Wednesday, May 31, 2017

Did Financials Out-perform REITS ? (Round 1)

I had posted about an ST article saying Financials favoured over REITS, a few months back.

The link to the old article is below.


My take then that chances are that this call by "Experts" was a case of performance chasing.

My investment hypothesis is that financials will not outperform REITS.

Hence the evaluation was to examine the performance of this portfolio against the three banks at periodic intervals to evaluate whether this call was correct.


I created a mock SPH REIT Index Portfolio for 100K SGD.

About four months have passed since the article.

Hence, I pulled up the performance till End April 2017.

Simply put, do not believe "Experts".

REITS have out-performed Financials.

Of course, this could mean nothing.

Financials may or may not out-perform REITS in the long run, short - term or medium term.

But, that will only be evident or obvious in hind-sight. 

I do not know the future, neither do you and probably, neither do the "Experts". 

Full Disclosure : I have a small position in Keppel REIT and Cache Logistics Trust.

Disclaimer :- 

I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.Nothing written here is an invitation to buy or sell any particular stock.At most, I am handing out an educated guess as to what the markets may do.The market will always find a new way to make a fool out of me (and maybe, even you!).Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.


I am not immune to that, so please understand that any past success of mine will probably be followed by failures 

Sunday, May 14, 2017

One Ratio to rule them all - Update on the Low EV / EBITDA portfolio

I had done a post on a low enterprise value ebitda portfolio for Singapore.

Details are there at this link


The original investment hypothesis was that

a) This portfolio will outperform the market
b) It will exhibit lower volatility and draw-down.

I wanted to check how this portfolio is holding up.
The portfolio is amazing as it significantly outperforms and shows lower volatility and lower draw-down.


It is amazingly up by 23%, while the benchmark STI ETF is up 18%.


That is 5% out-performance in the last year plus.

Full Disclosure : I own positions in BRC.

Disclaimer :- 

I am not an investment professional.

I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.

Nothing written here is an invitation to buy or sell any particular stock.

At most, I am handing out an educated guess as to what the markets may do.

The market will always find a new way to make a fool out of me (and maybe, even you!).

Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.

I am not immune to that, so please understand that any past success of mine will probably be followed by failures