Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,800/month.

Thursday, August 18, 2011

New Purchases of Cambridge Industrial Trust and FCOT

After pondering through what happened over these two weeks, I have come to a conclusion that the sell-off which I did was right and wrong at the same time.

It was wrong because I did panic selling without analyzing the situation. The memories of 2008/2009 haunted me and caused me to make the decision. Frankly speaking, this has affected my confidence.

It was right because it gives me a chance to restructure my portfolio which I have done today. It allows me to refocus on the type of portfolio which I really wanted.

I have made two purchases today: 50,000 shares on Cambridge Industrial Trust (which I sold earlier) at $0.475. I figure out that I would have at least 10% yield next year plus it trades at a discount to NAV. It fulfils all my criterias. Next is 20,000 shares FCOT at $0.82, which is not quite fulfills my criteria because it is trading at an estimated 7.3% yield. I have been reading reports on this and found this greatly undervalued. Its yield would increase to near 8% next year plus it is trading at nearly 40% discount to NAV. Moreover, it is reported that it might redevelop a property which I thought was a positive news.

I have been reading this book called "The Winning Investment Habits of Warren Buffet & George Soros" which continues to provide me insights about my investment strategy. As I was typing this post, DJIA has just dropped another 400 pts. I wonder whether I am making the right decision and still wondering when I read this book about the seven deadly investment sins.

While I still believe that I have bought too early and denied myself a "Margin of Safety" (Using terms from the book), I should be looking at long-term i.e. investment horizon of at least 5 years. I have did that before and it has worked for me very well especially on how I actually ride through the 2008 crisis where I held on tightly and eventually recover by the end of 2010.

Still learning... From experience and mistakes... Feeling downed, unsure of my own philosophy but at the same time, trying to learn as much as I can, and trying to gain confidence.

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