An individual can invest for a variety of reasons.  However, at the crux of the matter, we all invest for two key reason – to beat inflation and to create a secondary income source. I previously wrote an article on how inflation erodes your savings. Creating a second income source When we were young, we were told to study hard so we could get a good job. That was the role our education system played to ensure we could find a career of our choice or expertise. Our education enabled us to work in our chosen field of specialisation. While this is a good and necessary start, it often takes up a lot of time usually requiring between 10-12 hours a day. With so much time taken up at our primary workplace, we are usually highly dependent on the income we make from the job to support us

In a construction project for a huge mall, the foundation needs to be piled in first so that the structure is stable. Thereafter, the construction for the rest of the building can take place. In investing, something similar should also occur. Investors need to lay their investment foundation first before embarking on the construction of their portfolio. A strong foundation would include a compelling and coherent investment philosophy and also guidelines on how to select companies. Armed with a proper foundation, investing would end up being smooth-sailing, rather than fraught with peril. Take inventory The first step in laying a good foundation involves asking a series of questions about past investments, a list of profits and losses made, as well as a complete history of investment behav

Kingsmen Creatives Limited (SGX: 5MZ) is a leading communication design and production group with a network of 21 offices around Asia. The group has four main divisions – exhibitions and thematics, retail and corporate interiors, research and design and alternative marketing. Some of its clients include global brands such as Chanel, Gucci, LVMH Group and Tiffany and Co. Kingsmen was started 43 years ago in 1976, and though its business has remained relatively unchanged during this time, the group had encountered numerous challenges along the way. It has had to adapt and evolve over time in order to remain relevant and has also managed to refresh its management team as the two original founders, Benedict Soh and Simon Ong, take on consulting and strategic roles. I felt it would be in

Delfi Limited (SGX: P34) manufactures and distributes branded consumer products that are sold in over 17 countries including Singapore, Malaysia, Indonesia, Hong Kong, Australia and Thailand. Delfi was formerly known as Petra Foods Limited but changed its name in May 2016, and has a portfolio of established brands such as “SilverQueen” and “Ceres”, which are household names in Indonesia. While Delfi has a long operating track record and a strong portfolio of brands in Indonesia, the consumer goods market’s fortunes are tied to the economy and the industry itself is also fragmented, with many local and foreign players jostling for a piece of the pie. A company’s reputation and branding will determine if it attains dominant mind share when consumers shop

Here’s yet another three biases and fallacies taken from the book “The Art of Thinking Clearly” by Rolf Dobelli. Investors need to be always alert for such biases as they can screw up your investment thought process and cause you to make costly mistakes. The problem with averages We all have to be very careful when dealing with averages. There is no such thing as a “normal” average, as each data set is unique and may be vastly different, making them incomparable. Also, if there is an anomaly or an outlier (i.e. a statistic which differs greatly from the norm), this will skew the average significantly. An example would be the comparison of dividend yields in a data set of 10 companies within an industry. Nine of these companies may have dividend yields ranging

In this article, we focus on the final two M&A investment themes: ‘Merger For F&B Brand Value’ and ‘Optimising Shareholding Structure To Maximise Returns’. Investors Takeaway: ‘Merger For F&B Brand Value’ & ‘Optimising Shareholding Structure To Maximise Returns’ ⦁ F&B – Premium In Brand Value As seen from past takeovers and privatisations of OSIM, Eu Yan Sang, Super Group, Auric Pacific and Courts Asia, companies with strong brand equity are highly sought after as acquisition targets. Among the F&B plays, SunMoon, QAF and Delfi stand out in building their brand premiums. As such, DBS thinks that these companies could be on the radar screen of acquirers. SunMoon SunMoon is a global distributor and marketer of fresh fruits, vegetables and products

In this article, we focus on consumption plays trading at an attractive valuation standpoint. According to RHB, the three stocks we are about to discussed are currently undervalued and presents a good investment opportunity. Investors Takeaway: 3 Consumption Plays Trading At Attractive Discount By RHB Jumbo Group Anyone who claims to be a Singaporean should be familiar with this Singapore brand: Jumbo Group (Jumbo). Jumbo is an F&B company that operates 20 restaurants and has six franchisee-operated restaurants. The group recently opened two new branches in Ion Orchard and Jewel Changi Airport and has plans to expand into more Jumbo Seafood outlet openings in Shanghai and Beijing. RHB notes that these store expansions should help contribute to both revenue and net profit. Following s