This post was originally shared in my DT Email Newsletter here.
We face one of the toughest choices every investor faces this year…
Potential risks from a full-blown trade war, geopolitical tensions, war, AI bubbles…
We ask ourselves: Will all these lead to a market crash?
Thinking Back to Crashes I’ve Lived Through
As I write this newsletter under the soft Sunday morning light, I can’t help but think about past market cycles I’ve been through — including the 2022 tech stock crash, the COVID-19 shock.
The thing is, the question that keeps us awake isn’t whether the market is going to crash or not.
But what keeps us awake should be whether we continue to protect our wealth safely while being able to take advantage of opportunities, despite market crashes.
What matters most is how we are going to pick good dividend stocks to accumulate our wealth for retirement.
Why Sheng Siong Feels Different to Me
Over the last 12 years, Sheng Siong’s shares have continued to climb.
Despite market cycles, this supermarket giant continues to grow its dividends and earnings year after year. In fact, it’s now earning close to S$140 million in a single year.
Will Sheng Siong become a global juggernaut? Not really.
Yet I find it hard to imagine a market crash will threaten Sheng Siong’s performance for at least the next decade or decades.
The Power of Habit-Forming Businesses
I’m sure companies like Sheng Siong are high quality dividend growers that can continue to protect and accumulate your wealth.
The reason for its success?
Its ability to sell habit-forming products and services. I can’t stress enough.
These businesses get customers to use their stuff again and again, that…
Last week, I shared more about habit-forming services on my recent CNA Money Mind Interview, where I shared my thoughts on how investors can build passive income by picking good Singapore dividend stocks.
Especially at market highs. Especially when during market crashes.
Click here to watch my interview with CNA Money Mind
Sometimes, investing can be simple.
Willie Keng, CFA
Founder, Dividend Titan
