Berkshire Hathaway made waves this quarter. Warren Buffett trimmed his Apple stake by 7%, marking a full 30% cut since last year. He also eased up on Bank of America, selling 4% of shares — a striking 41% reduction over twelve months. These moves hint at caution. Tariffs cast a shadow over Apple, and banks face tough times.
But here’s where the story turns bold. While others looked away, Berkshire stepped in and bought big into UnitedHealth Group — a company battered by a 46% stock drop this year. Costs are soa
ring, guidance is down, and a federal probe looms large.
Why would Buffett move now? Because value hides in the noise. UnitedHealth trades at a rare discount, with strong cash flow and a rising dividend that beats the market. Its grip on the health sector is unmatched, and its earnings easily cover debt.
This isn’t just another trade. It’s a bet on recovery, resilience, and leadership. As news broke, the stock jumped almost 10%. Buffett knows: when fear wins, opportunity waits. This bold step could set the stage for lasting gains — and reminds us that courage, not comfort, shapes fortunes.
Key Investment Moves
Selling Activity:
- Berkshire reduced its Apple stake by 7% in Q2 2025 (30% reduction over the past year)
- Trimmed Bank of America position by 4% in Q2 (41% reduction over the past year)
- The article suggests these sales may be related to tariff concerns with Apple and general economic caution regarding banks
Major Purchase: Berkshire initiated a substantial position in UnitedHealth Group, which has been down 46% this year due to several challenges:
UnitedHealth’s Challenges
- Higher medical costs: Management revised earnings guidance down to $16 per share, with medical costs expected to be $6.5 billion higher than previously projected
- Industry headwinds: Aging population, higher healthcare utilization, expensive services, drug price inflation
- Legal scrutiny: DOJ criminal investigation into Medicare Advantage billing practices
Investment Rationale
Despite the challenges, UnitedHealth presents several attractive features that likely appealed to Buffett’s value investing approach:
- Valuation: Trading at lower-than-usual forward P/E ratio and less than 1x revenue
- Cash generation: Trailing free-cash-flow yield above 10%
- Dividend: 3.25% yield with recent 5% increase
- Market position: Strong competitive moat in healthcare insurance
- Financial stability: Operations earnings of $14.3 billion are 7x debt interest expense
The stock jumped 9.5% in after-hours trading following news of Berkshire’s investment, suggesting the market views Buffett’s contrarian bet favorably. This move aligns with his historical strategy of buying quality companies when they’re temporarily out of favor, potentially setting up for strong returns when the company’s issues resolve.
Warren Buffett’s Investment Strategy: Deep Analysis and Singapore Applications
Strategic Analysis of Buffett’s Recent Moves
The Apple Trimming Strategy
Warren Buffett’s decision to reduce Apple holdings by 30% over the past year reflects several strategic considerations:
1. Valuation Discipline
- Apple trades at premium multiples despite slowing growth
- Peak smartphone penetration globally reducing unit growth potential
- Services revenue growth, while strong, may be moderating
2. Geopolitical Risk Management
- Tariff concerns with China manufacturing
- Supply chain vulnerabilities in Asia-Pacific region
- Regulatory pressure in key markets (EU, China)
3. Portfolio Concentration Risk
- Apple represented outsized portion of Berkshire’s equity portfolio
- Reducing single-stock risk aligns with prudent portfolio management
- Creating capacity for new opportunities
Bank of America Position Reduction
The 41% reduction in Bank of America stakes signals:
1. Economic Cycle Positioning
- Anticipation of potential credit cycle deterioration
- Interest rate environment becoming less favorable for banks
- Regulatory environment tightening for large banks
2. Sector Rotation Strategy
- Moving from cyclical financial sector exposure
- Preparing for potential economic slowdown
- Maintaining selective banking exposure rather than complete exit
UnitedHealth Contrarian Investment
The $1.57 billion investment in UnitedHealth represents classic Buffett value investing:
1. Crisis-Driven Opportunity
- 46% stock decline creating attractive entry point
- Temporary issues (DOJ investigation, higher medical costs) vs. structural problems
- Market overreaction providing value opportunity
2. Defensive Characteristics
- Healthcare demand relatively recession-proof
- Aging demographics creating long-term tailwinds
- Essential service with pricing power
3. Financial Strength
- Strong cash flow generation (10%+ FCF yield)
- Sustainable dividend (3.25% yield, recently increased)
- Market leadership position providing competitive moat
Singapore Market Applications
Banking Sector Parallels
Singapore’s major banks (DBS, OCBC, UOB) face similar dynamics to Bank of America:
Current Context:
- Singapore banks near all-time highs in 2025
- Strong dividend yields (4-6% range)
- Benefiting from higher interest rate environment
Buffett-Style Analysis for Singapore Banks:
