Tuesday, April 4, 2017

My Oversea Investments

If you had read my blog, you will have read in my previous posts that I had engaged in investing in the US and HK stock market.

However, I have yet to explain or even write about these investments. So this will be my first post on my overseas investment.

Why did I engage in Overseas Investment?

My interest in overseas investment started while I traveled to US and Hong Kong during my last 2 overseas trips.

Although traveling overseas were meant to be for leisure, but due to my interest in investing, I tried to understand how the business were conducted in US and Hong Kong during these trips.

In the past, I was very skeptical about investing in overseas markets, especially after all those S-chip scandals. But traveling to these countries made me understand how each economy is being supported and there are genuine honest businesses in these countries as well. Thus, these thoughts gave me the comfort of investing in overseas market.

Anyway I had decided to invest in US and Hong Kong for only 1 year and with only limited funds. The main purpose is to track my performance and gain as much experience as possible before things move into full swing next year.

US stock market

After coming back from the trip, I decided to invest in the US stock market. I took 1 whole month to try to understand the financials and how the US stock market works.

Some of the pointers are:
- Value Investing works in US but you may need to wait for a long while. But I am only looking at 1 year.
- With the US stock market on a bull run, many of the companies have already rise significantly.
- Whatever "value" counters left behind seems to be value traps. Most of these counters will require quite a lot of GUTS to invest.
- Since Donald Trump has won, his policies will have some impact on the market.

With that, I will announce the 3 counters (with a short write up) that I invest in within the US stock market...

The first counter - The Walt Disney Company

Buying this counter was easier. I went to Disneyland in Florida and the visitors seems to be never-ending even during weekdays. In addition, there is Marvel, Star Wars, Beauty and The Beast, Jungle Book and all those cartoons. What's there to think about?

The second counter - Textron

This counter is purchase mainly due to the expected increase in Donald Trump's defense budget. However, this purchase is hinged on US Congress passing the budget.

The third counter - VASCO Data Security International, Inc.

Internet security is an important segment in today's market. The recent online cyber attacks should assist VASCO in getting more business. Nevertheless, VASCO is chosen due to its lower share price and the company having customers in globally (including Singapore).

As per above, most of these investment did not have any relation with numbers. Regardless, these are genuinely companies with reasonable accepted fundamentals. But I believe investing in the current US stock market cannot be based solely on numbers. It must be have a catalyst in place to boost its future revenue. 

Hong Kong stock market

My traveling in Hong Kong led to believe that its economy is very much similar to Singapore. Similar examples includes expensive properties, shopping/food haven, reclaim land, financial hub and highER population density.

Furthermore, after reviewing the counters in the Hong Kong stock market, I realize that many of these Hong Kong listed firms have their factories in China. This is very similar to Singapore listed firms having their factories in Malaysia or Thailand.

With so many similarities between Singapore and Hong Kong, I decided to use my Super Scorecard as a tool for me to find companies in Hong Kong to invest in.

So far, I have just purchase 1 counter in the Hong Kong stock market - But I will leave that to another post in future.

Please do your own due diligence before you invest in any of the stocks above. 

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

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