Portfolio Update May 2019

Its been a very busy two months and finally have some time to do some reflections. The new 30 day workout was a total failure (yikes). Will be doing 120 push ups everyday + 3 sets of leg raises + 3 mins planks everyday instead.

The “Sell in May and go away” phenomenon is here again. The stock market has become much more volatile with US and China slapping tariffs on each other. DJIA dropped below the 25k mark and STI ETF last closed at 3.17. Thankfully my portfolio managed to stay intact with the help of dividends coming in. With the increased volatility due to trade wars, I will be revamping my portfolio to be more defensive and adding in to companies which I feel will be strong enough to tide through it.

Income Portfolio

Bought: Nibbled 200 units of OCBC. The 3 banks in Singapore have been dropping lately but OCBC caught my attention more. Bought it at a slight premium (1.05) which I feel is an acceptable margin of safety.

Sold: Tuan Sing. Initially bought Tuan Sing for its huge discount to NAV, however as part of my overall portfolio revamp, I would like to get paid higher dividend while waiting for the business to get properly valued by the market. My first realised loss from the stock market (albeit a small one) but key is to understand the business, some stock may remain forever undervalued.

Will be selling off some of my holdings and holding more in cash. A few companies are on my watchlist and should there be a sell off, the opportunity would come for me to deploy my cash.

Index Portfolio

Bought: EIMI as part of monthly investment strategy into this index portfolio

I have also started a small portfolio (1k capital, 150 monthly) into Dimensional Fund Advisors (DFA) through MoneyOwl.
Reasons why I started was:
1. According to what I read, the net returns is about the same as Vanguard’s in the long term
2. Relatively Low Expense Ratio
3. Focuses on evidence based investing (small caps over large, low PB over high, high profitability over low etc)

Only time will tell how it fares compared to my DIY Index Portfolio!


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