Sunday, April 18, 2021

Portfolio Updates (April 2021)

Nasdaq has recovered from its bloodshed months in February and March; however, the rising tide to lift all boats didn’t play out too well. While most of the large cap tech stocks such as Apple and NVIDIA have recovered in my Growth Portfolio, the mid cap stocks, which have no bottom-line, continue to underperform. 

There haven’t been any new additions in my portfolio other than shares of the ARK Genomic Revolution ETF (ARKG). Cathie Woods, the brain behind Ark Invest, rose to fame last year after predicting Tesla would be a multibagger. The resulting 695% returns in Tesla’s shares made Woods into an investment celebrity overnight, and followers have intently taken her market predictions as gospel. In one of her interviews, she claimed that the next Tesla could come from the genome sector, which exploded into an overnight sensation after her novice followers jumped onto the gene-editing bandwagon.

However, when these stock prices ran ahead of fundamentals, the feeding frenzy died down. Following an outflow of funds towards value stocks, I took the opportunity to reevaluate the prospects of gene-editing companies, and purchased shares of ARKG. After all, the best time to buy a stock is when there is blood on the streets.

For my growth portfolio, I have increased my position in Teladoc, Opendoor, Lemonade, Palantir, Qualcomm, Ganfeng Lithium and Tesla. As for my dividend portfolio, I divested 589 shares of OCBC +27.69%. If local bank shares i.e. DBS, OCBC and UOB continue their uptrend, I will take some money off the table by selling on strength.

As there hasn’t been much changes in these short two weeks so I will update my portfolio value and share my thoughts on Qualcomm.

Qualcomm

I like Qualcomm’s business model because I believe the company will be one of the biggest beneficiaries of the 5G rollout; therefore, I will progressively add more shares for Qualcomm to become one of my top holdings. Qualcomm stands for Quality Communications, and it derives revenue from three main segments: Qualcomm CDMA Technologies, Qualcomm Technology Licensing and Qualcomm Strategic Initiatives.

Qualcomm Strategic Initiatives (QSI)

QSI invests in young companies which complements its CDMA products and services. It's the smallest revenue segment and only contributes less than 0.2% of overall sales.

Qualcomm CDMA Technologies

Qualcomm CDMA Technologies concentrates their sales in processors such as the System of Chip (SoC) Snapdragon series and X series modem. With the exception of Apple, Qualcomm dominates the smartphone SoC market as its technology has been advancing by leaps and bounds.

Qualcomm hopes to get lucky with Qualcomm Snapdragon 888 5G


 
Qualcomm Technology Licensing

Qualcomm’s technology licensing segment grants the right to use its intellectual property portfolio, and managed to get Apple on its knees by charging the smartphone company $7.50 USD per iPhone sold. It was notoriously known for its "no-license, no-chips" policy. In 2019, Apple wanted to use Qualcomm chips in iPhone XS, iPhone XS Max, and XR but in light of a legal battle between Apple and Qualcomm, the latter decided against selling chips to Apple. The royalty dispute ended with Apple paying an estimated $5 to $6 billion in exchange for Qualcomm to supply chips to Apple for the next six years. Although Apple acquired Intel’s smartphone business to build its own cellular modem, it will take years before it can begin to catch up with Qualcomm’s modem technology.

Apple's iPhone 13 is reportedly using Qualcomm's Snapdragon X60 5G modem


In the past, consumers have not felt much of an impact in the transition between 2G to 3G beyond simple handset upgrades; however, 5G is a disruptive force and revolutionary game changer that is the key behind remote surgeries, full self-driving cars, and other futuristic endeavours that require the low-latency network 5G hopes to unlock. You name it, they’ve got it  However, the success of 5G much depends on Spectrum Access, and in country like US is still facing a lack of 5G infrastructure due to high costs and spectrum shortage. Let’s face it, we all know that Huawei is winning the 5G race. So we are likely to see China being the world’s no. 1 in 5G gear rollout. That probably explains why Elon Musk is investing his automobile operations in Shanghai. 


(1) Dividend Portfolio



(2) Growth Portfolio

Stock Portfolio: $469,359

Cash at Hand: $91,870

Total Portfolio value= $561,229




Goals for 2030- 14.36% achieved



Goals for 2022- 96.12% achieved


Portfolio 1 Net Worth (Dividend+ Growth): $469,359

Portfolio 2 Net Worth: $192,197

Cash at Hand: $91,870

Net Worth (Cash + Equity): $753,426

On a side note, today happens to be the last day of tax filing for Singapore tax resident, so please remember to file your tax if you haven't done so!

How did your portfolio perform in April?

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2 comments:

  1. Hi, don't you feel you are holding on to too many counters? You can hardly do the proper due diligence and monitoring on that many counters.

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    Replies
    1. Hi! Thanks for dropping by!

      Everyone has their own investment playbook and I buy into stocks which fit my investment criteria.

      As for my case, I have liquid cash sitting in my HK and MY bank account; hence I ended up buying a few MY and HK shares instead to hedge against inflation. Wouldn't have bought them if I didn't hold these foreign currencies.

      I will be divesting SG banks shares soon too.

      Delete