Monday, November 15, 2021

Portfolio Update (Nov) and & my position in Chinese companies! (average price and total no. of shares)

November has typically been a good month for investors if history is any indication. This is particularly true for tech investors, with Nasdaq smashing past the 16,000 points psychological barrier on 5th November which was attributed to stellar jobs data. We are just halfway through the month and many analysts believe that the stock market is poised to gain more steam in the next few weeks.

Peloton (NASDAQ: PTON)

Despite the positive market sentiment, I have not been purchasing any stocks in November other than picking up shares of Peloton. Despite the pessimism surrounding the prospects of Peloton, I remain optimistic about the future of the connected fitness company. While it recently reported an operating loss as a consequence of poor marketing strategy, its subscriber base still continued to grow albeit at a slower pace. If management can execute well in the subsequent quarters, given enough time, I believe this innovative product will be able to cross the chasm from being a niche product to a mainstream product. I will be doing a quantitative and qualitative analysis on Peloton on a separate blog post.

Tesla (NASDAQ: TSLA)

I count myself lucky to be able to pick up more shares of Tesla at about $800+ USD before it headed to the $1,000 USD mark. Though the company is firing on all cylinders, the $1 trillion market cap may likely be short lived as Elon Musk began selling 10% of his shares. I took advantage of the volatility spike and wrote some Tesla put options. I have successfully closed my short positions but held on to the $700 USD put expiring on 10th Dec. I am still deciding if I should still on hold given that Tesla may have more further downside in the short term. But I am definitely hodling on to my existing shares.

Growth Portfolio


Aside from Chinese tech giant stocks which have been relatively muted, their US counterparts such as Shopify, The Trade Desk, AirBNB, Roblox, and Nvidia exploded and hit all time high. I have managed to add more shares of AirBNB and Shopify during post earnings before it exploded, which contributed to my total returns in my portfolio. Both companies ranked high in terms of my conviction level, alongside Tesla and Coinbase. As mentioned in my previous blogpost here , I will be Coinbase at $300 USD and am waiting to increase my position at $200 + USD levels if the market presents the opportunity.

Dollar Costs Averaging (DCA) Strategy

I have been DCA-ing Tencent Holdings since 2018, but I will be hitting the pause button in Jan 2022. It is because I would like to reserve a higher portfolio allocation for stocks that can potentially do a 10X in 10 years. Currently, the tech titan makes up close to 10% of my portfolio and I foresee that it will occupy 15% of my portfolio when the Chinese market recovers and the stock regains its glory. Being a mega cap company, it’s hard for Tencent’s share price to triple or quadruple, let alone 10x, due to the law of large numbers. Typically, as a company grows, each incremental revenue represents a larger number due to high base effect. Hence, as business expands, it’s harder to maintain existing percentage rates of growth.

Also, years of investing has taught me that it can be tricky to value Chinese companies with the evergoing regulatory saga. The weakness in their price action despite having no news of fresh crackdown suggests that there's a lack of institutional investors investing in these companies. Even if tech regulations subsides and Chinese internet companies’ share price eventually recovers, I believe that the Chinese Communist Party can step in anytime to reshape the prospects of tech sectors with a stroke of a pen. It’s because the Chinese government follows a socialist market economy system, whereby the government must ensure a good balance between pure capitalism and people’s welfare. In a worst-case scenario where CCP limits the growth of tech companies causing institutional investors to flee from Chinese stocks, we could potentially end up in a value trap.

Dividend Portfolio


Mapletree Industrial Trust (SGX:ME8U)

I am still in the queue to sell Mapletree Industrial Trust (MIT) at $2.77. Unfortunately, the Reit price drifted downwards which lowers my probability of selling it in the near term. Current valuation suggests to me that a better option is to buy more of MIT on current price weakness and sell at a better price when it recovers. After all, tech stock valuations appear quite stretched and it’s probably good to deploy my existing cash to Reit for the short term.

Champion Reit (HKG:2778)

As for Champion Reit, I am waiting for the much-needed boost in stock price which will likely play out when the border restrictions between China and Hong Kong are eased. As of now, I will keep calm and collect dividends.

Profit/Loss for Chinese Companies:

NYSE:BABA


9988.HK (Alibaba)


NASDAQ:BILI



9626.HK (BILIBILI)


1211.HK (BYD)

NASDAQ:JD

2382.HK (Sunny Optical)


700.HK ( Tencent Holdings)

1810.HK (Xiaomi)


Crypto Portfolio


I have added Solana into my crypto portfolio and injected additional funds into Bitcoin and Ethereum early this month. A few weeks trying out Huobi, news came that Huobi Global will be exiting the SG market by March 2022. Hence, I have spent yesterday afternoon researching for a new crypto exchange to use and with the lowest likelihood of pulling out of Singapore. After much YouTube-ing and Google-ing, the crypto platforms which best suit my needs are Gemini and FTX. I like Gemini due to its ease of use and free withdrawals but didn’t quite make the cut because it doesn’t allow me to purchase Solana. Nevertheless, I will be using Gemini to buy Bitcoin and Ethereum and take advantage of the free withdrawals to transfer to Hodlnaut to earn weekly interest. Whenever I wish to buy Solana, I will purchase it using FTX and transfer it to a cold wallet. If you have any other good suggestions on which platform I should use, it will be greatly appreciated if you could leave a comment below.

Total Portfolio Value

Stocks and Crypto portfolio=$588,349

Cash on Hand=$92,040

Total Portfolio Value= $680,389 (+$27,470)



Achieved 91.87% of 2023's financial goal


Achieved 17.40% of 2030's F.I.R.E.goal


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