3 Things Every Singaporean Investor Must Check Before Buying Any Stock | Masterclass 101 | EP1619🦖
3 Things Every Singaporean Investor Must Check Before Buying Any Stock | Masterclass 101 | EP1619🦖
I have been asked the same question at least forty times this month, and it always comes in the same form: which stock should I buy for retirement income? The question itself is the problem. Before you ask which stock, you need to ask which zone that stock sits in, whether the yield is coming from actual earnings or borrowed capital, and whether the balance sheet can survive a rate shock without cutting your distribution. Most retail investors skip straight to the ticker without checking whether the company is borrowing money to pay them. A payout ratio above one hundred percent is not generosity. It is a countdown.
The three checks in this episode are the same ones I apply to every single stock I cover, but this is the first time I have laid them out as a standalone framework. Gearing below thirty-five percent and an interest coverage ratio above four times are not suggestions. They are the hard gates that separate Zone One fortress territory from Zone Five capital risk. If you are managing CPF or SRS and relying on distributions, there is no room for a stock that fails even one of these thresholds. Same stock, two different life stages, completely different answers.
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