DBS Group (D05):
- Largest Southeast Asian bank by assets
- Strong digital transformation leadership
- Significant China/Hong Kong exposure (potential tariff risks)
- Premium valuation may limit upside
OCBC Bank (O39):
- Conservative lending practices
- Strong wealth management franchise
- Malaysia exposure provides diversification
- Attractive dividend sustainability
UOB (U11):
- Strongest capital ratios among big three
- Regional expansion in ASEAN markets
- More conservative growth profile
- Potential value play among the three
Strategic Implications: Following Buffett’s bank trimming approach, Singapore investors might consider:
- Taking partial profits after strong run-up
- Maintaining core positions in strongest franchise (likely DBS)
- Watching for economic cycle turns affecting loan growth
Healthcare Sector Opportunities
Singapore’s healthcare sector offers compelling parallels to Buffett’s UnitedHealth investment:
Structural Advantages:
- Rapidly aging population (fastest in ASEAN)
- Government healthcare spending increasing
- Medical tourism hub status
- Advanced healthcare infrastructure
Key Singapore Healthcare Stocks:
IHH Healthcare (IHH):
- Largest private healthcare operator in Southeast Asia
- Pantai and Gleneagles hospital chains
- Defensive revenue streams from essential services
- Potential consolidation opportunities
Raffles Medical Group (RFMD):
- Premium healthcare provider
- Medical insurance business
- China and regional expansion
- Higher margins but smaller scale
First REIT:
- Healthcare real estate investment trust
- Stable rental income from hospitals
- Aging demographics supporting occupancy
- Defensive characteristics during economic downturns
Value Investing Opportunities in Singapore
Sectors Mirroring Buffett’s Strategy:
1. Essential Services (Utilities/Infrastructure):
- Singapore Power (if listed) or utilities proxies
- Sembcorp Industries (renewable energy transition)
- City Developments Limited (essential real estate)
2. Consumer Staples:
- Dairy Farm International (regional retail dominance)
- Golden Agri-Resources (essential food production)
- Wilmar International (palm oil/food processing)
3. Financial Services (Selective Approach):
- Great Eastern Holdings (life insurance, aging demographics)
- Singapore Exchange (market infrastructure monopoly)
- CapitaLand Investment (REIT platform, essential real estate)
Investment Framework for Singapore
Buffett Principles Applied Locally
1. Economic Moats in Singapore Context:
- Government-linked companies (GLCs) with regulatory advantages
- REITs with prime location portfolios
- Regional champions with Southeast Asian dominance
2. Demographic Tailwinds:
- Aging population benefiting healthcare, senior living
- Urbanization supporting infrastructure, utilities
- Rising middle class in ASEAN region
3. Currency and Geopolitical Stability:
- Singapore Dollar strength vs. regional currencies
- Political stability premium in uncertain global environment
- Strategic location benefits from regional trade growth
Risk Management Considerations
1. Concentration Risk:
- Singapore market dominated by few large stocks
- Property sector concentration (REITs, developers)
- Banking sector correlation to economic cycles
2. External Dependencies:
- Trade-dependent economy vulnerable to global slowdowns
- Chinese economic growth impact
- US-China trade tensions affecting regional trade
3. Valuation Discipline:
- Premium valuations for quality Singapore stocks
- Need for patience waiting for attractive entry points
- Currency considerations for foreign investors
Strategic Recommendations
Portfolio Construction
Core Holdings (40-50% allocation):
- DBS Group (financial sector exposure)
- Singapore Exchange (infrastructure monopoly)
- CapitaLand Investment (real estate exposure)
Defensive Healthcare (15-20% allocation):
- IHH Healthcare (regional healthcare leader)
- First REIT (healthcare real estate)
- Raffles Medical Group (premium healthcare)
Value Opportunities (20-30% allocation):
- Wait for market corrections to add quality names
- Focus on temporarily depressed sectors (similar to UnitedHealth approach)
- Consider small-cap value opportunities
Cash Position (10-20% allocation):
- Following Buffett’s current high cash position
- Preparation for market opportunities during corrections
- Flexibility for special situations
Market Timing Considerations
Current Environment (August 2025):
- Singapore banks near all-time highs (potential profit-taking)
- Healthcare stocks showing resilience
- REITs facing interest rate headwinds
- Technology stocks volatile due to trade tensions
Opportunity Watch List:
- Quality companies facing temporary headwinds
- Dividend-paying stocks during market corrections
- Regional expansion stories at attractive valuations
- Healthcare and infrastructure plays on demographic trends
This analysis demonstrates how Buffett’s timeless value investing principles – buying quality businesses at reasonable prices, focusing on long-term competitive advantages, and maintaining disciplined portfolio management – can be effectively applied to Singapore’s unique market dynamics and demographic trends.
