Pages

Search This Blog

Friday, November 20, 2020

November 2020 Portfolio Update

S&P 500 Index Fund 12.29%
Straits Times Index Fund -10.32%
Tracker Fund of Hong Kong -6.5%

My Portfolio +32.41%

Market continues to treat my portfolio pretty kindly. Cummulative time-weighted returns exceeds 100% a few days ago. 

Transactions:
Complete divestment of a small amount of Southwest Airline at a modest gain of 27%.
To be honest, I didn't do a great deal of work behind this idea, so any reward is more than deserved.

Stocks.Cafe gives me the ability to look at my returns versus the 3 ETFs I compared my performance to. Figures as follows:

ES3 = Straits Times Index Fund, SPY = SPDR S&P 500, 2800 = Hong Kong Tracker Fund.

I started my journey late 2015 and started using stocks.cafe in 2016. I believe the only American company that I held was Southwest Airlines and I divested it recently. However, I believe I have the free rein to invest in these 3 markets, and as such comparing my performance to what is available seems.. fair.

As you could see, I underperform badly during my initial years as I am getting my feet wet with the value approach. It was only towards the end of 2015 that I adopt value. It took me many many months before I see a green P/L in my brokerage account. It was red after red for many disappointing months.

The very first profitable stock holding, since I changed my approach, was Sim Lian Holdings. It was an original idea of mine which I found by mechanically screening out companies. I took a weekend course with SGX and during a lunch break with the instructor, I mentioned this stock and I could sense a slight excitement in his voice. I guess the insider (directorship) composition in this company was the key.

Up till 2017, my approach is still with buying cigar butts, buying many of them but only small amounts.
Generally, the market was very merciful, and a dumb quantitative value approach usually give you a small amount of lead over the market, as you could see.

portfolio does ok in terms of drawdown, but who cares?



Things really change starting with 2018. I had the fortune to join a small group of like-minded investors and they freely shared their ideas. It was then I started to concentrate a little more. It also marked the first time I actually broke one of my cardinal rules-- never, ever buy a stock on its way up. The stock was Perfect Shape. I sold it a while later because I spotted some account receivables problems in its books and sold. One can never be too careful with investing. It doesn't help that it got too much attention locally here in Singapore.


I am not bothered with volatility but just in case you are curious...



2019 was a really bad year. The market was too optimistic on REITs, which are largely income-producing and inflation-fighting instruments. The average capital gains on REITS should be at least 20++% at least. It was crazy. The only reason why I did better than the index was because of Innotek and Xinghua Port. The latter had a huge, unexplainable surge intra-day and I sold.

There were a lot of dumb people that year that got very rich because of REITs. I wasn't one of them. All my time investing, I don't recall benefitting from investing in a hot sector-- most of my stocks are unloved, unpopular or, at the very least, unheard of.



I leave the 2020 review for next month's portfolio update; but generally, 2020 was just very kind to me.

No comments:

Post a Comment

Apr 2024 Portfolio Update (Hong Kong Recovery, Cordlife Teaser)

Don't ask me why there is a shoe missing. Maybe it reflects a missed opportunity on Anta Sports.. Topics Discussed: -Recovery of Hong Ko...