*Official* Shiny Things club - Part 2

[MichealScott]

ok... i opened a FSMone account and now im lost...

i wanna apply for ETF RSP but my account is blocked from certain transactional services (eg: Buy, Switch, RSP, Cash Account Deposit)

So i think thats becoz i have no money in the trading account thats why... then i transferred 3k to their standard chartered account...

but nothing happen.. waited for 20mins still i dont see the 3k appearing in the Total Available Balance.

anyone know why?

I think you need to do your CKA/CSA assessment first...check with the CSO

Sent from Stamford Bridge using GAGT

 

[MichealScott]

POSB-IS is only cheaper than FSMOne RSP for exactly $100/month ($0.50-$0.82 fees vs $1.00)

For those using DBS Multiplier it probably still makes sense to stick with POSB-IS over FSMOne RSP for other amounts

ES3 doesn't really have any significant advantage over G3B now that G3B has brought their TER down to match ES3. Again, I don't consider spread and tracking error very significant.

More than > $300 I would say switch to FSMone..

For my multiplier, I RSP MBH to unlock my investment category. But take note it only lasts for 12 months

Sent from Stamford Bridge using GAGT

 

[ChinoGirl]

Hi MichaelScott, what is your plan after the 12 months end for the RSP MBH?
I have stopped my RSP G3B and switched over to FSM but continuing with MBH at $100 with Posb, which i will discontinue after 12 months is up.I don’t intend to sell all my holdings at Posb IS unless it is for the purpose of rebalancing.

More than > $300 I would say switch to FSMone..

For my multiplier, I RSP MBH to unlock my investment category. But take note it only lasts for 12 months

Sent from Stamford Bridge using GAGT

 

[tangent314]

Well, there's 4 ETFs to choose from on POSB-IS, so I just switch to a different one every 12 months

 

[flowerpalms]

Dont do that it will ruin ur portfolio

Stick to es3

Well, there's 4 ETFs to choose from on POSB-IS, so I just switch to a different one every 12 months

 

[tangent314]

POSB-IS isn't meant to be a significant part of my portfolio, I'm only putting in the minimum $100/month to keep up the interest on my emergency cash. The main bulk of my portfolio is elsewhere.

 

[chrisloh65]

Active fund managers mostly do not beat the index because they have rules which they must follow, like >95% of money raised must be invested at any time (not ideal for best returns), diversification requirements and cannot allocate more than a certain small % of their portfolio to any single stock (even if they can absolutely identify AMZN to be a star stock 15 years ago - not ideal again for best returns) etc. Add to that the high management fees, high overheads etc which will be charged to the funds (absolutely worst!), obviously they won't beat the index!

The overwhelming majority of active fund managers cannot beat the index, even though they are professionally trained and do it for a living. Exceptions like Warrent Buffet are a rarity in this world. If you think you are one, I wish you luck!

 

[chrisloh65]

On the other hand, Warren Buffett made a study of superior investors and found that they are able to beat the market, as mentioned in his 1984 article! And as pointed out by others, there is no so-called expert or university professor who has refuted his article yet. So his article must be definitely truthful and based on facts right?

There are also quite a number of people I know that are able to beat the market because they are managing their own portfolio and do not have to adhere to many rules and regulations of mutual funds that impede their returns.

As pointed out by Warren Buffett in his 1984 article:
"if (c) you found that 40 came from a particular zoo in Omaha, you would be pretty sure you were on to something."

So what is that "something" that makes them more successful than others?
I supose it is Being agile, being humble to acknowledge own's weakness and driven to learn to improve themselves, willing to learn and understand the market cycles and the stocks they are following, do the homework themselves and don't have to pay high management fees and high overheads to own unit trusts etc, and don't even have to pay any fees compared to owning index funds!

The overwhelming majority of active fund managers cannot beat the index, even though they are professionally trained and do it for a living. Exceptions like Warrent Buffet are a rarity in this world. If you think you are one, I wish you luck!

 

[chrisloh65]

What did you buy to own China stocks?

HK:2822 and the like dropped a lot past few days though.

there are many forms of EMH. taken to its extreme, if you see a $50 note of the ground, don't pick it up, because its an illusion. if it was a real $50 note, someone would have picked it up already. not many experts subscribe to this extreme form of EMH, though it appears some in HWZ do.

Malkiel still sticks to his thesis, but there still believes that you should still DYODD when it comes to valuation. if stocks are undervalued, you should buy them... EMH extremists will say that there's no such thing as undervalued stocks

Malkiel has been recommending investors increase their exposure to China. Note that he is not doing market timing but looking at broader valuations.
2008 - https://www.marketwatch.com/story/investing-legend-malkiel-says-you-need-more-exposure-to-china

2011- https://www.cnbc.com/id/45065376

2015 - https://www.etf.com/sections/features-and-news/china-decline-hardly-malkiel-ahern-say

I am also overweight China (makes up about 15%+ of my portfolio, a lot of it due to China shares appreciating faster than Singapore) and happy with the returns.

 

[Zink00]

Anyone knows what date is the latest to have your funds in fsmone, to not miss the rsp on the 8th?
Also, have been on rsp with dbs g3b but recently sign up fsmone es3 rsp. Are there any implications that may arise in future for switching from g3b to es3?

