11 October 2013

Bought Cambridge Industrial Trust at S$0.68

Bought 10 lots today, wanted to buy with CPF too but DBS Vickers didn't raise my buy limit, I think maybe it's due to the SingTel fire, something wrong with their email, should have called them but was stuck in a meeting, or wait Monday see how, who knows it will drop, then even better to enter with CPF.

I like this trust because it has many properties in Singapore and the dividend yield is high at 7%+ and has an increasing trend so far, was thinking of buying Sabana or Lippo Malls, but their prices increased beyond my target, I thought maybe as we get closer to the US debt limit deadline on 17 Oct STI might go down, but well, it kept going up since 07 Oct, I guess people are very sure the US won't default on their debts.

But imagine the US went on to default on their debts, I think all stock markets will crash, so what will I do if STI crash? I'll wait, I won't cut loss, no point, instead I will buy more if I have spare cash, actually it doesn't really matter since I have fully paid for my shares, I'm not doing contra so I have the holding power.

I remember in late 2007, I bought this unit trust called "Fidelity South East Asia Fund (A-USD)", I bought it at the peak price of S$10+ using my CPF through the recommendation of a friend's colleague, then a few months later, world markets crashed, I saw the price drop to a low of S$2+, I didn't do anything, I waited till mid 2012 before I sold at S$6 or S$7+, but I still lost money, imagine that time I have the money to average down, buy more at S$2+, I could end up making a profit instead. Looking back, that time I was ignorant and poor, but I learned a few valuable things that no money can buy.

1. Always keep myself updated on world and business news.
2. Never trust other people with my finance.
3. Never buy a product without knowing it.
4. Never buy unit trust (again).

Luckily in 2006, I bought a China unit trust through the recommendation of a good friend (his colleague was the one who recommended me the Fidelity fund at peak price), forgot the name but it was during the China boom period, it's like anything you buy related to China will earn you big bucks, I earned enough to breakeven from the losses of my Fidelity fund, with CPF interest factored in all the way to 2012, I was damn lucky to get through the worst financial crisis seen by mankind without losing an arm or leg, but at time I read of people losing their entire retirement funds, 5 to 6 digit sums, very sad.

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