Review of Current Portfolio – June 2017

The objective is to keep track performance of current fair value of stock portfolio on hand. Doing regular review, half yearly or yearly is a good way to understand how our portfolio fares compared to the market.

The portfolio consists of mostly (~90%) Singapore stocks, while the remaining are US stocks. Stocks listed in Singapore are relatively lesser-known and give higher dividend yield. While stocks listed in US (NYSE or NASDAQ) are generally well-known, bigger companies (market capitalization >$5B). These companies are more stable & tend to be valued at higher P/E ratio.

Table

Based on snapshot above, we can see that:

  1. Most of the portfolio (>50%) are invested in small to medium companies (with market cap <US$1B).
  2. Portfolio invested in US market tend to be of those more stable, larger corporations with higher market cap.

Comments on each counter:

  1. Hotung – is a consistent performer. It steadily gives high dividend year in-year out (>8%yield). I’m treating this almost like a fixed deposit. Mr Market has slowly recognized its value – especially since beginning 2017.
  2. Stamford Land – is an asset play & I was expecting privatization some time back (which didn’t materialize). Yield has been so-so. They cut the dividend a year ago and now it gives $0.01. In the long term, holding cost / opportunity cost might prove too big. Has been holding for >3 years now.
  3. Penguin – is a cyclical stock. All shipping and O&G companies are. I just happend to learnt this a bit late. The share price peaked in August 2014, when it was traded at $0.275 (price before share consolidation).
  4. Lippo Malls Trust – Exposure to Indonesia large middle class population. The counter has been consistently giving ~10% yield annually since 2015 due to we purchased it at low cost base. Need to monitor if the dividend can be maintained. Political situation may detrimentally affect. Especially with the Indonesia presidential election coming in 2019.
  5. New Toyo – is a stable performer. The company is a packaging manufacturer supplying to cigarettes companies. Consistently gives annual dividend since 1998 (>5% yield). Expecting EPS increase due to its recent acquisition of PT Bintang Pesona Jagat (from Bentoel group) in Indonesia.
  6. Keppel Corp – purchased at around $5.2 during the oil price turmoil in Jan’16. Sitting on paper gain. On hindsight, good decision to buy. Plan to accumulate when price dips.
  7. Pollux Properties – was impressed by its property when visiting Semarang 3 years ago during our holiday trip. I also like the Louis Kienne serviced residence in Havelock Road. Like the serviced residence even more after staying there for a couple of nights. The stock is definitely undervalued. However it remains to be unknown when the value can be unlocked. This is extremely illiquid counter with no dividend. Patience will (may) get rewarded
  8. Accordia Gold Trust – attracted by its high yield (>7%). The counter pays dividend semi-annually every June & December. Purchased Accordia when I was taking golf lesson weekly. I like the idea of getting my golf lesson paid by the Accordia dividend.
  9. San Teh – initially purchased based on expectation on one-time large dividend. This is an asset play.
  10. Frasers HTrust – wife’s pick… exposure to hospitality sector with hotels & residences spread across Asia & Europe.
  11. Global Investment – it is linked to Temasek Holdings. Purchased mainly for its dividend. High dividend yield ~10% at our cost base.
  12. Casa Holdings – initially thought to be undervalued stock. The company then decided to expand into property development in Malaysia. With the oversupply situation in Iskandar Malaysia, on hindsight the company should’ve just stick to its expertise as home appliances distributor.
  13. Shell – High yield (7%, before US withholding tax). Dividend has been stable. Big multinational oil & gas company with long history. Expect increasing demand for LNG and energy in the near future.
  14. Teva Pharmaceuticals – purchased as price was close/at 5 year low. Initiated coverage to Pharmaceuticals companies.

Overall, the portfolio is a mixed bag of consistent performers and some counters which can be considered for divestment. Total of 14 counters in the portfolio remains manageable. There is opportunity to reduce the number of counters & concentrate into few strong players.

On a separate note, I’m also on-board the idea of having child’s portfolio. The portfolio focuses on long term. This is meant to be buy-and-hold strategy. Hence, the companies selected is a mixed combination of relatively-safe high yield counters and large companies with high potential or catalyst.

table Savio

The long term objective of this child’s portfolio is to cover 100% full year tuition’s fee with annual dividend. Hopefully, by the time he’s entering primary school age, the annual dividend would be sufficient to cover his school fees. Until then, dividend received will be automatically reinvested into the portfolio.

