Monday, August 31, 2015

[SGX Portfolio] August 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 I've come so far from where I started. 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 August 2015.



Total Cost    $19,338.90     
Unrealized Gains-$1,588.17
Accumulated Dividends $642.92
Realized Gains$628.89

*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. 


August was a rather interesting month as the stock market made a swift move lower and it caught many people off guard. At the low, we were almost 20% off the highs which would technically be called a bear market, but if I am not wrong, we marginally missed that.

I saw weakness and I took up small positions in Semb Corp, Keppel, Religare Capita Comm, Sin Heng and King Wan.

Keppel and Semb Corp combined makes up a hefty 25% of my portfolio based on either cost or current market value. If their prices continue to drop, I would pump in more cash, but cap my allocation to them at 40% and just consider it as all my ammunition direct at that target board is spent, and I will wait out their market cycle. 

I did not have any sell orders this month, and I doubt I will be making any sells for a very long time to come. We seem to be entering the accumulation phase. Does the stock market takes 2 weeks to "bottom"? The answer is clearly, no.

Overall my portfolio is only down 1.6%, with the dividends and realized gains providing a good buffer in the recent weakness of stock prices. Without taking dividends into consideration, I am down 8.2%, which isn't too bad in my opinion. As expected, the XIRR of the portfolio has turned negative since the stock market is languishing. Even though my portfolio is negative, let me be clear that I am not fazed by what is happening.

Annual income from dividends is now expected to be about $1216 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 $101.33 and daily income to be $3.33.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.29%. 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.

In the coming months I expect the Singapore stock market to continue to perform poorly. My current strategy is to just brace myself and incrementally add on oversold opportunities. If my thesis is right, there are going to be plenty more opportunities in the coming months. I remain heavily in cash.

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?

4 comments:

  1. Keep at it! Small losses are ways to learn.

    I've taken substantial dollars off the equity market, not holding any bluechips - a couple of small cap only. I'm now day-trading on announcements and volume.

    I think the current recovery is temporary and more falls will come. Timing the market isn't smart, but for me it's still hard not to try!

    I'm also down on my J-REIT before distributions. I'm happy to leave those there for a few years, thinking about adding some more in a tax free "NISA" account.

    Recently I figured out to have $2m in cash by age 40 I need to earn 25% return average per year using my current capital. Mission impossible! Will still try my best :D

    ReplyDelete
    Replies
    1. Hi Shimamoto!

      I envy your skill and patience... I don't think I'm cut out to be a trader!

      I too think that there is more pain to come. I think given market history and how long we've gone without substantial equity downside, it really is very tempting to time the market now!

      25% per year is very intense.... I hope that you can achieve your goal! I think I will be quite happy if I can hit 12% a year! I want to retire early too, haha!

      Delete
  2. Hi GMGH.

    Would be nice if there is a comparison between your STI ETF vs Stocking Picking since the downturn started..

    So far if I am not wrong:

    STI ETF - 300 shares, Stock picking - Semb Corp, Keppel, Religare Capita Comm, Sin Heng and King Wan

    A chart of returns would be nice :)

    Smi)e

    ReplyDelete
    Replies
    1. Hi Smi)e,

      You seem to be getting a kick out of hoping my stock picking will underperform the STI and validate your strategy as superior. What are you trying to prove? That your investment strategy is the best?

      If you really want to chart the returns, you can do it because I won't entertain you anymore. You seem to be a lot more bothered than me. You can monitor me and then let me know in a few years time if I under or over performed the market benchmark.

      STI ETF total cost $914.10
      Current Market Value $882
      Returns -3.5%

      Stocking Picking cost $2485.10
      Current Market Value $2441.90
      Returns -1.7%

      Delete

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