Smart Reads of The Week

2020-07-08     thesmartinvestor
Smart Reads of The Week

As the curtains come down on earnings season, it is a good time to take a step back and reflect on the broader picture. 

Unfortunately, I’ve seen investors who tend to overreact whenever earnings are released. These investors are the reason why stock prices rise or fall once the results are out.

If the earnings are unexpectedly good, the stock may rise as investors buy more. Reversely, when a company disappoints, the stock may tank as investors sell out. 

But the move up and down could prove to be temporary. 

Smart Investors know that it is not necessary to react immediately based on a report that covers three months of a company’s life. After all, you don’t judge your entire life based on just three months.

That’s too narrow a focus in both time horizon and on one single company. 

To widen the lens, Chin captures the developments in two of Singapore’s major healthcare REITs in his latest article. 

From the article, you should be able to gain a better appreciation of how Parkway Life REIT (SGX: C2PU) differs from First Real Estate Investment Trust (SGX: AW9U).

When you’re done, check out his coverage on retail-based REITs and commercial-based REITs too.

The Healthcare REIT Check-Up: A Good Investment Now? 

As we look through the quarterly earnings report, it is important to take a broader view of the company’s progress. 

In Royston Yang’s article this week, he compared Boustead Project Limited’s (SGX: AVM) order book for every quarter since fiscal 2016. 

From there, we are able to better appreciate the efforts from the industrial real estate solution provider has put in to build up its capabilities over the past few years.

For more, check out Royston’s article below:

Is This Mid-Sized Company an Undervalued Stock?

Beyond individual stocks, David Kuo argues that we should put some thought into how we assemble our portfolios. 

David draws from his experience in a new pick-and-weigh dried-food store in Tanglin Mall to muse about the five hundred quintillion ways he could construct his muesli bar. 

The same logic applies to stock portfolios. 

Meanwhile, Jeremy Chia shares three strategies he uses to manage his own stock portfolio. 

Get Smart: My Secret Ingredient Of Success 

Earnings season might be coming to a close, but the real work of studying companies will continue on. See you next week!  

If you’d like to learn more investing concepts, and how to apply them to your investing needs, sign up for our free investing education newsletter, Get Smart! Click HERE to sign up now.

None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Please refer to the individual articles for stock ownership disclosures.

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