05-07-2019, 09:30 PM
(03-07-2019, 09:48 PM)dreamybear Wrote: [ -> ]In the Business Times article(link below), Mr Kong says "In the last three years, we could find stocks that paid 7 per cent dividends, with a net book value of S$1, a share price of 40 cents and PE in single digit. Such stocks give us big returns and little downside.
Reference : https://www.businesstimes.com.sg/magazin...g-on-value
As a layman, I think they have done well. I am not vested(I am not an accredited investor) But I am dreaming of the day I can find such stocks with criteria defined by Aggregate !
I think there will definitely be more lower-priced stocks found during market corrections. Maybe they got lucky and bought lots of good and cheap stocks in 2014 and 2015. During periods of market peace such as now, bargains will be few, or none.
Anyway, I think if an investor can meet the following conditions, his/her probability of success will be quite high.
1. Willing to accept a moderate level of return (maybe 8-9% p.a.)
2. Able to not trade their stocks at least for 3 years
3. Have sufficient ability to identify stocks that are able to provide stable & recurring dividends
4. Willing to diversify widely
5. Possess cashflow to purchase more stocks during market corrections
I believe ghchua is one such person to have a very diversified portfolio of okay-quality stocks that pay regular dividends. Though ghchua's returns are not published, I believe they are close to a long-term average of 8-9% p.a..
Everyone can get returns like AAM or Inclusif. But because not everyone is willing (or able) to meet the conditions stated above, most get average results.