Warren Buffett’s Investment Strategy: Deep Analysis and Singapore Applications
Strategic Analysis of Buffett’s Recent Moves
The Apple Trimming Strategy
Warren Buffett’s decision to reduce Apple holdings by 30% over the past year reflects several strategic considerations:
1. Valuation Discipline
- Apple trades at premium multiples despite slowing growth
- Peak smartphone penetration globally reducing unit growth potential
- Services revenue growth, while strong, may be moderating
2. Geopolitical Risk Management
- Tariff concerns with China manufacturing
- Supply chain vulnerabilities in Asia-Pacific region
- Regulatory pressure in key markets (EU, China)
3. Portfolio Concentration Risk
- Apple represented outsized portion of Berkshire’s equity portfolio
- Reducing single-stock risk aligns with prudent portfolio management
- Creating capacity for new opportunities
Bank of America Position Reduction
The 41% reduction in Bank of America stakes signals:
1. Economic Cycle Positioning
- Anticipation of potential credit cycle deterioration
- Interest rate environment becoming less favorable for banks
- Regulatory environment tightening for large banks
2. Sector Rotation Strategy
- Moving from cyclical financial sector exposure
- Preparing for potential economic slowdown
- Maintaining selective banking exposure rather than complete exit\\
UnitedHealth Contrarian Investment
The $1.57 billion investment in UnitedHealth represents classic Buffett value investing:
1. Crisis-Driven Opportunity
- 46% stock decline creating attractive entry point
- Temporary issues (DOJ investigation, higher medical costs) vs. structural problems
- Market overreaction providing value opportunity
2. Defensive Characteristics
- Healthcare demand relatively recession-proof
- Aging demographics creating long-term tailwinds
- Essential service with pricing power
3. Financial Strength
- Strong cash flow generation (10%+ FCF yield)
- Sustainable dividend (3.25% yield, recently increased)
- Market leadership position providing competitive moat
Singapore Market Applications
Banking Sector Parallels
Singapore’s major banks (DBS, OCBC, UOB) face similar dynamics to Bank of America:
Current Context:
- Singapore banks near all-time highs in 2025
- Strong dividend yields (4-6% range)
- Benefiting from higher interest rate environment
Buffett-Style Analysis for Singapore Banks:
DBS Group (D05):
- Largest Southeast Asian bank by assets
- Strong digital transformation leadership
- Significant China/Hong Kong exposure (potential tariff risks)
- Premium valuation may limit upside
OCBC Bank (O39):
- Conservative lending practices
- Strong wealth management franchise
- Malaysia exposure provides diversification
- Attractive dividend sustainability
UOB (U11):
- Strongest capital ratios among big three
- Regional expansion in ASEAN markets
- More conservative growth profile
- Potential value play among the three
Strategic Implications: Following Buffett’s bank trimming approach, Singapore investors might consider:
- Taking partial profits after strong run-up
- Maintaining core positions in strongest franchise (likely DBS)
- Watching for economic cycle turns affecting loan growth
Healthcare Sector Opportunities
Singapore’s healthcare sector offers compelling parallels to Buffett’s UnitedHealth investment:
Structural Advantages:
- Rapidly aging population (fastest in ASEAN)
- Government healthcare spending increasing
- Medical tourism hub status
- Advanced healthcare infrastructure
Key Singapore Healthcare Stocks:
IHH Healthcare (IHH):
- Largest private healthcare operator in Southeast Asia
- Pantai and Gleneagles hospital chains
- Defensive revenue streams from essential services
- Potential consolidation opportunities
Raffles Medical Group (RFMD):
- Premium healthcare provider
- Medical insurance business
- China and regional expansion
- Higher margins but smaller scale
First REIT:
- Healthcare real estate investment trust
- Stable rental income from hospitals
- Aging demographics supporting occupancy
- Defensive characteristics during economic downturns
Value Investing Opportunities in Singapore
Sectors Mirroring Buffett’s Strategy:
1. Essential Services (Utilities/Infrastructure):
- Singapore Power (if listed) or utilities proxies
- Sembcorp Industries (renewable energy transition)
- City Developments Limited (essential real estate)
2. Consumer Staples:
- Dairy Farm International (regional retail dominance)
- Golden Agri-Resources (essential food production)
- Wilmar International (palm oil/food processing)
3. Financial Services (Selective Approach):
- Great Eastern Holdings (life insurance, aging demographics)
- Singapore Exchange (market infrastructure monopoly)
- CapitaLand Investment (REIT platform, essential real estate)
Investment Framework for Singapore
Buffett Principles Applied Locally
1. Economic Moats in Singapore Context:
