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Showing posts from April, 2016

Boring , compounding , or is it?

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Good Evening!

I got this crazy (honestly .... if i find it a bit "siao" it should be quite siao la) idea that i've delayed over a year or two. Recent events such as my mum falling ill and the recent passing of my 大舅 (Mum's eldest bro) have helped cement the notion of going through with the idea.


THE IDEA in context? A family owned company which buys shares in listed companies with no or low debt and use the dividends to be reinvested together with additional capital contribution on a yearly basis.

I've attached a table below for viewing.  Assuming a yield of 5% P.A. from dividends , excluding capital appreciation , aga aga results are as shown below.


FYI , my extended family is big so can do it on such a scale if not each shareholder contribution has to be larger to obtain such results.




Disclaimer(s):

1) Chart too small don't blame me , zoom in , zoom zoom. Paiseh la , i IT. noob (I provided two snips which should help in understanding the table.)

2) This is bas…