Invest in REITS and use the Dividend to invest into S&P500 or US growth stocks😅. Why must be one-sided ? 😂

@BoonTee

15 күн бұрын

Invest in both!

CK just summarized the call. “You are just taking the equity out.” My 偶像

Growth stock is for people who wants big growth and are young to wait it out. ie kevin. Naturally he also suffer the consequences of it. Just look at his Tesla portfolio the past year. Dividend stock is for boomers who wan predictability of dividend with a tangible asset backing the cash flows. All have their merits. As a middle age working class myself, I have both. 40% growth, 40% dividend play, 20% bonds

@mming_my

7 күн бұрын

My Tesla is up 40%, if depends how long you hold

Love how Boon Tee schools Eric in this episode.

Saw the video, and agree with the arguments raised. Personally, I am invested in the 3 banks as well, which have a REIT-like yield. On how one should invest their monies, there’s really no one size fits all - there are 101 strategies available, and most importantly, one must be comfortable with his/her strategy, and at the same time, it allows him/her to accomplish their monetary goals. Cheers! 😊

I have been a dividend focused investor for a long time. This does not mean I don't own growth stocks, I do. A well rounded portfolio should be a mixture of both categories. I invest in the market, but never put all my money in market.

I agree a lot more in Boon Tee's views. Thanks to him to speak the thoughts of my heart. I find the intrinsic value calculation is just a "masak masak" calculation. If you ask Elon Musk his Tesla intrinsic value, I don't think he can give a correct answer. In fact, no one can.

@BoonTee

15 күн бұрын

Thank you for your comment! DCF is still an exercise worth doing, it helps to crystalise our thinking and make an independent assessment on the valuation. But we just need to remind ourselves that the margin of error will be substantial, because it is very hard to precisely estimate the future growth rates and ultimate size of the market

It depends on the finance laws and other fees of the country you are living in, if theres no tax on dividend and capital, then in theory both capital gains and dividends are the same. If theres broker charges like commissions and platform fees then maybe dividends has a slight edge since whenever you buy and sell, your broker profits but dividend given to you wont be charged a commission

With regards to the theory of drawing down retirement funds as opposed to dividend, wats everyone’s view on example 4,000 shares of TSLA total $1m and need to draw $50k yearly, compared to receiving $50k dividend. I just wan to ask psychologically, selling 200 shares yearly, maybe lesser when price goes up and more when price drops, in practise, does the 4% rule stresses u when u kept seeing the total number of shares dropping yearly even if the total value might be higher in comparison? When comparing between local banks and REITs, I dun quite agree when rates fall, banks will not do as well, bcuz if I were to look at period between 2009-2014, DBS price went from $7 to $18 while REITs on average also about doubled in price with slightly better yields. Every cycle is different, but imo banks have more flexibility to look into strategies to navigate different market environments while REITs tend to be constrained having to pay 90% out as dividend and possibly raising rights issue.

@KeithTan308

16 күн бұрын

Most of us into SG Banks are getting dividend in excess of 5% as we have built up our position over the years where banks were cheaper. Even if banks roll back the dividend by 50%, we are not happy but are ok. We trust the MAS and the Lee (OCBC) and Wee (UOB) family to ensure the banks pay are well regulated. You need certainty during your retirement years. Not everyone is a Adam Khoo / Mr Loo with multi-source of income.

@BoonTee

15 күн бұрын

On your first question, if the share price drop sharply and you sell more shares to get the same amount of payout, you might exhaust the entire holding in short few years, and subsequently even if the share price moon you don't get to enjoy. This is the risk of drawing cash flow from risk assets, particularly true for single stock or concentrated portfolio

@andyho2059

15 күн бұрын

@@BoonTee 👍🏼 So my point is questioning on the execution based on tis theory of 4% drawdown on investment portfolio. Bcuz in practice, it’s a lot more complicated compared to dividend play tat majority of ppl won’t be able to manage. Just wan to point out the challenge for ppl who are thinking of going the drawdown route.

@Longtermalwayswins

14 күн бұрын

I stopped when i read 4000 shares of tesla at 1m. I think the intent of the question is good but the content of it is just totally not feasible. With this much into one stock is asking for trouble. This amount of concentration risk should not be kept over a long period of time. If tesla dips sharply, you can forget about the 4% rule. Right now you be happy if there isnt a 20% dip.

I agree with Boon Tee, just looking at the price chart will think the MAG 7 is super overvalue. The growth still increasing for the MAG 7, the PE comparing to the growth I also think it is not a bubble stage. I believe in DCA for the strong companies weekly or monthly, if there is a pull back to those stocks we can double down on the DCA. Constant buying !

