Sunday, January 17, 2021

Portfolio Updates (January 2021)

 Equity market had a good start of the year and STI has finally touched 3000.00 last Thursday! But it felt short of my expectations as I was hoping the index to breakthrough 3,000 psychological support/resistance on Thursday itself.  Hence I am expecting some pullback before it stays above 3,000.

Whereas Nasdaq continued its climb to record high but ended modestly lower last Friday when Biden announced his $1.9 trillion stimulus plan and his tax proposals. Well that's the nature of stock market which the stock price reacts to every news that's going on but at least we can assured that market ups and downs won't be caused by single tweet anymore.

(1) Dividend Portfolio


Reits and bank shares in my dividend portfolio performed well in January which were lifted up my gains in STI and Hang Seng Index. Unfortuntately, I closed all my positions in Nikko AM STI ETF on the 6th Jan, just before STI's amazing run on the 7th and 8th January. Well that's life: you gain some you lose some. I also sold NikkoAM-STC Asia Reit on 30th Dec. 

Divesting UOL/Raffles Medical Group/CICT

These are small positions in my portfolio and I have mentioned in my earlier blogpost that I wished to sell it off through Standard Chartered asap. Unfortunately, it is still in the process of transferring those shares from DBS Treasures/CDP to StanChart custodian and it's taking forever. Nevertheless I sold 1,000 Thaibev last month for the same reasons: stock position is too small to be meaningful.

 Also, I have closed DBS treasures account since they don't allow selling/buying odd lots and charges a minimum fee for US/HK stock. It is probably a good thing after all, since I will have lesser stock platforms to manage.

Once all is completed I will have 18 shares in my Dividend Portfolio.

Lendlease Reit

It's the only share that I have added into Dividend Portfolio since December at $0.73, $0.75 and $0.755. I went to Somerset313 ad JEM during Phase II and I already felt like pre-covid times with the long queues and crowd. Coupled with travel restrictions in place, it will benefit from local tourism. Also not forgetting Sky Complex In Milan which has a WALE of 11.6 years, fully leased to Comcast Cooperation and contributes 34% of Net Property Income with annual rental escalation(based on ISTAT (1) consumer price index variation). According to management, broadcasting operations continue to be stable and rental has been collected in a timely manner with no waiver rental granted. 

While its hard to calculate its annual yield especially it has only paid out dividend twice, if we assume that it achieves its projected dpu of $0.0380, we are looking at yield of 4.6% at current level. Not too bad in the current low interest environment. Not forgetting that this Reit still has ample growth opportunity will gearing ratio of 35.6% and borrowing costs of only 0.86%

Currently it's still trading below book value of $0.85 and it's still attractive considering its strong sponsor acquisition pipeline and that most retail reits in SG are trading above their book values. 


Redevelopment of Grange Road Car Park will strengthen Lendlease Reit's presence in Somerset Area



(2) Growth Portfolio

Last month, I closed my position on Aptiv PLC at $128.01 netting a gain of  27.5%, and Berkshire Hathaway at $229.65, gain of 31.6% and trimmed down on Arista Networks at $290.16,

I used the proceeds and cash to average down on Zoom, Square and Alibaba and initiated new positions on Lemonade and Fiverr and Salesforce. I will be writing a separate blog on Square which will be up within a weeks time. 

Alibaba

I believe much negative sentiment have already been priced in during the recent selloff with the antitrust laws, adrupt halt to Ant IPO and Jack Ma went missing. 

The stock is currently sitting at 31X PE Ratio, which is attractive for a growth company. Its Cloud segment: Alibaba Cloud achieved a YoY growth of 60% and management expects cloud segment to turn profitable in the next few months. They also further added that cloud computing is still in its early stages of growth and committed to further increase its investment in cloud computing.

A few days after anti-trust probe was announced, People's Daily published an article that the anti-trust laws are meant to help the tech industry and a necessary step to ensure healthy development of tech industry. I believe that after all, the success of Tencent, Alibaba, Meituan are the sources of national pride, and imposing crackdown on tech giants won't do any good to the Chinese Communist Party.

Stock Portfolio Net Worth

Late last month I deployed my cash at hand to topup to my CPF in Dec and used up part of my cash for investment, hence current cash is lower than prior month at $44,620.

Stocks Portfolio= $473,626

Cash at hand= $44,650

Total Portfolio value= $518,276

Portfolio 1 Net worth= $473,626 (growth+ dividend portfolio)

Portfolio 2 Net worth= $180,850.91

Cash at Hand= $44,620

Net worth (Cash+Equity)=$699,126



Goals for 2022- 88.76% achieved


Goals for 2030- 13.26% achieved

Closing remarks

Although I am ahead of schedule to achieve my 2022 goal of $583,910,  I have to take into consideration that a market correction can easily wipe out months or years of investment returns, especially the growth portfolio. Hence I goal is to ensure my overall portfolio beats my expected portfolio value every year so that if market ever gets beaten down, I can still achieve my financial goal in 9 years time.

I will be putting the pen down for now, as I am recovering from food poisoning as I wrote this. Since late Dec, I have did quite abit of research on Square (SQ) and did valuations by discounting the Unlevered Free Cashflow. Will post it once I have completed the writeup. If you enjoyed reading my blogs and wish to be notified whenever a post is up, do support me by liking my Facebook page here. Currently, I do not earn any fees through any affiliate programme or sponsor.



4 comments:

  1. I just bought some Landlease REIT for stable income, following your advice. =P

    ReplyDelete
    Replies
    1. Hi Yining,

      Thanks for visiting my blog.

      All the best to you. Haha, I am not giving advice, but just sharing my views. Hope you did your due diligence and it fits your investment strategy.

      Delete
  2. Hi, may I know what is Portfolio 2? And how is the spilt between Income and growth?

    ReplyDelete
    Replies
    1. Hi Warriortan, Thanks for visiting.

      If you read my previous blogpost, I have already indicated that I won't be disclosing my shares in portfolio 2 as it will not be used to achieve financial freedom. So it's meaningless to track it.

      Total Portfolio Value = Growth Portfolio+ Dividend Portfolio+ Cash

      Current allocation: 40% in Growth Portfolio and 60% in Income Portfolio. Will increase my allocation in growth portfolio with time.

      Delete