as a newbie, it's much wiser to send small scout forces to 'test water, to gain experience. Having the majority of the force defend the capital makes me feel safer at night.
6) Thoughts
Over the year, I've been saving up a huge part of my income. I must say that I really spend a lot lesser compare to friends of my age. I guess that's one of the benefit of being a loner. :)
I think I have been able to save as much as 80%, sometimes even 90% of my income, excluding any major purchases (which is none in 2014). This aggressive saving has allow me to build up a 2 year emergency fund (which I'll never touch), an armageddon fund (for war), and purchase the stocks above.
I'm really working hard towards achieving financial freedom without compromising on quality of life.
7) Goals for 2015
Next year will be my first "full year" investing. No more "pro-rated". I think there's a need to set some concrete goals, something for me to work towards.
- To achieve an average passive income of $200 per month
I don't want to set the amount too high, as it would force me to make purchases that is not "value for money". At the same time, it should be a reasonable step forward from what I have now.
- To dutifully track my expenses for 1 year
I have done this previously for a couple of months, but it was excel-based, and not in the ideal structure. This time round, I hope to setup a real intelligence system about my spending habits. Categorizing each items and tracking them as I spend (instead of basing them off memory).
Hmm... I need a good mobile app for this though. Hopefully at the end of the year I'll be able to come up with some meaningful charts.
Last but not least, I also aim to read a few good investment books and share my thoughts here.
Tuesday, December 23, 2014
Year in Review 2014
Been a while since I did one of these.
In the past year, it felt like I've grown tremendously in the financial department (not in monetary terms, but knowledge). Hopefully, my career can progress by the same magnitude next year.
Career
- Completing my 2nd major project. It was tough, taking about the majority of the year, but I've made it.
- Pass an emerging certification in my field. Whew.
- Felt that I could have done much more... If only there is a more...
- Got to know a new group of colleagues, which actually made me feel much better about my past circumstances.
Financial
- Undertook huge steps to improve my financial knowledge, and took concrete steps to act upon them.
- Reading financial articles has now become a daily routine for me. I've even consolidated a personal news feed of my favourite sources.
- Built up a significant war chest in preparation...
- This also mark my first year investing in stocks. In office, I've come across several like-minded friends as well. (though some of them believe in speculation, while I believe in long-term investing)
- Next year, there will be a huge shakeup in my income source. Haiz.
- Shall elaborate more on a separate post on an upcoming post.
Health/Fitness
- Failed the "Incredibly Painstaking Painful Test" for the first time... but I've began actively training for the new test. I've embarked on this journey a couple of times in the past, but always gave up halfway. Not gonna happen this time.
- In terms of health, can definitely feel myself getting older... stretched myself a few times... #_#
Relationship
- Pretty much mixing with the same few gangs.
- Met a new "group" towards the end of the year... and I was prompted about some of them. What? Do you think this is an idol drama?
Others
- I did another tabulation of my "M-Collection". I went to do a search on when was the last time I did this, and it was WAY BACK in 2006. Since then, it was grown from 1110 to 4660. Amazing.
Major Games Played: Hearthstone, League of Legends Season 4 World Championship, Tropico 4, Democracy 3, Stronghold Crusaders II, Prison Architect, 7 Grand Steps, Banished
Major Dramas Watched: Walking Dead, Demi Gods and Semi Devils 2013
Best Let's Play: Walking Dead Season 2, Wolves Among Us
Best Movies: Hobbit 3, Frozen, Baymax
In the past year, it felt like I've grown tremendously in the financial department (not in monetary terms, but knowledge). Hopefully, my career can progress by the same magnitude next year.
Career
- Completing my 2nd major project. It was tough, taking about the majority of the year, but I've made it.
- Pass an emerging certification in my field. Whew.
- Felt that I could have done much more... If only there is a more...
- Got to know a new group of colleagues, which actually made me feel much better about my past circumstances.
Financial
- Undertook huge steps to improve my financial knowledge, and took concrete steps to act upon them.
- Reading financial articles has now become a daily routine for me. I've even consolidated a personal news feed of my favourite sources.
- Built up a significant war chest in preparation...
- This also mark my first year investing in stocks. In office, I've come across several like-minded friends as well. (though some of them believe in speculation, while I believe in long-term investing)
- Next year, there will be a huge shakeup in my income source. Haiz.
- Shall elaborate more on a separate post on an upcoming post.
Health/Fitness
- Failed the "Incredibly Painstaking Painful Test" for the first time... but I've began actively training for the new test. I've embarked on this journey a couple of times in the past, but always gave up halfway. Not gonna happen this time.
- In terms of health, can definitely feel myself getting older... stretched myself a few times... #_#
Relationship
- Pretty much mixing with the same few gangs.
- Met a new "group" towards the end of the year... and I was prompted about some of them. What? Do you think this is an idol drama?
Others
- I did another tabulation of my "M-Collection". I went to do a search on when was the last time I did this, and it was WAY BACK in 2006. Since then, it was grown from 1110 to 4660. Amazing.
Major Games Played: Hearthstone, League of Legends Season 4 World Championship, Tropico 4, Democracy 3, Stronghold Crusaders II, Prison Architect, 7 Grand Steps, Banished
Major Dramas Watched: Walking Dead, Demi Gods and Semi Devils 2013
Best Let's Play: Walking Dead Season 2, Wolves Among Us
Best Movies: Hobbit 3, Frozen, Baymax
Tuesday, December 16, 2014
Big Purchases 2014
Another yearly update on my big purchases!
As predicted, I didn't make many major purchases this year in terms of tech gadgets (except a graphic card to replace the spoilt one).
I guessed a major part was me discovering the importance of using money to generate passive income - I really want to join the ranks of my financial idols, attaining financial freedom.
