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Showing posts from August, 2010

REIT - Better than bond and FD for capital protection

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After study the rich's portfolio, noticed that they allocate about 20% of their wealth in REIT and 30% in bonds. I would think that it's safe to divest the bond's part into REIT, spread into all types of REITs. The purpose is to further diversify the risk, a particular REIT's actually already diversify into many properties, now we just play safe by investing in all types of REITs, such as retail, residential, healthcare, office, industrial...   What happen when interest rate increase? Bond price will go down if interest rate increase. Same will apply for REIT, however, most of the time, rental will increase in every 3 to 4 years. This partially offset the negative impact of interest rate high, though cost of financing will increase. It would be a good opportunity to buy good Reit with best price.  (Actually due to inflation, most of REITs will increase in value every year, hence quite rare can buy REIT at cheap price, if so happen, it's a bonuses) Why

Millionaire's portfolio

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According to latest's world wealth report, the rich (with asset more than 1 million) had their average allocation of asset as follow:  Stock 29% Bonds 29% Cash 17% REIT 20% Others 5% The rich seem are not risk taker but rather looking for stable income. What do you think about your investment style today, perhaps we should take a look the millionaire in the mirror.

Coconut Water

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Coconut Water contains  organic compounds  possessing healthy growth promoting properties that have been known to help: Keep the body cool and at the proper temperature Orally re-hydrate your body, it is an all natural isotonic beverage Carry nutrients and oxygen to cells Naturally replenish your body's fluids after exercising Raise your metabolism Promote weight loss Boost your immune system Detoxify and fight viruses Cleanse your digestive tract Control diabetes  Low in Carbs    99% Fat Free    Low in sugars Aid your body in fighting viruses that cause the flu, herpes, and AIDS Balance your PH and reduce risk of cancer Treat kidney and urethral stones Boost poor circulation

Trader talk

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Since the end of  World Cup, the local market started to go up. Currently, the market is entering the phase of Trading stage, many investors had became traders, a sign where market move to high side. Trader is someone who try to take advantage of market movement. Trader (he is not an investor), who buy and sell shares using technical strategy, normally buy when a counter start to show bullish sign and ride on the up trend until it started to slow or at early stage of down trend. Everyday, trader will run a program (usually with certain indicator and scan by computer) to find out those counters which can be trade. Cut loss is one of the most important rule a trader follow. When everyone expect something is supposed to go up but does not, it usually will go down. There's why if your remisier or friends tell you a stock will go up because of so and so (many reasons), but they do not go up, you better run first and normally it will go down. Trader will sell the stock even face with l

Investing - think like rich

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Investing is a process of building wealth. In stock market, many think that investing is try to buy low and sell high. Those try to buy low and sell high, we call them trader (or speculator) but not investor. There's nothing wrong to buy low and sell high (be a trader), as long as you can make money, who cares,  but this is not the right concept for investor. Investing should be buying an asset or business that can generate stable income. The famous investor, Warren Buffer, became billionaire by investing in good and monopoly company. Let's take a look at local millionaire, do you see Genting or Public Bank's owner sell their business today and buy back tomorrow and sell again next week? No matter how high or low the share price, they are doing nothing with their share holding. As they know their company will keep on growing and business will expand every year, why bother about their share price. Some of my friends came and ask me to recommend some good stock for inves

Malaysia REIT report

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Our Malaysia REIT portfolio since Jun 2009 have outperformed the long term FD rate in the market. The portfolio start with $100,000, during the year, we have received dividend of $8977, represent about 8% after deducted tax. We were target only to obtain stable income of slightly more than FD, but it came to our surprised, included unrealized profit of $23,000, the return is more than 30%. If we decided to sell all the holding today, we will have the total cash of $132,000. Two new REIT listed on bursa last month, i.e. CMMT and SunREIT. We use the cash received from dividend to purchase some new shares. Though the expected dividend from these newly listed REITs are not as good as our existing holding (we expect about 7.2% return on dividend for CMMT and SunREIT) but for purpose of diversify and reduce the risk of buying too many unit in one REIT, we purchase some new shares. Since listing, CMMT done at the lowest price of RM0.975 and SunReit lowest at RM0.875. We could not buy at th