Monday, April 12, 2021

Apr 2021 - Portfolio & Transaction Updates

No.

 Counters

No. of Shares

Market Price (SGD)

Total Value (SGD) based on market price

Allocation %

Category

1.

Manulife REIT

100,000

US$0.74

     98,300.00

26.0%

Dividend

2.

Alibaba

       300

US$245

     97,000.00

25.0%

Growth

3.

Lendlease REIT

  85,000

S$0.80

     68,000.00

18.0%

Dividend

4.

Starhill REIT

  90,000

S$0.55

     49,500.00

13.0%

Dividend

5.

AMD

       100

US$79.1

     10,500.00

3.0%

Growth

6.

ISHARESHSTECH

    1,000

HK$17.07

       3,100.00

1.0%

Growth

7.

Ho Bee Land

       300

S$2.40

          720.00

1.0%

Leftover

8.

Options (sell put) (IBKR/Tigers)

          -

-

     50,000.00

13.0%

Options Premium

 

 

 

 

 

 

 

Total

 

 

 

   377,120.00

100%

100%

I don't know if it is just me but time has flew really fast this year so much that it's hard to believe that we are already in the month of April.

If we just take a couple of moments back, we just had the US election in Nov 2020 and then soon after that we had Chinese New Year in the early part of the year. The overall standstill in the movement of the human population makes it feel like we are repeating the week in a flash with every seconds gone by.

Anyway, let's get straight down to business.

The end of Quarter 1 heading towards April was a great one.

I received dividends from the couple of REITs that I owned - with the likes of Manulife REIT, Lendlease REIT, Starhill REIT, Ascendas REIT and Prime REIT. At the same time, the tech market, especially the one listed in HKG was also undergoing a little bit of correction and volatility. The chip shortage ongoing issues also mean that manufacturers and production was mostly delayed and this presents an opportunity for investors to start loading up their warchest and accumulate slowly.



Portfolio Updates

This month, I've made a little rotation out of my dividend yielding companies back into growth, particularly those that have been beaten down due to short term factors.

I sold my positions for Ascendas REIT and Prime REIT at a decent gain of 5% and 11% respectively (excluding dividends) in order to raise cash to purchase other beaten down growth stocks.

I am still keeping my top few positions in Manulife REIT, Lendlease REIT and Starhill REIT because I think they still have a good runway to go given the reopening of the economy back into the workforce.

In the US market front, I purchased a giant e-commerce conglomerate Alibaba as I managed to catch them at a decent low before the recent results of the $2.8billion fine which they accepted. For Alibaba, many of the bad recent news have been priced into the market so there is a good risk reward opportunity for investors to load up given how badly they have been priced in by the market. 

Together with Manulife REIT, Alibaba is now my biggest holding position.

I had also purchased a small position for AMD at near $75 during the recent tech correction as I found them to be unfairly punished by the market. The sector is currently undergoing a secular cycle where demand is outstripping supply by a wide haul so we should expect margins to continue going up as chip shortage continues to dominate the market. At $75, it is also sitting nicely at the EMA50 weekly chart.

My other remaining positions for Options (Sell Put) are mostly at the likes of Alibaba, JD, AMD, Qualcomm, MU, Palantir, Meituan, Geely and other small ones as these are companies which I found to be great leaders in their respective sector but unfairly punished by short term volatility of the market. The premiums are also enticing especially in the recent market correction where the premium would spike.

As mentioned in my previous update, I am still playing it safe so I have not really tapped into my leverage CFD account just yet. If you are interested to explore CFD, Phillip MT5 is now offering zero commission for CFD play which you can try out the demo here or sign up right away here.

Networth Updates

It has been a really good first Quarter as the net worth picks up quite significantly beyond what I expect to be quite a rough year. Turns out there are ample opportunity even in a market that is accommodative like what we have today.

The equity portfolio for this month climbs to $377,120, which is a good improvement over last month and on a good trajectory upwards year to date despite the recent tech correction.

With reopening still in the play, I am confident there are more upside to come and it is likely that the market will see it good this year with most economies bouncing back up.


Stay safe and sound.

Thanks for reading.

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Friday, April 9, 2021

Trade At Zero Commission With Phillip MetaTrader 5

Investing is a marathon journey that most of us would probably have to cope with for a long time in our lifetime.