Still, I do plan to allocate about $1000 a year as my "luxury purchase" funds. For now, I'll snowball it to next year.
In 2015, I don't see any major hoots either.
Phone - I guess I've outgrown it. I don't really use my phone for anything other than FB and Whatsapp. Why do I need quad cores, octa cores, or n cores? Unless something revolutionary and actually useful (like 1 week battery life) comes along, I don't forsee changing my phone anytime soon.
Tablet - Same as the phone, Nexus 7 still serving me well. Was tempted to hoot the Ipad Air 2 for a while, but once again realize how much of a waste it would be. I don't use my tablet for any purpose other than watching Youtube.
Travel - Already planned a trip to Taiwan in June... hopefully this time will come to fruition.
Others - I've actually been looking to buy a good mattress. Not sure if I'm gonna make up my mind and hoot one... good ones are really expensive.
------------------------------------------------------------------------------------
2006 - Complete PC Overhaul (Core 2 Duo) [MEGA]
2007 - 22' LCD Monitor, Sony Ericssion W950i, Digital Camera
2008 - NEC Versa S3500 Laptop [MEGA]
2009 - Cowon S9, Westone 1, Radeon HD4870
2010 - HTC Desire
2011 - Shanghai Trip, Braun Series 7-790
2012 - Mayday's Noah Ark, Major PC Overhaul (Ivy Bridge) [MEGA], Westone UM2X
2013 - Dell 2713HM Monitor, Haworth Zody, HTC One [MEGA], Mayday's Noah Ark II, S.H.E Together 4Ever, Google Nexus 7 (2013)
2014 - PowerColor Radeon R9 270X
Major Purchase - $200 to $1000
Mega Purchase - Near $1000 and Above
As predicted, I didn't make many major purchases this year in terms of tech gadgets (except a graphic card to replace the spoilt one).
I guessed a major part was me discovering the importance of using money to generate passive income - I really want to join the ranks of my financial idols, attaining financial freedom.
Still, I do plan to allocate about $1000 a year as my "luxury purchase" funds. For now, I'll snowball it to next year.
In 2015, I don't see any major hoots either.
Phone - I guess I've outgrown it. I don't really use my phone for anything other than FB and Whatsapp. Why do I need quad cores, octa cores, or n cores? Unless something revolutionary and actually useful (like 1 week battery life) comes along, I don't forsee changing my phone anytime soon.
Tablet - Same as the phone, Nexus 7 still serving me well. Was tempted to hoot the Ipad Air 2 for a while, but once again realize how much of a waste it would be. I don't use my tablet for any purpose other than watching Youtube.
Travel - Already planned a trip to Taiwan in June... hopefully this time will come to fruition.
Others - I've actually been looking to buy a good mattress. Not sure if I'm gonna make up my mind and hoot one... good ones are really expensive.
------------------------------------------------------------------------------------
2006 - Complete PC Overhaul (Core 2 Duo) [MEGA]
2007 - 22' LCD Monitor, Sony Ericssion W950i, Digital Camera
2008 - NEC Versa S3500 Laptop [MEGA]
2009 - Cowon S9, Westone 1, Radeon HD4870
2010 - HTC Desire
2011 - Shanghai Trip, Braun Series 7-790
2012 - Mayday's Noah Ark, Major PC Overhaul (Ivy Bridge) [MEGA], Westone UM2X
2013 - Dell 2713HM Monitor, Haworth Zody, HTC One [MEGA], Mayday's Noah Ark II, S.H.E Together 4Ever, Google Nexus 7 (2013)
2014 - PowerColor Radeon R9 270X
Major Purchase - $200 to $1000
Mega Purchase - Near $1000 and Above
Friday, December 05, 2014
Value of a Car
For the past month, I've had the luxury of having the family car all to myself.
Driving it to work everyday, going to 'faraway places' to attend wedding dinners, etc...
And it makes me wonder, how much value would I place on a car?
To tell the truth, not much. I have no idea why some people place so much emphasis on having a car - to the point that they would pile on debts just to own one.
1. How much does a car TRULY cost in Singapore?
Many people underestimate this. Just look at this article for a good idea.
I can safely say even if you take a cab to work everyday for the next 10 years, it'll still be cheaper than owning a car.
2. What is the OPPORTUNITY cost of using the $ to buy the car, instead of compounding it?
A car is a depreciating asset that loses its value every year, until it reaches a big fat 0.
Let's estimate that value to be say, $200k. Do you know how much passive income you can get by investing that $200K?
If you use that same $200k to buy 100 lots of Frasers Centrepoint Trust, you can get about $12k a year, or $1000 EVERY MONTH.
Take a moment to let that sink in.
...
That means in 10 years, you will get back about $120k worth of dividends + original capital = $320k. And that's not even including capital gains.
If you use it on the car? You can get back, $0. Big fat kosong.
WOW.
Now tell me why the hell you would want to buy that car.
3. Miscellaneous
Maybe it's just me, but here are my thoughts after exclusive usage of the car for the past month:
- Yes, it's convenient and much more comfortable, but it actually isn't that much faster. It probably shaves off like 10-15 mins during the morning rush hour. Finding parking lot is sometime a huge pain too.
- I can spend the 1 hour on train reading news, watching movies, etc... instead of getting stuck in the jam.
- Owning a car comes with many 'additional responsibilities'. People expects you to "give them a lift", etc... Not that it's much of a deal, but it's something worth noting.
Overall, I just feel the cost simply isn't worth it for the little extra convenience and comfort. There's always a cab available ($20, which equals to a day's parking in the city).
Bottom Line
Unless you're in a role that really need that car to generate much more income for you (e.g. Sales), or, you are damn frigging rich, then I see no reason to buy the car.
I have no intention of getting one either in the foreseeable future. I rather have the money generate more money for me.
