Showing posts from September, 2011

ARA Asset Management

Last Friday, I divested GRP (I may buy in again) and bought shares of ARA Asset Management with a longer time horizon. At the moment, ARA Asset Management is trading to new one year low with P/E 15x. For me, I am planning to buy in batches and average down should the price of ARA Asset Management becomes more attractive.

About ARA
ARA Asset Management is an Asian real estate fund management company focusing mainly on the management of REITS and private real estate funds. ARA currently manages REITS listed in Singapore, Malaysia, and Hong Kong with a diversified portfolio of retail, office, industrial and logistics; private funds investing in real estate and real estate securities in Asia.

Here are quick 5 pointers why I chose ARA Asset Management:

1) Growth of Asian REITS
According to industry chamber Assocham, Asian REITS currently accounts for 10.6% of global REITS and expected to grow to US$500 billion in 8-10 years time, a projected figure of USS$100m billion from 2010. Majority of re…

The "buy & hold" mentality

I used to have this thinking that if one adopts the "buy and hold" strategy, our returns are superior due to the compounding effect.

While this is true, however, due to the complex world that we are living now, things can be unpredictable at times when the bear market comes. Your gains are wiped out completely or if not, in great drastic effect - for instance S&P downgrade of America AAA status causes worldwide markets to panic, the fear of a double dip recession, just 3 years after 2008.

When this happens, your equity (i.e. stock) can be way under your average/last purchased price when the indices fall. Unless your pockets are deep to average down, otherwise the emotional and mental aspect can impact you to a certain degree, no matter how much you try to convince yourself (hey, humans have feelings eh?). You start to see paper losses. You tell yourself it's temporary - after all market will shoot up. You start to seek advises from Professionals or re-affirm yourself t…