It’s amazing, really. Each time i revisit this site to update with a post, i arrive at a sudden realization that 3 to 5 months has passed since my previous post. It really is time i change my title to “The 24 year Old…”, man i’m old.
Before i delve into my financial strategy and expectations for 2020, i would like to reflect on my 2019 journey as well as to wish everyone a Happy Chinese New Year, may the year of the rat (my year :D) be a blessed and peaceful year for all.
Looking back at my past few years, my XIRR has somewhat grown (apart from 2018 where there was a cyclical downturn). As a reserved investor with a low level of risk appetite, i am satisfied with my average rate of return of about 8%.
Nevertheless, i am a little disappointed that my portfolio dividend has dropped in 2019 as compared to 2018. This is not in line with my goal of a passive income portfolio. As a matter of fact, my current portfolio has totally diverged from my ideal portfolio. I have mostly sold off my REITS for capital gains and am sitting on many finance industry counters which i will share in this post as well.
In 2019 itself, i made 12 buy transactions and made 13 sell transactions. Some for a small profit and some for a better than expected capital gain. However, it is with great shame that i am still siting on a >$1K loss on the Singtel counter even after holding on to it for the past 3 years. As it stands, my only other loss driver is Raffles Medical.
Moreover, i have sold off my ABF SG BOND ETF and am waiting to sell of my NIKKO STI ETF as well. I will be pouring my proceeds from these etfs into Stashaway, as i want some exposure to the US market.
Last but not least, a few posts ago, i was lamenting about how i was not able to secure a scholarship. At that point in time i was feeling incredibly down and out, and with that said, i would like to share the great news that i have been accepted into a scholarship program with a company and am now bonded to them after graduation! I worked really really hard for this so when i received the acceptance news i was over the moon. God is great and i am so very thankful for the opportunity. The pressure is however more present than eve as i am required to maintain a GPA of more than 3.7/4.0 at all times given any semester.
2019 in a nutshell was full of ups and downs, but it was fruitful and i learnt many things. I ended 2019 sitting on 9 equity counters and 2 bond positions, as below. Come 2020, i expect to see a shift in my investing direction.
It hasn’t even been a full month since the start of the new year but already things are uncertain and shaky. Wuhan Virus, Trump’s Impeachment, Trade Deals/Wars, Iran/US Dispute, and many others. While these are all big news that will impact global markets, i will strive to ignore the noise and focus on my long-term strategy. I feel that the current longest bull run will continue to tick upwards at least for the next 3 to 6 months.
This year, i will aim to offload low yielding shares such as Raffles Medical at a right price and accumulate high yielding REITs as well as average yielding blue chips such as the big banks. This is to increase my overall portfolio yield, which currently only sits at about 3.62%. However, i do see great long-term potential in the Raffles Medical counter and at its current price of $1.00, i feel that it is a good price to enter and i plan to accumulate right after writing this posts.
Some stocks with great prospects that i am looking to accumulate: Singtel, Raffles Medical, Wilmar, Riverstone Holdings.
With the current REITs pricing, i find it a little too pricey to enter most counters and i find the REITs market extremely overvalued. Apart from Ascott Reit (which i am monitoring because of the wuhan crisis) and Frasers H-Trust, i will not be entering any of the REITs given their current overpriced situation.
In 2019, i spent an estimated total of $10,600 on personal expenditure. This excludes utilities, and my average monthly expenses were about $500-$600. This year, i aim to bring this down to about $400 each month as i have been digging deep into my savings the past year.
That more or less wraps up what i have to share, and i wish everyone a BIG HUAT HAPPY CHINESE NEW YEAR! Thank you for taking the time to read, and please do comment below should you have any queries or would like to discuss anything! 😀