To The Moon

SGX listed Stocks vs US listed stocks. Which one will you invest in ?

Singapore listed Stocks in SGX.

As a Singaporean, why I would not invest in companies in my own country.

Because 99% of Singapore base listed stocks/shares on SGX the prices don’t move much, even after 5-10 years. Buy in at $2, and 5-10 years later it will be still be around $2. If you are lucky raise to $5 ?

What is the point ? But the truth is it may even go south.

Unless you are buying like an institutional buyer with thousands or a million stocks/shares on the company, just to get dividends of 2-5% every year, otherwise i would not bother buying SGX listed companies.

Sad to say almost all the stocks on SGX are of extremely poor quality, with a lot of “poor expert advise” and “false reporting”. Thinking these companies are international. No they are not. Most just set up some offices overseas, maybe some contracts here and there. Market capital is not amazing.

The main thing is the trading volume is very low on SGX.

Many have a misconception that Singapore listed stocks are stable and safe. This is further from the truth. Sadly most are just wasting their time and money in SGX.

And these SGX companies can just delist within 3 years of their IPO. It is well known fact.

Look at stock prices of Keppel Corporation Limited, Sembcorp, Jardin Cycle n Carriage, Singtel …. etc. To say the least it is miserable.

Because most local Singaporean like cheap $1 and $2 stocks, thinking they can make a good sum out of it once the share price raise. Sadly SGX is a dead sea.

It is great to Invest, but it does matter which company you invest in and which stock exchange you got your stocks from.

US companies listed on US Stocks exchange like NASDAQ or NYSE

On the other hand many are missing out on opportunities on buying US listed stocks, on companies like $(Microsoft)$, $(McDonalds)$, $(Apple)$,$( Nestle)$, $(Facebook (Meta))$ …. Or ETF like VOO, VTI.

I am talking about long term value investment here. Not about day trading or to buy and sell it within a year. Buy it and hold it for 5-10 years. You will see what these stocks can do for you. These are truly global companies.

The best thing for US stocks is you can buy 10 shares or 50 shares. How many shares you like. Even buy 1 share if you want.

By doing this you have a better chance of diversifying your portfolio, with stocks in different industry and allocate how much percentage % weighting you want at which company … etc.

If anyone were to buy shares of these mega US companies even 1 year ago, Returns for 1 share is about +25% to +50% in capital gains.

With Singapore stocks you can’t really do it because you need to buy minimum of 100 shares each, a SGX policy. You have no room for diversification.

Don’t get me to talk about US based ETF like $(VOO)$, $(VTI)$, $(MGC)$ it is even better. It is basically a basket of stocks consisting of mega US companies lump into 1, in the form of a ETF for you to buy, which in itself is a diversified investment. And these are passively managed by the ETF managers.

The capital return for such ETF is average of +15 to +20% return of your investment.

And a lot of local Singaporeans (especially the older generations) thought that they need to meet up with someone like a broker or financial advisor to buy these stocks or invest.

They don’t know that they don’t need to meet anyone, they can just buy these stocks by downloading a online trading app on their mobile phone, apps like MooMoo, Tiger Broker, Interactive Broker or Saxo Trader … these platforms are regulated by MAS.

They can buy and sell shares themselves with the press of a button. They no need to pay any broker any fees. The only fees are like $1.99 per trade (buy/sell) that’s all.

There isn’t any tax or deduction on your capital gains (profits).

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