Once again, compound your $. Even investing in an extremely safe place (e.g STI) will double your $ every 20 years.
Driving it to work everyday, going to 'faraway places' to attend wedding dinners, etc...
And it makes me wonder, how much value would I place on a car?
To tell the truth, not much. I have no idea why some people place so much emphasis on having a car - to the point that they would pile on debts just to own one.
1. How much does a car TRULY cost in Singapore?
Many people underestimate this. Just look at this article for a good idea.
I can safely say even if you take a cab to work everyday for the next 10 years, it'll still be cheaper than owning a car.
2. What is the OPPORTUNITY cost of using the $ to buy the car, instead of compounding it?
A car is a depreciating asset that loses its value every year, until it reaches a big fat 0.
Let's estimate that value to be say, $200k. Do you know how much passive income you can get by investing that $200K?
If you use that same $200k to buy 100 lots of Frasers Centrepoint Trust, you can get about $12k a year, or $1000 EVERY MONTH.
Take a moment to let that sink in.
...
That means in 10 years, you will get back about $120k worth of dividends + original capital = $320k. And that's not even including capital gains.
If you use it on the car? You can get back, $0. Big fat kosong.
WOW.
Now tell me why the hell you would want to buy that car.
3. Miscellaneous
Maybe it's just me, but here are my thoughts after exclusive usage of the car for the past month:
- Yes, it's convenient and much more comfortable, but it actually isn't that much faster. It probably shaves off like 10-15 mins during the morning rush hour. Finding parking lot is sometime a huge pain too.
- I can spend the 1 hour on train reading news, watching movies, etc... instead of getting stuck in the jam.
- Owning a car comes with many 'additional responsibilities'. People expects you to "give them a lift", etc... Not that it's much of a deal, but it's something worth noting.
Overall, I just feel the cost simply isn't worth it for the little extra convenience and comfort. There's always a cab available ($20, which equals to a day's parking in the city).
Bottom Line
Unless you're in a role that really need that car to generate much more income for you (e.g. Sales), or, you are damn frigging rich, then I see no reason to buy the car.
I have no intention of getting one either in the foreseeable future. I rather have the money generate more money for me.
Once again, compound your $. Even investing in an extremely safe place (e.g STI) will double your $ every 20 years.
Friday, October 17, 2014
Sembcorp Industries
Brought into Sembcorp Industries today in view of the huge discounts. I have many choices, but decided to went with this due to several reasons:
- Its Utilities segment (i.e Power and Water) made up nearly 60% of the stock, which I considered a very defensive area. People will always need power and water. It makes me feel safer compare to going full O&G.
- Strong pipelines in the works, increasing power and water capacity provision to China and India.
- Extremely solid balance sheet, blue chip with over 700million net current assets, over 2 billion in cash.
- Going by conservative estimates for the next half of the year - 40cEPS and 15c DPS - it gives a P/E of 12 and dividend yield of 3%. I think that is quite cheap for such a solid stock. Intending to hold it for the long term :)
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Don't think I'll be adding anymore in the meantime. Times are uncertain and I think it's better to hold more cash...
- Its Utilities segment (i.e Power and Water) made up nearly 60% of the stock, which I considered a very defensive area. People will always need power and water. It makes me feel safer compare to going full O&G.
- Strong pipelines in the works, increasing power and water capacity provision to China and India.
- Extremely solid balance sheet, blue chip with over 700million net current assets, over 2 billion in cash.
- Going by conservative estimates for the next half of the year - 40cEPS and 15c DPS - it gives a P/E of 12 and dividend yield of 3%. I think that is quite cheap for such a solid stock. Intending to hold it for the long term :)
---------------------------------------------------------------------------------------------------------------------
Don't think I'll be adding anymore in the meantime. Times are uncertain and I think it's better to hold more cash...
Monday, August 25, 2014
Back to Greenlands
Went back to the Greenlands recently...
And it truly made me appreciate how lucky I am in the real world.
It was like being brought back to 8 years ago on the Island of Light... Eww... still give me nightmares thinking about it .
This kind of life is really, really not for me.
I don't get why certain people have to be so hostile. We are only transported back temporarily, for a couple of days. We have no choice, we have no say, we have no rights. All we hope is to complete whatever nonsense needed, then get the **** out of there.
Is there really a need to be critical? To be sarcastic? Or even make enemies?
I guess some people thrive in this kind of environment... but I don't. I really don't like this place. Nevertheless, I don't try to run from it. I do what I can, to the best of my abilities.
I'm not the biggest in size, or toughest, or most knowledgeable, but I do what I can. I don't give people trouble.
Anyway, it's back to reality.
And it truly made me appreciate how lucky I am in the real world.
It was like being brought back to 8 years ago on the Island of Light... Eww... still give me nightmares thinking about it .
This kind of life is really, really not for me.
I don't get why certain people have to be so hostile. We are only transported back temporarily, for a couple of days. We have no choice, we have no say, we have no rights. All we hope is to complete whatever nonsense needed, then get the **** out of there.
Is there really a need to be critical? To be sarcastic? Or even make enemies?
I guess some people thrive in this kind of environment... but I don't. I really don't like this place. Nevertheless, I don't try to run from it. I do what I can, to the best of my abilities.
I'm not the biggest in size, or toughest, or most knowledgeable, but I do what I can. I don't give people trouble.
Anyway, it's back to reality.
Saturday, August 09, 2014
China Merchant Pacific 2014Q2 Results
Hmm... been 4 months since I started on my investing journey, and I've learnt immensely in this period.
Before, I don't even know that they do things like halt trading before announcing important information. I don't know what's ex-div, cum-div, rights issue, bonus issue, stock-split, etc...
Now, I really feel that I'm a small owner of the company. I subscribed their announcements on proposed acquisitions, contracts and awards, change in ownership and of course their quarterly earning reports. It's quite fun actually.
