Persistent high inflation of everything from food, transport, housing and utilities are essentially diluting value from all walks of life. Many have blame the war, supply chain issues and pandemic for this problem. However, I believe the truth lies with the record monetary stimulus the world had ever seen.
Warren Buffett recently reiterated that in the environment of high inflation, the best thing one can do is to be exceptionally good at something. The best doctor, lawyer or barber will still be able to charge prices above inflationary rate due to the scarcity of such skills. The same can also be said in investing for companies that are the best in their fields.
As a large portion of the SRS funds consist of REITs and so the question to ask is whether REITs will continue to do well in a high inflationary environment. The most important factor lies in the skill the REIT manager.
The exceptional REIT manager will be able to first increase revenue through careful planning of tenants mix that position rent to scale much faster than inflation. Second, the manager will also carefully devise capital management strategy to cater for all likely interest rate scenarios.
In a difficult environment the skill of the REIT manager will shine through resulting in better DPU growth compare to their peers. This skill similar to a good doctor will be worth paying a premium for exceptionally well managed REIT.
SRS Fund Portfolio
The SRS fund portfolio remains stable despite market volatility especially in foreign markets. The fund added additional units in Mapletree Com Trust as well as HS Tech ETF during the month. Q2 dividend started to trickle in starting with $540 from DBS. The bulk of dividend will be receive in May and June which should easily exceed the amount received in Q1.
LATEST POSTS
-
MyNest US Fund Feb 25
Tariff was the key word of the month. Despite the use of the word in every financial media and conversations, the details and any impact tariff may create is still up in the air.
-
The SRS Fund Jan 2025
As the new US president gets to work. The world is anticipating his policies that will likely impact many businesses and countries.
-
MyNest US Fund Jan 25
2025 started with a furry of news and activities that may have further implacations on companies in the portfolio. The 2 key events I kept my eyes on was the following.
-
Jumbo Group Annual Report Review
Jumbo group was a position initiated into the SRS Fund due to my revenge travel boom thesis in Jun 2023. Back then I concluded that Jumbo is well positioned to take advantage of Singapore’s reopening to tourism. 18 months later, business was indeed brisk
-
MyNest US Fund Launch
I started investing in the US Stock Market in 2021. Over a 4 year period, I have accumulated good investing experience and achieved some success in the US market.
-
The SRS Fund Dec 2024 Update
The SRS Fund had its best return in a year since its inception in 2024. SRS Fund value was up 19.4%, excluding new contributions. However, the SRS Fund underperformed its benchmark STI index which drums up a whopping 22% (Dividend included).
MYNEST.SG 