Singapore's most interesting stocks

The best stocks in the best market in 2025

Can we still trust Uncle Sam?

The United states has an incredible capital market. The American culture of ambition, entrepreneurship, innovation, and dedication to excellence, have made it the best place to invest over the past 50 years.

The countries’ entrepreneurs and leaders, have given it a leading role in Technology, Diplomacy, Defense, Economics, Finance, and many more areas of life.

Yet in 2025, given sky high valuations, large fiscal deficits, continued inflation, and rising geo-political tensions with approximately every country in the world, investors wonder "Is the USA still a great place to invest?”

Alternatives don’t look good though.

• Japan’s population is declining rapidly, trapping the country in deflation

• China’s government is keeping the local companies small, to survive

• Europe is still regulating its economy into the ground

• Brazil and Argentina make progress but still seem rather unstable

There just doesn’t seem to be a normal well-run developed country in the world anymore, where investors can deploy without constant political worries…

Look at Singapore

Enter Singapore. Political stability, growth, low inflation, a balanced budget, and good relationships with all global powers. Singapore is a tremendous place for investors

USA vs. Singapore public stock market investing climate

Looking at this comparison, we could imagine the Singaporean stock market to be very expensive, but fortunately, it’s actually full of small cheap companies/stocks.

Filtering through to Singapore’s best

Singapore has ~600 listed companies, many of which are micro-caps:

Money makes the world go round, so we like to look at profitable companies:

Compounding requires putting capital to work at high ROIC/ROE. We want to look at companies with >15% ROE first.

We think the only thing better than pizza, is free pizza. This is why we look at stocks with a PE ratio below 15. Looks like we came to the good place, as most stocks in Singapore are incredibly cheap.

Revenue growth is generally the biggest contributor to returns in the stock market, especially in small caps, as growth drives up adoption, liquidity, discovery, all that good stuff. We look at 21 companies growing >20%.

Screening often doesn’t work, because one ends up with lumpy, unpredictable companies which the market discarded for good reason… This is why we remove any companies without long term track record, or which we think operate in weak businesses, or which are lumpy/unpredictable, or where the data is just wrong:

We end up with an incredible collection of 12 amazing looking companies, a distinctive starting point for investment research.

Out of this group, we own 4 stocks, which we selected by going through all Singaporean companies 1 by 1 from A to Z. It’s funny how we look for quality growth stocks at a reasonable price, and how they can be put together based on quantitative criteria.

Which one do you like? Are you riding the Singaporean bull market?

Soilbuild Construction

We see Soilbuild in the chart, a company we own and covered earlier this year, in one of our write-ups. The stock is up ~110% since the article and still trades at only 10x earnings, with high ROE, growth and a strong balance sheet.

Soilbuild Construction

OKP Holdings

Or Kim Peow is not in the chart, because the large cash position hides its ROE%. This is a stock that trades at 8x earnings after a 120% run since our write up. We have recently exite-ed the OKP position because OKP has last 2 very large tenders, putting it’s >10% net margins into question, making it a less than perfect, but still interesting stock…

OKP Holdings

We will post a free write up on another Singaporean stock tomorrow & look forward to your kind feedback!

Floebertus