Portfolio Update: February 2018

We saw a little bit of volatility at the start of this month. In fact, within a couple of days, our overall portfolio was down by more than $10,000 at one point in time.

This episode is a good reminder to myself that market movements are not within my control. I only have autonomy over my own actions. There’s only 3 things I can do in the stock market. Buy, sell or do nothing.

In a falling market, I prefer to narrow the choice to 2 to simplify decision-making. Either do nothing or buy some stocks.

And yes, most of the time, we did nothing. After all, we do not have a bottomless cash pile. This also meant that we did make a couple of purchases.

Overall Portfolio (Value: $432,000)

Monthly Change: -$6,000 (-1.4%)

Yearly Change: +$42,000 (+10.8%)


1. 15HWW Permanent Portfolio
Both the STI ETF and Berk B came down from their lofty highs last month but this sub-portfolio is still seeing respectable returns at 7.4% p.a.

USD-SGD Rate: 1.32

UOB 50 Gram PAMP Gold Price: $2,831 x 6 = $16,986

Annualised Return: 7.4% p.a. (Jan 2017 to Feb 2018)


2. Personal Picks
With the looming fear over interest rate hikes and higher inflation in the US, it’s not surprising to see the REITs retreating.

I also managed to add 2800 shares of ST Engineering @$3.22 a week back. 

Annualised Return: 6.7% p.a. (Nov 2010 to Feb 2018)


3. DWI Picks
I subscribe to Dr Wealth Insiders (DWI) as a form of diversification. Only time can tell if I had made a good choice. And for obvious reasons, I will not be revealing the make-up of this portfolio. However, I can probably still document it by noting down a few comments and indicators below.

This month, one of the stocks in the sub-portfolio tanked by 25% in a single day. That’s a new experience for me and that literally wiped out all the gains I have had so far in this sub-portfolio.

It also drove home the importance of having enough diversification. Before the big drop, the stock comprised less than 2% of the entire portfolio. So even if the stock was to correct by 50%, it’s only a 1% drop overall. Something I can live with or easily recover from.

A few weeks ago, I also made my first foray into Bursa and added a stalwart of the KLCI.

Sub-portfolio Value: $80,822

Number of local stocks: 6

Number of international stocks: 5

Annualised Return: 0.7% p.a. (Sep 2016 to Feb 2018)


4. Warchest
This is the amount of cash or cash equivalents we have that is ready to be deployed.

Warchest Value: $74,000


“Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas” – Paul Samuelson

Thanks for reading.

 

15 Replies to “Portfolio Update: February 2018”

    1. Hi B,

      Do you have MTQ? I remembered you sold it some time ago.

      I am definitely going to get what I am allocated. It’s not alot of money since I only have about 10,000 shares.

      But whether I can make back the losses would depend on the amount of excess rights I apply for and how much I get. I have a feeling there could be lots of rights not taken up so I could be cautious and just apply for at most a few thousand shares.

      What’s your plan?

      1. I don’t have the mother share right now but the exercise rights price at $0.20 is indeed in my opinion quite a steal.

        I am still pondering if I should get mother share like you and then apply for crazy lots of excess (i also think there will be lots of excess) or then buy the rights at a later stage.

        I think on a risk reward level MTQ could be worth a decent bet.

    1. Hi,

      I hope to achieve above 8% in the long run. A good point to evaluate if the strategy is working would be the 5 year mark.

      1. 8% isnt exactly a lot for Value investing.
        It’s like market/index return. In fact, index return may be slightly more than this.
        so what’s the pt of following dr wealth?

        1. Hi anon,

          I think it really depends on the index we are comparing to. Even if it is the same, I would prefer the additional diversification.

          1. International stocks then compare to s &p or total world index.. index is already diversified..

            Dont compare to sti… it’s crappy and sure can beat the index as a consolation prize

  1. what’s your take on those companies who have lost value such as MTQ, Boustead, Singtel, etc. ? their share prices have bottomed out over the past several years… are you going to wait for a rise again?

      1. Arent their means on downward or sideway trend as well given they have been behaving like this for at least a couple of years

  2. Curiously why DWI roi so low? Coz I used their strategy to get many double returns, like the recent p…, and earlier e… m…

    But I didn’t join the club. Thinking to join.

    1. Hi Tony,

      I also wish the ROI is higher. Their portfolio consists of more than 30 stocks, while mine is just about 10. So it’s only a part of theirs and perhaps I have been a little “unlucky” and missed out on some of the two baggers.

        1. Hi Henry,

          I am not sure what is their current rates as it has been some time since I joined.

          Best is to email Dr Wealth directly.

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