Choosing the right brokerage service and platform to safely put your money is an important aspect of the entire investing and trading journey for an investor. This is especially so for the beginner investors as they seek to trial and error on a variety of different assets that suits their needs.

Some may like the excitement of the fast and furious markets such as FOREX or Cryptocurrency while others may enjoy the stability of investing in a relatively less volatile market such as equities.

This article is written to address both needs - the availability of trading in multiple products in the convenience of one account under one platform.

We'll discuss about this in more detail later on but first let me introduce who and what Phillip Futures is all about.

About Phillip Futures

Phillip Futures Pte Ltd was inaugurated in 1983 as a member of the PhillipCapital Group and is one of the founding members of the Singapore Exchange Derivatives Trading (SGX-DT).

The Group has been dominant in setting up a presence and clearing membership in 21 major global exchanges which include APEX, BMD, CME Group Exchanges, DGCX, HKEX, ICDX, JPX and SGX.

Together in total, PhillipCapital has become one of the major powerhouse in the industry with assets under management amounting to more than USD 35 billion and shareholder funds in excess of USD1.5 billion.

While sharing the same parent group, Phillip Futures is actually a different entity altogether with Phillip Securities (some know it better as POEMS) but both offered overlap in products such as CFD on POEMS and CFD on Phillip MT5.

Phillip Futures holds a Capital Markets Services ("CMS") license from the Monetary Authority of Singapore (MAS) and customer's funds are held in a separate trustee licensed bank account so the funds cannot be used to pay for the obligations even in the unlikely event Phillip Futures Pte Ltd goes into liquidation.

Multiple Products In One Platform

One of the most challenging experience as an investor myself is to own multiple accounts on different platforms to trade on multiple products.

It is not only difficult to keep track on the progress of each individual accounts and statement but it can also be messy when you're trying to consolidate your positions , especially if you are also trying to keep tab on the performance of each account individually.

Phillip MetaTrader 5 (MT5) offers a one stop platform for investors to trade on a comprehensive range of products available such as CFD, Bullion and FOREX that meets the suits and needs of the investor.

0% Commission For CFD Trades

Some of you might know that I have frequently used CFD as one of my active investing strategies.

Trading in CFD enable users to trade on margin, which incur interests costs for overnight charges. These charges are called "financing costs" - which vary between 2.8% and 3.2% across for different brokerages. Similarly, Phillip Futures charges a competitive financing costs which varies from product to product. Since there are individual elements associated with the financing costs for each product and it floats on a daily basis, it will be difficult to put an absolute figure in this article.

To view the financing costs for each individual product on Phillip MT5, you can:

  • Right-click on the desired product you wish to trade
  • Pick "Specifications"
  • Scroll all the way down on the pop-up window
  • Look at the long or short rates

Commission charges is another trading costs that can quickly add up to your overall charges. This is especially so for traders who get in and out of the market frequently.

You can see below how much I spent on commission charges just based on a few trades I made in February using other CFD brokers previously.

3Fs Previous CFD Trading Activity

With Phillip Futures, you are able to eliminate that costs as trading on Philip MetaTrader 5 is commission-free



They were also open to share with me that they are able to offer 0% commission (and no platform or admin fee) because they wanted provide an avenue for traders and investors to earn as much as possible from these savings. In turn, Phillip Futures earn their money from the bid-sell spread as market maker.

For instance, the buy and sell spread for EURUSD is 0.6 pips, which is a rather small change if we compare it against the commissions other brokerages might have charged. Similarly, the buy and sell spread for Apple (Nasdaq: APPL) is 0.053, which is only 0.04% if we translate it into percentages.


0.6 pips spread


Nasdaq - Apple bid-sell spread

Ease of Opening an Account

One of the considerations almost every investor would have is the easiness of opening an account, especially in the 21st century digital environment we are living today.

In order to ascertain the efficiency of their account opening workflow, I have tested it myself by sending in my application on a weekday evening.

I used my phone to scan on the below QR link and register myself using a SingPass MyInfo, where it will help to populate all my information and details at an instant. 

If you prefer to register using your desktop, you can also click the link here to register.

The entire registration process was seamless - it took me 5 minutes to complete the registrations (including uploading my bank statement), and Phillips came back to finalize my application within the next half-hour (speaking of efficiency).

Scan QR here to sign-up


I also received an email instruction notifying me that the registration was successful and I can deposit my funds using the different funding method available.

PayNow seems to be the quickest method at the moment for transferring funds inside so I chose this method.


