Monday, August 27, 2018

A Thank You Post

This dedicated post is for those that went over to support Simple Investor and I at Invest Fair!

It was a great success! Thank you for coming!

Feedback from the crowd are taken seriously. Simple Investor and I will continue to improve in order to provide the best for subscribers.

Anyway, interestingly, this event also open my eyes to the 4 different group of investors.

1. The Informed Ones

There are many uncles out there who just invest in REITs and dividend-paying stocks. They explained to me, because of their age, they just want to collect dividends.

I am not against this way of investing. But in my opinion, it will be still good to diversify 10% or even up to 20% of your portfolio in other companies.

2. The Newbies 

There were also many people who want to learn to invest or want to invest. Some were at a loss and do not know where to start - probably downloading the InvestingNote app is a good 1st step.

Others probably needed more help in terms of looking at financial data and I believe signing up for our Moat Scorecard system will assist them in this area.

3. The "Portfolio Already Very Full" ones

The summary of this group is "相见太晚". I had spoken to some of the investors whom are in this group. They have probably 30 to 40 companies in his portfolio because "my broker recommend this and that" or "I saw or heard this guy talking about this company". At the end of the day, I am unable to fully assist these investors without understanding what companies they are holding. But the first step for you is probably - Cut away those excess positions and stop hoping.

4. The Investors of US-Listed Companies

Many have asked us whether we provide the same system for US-Listed Companies. After all, the term "economic moat" is popularized by Warren Buffett. This will probably take some time. But don't worry, we are looking into it!

Image taken from
Once again, thank you for coming and spending your time in listening to us explain about Moat Scorecard!

We will also like to thank InvestingNote for allowing us to present at the Invest Fair.

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

Friday, August 24, 2018

My Long Term Returns

This will be some sort of revelations for on my portfolio.

I had never really documented down my long term returns as compared to the market. But while calculating today, I just felt maybe it will be good to put on the record of my past returns till 25 Dec 2017.

Why 25 Dec 2017? If many of you remembered, I restarted my portfolio on 26 Dec 2018. So from then on, the calculation restarted as well.

Before I continue, I like to inform my readers that Simple Investor SG and I will be presenting our latest scorecard system at Invest Fair at Suntec tomorrow (25 Aug 2018) within the InvestingNote booth at 11am and 3pm. If you cannot make it for that timing, Don't Worry. We will still be there between 10am to 5pm on Saturday.

Back to the main topic...

In the past, I had 4 different portfolios to test out different strategies over different period of time. Thus, I will compare my long term returns (including dividend) against that of buying a STI ETF over a similar period.

Do note the following:

1. Share prices of STI ETF is taken from Yahoo Finance
2. Dividend declared for STI ETF is taken from SGX website.
3. Returns = [A-B+Sum of all dividend accumulated during that period]/B

Portfolio A - Period [1/4/2011 to 25/12/2017 - 6 years 8 months]

Portfolio A Returns - 44.82%
STI ETF Returns - 28.29%

Portfolio B - Period [1/11/2014 to 25/12/2017 - 3 years 1 month]

Portfolio B Returns - 18.62%
STI ETF Returns - 13.02%

Portfolio C - Period [1/4/2015 to 25/12/2017 - 2 years 8 months]

Portfolio C Returns - 32.38%
STI ETF Returns - 7.35%

Portfolio D - Period [1/8/2015 to 25/12/2017 - 2 years 4 months]

Portfolio D Returns - 18.58%
STI ETF Returns - 11.78%

Prior to concluding, I must stress that my returns are not fantastic. I have known retail investors whom have did so much better than me over similar period of time. But I am just glad I had at least outperformed the market despite which strategy I choose.

In Short

From the above returns, it seems that whichever strategy I took, my compounded gains were much higher than investors whom purchased the STI ETF (including dividends), if calculated over a period of more than 2 years.

This, again, emphasize on the importance of investing for the long term and also choosing the correct company to invest in at the right share price (not necessary required to be at the right time).

Nevertheless, I am not downplaying the strategy of investing in STI ETF. I had also told friends to invest in STI ETF if they are worried about which company to choose to invest in.

Then again, I have also told them they can sign up for the Moat Scorecard system in assisting them to choose the right company at the right price.

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

Thursday, August 23, 2018

A Collaboration with InvestingNote

It has been another 7 to 8 days since I blogged.

Firstly, I didn't do so well at the SGX Bull Charge Stock Challenger. It seems that trading is the way to go. But never mind, I am not disappointed. Since I am never/yet to be at the leader-board, let me show you what I bought.

Anyway, I did think about it - I could possibly liquidate some and buy AEM for example. But I guess I just want to stay true on my strategy and theory. Oh well, as per Benjamin Graham said, "In the short run, the market is a voting machine but in the long run, it is a weighing machine."

So lets go back to the main topic...

Remember the collaboration I was talking about when I complained "Time not enough"?

Yes... at last, Simple Investor and I had launched our collaboration with InvestingNote after several months of discussion!

Its called "Moat Scorecard"!

It is basically a scorecard theory where we quantify moats of over 600+ companies within SGX.

Each company will have a report as per the picture below:

In short, Moat Scorecard is a report that measure a business’ moat in terms of strength, durability and trend. In addition, it compares the score with companies in the same industry, and provides an analysis of the company’s fundamentals. These includes balance sheet strength, share dilution and financial strength. There is also a handy guide for price analysis using various methodology, with an share price indicated where value would likely be present.

