Slow And Steady Wins the Race

tortoise hare logo 1 Almost all of us have heard the story of the tortoise and the hare. During a race, the hare ran swiftly and was so far ahead of the tortoise that he decided to take a nap halfway. The tortoise gets tired but he keeps going. When the hare awakes, he finds that his competitor, crawling slowly but steadily, has arrived before him.

Everyone wants to be like the hare – to get rich quick. It doesn’t help that the financial press constantly churns out news of the hottest shares in town. As a result, many private investors are always blindly chasing after the next big thing but often got side-whipped by the professional investors out there.

On the other hand, it is often the “slow and steady” that wins the race in the long run. I have often heard of stories where average investors who made their fortunes by simply parking their savings regularly into companies they understand, over the long term. Let’s take a look at 3 such companies Singaporeans are familiar with:

Sakae Holdings (SGX: 5DO)

Sakae Sushi has been operating in Singapore for a long time now with a strong brand recall when it comes to affordable Japanese dining. The company currently operates over 70 outlets in the Asia region and 9 brands in total including Sakae Teppanyaki, Sakae Pizza, Hei Sushi.

Its share price has performed exceptionally well – up 160.5% from 2 years ago. It is currently trading at around 11 times earnings and gives a dividend yield of 2% at the current price of $0.495.

Challenger Technologies (SGX: 573)

I am always impressed whenever I heard the story of how Challenger branched out from the Sim Lim Square to serve the people in the heartland malls. Established in 1984 as a retailer of IT products, Challenger has also grown from one outlet to a total of 36 outlets comprising two megastores, 23 superstores and eight mini stores in Singapore and Malaysia.

Its share price has performed reasonably well – up 42.3% from 2 years ago. It is currently trading at around 10.43 times earnings and gives a dividend yield of 4.23% at the current price of $0.555.

OSIM International (SGX: O23)

Lastly, we have the “divine” massage chair maker – OSIM. Besides selling massage chairs, OSIM also extends its interest in nutritional supplements and lifestyle products and recently ventured into the luxury tea business through a stake in TWG tea. OSIM is the global leader in branded healthy lifestyle products where it operates a wide point-of-sales network with more than 1196 Outlets in more than 222 cities across 30 countries.

Its share price has performed remarkably well – up 68.5% from 2 years ago. At current levels, OSIM is trading at a Price-to-earnings ratio of 15.18 with a 2.56% dividend yield.

Foolish Bottom-line

Peter lynch, one of the greatest investors of all time, discovered many of his great stock picks while walking through the grocery store or chatting casually with friends and family. The same goes for me as an average retail investor.

I love the feeling when I dine at the restaurants or shop at the retail stores which I own a stake in (no matter how small). Furthermore, being able to see their progress first hand gives me the confidence that the company is doing well and so is my investment.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.   Motley Fool Singapore contributor James Yeo owns shares in Sakae Holdings as mentioned.