In a blink of an eye, my funds are successfully deposited and I can start to trade immediately at any moment.

Mobile Apps view

In case you wanted to give the platform a try first, you can also download their free 30-day Phillip MT5 Demo account in this link here.

In the next chapter, I will write more about the pros and cons of trading CFD, including the risk management involved and what as investors or traders you should be looking out for.

Disclaimer: This post is written in a collaboration with Phillip Futures. However, all opinions stated are that of my own, based on my experience and services received from Phillip Futures.

Thanks for reading.

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Monday, April 5, 2021

Evaluating The Thought Process Behind Putting Financial Independence As a Goal That Is Worth Pursuing

During the gathering over the lunch break in your office, you overheard a conversation regarding one of your colleague that he has decided to call it a day after working 15 years in a corporate world. He was apparently quitting not because he was going to move roles into another company but rather decided to focus on his philanthropist aspect of making a social impact on a non-profit organization (NPO).

Given his relatively young age at 40 years old, the fact that he has a family to take care of and he has only commanded a middle management position throughout his entire career - it garnered your immediate attention and sparks your curiosity as to how he is able to achieve all of that. 

With all the trending talk about achieving Financial Independence earlier and younger in our lives, you may be thinking about this concept and wondering if it's a viable goal worth pursuing for you.

After all, we are talking about a project that requires many years (minimally one decade) of dedicated attention, and not just a split weekend to achieve. If you are motivated this week but give up the following week, which by the way is very common around what is happening, then it will be for nothing.

In this blog, I've articulated my provocation and thoughts around the idea of Financial Independence over a number of articles in the past.

Many of the articles were written with a systematic focus towards achieving a more attainable income and savings through personal savings tips, career tips at work, and investment opportunity.

In this article, the framework is a little different from some of the past articles I've written on this topic.

It's about evaluating the thought process behind putting financial independence as a goal that is worth pursuing and I am going to use my own experience to validate some of the process itself.

So let's begin.

Assume you are someone who just graduated and was introduced the concept of Financial Independence. You know what it means on the surface and every articles you read on F.I.R.E seems to be fun but you aren't sure if you are going to commit yourself into this project for the next 10-20 years in your life.

You find yourself suddenly in doubt.

I was once in the same position and I used some of these questions that hopefully it can also help you sort your thinking.

Do I find Joy or Satisfaction in what I'm currently doing?

There's a lot of perception in thinking that people who are seeking financial independence possess a lower satisfaction level in their jobs.

I think that is somewhat true to a certain extent.

If we think about it in reverse, people who enjoy thriving and excelling in their jobs are likely to do well because they have put pride into the work that they believe are worth pursuing a lot more than anything else. In the same context, you need time and effort to do well financially and a commitment to promise.

The largest category pool of people - is the group where they are in the "I am not satisfied and happy with my current job" but "I am also not going to do anything else to change my life apart from moaning". This is the worst category that you will not want to be in.



Does this reflect what is important to me (my values)?

Values is something that you held to your own conviction and belief, what it brings to the table (importance), and what you get in return (worth).

It can be quantifiable as a monetary worth if your values are consigned with the purpose of having more money, increasing net-worth or having an alternate income to boost your savings.

It can also be the way it is being done in a certain manner - that you believe are an important aspect in the way you live, work and play. For example, you are someone who treasure not only work hard, play hard but also time for your families and your personal growth well-being.

All of these values are treasures that means a lot to you and financial independence can give you more of these options.

Regardless, it has to be an extract of what you believe in and not by hearsay because everyone else says so.


Does this draw on my strengths?

On your way to becoming financially independent, you'd start to learn and cope with a lot of new things that you've never encountered before previously in your life.

You'll start to do budgeting, limit the amount of Starbucks coffee you can drink, pay for your own utilities, and care for your own emergency funds.

You will start to strategize what is good for your own pocket and well-being without over compromising too much one over another.

The process of having to go through this presents an opportunity to be at your very best every single day and learn how to live an independent life socially.


Source: DeviantArt


Is this target goal feasible? Do I believe that it can be achievable?

Set yourself a realistic goal based on your current circumstances.

If you are a sole breadwinner of the family with two children and are part of a sandwich generation, it may be tough to set a stretch goal that is comparable to someone who is single and possess a stronger family background.

