To The Moon

🌟🌟🌟DBS $DBS(D05.SI)$  has just reported a 4th quarter 2025 net profit of SGD 2.36 billion, a 10% year on year decline that missed analyst estimates of SGD 2.57 billion. 

While the headline miss on 9 February 2026 initially cooled market sentiment, sending shares down almost 2% in early trading to SGD 58.41, the result masked a record full year 2025 income of SGD 22.9 billion and a powerful 14% surge in wealth management fees.

The Warren Buffett Lens: Value Over Volatility

In the face of today's market jitters, it is vital to remember Warren Buffett's timeless wisdom :

"Do not take yearly results too seriously, instead focus on 4 or 5 year averages."

Warren Buffett has long argued that a single earnings report is merely a snapshot.  This is often blurred by short term noise and is not a true reflection of a company's worth. 

To judge a banking titan like DBS by one quarter of margin compression is to miss the "wonderful company" growing in the long run.

Key Insights : Resilience Beneath the Surface

True value isn't found in a quarterly miss but in the enduring strength of DBS :

Unwavering Dividend Commitment : DBS signaled ultimate confidence by declaring a total quarterly dividend of 81 cents.  This includes a 15 cent capital return, a significant jump from 60 cents last year.

The Rationale for SGD70 price target : JPMorgan analysts recently set a high conviction December price target of SGD 70.00. 

They believe that the market under appreciates a fundamental shift in DBS's business model.  Specifically JPMorgan highlights that DBS has restructured toward a lower loan intensity by slashing its loans to assets ratio from 63% to 48% by 2027, while its powerful deposit franchise allows DBS to sustain income growth even as global rates fluctuates.

Fortress Balance Sheet : CEO Tan Su Shan emphasised that DBS's 17% CET1 ratio and stable 1.0% Non Performing Loan ratio that  provide a solid foundation for 2026.

The Power of Long Term Hold

Numbers may tell one story but my personal experience tells another.  I will continue to hold DBS for the long term because this wonderful bank has already richly rewarded me. 

Beyond the steady stream of great dividends, I am sitting on capital gains of 152%.  It is a living testament to the fact that when you buy quality stocks and stay the course, the market eventually ignores the quarterly noise and rewards the true worth of the business.

Time in the Market vs Timing the Market 

As the saying goes, It is time in the market that counts, not timing the market. 

This philosophy reminds us that wealth isn't built by guessing the bottom of today's dip but by the sheer duration of staying invested.  By trying to time an exit after a disappointing report, investors often miss the subsequent recovery and the powerful compounding of those massive growth and dividends.

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