June 2023: Back to the bad habit of stock picking

 While I have repeatedly said that I will focus on ETFs, I occasionally review my portfolio (I update my portfolio page every 6 months) and identify some stocks that I don't mind adding to. 

With S&P500 now at 4300, the US market looks a bit expensive. I will continue to be disciplined to continue regular DCA of World ETFs but I also looked elsewhere. 

Last time I had the bad habit of trying to buy small amounts of multiple stocks. I am trying to limit that and adopting the principle is that if I am not willing to hold at least $50k of that counter, than perhaps it is a 'low conviction' holding and I should be looking at exiting the counter. If I still have some conviction, then I should continue to accumulate towards a minimum holding of $50k.

This led me to look at my beaten down REITs. I have identified Fraser's Logistics Trust and Far East Hospitality Trust as REITs that I would like to hold and accumulate more so I have bought both - I bought more FEHT than FLCT because FEHT looks cheaper. But I'm fully aware that hospitality REITs need to renovate more frequently compared to industrial REITs. In the meantime, I also continued DCA of Capland Ascott Trust.

On the UK front, given the recent correction on the heels of a hot inflation report, I added Aviva and Lloyds and will target to maybe add more GSK as well.

Buy Property Sure Huat?

 From time to time, there are discussions about the merits of property investing versus a stock portfolio.  When it comes to the historical track record of property investing, it is clear that property prices have, on average, moved steadily upwards, with private property prices moving faster than HDB resale prices.

Returns were further compounded by the fact that property investors would have borrowed money to buy the property at historically low interest rates.

Nevertheless, property investing is not really that passive as you usually have to rent out the property and deal with the tenant, manage repairs/maintenance/renovation. Sure you can pay an agent to do this which costs money, and you also have to manage the agent and hope he/she is trustworthy.

Property investing is not for me due to the ABSD which I am not willing to pay. In addition, the rental income is taxable and might well move me into the next tax bracket. I also prefer have a balanced portfolio that gives me the benefits of diversification. Diversification is important as past performance is no guarantee of future performance.

Finally, purely for entertainment purposes, I am showing some of the advertisements that I get regularly from property agents showing the purported value of my condo and how the number keeps going up. Its meaningless to me since I'm staying in my condo so I can't sell it....

 

June Portfolio Review

 

Did my 6-monthly portfolio review. Aviva and Lloyds traded places.

Edit: I forgot all about Sembcorp which had an amazing run. Even with the recent pullback, it has jumped into the large category but I haven't been paying attention to its price.

I have hit the SSB $200k limit in the last 6 months in order to lock-in interest rates of above 3% as rates were forecast (and did in fact fall) below 3%. Also took the plunge and used CPF-OA for T-bills. 

My ASX200 ETF, IOZ, is a new entry into the list. In line with my resolution not to stock pick, I don't think there will be many more new entries in the future. Maybe Asia ex-Jpn ETF 3010.HK, and physical gold (which briefly qualified as a medium holding due to a gold price rally but things have since settled down).

Dividends Collected: May 2023

 

In the month when OCBC, UOB, and DBS pay dividends, you can expect a nice boost to your bank account....