23 June 2014

My World Cup Team (of Dividend Value Stocks)

Warren Buffet in several of his talks cited a hypothetical situation for the audience to consider. If you only have a ticket on which you can only punch 10 holes, and each of these holes represent one stock you could invest in, and you can never change your mind thereafter for the rest of your life, what would you choose?

[You can find some of these videos of the talks on YouTube.]

Well, it's the World Cup season right now, so in the spirit of this global event taking place in Brazil, I shall extend that to a fantasy soccer team of 11 first team players. What would my first 11 be for a team of largely dividend-yielding samba stocks?  

I am going with a conservative and defensive oriented 4-4-2 formation.


There can only be one goalkeeper. This guy has to ensure that the opponents would not score and is the last man. For this, I would go with (1) OCBC. A big strong and friendly bank to hold the last line.


For my defenders, I'm going with the two things that are the cause of  lots of heartburn - property and cars. The main reasons for our high headline inflation. Defensive stocks with high yields.

For property, I'm going with a couple of REITS, namely, (2) Capita Commercial Trust, (3) Capita Retail China Trust and (4) Mapletree Industrial Trust.  So that gives me 3 REITs covering commercial, retail and industrial properties. 

To round off the fourth player, I would go with (5) Vicom, a proxy play for car ownership.


Midfielders need to control the play. They have to create opportunities for offensives, and at times have to roll back to the defensive. For this, I would go with (6) Boustead, (7) Hour Glass, (8) Kingsmen Creative and (9) SATS.


For the offensive play, I am looking for potential value-growth players that may not be as yet high yielding but have the potential to go far. For this, I pick (10) Global Logistic Properties and (11) Yangzijiang. Exposure to China, Japan and interestingly Brazil. 

It's pretty much a 80-20 rule. So that rounds up my first 11. What's yours?

[Disclaimer: I hold all the above stocks. But this is not a recommendation to buy any of these. Do make your own assessment before investing, always.]


B said...

Reits for defenders, that sounds to me like you are having David luiz, Michelis and glen johnson on the team ;) all attacking minded defenders.

Lizardo said...

Attacking defenders, defensive midfielders. Isn't that a great oxymoron? Balance. Or Zen if you prefer.