Anyway....
-----------------------------------------------------------------------------------------------------
CMP just announced their 1st half results.
1. They intend to purchase a new expressway - the 48km "Jiurui Expressway" (江西省九江至瑞昌 高速公路) located in Jiangxi. This will increase their "road assets" from 367km to 415km.
2. The Jiurui expressway is newly opened (in 2011) with promising growth in traffic after the surrounding construction completes from 2014 to 2017. It will provide toll revenue for the next 26 years! (Current charges for using the expressway is 0.45RMB/km.)
3. Addition good news: The company will issue shares at $0.985 (which is a premium to its existing price) to fund the purchase.
4. For Q2 results, toll-road net profit increased by 8%. They've announced an interim dividend of 3.5 cents, which is 27% higher than last year! (That's $35 per lot!)
Before, I don't even know that they do things like halt trading before announcing important information. I don't know what's ex-div, cum-div, rights issue, bonus issue, stock-split, etc...
Now, I really feel that I'm a small owner of the company. I subscribed their announcements on proposed acquisitions, contracts and awards, change in ownership and of course their quarterly earning reports. It's quite fun actually.
Anyway....
-----------------------------------------------------------------------------------------------------
CMP just announced their 1st half results.
1. They intend to purchase a new expressway - the 48km "Jiurui Expressway" (江西省九江至瑞昌 高速公路) located in Jiangxi. This will increase their "road assets" from 367km to 415km.
2. The Jiurui expressway is newly opened (in 2011) with promising growth in traffic after the surrounding construction completes from 2014 to 2017. It will provide toll revenue for the next 26 years! (Current charges for using the expressway is 0.45RMB/km.)
3. Addition good news: The company will issue shares at $0.985 (which is a premium to its existing price) to fund the purchase.
4. For Q2 results, toll-road net profit increased by 8%. They've announced an interim dividend of 3.5 cents, which is 27% higher than last year! (That's $35 per lot!)
Tuesday, July 22, 2014
Frasers Centrepoint Trust 2014Q3 Results
WOOO!
3 Cents Dividend!!! That's $30 per lot!
Geez... should have brought more last time!
I guess I was too cautious because it was my first stock...
---------------------------------------------------------------------
Anyway... very good results across the board.
They've officially completed the acquisition of Changi City Point (CCP), and now has total of 7 shopping malls!
The only negative thing of course is that their debt went from 27.9% to 30.2% (due to purchase of CCP). However, 30.2% is still considered on the low end when compared against its peers.
3 Cents Dividend!!! That's $30 per lot!
Geez... should have brought more last time!
I guess I was too cautious because it was my first stock...
---------------------------------------------------------------------
Anyway... very good results across the board.
They've officially completed the acquisition of Changi City Point (CCP), and now has total of 7 shopping malls!
The only negative thing of course is that their debt went from 27.9% to 30.2% (due to purchase of CCP). However, 30.2% is still considered on the low end when compared against its peers.
Wednesday, July 16, 2014
China Merchant Pacific
Brought my first "overseas" stock today - China Merchant Pacific (CMP)!
I never intended to buy overseas stock actually, but got really attracted in this company after reading about it on a fellow investor/blogger site.
This is a toll road company owning (co-owning) 4 major expressways/roads in China. What does it do? To simplify, this is basically a 'ERP' collection company. All traffic using these expressways will have to pay charges.
What are its "statistics" like? The 4 roads totaled approximately 367km with a traffic volume of about 50 million vehicles per year. That translates to about $2.2billion RMB revenue a year.
It owns 51%, 100%, 40% and 60% of each expressway respectively, connecting fast-growing regions such as Zhejiang (Hangzhou, Wenzhou, Taizhou), Guangxi (Guilin, Liuzhou, Nanning), Guizhou (New airport to Guiyang capital). These areas are all under-going economic/tourism developments, with rising traffic demands.
-------------------------------------------------------------------------------------------------
The major factors enticing me to purchase these stock are:
1) STRONG Backing
The parent of this company is China Merchant Group, which is one of the largest state-owned enterprise directly under the China State Council (国务院).
In local text, it's 'ahgong' company. You think Singapore ERP gantries will collapse meh?
2) Strong history of growth and dividends.
Consistently giving out dividends since 1992 without a single rights issue. The dividends have also been growing consistently, just like how ERP gets more and more expensive every year.
Future toll rates "adjustments"? Yes! Yes! Yes!
3) Strong balance sheet
The net gearing (aka debt) of the company is only 28%, which is relatively low. This allows room for more acquisition in the future. (Buy more roads, build more ERPs!)
In addition, it enjoys extremely low borrowing costs given its status as "gahment-link" company. (2.5% compare to 4 to 6% by its competitors)
4) Relatively cheap valuation
The price to book ratio of the company is 0.8 (selling at 20% discount to its net asset value), with a p/e ratio of 7.4 (among the lower ones in the industry)
That sounds pretty attractive to me. Finally, I guess it helps diversify my investments a bit to the overseas market.
-------------------------------------------------------------------------------------------------
Of course, there are always potential risks, such as:
1. Slow down in China economy -> less cars -> less revenue.
2. Potential competing roads opening that divert away traffic from the expressways.
3. New government policy curbing toll rates growth... (Would not be worry if it's in Singapore......)
4. Currency - Overseas stock means exchange risk if RMB falls against SGD.
-----------------------------------------------------------------------------------------------
Regardless, after reading through research reports and several opinions, I feel that the fundamentals of the company is sound with a strong economic moat.
It's 7.5% dividend is the main temptation (I'm expecting to receive $700 in dividends every year!). It's only giving out 60% of its profit and it's already 7.5% yield. Definitely room for further growth here.
I never intended to buy overseas stock actually, but got really attracted in this company after reading about it on a fellow investor/blogger site.
