Two more months before the year comes to an end, and I’ll officially be 28. I try to keep my blog posts mostly related to my investment journey, but there’s always some random (and more personal) stuff that goes on in my life which is still pretty blog worthy, so I talk about them to express myself. And perhaps allow my rantings in my writings to come through to others who are feeling the same way.
With AEM as the newest addition to my portfolio from the beginning of August, things have gotten quite… volatile.
Time weighted return (YTD): -4.11% against STI ETF of -2.88%
XIRR (YTD): -5.92%
It was not surprising that my portfolio dipped again towards the end of the month as the prices of Valuetronics and AEM mostly reduced back closer to their intrinsic values, and my buying prices.
This month has also been rather nice on the collection on dividends with most of the companies announcing their earnings for the 2nd quarter of the fiscal year. Just this month alone, almost half of our portfolio went XD. These stocks are namely: Continue reading “August 2018 – Portfolio Updates”
I have added some stocks that are in the electronics sector recently in my portfolio, namely Valuetronics and AEM. When I bought them, it was when Mr Market was very unhappy and beaten down their stocks badly.
Needless to say, since I can’t predict how things will turn out, the price of both stocks have also decreased by double percentage points in my portfolio after I bought them. Yet amazingly, within just three days, both have also risen up to be green currently.
The second half of the year has started and it looks like things are becoming less bleak in the stock market. Through much volatility in the past few months, Mr. Market (a.k.a STI) has recovered slightly back to where he had started from the beginning of 2018, with its time-weighted return coming up at -0.33%, and an actual decrease of 0.94% (From 3489.45 to 3281.36).
What a crazy ride 2018 was for the stock market! Since the massive bull run in 2017, Mr Market has decided to be humble and come back down to Planet Earth. My portfolio has also under-performed the STI by some margin.
I pulled out some numbers from my blog to do a comparison:
January: STI ETF @ 4.14% V.S. Time weighted returns @ 4.88%
Two “disadvantages” of buying stocks that are not very popular are that…
They are virtually illiquid (very low trading volume)
The spread (bid/ask) price of the stock is immensely huge.
Unlike the famous stocks that people buy in the STI (e.g. Singtel), where the spread can be just 1 cent, stocks like Keong Hong and Tat Seng Packaging can drop a few percentage points in 1 day of trading.
Needless to say, the smaller (yet, maybe not cheaper) the price of the stock, each spread will also affect the price more. A mere 0.5 cent movement in the current price of Indofood Agri at 24.5 cents can cause a 2% change in your initial investment. Imagine that! Continue reading “May 2018 – Portfolio Updates”