1H 2024 Notes

 1H 2024 Performance

Stock portfolio acheive 17% returns in 1H 2024. This is due to 

- HK market recovery, as 70% of portfolio are in HK stocks.

- Pivot to strategy of buying HK small caps with growth potential at reasonable prices (or growth at reasonable prices). Also had stocks with negative Enterprice Value (when bought - e.g. Cosco Ship Intl (sold), Yuexiu Services) and good diviend yield

Regrets

Sold some CNOOC stocks at $13. Now CNOOC is at $23.

Worse the sold CNOOC funds are used to buy China Ovs Ppt at high price. Now, I am holding China Ovs Ppt at >15% losses. 

Samsonite reached $30 earlier in the year due to rumors of privatisation. On hindsight, I should have sold some then. Now it is at $22-$23. 

Hopeful on China Property Services Stocks

While China property developer  stocks are crashing, I am hopeful on China property services stocks.  This is because 

- I view China property services companies akin to Singapore companies providing S&CC services to HDB flats; these services are like day-to-day necessities. Hence the revenue of property services companies should be stable. 

- China property services companies have enjoyed good growth in recent years. 

- Valuation of China property services companies are not high, as sentiment is affected by China property troubles. 

I am holding 2 stocks on China property services stocks i.e. Yuexiu Services and China Ovs Ppt. They are China state-owned companies. I avoided private property services companies, as they could be affected by the poor state of parent developer company.

On Dividends

I started investing in 2005. I did not pursue dividend investing intentionly. 

Over the 19.5 years, around half of my stock portfolio returns are from divdends. Dividends help to stabilise the stock returns. When returns are poor or negative, dividends income had held steady to some extent. When returns are good, the returns are mostly from capital gains and not so much from divdends.