Cory Diary : Casting Wider Net for more stocks with $50k Budget

For the past months or weeks I have list of stocks that I like to get but did not. So in Year 2021, allocated roughly 50k to indulge myself by casting my net wider for more stocks for diversification and gain some exposure to segments that I have been missing out. Broadly for now, excluded hospitality and transport stocks that are tourists dependent. There could be a recovery theme but feel is not at the right pace. SAT, SIA Eng and STE have dependency too. Commodity, Oil and Shipping industries I have no interests.

Selection edge will be Tech, Diversification, Sustainable Yield, Currency consideration and if possible management.

1. Sheng Siong

Sold some of the this share last year to consolidate the number of my counters as the amount it not huge but to my regret because it shoots up after. This is one thing I learned that don't consolidate for sake of it. After going one round, decide to explore this gain. There is a significant correction from peak though. As a Supermarket business, they also support online order which I find it interesting. With Covid still in play, expectation is the next Q report expects to continue to be colorful. The question is what happen after ? Will they able to continue to perform ? Get some first.

2. Venture

Tech Solution company. Doesn't look like is cheap and do not have a good feel on the company. Will need to do more homework and education to know the company better. Quite opaque to me to understand their operation and future. I won't have much conviction even though I really wish to add a Tech company to my basket but this is out.

3. EliteComReit

This provides roughly 6% yield but there is currency risk due to their properties are in UK. Tenant wise is UK gov on triple net lease. The stock is traded in pound so there is need for special management on the invest money and rate. New IPO risk ?  Diversification from Singapore ? Most of the building I see from the photos seems quite old but to be fair freehold afaik. Risk play wise, with Brexit and leadership in the gov, there are good chance GBP will strengthen. For risk adjust a stake as we monitor will be nice. This will help provide a small boost to the average dividend if this works well.

4. Boustead or Boustead Project

With the recent fund setup to hold properties of Boustead project which Boustead is vested, value is unlocked. There is interest due to the high NTA after but the dividend yield is low based on past record. This could change ? I could try Boustead Project instead but risk could by higher but returns look much higher. We could see a re-rating but need to do more homework if going invest deep. A small stake first to keep up my interest up first in Boustead. Will need to do more homework in Boustead Project. 

5. Keppel DC Reit (KDC) or MIT (more)

The yield is very low but DC gives a nice story. Stock price has come down from high. Maybe 10% discount from peak. Is that cheap enough ? A better alternative could be MIT but still is not cheap. Their downside in rental during this period will likely be safe. I could wait a while longer but then missed an opportunity to ride on Tech related exposure which is sorely lacking in my portfolio for growth. A small initial investment in KDC. I already have some MIT in my portfolio.

What's your thought on my new selections ?

Cory

2020-0106

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Cory Diary : Annualized Returns since Year 2007 and Earlier

One of the interesting way to measure share investor performance is to use XIRR for multi-years computation. And this can be done easily summing up all the years of transactions that we usually keep annually.

If you are aware, in some measure, past year very old data may "cloud" years of recent performance. Some may practice 20 years cutoff as a compromise. For Cory Annualized Performance we can try as follows.

14 Years of Annualized Result

ANNUALIZED

Cory Annualized Performance ...

of last 14 Years will be 7% which starts from one year before 2008 GFC. This is captured in above chart. This returns pretty align with 3 Years and 5 Year benchmarks.

If we retain the recent years of data only,

Last 03 Years will be 7.1%

Last 05 Years will be 7.5% 

Last 07 Years will be 5.2% which reflects poor returns in Years of 2014, 2015 and 2016 periods

Last 10 Years will be 6.1%

GOALS

Therefore for Year 2021, the Goal is to be above 7.5 % Annual Return in order to improve in all the above levels. And therefore achieve consistent above 7% returns.

Stretch goal for Year 2021 will be 17.8% annual return to achieve 8% annualize of 15 years. That is how hard to move a needle of 1% on 14 years data. This will be a tough one to get for a dividend portfolio and may required some re-engineering on my part. I will need to put a thinking cap on this.

STI ETF

For STI, is -0.7% for 14 Years annualized data. STI Index has never recovered after Year 2009 rebounds. So if we are to include STI ETF dividends probably 3%-4%. We can try 3 Years and 5 Years data and I bet they will not be swimming well. This broadly defines the impact to Singapore Economy on Oils Sector follow by Covid-19.

I remember reading a challenge on re-investment of STI ETF every time dividends are distributed by STI ETF. What will the returns be like for the past 14 years then ?  To save time to do this. Allocated 11.5 cents dividend to each year and reinvest equally on 1st and last date of their respective year closing share price. The estimated answer I found is 3.2%.

Cory

2020-0105

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.

Cory Diary : Long Term Investment Results

There are few tricks when come to investment and there aren't much magical about it so far from my experience. A lot is common sense and this comes with personal experience or read up of others. Here's my result so far. The drawdown has been low. Gains have been accumulating. Portfolio size has grown many times.

Here's pointers. I think Point 8 is most important.

1. Be Risk Adverse : Position Sizing of each stocks even if average down. One way is to buy another stock of similar traits and average down by industry or different segments. There are usually bad reasons for a high yield stock else is a gem. Again sizing is important.

2. Cut Loss : Never wait for breakeven. Say one invested in stock 50k and loss 25k. A rebound happens and now loss is reduced to 15k but still deep loss. Cut loss if fundamental has change for the worst. Of-course if one is confidence that we can sell with gain and not due to false hope, it could make sense.

3. Take profit/buildup in stages : A speculative stock I may take 50% off table first. In good fundamental stock maybe 15%. There is no hard rule on % range for each stage. Some stocks may never start selling till price point hits. Same for increasing the size in an equity that we do in stages over time. 

4. Use TA for guidance : For some human behavior reasons there are tendency for stocks to move to around resistance levels. Make use of them for entry or exit. Not always.

5. FA for selection : Something to fall back on when broad market is down. You want to bet on something that will be uptrend long term while short term there are fluctuations. Management integrity is important. If we sense or find there is suspicion of potential misconduct or legality, avoid.

6. Diversification : For risk adverse, this can reduce our gains but we also cover our down sides. We can have bonds to minimize portfolio fluctuations however make sure it does what you hope too and not increase your risk. Amount allocation depends on each.

7. Peace of minds : If any position cause me to keep thinking or have sleepless night. Act on it quickly. The actions may cost but in the long run we will have healthy minds and body. And this is needed to manage our portfolio and our life.

8. Treat your portfolio as a holding company : And each stock a company in your holding. Unlike real life owner running their own company, stock investors have the flexibility to adjust the percentage of each company to manage the risk and rewards. With this mindset, is really a business of managing your holding company.

The above best describe my investment behaviors.

Cheers

Cory

2020-0102

Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.