Tuesday, December 25, 2007

My stocks portfolio - Dec 2007

I started investing in unit trusts and stocks since Dec 2006 using CPF. From Aug 2007, I decided to make my stocks purchase using cash and unit trusts purchase using CPF. Only my China funds are purchased in cash as it form part of my supplematary portfolio.

I bought most of my stocks in cash around Aug 2007 when a major correction has taken place. However a big mistake I have done is to purchase a few stocks too early at the start of the correction. If I have staggered my stocks purchase across a few days, I would have gotten at a good price. Well that is hindsight investing but I have learn something from then on.

As you can see most of my stocks using cash are still at negative returns. I intend to hold them as long as possible since I don't have any immediate usage of the money. Furthermore most of the stocks are fundamentally stable and high yield dividend paying stocks. So there is no reason that I should panic and sell.

The only stock that I am surprised is CDL Hospitality trust. It is the only stock in my portfolio that rises while the other stocks fall during the current Nov - Dec 2007 correction. It is probably due to the booming tourist industry in Singapore and also the much better prospect of tourist industry when IR and F1 comes.

In the month of Nov 2007 alone, I have received a total of $182.41 as dividends. That's quite a lot as compared to if I were to keep my investment in the banks. But take note, of course the risk level is different when I made the comparison. I am looking forward to receive more dividends in May 2008 when most singapore companies are paying out dividends that month.


Anonymous said...

wow, you really practice "putting your eggs into different baskets" to the exreme.

may I know how much is your investment capital?

Mike Dirnt said...

I dont really think its to the extreme because i know of investors who even hold more stocks than me. My investment capital is not that much. You can have a rough idea on how much after i received my dividends (: The reasons why i buy many stocks 1) as i am new, i wish to reduce risks by diversifying 2) i have the holding power, as soon as my stocks reach a good price, i would sell. 3) in the mean time, i will just look forward for the dividends

Nigel said...

I like the way you invest. Quite similar style to myself, except that I still keep a small portion of my portfolio for trading/hedging purposes. I'm aiming to receive passive income of $2k per month from dividends in 5 years time.

Mike Dirnt said...

i think we got the same goals. i want to achieve that in 5 years time or earlier. good luck to both of us.

wolfclub said...

Use weighted average for your portfolio to determine the portfolio beta. From the portfolio beta, and also the 5 years T-bill (or choose the 5 years S'pore Govt bond) as the risk free rate and calculate your expected returns from your portfolio. Personally, your portfolio is too diversified if your total capital is < S$50,000. With the capital of S$50,000, I would suggest you maintain a portfolio size of ~ 4 to 5 stocks since you have to really understand the business and also do an industry comparison. If you believe your own calculations, it is better to buy narrow and deep.

Mike Dirnt said...

i think you have raised a valid point. At times i think it is overly diversified as my investment amount is small considering i have many stocks. i shall try to read more and compute the beta you mentioned. I ever thought of trimming down some of the holdings but i dont think it is a good time to rebalance now. Rebalancing now means realising some loss.