KiasuParents - Parenting in Singapore

Just to name a few:

1. STI blue chip stocks with sound fundamentals for dividend income.These dividends will then be used as passive income for retirement;
2. Corporate bonds like F & N and local banks preference shares for stability & diversification;
3. Maximise CPF special account & medisave account balances;
4. NTUC income shares with par value for stability and good dividends;
5. Other STI component stocks for capital gains.

I invest into business with good sustainable competitive advantage (a.k.a Economic Moat) for both capital gain and passive income

Sigh! Would you consider S'Pore exchange share as blue chips? I m losing money now.

peapot wrote:Sigh! Would you consider S'Pore exchange share as blue chips? I m losing money now.

I consider it to be blue chip. It is stable in general. People who entered the market in 2011 would be losing some money, so you are not alone. But if you are in it for the long haul you can expect SGX to recover.

My investments so far are in:
1) stock market--mainly dividend stocks and blue chips
2) gold
3) endownment and life insurance policies

I would prefer to invest some money in property but do not have enough $power. I'm just an average man on the street.

Seriously I don't find the shares stable at all be it blue chip or not. Everything is going yo-yo! For now, I will hold on to my shares for sure. Money in the bank cannot do anything for you. I need to invest my funds.

peapot wrote:Seriously I don't find the shares stable at all be it blue chip or not. Everything is going yo-yo! For now, I will hold on to my shares for sure. Money in the bank cannot do anything for you. I need to invest my funds.

There is no such thing as stable shares. Just look at SingPost now. Used to be very stable at around $1. Now dropped till 2008 crisis level

Anyway just hold on to shares of good companies. They will recover and along the way you just collect the dividends

daddy2007 wrote:

peapot wrote:Seriously I don't find the shares stable at all be it blue chip or not. Everything is going yo-yo! For now, I will hold on to my shares for sure. Money in the bank cannot do anything for you. I need to invest my funds.

There is no such thing as stable shares. Just look at SingPost now. Used to be very stable at around $1. Now dropped till 2008 crisis level

Anyway just hold on to shares of good companies. They will recover and along the way you just collect the dividends

When I used the word stability, I meant it as a relative term. Whether it is a bear run or bull run, most stocks will be affected, but in general, the percentage fluctuations of blue chips are not as wild as others. Hence, I consider blue chips "stable". However, how stable the prices are also depends on the industry the stocks are in. E.g. a blue chip like Keppel Corp in the shipping industry is more volatile than a blue chip like SPH in the media industry.

There are not such things as stable blue chips stock, it is just relatively stable compared to other riskier stocks.

The advantages of bluechip is that even during recession it will be around unlike the loads of S-chips that kick the bucket already. Based on historical evidence the price of bluechips is always on the uptrend if you widen your horizon from 1 year to 10 year.

You can consider Singpost as it is around .93cts and have been paying out very good dividend, if i am not wrong past 5 years they pay out on avg 6% per year. However the flip side is that it is a sunset industry and will have to see how the goverment is going to turn it around.

Alternatively you may want to consider buying State Street's STI ETF fund, capital gains+dividend is about 10% p.a based on the past 5 years. To clarify i have not bought it before but am considering it.

I just fund my own company will do and buy over some companies that are on the verge of bankruptcy.