1) Performance of Individual Stocks Portfolio
Portfolio returns was 4.5% in 2023, poorer compared to world stock index and S&P. This is mainly because I hold largely HK shares and HSI fell 15% in 2023.
I hold largely HK shares, as HK market remains undervalued. My SG stock holdings rose, as my I bought more S-Reits in 2023.
2) Position Sizing
My number of positions rose slightly, while the concentration also dropped slightly. Moving forward, my portfolio should have around 20-25 holdings, as my position sizing is 3% for starter, 5% for more stocks whom I have more confidence or more undervalued and I may add on to the position if the stock become more undervalued.
3) 10-year IRR
My 10-year IRR remains at 6%, similar to last year's.
As mentioned in last year's post, my IRR is higher in earlier years because
a) My portfolio was more concentrated (i.e. less than 10 position in 2004-11) and was smaller in dollar terms. More concentrated portfolio is also more risky, so I become more diversified from 2012 onwards.
b) Singapore stock market have lower returns from mid-2010s onwards.
4) Stock – Non-stock Allocation
The above are on my cash equity portfolio, which excludes my SRS, CPF monies and most of my cash.
Including all assets (i.e. Cash, SRS, CPF), I split the allocation into 4 categories:
- Cash: Easily aacessible. Include those in IBKR and Moomoo Cash Plus
- Monies in CPF accounts: Exclude those monies used to buy bond etf or T-bills
- Fixed Deposit / T-bill / Bonds: Restricted cash and those in bond ETF
- Equities
In 2023 I increased my equities allocation, as I found more stocks to buy in depressed HK market. The monies in CPF was reduced, as I used CPF-OA monies to buy T-Bills and bond ETF (MBH).
5) Net Asset Growth
My net asset returs is 9% this year, mainly boosted by wages and more interest from T-bills / Cash accounts.
