2018 Portfolio Updates

It’s the 2nd year that Miss Niao can celebrate a full-year review for her portfolio again. How well did I do as an investor? Not at all fantastic, though still in line with my goals.

A Look Back on 2017

In 2017, I started my investing journey and injected my funds rather consistently, performing a buy trade with a monthly/bi-monthly frequency. I had no sell trades in 2017.

I have also experienced how a bull market is like, and the emotions I had to go through of having a loss of double digit percentage points on paper – not that it went anywhere unbearable.

I got exposed to net-nets which were stocks that had positive Net Asset Value (NAV) and saw value in a few of my holdings, namely Keong Hong and Tat Seng Packaging. As for commodity stocks, I entered the palm oil business with Indofood Agri at the end of the year.

A Look Back on 2018

Sadly but surely, the hand molding experience with palm oil didn’t last so long with me and it only lasted 6 months before I finally made the decision to cut my losses. The 30% loss had an impact to me since this was my first closed position, but I am glad that I did, otherwise my losses now will be >53% based on the latest close price of $0.197.

It is my investing philosophy to not let my emotions affect me when holding on to a losing stock, but rather, the fundamentals of the business. It was a folly of judgement on my part as an investor when I tried to analyze the company in typical ways of other industries. Commodity prices are hugely affected by the industry and there is little or no control over how much the company can set prices for their product. It is very similar to buying gold, and I have paid a price to learn this lesson.

It will stay with me for a long while.

Observing how volatile the stock market was in 2018, I was very careful with my positions. I have seen some stocks on my watchlist drop and also rise significantly in the year. Ultimately, I only bought a stock when I knew for sure that it was a good opportunity. Those two buys turned out to be stocks that are related to electronics manufacturing and they are Valuetronics and AEM. Coincidentally, they also happen to be related to my field of Electronics Engineering and thus, I could understand better about their core businesses.

Both of these buys were pretty valuable to me as I managed to snag them up at prices with relatively good dividend yields.

How would I describe my portfolio in one word?

Resilient. My portfolio actual performance for 2018 is as follows:

Time-weighted returns: -4.22% against -6.63% (ES3)

XIRR: -3.89%

My returns are not exactly fantastic in 2018, but nevertheless I still beat the STI ETF by a slight margin. I could barely be called an active investor, because I didn’t even perform as many trades as I’ve expected to.

I’m thinking sometimes if it’s better to do nothing during times of uncertainty? Patience is definitely a virtue, but I hope that I can be handsomely rewarded for it.

portfolio2018.PNG

Dividend Income

The total dividend amount collected for 2018 is $2,125.68, and that translates to a ~3-5% yield from my capital. I think it’s progress, considering that I do not invest in high yield dividend stocks e.g. REITs other than 1 small holding with AIMSAMP Cap REIT. High dividend yield is not the number one priority when I buy a stock, but it is something that I do take into serious consideration as part of ROI.

On top of that, dividends come into play in achieving financial independence. So they have to be aligned with my personal goal setting as well. In 2019, I intend to use more capital to increase this amount to $4,500.

Onwards for 2019

My investing philosophy for 2019 will stay pretty much the same, but I believe that I might be more aggressive, given the right scenarios. Since the slight correction in the stock market, there is more reason to climb of the hole that I’ve been hiding quite comfortably and seize opportunities as they come by.

Will there be a chance to grab great companies at even greater prices? That is what everyone hopes for. I want to make sure that I will be ready if that time should come.

Oh and also keep my emotions in check.

Thanks for reading!

Miss Niao xoxo

Author: Miss Niao

Hello! I blog about financial matters and things that average people can do to have a better retirement. I want to inspire people to take control of their money and have a better understanding about it. If you are interested to know more, follow me @ missniao.wordpress.com! :)

5 thoughts on “2018 Portfolio Updates”

  1. I can relate! When the oil crisis struck, my portfolio went down 30k. It was really hard to stomach knowing that one year of savings got wiped out but you have to consciously remind yourself that
    – market is volatile
    – paper loss does not equate to real losses
    – remind yourself why you invested in certain stocks

    I think after that period, seeing any losses below 30k render me emotionless.

    Good luck for 2019! Continue saving and DCA-ing!

    Like

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