On my way towards financial independence, I've always given myself accountability gunning towards a stretch yet achievable target. The objective is to make it not an easy goal to reach yet not an overly impossible task to achieve.


What Opportunity Costs will I give up in order for me to reach this goal?

The hardest part about making changes to your habits and lifestyle is the restraint that you will have to accept.

It is likely that you will have to settle with less (coffee, bags, shoes, night life entertainment) and go for more (nature, exercise, bonding, writing) to fill in those gaps.

They'll be very difficult to achieve at the beginning as you start to suffer from the symptom of withdrawal effect but as time goes by, it becomes the norm which you will accept and take in.

The question that you constantly have to ask yourself is if it's all worth the effort you are trying to push.

Source: AZ Quotes


Am I progressing well?

You know how most people usually get excited when they make their New Year's resolution at the start and then fizzles out a couple of weeks later.

The same goes for this one.

Checking in on the progress will not only allow you to understand where you are in terms of standing but also keep yourself in check when you are swaying sideways between the good and evil.

If you find yourself constantly struggling to meet the objective you've set, do use this opportunity to review them accordingly and make appropriate changes that will help you gets better.

Remember - the only person you are competing with is the same person you were yesterday. If you are progressing every single day, that's an encouraging step to be in.


What changes do I notice in myself?

Over time, you'd find yourself a totally changed person - someone whose goals are aligned with your own values and a reason to believe and look forward.

You'd also likely grow in confidence because you know you've taken that first step, made a promise to yourself and try to achieve them. That will likely help raise the confidence in everything else that you do, knowing that you can do it no matter the resistance.

You'd also do yourself justice, understanding the impact that organization has done to the world and similarly the same powerful impact you've done to your families.

You'd be happier, more open to opinions from friends and colleagues who actually truly cared for you and whose goals are aligned with you. You'd auto-shelf out the nasty people in your lives or people whom you are not bothered with because there is no spark and connection between the two of you.

You'd live a life where you look forward there is a tomorrow.



Conclusion

Throughout your entire experience looking for a way to achieve Financial Independence, you'll find that it is a means to an end, and not an end in itself.

It allows you to attain greater autonomy in making choices and you are happier making that choices because you know there are always options and alternatives you can take.

You choose this path because only you know it's worth pursuing.

No one forces a gun pointing at your direction to submit.


Thanks for reading.

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Monday, March 29, 2021

Top 5 Common Spending Triggers

Many companies employ good digital marketers to come up with marketing ploys targeted at human preys whom they know have low boundaries to accept their very own spending triggers and emotions.

Spending triggers subconsciously make many prey to temptation and spend money to replace and magnify an emotion they're feeling - usually desperate, that resulted in a spur of the moment purchase.

They've been so successful at this such that the level amount of consumption is at a record high, with a plethora and flurry of news pouring to us daily in our inbox.

These are the top 5 common spending triggers:


1.) Buy Now Pay Later (BNPL)

A major disruptor over the past few years, the "Buy Now Pay Later" is here to stay to challenge the stereotypes traditional industry of debit and credit cards.

The entire business model for BNPL is built around the premise that these companies are helping consumers manage their cashflow and getting merchants more business from the increase in consumption, but also getting consumers to pay on time.

Unlike a credit card model which relies on consumers paying late beyond the given 30 days term so that they can charge exorbitant charges, the BNPL model relies on consumers paying not just on time but also in full so they will not run into a default. These companies will then charge their merchants a service fee charge in order to make money.

For consumers, this is a viable option that one can utilize and might just be the spending triggers that the business wants.

Local BNPL players such as Hoolah, Atome, OctiFi are some of the leading players in Singapore.

2.) Discounted Deals

Discounting has long been used as one of the effective strategies to incentivize consumers and prospects to make a purchase.

Digital marketers used discounts to get consumers to try their product and in turn get more leads and sales for future purchases.

Companies do this by offering discounts promo code that consumers can key in when they check-out. Some websites are even smart enough to include the amount of savings the consumers can save by purchasing at their website. This gives consumers a sense of satisfaction that they are actually saving when they are actually spending (I know how ridiculous this can sound).

This can be a win-win for both parties because while the company makes an upfront burn by incurring more costs, they can overtime track the amount of return customers as they become more familiar with the product and use them as part of their daily lives.

Local players such as Fave, Pelago, and the Entertainer are good for such deals.

