ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: A Newbie Guide to Investing
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
(16-05-2015, 03:31 AM)Drake Wrote: [ -> ]Hi all, dedicated my first post to this question in value investing.

Keeping overall fees (brokerage fees, clearing fee, trading fee) low is one of my goals when investing. I am trying to understand, with my limited knowledge, how does one keep it low with DCA (aside from going to the firm with the lowest fees)? Do you guys put in thousands of dollars every month so that you can make the fees more justifiable? My impression of DCA is for poor man like me that can only afford hundreds.. And if we talk about hundreds, these fees will add up like an estimated of 30$ per month.

Only works if you have a custodian account with Standard Chartered. They don't have a minimum fee.
(16-05-2015, 06:07 PM)Ferns Wrote: [ -> ]
(16-05-2015, 03:31 AM)Drake Wrote: [ -> ]Hi all, dedicated my first post to this question in value investing.

Keeping overall fees (brokerage fees, clearing fee, trading fee) low is one of my goals when investing. I am trying to understand, with my limited knowledge, how does one keep it low with DCA (aside from going to the firm with the lowest fees)? Do you guys put in thousands of dollars every month so that you can make the fees more justifiable? My impression of DCA is for poor man like me that can only afford hundreds.. And if we talk about hundreds, these fees will add up like an estimated of 30$ per month.

Only works if you have a custodian account with Standard Chartered. They don't have a minimum fee.

I see. Thank you for your input!
To me, I feel that counterparty risk is more important compared to other fees.
Counterparty risk is this case is your shares custodian.
As a start, the cost to invest might be your main concern especially when you started small.

But when come to building up your portfolio, counterparty risk comes into picture.

Imagine over the years, your construction of portfolio went haywire because of this issue.
Of course, no matter where you put your money, there will be risks. So for me always try my best to think of the risk first before I put my money down. And not how much money I can make.
(19-05-2015, 04:59 PM)Temperament Wrote: [ -> ]Of course, no matter where you put your money, there will be risks. So for me always try my best to think of the risk first before I put my money down. And not how much money I can make.

Early exhortation is better than hidden laughter.
One Tiny Number Can Reveal Big Problems at a Global Smartphone Maker
http://www.bloomberg.com/news/articles/2...hone-maker
Hi buddies,

Have a few accounting questions here. Tried to google it but not very useful.

1) for property counters, developmental properties are booked under current assets. Is the value booked at cost of construction or booked at units already sold?

2) cogent mentioned their building of 1 hub logistic is capitalized,what does that mean? It is now an asset? 

3) capex for future investment, where does it appear in the PnL, under cost of sales or ??

Thanks!
for (3), CAPEX appears on cashflow statement. On the balance sheet, there is a transfer from cash to properties/plant and equipment. In the P/L, CAPEX appears in the form of depreciation, deducted from properties/plant and equipment.
(07-11-2015, 12:58 PM)weijian Wrote: [ -> ]for (3), CAPEX appears on cashflow statement. On the balance sheet, there is a transfer from cash to properties/plant and equipment. In the P/L, CAPEX appears in the form of depreciation, deducted from properties/plant and equipment.

Thanks Weijian.
Hi Greenrookie

1) for property counters, developmental properties are booked under current assets. Is the value booked at cost of construction or booked at units already sold?

Development properties – Sing Holding AR 2014 Notes to Accounts 2.14
Development properties are properties acquired or being constructed for sale in the ordinary course of business, rather than to be held for the Group’s own use, rental or capital appreciation. Development properties are held as inventories and are measured at the lower of cost and net realisable value. The cost of development properties held for sale includes cost of land and construction, related overhead expenditure and financing charges incurred during the period of construction and up to the completion of construction. Non-refundable commissions paid to sales or marketing agents on the sale of development properties are expensed when incurred. Allowance for foreseeable losses on development properties is made when it is anticipated that the net realisable value has fallen below cost. Net realisable value of development properties is the estimated selling price in the ordinary course of the business, based on market prices at the reporting date and discounted for the time value of money if material, less the estimated costs of completion and the estimated costs necessary to make the sale.

2) cogent mentioned their building of 1 hub logistic is capitalized,what does that mean? It is now an asset? 

Capital Expenditure, capex – does not constitutes a charge to P&L when incurred.
Construction costs of 1 Hub Logistic began in Year 2012, is initially taken up to the accounts under Construction in-progress of the Fixed Assets/Property Plant and Equipment (Cogent AR Notes to Accounts #10).  Upon completion and commissioned, it is transferred/reclassified to the respective fixed assets categories – Land, Building, Leasehold Improvement, Equipments.  Thereafter, depreciation shall commerce with yearly charge to the P&L.(ie operating expenditure – opex)
 
In another word, these related costs are treated as capital in nature / capex and therefore capitalized since day 1 (back in Year 2012).  Cogent mentioned their building of 1 hub logistic is capitalized in Year 2014 basically meant that the facility is completed and ready for use.

3) capex for future investment, where does it appear in the PnL, under cost of sales or ??

 
Capex is taken up in Balance Sheet and Opex is shown in P&L.  Possible sources on the amount of upcoming capex spending for future investment – Press results release, Management briefing to analysts, Annual Reports - Chairman statement and/or Balance Sheet Notes to Accounts 31– Capital commitment.
 
Hope this helps.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31