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Largest investments updated (3Q 2019).

Wednesday, July 24, 2019

It has been almost a year since my last blog on the largest investments in my portfolio.

Since then, in the following months, I added to some of my investments such as 

1. OCBC at under $11.00 a share, 

2. ComfortDelgro at under $2.20 a share 

and 

3. SingTel at under $3.00 a share.





Not much activity on my part, really.

Most of the time, I was just collecting dividends while waiting for Mr. Market to recover from his depression.

When Mr. Market did recover, I waited to see how euphoric he could get.

(To be totally honest, mostly, I was adventuring in Neverwinter but you know that, of course.)

After my recent blog on selling into the rally while staying invested, a reader asked if I could do an update on my largest investments.

I suppose I could.






$500,000 or more:
CPF.


Do I hear laughter?

While the CPF is not an equity and isn't a bond in the purest form, I do consider it an essential part of my portfolio.


I consider it essential as it is the risk free and volatility free component of my investment portfolio which pays a relatively attractive coupon.

I decided to include my CPF savings to remind readers that I am able to take a bit of risk in the way I invest because my CPF savings is a very significant safety net.

Well, for me, it is very significant.

When we invest, remember, we have to take into consideration our personal financial circumstances and not simply ride on other's coattails.


I hope that you had a good laugh.

More importantly, I hope you are also aware that this isn't all a joke.








From $350,000 to $499,999:

AIMS APAC REIT
(formerly 
AIMS AMP Cap. Ind. REIT)

This should not come as a surprise, of course.

My investment in this REIT is already free of cost and there is no compelling reason for me to fiddle with something that has worked so well for so many years.

There has been talk of a takeover of this REIT and, to be honest, I hope it never happens.

Many good income producing investments in my portfolio have been taken away from me and it is difficult to find equivalent replacements.





From $200,000 to $349,999:
ComfortDelgro
Centurion Corporation Ltd.


From being unloved, ComfortDelgro has become much desired by Mr. Market.

I like ComfortDelgro too. 

Even after trimming my investment in this rally by more than 20%, ComfortDegro still stays in the same bracket because the market value of my investment has gone up by more than 30%.

As an investment for income, ComfortDelgro is probably more reliable than Wilmar and its dividend is probably more sustainable than SingTel's.

Having said this, if Mr. Market should have a feverish desire to pay a much higher price for ComfortDelgro, everything else remaining equal, I would probably accept the offer.






Centurion Corporation Ltd. moved into the same bracket as ComfortDelgro because I added to my investment as its share price languished at about 40c a share.

Centurion Corporation Ltd. is undervalued and there continues to be persistent insider buying.

Peter Lynch said that there are many reasons why insiders sell but there is only one reason why they buy.


I like being paid while I wait and a dividend yield of almost 5% is not too shabby.





From $100,000 to $199,000:
Ascendas H-Trust

Accordia Golf Trust
Development Bank of Singapore

OCBC Bank

Ascendas H-Trust will probably be replaced by a new entity and I shared my view about the proposed combination with Ascott Residence Trust in two separate blog posts earlier this month.

As for Accordia Golf Trust, it still has the potential to increase DPU significantly in the next few years and I blogged about this before. 


I am quite happy to be paid while I wait, as usual.

Development Bank of Singapore is doing well and I would like to build a larger position if there is a meaningful correction in its share price.


New addition to the list is OCBC Bank.

This is the result of several rounds of accumulation at under $11.00 a share as I felt it offered relatively good value for money.





As for SingTel and Wilmar, after reducing my exposure significantly, my positions in SingTel and Wilmar are now worth less than $100,000 each.

Not part of my largest investments now, SingTel and Wilmar have been removed from the list here.

If Mr. Market should tempt me with better offers, I am likely to give in to temptation and sell what remains.

Remember, I am just doing what makes sense to me.

Remember, you have to do what makes sense to you.


Have a plan, your own plan.







"We must understand our motivations for investing in the stocks we are invested in.

"The tools we employ and the attitude we have must be appropriate to our motivations.


"That way, we will stand a good chance of doing better with a consistent strategy and this is so both financially and emotionally!"

From: 
Rules for investing in difficult times.




Recently published:
Sell into the rally and stay invested.


Related post:
Largest investments in 2018 (Part 2).

24 comments:

konmmo said...

Thanks for the update AK. Always look forward to your market insights.

I’ve made many mistakes during this market rally, mostly selling too early into the rally so I’m sitting on too much cash (as a percentage) now.

Would like your thoughts on a few things:
1) Do you think buying into AAREIT at this current valuation makes sense? This was one of the investments I divested too early as well. I’ve been wanting to go back in but the market never gave me a chance.

2) Any thoughts on SATs and whether we should take advantage of this small sell down to wait for its growth plans to pan out?

keng said...

Hi AK,

GIC, Mapletree Investments and SPH are all looking at student accommodation inUK as well. Wonder if the pie is big enough for all. Then again, being a smaller company, Centurion can still look at small scale acquisitions.

Wonder which one will be the first to spin off a REIT.

AK71 said...

Hi konmmo,

It is never a mistake to take profit, as the saying goes.

