Feb 9, 2012

Fresh And New Investment Year

Hi, I'm back.

My last blogging was in August 2011 and did not update for a pretty while. This is because I have landed on a new job and it requires my full attention at that period of time. But now things are settling down, so I have some personal time to continue with my blogging on my investment journey.

It has been a dramatic change since my last blogging - 
  1. PST is delisted
  2. FSL has a huge cut in DPU
  3. AimsAmpReit has undergone a share consolidation
These unexpected events (at least for me) will have great impact on my goal and dream to arrive at a sustainable and consistent income stream to finally achieve my financial freedom.

This put me into thinking recently, while watching events unfolding themselves, what have I done correctly or incorrectly? What can be done to ensure a more predictable Average Monthly Dividend Achievement (AMDA) for myself?  I am going back to the basic to find out the answer.

Take for an example, I happen to come across one blogger, Musicwhiz, who has had divested his holding in as early as 3rd August 2010 at an average price of S$0.41125. His reason for divesting was purely based on his fundamental analysis of the company that it has unsustainable business model. Fast forward to today, on hind sight, he is right about it! This leads me to re-think my investment methodology  and realize I should not chase for risky high-dividend yield, because like everything else, there is a price tag for what it is.

With this in mind, I will want to ensure my future purchase of any stock to meet the following criteria:

  1. Reasonable fundamental analysis using value investing method
  2. Continue to buy only companies that are paying consistent and sustainable dividends
  3. Avoid super high-yield candidates, medium ones that are giving 3 ~ 5% yield are acceptable
The above criteria is not still not finalized or crystallized yet because I still have other ideas in mind which I shall share with you at a later part.

At the moment, I am sorting the records I have been missing out during the period from my last update till now. I will publish them once it has been done.

Last but not least, if you happen to drop by this blog, I want to wish you great fortune and great health in this new fresh year!

Sign off with best regards.