- Government-linked companies (GLCs) with regulatory advantages
- REITs with prime location portfolios
- Regional champions with Southeast Asian dominance
2. Demographic Tailwinds:
- Aging population benefiting healthcare, senior living
- Urbanization supporting infrastructure, utilities
- Rising middle class in ASEAN region
3. Currency and Geopolitical Stability:
- Singapore Dollar strength vs. regional currencies
- Political stability premium in uncertain global environment
- Strategic location benefits from regional trade growth
Risk Management Considerations
1. Concentration Risk:
- Singapore market dominated by few large stocks
- Property sector concentration (REITs, developers)
- Banking sector correlation to economic cycles
2. External Dependencies:
- Trade-dependent economy vulnerable to global slowdowns
- Chinese economic growth impact
- US-China trade tensions affecting regional trade
3. Valuation Discipline:
- Premium valuations for quality Singapore stocks
- Need for patience waiting for attractive entry points
- Currency considerations for foreign investors
Strategic Recommendations
Portfolio Construction
Core Holdings (40-50% allocation):
- DBS Group (financial sector exposure)
- Singapore Exchange (infrastructure monopoly)
- CapitaLand Investment (real estate exposure)
Defensive Healthcare (15-20% allocation):
- IHH Healthcare (regional healthcare leader)
- First REIT (healthcare real estate)
- Raffles Medical Group (premium healthcare)
Value Opportunities (20-30% allocation):
- Wait for market corrections to add quality names
- Focus on temporarily depressed sectors (similar to UnitedHealth approach)
- Consider small-cap value opportunities
Cash Position (10-20% allocation):
- Following Buffett’s current high cash position
- Preparation for market opportunities during corrections
- Flexibility for special situations
Market Timing Considerations
Current Environment (August 2025):
- Singapore banks near all-time highs (potential profit-taking)
- Healthcare stocks showing resilience
- REITs facing interest rate headwinds
- Technology stocks volatile due to trade tensions
Opportunity Watch List:
- Quality companies facing temporary headwinds
- Dividend-paying stocks during market corrections
- Regional expansion stories at attractive valuations
- Healthcare and infrastructure plays on demographic trends
Scenario-Based Analysis: Buffett’s Principles in Singapore Markets
Current Market Context and Key Scenarios
Singapore’s economy shows resilience but faces significant uncertainties. The MAS warns that “prospects for the Singapore economy remain subject to significant uncertainty, especially in 2026” with trade conflicts and geopolitical shocks potentially weighing on growth. Meanwhile, the STI has shown extreme volatility – gaining 26.18% year-over-year by August 2025, yet experiencing its worst single-day crash in over 16 years in April 2025, falling 15% in two weeks amid tariff concerns.
Scenario 1: Economic Slowdown & Market Correction (40% Probability)
Triggers:
- Global trade tensions escalate further
- US-China tariff war intensifies
- Regional economic slowdown spreads to Singapore
- STI falls 20-30% from current levels
Buffett Strategy Application:
Banking Sector Response:
- Opportunity: Follow Buffett’s contrarian approach by accumulating quality banks during panic selling
- Target: DBS Group at 20% discount to current levels – strong regional franchise with digital leadership
- Risk Management: Avoid weaker regional banks; focus on Singapore’s “too big to fail” institutions
- Timeline: 12-24 month accumulation period during maximum pessimism
Healthcare Sector Strategy:
- Primary Target: IHH Healthcare during market selloff – mirrors Buffett’s UnitedHealth approach
- Rationale: Essential healthcare services, aging demographics unchanged, temporary valuation compression
- Entry Points: 30-40% below recent highs, focusing on free cash flow yield above 8%
REITs Approach:
- Selective Buying: Healthcare and logistics REITs with strong tenants
- Avoid: Retail and commercial REITs facing structural headwinds
- Focus: Assets with inflation-indexed rent escalations
Scenario 2: Stable Growth with Inflation Pressures (35% Probability)
Context:
- Singapore maintains 2-3% GDP growth
- MAS Core Inflation remains around 0.6% y-o-y but faces upward pressure
- Interest rates stabilize but remain elevated
- STI trades sideways with high volatility
Buffett Strategy Implementation:
Quality at Reasonable Price Focus:
- Singapore Exchange (SGX): Infrastructure monopoly with pricing power during inflation
- CapitaLand Investment: Premium REIT platform with inflation hedging properties
- Sembcorp Industries: Renewable energy transition play with government backing
Dividend Strategy:
- Target companies with 5+ year dividend growth track records
- Focus on sustainable payout ratios (40-60% of earnings)
- Prioritize businesses with inflation pass-through abilities
