may i clarify that the reason you advocate using traditional brokerage is more of encouraging self discipline and avoid being swayed by marketing gimmicks? in terms of receiving the actual dividends and any corporate actions, is there a difference between traditional brokerages and discounted ones?
Hi Josh, many thanks for your generous sharing of your personal investment. I learn a lot from all your examples and case studies. I hope you don't mind me asking a question and it is asked with a lot of respect of your financial knowledge. The amount invested, time spend to pick the right stock, given your financial savviness, I think you would surely be able to generate higher returns using other instruments? Could you share your thots on why park so much investment in dividends returns?
Previously I tried setting up a small business. Effort wise higher and risk way higher. I believe it’s the best place for long term returns. It’s easy to overestimate return rate of other opportunities. Like the grass greener theory. Cya around k 👌🏻
Investing in SG Dividend stocks is really a very powerful strategy that a lot of people don't realize, especially when you consider it's "Tax Exempt". US Divided stock investing doesn't even come close (most people still laugh at investing in SG stocks). A possible hybrid strategy could be to reinvest the dividend income into US growth stocks (DCA style), and then reinvest the capital gains back into SG dividend stocks (and repeat). But of course, that's quite an advanced topic...
I also face that problem. I own abit of kingmen creative which I bought long time back and its deep in red. Guess my best answer is, if the amount is small, forget it. Or just sell it and move on. Its not going to move the needle whether it goes up or down- focus on income if the amount is big, its a good lesson. Think at this price would you buy it for sure? If answer is not yes, cutting losses and undo it needs to be strongly considered Hope it helps =)
Investing for capital growth requires 3 questions to be answered - What to buy, when to buy & when to sell. The monitoring (repeat of these 3 questions) varies from months to hours. Also the consequences of buying and selling grows as the portfolio gets bigger (ie it gets harder to decide if & when to dispose and repurchase the entire counter). With dividend investing you only need to answer 2 questions- What to buy & when.
The starting small concept will always be with me. Simply... I don't have so much fresh funds to go big at once and I don't horde cash to do so. I will treat each purchase on its own merit, whether it is a new counter or an add-on. So that few hundred in dividends add on will just accumulate with whatever existing and before one knows it, its quite sizeable.
Thanks for this very useful video. Could you please talk about ETFs like Lion Philip's CLR that also holds the above REITS and seem to be giving a yield of ~5%.
I apologize for asking a question. The goal of investing is to make money, and to achieve that, one must take profits by closing all paper profits and depositing the money in their bank account. My question is, have you ever considered when you will be taking profits or how long your investment horizon is? Additionally, have you thought about the possibility of a financial crisis wiping out most of your profits and prolonging your investment horizon by another 5-10 years?
I can answer that. The wealth game is built on owning assets. Removing the focus on taking profits or value of the profits and compound with time is important to succeed. It will get to a point so far from the original purchasing value with compounding
Thank you for sharing your insights. I believe we are from the same generation, having been born in the 1980s. During the 2007-2008 period, I witnessed numerous investors losing their "paper fortunes" because they were advised by their brokers to buy and hold, without understanding when or why they should take profits. At that time, brokers were still used to place orders. When the MBS (Subprime mortgage crisis) made headlines in the mainstream media, most or all brokers reassured their clients (young adults and retirees) to hold their positions, claiming that it was just a correction. Some brokers even encouraged their clients to buy more (during the first half of 2008) to average down their portfolios. However, the market continued to fall by another 50% over the next year, wiping out any paper profits from the previous 10-12 years. Nevertheless, I agree with you on the philosophy of long-term investing in the financial market (buy, hold, and compound over time). However, it is also important to consider the market cycle as a reference point (peak, trough). Have a great weekend Josh
I kaypoh a bit & answer Andrew’s query about financial crisis. The fact is financial crisis is difficult even impossible to predict. Example the Covid pandemic. Even recently, many experts are predicting a major crash. I know of some ‘experts’ who totally liquidated their stocks in anticipation of a major crash expected Q3 or Q4. I have stayed invested through a few major financial crises and I noticed 2 things. Firstly, my weaker stocks got pummelled and some went totally worthless. Secondly, my better investments also got pummelled but rebounded so strongly afterwards that overall, I look like Warren Buffet. But the question is can you time it so well to exit just before a crash and re-enter as it begin to rally? Much older now, financial crisis doesn’t faze me and I actually look forward to the next financial crisis to pick up good stocks at cheap price. The pandemic was one such event that I am grateful for in the financial sense. So my response is really stay invested for the long term with good stocks and you can’t go wrong very much 😂
Dividends are a way to make money. You don’t only profit by selling stocks. If that income stream were to suddenly and permanently disappear due to some crisis, we’ve got bigger problems to worry about.
In SG, realistically, there are only 4 passive income streams ie CPF interest (after 55), property rental income, dividends from shares and CPF LIFE (after 65). It's up to individuals on which income streams the person will bank on for retirement
Don’t worry about best. Start w something u are familiar and comfortable. Focus is on increase that investment from $10k to $100k into something good enough
I thought about it. I believe it is better to not be specific because the focus will be too much on the names rather than the process which is in the nuggets of wisdom segment
Depend your age..must be thinking that 105k decades ago is big, today small fly due to inflation..using half of 105k able enter small property..u could have catch the rising waves..make few 100k..even don’t sell, monthly rental is good money ..that money sit there do nothing
Great video! Very educational, especially the points about having lots of patience and not getting excited by the 'next shiny object'. Was also mocked by others for my dividend investing strategy in Singapore stocks. I'm the tortoise that is still in the race :)
Ya I saw. If price moves after results, it's usually justified with missing or beating earnings expectations. But not what we need to believe One is that, in the reporting, something damaging was fundamentally disclosed where the impact can now be finally measured. Assumptions of the business may need to be changed VS the other which is market analyst expectations in short term not met. Their expectations need not be our expectations. One is new risk the other is noise. Hope it answers
