Cory Diary : Year 2024 Equity Result

Got a bad bout of stomach issue over the new year. Got myself into hosptal late at night, given a drip, some medicine and sent home. Bedridden for 4 days due to persistent stomach bloating pains after which finally subsides today. I will be doing a clinic follow-up today to see any long term remedy. Health is Wealth.

Got this off my head. Now how's my performance for Year 2024. 

Holding through Emotion Roller Coaster

If we include STI dividend, it will beat me a few percentage points in XIRR. For people who is new to XIRR is simply allowance for compounded return, money-weighted for irregular in/out of positions. Since is just a full year, the result is nearer to 17.4% returns for every $100 invested.

Despite STI performs better I am quite satisfied with Year 2024 result. Main reason being the Portfolio has significant Reits exposure which don't do so well this year. Year 2024 is also a concerted effort to build up US Market and I believe this is the direction to continue pursuing. The portfolio has grown over the past two years and it would have hit my personal target if I have not channel funding to Fixed Returns for Reserve.

So what are the key highlights for Year 2024.

1. Concentration on Banks help to uplift the portfolio. Willingness to allow Bank to exceed 10% allocation for a single stock helps to skew the result to match with STI Index. This move is an exception as bank is a unique asset class in local market that allow me to do that with much less concern. Offensive moves. From a low of 8% bank allocation in Year 2022 to more than 40% with re-balancing and fresh funds till Year 2024. And this despite reducing multiple times after the price ran up.

2. Cutting loss in Reits which has lesser chance for good recovery. Ie. Mlog and Sabana, locking capital in reits which is at higher volatiliy ie. United Hampshire Reit, containing exposure in oversea reits, and most importantly not injecting precious funds into new reits positions to antipcate recovery for capital gain. Instead focus is on strong reits that is able to command rental increase and maintaining dividends. Defensive measures.

3. Expansion into US market in larger way when I realised the earning power of Magnificent companies are much less appreciated. Strategy continues to be long term hold on them. Over the years this companies do well every year for the past decade except in 2022 which is a great opportunity that i missed.

Segments

If we are to explore by segment,

US market holds itself well negating Reit losses. As past actions cannot assume future, i did not anticpate Fed will cut rates quickly due to the economy is still runnig well depsite relatively high inflation. However it does rhymes which to me the cut will come. And when this happen at much slower pace, businesses are allowed to adjust and for that key reason i am not so worried on banks position though I wouldn't want to add more. 

What I find it tougher to estimate is the reit recovery. I make it a point few times that is the quick spike and not high rate itself that's the culprit. A strong reit will be able to comman rental increase for the cost. However, if the rental contract takes time to renew, the cost increase could not catch up in time hence lesser rental income therefore dpu gets hit.

Will Year 2025 be the time Reit will have new lease of life ? However 12 months are very long time in the market if the business aren't doing well. What make it worst is when there's politcal dimension to it. Hence, the reason to continue to avoid significant china exposure. It simply not worth the risk when we can get something good elsewhere.

Cory Diary

2025-0103

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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.