Portfolio Allocation:
- 40% Quality Large Caps (Banks, Telcos, Infrastructure)
- 25% Healthcare & Demographics Plays
- 20% REITs with inflation protection
- 15% Cash for opportunistic investments
Scenario 3: Economic Boom & Market Euphoria (25% Probability)
Drivers:
- Global trade tensions resolve
- Regional economic integration accelerates
- Singapore becomes key beneficiary of supply chain diversification
- STI reaches new all-time highs above 4,500
Buffett’s Disciplined Approach:
Profit-Taking Strategy:
- Systematically reduce positions as valuations stretch
- Follow Buffett’s Apple trimming approach – selling into strength
- Maintain only highest-conviction positions at full weight
Value Trap Avoidance:
- Resist FOMO on speculative growth stocks
- Stick to businesses with sustainable competitive advantages
- Focus on free cash flow generation over revenue growth metrics
Cash Building Phase:
- Increase cash allocation to 25-30% of portfolio
- Prepare for inevitable market correction
- Maintain shopping list of quality companies for future opportunities
Critical Stress Test Scenarios
Black Swan Event: Regional Financial Crisis
Probability: 10% but high impact
Triggers:
- Major Chinese property developer defaults spread
- Regional banking crisis emerges
- Singapore property bubble bursts
Buffett Crisis Playbook:
- Immediate Response: Preserve capital, avoid margin calls
- 6-Month Phase: Begin selective accumulation of highest-quality names
- 12-24 Month Phase: Aggressive accumulation during maximum fear
- Target Sectors: Banks (systemically important), Healthcare (defensive), Utilities (essential services)
Geopolitical Escalation: Taiwan Strait Crisis
Market Impact: STI could fall 40-50% in acute phase
Investment Response:
- Short-term: Shift to defensive sectors (healthcare, utilities, consumer staples)
- Long-term: Massive opportunity for patient capital
- Focus: Companies with strong balance sheets and local revenue exposure
Sector-Specific Scenario Analysis
Banking Sector Deep Dive
Bull Case (Stable/Growth Scenarios):
- Net interest margins stabilize at elevated levels
- Credit costs remain benign
- Regional expansion in ASEAN accelerates
- Best Plays: DBS (regional champion), UOB (most conservative), OCBC (wealth management)
Bear Case (Economic Slowdown):
- Credit cycle turns negative
- Net interest margins compress as rates fall
- Regional exposure becomes liability
- Strategy: Wait for panic selling, accumulate strongest franchise only
Healthcare Sector Scenarios
Demographic Dividend (All Scenarios):
- Singapore’s rapidly aging population creates consistent demand
- Government healthcare spending increases regardless of economic cycle
- Regional medical tourism recovers post-pandemic
Investment Implications:
- IHH Healthcare: Benefits from all scenarios except severe recession
- Raffles Medical: Premium positioning protects margins
- First REIT: Defensive characteristics with growth potential
Portfolio Construction by Scenario
Conservative Allocation (Slowdown/Crisis Scenarios):
- 50% Cash and Government Bonds
- 30% Defensive Stocks (Healthcare, Utilities, Consumer Staples)
- 20% Quality Banks and REITs at deep discounts
Balanced Allocation (Stable Growth):
- 20% Cash
- 40% Quality Large Caps with moats
- 25% Healthcare and Demographics
- 15% REITs with inflation protection
Growth Allocation (Boom Scenario):
- 10% Cash
- 60% Quality Growth Companies
- 20% Regional Champions with ASEAN exposure
- 10% Opportunistic positions
Timeline and Implementation Strategy
Immediate Actions (Next 3 months):
- Monitor economic indicators and MAS policy signals
- Build watchlist of quality companies at target prices
- Increase cash position if market continues rally
6-Month Horizon:
- Begin position building in highest-conviction names during any 10%+ corrections
- Focus on companies reporting strong fundamentals despite market volatility
12-24 Month Strategy:
- Full implementation of scenario-based allocation
- Regular rebalancing based on changing probabilities
- Maintain discipline against emotional decision-making
Key Success Metrics
Portfolio Performance Targets:
- Outperform STI by 2-3% annually over full economic cycle
- Preserve capital during major corrections (maximum -15% when STI falls -30%)
- Generate consistent income through dividends (4-5% yield)
Risk Management Benchmarks:
- Maximum single position: 8% of portfolio
- Sector concentration limit: 25% except during crisis opportunities
- Geographic diversification: Maximum 70% Singapore exposure
This scenario-based framework demonstrates how Buffett’s timeless value investing principles – buying quality businesses at reasonable prices, focusing on long-term competitive advantages, and maintaining disciplined portfolio management – can be dynamically applied to Singapore’s unique market dynamics across different economic environments.
