Saturday, May 16, 2020

April 2020 - Yaruzi's Portfolio Update

Stock market indexes around the world rebounded in April. US, especially, staged a strong rebound supported by unprecedented money printing by the FED. The fear of losing out and greed fuelled the stock market up, despite many people losing jobs and uncertainties awaiting.

I bought Proshares Ultrashort S&P500 as a hedge. It is a 2xleveraged inverse ETF where it would gain value if S&P 500 lost value. I sold some China Mobile during the rebound to reduce my allocation on it and bought Ping An Insurance. I also bought ST Engineering.

3-Apr-2020Proshares Ultrashort S&P500BuyUSD340.000029.469010,019.46
3-Apr-2020Proshares Ultrashort S&P500BuyUSD340.000029.27999,955.17
8-Apr-2020Proshares Ultrashort S&P500BuyUSD360.000026.09999,395.96
28-Apr-2020Proshares Ultrashort S&P500BuyUSD440.000022.910010,080.40
20-Apr-2020China MobileSellHKD1,500.000060.400090,600.00
20-Apr-2020Ping An InsuranceBuyHKD1,000.000078.650078,650.00
24-Apr-2020ST EngineeringBuySGD3,000.00003.19009,570.00

As usual, I added $5,000 of fresh funds to the portfolio. Return YTD recovered from -11.55% in March to -5.48% in April. XIRR YTD was -15.91% and XIRR since inception recovered to 2.22%. Equity allocation was 79.83% at the end of April. Total dividends received in April was $280.42.

DateSecurities NameFCYSGD
1-Apr-2020Tassal Group Ltd260.77226.48
15-Apr-2020Carlsberg Brewery Malaysia Bhd166.4253.94

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

Friday, April 17, 2020

March 2020 - Yaruzi's Portfolio Update

Fear gripped the market in March as COVID-19 spread globally and took its toll. Stock markets all over the world kept hitting limit down and forced the FED's hand to announce an unprecedented stimulus. My heart went for the most vulnerable in the society. With the economy shutting down, these group of people lost their source of income. I think Singapore is rather fortunate as our government has been prudent in managing the country's finance and has the necessary reserves to tide us during this difficult time.

I have been preparing myself for a time such as this and March presented a good buying opportunity. I was on purchasing spree and used almost $185k from my war chest. I also took a small position in an inverse ETF for hedging when the market rebounded. Portfolio return YTD was -11.55% at the end of March and XIRR YTD was -39.45%. XIRR since inception was at 0%, practically giving back all the profits accumulated since 2015. Equity allocation was at 76.88%, cash and equivalent was at 19.51%.

9-Mar-2020Royal Dutch Shell PLC-BBuyGBP480.000013.06536,271.32
12-Mar-2020Gudang GaramBuyIDR1,600.000044,400.000071,040,000.00
12-Mar-2020Kalbe FarmaBuyIDR67,000.00001,055.000070,685,000.00
12-Mar-2020Diageo PLCBuyGBP275.000024.31236,685.88
12-Mar-2020Unilever PLCBuyGBP165.000038.10006,286.50
12-Mar-2020Berkshire Hathaway BBuyUSD37.0000180.17116,666.33
12-Mar-20203M CoBuyUSD49.0000136.07996,667.92
13-Mar-2020Heineken Malaysia BhdBuyMYR2,000.000021.843043,686.00
13-Mar-2020Tencent HoldingsBuyHKD100.0000341.800034,180.00
13-Mar-2020Alibaba Group HoldingsBuyHKD300.0000183.200054,960.00
13-Mar-2020Parkwaylife REITBuySGD3,000.00003.09009,270.00
16-Mar-2020Carlsberg Brewery Malaysia BhdBuySGD1,000.000019.962019,962.00
17-Mar-2020Parkwaylife REITBuySGD3,200.00002.84009,088.00
18-Mar-2020Royal Dutch Shell PLC-BBuyGBP670.00009.30906,237.03
18-Mar-2020Capitaland Mall TrustBuySGD4,800.00001.91009,168.00
18-Mar-2020Facebook IncBuySGD47.0000141.55006,652.85
20-Mar-2020Indofood CBP Sukses MakmurBuyIDR8,600.00008,349.709371,807,499.98
20-Mar-2020Unilever IndonesiaBuyIDR13,600.00005,275.000071,740,000.00

I received a total dividends of $1,113.58 in March from First REIT and Royal Dutch Shell. The cut in dividends should be expected with companies preserving cash to stay solvent.

