Thursday, January 1, 2015

Which Stock to Purchase?

Hi Everyone!

*Note: This is not a suggestion post or whatsoever, is just my personal portfolio that I will be heading as I am a newbie and not a professional financial adviser. 

As the 19th of Jan draws nearer, the decision making of which stock to buy must be made ASAP. This is indeed a tough choice for me as there are tons of blue chips that I wish to purchase in order to get good dividends. I will invest in blue chips for my investment plan as it has lower risk (doesn't mean no risk!). 

Personally, I have draft out some plan for investment, but I will be looking at companies with high dividends. Many would say it is not sufficient to look at dividends and I agree, there is one other point that I will be looking at is the sustainability (whether the company will sustain even if the market crash). These are the two points that I will be looking at. 

I do not really care about the capital gain/loss in the first two years unless there is a news reporting that the company is at risk in failing, then I will sell away the stocks from that company. If not, I will keep them as long term investment.

So you must be wondering what is the duration of my long term investment? Well for me, I will do a review (if no serious impact happen to the company that I have invested) every 5 years to ensure that all the stocks are in the healthy range. 

Everyone has their own assessment criteria for their own portfolio, I have mine too. However, as a newbie in investment, I will have to rely on the the two factors that I mention above. 


So, here comes the million dollar question, which stock will I pick out of all the blue chip stocks in Singapore?

1) Starhub or Singtel or M1 (Second to Invest)

So why this stock? As I have mentioned before, I am looking at sustainability. Telco are one of them as with out them, how can Singapore live? Thus, the chances of them turning into ashes is practically impossible, if not Singapore will not be able to function

2) SembCorp Industries (Third to Invest)

Also, this is one of the necessity for Singapore where it function to dispose wastage for Singapore, so without it, Singapore will not be able to function


3) Capitamall Trust and Frasers Centrepoint Trust (First to Invest)

Shopping malls are everywhere in Singapore. Understand that there is an increase in online shopping but without shopping centers, it will be a boring country to live in!


After reading through, you might be thinking why not DBS bank? For me is because the required capital is quite high DBS - $20.45 per share if bought one lot, it will cost $2045. Unless the dividends is really good if not I wont go in (if want to go in, probably go ii in April since their dividend is in May and August)



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