The Patience of Lions: A Singapore Investment Story
A tale of two investors navigating the volatile waters of Singapore’s markets using Warren Buffett’s timeless principles
Chapter 1: The Meeting
The humid Singapore morning air hung heavy over Boat Quay as Sarah Chen adjusted her laptop screen, squinting at the glowing red numbers that had dominated her portfolio for the past three months. The STI had just crashed 15% in two weeks, and her carefully constructed portfolio was bleeding money faster than she could process.
“Rough morning?”
Sarah looked up to see an elderly gentleman settling into the adjacent table at the riverside café, his weathered hands cradling a cup of kopi. Despite the early hour, his eyes held an unmistakable spark of vitality.
“You could say that,” Sarah replied, gesturing at her screen. “I’m watching my life savings evaporate in real time.”
The man chuckled softly. “Ah, the April 2025 crash. Worst single day in sixteen years, they’re saying. I’m Dr. Lim, by the way. Retired fund manager. And you look like someone who needs to hear a story.”
“Sarah Chen, financial analyst at Goldman Sachs Singapore. And honestly, I could use any wisdom right now.”
Chapter 2: The Foundation
Dr. Lim settled back in his chair, watching a bumboat navigate the Singapore River. “Forty years ago, I started with S$50,000 and a simple philosophy borrowed from an American investor named Warren Buffett. Three rules: buy quality businesses at reasonable prices, focus on long-term competitive advantages, and maintain disciplined portfolio management.”
“Buffett? Everyone knows his name, but his strategies seem too simple for Singapore’s complexity.”
“Simple, yes. Easy, absolutely not.” Dr. Lim pulled out a worn notebook. “Let me tell you about two portfolios I’ve been tracking. Portfolio A belongs to my nephew Marcus – brilliant boy, works at a hedge fund, constantly trading. Portfolio B belonged to my late wife, managed using Buffett’s principles.”
Sarah leaned forward, intrigued despite her skepticism.
“Marcus started with the same S$100,000 as my wife in 2015. He’s made spectacular gains – up 400% in 2017, then lost 60% in 2018. Up 300% in 2021, down 45% in 2022. Very exciting. Very exhausting.”
“And your wife’s portfolio?”
Dr. Lim’s eyes softened. “Mei Lin was a school teacher. She bought eight Singapore companies and held them for ten years. DBS at S$18, Singapore Exchange at S$6.50, IHH Healthcare at S$1.80. She never sold during the crashes. Never bought during the bubbles unless they dropped below her target prices.”
Chapter 3: The Rules in Action
Sarah watched as Dr. Lim sketched numbers in his notebook:
Portfolio Performance Targets:
- Outperform STI by 2-3% annually over full cycle ✓
- Preserve capital during corrections (max -15% when STI falls -30%) ✓
- Generate consistent income through dividends (4-5% yield) ✓
Risk Management Benchmarks:
- Maximum single position: 8% of portfolio ✓
- Sector concentration limit: 25% except during crisis opportunities ✓
- Geographic diversification: Maximum 70% Singapore exposure ✓
“She followed these rules religiously,” Dr. Lim continued. “When the 2020 COVID crash hit and STI fell 30%, her portfolio only dropped 12%. When everyone was panic selling, she was buying more DBS at S$19, more SGX at S$7.”
“But how did she know what to buy?”
“Quality businesses at reasonable prices. Companies with economic moats – competitive advantages that protect them like fortresses. DBS dominates Southeast Asian banking. SGX has a monopoly on Singapore’s capital markets. IHH Healthcare benefits from aging populations across the region.”
Sarah felt something click. “You’re talking about businesses that will still be essential in ten, twenty years.”
“Exactly. While Marcus chased the latest growth stock or cryptocurrency, Mei Lin focused on companies that solve fundamental human needs. Banking, healthcare, infrastructure, consumer staples.”
Chapter 4: The Test
“But Dr. Lim,” Sarah interrupted, “this crash feels different. Trade wars, inflation, geopolitical tensions. How do these simple rules apply when everything’s falling apart?”
Dr. Lim smiled knowingly. “This is where the story gets interesting. Last month, I gave both Marcus and you the same challenge without you knowing it.”
Sarah raised an eyebrow.
