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Tuesday, 3 April 2018

Hyflux Preference Shares - Revisited with humility


First, we learned the hard way with S-chips.

Then some understood belated why unrated corporate bonds are called "junk" bonds. 

Now together with everyone else, I am learning about the realities of perpetual securities.



Now with track record of 6 years, the water "hype" has died down together with other "thematic" investments like the China, Myanmar, O&G, commodities plays. 



Now is the rubber meets the road moment for yield hogs who proudly declare just as long got regular "passive" income, whether price goes up or down does not matter.




Time frame. Everything is about time frame.

I am not vested; but I am biased.

It reinforces my beliefs and bitter past experiences - never get suckered into the Buy and Hold spin peddled by vested interests.

Banking stocks are doing splendidly well now. But I remember during 2008 how they got clobbered.

I am not good enough for Buy and Hold. 



Yes. Time frame. Where there is time, there are seasons.

Know when to plant, when to harvest. 

Be humble.

Just like the wild gust of wind at Lim Chu Kang recently, even when I got the timing "right", I can only focus on what I can control - planting and harvesting. 

The weather and other acts of nature, they are there to remind me - man proposes, heaven disposes.



That's the realities of investing.

If one does not take responsibility for investing, one should never attempt DIY active investing.

Maybe put money in CPF would be better (that's called savings by the way)?

Anything wrong can blame big daddy!







8 comments:

  1. No comments on this yet? Wow I'm stunned.

    ReplyDelete
    Replies
    1. ERSG,

      Well, I guess regular animals at this watering hole are not vested.

      No harm, no foul ;)


      Delete
    2. I actually went to take a look at these CPS after reading your post. Looks interesting.

      Delete
    3. ERSG,

      That's the beauty of investing/trading.

      For every seller, there's a buyer.

      Its like your freegan activities.

      Some throw away what they thought was "junk". others gladly pick them up as "treasures" ;)

      Happy hunting!


      Delete
  2. No prob if proper position sizing & trailing stop ;)

    Another reminder why I don't go for individual securities for the really big bucks ... I'm too dumb compared to the insiders! LOL!!

    ReplyDelete
    Replies
    1. Spur,

      Position sizing yes; I not so sure how many retail "investors" know how to use trailing stops?

      That's the realm of traders ;)


      Ah! You go for the ETF route. That's one of the allure of ETFs!

      Delete
  3. Hi SMOL,

    One man poison is another ...

    With it below par now, u get and they sell their asset u huat

    ReplyDelete
    Replies
    1. Sillyinvestor,

      That's distress investing.

      I watched with incredulity as some hedge funds went in like vultures on Greek bonds during the height of Greece's troubles.

      Fast forward to today, these brave hedge funds cleaned house!


      Although not vested, this Hyflux example is great tutelage for perpetual securities.

      Just like Noble and Swiber were for corporate junk bonds.

      And I learned the reason why shipping trusts have to pay more dividends over REITs when they IPOed...

      Same goes for peer-to-peer lending. 18% sounds great until your borrower defaults :(


      Delete

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