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Investment Moats Portfolio Update September 2012

The market is putting people to sleep. I just don’t see much changes in earnings that shows earnings will improve in a meaningful way. The dividend stocks have been doing ok but I am not adding much.

If I am adding its just that I am familiar with them and are edging in from the technical perspective and NOT because they present a huge margin of safety.

This means that I would have exited when I see a good profit can be realized or that there is a sniff of danger.

Now is a good time not to be too itchy fingers. A low yield environment makes equity look more attractive than debts.

Transactions Since Last Update

There are not much transactions other than increase purchases in China Merchant Pacific. I sold off SPH and M1 again when I see a good profit can be realize for stocks that do not offer much safety.

I took partial profit on Starhub and Singtel as a discipline approach when I see that the price seems overshooting any form of business changes that they can make to cause such a change in value.

Current List of SGX Listed Stocks

I am still holding on to most of my holdings.  Am not compelled to add to them seeing that the spread to long term government bond spread has narrowed.

Current List of International Stocks

I am more inclined to add on to Vodafone on signs of weakness as well as VXX and GLD. I realize some losses on my VXX. Still will trade it as I see such a cheap insurance against a large jump in volatility. Volatility is really low now (but can remain low for a long time)

Things I might be interested in

Here are some ideas. It doesn’t mean I will take action but things that appear in my head that needs development.

Dividend Season soon in November, US election in November, I could probably get some yield boost if some of the stable REITs show weakness. Ascendas REIT always looks like a prime candidate for me.

Neratel is a high yielder that is back in the market. I always like the yield, just don’t think there is an edge in a systems integrator that can sustain a high yield for long. But hell, it did pay out really well in 2000s, so what am I missing

Sarin have come down a fair bit. Perhaps due to Rupee weakness then again they are being paid in USD. If they are not losing their edge then they should do ok. But have they learnt from the GFC?

PICO listed on HKSE is somewhat in the same business as Kingsmen but provides a better yield although with a higher payout ratio. That could be something worth looking in.

Singapore Dividend Portfolio Yield on Cost: 7.78%
Singapore Growth Portfolio Yield on Cost:  5.24%
International Dividend Portfolio Yield on Cost: 5.38%

You can always follow my portfolio over here at my Stock Portfolio Tracker. Its pretty neat to track stocks based on transactions that you intend to hold for long time. And its free.

Kyith

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oceanuz

Monday 17th of September 2012

Thanks for sharing, Drizzt.

ocz

Anthony Wu

Sunday 16th of September 2012

the current money printing QE3 is a desperate move by Ben Bernanke for lacking another choice. I think he is under pressure from Obama to make the market look better before he goes for the election. Money printing is always a crazy approach. However, we are in a crazy world.

Drizzt

Sunday 16th of September 2012

could be true but this may just ignite the market inflation wise.

Anthony Wu

Friday 14th of September 2012

Hi Drizzt, You agree the fiscal cliff is an issue. Though it looks far away from us, if that really happense, we will be affected. According to some American economists, they are living in a fool's paradise. The just announced QE3 reinforces that, and will make things worse. If the Yankees are able to 'rein in the horse before the cliff', God bless us. If not, the Asian economy will be dragged by the 'falling horse'. What do you think we should do? Sit tight? Anthony

Drizzt

Saturday 15th of September 2012

Hi anthony, you should view Ray Dalio's recent video.i will put it up later. The thing is that we are all thinking all american politicians will take foolish actions. Judging by the runs this year, i doubt anyone last year at this time predicted this. Printing money will bring about redistribution, and writing down debts but it depends on how money is use.

Use correctly and it could be another 1982.

Anthony Wu

Thursday 13th of September 2012

Hi Drizzt, You should start to consider the 'fiscal cliff' in the USA. It is looming large. Many say it is pretty dangerous and uncertain. Anthony

Drizzt

Thursday 13th of September 2012

yes that is an issue Anthony. the expiry bush tax is also a big problem

oceanuz

Wednesday 12th of September 2012

Hi Drizzt, I'm wondering how to get those low transaction fee. Do you mind to share?

Thanks ocz

Drizzt

Wednesday 12th of September 2012

Hi oceanuz,

I am using Standard Chartered Online Trading. It is a nominee type of account and no minimum commission.

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