@BoonTee

15 күн бұрын

Discipline execution is key to success. At the same time need to be emotionally prepared for volatility. Most precious resources is time and patience

I rmb CK say something like looking into/ consider buying tsla around $140. Did you buy in ?

@BoonTee

15 күн бұрын

Let me ask him

@REDREDStrawberry

15 күн бұрын

@@BoonTeeplease ask him that on the next podcast. 😊

SG REITs as an asset class was born just pre-GFC as a way for property developers to recycle their capital and sell to retail investors their buildings at full valuation. It did well throughout the low interest rate environment but as a result, many SG investors lost sight that true wealth was being made from companies with intangibles (software and IP) rather than tangibles (land and buildings). Agree that REITs may not be great for a long time when bond yields are already so much higher.

@BoonTee

15 күн бұрын

very well said

@MrBluehorizonsugar

15 күн бұрын

But it’s a good time to accumulate more units

@andyho2059

15 күн бұрын

Well said but yet I have some minor disagreement bcuz as wealth is made from intangibles, it translates to assets appreciation ie lands and buildings. As for the comparison of REITs to bond yields, it’s more of an interest rate cycle, which high rates benefits bondholders but a reverse in environment can benefit REITs from the woes of bonds. Basically it’s more of a choice between shorter term certainty vs longer term uncertainty profile.

I would say US is expensive but not overvalued bcuz as global economies recover from previous inflation crisis, companies can continue to do well, and they can get cheaper despite higher share price. But I hope we can see more market broadening as I feel value investing is dying, investors are getting punished for being knowledgeable and picking undervalued stocks bcuz today market is becoming more of momentum investing and indexing. Everyone are crowding into the same stocks. I dun expect a drop, more like a rotation as wat we saw with TSLA. A modest good delivery numbers got the stock pumping almost 50% in 2-3 wks bcuz market kinda running out of stocks to pump even higher. 1 risk I see for M7 is a Trump election. Not saying Trump as president is bad for stocks, it’s just headwinds on the mega caps. - Trade tensions, I believe Trump will impose more tariffs on China, try to get Europe to contribute more money towards NATO etc. When there’s trade tensions, mega caps having global business exposure will see some uncertainty from counter measures against US. - Previous presidential term, we do see Trump trying to get mega caps like AAPL etc to bring their cash overseas back to the US. I do see the mega caps getting more politic influence issues. - Particular to NVDA, biggest risk I feel is a very restrictive policy towards business to China due to cyber security and technology advancement under a Trump regime. NVDA faced some issues Nov 2023 and they made some changes to the products for China orders, but I not sure whether a Trump regime will be as smooth. Just add some uncertainty there. But not all is bad, bcuz Trump subtlety mentioned he will end the Russia Ukraine war even before he takes office if he is elected during the Presidential debate. Just a long 2 cents. Good luck to all 🎉

@BoonTee

15 күн бұрын

Good stuff

Very good discussion. Buying REITs is the same as investing in a property, not only the yield is important, the appreciation of property value is more important, any negative property transaction will be impactful and detrimental. What kills a REITs is often the devaluation.

AK is into dividend investing, this guy is brilliant. He is into banks now.

@money3ss

16 күн бұрын

Agree. 😂Opening Expression like I Quadrant

@Longtermalwayswins

14 күн бұрын

Nah. He isnt. He probably would have done even better if he had gone with just a simple index fund. But since he has past that time now its way too scared to go into taking risks and so went with dividends. However, even that is just as risky. So end up going for least riskier one which are banks. Natural for someone of his age who have everything to lose and nothing to gain for taking risk with a very small portfolio of his.

Every Financial Product has different needs and appeal. I invest in USA stocks like Tesla. But 70% in SG (3 banks and Tbills ). Let me say I sleep well at night compared to my friends who invest in US stocks like Mag 7. Reason: We are retiring soon. Our risk appetite is not as high. While you guys may have run-way to survive a NASDAQ/SNP500 crash, people my age may have to go drive taxi or depends on children if the US market tanks.

@BoonTee

15 күн бұрын

I invest in Mag 6 (exclude Meta) but I still sleep very well at night 😂

@leenathayil2039

15 күн бұрын

@@BoonTee - that's because you are young and have a long runway to retirement.

@BoonTee

15 күн бұрын

@@leenathayil2039 I would like to think so 🤗

@nlee7980

15 күн бұрын

Which is why investment horizon and risk appetite for that particular pot of cash is crucial . I have a 3 pots of funds, from low risk to high risk. Working well for me to sleep at night and also ride on euphoria when us shares Chiong.

