Passive Income continued to grow in 2023!

My dividends continued to grow in 2023 at a healthy pace. I achieved FI in 2021 but it is nice to have extra funds to set aside for future 'retirement projects' such as charitable work.

Despite having extra funds, I am happy with my current condo so I am not tempted to jump on the property upgrading path. 

As I mentioned before, some of my friends have 'upgraded' to landed property but that was their "passion project" because they wanted to build and design something that they could call their own. So the journey in designing and building their dream home was a crucial part of the experience. I honestly don't have the time or inclination (or diligence) to undertake such a project at my stage of life. 

 

2023 Return - 10% target achieved!

 

The year has finally ended and my 2023 IBKR portfolio return is 14.68%. At the start of the year I set a target of 10% in order to erase my 7%+ loss in 2022 plus a little bit of gain. I am glad that I achieved it. Even though I 'lost' to S&P500 which returned 24%, I am still content because my portfolio is rather Europe and UK weight and I managed to beat both benchmarks.

According to CNBC:

FTSE 100: 3.64%

Euro Stoxx 600: 12.64%

As FTSE 100 is one of my largest holdings its underperformance definitely dragged me down. Fortunately, there was a mini rally in the financials sector so that helped my portfolio a lot. 

Christmas!

 

Warning: This post is not related to investing. 😄

I always had an interest in photography and my current Canon DSLR is already 8 years old. I decided finally to get a replacement. I occasionally do visit camera review websites and the sensing I got was that Sony had pulled ahead of Canon with their constant line of Alpha 7 models. The Alpha 7 Mk IV (released in 2021) seemed to be the model to get even if it meant 'relearning' a new camera brand.

Then in 2023, the equation changed with Canon's release of the R6 Mk II, which is one of their low to mid-range models. Apart from it being 1 year newer than the A7 Mk IV and thus having a slight technological edge (eg: in video), I think it shows that Canon is able to learn and catch up with Sony. I think it occupies an ideal price point with the R5 and R3 costing a lot more for more 'pro' video features. Unlike the old days when the more expensive cameras had clear advantages, the gap between midrange cameras and their professional brethren has really narrowed.

I am grateful that my employment income and passive income allows me to pursue my interests. In 2024 I would like to travel more and take more photos.

I hope you will be able to give yourselves some sort of 'treat' for surviving 2023! Have a Blessed Christmas!

Even Bond ETFs are Rallying

 

I posted earlier this year about my interest in Investment Grade US$ Corporate Bonds because of their attractive 6%+ YTM. As part of my asset allocation strategy (eg: buy both equtiies and fixed income), I added to my LQDE holdings and also dipped my toes into ID28.

My only regret of course, is that I did not buy more. Prices of Bond ETFs have rallied and the current YTM for ID28 has plunged from 6.09% to 4.90%. I have no plans to add to my holdings at these yields so my fixed income will be solely T-bills for now.

Earlier Posts for reference:

BuyafterCrash: Trying iShares 2028 Term Bond ETF ID28

BuyafterCrash: Time to go for Corporate Bonds?

Christmas Rally

 

It took some time to arrive, but with the Fed indicating 3 rate cuts in 2024, the Christmas rally is upon us. 

Portfolio Update: Dec 2023

 

Thanks to a rally in share prices, Aviva and Comfort Delgro have gone back to the large category.

Capitaland Ascott Residence Trust went to large category because I was accumulating shares after their disastrous undersubscribed rights issue.

In the medium category, I accumulated more Frasers Logistics Trust because I think its a worthwhile long term holding and also I want to balance out my holdings in Hospitality Trusts. 3010.HK ETF went up to Medium as a result of regular FSMOne RSP.

Fingers crossed: >10% return in 2023?

 

BuyafterCrash: IBKR Portfolio Performance 2022

BuyafterCrash: Welcome 2022

As the end of the year approaches, I am keeping my fingers crossed that my IBKR portfolio return will hit my target of 10%. At the moment, its 12.5% but anything can happen. This will erase my 2022 losses and preserve my 2021 gains.

I have again underperformed Vanguard World, but since 50% of my investing in 2023 was World ETFs, I at least captured some of the gains.

Comfort Delgro : Price Recovering?

 

Comfort Delgro was one of my larger holdings until the price crash caused it to fall into the medium category. Thanks to the recent price rally, it has gone back to the large category and I will be updating my portfolio page soon.

With higher interest rates, companies that are 'nett cash' like CDG are looking more attractive than companies with massive debt servicing costs. On the other hand, Singtel also has a strong balance sheet but isn't doing too well because its path to growth is not as clear. It is 'easy' for CDG to buy bus and taxi companies/bid for routes because a small bus company doesn't cost that much. But for Telcos, you have to go big or go home when it comes to acquisitions.

While I had made one lucky purchase at the absolute bottom at $1.03, I started buying from $1.22 downwards so I 'averaged down'. If you go to the internet, you will see people saying that they will buy after CDG drops below $1. So I guess in the end they didn't buy since it sharply rebounded.

I stuck with my usual philosophy. I analysed and valued the stock at $1.30, and let it drop a bit for 'margin of safety' then started averaging down from $1.22 to $1.03. I know I will never buy at the absolute bottom so averaging down has worked for me, sort of.

Now I am waiting for Capitaland Ascott and Singtel to recover 😎

Dividends Collected: Nov 2023

 

Year is almost over. My dividend growth for 2023 looks to be >20%!