Sunday, October 13, 2013

Who’s In The 1,000% Club?

Who’s In The 1,000% Club?
By David Kuo - September 27, 2013

Over the last ten years, six Singapore large and mid-cap companies have delivered total returns in excess of 1,000%.

To achieve this level of return, a share would need to grow at a compound rate of at least 27% a year for a decade. Put another way, if you had bought shares in these companies, your investment should have doubled every 32 months.

Jardine Strategic Holdings (SGX: J37) has been a standout performer in the Straits Times Index (SGX: ^STI). It has returned 27% a year over the last decade. Supermarket operator Dairy Farm Holdings (SGX: D01) has been another exceptional share too. Its shares have jumped from US$1.29 to US$10.10 in the last ten years.

Sharp-eyed investors will be quick to point out that Dairy Farm’s shares have only increased by 683%. However, around a third of the company’s total return has come from reinvested dividends. When these are factored in, the total return is a delightful 1,039% over ten years.

The performance of Ezion Holdings (SGX: 5ME) and Super Group (SGX: S10) have handily beaten the two large caps. Off-shore marine company Ezion has seen the value of its shares increase 47 fold. Meanwhile, shares in food and beverage maker Super Group have jumped 16 times in value. Elsewhere, shares in HO Bee Investment and Raffles Medical Group have returned 1,100% and 1,084% respectively.

Shares that can deliver 1,000% return over 10 years are rare but perhaps not nearly as rare as you might think. Apart from the six highlighted shares, there is a raft of other shares just waiting to join.

That said, whilst it might feel great to have bought any one of these shares ten years ago, that should not be the be-all-and-end-all of your investing.

Sensible investing is about building a portfolio of shares that can generate an acceptable return over the long term. The very least you should aim for is to beat inflation. That is not as hard as it sound. However, you are not going to achieve that by leaving your money in the bank.

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
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