3.) Stress Trigger

Stress spending is an impulsive behavior that makes one jittery and anxious when feeling stressed and one way to cope with the emotion is through reckless spending.

Studies show that most people reacts to stressful challenges with an increase in the hormone cortisol, which leads them to focus their attention toward the threat so that they can alleviate the pain.

These people used money as a form of medication so they can feel better at ease, especially if they have a low level of control of their emotions in check.

For instance, most stressed people would be desperate to rush down to grab a drink or two after office hours so they could finally destress after the long week. This would not only be bad for the pocket but also damage the liver in the long run, if one drinks excessively on frequent occasion.

4.) Fear of Missing Out (FOMO)

According to a study conducted on millennials, FOMO-fueled spending is on the rise and gaining momentum - thanks to the ubiquity of social media leading to millennials overspending to keep up with their peers.

Some companies added another feature in the form of scarcity to toy around with the emotions of buyers to show what it feels missing out on a good deal.

The threat of missing out on something is a powerful motivator in the human psychology, outweighing the prospect of an equivalent gain. For instance, you may not need to upgrade to the latest IPhone 12, but the fear of missing out being one of the first few among your social media friends might be enough for you to hit a buy right away.

5.) Extra Money

Additional income, which most working employees referred to as a bonus, is often a blessing.

It comes and goes as with the performance of the company which often correlates closely on the macroeconomic factors.

Most people will feel on top of the world when they receive additional income that they could spend on.

For some, they may even feel compelled to spend on things that they might not need and use that as an avenue to upgrade their lifestyle.

The problem comes when the season becomes dry and it left them feeling with a sense of helplessness trying to justify the lifestyle they have already upgraded.

Conclusion

Spending triggers happen to everyone at one time or another.

The key to avoid falling into the pit of spending triggers is to have a proper money management that you can rely on and allow you to fall back on.

Set yourself a realistic target and avoid social media as much as you can if you are one of those who have a low threshold tolerance of spending trigger.

With the convenience of online digital marketers reaching its consumers in this era, it's even more important to be able to resist the many temptations and to protect yourself against the fallpit.

Thanks for reading.

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Monday, March 22, 2021

Dividend Investing vs Options Income Strategy - 3Fs Strategy

I've been getting quite a bit of questions from some people who have been following my writing for some time and they noticed the recent strategy changes in my equity portfolio and so they wrote to me to understand the thinking behind the idea.

For those who are relatively new to my blog, my equity investing strategy for the past few years entails investing in dividend paying companies in the Singapore market (and more recently HKG market) while hoping for some sort of small growth as part of the overall capital appreciation.

I termed this as the "X+Y" strategy in my past article here or the "6+4"% strategy if you had attended my past talk during the 2018 BIGS Investing Conference.

Until today, I remain a huge believer of investing in dividend paying companies because of several fundamental factors which I will not talked about it in this article.

Like most people, my strategy evolves over time - and I am constantly opening my mind in pursuit of a better strategy that would fit my investing temperament and style better.

There is the CFD, a platform which I have been actively using for the past 4-5 years and activate whenever there is a huge market downturn and constraint for funds.

In the past year since I have also entered the US market, I have also tried out options investing and this will be the main topic which I will today compare and contrast the difference with dividend investing as both of them threw out similar characteristics in the form of cashflow.

I've been thinking for a while on how I can structure my answers logically because the strategy fits so well with my own philosophy that it feels very natural to me when implementing, yet it can be foreign to others. 

I'll try my best and hopefully it makes sense.

In this article, I'll break down the comparison between these few categories:

  • Cash Flow Frequency
  • Predictability
  • Passiveness
  • Volatility
  • Risk Management
  • Leverage
  • Total Return




1.) Cash Flow Frequency

I'll start with a really easy one.

Both strategy entails you to receiving a consistent amount of cashflow strategy depending on the companies and timeframe you choose.

For Singapore dividend paying companies, the frequency is typically quarterly or semi-annually (quite rarely but there are some who pays out annually), and this can be a huge revolving benefit amongst the retirees who are likely dependent on these income to survive.

For options, the typical amount of cashflow frequency is 30-45 days (for maximum time-decay ROI) but you can structure it to be a bit earlier/later depending on your strategy.

Many investors, including myself, love the psychological benefits of receiving dividends or income as a form of cashflow as this amount of pot can continue to grow over time should you decide to reinvest them.

