Warren Buffett once mentioned: “When we own portions of outstanding businesses with outstanding management, our favourite holding period is forever.” That said, finding stocks that you can potentially buy and hold forever is not easy. The company needs to have a long track record, have a competent management team, operate in resilient industries and have an established economic moat to shield it from competitors. In a small market like Singapore, it becomes even more challenging to find companies that exhibit all of these characteristics. However, despite my strict criteria, I believe I have found two stocks that potentially fit the bill. First on the list is DBS Group Holdings Ltd (SGX: D05), the largest bank in Singapore. When hunting for investments that can last a lifetime, it i

At first glance,Raffles Medical Group Ltd (SGX: BSL) seems to have a pretty dull third quarter of 2018. Revenue only inched up 1.2% from a year ago and profit after tax was just 2.2% higher. On closer inspection, though, there are actually some good reasons to be optimistic about the company’s future. Positive updates on the opening of China hospitals Raffles Medical’s much-anticipated opening of two hospitals in China is on track. Raffles Hospital Chongqing is on track to open by the end of the year with procurement and construction progressing according to schedule. In addition, a team of both international and local physicians have already been recruited in anticipation of its opening. The construction of Raffles Hospital Shanghai is also progressing well, according to mana

The sustainability report is probably one of the newer documents pioneered in recent years that public-listed companies have to produce. It also follows a shift in companies trying to establish good ESG (Environmental, Social, and Governance) practices. Singapore-listed companies are still slow in taking up this mantle, but there are companies that have begun to issue sustainability reports. As time goes by, I expect more to follow suit. In this article, I will be using Raffles Medical Group Ltd‘s (SGX: BSL) inaugural sustainability report – released on 15 November 2018 – to illustrate the typical features of such reports and what investors can look forward to from other companies in time to come. As an introduction, Raffles Medical Group is a leading integrated private h

Saving for our children’s university education can be a huge financial commitment. A four-year undergraduate program in Singapore’s public universities costs an average of S$40,000 for local students. The figure, which excludes other miscellaneous fees, is around a third more than a decade ago. With inflation, the fees will only increase in the coming years. Although there are a myriad of options to save up for your child’s tertiary education, investing in shares might be the best of them all. With a time horizon of some 20 years before a newborn hits university-age, putting money in the stock market for the very long-term becomes almost risk-free. With that, here are three shares that you can consider investing in to pay for your precious one’s university education. Company #1

Raffles Medical Group Ltd (SGX: BSL) runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Furthermore, it has two hospitals under development in China. The company recently reported its 2018 third quarter (3Q FY18) earnings update. In this article, I will look at the positive and not-so-positive aspects of its update. The positives First of all, Raffles Medical achieved higher revenue and net profit for the quarter. The former was up by 1.2% year-on-year to S$121.0 million while the latter grew 2.2% year-on-year to S$16.2 million. Healthcare Services division grew revenue by 8.0% year-on-year due to the addition of new corporate clients and the new contract to provide Air Borders screening services. Secondly, the comp

On Monday, Raffles Medical Group Ltd (SGX: BSL) announced its 2018 third quarter (3Q FY18) earnings update. As a quick introduction, Raffles Medical runs hospital and healthcare services in Singapore. It also has a network of clinics in five countries and thirteen cities. Furthermore, it has two hospitals under development in China. Here, let’s look at 10 things that investors should know from its latest earnings update: 1. Revenue for the quarter improved 1.2% year-on-year to S$121.0 million. 2. Operating profit climbed 4.5% year-on-year to S$19.2 million. 3. EBITDA (earnings before interest tax depreciation and amortisation) grew 8.5% to S$23.9 million. 4. Similarly, net profit grew 2.2% year-on-year to S$16.2 million. 5. Diluted earnings per share (EPS) was down by 1.1% year-on-ye

Healthcare companies are generally considered as defensive stocks since their services are needed when the economy’s good as well as bad. The defensive nature of their businesses also makes healthcare companies attractive to investors. There are many healthcare companies in Singapore’s stock market and you might want to know which is a better investment opportunity. There’s no easy answer, but I want to directly compare the important business and valuation aspects of two healthcare services providers – Raffles Medical Group Ltd (SGX: BSL) and Singapore O&G Ltd  (SGX: 1D8) – in a mini article-series. This article is the second in the series and it compares the long term track record of growth for the two companies; the objective is to find out which of the duo did a

