Personal journal to record investment decisions for my own reference and in future, for my loved ones who will take over the portfolio. Advertising free as I'm not seeking hits or ad revenue. On the internet anyone can have a pretend portfolio, whether you think this blog is fake or real, doesn't bother me. :)
There was a correction in the US market with the Dow dropping 800. This is hopefully an opportunity to deploy more cash. In particular, I would like to build up my holdings in Capitaland. Its fundamentals look good and its 4% dividend is well covered. Also, like your typical longsuffering Sembcorp investor, I am adding a little Sembcorp every month as long is it is comfortably below $3.
Bought Capitaland at $3.12 and $3.11
Bought Sembcorp at $2.88
I will get cash on 23 October as my Perennial 4.65% 3-year bonds are maturing. If STI ETF drops below $3, this will be a good place to park the cash. My rule is to only buy STI ETF when it is below $3.
I started off with an SCB online trading account for foreign shares. While I eventually opened an IBKR account, I still kept LSE-listed ETFs I had already bought in SCB. In order to not put all my holdings in one broker, I decided to buy S$1k of foreign ETFs every month using SCB. Initially SCB had no minimum commission, then they implemented minimum commission (unless you had priority banking). Fortunately by then, I was close to $200k so I did a transfer of one counter from CDP to SCB to hit $200k so that I could get PB and no min comms again. One of the benefits of SCB priority banking is the US$ High Account ( a US$ bank account with chequebook and Debit Mastercard). I purchase things online regularly and having a US$ Debit card appeared to be very helpful, especially if I am spending my US$ dividends. To cut a long story short, the US$ Debit Mastercard will save you money compared to an S$ credit card that makes tries to make a profit by converting your US$ transactions to S$. The features of this card are:
SCB's S$-> US$ exchange rate is better than the rate used by S$ credit cards.
If you don't like their exchange rate and think you can do better, then go moneychanger and change and deposit the US$ at the bank (website says cash deposit fees currently waived)
2% cashback on all purchases
1% transaction fee for overseas purchases so about 1% nett cashback.
0% transaction fee for using US$ to fund your paypal.sg account (apparently doesn't count as an overseas transaction - though one wonders if they will close this loophole)
Foreign shares Small top-up of holdings in Vodafone, Bhp, ING, Santander and Prudential
Singapore shares Continued to build up position in Capitaland. It briefly fell below $3.30 this month so I bought, but soon recovered. Decided to continue to buy a bit more even while it climbed past $3.30 in order to have a decent position. A well-covered Dividend of around 3.5% is very decent. Frasers Property, my related holding (my preference is of to buy at least 2 shares in the same sector rather than all-in one one) which has a higher dividend yield, has lower dividend coverage. Overall I am still building up my warchest as I am only investing part of the extra income. I might even consider some savings bonds.
My investment portfolio reached 100000+ thanks to the GFC and I reached the 200000+ "waypoint" as of August 2018 thanks to the longest bull market ever. It took about 9 years because after the GFC, I focused on paying back my housing loan rather than investing. Investment portfolio: stocks, ETFs, bonds, and gold. (cash/CPFIS/SRS) Excludes cash in bank account and uninvested cash in CPF. My next waypoint will be 300000+. How fast to reach the next waypoint will depend on whether I am sidelined by the 'property bug'. At the moment, I don't have any interest in buying property.
Rental income is subject to income tax (which means its better to be a landlord when you have low income, like a retiree)
Time cost and hassle in having another property, finding tenants (or finding a good agent who can find good tenants...)
Usual caveat: Can you actually believe anything you read on the internet? Figures are only indicative, could be rupees, cents or whatever. Purpose of the post is to record that I reached an important "waypoint" in my investment journey after 9 years, and I need to come up with a plan to help me reach the next waypoint. Actual value not important.
With US sanctions and shaky economic foundations, Turkey appears to be in trouble. I guess you know you are in trouble if Krugman trots out his "impose capital controls" line in the NYT. The resulting price drop has made a lot of stocks quite attractive. I went in a bit early and used by my regular August investment amount to buy:
ING at $13.77 (new position, 4-stars Morningstar, and 5% dividend)
Santander (SAN) added more at $5.06
Lloyds (LYG) added more at $3.12
Westpac (WBK) added more at $21.40
On hindsight a little bit early as prices are now off by another 2%. However, I only know how to average down so the price drop suits me. I will add more if the price drops 5% from my previous buying price.
I had already used some of my money set aside for regular monthly investment on some Capitaland (C31) under $3.30 (new position, 4-stars Morningstar, 3.6%+ yield, StockReports+ 8/10), and added a bit to Frasers Property (TQ5). I suspect that there will be more buying opportunities this month.