HomePortfolio PulsePortfolio Updates (March 2021)

Portfolio Updates (March 2021)




 I wrote in my previous post that a stock market correction is
imminent, just that I didn’t expect it to happen just right after I published my
Portfolio Update. Seems like all eyes are on TLT – iShares 20 Plus
Year Treasury Bond ETF now. The bond yield has been steadily rising since
Aug 2020 but only started making waves recently. As trust in Covid 19 vaccines are
growing, investors in general are betting on an economic recovery and setting expectations
on higher inflation rate to come. That means they are expecting higher yield to
compensate inflation risk. Higher treasury yield means higher risk-free rate,
and that reduces the intrinsic value of growth companies when we apply DCF formula
to value stocks.

Growth stocks, especially tech stocks which has not shown
bottom line growth got hit badly. On the other hand, value stocks continue to hit
new high as economies began to open.

 It has been a busy month
for me so this time round, I will keep my post short and go right into updating
my stock portfolio performance.

(1) Dividend Portfolio

(2) Growth Portfolio

Stock Portfolio: $452,767

Cash at Hand: $81,309

Total Portfolio Value: $534,076

Goals for 2022- 91.2% achieved

Goals for 2030- 13.66% achieved

Portfolio 1 Net Worth (Dividend+Growth) = $452,767
Portfolio 2 Net Worth = $189,786
Net Worth (Cash+Equity)= $723,862

My dividend portfolio benefitted from the gradual reopening
of global economy. Bank shares performed well on the back of higher yields and economic recovery
so I decided on taking partial profit on all three local banks. DBS at $28.263+36.42%, UOB at $25.93 +23.69% and OCBC at $11.561 +31.33%. Hence that is why I am sitting on a larger cash position compared to other months. Despite
their high PE ratio above 14, I believe there is still room for growth. And one
of the potential catalyst could play out MAS removes the
cap on total dividends per share. Just 5 days ago, Fed lifted curb on bank’s
dividends and share buybacks. We could see the same for SG banks too.

I also closed off my positions in Netlink Trust at $0.945 +0.37%  and
trimmed 500 shares of HongKong Land at $5.91 -5.05% (after XD) and plan to divest as it
continues its uptrend. I will be channelling the proceeds to build up my position
in tech stocks and Reits. Despite rising inflationary pressure, I believe it
will be short lived and likely peaked out in May ( I will explain in my next post).
If you believe that low interest rate is the new normal and with economy picking
up steam, REITS gives the best of both worlds. Because of that, I added
Mapletree NAC at $0.985 and Champion Reit at HKD4.54. I continue to like REITS
with reputable sponsors and still in a lookout for REITS which are still
trading at attractive valuation. Let me know if you manage to spot any.

My growth portfolio seems to be undergoing a bloodbath
event, with no recovery in sight. But I believe in being greedy when
others are fearful. My strategy for these few months is to dollar costs average (DCA),
and constantly adding small positions onto my existing growth stocks. As for Tesla shares,
I look forward to loading up more of it when it breach below $600 levels. It’s
a possibility considering the chip shortage which paralyzes car manufacturing
and affecting Tesla’s production of semi electric commercial truck. The reasons to invest in Tesla are just too many to enumerate, and I will have a separate post to write about it in depth.

As I have a bank account in HK and sitting on cash, I started
small positions on Sunny Optical Technology (Group) Co Ltd at HKD175.7 , Ganfeng Lithium Co Ltd at HKD101.40 and also BYD at HKD193 for Autonomous
Electric Vehicles (A-EVs) play to best utilize the HKD. Other than DCA
for Tencent Holdings, I will be doing DCA for Sunny Optical Technology (Group) Co Ltd and BYD.  The Total Addressable Market for FSV is huge
and many companies i.e. Volkswagen Group, General Motors, BYD will all have a piece
of the pie. I share the same thoughts as Elon Musk, where winner takes a
quarter, still great!

I closed my position in Ping An Insurance at  HKD 97.042 +25.6% , DexCom
at US364.217 +19.85% , Arista Networks at US273.463 +11.28% and Vuzix at US21.653 +44.05%. Looking back I regretted
selling Arista Networks as it is more of a value play and should outperform other tech stocks peers
considering that it has stable earnings with plenty of
growth opportunities.

On the US side of the market, I also added Qualcomm at US129.484 for 5G
play, Opendoor at USD27.098 and AirBNB at US199.266. I added back Palantir at US23.353 after selling off last month. This
time, I got to lower my entry price with the aid of tech market rout. Data will
be the most expensive commodity and its business value is unquestionable.
Palantir has shown its ability to secure deals in the commercial space and its
latest partnership with AWS could be a game changer. 

Other than the above updates, I have been averaging down on my existing shares. As long as Tech stocks continues its selloff, my portfolio overall
growth will be quite limited. Nevertheless, the selldown will eventually stop
and rebound and it most probably happens when investors least expect it.

During turbulent times like this, many may be left thinking
if they should pull the plug to cut loss. Instead of asking what to do,
probably a better way is to ask is: what not to do. And the answer is simple:
do not fear. Panic selling in a bear market can indeed hurt your portfolio and
its best to hold through your bear market. Or even consider applying this
phrase: buying fear and selling greed. Easier said that done, but I see it as a
good opportunity to load up shares which are unfairly punished by the market. The
fear in the market will fade eventually and investors will regain confidence in
tech shares if they report solid earnings in the coming quarters.

I have been investing in the stock market for 11 years and been
through ups and downs in the stock market. All I can say is that the current tech
sell-down is nothing close to a market crash but a healthy correction since share
prices has gotten ahead of its fundamentals. There is no way to time the market
hence its important to have a strategy in place if market turns sour to hedge
against loss. In my case, I have a dividend portfolio which provides a cushion
in the down market and quarterly dividends provides a good hedge against inflation.

If this market correction has caught you off guard, consider
it as a lesson learnt and consider having an investing strategy and understand
your risks tolerance. Investing is like running a marathon, and not about buying a few shares impetuously and expect gains in the next few days. Ultimately, your stock portfolio should be a SWAN
portfolio, acronym for sleep well at night, regardless of how volatile the market turns
out to be. If you are losing sleep over stock market, its time for some deep
work and give your asset allocation a second look or probably sell your shares
to the sleeping point. 

How did your portfolio perform this month? Did you mange to build up an ‘all weather’ portfolio!

Thank you so much for spending time to read my blog and I
really appreciate you. If you enjoyed reading my blog, hope you can support me
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share my post. Currently, I do not earn any fees through any affiliate
programme or sponsor. If you have any queries, feel free to post them and I am
happy to take questions! 🙂


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Join me on the journey to FIRE by 40! I share insights on investing, smart money habits, and achieving financial independence. Let's reach our goals together!

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