How to invest in Singapore blue chip stocks

by

The mighty STI is officially the worst performing stock index in Asia. Google and you read many post about this. Let me first explain why I think the STI is such a laggard.

Banks

  1. DBS
  2. UOB
  3. OCBC

SREITS

  1. Ascendas
  2. MCT
  3. MLT
  4. MIT
  5. CICT
  6. Keppel DC

Old economy businesses

  1. City Dev
  2. UOL
  3. HongkongLand
  4. Jardine C&C
  5. JMH
  6. JSH
  7. DairyFarm
  8. Genting
  9. Thaibev
  10. Venture
  11. Wilmar
  12. Yzj

Gov related businesses

  1. SIA
  2. Comfort Delgro
  3. ST Engrg
  4. SGX
  5. Singtel
  6. SATS
  7. Semb Corp
  8. Keppel Corp
  9. Capitaland

The banks and the SREITS have done well. Remove these 9 stocks, and the STI chart will look much worse!

Business is not as usual nowadays. It is not easy to make money as in the past. Customers have a lot more choices – online and offline. They expect good service. They expect them cheap or free. And it got to be cool 😉

Companies that succeed are those that create innovative products or services that meets the felt needs of the market. Traditional companies, especially those that employs generals, try as they might, but they cannot duplicate the success of entrepreneurial market leaders.

So how do I invest in Singapore blue chip companies? Invest in Singapore banks and blue chip REITS only! These forms my core portfolio for dividend income.  

I shall reveal my top 9 stock holdings by weightage:

The next image shows my equity returns vs the STI since June 2019.

My objective is to outperform the STI by investing in a diversified portfolio of local banks, REITS, tech stocks, and bonds.

The tech stocks I invest are listed in US and HK. I strongly believe we are in an age of renaissance for technology for the next 5 years at least. Look out for my next blog on tech stocks. I shall share about a little known Singapore company that is bigger than DBS!

  • I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!