Changes to portfolio in February 2023 (so far.)

In February, I bought T-bills again although in smaller sums compared to January.

I had thought I would not be buying any T-bills in the month of February. 

Why?

I blame the fixed deposit promotions from DBS and OCBC.

Their promotional interest rates of 3.9% p.a. and 4.08% p.a. drained whatever excess cash I had.

Alamak!

All money locked up?

How like that?

Readers who have been following my blogs for many years would have an inkling that AK would never allow something like that to happen.

It was mostly money which was locked up before getting locked up again but with higher returns.

People cannot say cash is trash anymore.

Even Ray Dalio says that cash is no longer trash and, on hindsight, it was better to hold cash than many assets in 2022.

After placing those fixed deposits with DBS and OCBC in February, what cash I had left was mostly in my float which I didn't want to lock up.

That meant no T-bills.

However, I found some money at home and in excess of $10K too.

I thought of putting that money which was playing truant at home to work in a CIMB fixed deposit.

Why CIMB?

CIMB only required a minimum sum of $10K for their promotional interest rate of 4.2% per annum for a 12 months or 18 months tenor.

Unfortunately, that promotion ended in January and they only offered 3.5% p.a. in February.

$10K was too small a sum for DBS or OCBC as they required a minimum sum of $20K.

Who said building wealth was easy?

New YouTube video on wealth building by AK Production House here:

So, I split the money in half and put in non-competitive bids for the two auctions happening in February for 6 months T-bills instead. 

T-bills only require a minimum sum of $1K, after all.

Why split the money in half and not get all the T-bills in a single auction?

Well?

I didn't know what the yields would be like.

So, it was a simple case of not putting all the eggs in one basket.

I know the amount of money involved this time was relatively small but it was still a good practice.

I am also willing to do it because the application process was very easy using the DBS phone app.

The two 6 months T-bills auctions gave me cut-off yields of 3.88% p.a. and 3.93% p.a. in the month of February.

When I blogged about this plan at the start of the month, I said that I would be quite happy to get a yield of 3.9% p.a.

So, mission accomplished.

Yes, I keep reminding myself that socking away money isn't a bad thing especially when it has become a lot more rewarding to do so in recent months.

This goes in tandem with keeping our needs simple and our wants few.

This was brought up in another new video by AK Production House here:

In equities, I decided to let go of my investment in SATS in early February when, inexplicably, the stock price went higher.

Inexplicably?

Well, at least to me, it was inexplicable.

There is no accounting for Mr. Market's mood swings, I always say.

I really didn't want to have to bother with the proposed rights issue especially when I used my SRS money to invest in SATS.

This was many years ago but long time regular readers might remember my blogs on SRS money and how I would use them to generate higher returns.

If you are new to my blog or need a refresher, I shared a screenshot of my SRS investment portfolio in 2017:

Win and win again with SRS.

I was careful to invest my SRS money only in endowment policies and businesses which I thought would never have to do equity fund raising by issuing rights.

Anyway, I bought into SATS donkey years ago at about $2.90 a share and I have received many years of dividends.

This matter of acquisition and fund raising has been going on for so long and I am glad to be rid of it.

I actually produced a short video on this in October last year and, obviously, I wasn't too pleased even back then.

Watch video here:

Given the rather large impending rights issue, I was really lucky to be able to book a capital gain upon disposal too.

At least, I feel lucky now.

Hard to say if I would have seller's remorse later as, to be honest, the acquisition could turn out well.

Alamak! 

I shouldn't dwell on that or I might go crazy (again.)

The money raised from the sale could be used for 6 months T-bills in March.

Yields on short term treasuries in the U.S.A. have been elevated and, if this persists, we could see higher yields for T-bills in Singapore too, everything else being equal.

I don't think there will be any changes to my investment portfolio for the rest of February.

Now, I need to think about March.

References:
1. How to use SRS money?
2. Have $10K? Invest or save?
3. No T-bills in February?
4. Emergency fund and float.