 

Beginning of The Journey – 3 Lessons for Beginners

 

start-a-journey

It’s not easy to change a habit. Really! This blog was born because I started to adopt a new habit. It’s been almost eight years now since I started to take investing seriously. And I’m still learning till now. It would have been a more fruitful journey had I documented my logic and thought process when making every investing decision. Anyway, it’s better late than never. So here it is. This blog will serve as my virtual journal to keep track and record.

Back in March 2009, I still remembered how I stepped inside the Phillips Investor Center in Toa Payoh Central. It all started from a spark of curiosity and a desire of improving my personal finance situation.

If I could turn back time, here are the top three advice I would tell my old-self:

  1. Never let others to be in charge of your finances – Somehow after reading so many books on finance and investing, I decided that one way to improve my finances is by taking it into my own control. It’s my money anyway.  I work hard for it. Why trust it to others? I used to have a portfolio of unit trusts managed by an independent financial adviser. But apparently, their interests are not always aligned to yours. I suggested to take profit, but he suggested to hold. It was January 2007. The peak of the market. After then, huge losses came in and I had no choice but to liquidate back then. Looking back, I could have just sit still and let the portfolio rebound. But I was not enlightened enough back then.
  2. Always seek to learn – Learn new knowledge. It can be from books, from a mentor, or from a community. With the internet era like now, it’s even getting easier to obtain information. I found that certain websites such as ValueBuddies has a collection of quality posts and ideas.
  3. Try not to lose a huge sum of money along the way – Your capital seed is limited. It’ll take a 100% gain in order to compensate a 50% loss of our portfolio. Never make huge risky bets with a substantial amount of your portfolio. Try to limit risky bets up to 10% of the portfolio. Here comes the important lesson of portfolio allocation. If your bet turns out to be a bad one (you never know Chris!), you won’t lose big time.

I am sure that there are other crucial tips for beginners who’re just about to embark on their journey. Will share them along the way.

Volunteering at Trans Jakarta – A Day of Service

 

Harmoni Central Busway Transjakarta 1

5.00am is definitely still too early to wake up on a Sunday morning. Most people would still be at their bed sleeping. Lazy Sunday. There’s no way I can enjoy this on normal weekday. My alarm clock rang at 5.00am today. It is definitely a reminder that today, 21 May 2017 is a day where the company organized the volunteer event in cooperation with Trans Jakarta. Trans Jakarta is transportation system Bus Rapid Transit operated by PT Transportasi Jakarta. The Trans Jakarta buses serve a total of 12 corridors.

On this day, we were scheduled to gather at 6.30am at National Museum, a very popular museum just a stone throw away from National Monument, a.k.a. Monas. Surprisingly when I arrived there, the area seemed to have started its day, busy with its morning hustle bustle. Two middle-aged men were jogging on the pedestrian walkway. Some ladies were walking slowly in their sports attire and sports shoes. Not all people are lazy, I said quietly.

The event started at 8.00am after our CEO gave his introduction speech about how important volunteering is. Volunteer is not just part of CSR (Corporate Social Responsibility). Instead it is part of the spirit that we belong to the same community. We were split into three tasks. The first task  is being the bus attendant, another is being the shelter attendant, while the last task is cleaning service. I picked the last task. Smart choice, Chris! I thought it would be easy ride all along. Considering bus attendant and shelter attendant have the responsibility of guiding the passengers.

It’s been a while since my last time holding a “kanebo” (the yellowish absorbent towel) and a cleaning towel and a pail of water. But what’s the fuss? Let’s do it anyway. We are here to volunteer.

trans jakarta

Cleaning the Trans Jakarta halte bus (i.e. busway terminal) is apparently not as easy as I thought. We were assigned to handle Harmoni terminal, which is the central interchange in Corridor 1 of Trans Jakarta. I met with Pak Enza, the cleaner staff. Together with all other volunteers and the cleaner staff, we cleaned all the windows and grills at Harmoni terminal. A simple task that could be quite tough, considering we have to operate under the stinging hot weather without air conditioner. I guess we are just too used to the office air-con environment. After 11am, we were called by our event coordinator. She must have taken pity on our sweaty filthy clothes. It’s time to end the activity. Such a short time frame of three hours, but it’s enough to make me sweating crazily and my body kept pleading for liquid.

In summary, actually we should be the ones to be thankful for being given this opportunity. It makes me fully appreciate their hard work, which sometimes goes unnoticed. It’s also a rare chance to meet and work together with the people of Trans Jakarta, those who relentlessly provide fantastic service, day in day out, to all the passengers. Thank you!