KT Wealth

China - the new growth market in Asia, the country that led the global economy out of doldrums in 2008, driven by the stimulus packaged offered by the local government Why is it attractive? 1. One of the world most populous nation 2. Largest internet market users in the world 3. High demand for coal, iron ore and minerals - inbound & outbound 4. Infrastructure growth, production and development of raw materials 5. The need for clean water and proper sanitation facilities 6. Growing affluence of the Chinese to spend on luxury goods 7. Property - under-developed 2nd and 3rd tier cities into mega-malls/business hubs 8. Widespread need for quality health care services The list goes on and on... I am keen to enter into the China market via paper assets such as equities, mainly into shares. There are, of course, other options such as bonds, ETFs and other asset classes/instruments to consider. Please consult your Financial Adviser :) Let's focus on shares. 3 ways to gain exposure: (...

Company background at a brief: The Group's main activities can be categorised into 4 main operations: hose & marine specilaists, measuring instruments/metrology, uPVC pipes & fittings, and industrial property. The customer base is predominantly oil and gas related, both on and offshore. Why it is attractive: - Average of 9% yield - Positive free cash flow over the years - Net cash position - Historically, on average, stable dividend payout over the past 3 years Summary of disadvantages: - Limited and boring growth prospects - Margins may be indirectly affected through the industries via their customer base - A case of too much cash being idle, waiting for acquisition which may not materialize? - Lack of substantial interest - a case of not being noticed? undervalued? Dividend table - 2006 to 2010 Source: ShareInvestor Financial snapshot Source: ShareInvestor For growing my passive income via dividends, my first investment foray into GRP Ltd starts in Jan 2011. Remain vested...

My 10 investment philosophies: 1) Buy into companies that have future growth potential – Growth Investing 2) I do not like short-selling/contra (I tried before - such financial game is not for me) 3) Know your companies – preferably circle of competence 4) Believe in Cycle & Trend Investing – Properties: buy at down-trough, sell at peak 5) Averaging down to slowly accumulate more shares 6) Do not get influenced by Mr. Market, Fund Managers & Analysts. 7) Solid management with clear vision help make better informed investment decisions 8) Never invest based on emotions or be a total price slave! 9) Never believe in being too overly too diversified. Be focused on key areas (e.g. properties) 10) Believe in Joseph cycle – 7 years bear & bull My investment personality: P = patience D = discipline C = commitment Patience to wait for greater returns, discipline to my personal investment framework (cycle/trend, capitalize on growth etc..) and committed to reach my investment goals...

Interestingly, we spend our money for a variety of reasons. It can be a gift for our loved ones, a get-together meal with family members, a round of drinks with closed friends or an item to pamper ourselves/make our lives better. Whatever the reasons, there is always a time to spend. If spending adds value to us, then the cost of returns back, as perceived by us, will be worth the investment. However, if spending has always been a hasty decision or if you are a total spending freak, then you may want to evaluate the reasons behind it. To do this, take into the shoes of the Retailers. So before we take out a wad of dollar bills, ask yourself - what has Retailers done to us? There are a number of gimmicks, promotions and packages to win your consumer dollar. They could financially rob your wealth if you are not disciplined and do not take total control. Here are 3 common tactics used: 1. The magic word - FREE Do you like FREE? For me, of course! This goes without saying. Buy 2, get 1 FRE...

If you happen to take a walk down ION Orchard during the weekends, chances is that you will see long queues at high-end clothing boutiques such as Prada or Louis Vuitton. You will notice at Takashimaya - Louis Vuitton. Take a closer look and you will be surprised - young female teenagers form part of the crowd, decked in short skirts, powdered make-up and high silhouette heels. My wife and me like the Prada designs. It gives a classier and elegant outlook. So we join in the queue. Also, we will like to observe the spending power of the young. The doors are opened and voila! We enter the Prada boutique. Right in front of us, flanked by 4 parameters are young people (assuming they are local polytechnic students) happily browsing through the latest designs. Their looks give me the indication that they are about 18-23 years of age (of course, looks are deceiving but then not their youthful vibrancy right? - some young girls carry Hermes bag on one hand) And they don't just scan around....

Reits AIMS AMP - Industrial - Average of 9.2% yield - Quarterly payout Mapletree Industrial Trust - Industrial - Average of 7.3% yield - Quarterly payout - Strong sponsor (Temasek-owned) First Reit - Healthcare - Average of 8.4% yield - Quarterly payout - Demand of quality healthcare services in Indonesia - room for growth Businesses GRP - 4 business units, mainly into industrial rubber hoses and fittings - Average of 9% yield - Positive free cash flow over the years - Net cash position - Historically, on average, stable payout over the past 3 years Potential Watchlist Starhub - Yield of about 7% - Quarterly payout - "Government-backed" entity *Updated as of 2011 - will change if there is any addition or omission I will be holding on to the businesses for long term dividend payout. Of course if situation changes, sudden turn of direction from the management or too much rights issue without valid consideration, I will then have to re-consider my purchases in my dividend portf...

The 8 pointers: 1. Steady dividend payout over the years, possibly a good 3-5 years record 2. If possible, steady, quarterly payout per calender year 3. Does not pursue overly aggressive growth and not in a volatile business 4. Yield "locked in" to the price purchased - at least 7% and more 4. Reits - DPU (Distribution Per Unit) to increase on quarterly basis (minus rights issue) 5. Robust management whom takes into the interests of shareholders for dividend payout 6. Where possible, double digit free cash flow (FCF) is the icing on the cake 7. Dividend pay off - cash flow from ops/retained earnings and not from past year/borrowings 8. Substantial shareholders/fund houses/management buy up the shares - add business confidence * Above is just my personal framework for choosing dividend yielding shares * Objective is to increase my monthly passive income * As of now, dividends add up to about 99% of my monthly passive income