The playground is one of the best places for kids to keep active, socialise and explore.
In case you have not noticed, most of the HDB playgrounds have been converted from sand-based areas to foam ones.
Gone are the days when you could see a playground like the one pictured above in Toa Payoh.
This is the famous “Dragon” playground built in 1979.
Foam has replaced sand for almost all the HDB playgrounds because of two simple reasons.
The former provides better shock absorption should a child fall, and is also much cleaner compared to sand.
The chance to play with sand
This little detail, however, did not stop a Caucasian parent from letting his child play with sand in an HDB estate.
As I was walking along a footpath near my block, I saw this ingenious adult with his two kids at a small clearing with spades and shovels.
They had found a small area beside the trees that was devoid of grass and the children were happily digging in the dirt and filling up their pails.
I could see the attraction.
With sand, you can dig deep, build sand castles and do all sorts of things that you cannot do with a foam playground.
It also made me realise how that Caucasian father dealt with the dearth of sand playgrounds in HDB estates.
The same example can also be applied to your investment portfolio.
Pivoting and adapting
This incident was a small but simple example of how people can adapt to a new situation and still find what they are looking for.
The same scenario plays out in the stock market often.
Shareholders of Singapore Post (SGX: S08) and the now-delisted Singapore Press Holdings were used to their “boring” businesses that churned out predictable cash flow and dividends.
Change was afoot, however, as the internet gained prominence.
Gone are the days when people will flip through a newspaper to view an advertisement.
Digital ads now dominate the landscape and are promoted by search engines run by Google and on social media sites such as Facebook and Instagram.
Singapore Post, too, is facing a crisis and has announced a strategic review as its Post & Parcel division posted a full-year loss for its previous fiscal year.
The investment landscape has been irreversibly altered.
So, what should shareholders of these two businesses do?
Like the Caucasian parent, they can also pivot and look for greener pastures, or search for an alternative to enjoy the “good old days” once again.
Finding dependable businesses
Remember that foam is deemed safer and could cushion against shocks.
You can also choose to substitute a once high-flying blue-chip company with another to cushion your portfolio against shocks.
Change is the only constant in the business world and you need to keep a watchful eye on how your investments are performing.
Nevertheless, there are alternatives and options out there for these investors to continue enjoying safety and security.
They simply must find other staid businesses that provide steady dividends and can weather the ups and downs of the economy.
Just as the father had to search for a small but suitable clearing for his kids, you can also source for suitable stocks to replace those that are flailing.
Instead of Singapore Press Holdings, you can rely on the dependability of the Tiger Balm brand that Haw Par Corporation (SGX: H02) owns.
And rather than suffer through the stress brought about by Singapore Post’s strategic review and the uncertainty associated with a declining business, you can choose to buy shares of a steady performer such as Sheng Siong Group (SGX: OV8) that sells necessities and consumer goods that people cannot do without.
The decision is up to you.
By adopting a watchful approach to managing your investment portfolio, you need not worry about some of your investments becoming duds.
You do, however, need to bite the bullet and reallocate your money to more promising stocks.
Your future self will surely thank you for doing so.
By the time your child grows up, inflation will have gobbled up their savings. If you not only want to protect their money but also grow it, there are 3 SGX stocks you can consider buying. One has already proven to give a 55.8% dividend pay rise. Get all the details in our latest special FREE report. Just click here.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
