Einstein says "compounding is the 8th wonder ofthe world! He who knows it enjoys it while he who doesn't know it looses it". This is also cited by Warren Buffett in an interview on how he grows his wealth. Take a chess board 8x8 square and put one grain of rice on the first square then for every subsequent square DOUBLE the amount. 1,2,4,8,16,32,64, ... etc How much would you haveat the end of 64 squares? What is the final number? Is it 1 million? 1 billion? 1 trillion? No! The answer is 18 quintillion! That is a massive amount! THAT IS THE TRUE POWER OF COMPOUNDING!

Where do I begin? There is so much to share for 1st quarter of 2023. 1. Investment objectives During periods of uncertainty, it is always important to fall back to your basics. As for me, with cash lying around I could do 2 things: 1) put it in the bank and earn 2.5-3.5% per annum or put it in bank shares that yield max 5.5% dividend per year as of this writing. With these 2 options put side by side, I went on to buy bank shares. Learning the power of compounding (1,2,4,8,16,32,64,128…131072, 262144,524288,1048576…) and studying some investors out there who have concentrated portfolio of less than 5 stocks, I went on to buy bank shares and compound it. Referencing to what Charlie Munger says “ I don’t care how you make it but you must make your first $100,000 and invest it”. With this in

Many times, dividends are overlooked when it comes to investing. People often chase growth and forget about dividends. But what if dividends can save you in uncertain periods and protect your portfolio, what would you do? Below I list a few reasons why investors should also add dividend stocks to their portfolios. 1. Dividend-paying companies have strong balance sheets and free cash flow statements. For the companies to pay dividends to their shareholders, they need to generate cash from somewhere in their day-to-day business operations. Only when the company has determined that they have a very sound and strong free cash flow, in which they have nowhere else to deploy the capital as of now will they distribute the extra to the shareholders in dividends. 2. Companies that pay out dividen

Market crashes are part and parcel of economic cycles. What should investors do to prepare for market crashes? Investors should first and foremost prepare cash on hand. What I mean by that is that they should prepare emergency funds. This would be amounts that are set aside for daily expenditure and necessities. Most people would say to set aside 3-6 months of cash but personally, I would recommend 9-12 months of emergency funds. This is because when a market crashes, no one knows how long and deep it would take for the market to recover. From history, we can learn that the worst market crash was back in 1929, the great depression, where the time taken for the market to recover was 25 years. For investors who still want to invest into the markets, expect that whatever investment that you

Market corrections and recessions don’t happen very often, every investor knows that. Just like what Warren Buffett, the richest investor who has survived more than 8 market cycles, says, “When it rains gold, put out a bucket and not a thimble”. The question is what would you do when the market presents itself to you? Do not panic when you see the price of your holdings decrease in value When a correction or recession comes, investors in the market panic as they see their holdings decrease in value. When they panic, many thoughts race through their minds and they start to think if they should sell their shares; and eventually most of them sell it off at a loss, thinking that a decrease in share price is actually telling them something about the stock. This is because the emotion of FEAR ha

Volatility can be your friend or foe. Looking into SG stocks give a sense of stability and assurance.It never hurts to fortify your portfolio with stable stocks that you can rely on. For example, the banks which make up majority of the pillar for the economy have mixed so far. OCBC the leader of the pax has delivered 3.27% gain as of this writing. UOB has dished out a -2.25% and DBS has given -1.83%. People tend to chase the shiny objects. When the share price goes up, they have the tendency to buy more and increase their holdings. Likewise can be said. When the share price goes down, they can’t stand the losses and therefore keep averaging down. But there is another group who patiently sit and wait for the prices to move to their buy or they go for the objects that people dislike or hate.

$Tiger Brokers(TIGR)$  Where do I begin? There is so much to share for 1st quarter of 2023. 1. Investment objectives During periods of uncertainty, it is always important to fall back to your basics. As for me, with cash lying around I could do 2 things: 1) put it in the bank and earn 2.5-3.5% per annum or put it in bank shares that yield max 5.5% dividend per year as of this writing. With these 2 options put side by side, I went on to buy bank shares. Learning the power of compounding (1,2,4,8,16,32,64,128…131072, 262144,524288,1048576…) and studying some investors out there who have concentrated portfolio of less than 5 stocks, I went on to buy bank shares and compound it. Referencing to what Charlie Munger says “ I don’t care how you make

When it comes to investing in equities, emotions always get into people's way. When the price goes up, people FOMO (Fear Of Missing Out) and they buy it, but when the prices drop, people get nervous and panic sell.  One of the key lesson that can be learned from Warren Buffett "Be greedy when others are fearful and be fearful when others are greedy!". Just by using this one quote, you can make profits even when everyone is in losses. Looking back on hind sight at the stock prices for certain companies, I wished I have loaded up more shares, but was to afraid to. Now I am kicking myself to not have added in more positions while seeing the prices go up. Through this, it has taught me to not be FOMO and jump in as of now but wait for the correct time and sit on a cash pile that is i

With uncertain times ahead, a move to defensive companies is the way to go from here. Companies that are defensive in nature are necessities regardless of where the economy is going. People need them no matter what is happening. Therefore, the share price of the company would continue to do well even in uncertain times like now. For example, companies like Proctor and Gamble(PG), Johnson and Johnson (J&J) and Coca Cola (KO), all have been steadily going up these past few weeks. Why is that the case? It is because these companies provide goods and services that people need regardless of whether there is a recession or an inflationary period. So, although the mega cap stocks like those in the technology sector falling from the all time highs, there are gems

When it comes to investing in equities, emotions always get into people's way. When the price goes up, people FOMO (Fear Of Missing Out) and they buy it, but when the prices drop, people get nervous and panic sell.  One of the key lesson that can be learned from Warren Buffett "Be greedy when others are fearful and be fearful when others are greedy!". Just by using this one quote, you can make profits even when everyone is in losses. Looking back on hind sight at the stock prices for certain companies, I wished I have loaded up more shares, but was to afraid to. Now I am kicking myself to not have added in more positions while seeing the prices go up. Through this, it has taught me to not be FOMO and jump in as of now but wait for the correct time and sit on a cash pile that is i