This is a toll road company owning (co-owning) 4 major expressways/roads in China. What does it do? To simplify, this is basically a 'ERP' collection company. All traffic using these expressways will have to pay charges.
What are its "statistics" like? The 4 roads totaled approximately 367km with a traffic volume of about 50 million vehicles per year. That translates to about $2.2billion RMB revenue a year.
It owns 51%, 100%, 40% and 60% of each expressway respectively, connecting fast-growing regions such as Zhejiang (Hangzhou, Wenzhou, Taizhou), Guangxi (Guilin, Liuzhou, Nanning), Guizhou (New airport to Guiyang capital). These areas are all under-going economic/tourism developments, with rising traffic demands.
-------------------------------------------------------------------------------------------------
The major factors enticing me to purchase these stock are:
1) STRONG Backing
The parent of this company is China Merchant Group, which is one of the largest state-owned enterprise directly under the China State Council (国务院).
In local text, it's 'ahgong' company. You think Singapore ERP gantries will collapse meh?
2) Strong history of growth and dividends.
Consistently giving out dividends since 1992 without a single rights issue. The dividends have also been growing consistently, just like how ERP gets more and more expensive every year.
Future toll rates "adjustments"? Yes! Yes! Yes!
3) Strong balance sheet
The net gearing (aka debt) of the company is only 28%, which is relatively low. This allows room for more acquisition in the future. (Buy more roads, build more ERPs!)
In addition, it enjoys extremely low borrowing costs given its status as "gahment-link" company. (2.5% compare to 4 to 6% by its competitors)
4) Relatively cheap valuation
The price to book ratio of the company is 0.8 (selling at 20% discount to its net asset value), with a p/e ratio of 7.4 (among the lower ones in the industry)
That sounds pretty attractive to me. Finally, I guess it helps diversify my investments a bit to the overseas market.
-------------------------------------------------------------------------------------------------
Of course, there are always potential risks, such as:
1. Slow down in China economy -> less cars -> less revenue.
2. Potential competing roads opening that divert away traffic from the expressways.
3. New government policy curbing toll rates growth... (Would not be worry if it's in Singapore......)
4. Currency - Overseas stock means exchange risk if RMB falls against SGD.
-----------------------------------------------------------------------------------------------
Regardless, after reading through research reports and several opinions, I feel that the fundamentals of the company is sound with a strong economic moat.
It's 7.5% dividend is the main temptation (I'm expecting to receive $700 in dividends every year!). It's only giving out 60% of its profit and it's already 7.5% yield. Definitely room for further growth here.
Tuesday, July 01, 2014
Meditation
Sometimes, there's no point in wasting too much energy trying to meditate the relations between 2 person who already has a conflict with each other.
At best, you're wasting your time and effort. At worst, you may even damage your relations.
Ha.
That's how it is.
Sometimes it's A fault, sometimes it's B fault.
It's all a matter of perspective and position.
At best, you're wasting your time and effort. At worst, you may even damage your relations.
Ha.
That's how it is.
Sometimes it's A fault, sometimes it's B fault.
It's all a matter of perspective and position.
Monday, June 09, 2014
First Dividends!
Got the first batch of dividends of my life!
$140 from Frasers (which I will get every 3 months!!!), and $140 from Super.
Haizz.... really regretted not learning about Stocks earlier in my life. Wasted a good 5, 10 years of compounding money.
One dividend payout already way higher than few years of 0.005% interest in the bank.
:(
...
...
...
Still, better late than never!
I shall wisely invest my money now!
$140 from Frasers (which I will get every 3 months!!!), and $140 from Super.
Haizz.... really regretted not learning about Stocks earlier in my life. Wasted a good 5, 10 years of compounding money.
One dividend payout already way higher than few years of 0.005% interest in the bank.
:(
...
...
...
Still, better late than never!
I shall wisely invest my money now!
Sunday, May 25, 2014
Saturday, May 10, 2014
Super Group!
Hooted my 2nd stock - The Super Group.
"The Company is an integrated instant F&B brand owner of instant food and beverage with market in Southeast Asia. The Company operates in three principal geographical areas, Singapore, Southeast Asia and East Asia. The Company manufactures and distributes branded consumer products, primarily instant coffee, instant cereals and instant tea mixes products. The Company has developed over 300 instant beverages and convenient food products. Some of the Company’s brands include Super, Owl, Super Power, Cafe Nova, YeYe, Coffee King, Gold Eagle, Negresco and Eagle King."
This is a solid company with some very strong track records:
For the past 20 years, they've been constantly issuing dividends, every single year without fail - even during financial crisis (e.g. 2008).
The stock took a dip a while back, falling from its high to below 20P/E ($5 to $3.50). This made it a good value. Even using conservative estimates (10% growth), its intrinsic value is at least $4.20. The recently announced bonus offer feels like a good chance to get in.
Merits:
- Defensive stock with consistently growth: people will still drink coffee 20 years from now.
- Solid balance sheet. $300m in current assets vs $100m liabilities. (So MUCH CASH!) That means it can makes investment/acquisition in the future without the need for further funding from shareholders.
- Committed to delivering at least 50% of their profits as dividends.
- Rebranding in their core markets like Singapore, Malaysia and Thailand.
- Growth and expansion into new markets like China, Philippines, Europe.
- Research and development into other products such as creamer, nutritious powders and cereals.
Next time you drop by the super-market, pick up one of their product, OK?
"The Company is an integrated instant F&B brand owner of instant food and beverage with market in Southeast Asia. The Company operates in three principal geographical areas, Singapore, Southeast Asia and East Asia. The Company manufactures and distributes branded consumer products, primarily instant coffee, instant cereals and instant tea mixes products. The Company has developed over 300 instant beverages and convenient food products. Some of the Company’s brands include Super, Owl, Super Power, Cafe Nova, YeYe, Coffee King, Gold Eagle, Negresco and Eagle King."
