global portfolio

We are adding three US consumer-related stocks based on our contrarian view
(Apr 12): Last week, I talked about why US consumers may well be the key driver for near-term global growth, contrary to widely held views. To very quickly recap, thanks to a decade of deleveraging, in the aftermath of the global financial crisis, US households have rebuilt their balance sheets. Household debt now stands at only 71.3% of GDP, down from the peak of 98.6% in 2007. Crucially, debt ...
Stock options can be made to better align management with shareholders… but not the conventional kind
SINGAPORE (June 4): Last November, I wrote an article questioning whether existing stock option plans were good for shareholders. I have no doubt that the theoretical proposition is valid: that if the interests of senior management are aligned with those of shareholders through long-term incentives, they will work towards achieving a company’s strategic objectives to enhance value. The ...
The perception and consequences of rent-seeking
SINGAPORE (May 21): The Malaysian stock market reacted far better than initial prognoses by most market analysts, on the heels of the shocking — though not wholly unexpected, if the mini rally for certain stocks during the week of May 7 is any indication — defeat of the long-ruling coalition, Barisan Nasional (BN), in the 14th general election. Even the ringgit is holding up fairly well, ...
A once-in-a-lifetime event… an exceptionally good week for Malaysians
SINGAPORE (May 14): Words cannot begin to describe how we feel, sitting here, writing this article with tears in our eyes and hope in our hearts. We had our regular piece all laid out and ready to go. But how could we not write about this incredible, unbelievable event in history? On Thursday, May 10, 2018, many Malaysians woke up (at least those who went to bed, many did not) to a new ...
A basic guide when investing for yield
SINGAPORE (May 7): Buying a high-yielding stock seems like a pretty good idea when we have heightened market volatility. For starters, companies that pay higher-than-market-average dividends tend to have mature businesses that are more defensive and hence, their share price movements are usually less volatile. Worst comes to worst, one will still get a steady income stream while holding the stock ...
Nine Dragons... lowest valuation play on e-commerce
SINGAPORE (Apr 30): Stocks in my Global Portfolio ended mostly lower in the past one week, mirroring weakness in global equity markets. Investors are nervous when it comes to equities, particularly as worries grow over rising interest rates. Yields on 10-year US Treasuries rose above 3%, a level not breached since early 2014. While this is still at the lower end of the historical range, it is ...
Our conviction of DIP Corp remains, despite a collapse in stock price
SINGAPORE (Apr 23): A strong start to the US corporate earnings reporting season is giving beleaguered stocks a much-needed boost of confidence. Worries over geopolitical tensions, trade and regulations of tech companies remain and are likely to keep volatility at elevated levels, but the rebound is a welcome relief. Most of the stocks in our Global Portfolio closed higher for the week, ...
Our Global Portfolio has consistently outperformed in 2018
SINGAPORE (Apr 16): The past couple of months have been one of the most difficult periods to invest in recent times. The big price swings in both directions, which also include some huge intraday fluctuations, can be nerve-racking, especially after the calm we have come to take for granted. What makes it even more difficult is that stock prices are being driven by momentum more than underlying ...
Stock market indices are only good for headline news
SINGAPORE (Apr 9): The global stock market selloff, which dragged many bellwether market indices into the red in 1Q2018, continued to hold sway as we entered the second quarter. With volatility staying elevated amid myriad uncertainties — notably on global trade and tech industry regulations — the question on the forefront of investors’ minds is “Are we near the bottom yet?” For ...
There's room for localisation in the digital world
SINGAPORE (Apr 2): In a week in which fears of a trade war dictated market sentiment and spurred volatility, news of homegrown ride-hailing service provider Grab buying out Uber’s operations in eight Southeast Asian countries came as a welcome change. And not just because it is the largest-ever deal of its kind in this region. I have previously talked about how the network effect and ...