Having cash is not a bad thing but I can understand the anxiety if you feel you are sitting on too much cash.

I would take it easy and just wait for Mr. Market to feel depressed again. ;p

If you are a regular reader of mine, you know I will sidestep your questions on AA REIT and SATS. ;p

Instead, I offer this blog:
Is it bad to receive regular dividends and to sit on cash?

"I am pretty simple minded when it comes to investments.

"I use some common sense and ask some questions which I think matter in that investment.

"If I am satisfied that I am not overpaying and the stock is likely to do pretty well in future, I buy some."

AK71 said...

Hi keng,

From what I know, the market is pretty big but fragmented.

We are looking at not just the UK but the USA and Australia too.

The top guys in Centurion know that they cannot be the proverbial snake that tried to swallow an elephant. ;p

So, they are only going after bite size offers.

I like buying good income producing assets at a discount and Centurion is a good fit. ;)

RayNg said...

Hi AK,

Thanks for the update.

Pardon me to ask specific counter. You were very bullish about SingTel in 2018-2Q and you added more so much so it became your >$500K category. http://singaporeanstocksinvestor.blogspot.com/2018/07/2q-2018-passive-income-from-non-reits.html

You reduce SingTel significantly this year and it is in <$100K category. Would you share the reason why?

First Reit was one of your favourite. Now diappear from your summary. Was it due to potential credit risk?

Thanks in advance.

AK71 said...

Hi RayNg,

You might have missed this blog on First REIT:
Sold First REIT to raise funds.

As for SingTel, I explained why I bought more:
SingTel and CDG.

I still think SingTel is stronger than their competition.

The reason for selling off a big chunk of my investment in SingTel is largely based on technical analysis and you will find it in this blog towards the end:
Sell into the rally and stay invested.

You will also see in the current blog my explanation why I did not trim ComfortDelgro as aggressively as I trimmed SingTel.

Of course, I may be wrong.

For example, I trimmed Wilmar just as aggressively and despite the obvious negative divergence in its chart, its share price has gone much higher today. :p

So, make sure you have a plan, your own plan. ;)

Your Ka-ki! said...

Thank you ak

we never get bored again whenever you blogged something.

i will not ask anything about any particular stocks for now. Just chill and enjoy your write - up with a cuppa.

AK71 said...

Hi YKK,

I am glad you have found my blog entertaining. :)

If you learn something useful in the process, it is a bonus. ;)

Invest Sg said...

AK thanks so much for posting the updates on your portfolio. I sold much too early in Feb, so need to wait patiently now for the chance to reload at or near your fair valuation :)

AK71 said...

Hi Invest Sg,

I cannot remember what I did in February exactly.

So, it was probably nothing.

Don't wait to buy at or near my fair valuation.

Buy at or near your fair valuation. ;)

BYHW. -.-"

laurence said...

Is AK still holding QAF, the bread that keeps on giving? :)

laurence said...

Is AK still holding QAF, the bread that keeps on giving? :)

AK71 said...

Hi Laurence,

Yes, I have been a QAF investor for many years and it is unlikely to change.

However, as its share price has dropped by about 50% from its peak, the value of my investment has dropped accordingly.

So, it is no longer one of my largest investments.

Your Ka-ki! said...

AK

when are you starting to buy?

Today good or not ?

AK71 said...

Hi YKK,

You should read these blogs:

1. When to BUY, HOLD or SELL?

2. 3 points in stocks investing.

3. My investment portfolio or my investment philosophy?

And the most important one is:

4. Wait for a big crash to pick our durians?

If you are confused, don't look at me.

I am most likely confused too. ;p

Dom said...

thks AK

AK71 said...

Hi Dom,

Just talking to myself, as usual. ;)

musette said...

Hi AK ,

Do you think you can talk to yourself on why the insider purchase of APTT by Lu Fang Ming (2.5m shares) and its top executives and its ongoing strategic review as catalysts for its growth.

As compared to the insider purchases of Centurion.

Since you are at the topic of Peter Lynch's quote on insider buying.

Thank you !

AK71 said...

Hi musette,

I was replying to your comment but it became so long that I decided to blog about it. ;)

AK71 said...

See:
Insider buying in APTT and Lu Fang Ming.

konmmo said...

Hi AK, it looks like the market might be offering up another opportunity to get back in soon. Looking forward to listening to you talk to yourself!

Just a question on one specific counter. SPH’s media business is showing no signs of improving and its share price has been battered accordingly. Will you be able to share what you think is a good valuation for SPH? Or is this an irreversible sinking ship?

AK71 said...

Hi konmmo,

If Mr. Market goes into a depression, there will be some buying opportunities, I am sure. ;)

Don't bet on me talking to myself, however.

Neverwinter is launching Mod 17 six days from now. ;p

As for SPH, you might want to read this blog post:
Invest more in SPH now?

Read also the related posts at the end of that blog post.

You decide. ;)

Invest Sg said...

Hi AK,
Centurion at 0.405 looks really tempting.. so got some today :)

AK71 said...

Hi Invest SG,

I believe that is a good entry price as I added to my investment in the business too.

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