Healthcare companies are generally considered as defensive stocks since their services are needed when the economy’s good as well as bad. The defensive nature of their businesses also makes healthcare companies attractive to investors. There are many healthcare companies in Singapore’s stock market and you might want to know which is a better investment opportunity. There’s no easy answer, but I want to directly compare the important business and valuation aspects of two healthcare services providers – Raffles Medical Group Ltd (SGX: BSL) and Singapore O&G Ltd  (SGX: 1D8) – in a mini article-series. This article is the third and last in the series and it compares the valuations of the two healthcare companies. In particular, the valuation metrics I will focus on are the

Earlier this year, Raffles Health Insurance, a fully-owned subsidiary of Raffles Medical Group, announced the launch of Raffles Shield. Raffles Shield is the seventh private integrated shield plan to be launched in Singapore. While Raffles Shield isn’t the first entrant into the market, it’s noteworthy to know that it’s the first (and only) private integrated shield plan to be launched and backed by an insurer which is actually part of a medical group, rather than a traditional insurer. Read Also: Singapore’s Medical Inflation Rate Is At 15%: Why That Spells Disaster For Us Beyond just being a product launched and backed by a medical group, it’s also important for anyone considering the purchase of Raffles Shield to know about some of the unique features that the plan is offering

A year ago, Phillip Capital Management, along with Lion Global Investors, launched the Lion-Phillip S-REIT ETF. The ETF aimed to give investors a way to invest in a diversified basket of Singapore REITs (S-REITs) which paid a steady stream of distributions. (At the moment, the average distribution yield for S-REITs is 6.8%.) The ETF was met with a largely positive response from the market – Lion Global Investors and Phillip Capital Management initially aimed to raise S$40-50 million but exceeded their target when the fund raised over S$100 million last October. Capitalizing on the Singapore market’s appetite for yield, Phillip Capital Management has now launched the Phillip SING Income ETF. The initial offer period for the ETF will close at 11:00 a.m. on 19 October 2018 before its list

Healthcare companies are generally considered as defensive stocks since their services are needed when the economy’s good as well as bad. The defensive nature of their businesses also makes healthcare companies attractive to investors. There are many healthcare companies in Singapore’s stock market and you might want to know which is a better investment opportunity. There’s no easy answer, but I want to directly compare the important business and valuation aspects of two healthcare services providers – Raffles Medical Group Ltd (SGX: BSL) and Singapore O&G Ltd  (SGX: 1D8) – in a mini article-series. This article is the first in the series and it compares the most recent quarterly earnings updates of the two companies. The objective is to find out which compa

Last weekend, I went to perform scuttlebutt on Raffles Medical Group Ltd‘s (SGX: BSL) Raffles Specialist Centre. The specialist centre, a 20-storey building with two basement floors, was opened on 22 January 2018. It has a gross floor area of about 220,000 square feet. Together with the adjacent Raffles Hospital, the combined development has a gross floor area of around 520,000 square feet. Here are some things that I experienced during my visit to the Raffles Specialist Centre on a Saturday afternoon: 1. There is Dimbulah Mountain Estate Coffee located at the main entrance. It has a very prominent frontage as people who walk past the specialist centre would not miss it. I was surprised that the outlet was well-patronised, as there were not many people in other parts of the speci

The healthcare sector has traditionally been considered as a defensive segment with good multi-year growth potential, in step with an ageing societal demographic, rising affluence and the continued demand from medical tourism. Continued market volatility and rising US-China trade tensions has also benefitted defensive sectors like healthcare, which has seen inflows from institutional funds recently. Tracking the performance of healthcare stocks listed on the Singapore Exchange is the iEdge SG All Healthcare Index, a f index that comprises 31 constituents. The five best-yielding constituents of the iEdge SG All Healthcare Index are: First REIT (6.9%), ISEC Healthcare (4.9%), Singapore O&G (4.9%), Parkway Life REIT (4.8%), and Talkmed Group (3.4%). These five stocks have average

This week, Sing Medical (“SMG”) caught my attention. SMG has dropped 39% from $0.725 on 18 Jul 2017 to trade $0.440 on 3 Oct 2018. My personal guess is part of the fall may be attributable to a) Lower, or no earnings growth for some of the healthcare players in FY18F. However, this is likely not the case for SMG, as analysts believe SMG is on track for a minimum 40% growth in FY18F net profit. It is noteworthy that SMG already posted a 70% jump in 1HFY18 net profit; b) Reduction in the general PE valuations ascribed to the healthcare sector;   So, what caught my attention? a) Positive chart: SMG is testing its downtrend line established since 26 Jan 2018 (See Chart 1 below). Indicators such as OBV, RSI and MACD are strengthening. ADX has started to rise and last trades 22.6 on 3 Oct 2