@BoonTee

14 күн бұрын

@@nlee7980 very nice

Please change your video title to be more respectful of older people who are investing in dividend stocks. Please mention that the stupidity of divided stock is for people below 50 because you are offending older people who are investing in dividend stock to preserve their wealth. Also, think about your diverse audiences who are watching your video. Be mindful and respectful.

@Xamael666

16 күн бұрын

Exactly!! Especially coming from the guy who all in China stocks 🤣

@KC-ir9iw

16 күн бұрын

KZreadr‘earning are measured by the no of views. Hence they tend to sensationalize their title to focus on their earning rather than maintaining their conscience even if the title discriminate others

@rayne5368

16 күн бұрын

Yup, maybe change the video title to "Why dividend investing is concerning"

@Smallgyucow

16 күн бұрын

Kelvin started with dividend investing, since his pivot to chasing tesla he has been bashing on dividend stocks..

@andyho2059

16 күн бұрын

U need to chill, they are not saying dividend investing sucks, the title is a question mark and exclamation mark hinting tats the common consensus of ppl they interacted with. Thru the entire vid, they didn’t insult ppl who are investing in REITs or other dividend plays 😅

Can you guys reveal your Growth portfolio and discuss. Can you also reveal future Growth stocks based on which you say that Growth strategy is better than Dividend strategy. Thx.

Ha. I like this follow up. Commuting to work

I think there is no right or wrong answer. Just keep investing and do not stop, whether it is for growth or for dividends. Lessons learnt along the way. If one is poorer, should adopt a higher margin of safety. Those who are richer can afford to buy at a higher price and be more aggressive in capturing more assets that are out of reach of lower net worth investors. That is why there is a segregation between HNW and normal retail investors. HNW can do more risky stuffs like aggressive takeovers before the normal retail investors come in. I am the normal type of retail investor, so I will try to have more margin of safety before investing. It is slow process of wealth accumulaton but it is fine. I will think twice if I want to invest into a bubble. If it pops, I will die first before they die. Do not have so much capital to spare. I think we all have a role to play in the market. But just be careful in playing the market.

@BoonTee

15 күн бұрын

Slow and steady is the way!

reits is an exit plan for building owner . Sell bit by bit.

REITs and Growth counters are totally 2 different counter, same for comparing REITs vs Bank. Reits is like the analogy of a person buying a private condo to rent out. Straightforward understanding.

SG ppl say "meh-cro", Malaysian ppl say "mah-cro".

@BoonTee

15 күн бұрын

LOL

Love the discussion so much ❤❤!

Fantastic video, you work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires

@rayne5368

16 күн бұрын

Lolx.. how to be a multimillionaire by trading? You can lose all your money. But then again, please enlighten me further.

@BoonTee

15 күн бұрын

Who are you referring to?

@fendermon

15 күн бұрын

@@rayne5368 Frequent trading in a bull market is like running next to a bus..instead of getting on it :)

Keys to investment: - Know the seasons of the sectors - Understand the companies that you are investing - Know the value of the companies - Managing risk. - Know when and why to sell. - Take calculated and not foolish risks. During COVID crisis in 2020 most of the businesses were badly affected. I had identified Banks stocks. DBS sold down to below $20. At $20 dividend yield is 7.2% Well very happy to switched as much as possible to mainly DBS and not counting the loss. Crisis yet generating higher cashflow. In less than a year capital gain. DBS Profits * 2020 = $4.72 billions * 2021 = $6.81 billions * 2022 = $8.19 billions * 2023 = $10.06 billions 1Q 2024 profit increased to $2.96b, increased by 15%. QoQ increased by 26%. Dividend increased from quarterly 36 cents to 54 cents plus 50 bonus dividend in 2022 and bonus share 1 for 10 with no change in dividend. I’m still bullish on Banks especially DBS. All 3 are still trading at fair value around 9xPE and 5.5 to 6% dividend yield. Don’t read too much on interest rates falling. It only start to increased in late 2022. Internet banking had change the banking system. You are the CEO of your portfolio. So make your money work and don’t work for your money. Investment is about generating cashflow and profits is a bonus. Investment not speculation. Power of compounding - multiply not add or minus. Investment is about generating cashflow.

@Longtermalwayswins

14 күн бұрын

Investment isnt JUST about generating cashflow. Its about building wealth and it comes in many forms. Investing in local banks for dividends is one way but to someone who prefers capital appreciation, its not really worth their time. For dividends without taxes yes. Be discerning and not stay in an echo chamber

@ngricky3085

14 күн бұрын

Cashflow is the cornerstone that enable us to score muti-baggers overtime. Cashflow is the life line in any business and in investment. Traders, speculators or gamblers will never able to because they will not have the patient and are alway ready to take profit. Investment math: Dividend plus profit, understand the power of compounding. All these are through experience.

