MARKET CRASH? Buy DBS, OCBC & UOB! Use These Numbers!

Summary

In this video, AK shares insights on investing in Singapore's local banks, particularly DBS, OCBC, and UOB. He emphasizes their reliability as dividend-paying investments and highlights their strong financial performance, including growing net asset values. AK discusses market timing and the importance of staying invested, even during downturns. He encourages viewers to consider fair price valuations based on price-to-earnings ratios and the banks' historical performance. Additionally, he hints at a future event with friends in January, ensuring viewers remain engaged with both his investment strategies and community activities.

Takeaways

• 🎮 AK has been focusing on gaming lately but is taking a break to engage in other hobbies, including watching anime and creating YouTube videos.
• 🏦 AK expresses a strong preference for investing in DBS, OCBC, and UOB, highlighting their reliability as dividend-paying stocks.
• 💰 These banks maintain a healthy payout ratio of 50-60% of earnings, allowing for both dividends and business growth.
• 📈 The net asset value (NAV) of these banks is growing, showcasing their financial strength despite paying dividends.
• 🌍 Singapore is positioned as Asia's financial center, especially after recent political and economic changes in Hong Kong.
• 🛡️ DBS, OCBC, and UOB are recognized as among the safest banks globally, consistently ranking highly in safety and regulation.
• 🕰️ Market crashes are unpredictable, so it’s important to stay invested rather than keeping all cash waiting for a downturn.
• 📉 AK suggests buying bank stocks at fair prices, using metrics like Price-to-Book and Price-to-Earnings ratios for evaluation.
• 💡 AK mentions that OCBC and UOB currently trade at lower P/E ratios than the five-year average for Singapore banks, indicating good investment potential.
• 🎉 AK shares plans for an event called 'Evening with AK and Friends' and will provide updates about the venue in January.

Q & A

What are the main banks discussed in the video?

The main banks discussed are DBS, OCBC, and UOB.

Why does AK consider DBS, OCBC, and UOB reliable investments?

AK considers them reliable because they consistently pay dividends and retain a healthy percentage of their earnings for growth.

What is the significance of the 50 to 60% earnings payout ratio mentioned by AK?

The 50 to 60% payout ratio indicates that these banks are not over-leveraging themselves to pay dividends and are using retained earnings to strengthen their businesses.

What is the difference between dividend yield and earnings yield?

Dividend yield refers to the annual dividend payment as a percentage of the stock price, while earnings yield is the earnings per share divided by the stock price, reflecting the company's profitability.

How does Singapore’s political stability contribute to its banking sector's growth?

Singapore's political stability and pro-business environment attract multinational firms and high-net-worth individuals, contributing to the growth of its banking sector.

What is the significance of a bank being voted as Asia's safest bank?

Being voted Asia's safest bank indicates strong financial health, stability, and trustworthiness, which can attract more investors and customers.

What does AK say about market timing and investing in banks?

AK suggests that while waiting for a market crash to invest may seem logical, it can lead to missed opportunities, so it's better to stay invested and look for fair pricing.

How does AK suggest determining 'fair prices' for bank stocks?

AK suggests using Price-to-Book ratios and historical Price-to-Earnings ratios to evaluate whether bank stocks are trading at fair prices.

What historical Price-to-Earnings ratio does AK mention as a guide for buying opportunities?

AK mentions that the historical lowest Price-to-Earnings ratio for the Singapore banking sector was around 8.5 times.

What event does AK mention regarding 'Evening with AK and Friends'?

AK mentions that there might be a venue secured for 'Evening with AK and Friends' next January, and he will provide more information as it becomes available.