The healthcare industry is a resilient one. No matter what the economy does, there would be demand for doctors. An ageing population and the rising affluence in Singapore should also bode well for healthcare companies here. With the rising trade tensions worldwide, it is not surprising that the healthcare stocks in Singapore have performed well. Shares in the industry have risen some 11% over the past one year. But, are there good value opportunities still around? Let’s find out by comparing three stocks in the industry. Raffles Medical Group Ltd (SGX: BSL) is one of the largest private healthcare groups in Singapore. Established in 1976, it now has a presence in 13 cities across Asia, serving more than 2.2 million patients. The healthcare company has seen its share price deteriorate in

With an aim to address the common-man-investor’s problem of being sucked into dividend traps, Phillip Capital Management is offering a new exchange-traded fund (ETF) to provide income-hungry investors with an ability to invest in a diversified group of quality dividend companies in one fell swoop. The Phillip SING Income ETF (SGX: OVQ), as it is called, is Phillip Capital’s third ETF in Singapore’s stock market. The new ETF was launched yesterday, and The Motley Fool Singapore was invited to an exclusive media briefing for the launch-event. The Phillip SING Income ETF aims to fully replicate the Morningstar Singapore Yield Focus Index. The 30-stock index selects Singapore-listed companies based on three main factors: business quality; financial health; and dividend yield. In

Healthcare companies are generally considered as defensive stocks since their services are needed in both good and bad times. As such, the prevailing view is that healthcare companies tend to act as a hedge during a downward market. Given their defensive nature, it is not surprising to see that most of these companies are trading at high valuations. But still, we don’t want to pay an excessive price to buy these stocks. Here, we will compare the valuation of three major healthcare-related stocks listed in Singapore, namely, IHH Healthcare Berhad (SGX: Q0F), Raffles Medical Group Ltd (SGX: BSL) and Top Glove (SGX: BVA). What we will do is to find the company with the lowest valuation (as at 15 September 2018) through three valuation metrics: price-to-book (PB) ratio, price-to-earnings (

Soon after Singapore celebrated the nation’s 53rd birthday, Prime Minister Lee Hsien Loong addressed some of the more pressing concerns which have been on Singaporeans’ minds during the National Day Rally (NDR) 2018. In his speech, PM Lee devoted a large part of his time touching on the new schemes to alleviate housing concerns, new changes made to healthcare subsidies as well as the rising costs of living. With that in mind, we identified three stocks centered on the themes mentioned during NDR 2018 which we think could benefit from the new policies. ISOTeam Listed on the Singapore Exchange (SGX) in July 2013, ISOTeam is an established player in Singapore’s building maintenance and estate upgrading industry with over 19 years of experiences. The group has successfully completed over

Defensive stocks pertain to those companies whose operations are not subjected by cyclicality. Here are three defensive stock picks are value plays with undemanding valuation. Investors Takeaway: 3 Defensive Stock Picks With Undemanding Valuation Raffles Medical Group Raffles Medical Group announced that it will be launching Raffles Shield, a Medisave-approved Integrated Shield Plan (IP). The entry of Raffles Medical Group will make it the seventh IP provider to enter the industry, joining other providers such as AIA, Aviva, Income and Prudential. At its current share price, KGI believes that it is attractive to accumulate Raffles Medical Group as part of a defensive portfolio. KGI notes that Raffles Medical Group’s current valuation is undemanding with limited downside. Although star

Singapore’s stock exchange is home to some interesting healthcare stocks. Most of us would be familiar with household brands such as Raffles Medical Group Ltd and IHH Healthcare Bhd. But besides these, there are other smaller healthcare providers that go under the radar from the general investing public. In this article, I want to compare two such companies that could potentially boost the health (pun intended) of your portfolio. Introducing the contenders The two companies that I will be looking at are ISEC Healthcare Ltd (SGX: 40T) and Singapore O&G Ltd (SGX: 1D8). ISEC, through its team of 25 doctors, provides specialised eye care service in Singapore and Malaysia. It operates four ambulatory surgical centres in Malaysia and one in Singapore. It also recently expanded its service