Sunday, October 25, 2020

Sep 2020 - Yaruzi's Portfolio Update

 September was a bumper month for dividends. Total dividends received were $3,792.73.

DateSecurities NameFCYSGD
2-Sep-2020ST Engineering150.00150.00
4-Sep-2020Ace Hardware Indonesia886,008.1080.99
11-Sep-2020Unilever PLC60.37105.45
16-Sep-20203M Co49.0066.50
16-Sep-2020Raffles Medical Group Ltd560.00560.00
23-Sep-2020Royal Dutch Shell PLC-B181.80315.20
30-Sep-2020Tassal Group Ltd482.03469.16
30-Sep-2020China Mobile9,507.961,671.50

The global equity index took a breather in September. Strait Times index broke 2500 and Hang Seng broke the 24000 level. My portfolio value dipped to $823,125.60. Return YTD was -12.47%, XIRR YTD was -16.53%, and XIRR since inception -0.39%. I took the opportunity to add Tencent Holdings at HKD 505.5.

Link to Yaruzi's portfolio as of September 2020

Saturday, October 3, 2020

Aug 2020 - Yaruzi's Portfolio Update

It's been busy for me at work and outside work, hence the very late update. The total portfolio value increased slightly from July to $858,014.35. Return YTD was -8.76%, XIRR YTD was -13.06%, and XIRR since inception was 1.68%. I didn't inject fresh funds. I was selling my HDB flat and buying a private property, so I need the cash flow to complete the transaction. 

For the month of August, I received total dividends of $2,165.40. 
DateSecurities NameFCYSGD
12-Aug-2020Indofood CBP Sukses Makmur Tbk8,065,600.35746.31
19-Aug-2020Unilever Indonesia3,099,365.98283.53
28-Aug-2020Capitaland Mall Trust189.90189.90
28-Aug-2020Capitaland Commercial Trust30.0630.06

I also made a few purchases to increase my equity allocation from 89.90% in July to 94.57%. Below are my purchases in August.
4-Aug-2020Diageo PLCBuyGBP235.000027.10506,369.68
6-Aug-2020Carlsberg Brewery Malaysia BhdBuyMYR600.000023.200013,920.00
28-Aug-2020Carlsberg Brewery Malaysia BhdBuyMYR700.000022.720015,904.00
31-Aug-2020Capitaland Mall TrustBuySGD4,700.00001.94009,118.00

Link to Yaruzi's low cost portfolio as of August 2020.

Sunday, August 9, 2020

July 2020 - Yaruzi's Portfolio Update

The FED and the US government were successful in rigging the market. NASDAQ and S&P500 were creeping up and closed at all-time high OR near an all-time high. The US market performance diverged when it's compared to Asia and Europe major index. My portfolio was paying the cost of protection through the use of inverse ETF. On hindsight, I should just let the portfolio ride the volatility as the cost of hedging was not worth it. It's going to cost the portfolio much lesser if I just trimmed companies I had less confidence during a volatile time and continued to stick with the higher-quality companies. I was fortunate that I decided to liquidate FIRST REIT in June after sponsor's action that made me questioned their integrity.

Analyzing my own portfolio, dividend stocks seemed to be out of favor and was outperformed by growth stocks. This could be due to the market was discounting the dividend cut for the next 6-12 months.  For long term investors, the question we should ask was if the growth companies could maintain their high growth rate forever and if dividend stocks would never restore their dividend yield. I think the answer was obvious. For this reason, I believed dividend growth stocks were in the sweet spot and would be a better choice than high dividend stocks or some growth stocks with very high multiples.

In the month of July, I received total dividends of $1,547.31 and made a fresh contribution of $5,000. I also added to my position in Ping An Insurance, Parkwaylife REIT, and Industrial and Commercial Bank of China.

22-Jul-2020Ping An InsuranceBuyHKD500.000086.150043,075.00
24-Jul-2020Parkwaylife REITBuySGD2,700.00003.36009,072.00
24-Jul-2020Ping An InsuranceBuyHKD500.000083.650041,825.00
27-Jul-2020Industrial and Commercial Bank of ChinaBuyHKD11,000.00004.770052,470.00

Link to Yaruzi's low cost portfolio as of July 2020.

Friday, July 10, 2020

June 2020 - Yaruzi's Portfolio Update

June was a good month for dividends. I received dividends of $7,427.88, bringing dividends YTD to $11,509.76. Despite bumper dividends received and a fresh contribution of $5,000, the total portfolio dropped to $855,018.41. Return YTD was -8.59%, XIRR YTD was -16.82%, and XIRR since inception was 1.00%.