 

[assiak71]

Anyone knows what date is the latest to have your funds in fsmone, to not miss the rsp on the 8th?
Also, have been on rsp with dbs g3b but recently sign up fsmone es3 rsp. Are there any implications that may arise in future for switching from g3b to es3?

Some people said up to the night before still can change instruction which is excellent imo

What implications can there be? Just stick to es3 on fsmone

 

[limster]

What did you buy to own China stocks?

HK:2822 and the like dropped a lot past few days though.

My 'pure' China play is First State Greater China unit trust (using CPF). Though there is a lot of hate out there for unit trusts, I am a fan of the fund manager and I feel he has delivered the returns and earned his salary. This unit trust is one of the biggest holdings in my portfolio thanks to capital gains.

I am vested in various ETFs that have Greater China holdings as well, for example, EIMI is 31% China, VDEM is 37% China, also HKSE ETF will have China exposure, so all those add to my China exposure.

As for 'cheap', I bought 2800.HK in Jan 2019... I'm still waiting for it to drop back to Jan 2019 prices, but it hasn't yet, so even if there is a price drop, its hardly a crash if it doesn't hit 52-wk low...

I am quite bad at selling so my strategy has been to just buy when its low and hold on

 

[flowerpalms]

To all es3 investors, now is the time to show you are not affected by performance anxiety

But through the dips!!!!! Dont panic sell and look long term

 

[chrisloh65]

Interesting, and thanks for sharing!

I suppose most important thing is "just buy when its low"?
But how do you know when is it "low" to buy? What is your strategy to "buy low"? I don't suppose current prices of most stocks in most markets is "low" to justify buying?

My 'pure' China play is First State Greater China unit trust (using CPF). Though there is a lot of hate out there for unit trusts, I am a fan of the fund manager and I feel he has delivered the returns and earned his salary. This unit trust is one of the biggest holdings in my portfolio thanks to capital gains.

I am vested in various ETFs that have Greater China holdings as well, for example, EIMI is 31% China, VDEM is 37% China, also HKSE ETF will have China exposure, so all those add to my China exposure.

As for 'cheap', I bought 2800.HK in Jan 2019... I'm still waiting for it to drop back to Jan 2019 prices, but it hasn't yet, so even if there is a price drop, its hardly a crash if it doesn't hit 52-wk low...

I am quite bad at selling so my strategy has been to just buy when its low and hold on

 

[yesimvested]

im alittle unsure abt the potential of buying into es3. i looked at the price 10years ago..its also at 3.20-3.30.

I can imagine the annual returns to be less then 2% if someone were to hold for 10yrs if they were to start buying 10 yrs ago...

hmmm.. pls correct me if im seeing it wrongly

To all es3 investors, now is the time to show you are not affected by performance anxiety

But through the dips!!!!! Dont panic sell and look long term

 

[chrisloh65]

It depends on what price you bought, which again is what I and limster mentioned before!

If you bought at the high of S$3.60 and above in 2008, you would still be losing money after 11+ years!

im alittle unsure abt the potential of buying into es3. i looked at the price 10years ago..its also at 3.20-3.30.

I can imagine the annual returns to be less then 2% if someone were to hold for 10yrs...

hmmm.. pls correct me if im seeing it wrongly

 

[hwckhs]

im alittle unsure abt the potential of buying into es3. i looked at the price 10years ago..its also at 3.20-3.30.

I can imagine the annual returns to be less then 2% if someone were to hold for 10yrs...

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3#performance

ES3 past 10 years annualized return: 4.07% (dividends reinvested)

Anyway, if you do DCA, you will buy through the ups and downs, and get an average price. Comparing the present and a specific point in the past does not accurately show you the return you will get.

 

[tangent314]

im alittle unsure abt the potential of buying into es3. i looked at the price 10years ago..its also at 3.20-3.30.

I can imagine the annual returns to be less then 2% if someone were to hold for 10yrs if they were to start buying 10 yrs ago...

hmmm.. pls correct me if im seeing it wrongly

You forgot to count the dividends.
Look at the fund factsheet to see the actual performance, that take dividends into account by assuming they are reinvested

 

[celtosaxon]

So help us all out... what will be the star stock 15 years from now?

Active fund managers mostly do not beat the index because they have rules which they must follow, like >95% of money raised must be invested at any time (not ideal for best returns), diversification requirements and cannot allocate more than a certain small % of their portfolio to any single stock (even if they can absolutely identify AMZN to be a star stock 15 years ago - not ideal again for best returns) etc. Add to that the high management fees, high overheads etc which will be charged to the funds (absolutely worst!), obviously they won't beat the index!

 

[yesimvested]

oh ok... 4% is alittle boring... but still better than FD

https://www.ssga.com/sg/en/individual/etfs/funds/spdr-straits-times-index-etf-es3#performance

ES3 past 10 years annualized return: 4.07% (dividends reinvested)

Anyway, if you do DCA, you will buy through the ups and downs, and get an average price. Comparing the present and a specific point in the past does not accurately show you the return you will get.