Which stock are you picking for this buffet?

The Straits Times Index has been trading down 4% from 3,480 in early may to 3,340 today.

Consequently, Blue Chips are trading at attractive prices now with the decline in STI.

What are some of the counters you're looking at?

Below are some of the counters under my watch list.






Telecommunications
Singtel below $4, Starhub hitting $4, M1 at $3.21

Banks
DBS below $20, OCBC hitting $10, UOB below $23

REITs
CCT hitting $1.61 52 weeks low

Oil & Gas
Sembcorp Industries hitting $4.05 critical support level.

So what should I buy?

a. Current portfolio composition

I look at how each segment takes up a portion of my portfolio. I wouldn't want to overly invest in a particular segment. My preference is to diversify my portfolio to minimise volatility and keep me better asleep at night.

b. Valuations

I look at individual valuations. Comparing which has a better value. Value in terms of trailing P/E, trailing Dividend yield, and also Forward P/E.

My picks?

My preliminary picks are Singtel, DBS and/or UOB. I'll be further discussing why in the next post! :)