Summary of October 2026

Anti AI bubble strategy phase 1: Enhancing the underwater in my holding stocks.

In the previous blogs, I shared about this strategy on enhancing discounted stock that are suffering from a recent pullback. I identified SPGL has currently undervalued because of the rate hiked, I have strong conviction on this hike cycle is a temporary issue because companies will need to renew debt issue in order to operating their business. Right now, this is a best time to buy this company and taking opportunity to increase allocation in my portfolio that high concentration on AI stocks.

I will start phase 2: searching for non-AI businesses during a bloodbath when SP Global carry 15% weightage while setting cash aside and wait. 



SP Global Current weightage: 4.32%

This company is part of my anti-AI bubble strategy, it has been facing a pullback due to interest hike of 25 basis points while SP Global's fundamentals remain unaffected. I believe their customers still need to renew issue debt regardless of the situation, so it's predictable operating income. In the past quarters, there were super investors adding more this stocks at a higher than now. We have margin of safety to add more than them. 

I am aware the price will continue to drop; moderate DCA till the end of the year. Now it's a good time to buy and increase weightage to 15% in this portfolio. 

MSFT

Microsoft introduced Copilot, have full access to the funtionality of word, ppt and excel. I covered in the previous MSFT enhanced CRM and ERP are fusing into Agentic AI to complete daily tasks. Writing a code can easy using Autopilot for users. AI will be moving toward commodity and only strong companies can stand strong able to generate profit due to ecosystem compared to startup AI companies lacking such infrastructure.

Waiting its reach my price target to add more, because I would rather invest AI stocks like MSFT that have a constantly improved their huge ecosystem and keep widen profit margin.

Option activity

Type

Stock

Strike Price

Premium

Expiration

CSP

Sofi

16

0.52

261016

Covered Call

Sofi

19.5

0.26

261009

CSP

UIpath

11

0.22

261120

Covered Call

Sofi

19

0.37

261218

Covered call on Sofi in rate hiking is the best trade that I executed so far. As the stock price going down, stretching far from strike price make me confident to collect premium without closing this contract

As of 30/09/2026

Cash Secured Put on Sofi is part of the wheel strategy. Sofi tends to rebound at $15.28 several time in this resistance after I did some backtest. Net interest income expected to rise because interest hike rose by 25 basis point which bring improve revenue in lending segment however Mr. Market does not seem to like hikes giving bearish toward bank stocks. They had adjusted net revenuse 32% to 35% to align Fed rate hikes. Happy to add into my portfolio.

As of 01/10/2026

Shares Builder Plan

Laser focus on OCBC (fourth tranches) instead as the market pullback start because of bad review from analyst, fundamental still intact. It time to activate war chest only if OCBC continue to drop, considering dca back in DBS at $65 if business remains unaffected by the current macro environment. OCBC should expecting net interest income prolonging their income profit while pivoting to wealth management therefore AUM going to be accelerating rapidly. I see this pullback is a chance to add little more just bear in mind the analyst often sees things in the short-term outlook.

Asean investors should consider investing Singapore market after MSCI downgraded the Indo stock exchange, because SG government pushing higher participation across the regions. Foreign investors should benefit from tax free, high dividend return, stability and strong currency to hedge forex risks. SGX should position themselves as a beacon around the region since Singapore is stable and reliable country to invest. SGX facing back luster  and crisis in the past yet, they’re able to maintain their profit margin. SGX remain strong buy to me since there is push by the government.

The SGX payout ratio has been decrease over times expect FY2026 because the special dividend and DPS, EPS increased, making SGX behave like a compounding machine. The only flaw is that the share buyback is not aggressive.

Fiscal Year (Ends June 30)

Total Dividend Per Share (DPS)

Adjusted Earnings Per Share (EPS)

Approximate Payout Ratio

FY2022

S$0.320

S$0.425

~75.3%

FY2023

S$0.330

S$0.518

~62.7%

FY2024

S$0.350

S$0.550

~62.7%

FY2025

S$0.3925

S$0.570

~65.8%

FY2026

S0.445*(orS0.570 incl. special)*

S$0.710

~80.3% (incl. special)

I will constantly update my thoughts and improvise on Compounding Machines 

Comments

Post a Comment

Popular posts from this blog

Summary of September 2026

Anti-AI bubble strategy phase 1: Enhancing the underwater in my holding stocks. It been a few months since I started finding ways to cushion a potential AI bubble for my portfolio. Starting from the basic is, the moats of the businesses in my portfolio will helps to better understand what I'm expecting before the storm comes. I’m holding lot of AI stocks so the risk of AI bubble is high.  In my portfolio, I noticed SP Global has predictable revenue in both good or bad times due to  legal monopoly business, which make their customers face  higher switching cost . The stock price has been dropping since rate hike, but cash flow and operating income remain solid despite the AI disruption sentiment. Compare to historical rate hikes period SP Global performing well overall maybe is a good time to add more during this discounted season. I will start phase 2: searching for non-AI businesses during the bloodbath when SP Global carry 15% allocation while setting cash asid...
Read more

Summary of my Dividend Growth Portfolio 2025

Image
This portfolio only concentrate on small amount of DCA monthly. As Trump commenced global tariff causing market uncertainty, I remind myself to keep investing on the good fundamental businesses when temporary weakness. I viewed tariff won’t last long so I continued to invest only in DBS because the price seems to reasonable yet slightly expensive. In second quarter, after reading  sheng siong's annual report  on expanding their outlets which align HDB Master plan and upcoming CDC vouchers, may boost their revenues that given me a sense of confident in Sheng Siong future growth and their defensive approach. I just need to remind myself Sheng Siong does contribute massive dividend but the future value and increase dividend are worth to invest in this portfolio. Decreasing DCA in DBS because the price is overprice  while NII start to slow down as the fed cutting rate. The third and last quarter, I continued to DCA in Sheng Siong for its strong fundamental during thes...
Read more

Build a Generation Wealth portfolio from scratch.

Recently, I and my gf discussed about weathering the storm of our future and we concluded that there’s a need to build a portfolio. We are considered a young couple waiting to collect key and we need some funds such as renovation, expenses and protect our downside.  I projecting this fund (building the foundation) as mid-long term 3-5 years. After we should able to proceed growth index or stock pick in small allocation. I believe using S&P 500 as a benchmark is reasonable because the holding majority derives from US and tech stocks. During the drip cycle we need to buy even more than usual DCA to beat S&P 500. I suggested investing small amount of world index as a foundation since she has mild knowledge about investing. World index ETF is the safer to invest passively in the long term which adjust the market cap over time by geographic basis. We aware the world index is not a growth massively than S&P 500 or Nasdaq but it provides us a good sleep during uncertainly. O...
Read more