I feel stupid as an investor
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Hey, Willie here! Sometimes, I feel stupid as an investor. When I accumulate shares of a company, the prices more often will dip more after. In hindsight, it looked as if I bought my shares too early. Sure, I could have bought at a lower price today, but the thing is: no one could ever "pick the market bottom". And I don’t regret my decisions after I buy my shares. Why? I know the potential value of these companies. I know when not to overpay for them. The thing is, I can’t predict whether the stock market is going up or down... I can’t predict the Fed’s decision or the government 's future policies... Heck, I wouldn’t know how high or low oil prices could go. But I do know of a high potential opportunity when I see one. The problem is, we aren't naturally wired to handle markets up and down well and long enough to see our stocks go up. And it’s normal. Markets bump along from week to week, month to month, year to year. It’s part of investing. What’s crucial is focusing on picking the right business, paying the right price and focusing on the long-term. I see myself as a business owner. And unless businesses I invest in get worse, or if there's a way better business opportunity elsewhere, I'm sticking to my positions. What's crucial is to create your own pockets of order. Stick to a strategy you know. And remain convicted. Sometimes, holding on to great businesses (like what Warren Buffett and Charlie Munger do) – without focusing on short-term price movements – makes a lot more sense. Here's the thing: to accumulate wealth in the long run, we must have the conviction our portfolio will continue to grow. For now, I love to share some of my favourite articles for November:
Sometimes, investing can be simple. Willie Keng, CFA Founder, dividendtitan.com P.S. Like this issue? Click HERE to join other dividend investors reading my DT Compound Letter. I send my regular letters to your inbox. |
Dividend Titan
The bond market is seeking answers. CoreWeave, a major data centre operator saw its shares hit a 52-week low. Its bonds, which were issued in June with a 9.625% yield, have dropped in price. This pushed its yield to around 15% recently. This means, any investors who are buying CoreWeave’s bonds are demanding a 15% return to compensate for its credit risk. I would say this is a canary in the coal mine for its debt-funded AI expansion. The company continues to burn enormous cash. And this data...
I hated what I was about to do. “Ah, darn it.” I took a deep breath before I hit send. It was 2016 and I was a research analyst in a private bank. The report I wrote on the computer screen was glaring back at me: "Sell call" on Nam Cheong. Nam Cheong was one of the market darlings during the oil & gas boom. It built and chartered oil support vessels for big energy companies back then. Nam Cheong bonds sat in many of the private clients' portfolios. It wasn’t a popular call. Within days, my...
Hey, Willie here! With recent interest rate hikes, not all Singapore REITs are worth investing today. I wouldn't be looking at Singapore REITs unless they are trading at a high dividend yield. However, our contributor, KC, wrote his five reasons to be bullish about this Singapore REIT... This is a well-known heartland mall dominator. It owns some of Singapore's iconic malls including Causeway Point, Serangoon NEX, Northpoint City and so on. Despite higher interest rates, the REIT continued to...