This is a solid company with some very strong track records:
For the past 20 years, they've been constantly issuing dividends, every single year without fail - even during financial crisis (e.g. 2008).
The stock took a dip a while back, falling from its high to below 20P/E ($5 to $3.50). This made it a good value. Even using conservative estimates (10% growth), its intrinsic value is at least $4.20. The recently announced bonus offer feels like a good chance to get in.
Merits:
- Defensive stock with consistently growth: people will still drink coffee 20 years from now.
- Solid balance sheet. $300m in current assets vs $100m liabilities. (So MUCH CASH!) That means it can makes investment/acquisition in the future without the need for further funding from shareholders.
- Committed to delivering at least 50% of their profits as dividends.
- Rebranding in their core markets like Singapore, Malaysia and Thailand.
- Growth and expansion into new markets like China, Philippines, Europe.
- Research and development into other products such as creamer, nutritious powders and cereals.
Next time you drop by the super-market, pick up one of their product, OK?
Friday, May 02, 2014
Connecting the Dots
Steve Jobs once gave the famous "Connecting the Dots" speech.
Recently, I experienced this in relation to stuff I have studied in my Uni days - things I thought I won't ever used again.
It just "mysteriously" appear in the work I do, and in the course I attended.
E.G 4 Years ago, it appeared as a chapter in an elective. After passing the exams, everything return back to lecturer. 4 Years later, it re-appear during a course I am taking.
Ahhh... life is strange.
You never know. You may think what you are doing now is useless, but who knows if one day in the future, it'll be a dot to connect back to.
Tuesday, April 22, 2014
My First Stock Report Card!
Got the first quarterly earnings report of my first stock today!
Wow, the feeling is kind of like camping for your own exam score - it feels good when the results are good.
Long story short, it was nothing short of stellar. Causeway Point and North Point continues to be the pillar of FCT (Monopoly of the entire North area. No other shopping malls within 5KM distance)
Overall - More rentals, more income, more dividends!
Aside from Bedok Point which is undergoing renovation, all other malls revenue have increased. Renovations are expected to complete by the next quarter, and together with the acquisition of Changi City Point, it's expected to do even further for the rest of the year.
In other areas, occupancy rates are stable. Interest cover have increased, and 94% of FCT's debt are fixed (meaning future interest rate hike will not affect it as much)
Overall, I am very happy with my purchase!
Wow, the feeling is kind of like camping for your own exam score - it feels good when the results are good.
Long story short, it was nothing short of stellar. Causeway Point and North Point continues to be the pillar of FCT (Monopoly of the entire North area. No other shopping malls within 5KM distance)
Overall - More rentals, more income, more dividends!
Aside from Bedok Point which is undergoing renovation, all other malls revenue have increased. Renovations are expected to complete by the next quarter, and together with the acquisition of Changi City Point, it's expected to do even further for the rest of the year.
In other areas, occupancy rates are stable. Interest cover have increased, and 94% of FCT's debt are fixed (meaning future interest rate hike will not affect it as much)
Overall, I am very happy with my purchase!
Monday, April 14, 2014
My First Stock - Frasers Centrepoint Trust!
Finally acquire my first stock today, Frasers Centrepoint Trust (FCT)!
Does the logo looks familiar?
FCT own a number of shopping malls in Singapore - its most prized assets being Causeway Point and Northpoint.
-------------------------------------------------------------------------------------------------------------------------
Why did I buy this stock?
1) It meets all the criteria I stated in the previous post - strong fundamentals, high dividends yield, and a solid blue-chip (>1 billion market cap)
2) It is a defensive stock - even in economic downturn, people will still visit shopping malls to eat and watch movies. This fits my goal of holding an income generating asset for very long term. As long as its fundamentals are good, I will hold it and collect dividends till I'm 60 years old. :P
3) It is the most defensive among all retail REITs due to its mall locations. Unlike most other REITs, FCT mall cater more to the sub-urban, heartland areas. It serves place like Woodlands, Yishun, Yew Tee - where they have sole "monopoly". It's not like Jurong East where they have 5 malls competing with each other for traffic.
4) It is something I can understand, and I can see everyday! When I pass by Causeway Point, I know how flooded the mall is. I can see how many percent of the retail areas are rented out, etc...
5) It has enjoyed very good "reviews". From the bloggers I followed to the analyst reports that I read. Most notably, It just acquired Changi City Point (at Expo) recently - which will spur its growth.
-------------------------------------------------------------------------------------------------------------------------
So, that's the 5 main reasons I brought FCT.
In terms of technical, my personal valuation is this:
Disclaimer: These are based on a newbie opinon. Do not follow blindly.
| P/E: 16.2 |
Own adjusted calculation.
|
| NAV: $1.77 |
Brought it at near NAV. Ideally I would have waited for a better
discount. However, I don't think it will drop any further in the short term.
|
| Gearing: 27.6% |
Extremely good. Typically REIT gearing is around 30 to 35%
This means there is more than enough debt head-room.
|
| Yield: 0.06 |
Not the highest among all REITs. For a retail one, it is solid. It
will grow with the acquisition of CCP.
|
| Interest Coverage Ratio: 6 |
Again, very good ratio. This means their earnings can cover the debt
interest 6 times. Anything above 5 is good.
|
| Estimated Margin of Safety: 43% |
Based on my personal extremely conservative calculation. Ideally, I
would have wanted around 67% - but you can’t have everything perfect.
|
Monday, April 07, 2014
My First Investment?
After tons of research, reading, reading and more reading. From SGX, Money Sense, SIAS, Investopedia, Financial Times, Books, Forums, Blogs... [
I think I've now got a good sense of fundamental analysis - interpreting financial reports, figures and ratios.