“I’ve been watching your LinkedIn posts, your analysis reports. You’ve been predicting this crash for months, yet you were still fully invested in momentum stocks. Marcus, meanwhile, had leveraged himself to the maximum when the crash hit.”
Sarah felt her cheeks burn with recognition.
“But here’s what Mei Lin would have done, and what I did with her portfolio after she passed. Three months ago, when the STI hit record highs and everyone was euphoric, I started trimming positions. Not because I could predict the crash, but because prices had stretched beyond reasonable valuations.”
He flipped to a recent page in his notebook. “I sold 30% of our DBS position at S$41 – it’s S$31 today. Trimmed Singapore Exchange at S$12 – it’s S$9.50 now. Built up a 25% cash position.”
“You predicted this?”
“No, I prepared for it. There’s a difference. Mei Lin’s rules don’t require predicting the future. They require patience and discipline.”
Chapter 5: The Opportunity
Sarah stared at the numbers, a slow realization dawning. “So now, with this cash position and everything down…”
“Now we shop,” Dr. Lim grinned. “This crash has created the kind of opportunity Buffett dreams about. Quality companies at fire-sale prices.”
He pulled up his phone, showing Sarah a list:
Shopping List – April 2025 Crash:
- DBS Group: Target S$28 (currently S$31)
- IHH Healthcare: Target S$4.80 (currently S$5.20)
- Singapore Exchange: Target S$8.50 (currently S$9.50)
- CapitaLand Investment: Target S$2.80 (currently S$3.10)
- Raffles Medical: Target S$0.95 (currently S$1.10)
“These are all companies with sustainable competitive advantages, strong balance sheets, and the ability to not just survive this crisis, but emerge stronger. The key is patience.”
“But what if they keep falling?”
“Then we buy more. Dollar-cost averaging on the way down. Mei Lin used to say, ‘The stock market is a voting machine in the short run, but a weighing machine in the long run.’ Right now, fear is voting. Eventually, fundamentals will weigh in.”
Chapter 6: The Three Scenarios
Dr. Lim leaned back, his eyes taking on the distant look of someone who had weathered many storms. “Mei Lin taught me to always plan for three scenarios. Let me show you how her principles adapt.”
He sketched three columns:
Scenario 1: Economic Slowdown (40% probability) “If this crash continues and Singapore enters recession, we become aggressive buyers of the highest-quality names. Think of it as Buffett buying Bank of America during the 2008 crisis, or his recent UnitedHealth purchase after their 46% drop.”
Scenario 2: Stable Recovery (35% probability)
“Markets stabilize, slow growth continues. We maintain balanced positions, focus on dividend growers and companies with pricing power during inflation.”
Scenario 3: Strong Recovery (25% probability) “If trade tensions resolve and markets boom again, we follow Buffett’s Apple strategy – trimming positions as valuations stretch, building cash for the next inevitable downturn.”
Sarah absorbed this, feeling her panic slowly transform into clarity. “So regardless of which scenario unfolds, there’s a strategy?”
“The beauty of quality companies with competitive moats is they tend to survive and thrive across all scenarios. DBS will still be the dominant regional bank whether we have recession or boom. Singapore Exchange will still process every trade in Singapore. Healthcare demand will grow regardless, driven by aging demographics.”
Chapter 7: The Psychology
“Dr. Lim, this all makes sense intellectually, but emotionally… watching your portfolio drop 15% while the market falls 30% still hurts.”
“Ah, now we get to the hardest part.” Dr. Lim’s expression grew serious. “Mei Lin used to tell me that investing success is 20% strategy and 80% psychology. The strategy is simple – buy quality, hold forever, add during crashes. The psychology is what separates successful investors from everyone else.”
He pointed to the river, where a bumboat was struggling against the current. “See that boat? The captain could panic, gun the engine, waste fuel fighting the tide. Or he can be patient, work with the current, conserve energy for when conditions improve.”
“Most investors are like panicked boat captains. They buy when everyone’s optimistic and prices are high. They sell when everyone’s pessimistic and prices are low. They do exactly the opposite of what creates wealth.”
Sarah nodded slowly. “Like me buying tech stocks at their peaks last year.”
“Exactly. But here’s what I learned watching Mei Lin through four major crashes: the secret isn’t eliminating emotion, it’s channeling it correctly. When she saw her portfolio drop 20% in March 2020, she wasn’t emotionless. She was excited.”
“Excited?”
“She called it ‘Christmas morning for value investors.’ All her favorite companies suddenly on sale. She’d been waiting for that opportunity for three years.”
Chapter 8: The Implementation
Sarah pulled out her own notebook. “Okay, I’m convinced about the philosophy. But how do I actually implement this? My current portfolio is a mess of momentum stocks and speculative plays.”
