Names or numbers?
In the past, perhaps 1-2 years ago, you might name telcos, healthcare/ heathcare reit?
The 3 telecoms are suffering from investors' anxiety without real confontation from TPG. Having another player at the table has lead to some analysts to shout which company might be merged. Is Singapore market too small for a 4th Telco? Only time will tell, but if u tell someone on the street now that M1/ starhub is defensive, but for the dividends and its cash flow, I am
Not sure if u get the same reactions from 2 years ago. Note that I dun think they are bad investment, I am vested in M1. I am questioning defensive.
Healthcare is evergreen with the aging population in Singapore and command lofty valuation for a long time. (Anything above 30 is lofty in my opinion, if growth doesn't pan out) I think many think of health stocks as growth stocks instead of defensive stocks. It might have a slightly defensive business but it might not have a defensible market price. I got confused sometimes, but I have not touch healthcare stocks yet because the valuation made its defensive business somewhat indefensivable. Again, not to say it is not a good investment, if with poor sentiments you found a company that is falling and falling with its growth prospect still possibly intact. I am not telling which is in my radar.
Wide-moat businesses used to refer to those with a commanding monopoly or market share. I would think that Telcos with the 4th Telcos is still a oligopoly, with data market set to become even bigger, but it's scaring the shit out of investors. I wonder aloud why comfortDelgro investors, like what BT columnist pointed out, are thinking it will fare better? I agree with columnist, it is going from market share leader with a few small fries to also perfect competition of car rental. Unless regulation increase the barrier of competition, even if the tie up with uber is successful, rental still has some room to fall. Renting a car is $60-80 when done privately, still a big 30-50% cheaper than what comfort is charging cabbies, and I have friends that drive grab or uber, that like it as a filler option, earning extras and managing their commitment , even with a relief hirer, a conventional taxi driver is like a full-time job. The competition is not just on price alone.
How about SPH, SGX and Singpost which has a local monopoly yet to be broken? The defense of a monopoly moat is broken. I dun want to be a broken recorder on disruptive technology. Again, I am watching the above companies, they might not be poor investment.
Is there really something defensive? How about Gold? I hold gold for a while, it seems like a good hedge for Tensions.
I would think 2 things are defensive. 1) Cash but zero returns.
2) Growth, and dividends paying companies. Companies that increase dividends sustainably is the best defense. Doesn't mean the price won't drop but u can sleep knowing that market will have to pay for that cash flow going back to investor hands. But the caveat is always make sure that the price you bought is defensible too.
I would think leveraged instructments with sustainable yield of 7% is fair and attractive value. Anything better is a bonus or that you misjudge the "growth" that is - defense buffer.
As for net cash company that is still growing, I would think anything above 5% yield is attractive.
This is just sillyinvestor agar agar thinking, you can calculate all the % of growth and the DCF etc.
But with market showing so much character ignoring Kim, think he is hopping mad if he has shorted the markets thinking his blasts will trigger a lasting sell-off.
What is defensible to u?
Or perhaps you think of defensive like defensive actions and mind?
But we must not kid ourselves lei. Let me test u. "Nimble" a term make famous by AK. It's a defensive tactic, test water. Water hot, run. Fighter another day.
If u have 20k,(e-book teaching people how to invest with first 20K) how much u invest is consider nimble?? 1% 5% or 10%
Please la. 20K how to nimble?
Lol. If u say 1-2 % is nimble. U got 200-400 to play. The commission buy and sell will wipe 10-20% of your return le.
That is not to say we should not invest if we only have 20K. But we should call it as it is. We "hoot" to learn how to market works and pray.