I've done several exercises where I try to derive financial ratios and figures of the company, based on its financial report alone. (It's sort of like doing 10 years series assessment, then checking the answers at the back)
So.
I think I'm ready to make my first step into the world of investment.
My first security purchase.
As a new investor, my approach will be: Explore around, but be caution.
My personal opinion is:
- The stock market is kind of overpriced right now (STI at >3000). No one knows when the crash will hit.
- I could consider buying ETF (safest), but I feel I won't learn much from it. I want to be more involved and engaged, even if it means slightly more risk. I want to be vested in a company, so that I can learn. The ups and downs, the process, etc...
- I don't want to take on too risky (penny, even mid cap) stocks. I don't need to, and I also don't want to. Maybe when I become more experience, or have more capital, etc... I could allocate some to them. But not now.
- The most reasonable choice now would be blue chips. Unfortuntely, they feel really overpriced. The 3 telcos are high-sky. The 3 banks are out of reach for me. The others are either the same, or not my cup of tea (don't invest in something you don't understand).
- In the end, my conclusion is to wait for the 'crash' before buying stocks. Rather then buy a growth stock, I decide to follow my idol - buy an income stock.
- What are some of the best income generating stock? REITs. Are they without risk? No. They are riskier than the ETF, but safer compared to stock.
- The greatest threat to REIT now is the impending interest rates hike. Therefore, I must choose very carefully.
- Another reason for REIT: I intend to hold this stock for the long term - as long as I need to. Hence, I'm not worried about the price. It just needs to be my extra source of income. :)
- And hence, my first decision - allocate a portion to REITs, and keep the rest as back-up ammunition. Opportunities come to those who wait.
I think I've now got a good sense of fundamental analysis - interpreting financial reports, figures and ratios.
I've done several exercises where I try to derive financial ratios and figures of the company, based on its financial report alone. (It's sort of like doing 10 years series assessment, then checking the answers at the back)
So.
I think I'm ready to make my first step into the world of investment.
My first security purchase.
As a new investor, my approach will be: Explore around, but be caution.
My personal opinion is:
- The stock market is kind of overpriced right now (STI at >3000). No one knows when the crash will hit.
- I could consider buying ETF (safest), but I feel I won't learn much from it. I want to be more involved and engaged, even if it means slightly more risk. I want to be vested in a company, so that I can learn. The ups and downs, the process, etc...
- I don't want to take on too risky (penny, even mid cap) stocks. I don't need to, and I also don't want to. Maybe when I become more experience, or have more capital, etc... I could allocate some to them. But not now.
- The most reasonable choice now would be blue chips. Unfortuntely, they feel really overpriced. The 3 telcos are high-sky. The 3 banks are out of reach for me. The others are either the same, or not my cup of tea (don't invest in something you don't understand).
- In the end, my conclusion is to wait for the 'crash' before buying stocks. Rather then buy a growth stock, I decide to follow my idol - buy an income stock.
- What are some of the best income generating stock? REITs. Are they without risk? No. They are riskier than the ETF, but safer compared to stock.
- The greatest threat to REIT now is the impending interest rates hike. Therefore, I must choose very carefully.
- Another reason for REIT: I intend to hold this stock for the long term - as long as I need to. Hence, I'm not worried about the price. It just needs to be my extra source of income. :)
- And hence, my first decision - allocate a portion to REITs, and keep the rest as back-up ammunition. Opportunities come to those who wait.
Friday, March 21, 2014
Stocks VS Poker
Now that I've learn a lot more about stocks, I realize how much similar it is with Poker.
Stock: You can control company risk (by choosing the right ones), but you can't control the market risk (crash).
Poker: You can control the cards you choose to play (premium hands), but there's nothing you can do when you run into a cooler.
Both: You can't be right all the time. You can, however, maximize your profits when you are right and minimize your losses when you are wrong.
Both: It is all about return on investment in the long run - not one or two sessions.
Stock: You can't control the emotions of the market. Even the best companies stock can plummet.
Poker: You can only make sure you get in with the best hand. The rest is up to the gods.
Stock: You need to know when to buy, and when to cut your losses and run.
Poker: You need to know when to hold'em, and when to fold'em.
Stock: You can control company risk (by choosing the right ones), but you can't control the market risk (crash).
Poker: You can control the cards you choose to play (premium hands), but there's nothing you can do when you run into a cooler.
Both: You can't be right all the time. You can, however, maximize your profits when you are right and minimize your losses when you are wrong.
Both: It is all about return on investment in the long run - not one or two sessions.
Stock: You can't control the emotions of the market. Even the best companies stock can plummet.
Poker: You can only make sure you get in with the best hand. The rest is up to the gods.
Stock: You need to know when to buy, and when to cut your losses and run.
Poker: You need to know when to hold'em, and when to fold'em.
Sunday, March 16, 2014
Financial Education
Stepping up on my homework lately...
- Completed most of the important courses at Wall Street Survivor [Highly recommend their "Reading financial statement series].
- Spent a lot more time reading financial blogs and forums.
- Setting up a watchlist at Google Finance.
- Read through some company financial statements (never thought I'll do that).
I've also began attending some newbie seminars by CIMB.
For most investors (who made money from the price rising), there are 2 criteria you must ask before buying a stock:
1. Is it a good company?
2. Is it the right time? (aka right price)
The speaker gave his 2 cents worth on evaluating a good company:
1. Positive Net Income for the past 10 years
This is the company "take home" pay - what is left of their revenue after paying the workers, taxes, expenses etc...
Companies can sometimes manipulate this figure by playing around with stuff like depreciation to make it look nice, for a year or two - But for 10 years? Not likely. Any scam would have fallen apart.
This means the company is a money-maker.
