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Largest investments updated (Early 2018).

Friday, February 2, 2018

My last blog on this subject was published in October 2017.

If you don't remember, see the related post at the end of this blog.






After making some changes in 4Q 2017, with the addition of two new members, this is the new A-list of my investment portfolio:

From $350,000 to $499,999:
AIMS AMP Cap. Ind. REIT
SingTel
ComfortDelgro

I certainly look forward to the dividends from SingTel and ComfortDelgro in 2018 which would hopefully make my primarily income focused portfolio more robust and less dependent on S-REITs.





Next up are the smaller but still rather significant investments in my portfolio. 

They are members of the $100K to $350K club:

From $200,000 to $349,999:
FIRST REIT

From $100,000 to $199,999:

ASCENDAS H-Trust
WILMAR Int'l
Centurion Corporation Ltd
ACCORDIA Golf Trust
Development Bank of Singapore








Some might notice that there is a new member in this club.

DBS was a business I kept buying into at around $15 a share and bought more of when its share price sank below $14 a share.

As its share price recovered over time, in several transactions, I reduced my investment to the point where my remaining investment became "free of cost".
 







Of course, one could say that if I did not sell any of my investment in DBS, I would be sitting on a much bigger paper gain now. 


Ouch.

Well, I always say that hindsight is perfect and seller's remorse is pretty pointless.

I reduced my investment in DBS because it was no longer the undervalued proposition that it was when I bought its stock.


I had a plan and I stuck to it.







Having said that, doing something I often do with businesses which I have good reasons to like, I held on to my remaining investment in DBS which had become "free of cost".

Some regular readers might remember I have described this as trading around a core position before.


Mr. Market could be quite irrational and high could, of course, go higher.

How long could Mr. Market stay irrational for?

Your guess is as good as mine.

Meanwhile, as the share price has almost doubled from my lowest purchase price, my remaining investment in DBS is now one of the largest investments in my portfolio.








I am pretty comfortable with my portfolio now and, all else remaining equal, it is unlikely that I would be making any changes anytime soon.


If lazy AK does not change anything in his investment portfolio this year, the above investments are most probably going to contribute the bulk of his passive income in 2018.






As I have rationalized the moves made in 4Q 2017 when I shared my full year passive income in  blogs published towards the end of last year, I shall not repeat myself.

You might want to read those blogs if you have not done so (or to refresh your memory if you have read them before), starting from Part 1: HERE.






I know some might be tempted to shadow my moves but please do your own due diligence.

Even after doing your due diligence, remember you are not me and I am not you.

Remember the importance of position sizing, taking your own financial situation into consideration.





It is rarely a good idea to throw everything including the kitchen sink into investments no matter how attractive they might look.






Related posts:
1. Largest investments in my portfolio.
2. Position sizing, nibbles and gobbles.
3. AK was buying DBS shares.

16 comments:

betta man said...

Any concerns regarding the drop in AHT's DPU ?

http://www.businesstimes.com.sg/companies-markets/ascendas-hospitality-trust-posts-14-drop-in-q3-dps-to-141-singapore-cents

sleepydevil said...

Hi AK,

Very impressive. Just the A-list members itself would easily come up to a million in value. As much as they are dependent on the current prices, the movements will impact adversely on the value, should it drops.

Nonetheless, I'm very amazed!

joe lee said...

"It is rarely a good idea to throw everything including the kitchen sink into investments no matter how attractive they might look."

Cant help but think that you're are talking about Singtel given it's "attractive" price now :)

AK71 said...

Hi betta man,

There is bound to be fluctuations as AHT owns hospitality assets which have less stability in income generation and they are located in different countries too which means FOREX gains or losses.

Thanks for sharing. :)

AK71 said...

Hi SD,

I have been mostly lucky as an investor. :)

AK71 said...

Hi Joe,

Er... I don't think I had any particular company in mind when I made the statement. :)

Eye of the Storm said...

Hi AK

Congrats on your big gains on DBS. After all to to be greedy when everyone is fearful.
I had dbs bought in 2015 around $19.

I used to also buy low and sell as it goes up till I hold free of charge. I think it’s really a good strategy considering that won’t be emotionally affected if it drops. But I begin to have the trouble of finding new companies with good fundamentals and spending more time to research another stock. Somehow I just find that good companies are somewhat rare in Singapore.

But I thInk it makes sense for you, since after holding free of charge you still hold between 100k to 199k worth ,Haha but I think for small investor like me having less than 2 lots, I will only left with few hundred shares if I sell until I hold it free of charge.

AK71 said...

Hi EOTS,

One of the most important things I have learned as an investor is that peace of mind is priceless.

Whatever gives us peace of mind, do it. :)

Laurence said...

I love the rhyme:

AA Reit, AK's fav AA-rated bond makes it to the top of AK's A-List investment portfolio.

AK71 said...

Hi Laurence,

Been a while since I read any poetry. :)

Cindy said...

Will you be ready to scoop shares on Monday?

AK71 said...

Hi Cindy,

I am always ready to buy cheaper. ;)

Randy said...

For th past 10 Yrs DBS has never yielded less than 3%,

PE avg of around 11to12X

Just my 2cents :)

Charles Liu said...

Time to put Warren Buffett’s quote into action: “It is wise to be fearful when others are greedy, and be greedy when others are fearful”? :)

thinking if should wait for further drop....

AK71 said...

Mr. Market seems to be in a grumpy mood.

I am quite happy to buy some stuff from him to cheer him up. ;p

AK71 said...

SingTel's free cash flow continues to be strong with growth of 5%.

Barring unforeseen circumstances, SingTel expects to maintain its ordinary dividends of 17.5 cents per share for the next two financial years.

Given management’s dividend guidance for the next 2 years of 17.5cents, we would treat Singtel as a semi-bond and a good yield alternative for 5.1% dividend yield. Maintain Long Term BUY.

Source: Lim & Tan (17 May 18)

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