• frugal

    Why I withdrew from Stashaway

    Let me put a full disclaimer first. Stashaway is a good platform. I like it. I think it is suitable for most beginning investors who want fuss-free asset growth. I just do not think it is suitable for me, which is why I withdrew from Stashaway. In January this year, I came across the robo-advisor, Stashaway. It managed your assets for a low cost without you needing to know anything. With a promo code, I decided to give it a try for the first 6 months, since they managed your money for free for the first 6 months. At that time, I had very little knowledge of Stashaway. Since the…

  • frugal

    Why did the market drop and what should you buy NOW?

    On Thursday, 3 September, the S&P500 index dropped by 3.51%. This market “correction” continued until Friday, 11 September, resulting in a total drop of 6.70%. Many investors are puzzled with this drop. What made the market drop? Why did the market drop? Should we buy into the market now? Will the market drop even more in the future? What should we buy now? These are some questions in the heads of many investors. This article will seek to answer these questions and I give my personal take on this. What made the market drop?  This drop was mainly led by the fall in tech giants such as FAANG. Take note…

  • frugal

    Should you take the scrip dividend? (DBS)

    On Monday, I received a letter from DBS. (This is how it looks like.) It was to inform me of DBS’ latest scrip dividend scheme. Ever since DBS announced this, I got pretty excited. As a new investor, most of my “gains” were from capital gain (the price difference between the stocks you sold and bought) or dividends. Although I am pivoting my strategy towards a lower exposure to dividends, I was still curious what this scrip dividend scheme will provide for me. Naturally, I googled online. The first result was from the DBS website itself. So the Scrip Dividend Scheme (SDS) “provides shareholders with the option of receiving their…

  • frugal

    Manage your cash in ELASTIQ (Limited Promotion!)

    I used to be a happy owner of my Standard Chartered Jumpstart account, back when it had 2% interest rate. But now that it has halved, I had to look for alternatives. Luckily, insurance savings policies (such as ELASTIQ) were rising in popularity. Outside of Singlife’s 2.5% which many people already religiously swear by, I still needed to store my excess cash outside of $10,000 somewhere. After looking around, bank accounts did not cut it, fixed deposits posed liquidity problems, Singapore Savings Bonds just were not worth it. I considered cash management solutions such as Stashaway Simple and Endowus Cash Smart. However, their returns did not seem very exciting. Stashaway…

  • frugal

    When does being frugal becomes cheap?

    Many of us struggle with being frugal. We want to save, yet we do not want to be called “cheap”. As derogatory as the term is, I believe that there is nothing wrong with being called “cheap”. However, there is a fine line between being reasonably “cheap” and being calculative and “cheap”. This is my personal take. It’s ok to be cheap on yourself Cheap out on yourself. It’s okay. Nobody will judge you. Nobody will care that you went for the $1.15 budget loaf of bread instead of the $2.00 Gardenia bread. They both taste similar. What’s the difference? In places where you can save, save it. There are…

  • frugal

    I am young, should I practice dividend investing?

    As a young investor (19 years old), some of us may be enticed by dividend investing. The idea of cash flowing into your pockets because the company is doing well just sounds heavenly. Admittedly, at the start, this is how I perceived it too. Dividend investing seemed like this safe haven where you just collect blue-chip stocks and let the income roll in as time passes. Given that they are blue-chip companies, they are likely to withstand crises… right? There are a few kinds of investing. They are passive index investing, value investing, growth investing and dividend investing. For some reason, people seem to love the idea of earning passive…

  • frugal

    Can we make money by buying companies that don’t?

    What am I talking about? Sounds absurd right? Well, not to many traders who trade based on investors. There are many firms which are deemed to have “growth potential” and thus should have a huge upside and many people want to jump onto the bandwagon so that they will not “miss out” and be able to catch the next “Amazon”. But it is not like that. That is not how stocks are worth. Jim Cramer, the host of Mad Money, has mentioned that the “electric vehicle, minus Tesla, has started to burst”. During the surge in zero emission vehicle firms 2 months back, companies like Nikola were riding the wave…

  • frugal

    11% rise in revenue, is Apple (AAPL) still a buy?

    When investing in a stock long term, you should focus on the company’s fundamentals. To break down the company’s fundamentals, I like to look at their qualitative and quantitative parts. For the qualitative part of the company’s fundamentals, it would look at their qualities, who they see as competitors and how they work as a company moving forward. For the quantitative part, it would be looking at their revenue, net income, profits and year-on-year growth over time. I will pen down my thoughts on Apple, one of the most valuable publicly traded companies in the world, talking about their fundamentals and explaining why I remain invested in them. Qualitative Looking…

  • frugal

    Why you should (or should not) diversify?

    Many great investors have commonly repeated this common saying. “Diversification is the only free lunch (in the world)”. Despite many investors preaching this truism and many of them practicing it by buying index ETFs or owning 30 to 40 stock portfolios, there is still a case against diversification. Warren Buffett, otherwise known as the Oracle of Omaha, has famously mentioned that “diversification is a protection against ignorance”. Wait, that is contradictory. This article will seek to explain the cases for and against diversification. Lastly, I will end off with how I practice diversification in my own portfolio. Pros Don’t put all your eggs in one basket This is a common…