Your personal experience during financial crisis?

[mikezuper]

My experience started 2007 when economy boom after prolong crisis of 98, DotCom and SARS which I dont have direct experience as I was still in school.

After working several years, I landed on better paying job, good role in better company compare to previous one. With more disposable income, I started to invest, buying insurance and playing stocks.

I bought land banking investement in 2008 which until now still no news (average exit is 7 years so let see this year). I bought ILP (Investment Linked Plans) which still in negative until now (6 years running). Now come the stocks.

Started small with 1K, 2K, started good with Genting, Chip Eng Seng and Stamford Tyres. Stocks are going north reaching its peak. But suddenly subprime issue came and GFC hit. I remember the first was Bear Sterns. The bank was saved by being acquired by JP Morgan, things still look ok. I observed the stock price went up after being bought. I become active in stocks as I have more disposable income every month (wrong move, should have accumulate enough to leverage on property).

I then saw Lehman going similar path to Bear Sterns. I kept monitoring and decided to enter when I think its quite low and I did. But I bought ONE DAY before Lehman collapse. It was the first SHOCK of my life. I keep reading the news on what will happen to the stocks if the co bankrupt. The stocks become 60cents the next day. I kept reading and saw that liquidation will take place and if there is any leftover, shareholder might get something (Wrong again - if the co collapse, better exit if it still has value, ordinary shareholder paid the last after government tax, lender, and preferred shares holder). So I started to make peace with myself and take this as expensive learning lesson (but I didnt, its just human )

Then came Citi next. I was holding it previously from 2008 at $7.50 that point of time. It went down to $1. Now Bear Stearns and Lehman has taught me some stuff right. If I buy, and survived, I will make. If not, I will be again throwing $$ to the drain like Lehman. I didnt take the plunge and thats again another WRONG decision.

Since then, I learnt a few things and better equipped now. But the final lesson is like many had said, dont invest money you cant lose. Leverage will kill/propel you instantly.

Keep the sharing coming - we will all learn from each other, better! =)

 

[private_invest_sg]

I then saw Lehman going similar path to Bear Sterns.

During the crisis, I remembered a trader screaming for a strong buy in these 2 companies based on his technical analysis. He was fired on the spot by the chief trader, who later explained that the former would soon or later become a rogue trader.

 

[simon_84]

But there will be an increase in interest rate which will affect the share price and the dividend of the REITs shares right? Cause experience people here suggest not to buy reits due to this reason. This also deters me to purchase reits despite of its high dividend which is good for me as a long term investors

ultimately is your own call, who are we to decide for you...
if you trust ppl in this forum too much, you will incur opportunity cost as well.
only when you lose money, then you will learn.

 

[simon_84]

Saizen was one such example where its unit price vaporized by over 80% because it was unable to service its debt and defaulted, forcing to liquidate to pay back its loans back in 2009.... till today this counter is still unloved by investors because of its past mistake.

yup, this is a good example of a reit that has bad reputation.

 

[spiritGate]

ultimately is your own call, who are we to decide for you...
if you trust ppl in this forum too much, you will incur opportunity cost as well.
only when you lose money, then you will learn.

yup thats true, that's why i purchase a small amount of share with soilbuild biz reits because I think it had potential growth (well might be a bad move for me)

 

[winorlose]

My experience started 2007 when economy boom after prolong crisis of 98, DotCom and SARS which I dont have direct experience as I was still in school.

After working several years, I landed on better paying job, good role in better company compare to previous one. With more disposable income, I started to invest, buying insurance and playing stocks.

I bought land banking investement in 2008 which until now still no news (average exit is 7 years so let see this year). I bought ILP (Investment Linked Plans) which still in negative until now (6 years running). Now come the stocks.

Started small with 1K, 2K, started good with Genting, Chip Eng Seng and Stamford Tyres. Stocks are going north reaching its peak. But suddenly subprime issue came and GFC hit. I remember the first was Bear Sterns. The bank was saved by being acquired by JP Morgan, things still look ok. I observed the stock price went up after being bought. I become active in stocks as I have more disposable income every month (wrong move, should have accumulate enough to leverage on property).

I then saw Lehman going similar path to Bear Sterns. I kept monitoring and decided to enter when I think its quite low and I did. But I bought ONE DAY before Lehman collapse. It was the first SHOCK of my life. I keep reading the news on what will happen to the stocks if the co bankrupt. The stocks become 60cents the next day. I kept reading and saw that liquidation will take place and if there is any leftover, shareholder might get something (Wrong again - if the co collapse, better exit if it still has value, ordinary shareholder paid the last after government tax, lender, and preferred shares holder). So I started to make peace with myself and take this as expensive learning lesson (but I didnt, its just human )

Then came Citi next. I was holding it previously from 2008 at $7.50 that point of time. It went down to $1. Now Bear Stearns and Lehman has taught me some stuff right. If I buy, and survived, I will make. If not, I will be again throwing $$ to the drain like Lehman. I didnt take the plunge and thats again another WRONG decision.