2. Consistent dividends in good & bad times
This is important as it show that you are taken care of as a minority shareholder.
If the dividend payout ratio is reduced, what is the reason? Is it justified?
3. Positive operating cash flow (OCF)
This sounds very similar to net income, but it's not the same. A company may make lot of net income, but still run in cash flow problems. It only deals with cold hard cash on your hand right now. [Not receivables, buildings, machines]
If this is negative, check what the company did. Maybe it brought a new building/equipment for future investments.
- Completed most of the important courses at Wall Street Survivor [Highly recommend their "Reading financial statement series].
- Spent a lot more time reading financial blogs and forums.
- Setting up a watchlist at Google Finance.
- Read through some company financial statements (never thought I'll do that).
I've also began attending some newbie seminars by CIMB.
For most investors (who made money from the price rising), there are 2 criteria you must ask before buying a stock:
1. Is it a good company?
2. Is it the right time? (aka right price)
The speaker gave his 2 cents worth on evaluating a good company:
1. Positive Net Income for the past 10 years
This is the company "take home" pay - what is left of their revenue after paying the workers, taxes, expenses etc...
Companies can sometimes manipulate this figure by playing around with stuff like depreciation to make it look nice, for a year or two - But for 10 years? Not likely. Any scam would have fallen apart.
This means the company is a money-maker.
2. Consistent dividends in good & bad times
This is important as it show that you are taken care of as a minority shareholder.
If the dividend payout ratio is reduced, what is the reason? Is it justified?
3. Positive operating cash flow (OCF)
This sounds very similar to net income, but it's not the same. A company may make lot of net income, but still run in cash flow problems. It only deals with cold hard cash on your hand right now. [Not receivables, buildings, machines]
If this is negative, check what the company did. Maybe it brought a new building/equipment for future investments.
Monday, February 24, 2014
Tuesday, January 14, 2014
Financial Summary
Been doing some financial research for the past few months - From reading investment blogs & forums, watching financial documentaries/books to comparing the interest rates of different local banks.
Now that I've been working for 1 year+, I think it's really time to look in these. Feel that it's already late, but better late then never, right?
Financially, I think I'm doing pretty well. At the very least, I'm completely debt free.
These are some of the financial actions I've taken in the past year:
- Consolidated and organized the insurance policies from childhood (Thanks mum).
- Purchased a private H&S insurance plan.
- Closed down redundant bank account.
- Diligently keep track of my expenditures for 6 months.
- Accumulated a healthy, more than recommended amount of emergency funds.
- Set aside the emergency funds into 2 of the highest interest rate saving accounts in Singapore (No plans to touch them from now on)
- Saved up a pot of investment fund that I think is now sufficient to make meaningful and efficient investments.
- Created a new securities account on a new platform (which I think is better than the old)
- Brought my first "Precious Metal"! (small one lah)
...
Now, the plan for the new year will of course be getting started in investments. Allocation, diversifying, learning about different securities...... It will be fun~
Now that I've been working for 1 year+, I think it's really time to look in these. Feel that it's already late, but better late then never, right?
Financially, I think I'm doing pretty well. At the very least, I'm completely debt free.
These are some of the financial actions I've taken in the past year:
- Consolidated and organized the insurance policies from childhood (Thanks mum).
- Purchased a private H&S insurance plan.
- Closed down redundant bank account.
- Diligently keep track of my expenditures for 6 months.
- Accumulated a healthy, more than recommended amount of emergency funds.
- Set aside the emergency funds into 2 of the highest interest rate saving accounts in Singapore (No plans to touch them from now on)
- Saved up a pot of investment fund that I think is now sufficient to make meaningful and efficient investments.
- Created a new securities account on a new platform (which I think is better than the old)
- Brought my first "Precious Metal"! (small one lah)
...
Now, the plan for the new year will of course be getting started in investments. Allocation, diversifying, learning about different securities...... It will be fun~
Friday, January 03, 2014
Cash Flow Statement
Sometime back (when I started working), I embarked on a mission to track my expenses. I feel that it's kind of important to know how much excess $ I have each month to save/invest.
It's really interesting once you get a substantial list of data, when you can start answering questions like: How much money are you spending on average on breakfast/lunch/dinner? How long can a month salary last based on your expenditures?
These insights into data... It's sort of like personal Business Intelligence! (My field)
...
It was EXTREMELY PAINFUL when I first started doing it, but I'm glad I managed to persevere and churned out half a year worth of data.
I've decided to omit all "major purchases", since they'll mess up what I really want to know - how much is my basic regular expenses.
Do give it a try (don't have to do it for life, just for like 3 months* or so) - I think it'll be worth it.
Estimations and intuitions are never that accurate compare to cold hard facts.
For example, I now know that 1 month of salary can roughly last me 6 months. From that, you can estimate how long your "emergency funds" can last you if you lose your job. Isn't that not only interesting, but extremely useful?
*Note: The more months you do it, the more accurate it'll be!
It's really interesting once you get a substantial list of data, when you can start answering questions like: How much money are you spending on average on breakfast/lunch/dinner? How long can a month salary last based on your expenditures?
These insights into data... It's sort of like personal Business Intelligence! (My field)
...
It was EXTREMELY PAINFUL when I first started doing it, but I'm glad I managed to persevere and churned out half a year worth of data.
I've decided to omit all "major purchases", since they'll mess up what I really want to know - how much is my basic regular expenses.
Do give it a try (don't have to do it for life, just for like 3 months* or so) - I think it'll be worth it.
Estimations and intuitions are never that accurate compare to cold hard facts.
For example, I now know that 1 month of salary can roughly last me 6 months. From that, you can estimate how long your "emergency funds" can last you if you lose your job. Isn't that not only interesting, but extremely useful?
*Note: The more months you do it, the more accurate it'll be!
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