Changes to portfolio in January 2023.

I might or might not make this a regular feature and that is to talk to myself what I did to my portfolio (if there should be any activity) in the preceding month.

I guess I will just do it whenever I feel the inclination to do so just like with so many things I do in my retirement.

In middle of January, a fellow blogger asked me:

"ComfortDelgro has fallen quite a bit. I have been slowly accumulating over a period of time. So, are you?"

In reply, I said:

"I don't know if you read in the blog that I reduced my investment in ComfortDelgro in 4Q 2022 or you missed it but it is a smaller investment for me now. 

"When its stock price bounced up to test resistance, I lightened my position. 

"Technically, its stock price looks like it could go lower and I am watching $1.15 at this point. 

"The main reason why I was not as aggressive in reducing my investment in ComfortDelgro compared to Centurion Corp. is its relatively strong balance sheet."

True to my word, I went and increased my investment in ComfortDelgro at $1.15 later on.

Suddenly, I am reminded of some people who went on a diet to lose weight but gave up and gained back all the weight they lost.

Alamak.

Not like that lah.

The increase in size although pretty significant, percentage wise, was on a much smaller investment than it was a year ago.

So, didn't gain back all the weight lah.

Technically, ComfortDelgro's stock price is still in a downtrend but it could be in a bottoming process now.

The moving averages are still in decline.

Could ComfortDelgro's stock retest its low of $1.13?

If it does and if I see a positive divergence which means lower price but higher lows in the momentum oscillators, I would probably buy some.

Will be looking out for a double bottom too.

Fundamentals look to be stabilizing and although I am not expecting an increase, this year's dividends should still be meaningful.

Other than ComfortDelgro, I added more T-bills to my portfolio.

I used cash to get both the 4.2% p.a. and 4.0% p.a. 6 months T-bills in January.

A YouTube video from AK:

I also used most of my CPF-OA money to get the 3.87% p.a. 1 year T-bill in the same month.

Although I would not be including the income from the 1 year T-bill in my quarterly passive income report, I thought I should just make a mention for the sake of completeness. 

I will account for the income from the 1 year T-bill as interest income in my CPF account and rightly so as the money has been credited into my CPF-OA where it will still be making 2.5% p.a.

I know I said I am looking forward to being lazier as an investor in 2023.

Well, there are 11 months left to be lazy.

There is hope!

Another YouTube video from AK: 

Recently published:

Bank and REITs dividend machines? T-bills, SSB and CPF?

References:
1. My CPF account hacked?
2. Largest investments updated.
3. 4Q 2022 passive income.

Banks & REITs Dividend Machines? T-bills, SSBs & CPF?

If you have been following my blogs, you might remember that I have been buying T-bills and Singapore Savings Bonds. 

The plan is to continue maintaining a meaningful fixed income component in my investment portfolio.

Of course, if you have been following my blogs for even only a couple of years, you would know that I have been maxing out voluntary contributions to my CPF account. 

This is because I treat the CPF as an investment grade sovereign bond.

However, for most of us, fixed income alone is not enough if we want to achieve financial freedom.

If I had parked my money only in fixed income, I would not have been able to achieve financial freedom.

I definitely would not have been able to retire before I turned 45 almost 7 years ago.

So, what to do?

We should invest for even higher returns. 

We should also be investing in equities for income.

A big investing theme in my blog for many years now has been to invest in DBS and OCBC, with UOB being added during the pandemic bear market.

I have also mostly been successful investing in some REITs like AIMS APAC REIT, for example.

For most of us, investing in equities is one of the least demanding methods to generate passive income as it has a relatively low barrier to entry.

With smallish sums of money, we can invest in bona fide income generating assets and businesses. 

These are businesses which have the ability and will to share the fruits of their labor with investors.

Investing for income is not sexy and doesn't send my heart racing which is not a bad thing if you have a weak heart like mine.

The bulk of my returns from the stock market is in the form of dividends and I blogged about receiving $2 million in passive income over the last 13 years.

However, to be honest, investing for income can be risky too if we do not know what to avoid.

If we want to be successful as an investor for income, just staying near the shore, we might not catch enough fish to make it.

If we venture farther out to sea in search of bigger schools of fish, we might get hit by a gigantic wave in the form of Eagle Hospitality Trust, for example.

(If you want to read more on how I avoided the landmine that was Eagle Hospitality Trust, a quick search will find you those blogs I published.)

So, how like that?

Our chances of success will be better if we are well schooled (pun intended) to navigate open water.

We can do some self study (and I have a book list in my blog's right sidebar titled "Food for thought") if that is the way we choose to go.

For those who prefer structured guidance, however, there are always courses which can do the job of educating us.

I was the first blogger to ever endorse Dividend Machines and I have attended the classes too.

If we are interested in having structured guidance, don't drag our feet as Dividend Machines is only available once a year.

Miss this and we would have to wait another year.

For many years now, Dividend Machines is the only investment course I promote in my blog as I feel it is truly value for money.

Dividend Machines will not cost us an arm and a leg but don't take my word for it.

Find out more for yourself:

Dividend Machines 2023

Hop to financial freedom in the Year of the Rabbit!

If AK can do it, so can you!