Winner: Both Dividend and Options Strategy


2.) Predictability

Most dividend paying companies (especially if you analyze through the fundamentals of the company to ensure the payouts are sustainable) are relatively predictable in nature. Not only do they give out at a certain recurring period, but also the amount or payout ratio that they give out to their shareholders. The precedence over this is you have to put your invested money in solid companies with strong fundamental earnings and balance sheet.

Occasionally, you might get once in a lifetime cut in the dividend like what we experience during Covid where most companies in traditional industries are struggling but they are usually short in nature and you should get them back up for stronger companies.

One thing which I really like about option investing (in this case, selling cash secured puts and selling covered calls) is that you get to set the amount of premiums income that you are going to get at the start regardless of where the market is going. Sure, you might "make a loss" if the amount of premium doesn't offset the falling/rising market price but you are supposed to be happy with your strike price if assigned/sold regardless.

Winner: Options Strategy


3.) Passiveness

Most people who embark on a dividend investing strategy did most of their initial research at the start and bought them for the long term because it will continue to pay them dividend for as long as they continue to own the business and the business remains relevant.

There is little to no need to having frequently revisit the thesis unless there are big fundamental changes to the company itself.

For option investors, there is a need to get a little bit more involved as you would have to relook and replace at the whole option premium risk model to get your trade set-up. For those who are looking at the shorter time-frame such as 14 days, then you'd need to frequently revisit again your set-up based on market conditions.

Winner: Dividend Strategy


4.) Volatility

The Singapore market tends to be a little more protected in terms of volatility movement as compared to the other markets thus the share price doesn't move as much as the investors is going to get from the opportunity. Still, at the peak of the crisis, some positions can get really interesting from the forward yield point of view for long term investment.

However, when compared to the options market in HK and US, it pales in comparison as the implied volatility for these premiums at the peak of the crisis can go extremely high, sending the returns really good from a risk-reward view. The GME implied volatility, for instance, at the peak of the times was more than 600% back then, but have since subdued down to around 300% at the moment.

Winner: Options Strategy


5.) Risk Management

Risk management can get a little tricky with both strategies because we are talking about a permanent loss of capital from downside should things go south from here.

Unfortunately, neither dividend nor the options strategy are insulated from downside risk, as investors who engage in both strategies are susceptible to losses if they didn't put a stop loss to their position.

For options however, you are able to get much better risk calculation should you decide to engage long on a call or put but this is a different strategy than what I have which I will talk and cover another day.

Winner: Can be both if applied properly


6.) Leverage

Leverage can be applied to both investing strategies, which can have a double-edged sword that can amplify either gains or losses and significantly increase/decrease your net worth and cashflow.

Maybank margin financing, for instance, is offering 3.3% p.a interests for Grade 1 SGD securities, which include some of the listed REITS under their purview. This can significantly boost the income you received from the dividends, especially if the companies yielded higher than 3.3% dividend yield per annum (which is not very difficult to find in SGX market).

For US stocks, IBKR offers competitive rate for margin financing for as low as 0.85% if you have an AUM of above $3.5m with them, or 0.98% for AUM above $1.5m. Even if you just have $25k with them, their margin financing is still competitive at 1.55%.

Options trading has an advantage in a way such that an investor can sell a naked put and they will not have to pay interests on the margin unless he or she is assigned to the stock. Even so, there are ways to get away with the margin interest such as rolling away the dates.

Winner: Options Strategy


7.) Total Return

Total Return will include the dividends received including any potential form of capital appreciation, if there are any. This goes back to my earlier strategy of talking about the "X+Y", where X is the dividend you received, and Y is the capital growth appreciation you can get from owning the business.

Investing in dividend paying companies during the peak of the crisis has its own merits.

Take for instance, a company which I've invested in during the peak of the Covid - Lendlease REIT.

During the peak of the crisis when the government announced a circuit breaker lockdown, Lendlease REIT has fallen from the pre-Covid price of 90 cents to 46 cents. If you had bought the REIT back then, not only will you be able to get a recurring 5 cents dividends from the REIT every year, you will also enjoy capital appreciation when the share price rebounds back. Today, the REIT is trading at a price of 80 cents, giving investors both dividend as well as capital appreciation.

For option investors who are focusing on the income generating strategy, the return is capped at the premium you know you are getting right from the start. One downside of this strategy is that investors will not be able to enjoy the upside should the company compounds its growth and continue to make its high.

