Tuesday, August 7, 2012

Let Your Portfolio Ride on The Grey Tsunami

Before I proceed on to my new post, I would like to express my gratitude towards the supportive comments on my previous post. I really appreciate it. Thanks guys! (and gals?) That particular post might portray me as raging furious. But I was actually rather calm when I was typing. By the way, I realised I forgot to mention something important. I am NOT saying that dividend investing is the 100%, absolutely correct, perfect, ideal, safe, risk-free and flawless way of investing. It is suitable for me but it may not be suitable for you. So, it is totally fine if you do not follow my dividend investing style. You can still visit my blog for casual reading. Hehe :P

Alright then, let's get back to business. I am going to take my portfolio in a slightly different direction in the next few months. 

A Grey Tsunami Is Coming:
The populations in Asia are aging rapidly. A massive social demographic change will be taking place over the next few decades. According to a research done by United Nations in 2001, the number of Asians age 65 and above will increase exponentially from 207 million in 2000 to 857 million in 2050. 

The rise of the middle-class families in developing countries like China and Indonesia will fuel the medical travel sector too. Increasingly affluent patients will demand better healthcare services because they can now afford it. For example, many rich Indonesian patients do not mind forking out more money to seek better medical treatment at Mount Elizabeth Hospital in Singapore. 


Riding on the Tsunami - Buy Quality Healthcare Stocks in Asia:
IHH Healthcare Berhad comprises premium-brand healthcare assets, collectively representing a unique multi-market investment position in the healthcare sector. For more information, please visit their website at http://ihh-healthcare.com/our-businesses/brands-and-portfolio


Raffles Medical Group (RMG) is a leading medical group and the largest private group practice in Singapore. As a fully integrated healthcare organisation, the Group owns and operates a network of family medicine clinics, a tertiary care private hospital, insurance services and a consumer healthcare division. Patients of the Group enjoy a continuum of care, from having their most basic healthcare needs met through the Group’s islandwide network of Raffles Medical clinics, to specialist and tertiary care at Raffles Hospital. For more information, please their website at http://www.rafflesmedicalgroup.com/our-services/our-services.aspx

Implications for my portfolio:
When the Asian grey tsunami hits in the next few decades, I want to be ready to take advantage and profit from it. In fact, I am going to start the foundation now. So far, I have been investing in dividend stocks over the past 3 years. It is time to tweak my strategy and go for healthcare stocks. Anyway, the prices of quality blue-chip dividend stocks have been skyrocketing and my spare funds are idling (rotting) in the bank account, earning next to nothing in interests. 

My Singapore Dividend Portfolio consists of just one "medical-related" stock, First REIT. It makes up around 6% of my portfolio. However, it is a REIT and not a pure healthcare stock. Therefore, I will be looking to invest heavily in IHH Healthcare Berhad and Raffles Medical Group in the coming months. If Parkway Life REIT dips after XD, I will also be keen to add some. I want my portfolio to comprise of 20% healthcare stocks in the long run. 

My Global Dividend Growth Portfolio also consists of just one healthcare stock, Johnson & Johnson. It makes up around 20% of my portfolio. I am comfortable with that. 

So, any healthcare stocks in your portfolio? What do you think of my new direction? Comment below. ^^


Peace Out,
Dividend Warrior

7 comments:

lokster said...

Do you think it is fair to expect regular dividends from them?

Anonymous said...

how much will you consider buying parkway reits after its XD? thanks.

B said...

I used to have the same thinking as you but in the end still feel that healthcare stocks are one to hold for a very long term. Thus in the meantime, it will not yield you anything other than growth. Still think if you reinvest your money into dividend stock it could potentially regrow much faster and one that you really need.

I am invested in First and Parkway Reits.

B

Anonymous said...

Ihh pe seems hiigh

Tan said...

DW

Ever consider Bursa market? KPJ would be a great play, monopoly in Msia and expanding to Indonesia aggresively

Anonymous said...

Healthcare shares don't seem to do too well. It's a hard business to be in - revenue may go up but costs also go up (manpower, facilities etc).

Anonymous said...

Buffet selling J&J. Whats your take? He is saying they made too many mistakes..

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