DateSecurities NameFCYSGD
13-Mar-2020First REIT887.95887.95
25-Mar-2020Royal Dutch Shell PLC-B133.24225.63

Link to Yaruzi's low cost portfolio as of March 2020

Sunday, March 22, 2020

Seven Years of Abundance and Seven Years of Famine

Back in 2011, I was having severe depression. My health wasn't well, and I was under tremendous stress of losing my job and not able to provide for my family. The company I worked for went bankrupt and was bought over. You could read about my story here:
As the dark episode ended, I started afresh with a new job in a new industry in January 2012. For reason beyond my understanding, my Lord seemed to put a voice within me to meditate and observe the story of Joseph in Genesis 41. It was about the dream that Pharaoh's had and Joseph was given the ability to interpret it. God foretold Pharaoh's through his dream about seven years of great abundance that were to come, followed by seven years of great famine. Long story short, God gave Joseph not only the understanding about the dream, but also the wisdom to overcome the famine.

"Let Pharaoh appoint commissioners over the land to take a fifth of the harvest of Egypt during the seven years of abundance. They should collect all the food of these good years that are coming and store up the grain under the authority of Pharaoh, to be kept in the cities for food. This food should be held in reserve for the country, to be used during the seven years of famine that will come upon Egypt, so that the country may not be ruined by the famine." - Genesis 41:34-36.

If you have been reading my blog, you should know that I have been keeping aside some money from my monthly salary to build my investment portfolio a.k.a Yaruzi's portfolio. I used "a fifth" as a guide, though I didn't strictly follow it like a law. Some months I saved more and some months I saved less, but overall I think I save more than 20% of my income.

The bull market has been ravaging ferociously and honestly even until very recently, I didn't expect for the "famine" to suddenly come. As the covid-19 spread globally, it put an abrupt end to this long bull market. As panic and fear gripped the market, within a very short period, the equity markets globally lost 30% or more of their value.

Learning from the wisdom and revelation given to Joseph during the famine, these are the few principles I'll follow to overcome the difficult time.
  • Keep aside some cash and have it ready to be exchanged during the famine. I have faithfully done this the past 7 years and will continue to do so as long as I have my job as the source of income. In Joseph's time, it was grain. I believe in this age, it will be cash or cash equivalent.
  • Have patience and holding power. "Seven years of great abundance are coming throughout the land of Egypt, but seven years of famine will follow them. Then all the abundance in Egypt will be forgotten, and the famine will ravage the land. The abundance in the land will not be remembered, because the famine that follows it will be so severe." - Genesis 41:29-31. As God is merciful to the world, I strongly believe that the covid-19 crisis will be significantly shortened, hence the impact to the world economy will be limited. I really don't think it will last for 7 years. Instead these verses taught me the wisdom to have patience and holding power, as the recovery will take time. I have been buying quite a few in March, but the verse serve as a good reminder for me to phase my buying slowly because the abundance of the 11 years bull market would likely have to be erased first before the new bull market starts again.
  • There will be transfer of wealth. "Joseph collected all the money that was to be found in Egypt and Canaan in payment for the grain they were buying, and he brought it to Pharaoh’s palace." - Genesis 47:14. "So they brought their livestock to Joseph, and he gave them food in exchange for their horses, their sheep and goats, their cattle and donkeys..." - Genesis 47:17. "So Joseph bought all the land in Egypt for Pharaoh..." - Genesis 47:20.
  • The wealth is not meant to satisfy my materialistic wants. It was meant to preserve the apple of God's eye (the nation of Israel) and the gentiles (the Egyptians, who later enslaved Israel). Why does God bother to preserve the world? I believe the answer is because He always loves the world. So if you're the blessed ones, be kind and generous to your neighbour, who may fall into hardship. "For God so loved the world that he gave his one and only Son, that whoever believes in him shall not perish but have eternal life." - John 3:16.
I pray that God's blessing and protection is always upon us. Stay safe and be joyful, your salvation is near.