@Longtermalwayswins

14 күн бұрын

@@ngricky3085 totally agree. Cashflow is important. All i am saying is that there are many forms of investment returns. Gains from risk averse diversification is also another method of accumulation. Actually once a person have a huge cash buffer there are even more ways to play the income game. Leveraged lending and corp bonds are also very impressive cash flow game.

It is a good discussion. Personally I think the title doesn’t befit the discussion. Glad that the subtitle now ends with question marks.

Is Michael Burry shorting the market again?😂 The title of the topic might offend alot of people. Different people have their own preferences and risk on investing, nothing is wrong and nothing is stupid by the way

2:32 provided no market crash lol.

Please change the title. There are people who use dividend strategy and it works well for them. Its really a cheap take on click bait.

@leenathayil2039

15 күн бұрын

agree! :)

@fendermon

15 күн бұрын

I find the title funny. It's a valid question.

@taeyeonist1462

14 күн бұрын

not happy don’t watch

@Deeep_ftheta

13 күн бұрын

But clearly is stupid

@jimtong

9 күн бұрын

@@taeyeonist1462 Yah, I did not watch.

Why comparing banks n reit? Both are equally important for dividend strategy in sgx. Buy which ever is low. You guys really need to up ur knowledge.

Investing is personal! So whatever works for the individual is what matters

thanks for the video

Good discussion

Gppd discussion. Do smell some gunpowder in the air.

Conclusion, DCA ... Lol

CK is luckiest one among you all, so you and time is on his side, just invest, doesn’t matter ATH or ATL, let the compounding do its magic. S&P can go to extreme Euphoria once again, we are not even close. The sign says it all, most of you say it’s overvalued, many commentators a says too, that’s a sign that it has more leg to run. History repeats again..maybe..somebody was asking what’s my portfolio size and holdings, 7 figures, now 35% cash , rest in techs, Meta, pltr, goog, tsla, sofi, LuLu - in the weightage order.

@andyho2059

16 күн бұрын

BagholderPod pls invite this guy onto the channel 🎉

@Longtermalwayswins

14 күн бұрын

And you dont have any etf? Are you still accumulating or very young? When i was still in 7figures i was already heavy in index. Dont think its sustainable to keep a stock picked portfolio beyond 2mil

@thealchemistinsearch

14 күн бұрын

@@Longtermalwayswins i agree, thats why cash up over 35%, not in ETF at all and I wish I was simply invested in S&P and dont bother. But i have outperformed S&P over YTD and in last 1 year and since inception of my account. I am 39 this year. Now setting up to clear mortgage and already hit FRS. IBKR gives over 4.5% for cash now so will hold cash set aside for now. Looking forward to slowly scaling into S&P.

@Longtermalwayswins

14 күн бұрын

@@thealchemistinsearch good strat. Park liquidity for deployment in ibkr first. Likely wont see a major correction but a pullback should come q3. Can go in fast from your wallet in ibkr. Definitely have to hit frs. Solid planning! Im impressed you beat the market for many years. But for a longer horizon sake, do consider the possible scenario for the reversion to happen. You dont wanna be caught off guard when the gains regress to the mean eventually. Have a transition plan too just in case. Better safe then sorry

@thealchemistinsearch

14 күн бұрын

@@Longtermalwayswins yes indeed, many investors do struggle with the idea when to exit/sell, everyone seems to know when to buy/get in. In my opinion, having that clarity is very important, for me i use my target levels as milestone to wean off from the market, targets like paying off mortage, hitting frs, paying off/secure for kids education, pay off terminal illness/death related insurnace etc. Yes, i have positions that 3x after i sold, but the idea is to hit your targets. Have those targets, rest will fall in place. There will be always someone with bigger portfolio, bigger gains than you..there will be also someone with huge losses and miserable plight..the choice is yours! Good luck investing!

After this video, next 2 days reits rallied.. talk about the timing 😂

Lol everything is stupid. Just get snp500 etf done

@fendermon

15 күн бұрын

S&P does make a monkey out of most people. A while back my sister took her life savings to a professional money manager. He decided the market was too expensive. So, she has been sitting on a small mountain of cash for the last two years at least.

@dwichiesa

14 күн бұрын

@@fendermon lol

@Longtermalwayswins

14 күн бұрын

@@fendermonsad

@Longtermalwayswins

14 күн бұрын

Yes 🎉

Second 😊

I don’t miss a day a week kisluxbag This show..