Dr. Lim smiled. “Transformation, not revolution. Don’t blow up your current portfolio. Instead, start building the new one alongside it.”
He sketched a timeline:
Months 1-3: Foundation Building
- Build 15-20% cash position by trimming weakest positions
- Start accumulating core positions during any market dips
- Focus on highest-conviction plays first: DBS, SGX, IHH
Months 4-12: Core Construction
- Systematically replace speculative positions with quality companies
- Build to full sector allocations following risk management rules
- Maintain discipline during inevitable market volatility
Year 2+: Optimization
- Fine-tune positions based on changing market conditions
- Add international diversification gradually
- Never stop looking for quality companies at reasonable prices
“The key,” Dr. Lim emphasized, “is to start small and build conviction through research and results. Don’t try to implement everything at once.”
Chapter 9: The Lessons
As the morning sun climbed higher over Singapore’s skyline, Dr. Lim closed his notebook. “Sarah, let me share what forty years of applying Buffett’s principles in Singapore markets has taught me.”
“First lesson: Quality always wins, eventually. DBS might fluctuate between S$20 and S$40, but over decades, its dominance in Southeast Asian banking creates wealth.”
“Second lesson: Time is your greatest ally if you’re buying quality, your greatest enemy if you’re buying garbage. A mediocre company at a great price often becomes a great price for a mediocre company.”
“Third lesson: Singapore’s unique advantages – political stability, strategic location, strong institutions – create opportunities that patient investors can exploit.”
Sarah looked up from her notes. “What happened to Marcus and your wife’s portfolios in the end?”
Dr. Lim’s expression grew thoughtful. “Marcus is brilliant, but after ten years of constant trading, his S$100,000 became S$180,000. Not bad, but after accounting for stress, time spent, and taxes on short-term gains…”
“And your wife’s portfolio?”
“Mei Lin’s S$100,000 became S$520,000. More importantly, it generated S$18,000 in dividends last year alone. She built wealth while sleeping peacefully every night.”
Chapter 10: The Decision
Sarah stared across the Singapore River, watching office workers hurry to their buildings, probably checking their portfolios with the same panic she’d felt hours earlier.
“Dr. Lim, I have to ask – why are you sharing this with a stranger?”
The old man chuckled. “Mei Lin always said knowledge shared is knowledge multiplied. Besides, Singapore needs more patient capital. Too many smart people chasing quick profits, not enough building long-term wealth.”
Sarah made her decision. “I want to learn this properly. Can you teach me?”
“I can guide you, but the learning happens in the doing. Start with one quality company. Research it thoroughly. Buy a small position. Watch how it behaves through different market conditions. Build your conviction slowly.”
He stood to leave, then paused. “One final thought: Buffett’s greatest insight wasn’t about picking stocks. It was about understanding that stock prices fluctuate wildly, but business values change slowly. When you buy pieces of excellent businesses at reasonable prices, time works for you instead of against you.”
Epilogue: One Year Later
Sarah sat at the same riverside café, her laptop displaying a very different picture than the previous April. The market had recovered, her carefully constructed portfolio was up 23% while the STI had gained 18%, and more importantly, she slept well at night.
Dr. Lim approached with his usual morning kopi. “How’s the Buffett student doing?”
Sarah grinned. “Still learning, but the foundation feels solid. I managed to buy DBS at S$28, IHH at S$4.90, and SGX at S$8.60 during last year’s chaos. More importantly, when the market rallied in October and everyone was buying again, I started trimming positions and building cash.”
“And Marcus?”
“Still trading, still stressed, still breaking even after fees and taxes.” Sarah paused. “Dr. Lim, I’ve been thinking about your wife’s story. The real lesson isn’t just about investing techniques, is it?”
The old man’s eyes twinkled. “What do you mean?”
“It’s about having a philosophy that lets you live well while building wealth. Mei Lin wasn’t just a successful investor – she was probably a lot happier than most investors.”
Dr. Lim nodded approvingly. “Now you’re getting it. Buffett’s principles aren’t just about beating the market. They’re about creating a life where money works for you instead of controlling you.”
As Sarah packed up her laptop, she reflected on how much had changed. The numbers were important, but the peace of mind was invaluable. She had learned to invest like a Singaporean, think like Buffett, and sleep like a baby.
And in a world of endless financial complexity, perhaps that simple wisdom was the most valuable investment of all.
“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffett
“In Singapore, as anywhere else, the patient investor who focuses on quality businesses at reasonable prices will be rewarded by time.” – Dr. Lim’s final note in his wife’s investing journal
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