Since then, I learnt a few things and better equipped now. But the final lesson is like many had said, dont invest money you cant lose. Leverage will kill/propel you instantly.

Keep the sharing coming - we will all learn from each other, better! =)

Thanks for sharing..

If i share, i can write 3pages long. Especially during my time when i was a RM in the bank (Oxxx). Everyday aunties uncles come and ask whether their insurance policies are intact.

Even when i was young, i already experienced it at home.. During 1990s, my parents always on teletext to monitor their shares... very hot during that time.. multi baggers anytime.

Those malaysian shares list in SESDAQ..1 day shoot x3

SGX where got care and do query.. ******* la..u buy u risk u die your problem

Now up abit, vol more abit..** sgx chu letter to company enquiry simi lan.. haha

 

[felixleong]

yup thats true, that's why i purchase a small amount of share with soilbuild biz reits because I think it had potential growth (well might be a bad move for me)

your first stock u bought soil build reit ah
not bad, the yield looks pretty high

 

[spiritGate]

your first stock u bought soil build reit ah
not bad, the yield looks pretty high

Yup, low share price for me to start with to test out how reits work during the crisis of increase in interest rate amd debts, and I also want to see how it grows.

Not sure whether is a good move hahaha

 

[winorlose]

Did u go Reitdata?

SGX REIT Data - Some Simple Financial Data on SGX REITs + Trusts

 

[spiritGate]

Did u go Reitdata?

SGX REIT Data - Some Simple Financial Data on SGX REITs + Trusts

Yes but dont really get what it is saying. I saw that there are a few red reits by the writer, not sure whether it is bad or? Cause I based on their focus area and bet on soilbuild, as I am new to investment, I might miss out some impt thing

 

[winorlose]

Yes but dont really get what it is saying. I saw that there are a few red reits by the writer, not sure whether it is bad or? Cause I based on their focus area and bet on soilbuild, as I am new to investment, I might miss out some impt thing

Ultimately reits rely heavily on borrowings to finance their properties. Things to check:

1) debt levels
2) cash levels
3) what kind of debt and at what rates (floating or fix)
4) major tenants occupancy expiry

Not just see Yield %, NAV , Gearing.. if yield so good but price dont move..means.... what? You may be attracted to yield.. give you 1 or 2 times div then company start to chu pattern liao.. then you spit saliva

You see maple logistics, so over valued over NAV but still can move up.

 

[lcornwisky]

ultimately is your own call, who are we to decide for you...
if you trust ppl in this forum too much, you will incur opportunity cost as well.
only when you lose money, then you will learn.

Agreed there are more professional forums around on investing

Sent from Xiaomi HM NOTE 1W using GAGT

 

[havetheveryfun]

I bought land banking investement in 2008 which until now still no news (average exit is 7 years so let see this year). I bought ILP (Investment Linked Plans) which still in negative until now (6 years running). Now come the stocks.

sic the land banking company leh

 

[mikezuper]

sic the land banking company leh

Starts with W ends with N .. Can decipher? if not, pm me bro

 

[havetheveryfun]

Starts with W ends with N .. Can decipher? if not, pm me bro

oh ok thought that's the most famous one now and the agents always say some ppl got back their money already based on their "Track records"

 

[mikezuper]

oh ok thought that's the most famous one now and the agents always say some ppl got back their money already based on their "Track records"

I will say the same once my project exit, but not now.

But my case will be longer I think. I bought US one before the subprime issue =)

 

[Opps-gal]

But there will be an increase in interest rate which will affect the share price and the dividend of the REITs shares right? Cause experience people here suggest not to buy reits due to this reason. This also deters me to purchase reits despite of its high dividend which is good for me as a long term investors

So...those not under Reits shares, the companies no gearing/borrowing?

 

[felixleong]

when rates go up, reits prices have to come down to match it

example now 30 year goverment bonds pay 3% interest
imagine if rates go up and these risk free bonds pay 6% interest?

would investors still want to pay $1.00 for a reit that pays 6 cents of distribution? (6% yield)
probably not... investors would probably want 8 to 10% yield from the reit and would pay much less than $1.00 for the same reit

 

[havetheveryfun]

I will say the same once my project exit, but not now.

But my case will be longer I think. I bought US one before the subprime issue =)

So its like a all or nothing? Either u get back everything + returns or nothing at all, no in between

 

[wahkao3]

for those of you who think dividend will save you during recession, remember :

total return = dividend gain - capital loss

if the capital loss is -100 and the dividend gain is 80, you make a net loss of -20. Its still wiser to sell off and buy at cheaper price. dont be fooled by the dividend. dont be hard up over dividend!