Motivations Behind Long Position

I am back writing. Well, this interval was due to a resettlement going on in my life. All very exciting stuff.

So as promised, the previous post shared about a counter that i bought or in more industry lingo, went long. Long is simply buying and conversely short is selling.

Hardworking and observant readers will know the counter is Starhill Global REIT.

It is an office/retail REIT that mostly deals with such real estate in Singapore and Australia. I am not new to this counter. I bought it with cash when i first started investing and that position will likely never see profits already. So because of legacy i do keep track of it's developments since 2013.

So the motivations behind the CPFIS decision.

#1. It was sufficiently cheap back when i made the purchase

#2. The counter is thankfully able to generate enough dividend to cover the additional holding cost that the agent bank charges.

#3. Like mentioned in the previous post, the yield (or yearly dividends divide by cost) needs to beat the minimum that CPF OA offers. It was going at upwards of 6.5%. So netting away the opportunity costs of 2.5%, i'll make around 4%.

Of course, there are other counters out there that can satisfy the above three motivations too. So there are actually more homework done to decide firstly, what is cheap and secondly, are the dividends sustainable.

But i'll save that for another day.

For now, it looks like the market agrees with me and have now pushed it up to 77c as at time of writing.

I'll try to generate more content but no guarantees. There's a lot to see in this part of the world.