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.