Necessary rules to break

Just bought Amazon and Alphabet, and broke 2 of my rules.
But I think they are necessary, to hedge my fear of them dominating the world.
I have been waiting too long for them to drop, and they did not.
I entered, but not a big portion. Just 1k SGD each.
If they drop, I will buy more of them. I just want to own them first.

What 2 rules? One rule is to buy only when PE is equal to or less than 15.
The other rule is only enter when they are nearing the next support zone.

But for those potential world dominating brands, I can forgo the rule of PE ratio 15.
Because if they are to conquer the world, their earnings will be increasing exponentially in future.
But I will still try to stick to the latter rule, which is to buy again only when they drop to their previous support zone.

What are the companies that I think may dominate the world in the near future?
Amazon, Alphabet, Facebook, Uniqlo, Netflix

Uniqlo

Just entered a buy position for Uniqlo CFD few minutes ago.
This is the first non-Singapore and US share that I own.
For non-Singapore stocks, my purchase lots are usually 1k instead of 3k SGD.

The enter price (blue line) was higher than what I wanted, at 35k yen.
Maybe I am eager as I have not yet purchased any investment for a long time.
But between my bought price and ideal price, it was a difference of around 30 SGD.
I also bought more than I wanted to, around 1.3k rather than 1k.
But it should be ok, as the transaction fee is high, and it is better than buying less than 1k.
I will buy another portion if the price drops to the next support level which is around 28k.

Financially, not sure how certain is it, 3 mths net income is already more than net income of last yr according to the above.
PE ratio is around 53. But as this is one of the titan companies, I am not really paying too much attention to except for the technical aspect.

Technically Uniqlo is still good value.
I say that from the perspective that the highest price point was at 60k in 2015.
It is a company I personally adore, along with Amazon and Google.
Most of what I wear today when I hang out comes from them.
The values they have are also the values I like. Simple and quality.
When I go to their flagship store in 313 orchard, it is always bustling with customers.
And I often see foreigners coming to that store and buying a big pile of clothes.
I also love the way they treat their staff and also social issues (from my perception).
The way they treat their staff can be comparable to Macdonalds.
So today I am happy to have a stake in one of the titans.

O and

Continuing from the previous post, Uniqlo too.

Titans

Amazon, Google and Facebook are titans of the world.

I have not bought any due to my principles in investing.

Especially the fundamental principle of buying a company at PE ratio 15 and below.

But I need the 3 stocks to alleviate my fears that they will take over and disrupt the world in future.

And owning some of them will hedge my future when jobs may be scarce, and best jobs will likely go into tech industries.

Amazon has the power to destroy many jobs, and if the company that I am working at gets destroyed by them, at least I am slightly part of it. Same for Google.

But not to get too carried away, do note that they may not be forever.
There are tech companies in China that may be even larger, more intelligent that might topple them.
So don't assume something forever. But if you are fearful of some companies at the moment, try to be part of it.

For these 3 special stocks, I need a different strategy.
In terms of my portfolio, I own small portions of Apple and Tesla, but in my long term view, they are not going to be as dominating and powerful as the 3.
Actually I do not really own Tesla and Apple, I buy CFDs from IG.

I bought Tesla as there was no PE ratio (negative sales).
But I believe in Elon Musk, and I love his vision of a cleaner world (I guess there are others that may have the same thought of cleaner world as me).

Apple I bought at the time when their PE was 10.
I bought after reading an article by the Tim Cook, which talked about a new circular office, and some sustainable future thingy.

The strategy for these 3 titans will be a mixture of my currency trading days and investing.
I will use the simple resistant and support line strategy, which I was using previously.
This time, it will really be testing my emotional control skills. And this is a trading which I really believe in and understands.
It will be simple, buying them when they fall to the previous support line.
I have drawn the resistant and support lines for the 3 of them, and currently none of them seem close to their support zones yet.
Emotionally, even though I am desperate to own them, I cannot rush into it.
I need to stick to my rules and strategy.
There will always be other opportunities to focus on, such as a better job or other stocks, as the world cannot rely on them only.
I may have to wait months, or many months, to be able to start accumulating them.
But for now, I just have to carry on doing other things. And meditate or something.

Centurion, better lives for people slightly less fortunate

New interest in another company.

Centurion was a CD producer, and still is.

That is opposite of what I like.
I like new technologies.

But the company is bold enough to transit into something very different.

They are the only company in Singapore that are doing workers' dormitories.

Which is also something I like.

I like the idea of a company building cheap and better accommodation to help people that are in a worse position than me.

I like that idea that my money is use to do some good for other people.

I like the business idea, and next is the financials behind the company.

Mostly checked my list.

PE of around 8.

Price book around 0.7.

Currently the price is trading at the lowest point in 2 years.

Dividends decent at around 4%.

Income should be growing steadily.

Many projects in the pipeline, including investments into student accommodations in UK and Australia.

But something made me pause and monitor at the moment.

Its debt to equity ratio is 130%.

Long term debt (538m)/ (Retained earnings (317m) + common stock (90m) ) = 130%

That means that debt is 130% of equity.

Warren buffet prefers a ratio of under 50%.

I would feel more comfortable if it is 100%.

So, I shall just keep it in the list and do nothing.

Straco, will I have you?

Currently this is a company that interest me the most.
I was drooling over DBS for some time, but its price has risen too much for me to turn my head away.

Straco is trading at around 0.8 now.
Which makes me unsure if I should buy it.
Its PE ratio is around 14, which is not attractive to me.
PE ratio over 15 is over priced.

from Yahoo

I always use technical analysis when it comes to deciding when to enter.

The closer support zone is around 0.75.

But looking at the chart, it seems to be on a downward trend.

It may be due to sentiments about China economy.

The next support is 0.6, which is the price in 2014.

That level seems more tempting to me.

For me now, I should just be passive.

It may keep going up from here, but whenever I am unsure what to do, it is better to just do nothing.

Why do I like the company?

The business is easy to understand.

It owns a few tourist attraction in China, and the Singapore flyer.

The population of China will keep getting richer.

China wants to shift to become a consumption economy.

When the middle class is richer, they will start to flood these attractions.

I like Straco's mission too.

It seems like they want to promote the environment and history.

I also feel happy owning something that brings joy to people.

I love the idea that money comes from fun and happy memories.

If I visit China and go to one of them, when I pay the entry fee, I feel like one of the many other thousands of people paying myself.

I also look forward to them buying other kinds of tourists spots if I own their shares.

Sembcorp Industries and DBS

Sembcorp ind: I bought the 2nd patch, after I promised myself when buying the 1st batch that I will continue to buy (if it dips to the next support level), so that I do not feel sad buying at higher price.

I liked the company, and they seem to be investing for the future.
They made many investments in other countries in clean energy.
Something that I am also found of. Sustainable and energy good for environment and humans.

I wanted to buy DBS also, one company that I liked too.
The CEO Gupta, seems to be like a brilliant person.
And DBS is the most important bank for Singapore to me.
Singapore will look after it.
Its PE ratio dropped to around 7.
Its dividends is also 4.5%.
Current price is 13+, from a peak of around 20 after months ago.
But these few days, the price rose again.
My target entry is around 12.5 (a bit above major support level).

Another reason for me not buying is that I am also keeping an eye on my leftover funds.
The market can still continue sinking, or crash.
I want to have an amount of money to invest even more if that happens.
I shaved off quite an big portion of savings this month.
I am happy with my purchases.
I also want some security, to have some amount in the bank to take on more opportunities (if there are).

So for now, I will rest a bit and see how things go. It is important to have a certain level of cash in your portfolio.