paullow portfolio

Question: What would you do for companies who skip a dividend after years of unskipped dividend payment?

Thanks.

(13-12-2014, 11:36 AM)opmi Wrote: Question: What would you do for companies who skip a dividend after years of unskipped dividend payment?

Thanks.

Could u kindly show me an example or two of a company which does that?

Decade long dividends is not enough...it must show a discernible increment trend since we know certain biz are cyclical in nature.

paullow Wrote:Could u kindly show me an example or two of a company which does that? Decade long dividends is not enough...it must show a discernible increment trend since we know certain biz are cyclical in nature.

grateful if u could use the example of Hupsteel to illustrate . Tks.

(13-12-2014, 11:43 AM)paullow Wrote:

(13-12-2014, 11:36 AM)opmi Wrote: Question: What would you do for companies who skip a dividend after years of unskipped dividend payment?

Thanks.

Could u kindly show me an example or two of a company which does that?

Decade long dividends is not enough...it must show a discernible increment trend since we know certain biz are cyclical in nature.

As I am not dividend type of investor, I cannot give u any examples.

Maybe another question: Did the consistent dividends paid or cut any dividends during Asian Financial Crisis, 9/11 and SARS?

Interested to know. Not trying to poke holes.


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hi cp
pls go thru the thread n sgx website for the answers.

hi opmi
no prob. welcome. crises is great as gauge of company strength n to still pay div is clear of that. any skipped dividends shd be look at in depth as to the reason behind. if my boss omits my salary this month, it wld be with the same zeal i'd like to know why then.decide on.best course of action.

I kinda disagree with item 6.........

Investing is a lot of work, "not much time needed" is dangerous IMHO

(14-12-2014, 12:39 PM)newborn1000 Wrote: I kinda disagree with item 6.........

Investing is a lot of work, "not much time needed" is dangerous IMHO

hi there, thanks for your comments, i agree with it with the following points to make:

thus far in my investments, the hardest time was the starting part and was getting to know myself well enough to plan a strategy suitable for myself in my particular circumstances and situation, and the ability to grow my investments from 100k to 1mil.

once this is in place, personally, i find myself taking less and less time to make acceptable and sound investments decisions.

now, it is more of improving and increasing my cash flow while maintaining an adequate and acceptable level of asset protection, and it is not so much of making the right decisions but more of avoiding the wrong decisions, since the wrong decision can prove disastrous and wipe out capital so painstakingly built up.

(14-12-2014, 01:05 PM)paullow Wrote:

(14-12-2014, 12:39 PM)newborn1000 Wrote: I kinda disagree with item 6.........

Investing is a lot of work, "not much time needed" is dangerous IMHO

thus far in my investments, the hardest time was the starting part and was getting to know myself well enough to plan a strategy suitable for myself in my particular circumstances and situation, and the ability to grow my investments from 100k to 1mil.

once this is in place, personally, i find myself taking less and less time to make acceptable and sound investments decisions.

I agree. When I first started investing, it was a steep learning curve. So, I spent more time crafting my portfolio.

However, right now, I find myself spending relatively less time. All I need to do is to do minimal monitoring.

(14-12-2014, 01:05 PM)paullow Wrote:

(14-12-2014, 12:39 PM)newborn1000 Wrote: I kinda disagree with item 6.........

Investing is a lot of work, "not much time needed" is dangerous IMHO

hi there, thanks for your comments, i agree with it with the following points to make:

thus far in my investments, the hardest time was the starting part and was getting to know myself well enough to plan a strategy suitable for myself in my particular circumstances and situation, and the ability to grow my investments from 100k to 1mil.

once this is in place, personally, i find myself taking less and less time to make acceptable and sound investments decisions.

now, it is more of improving and increasing my cash flow while maintaining an adequate and acceptable level of asset protection, and it is not so much of making the right decisions but more of avoiding the wrong decisions, since the wrong decision can prove disastrous and wipe out capital so painstakingly built up.

I reckon the "time/effort needed" and "targeted performance" come in pair, IMHO. Of course, I do agree extra effort needed initially to make sure a suitable strategy and a right mindset on investing.

If "targeted performance" is to beat inflation of 3-5%, it will definitely need lesser time/effort to beat an index performance of 5-10%, and much more time/effort needed to outperform the index by a margin.

The market pays ETF managers in 0.x%, but pays more for active fund managers for a good reason. Of course, I am referring to deserving funds e.g. Yeoman Cap.

Sharing a thought on the topic.

(14-12-2014, 02:28 PM)Dividend Warrior Wrote: However, right now, I find myself spending relatively less time. All I need to do is to do minimal monitoring.

This sounds like a pretty risky strategy and approach, because investing in individual securities does demand quite a bit of attention (to detail) and monitoring. Unless you choose a passive approach by investing in mutual funds (who are paid to do the monitoring, screening and analyzing) or index funds, I'd argue that you cannot take a "laid-back" approach with regards to investing in businesses.

The reason is because there are a myriad of factors which may affect the fortunes of individual businesses, and these are not limited to merely macro-economic factors. A change in Management, industry changes (e.g. shale gas revolution or the introduction of Uber in many cities) are just examples of the world constantly changing, and businesses also change daily and react/adapt to these developments. To do "minimal monitoring" is tantamount to proclaiming "I think I have extreme confidence in the companies I own and I feel the risks are all covered". This to me sounds rather dangerous.

In investing, the most important aspects are the monitoring of risks and the rational (and efficient) allocation of scarce capital. The former is usually sadly neglected (especially in a bull market which we have seen for the last 5 years) and the latter is not always easy as there are so many candidates calling out for our capital. So being more watchful and spending more time on our investments is always a better thing because capital preservation is the most important aspect of maintaining a decent track record in investing.

Another aspect of investing which is being woefully neglected is the psychology. In a bull market, less people care about biases, fallacies and illusions and rely more on heuristics to choose investments. This, to me, represents another major source of risk.