January brings much news to the market. I’ve read many articles about how everyone is anticipating for a stock market crash, and that a correction would be due soon. Unfortunately for some people (or fortunately for me), I have also read many articles about cryptocurrency, and its crash has been more apparent and realized much earlier than the current bull run that I am experiencing.
My views on cryptocurrency? My comments may seem way overdue, since everyone has been talking about it since a long time ago. Well, I have a friend who is rather close to me that – I quote – “thrown money” into it to see how it will go. When I probed him further about what cryptocurrency is all about, it was presented to me in a form of language that I could not comprehend. Yes, he was speaking English, but somehow I still could not understand what it was all about. I must credit him for trying, really.
I remember blogging about why I do not buy gold, and why buying commodity companies would be a better bet. If you haven’t read that article, or watched that video, you should. You get to see how Uncle Warren thinks, for a short moment. Some may argue that commodities might be another form of asset class, and I couldn’t disagree. But would you also agree with me that cryptocurrencies are like commodities, in the same way as if you have bought gold?
So if I don’t buy gold, or trade in the Forex market (story for another day), then why would I buy cryptocurrency?
This also brings me to my recent buy in Indofood Agri. I have received some comments, both online and IRL about how the income of commodity companies are being affected by government policies and price fluctuations of the commodities themselves. (Did you know that 93% of Indofood Agri’s earnings are domestic?) I have to admit that I know nuts about macroeconomics, and their comments kept me more on my toes. I am still willing to wait to see if my analysis was correct, and the price has now increased to 6.57% to 39.5 cents from my buying price.
Let’s move on to my other holdings.
As I’ve said, and you know too, that with the ongoing bull run, it would seem like money is easy to make, and optimism is undeniably brought to the markets. Thus, the intrinstic value of some of the stocks that I hold has also been slowly revealing.
Keong Hong is going XD in February after announcing a dividend payout of 1.75 cents. That accounts to a 3.6% yield for me. What’s even more amazing is that I have a gain of 35.76% in less than one year. This stock is by far the biggest gain in my portfolio.
Next comes Tat Seng Packaging with a 24.31% gain, and in third place is First REIT at a 12.6% gain including distributions.
The black horse in my portfolio is ComfortDelgro as its share price has increased significantly over the last month since releasing some nice news. A 15%+ paper loss has now reduced to 6.1% with dividends. This increase of course, has helped boost my overall portfolio performance to…
10.76% Paper Gain + 2.02% Dividends (Total 12.78%)
Time weighted returns of 4.88% against the STI ETF at 4.14%.
Should I start selling my holdings? I will contemplate further, and hopefully my decision doesn’t come along too late. Currently, I have a war chest of about 70% of my entire portfolio waiting to be deployed. Of course, these numbers are puny, which is why the percentage points seem high. Another reason is also because I’ve haven’t had the chance to buy any new stocks for the past 2 months, but with constant income from work.
And now, patience we must have again.
Nikko AM STI ETF – 1.94% ($83.46)
AIMSAMP Cap Industrial REIT (Advanced distribution) – 1.37% ($70.67)
Upcoming dividends in February:
First REIT – 1.63% ($83.85)
Starhill Global REIT – 1.54% ($77.22)
Keong Hong – 3.6% ($182)
YTD Dividends collected: $154.13