In this regard, the potential total return favors the dividend investing strategy.

Winner: Dividend Strategy


Final Thoughts

There are multiple ways you can use to construct your own portfolio strategy but I find these two income generating strategy to best fit my profile and risk.

I like the very fact that I am keeping the strategy relatively simple and easy to learn for any beginners and it is something which I think almost everyone can construct within their own portfolio.

Clearly, at this point, I am also still receiving income from my full-time job and we also have rental income from the property we rented out (maybe not in terms of cashflow increase but definitely equity increase). I also do occasionally receive side-gig income from my writing.

These income generating multiple ways impacted us favorably month after month and I definitely can already see the snowball compounding takes a good effect to that.

I hope these explanations are useful and for those who wanted more clarifications or exchange on the ideas,  you can drop me a comment in the link below.


Thanks for reading.

If you like our articles, you may follow our Facebook Page here.
You may also follow our newly created Instagram Page here.


Sunday, March 14, 2021

Mar 2021 - Portfolio & Transaction Updates

No.

 Counters

No. of Shares

Market Price (SGD)

Total Value (SGD) based on market price

Allocation %

Category

1.

Manulife Reit

100,000

US$0.70

     93,000.00

26.0%

Dividend

2.

Lendlease Reit

  85,000

S$0.79

     67,150.00

19.0%

Dividend

3.

Starhill Reit

  90,000

S$0.53

     47,700.00

14.0%

Dividend

4.

Ascendas Reit

  12,000

S$2.91

     34,920.00

9.0%

Dividend

5.

Prime US Reit

  30,100

US$0.80

     32,000.00

9.0%

Dividend

6.

ISHARESHSTECH

    1,000

HK$17.07

       3,100.00

1.0%

Growth

7.

Ho Bee Land

       300

S$2.40

          720.00

1.0%

Leftover

8.

Options (IBKR/Tigers)

          -

-

     80,000.00

22.0%

 

 

 

 

 

 

 

 

Total

 

 

 

   $358,590.00

100%

100%

I apologize for the lack of recent updates in the recent weeks as I was busy transitioning into a new job since late February. As there's more focus being given to the handover, I didn't manage to think much about writing as yet.

The month of March has finally given us a glimpse of opportunities of what the market can do to us. Within just a few days surrounding the fear of treasury yield going back up, we have seen an increase in volatility as rotation within sectors take place into the recovery sectors which include the laggards and badly beaten down banks, oil & gas, hospitality industry, and airlines.

With the increase in volatility across the market, I managed to do some rotations from within the portfolio itself to take advantage of the situation.


Portfolio Updates

I divested three of my lower-weighted non-REIT holdings in my portfolio as I began to raise for more cash.

The first divestment was Hotung on the back of very strong full-year earnings and an increase in dividends, the share price shot up by about 10% the day following the announcement. I was a little hesitant whether I was going to keep for the longer term, but I decided to divest it nevertheless given a better opportunity to park the funds elsewhere.

I also divested non-core holdings - Comfortdelgro and Netlink Trust, mainly to allocate them for better opportunities given that they are consolidating and are likely to return low single-digit return likely this year. CDG's dividend for full-year earnings was also somewhat disappointing and doesn't make up for the wait for now.

I took this month to load up on Manulife Reit after the share price was beaten down quite badly following the XD session. I still believe that this represents upside in both recovery play as well as USD strengthening, so I think there's a lot of story to like about Manulife and other US Reit going forward. For those who are curious about the recent updates on MUST, you can view my AGM article here.

I have also dedicated more of my funds towards the US market for this month as there seem to be some opportunities in the US market that I could take advantage of.

Most of the positions I have for the US market are currently in the options market with long-dated put options. Because these are derivatives leveraged positions and not direct positions, I will not update them here. However, if you are interested, you may follow my Facebook or Instagram page where I will at times update my live position there. 

Networth Updates

Steady but slow - this is in stark contrast to some other position such as meme stocks or cryptocurrency.

The good silver lining is the equity portfolio is still climbing up slowly to a year-to-date high of $358,590 despite a slow start this year.

I am still positioning my portfolio to be extremely low risk in my opinion and I will continue to remain patient in waiting for the big moment to arrive where I will go take on a slightly more risk-on mode.


I am also waiting to receive the dividend payouts in later weeks this month which will be a good booster to the portfolio should we see further opportunities in the market.

Thanks for reading.

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