Mid-year 2025 report

We are in the middle of 2025, there are Trump tariffs and wars in the rest of the world created uncertainties may affect our investment returns or performance. 

My investment portfolio overall still growing despite having heavy weightage of Palantir, which I am still confident to hold. In order for US government to create efficiency on defense sector, Palantir is the only trusted software to organise LLM. The more chaos in geopolitics, the more stronger Palantir will be. There’s some upside awaiting for them to commit in private segment. The valuation is inflating and speculative right now. 

I been buying S&P Global at the range of  $478- $500, refinance and M&A will be the potential drivers to move the credit rating when US rate cut. I will keep buying S&P Global whenever I see there's opportunity arise it'll going to be my core equity in the future, as I consider this company carries strong fundamentals, cash generator and strong cash flow despite economic turmoil. 

In my SG stocks buying list are DBS and Sheng Siong because I believe DBS will still continue to hold 13%- 16% ROE in the future via shares buyback; serving ultra-rich family offices and M&A; loan from housing(based on HDB plan) and prolong inflation rate and with the stubborn US interest rate this will give a predictable dividend yield as I expecting only one rate this year which giving them enough time to pivot their business in wealth management and credit card segment. 

Sheng Siong continues to expand its business in the newly hbd estate. I have read URA master plan on upcoming BTO projects and strong believe that Sheng siong will expanding outlets in those estate based on reading their past strategy and CDC vounchers woo customers to purchase items in SS in the heartland than shopping mall. I remind myself that SS payout ratio is roughly 30% consider a capital appreciation business it keep so much of cash flow as their income war chest while slowly increasing dividends to SH. The employment market is getting weak amid of AI rising and people are cautious on spending therefore homecooked will be a popular choice.

In my opinion, johor deal will not cause real damage in their business considering CDC vounchers; store operating in  new estate around ulu places; JB grocery getting expensive. Sheng Siong is predictable business for investors but I wish Sheng Siong able to explore coffee shop in heartland with affordable rental price.


My thoughts on Sheng Siong and S&P Global:

https://sginvestmentdiary.blogspot.com/2025/03/sheng-siong-fy-2024-thoughts-and.html

https://sginvestmentdiary.blogspot.com/2025/04/s-global-inc.html

Watclist: SGX, MSFT

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