Tuesday, June 2, 2015

[SGX Portfolio] May 2015 Update

As mentioned previously, this will be my attempt at having a monthly update of my SGX portfolio. I have also updated that page to include the historical growth of my portfolio. I find it personally encouraging to know that at this point last year I had almost nothing, but now I have accumulated a fair bit. Hopefully other people may be inspired and also decided to embark on their financial journey.
"The journey of a million miles begins with a single step"
Anyway, here are the current stats of the portfolio as of end May 2015.


Total Cost    $13,583.80     
Unrealized Gains$462.01
Accumulated Dividends $497.45
Realized Gains$547.55

*Total Cost is initial purchase cost of the current portfolio
*Unrealized Gains represents the unrealized capital gains on securities still held in the portfolio
*Accumulated Dividends is the total of all dividends collected thus far

*Realized Gains will only take into account the final net capital gain or loss after including transaction costs to close a long position on a security. 


Unknowingly, May was actually a decently busy month. I saw weakness and I took up small positions in Neratel, CapitaCom Trust, Food Empire, Suntec REIT, Keppel REIT, Tai Sin Electric, SembCorp Ind, Second Chance and Hotung. 

Although it looked like I added a lot of REITs this month, I purchased them before attending the REIT Symposium. The sales talk didn't really move me that much.

I decided to finally let go of China Fishery, which has net me a pretty decent 9.95% returns by accumulating it slowly over the past 6 months. It has run up higher since then, but I have no regrets. I felt uncomfortable that the stock price was going up when fundamentals were weakening, so I took the opportunity to get out.

Last month was an abnormality that saw that the amount of capital being used is actually decreasing instead of increasing. This was because I had no purchases and a few sells last month. Invested capital is back on it's increasing path with the bevvy of purchases I made this month.

I received $60.72 of dividends from 6 different counters this month. June looks set to be a dry month in terms of dividends.

Annual income from dividends is now expected to be about $865 for a full year, but of course I collected some and miss out others by not owning them the entire period. That brings the expected monthly income to $72.12 and daily income to be $2.37.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.37%. I have taken the lower bound estimate for most of my counters, so it is quite possible to have surprises to the upside. My portfolio yield is dropping as I am trying to limit my individual exposure to high yielding names to spread my risks.

What drives me with the sharing of my SGX portfolio is to show people an example of how one can work towards their dreams - with discipline and hard work.

Rome wasn't built in one day. Everybody has to start somewhere.

Where are you heading?

6 comments:

  1. I think with your portfolio size... maybe better to focus on just 5-10 stocks or buying the STI ETF instead
    those counters that you have that are 1% or less to your portfolio almost have no impact at all to your overall results
    if its under 1% even if its a good pick, say 30% gain... its still adds only 0.3% total returns.... almost nothing
    wouldnt it be better to focus fire on your top 5 or 10 picks?

    ReplyDelete
    Replies
    1. Hi Felix,

      If time and effort is the concern here, I have enough to spare!

      The problem with the STI is that it is bank heavy and they feel are pricey to me. I wouldn't want to buy the STI and have so much exposure to expensive (imo) stocks. Having a "one and done" method also allows no room for fine-tuning, to trim down and cash in profits on expensive sectors and load up on cheap ones.

      I rather pick 50 stocks which are all good choices, than pick only the best 5. SGX has so many stocks anyway, it's not hard to find multiple stocks which look promising.

      That's a bit of a tricky way of thinking then. How much of an individual position makes it too big or too small? And is that yardstick an objective one or a subjective one?

      Delete
  2. Just wondering which brokerage you use... You have almost 33 stocks. The transaction fee with that amount of trading would be overall higher if you concentrate on only a few stocks and buy more lots.

    ReplyDelete
    Replies
    1. Hi Anon,

      SCB is my broker. Since I started investing last year, my entire transaction fees so far is about... $40. That includes all the fees for buying the (current) 35 stocks that I hold and the 9 that I have sold off (both the buy and sell).

      I am very happy using SCB as my broker. I think that the "premium" to pay to own my shares directly through my CDP account without a custodian is just too expensive for me.

      For people with much bigger portfolios, transaction costs are usually not an issue. For young people or those with a small starting capital, I think this is a good way of managing your risks. Given a choice between being expensively diversified or cheaply focused, I choose neither.

      I want cheap diversification and SCB provides me with that :)

      I don't see ETFs as "cheap diverisification", but rather "cheap & lazy diversification", especially the STI ETFs.

      Delete
  3. Hi GMGH,

    I noticed Sembcorp Ind in your portfolio. I got 1 lot of it recently too. Would like to hear your plan on it, will you consider DCA it? I intend to DCA everytime it drops by 10%, i.e. every $0.40.

    Also, for the upcoming SSB, will you choose to all-in or bond ladder? I am thinking of doing a $3k ladder. Hard to decide on the amount really.

    Thanks and regards
    Jon

    ReplyDelete
    Replies
    1. Hey Jon,

      Yup, I think Sembcorp Ind looks mighty attractive to me at these prices! I don't think I have any specific accumulation strategy, but I've already picked up another lot at $4. At closing price of $3.90, it is tempting me to perhaps another one. Actually, I'm waiting for the "signal" by Sembcorp itself to start buying back shares before I get a bit more aggressive with my accumulation.

      For the SSB I think I will all-in whatever excess cash that I have and if rates go up I can always redeem a bit and roll it up into the higher rate. The "cost" is all opportunity cost, so it is imaginary, at least to me. Even if I don't redeem, I can just put in my incoming cash savings into the SSB. I don't think I have enough money to hit the limit, so that's not really an issue for me, haha

      Delete

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