Wednesday, June 07, 2023

Initiated Position in World's Best Bank


Today I decided to initiate a small position in DBS (SGX:D05).

This is to recycle the capital I received from divestment of Sembcorp Industries yesterday.

DBS is the world's best bank and currently it yields around 5% despite at more than 40% above book value at $21.

Ideally I would like to get DBS at below $30 per share however my fingers are itchy and getting impatient. It is also very difficult to time the market.

Besides, the looming dividends in Aug 2023 are almost certainly guaranteed. I am also eager to replace the great business I disposed yesterday with another great business and I believe DBS is the best candidate to replace Sembcorp Industries in my SGX income portfolio for the long-term.

DBS has a great track record of rewarding shareholders consistently and steadily with growing dividends and capital gains over the past decades. It should continue to do well in this sustained high interest rate environment clouded by noises and uncertainties.

Should the share price of DBS plummet below $30 or $28 in the short future, I shall add more shares to increase investment in this world's best bank.

Thank you all for reading. Stay focused and remain steadfast as always!

With love and peace, 

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