As per Warren Buffett had said, "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

If you like to know more about it, click here for more information.

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

Wednesday, August 15, 2018

Let's Try Our Best!

Update: Due to 2 of my choices' share price are less than 20 cents (1 of them being the unstated new Big Idea), they are not part of the stock list. Instead, I will substitute them with 2 other Big Ideas that seem to be on a downtrend.

I had joined SGX Bull Charge Stock Challenge competition, which will start tomorrow.

Image Taken From InvestingNote
Although I have stated previously that I will just join for fun and doubt that I will win, but since I have registered, I decided that I should just try my best.

But how should a long term investor be investing for just 2.5 months?

My Strategy:

Firstly, I will still be sticking to my Big Ideas Investing Theory strategy. This is because I don't think an investor can change their strategy in such a short time.

Furthermore, if I purposely change my strategy just to suit this competition, I feel I will be "cheating" myself and my readers.

Secondly, having already released my 9 Big Ideas and, out of the 9 Big Ideas, 3 of them will be releasing their full year report during this competition period. Thus, I will be investing in these 3 Big Ideas for this competition. If the results are great, it will be allow the share price to rise significantly.

Thirdly I will also be investing in a 4th company for the competition. This is a company which I had long invested in but only deem it as a Big Idea recently. So if you follow me on this competition, you will then know which company is this new Big Idea.

Lastly I will break the $50k evenly into the 4 Big Ideas. Thus, if any of the 4 Big Ideas performs badly, my portfolio will not drop significantly.

In Short

With this strategy, I hope I will not linger at the bottom of leadership board.

Do note that this 4 companies currently contribute about 24% of my actual portfolio. If the above strategy perform well, it will also do good for my actual portfolio.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

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

Sunday, August 12, 2018

Update For My Readers

There is just not enough time for the roles that I am currently taking on – Blogger, Co-founder of Fundamental Scorecard and Investor/Fund Manager.

Furthermore, I will also be working in a new fintech environment next month. With this change, I am trying to catch up on my reading to gain more knowledge in this new area. This is a new challenge for me and I am really looking forward to it.

And… I will also be having a new collaboration soon!

With limited resources (time), I seem to be too diversified - similar to my past portfolio. With each additional role, less time is spent in the previous role, resulting in producing lower quality "products".

If I want to improve, I will need to be more focus.

With this new perspective, I decided that I will be putting more effort towards my Fundamental Scorecard subscribers as well as on the new collaboration that I am working on. (For the new offerings, I guess only the subscribers will eventually know.)


Basically, what I intend to do is that I will be writing around 4 articles maximum a month (Currently, I try to write 6 to 8 articles a month), which will then give me more time to do research. I hope this will eventually translate to better quality articles. 

Eventually I hope you will still benefit from my sharing and continue to "waste" you time here wisely.

Thank you for reading.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

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

Sunday, August 5, 2018

My Faith Has Paid Off

Today, I will like to talk about my holding in Quarterhill Inc.

Before I continue on the main topic, I like to inform the readers that I will be joining the SGX Bull Charge Stock Challenge. Although I maybe putting my reputation on the line, and I will most probably lose as the tracking period is only 2.5 months, but I will just join for the fun of it. I will try my Big Ideas Theory Strategy with a slight tweak for this competition. In view of this, I will probably reveal some of my Big Ideas. Stay tuned!

Image Taken From InvestingNote

Back to Quarterhill Inc...

As per Wikipedia, Quarterhill Inc. (Quarterhill) is formerly known as WiLan Inc., and it is a Canadian public technology holding company, based in Ottawa, Ontario. It was founded in 1992 as a wireless technology company. In the mid-2000s, it gradually transitioned into a patent licensing company. In 2017, it renamed itself Quarterhill, and is attempting to become a holding company specializing in the Internet of Things. It is listed on the Toronto Stock Exchange and NASDAQ.

In summary, Quarterhill share price has been on the downtrend since the start of the year. This is because the earning for the last 2 quarters has been below expectation and huge losses were incurred in the last quarter.

Screenshot from Seekingalpha
When I first purchased this company, it was at a share price of US$1.9+. Over time, I had to average down more than 3 times in order to achieve a much more acceptable share price.

So what has kept my faith in Quarterhill? 

1. Positive Free-Cash-Flow - Despite making losses, the company is still able to generate high amount of Free-Cash-Flow.

2. Strong Balance Sheet With No Debt - Based on its latest financials, the company has a current ratio of over 4.11x and only a gearing ratio of 0.15x without any debt!

3. Margin Of Safety Over Its DCF Valuation - There is significant margin of safety from my calculated DCF Valuation, despite indicating no growth and high discount rate of 20%!

4. Transcript Of Management Discussion - I have gone through the transcript of the management discussion at least 3 times. There are many indications that have showcased the management is positive about its performance this year!

Thus, it was basically the theory of my Ultimate Scorecard as well as my belief in fundamental investing that has kept my faith in the company.

In Short

My faith was duly rewarded recently. The share price have regain and bounced back over 29% due to the following:

Screenshot from Seekingalpha
To sum up, if we invested fundamentally, we should not be worried about the short term changes in the share price. This is because time will eventually show that who is right.

Please do your own due diligence before you invest this counter.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of all the SGX counters now! 

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