Saturday, December 28, 2019

2019 Review


1)  Performance

My stock portfolio has 8.4% return in 2019, slightly underperformed STI ETF (9%).

The portfolio is pulled down by Eagle Hospitality Trust (bought at around USD $0.7), George Kent (bought at around M$1.20), HRnet (bought at 0.78) and Kingsmen Creative (bought at $0.55).

In addition, my portfolio does not have much REITs; hence it does not benefit from the good returns REITs enjoyed this year.

Looking at long-term performance, I started buying stocks in 2004. The average annual returns from 2004-19 is 14%. My returns are higher in earlier years, probably helped by small portfolio. From 2013-2019, my stock portfolio average annual returns are 10%.

2) Non-Stock Portfolio

I have other stuff besides my stock portfolio and it comprise mainly SRS account, ETFs and Singapore Savings Bond (SSB). The SRS account mainly holds STI ETF.

On ETF, I started to buy VWRA (an ETF on Global Stocks listed in LSE) this year in Nov. Moving forward, I will make monthly purchase of this ETFs, so as to maintain the stock-cash ratio. This will also help to diversify my holdings which are Singapore-centric.

     3) Edge

I have under-performed STI index in the last 2 years. I feel that I am maybe losing my edge in the stock market. Not sure if this is due to aging or less interest in stock market. I may skew more towards ETFs in future.

4) Position Sizing

8% of my stock portfolio was in Eagle Hospitality Trust before the large drop in Nov 2019. The drop makes me feel that I should have a smaller position in Eagle and hence my position sizing was off.

In future, for more risky stocks, I should maybe limit myself to not more than 5%. This may drag down returns, but it also helps to make my stock portfolio more stable.

5) Personal Expenses

I don’t do budgeting. I tried keeping a budget for a while a few years ago and find that my largest expenses are (1) monthly contributions to my parents and (2) income tax. These 2 items are my main outflows every month. And I think that they are still my largest outflow in 2019.

6) Net Asset Growth

I started keeping track on my net asset in 2014. The net asset coverage could be less comprehensive when I started. Anyway, my net asset include cash, stocks, bonds and CPF.

My net asset has been growing annually. The increase in net asset is mainly driven by wages and the fluctuations from year-to-year are due to stock portfolio returns.



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