DateSecurities NameFCYSGD
1-Jun-2020Tencent Holdings Ltd112.5120.43
5-Jun-2020Capitaland Mall Trust76.5076.50
8-Jun-2020Unilever PLC58.99103.80
9-Jun-2020Ping An Insurance1,262.85225.17
10-Jun-2020Hanjaya Mandala Sampoerna1,751.221,751.22
16-Jun-20203M Co49.6568.83
18-Jun-2020First REIT768.18768.18
22-Jun-2020Kalbe Farma2,105,074.32205.35
24-Jun-2020Royal Dutch Shell PLC-B190.67330.87
24-Jun-2020China Mobile10,687.961,908.87
26-Jun-2020Takeda Pharmaceutical52,781.00683.20

When I reviewed the portfolio, I noticed the underperformance was mainly contributed by stocks or REITS that I considered "safe" and "cheaper" based on conventional valuation metrics such as higher dividend yield and lower price earning ratio. Those stocks that I perceived more "expensive" were the ones that held up better. If there was one thing I learned, I should have weighed more on the quality and the moat of a company rather than the valuation before investing to avoid "value trap".

On 1st June 2020, First REIT dropped by almost 30% from $0.885 to $0.635, before recovering some losses to close at $0.695, on news that Lippo Karawaci planned to initiate a restructuring process with First REIT with regards to the rental support it provided for its hospital. Due to the Covid-19 pandemic situation, the Lippo group felt that the rental support it provided was no longer sustainable. I felt the fundamental reason that made me bought First REIT in the first place has changed and that made me uncomfortable. The risk has increased significantly with First REIT future revenue and income streams depend on the solvency of Lippo Group. 

For the reason above, I exited all my First REIT position on 9 Jun 2020 at $0.715. Total loss was 18.48% after taking into account dividends received. I added Tassal Group and Carlsberg in June.

12-Jun-2020Tassal Group LtdBuyAUD2,800.00003.850010,780.00
12-Jun-2020Carlsberg Brewery Malaysia BhdBuyMYR500.000024.100012,050.00

Link to Yaruzi's low cost portfolio as of June 2020.

Saturday, June 13, 2020

May 2020 - Yaruzi's Portfolio Update

My portfolio performance suffered a dip in May. The hedge and the lack of allocation in US and technology companies played a big part in the underperformance. Having said that, the short term dip didn't really bother me as I invest for the long term. Unless the long term fundamental of a company has changed, I'll just ignore the noise and continue to invest and sleep well, while collecting dividends for the time being.

Return YTD was -7.36%, XIRR YTD -17.07%, and XIRR since inception was 1.48% at the end of the month. I added a fresh fund of $5,000 to the portfolio. If there was one important thing I learned throughout my investing journey aside from picking good companies, it would be having a good cash flow. The cash flow and holding power to ride uncertain times like this, so we didn't sell low and even bought more if possible, was what made the rich richer.

A lot of people think that picking the best companies is the key to successful investing. However, in my view, we should invest in ourselves first. My advice to younger investors will be to invest in yourselves so you become one of the best in your job or line of business. Combining good skills with prudent personal financial management, you will ensure a good and steady cashflow required to invest successfully. Many aspires to be the smartest, market-beating trader. Motivated by greed to get rich quick, they felt into the trap of fake gurus making money from the gullible (i.e: bei-kambing according to my blogger friends SMOL and Uncle8888)

Observing some weaknesses in May, I made quite a few purchases in the underperforming market such as Singapore and Hong Kong. See, we should always see crisis as an opportunity. There is always positive in every negative. I was particularly bullish on the long term prospects of China. I had no doubt that 20-30 years down the road, China would beat US hands down. I was also so happy that I could get my hand on a premium brand such as LVMH. I liked Hermes too, but it ran before I had the chance to buy it.

8-May-2020Industrial and Commercial Bank of ChinaBuyHKD11,000.00005.090055,990.00
18-May-2020LVMH Moet Hennessy Louis Vuitton SEBuyEUR30.0000335.900010,077.00
20-May-2020Raffles Medical Group LtdBuySGD10,000.00000.91009,100.00
25-May-2020Alibaba Group HoldingsBuyHKD300.0000193.700058,110.00
25-May-2020Alibaba Group HoldingsBuyHKD300.0000193.700058,110.00
25-May-2020Industrial and Commercial Bank of ChinaBuyHKD11,000.00004.940054,340.00
26-May-2020Indofood CBP Sukses MakmurBuyIDR8,000.00008,950.000071,600,000.00

I received total dividends of $1,380.12

DateSecurities NameFCYSGD
6-May-2020Bayer AG571.05874.28
29-May-2020ST Engineering300.00300.00

Link to Yaruzi's low cost portfolio as of May 2020.