RECENT TRANSACTIONS

As I did not provide an update on my investment holdings since December 2017, here are the recent transactions for my portfolio.

Purchased shares in Hanwell Holdings Limited at $0.23 after the steep fall in share price. From an assets-based valuation perspective, I believe that its current share price presents us with an opportunity to enter, with a good margin of safety

Read my detailed discussion here - Hanwell Holdings: Net Cash 70% of Market Cap.

Received $1.10 per share in dividends from DBS, including the special dividend of $0.50. DBS has undoubtedly been my best performer thus far, with returns in excess of 100%. 

I believe that a significant factor for the recent surge in DBS' share price is the decision to increase its dividend payout ratio, with the new dividend policy to pay $1.20 in dividends annually going forward. Currently, even at close to $30, DBS provides a yield of almost 4%. At my average price of $15.01, I am collecting 8% of dividends annually, and I have no plans to divest my holdings.

I remember attending the DBS Annual General Meeting back in 2017 at Marina Bay Sands, and one key takeaway that I got was how DBS has managed to stay far ahead of its competitors in the e-payments sector. CEO Gupta shared that DBS was the first-mover to introduce the DBS PayLah! app as an e-payments platform in Singapore, which spurned many of its rivals to jump on the bandwagon. Mr Gupta also mentioned how Singapore is lagging behind China in terms of embracing e-payments. DBS' digital developments were recognised when they were awarded the 'World's Best Digital Bank" by Euromoney in 2016. Coupled with strong growth in their wealth management segment, DBS remains my top pick among our local banks.

Received $0.05 per share of dividends from SGX. For Q1 2018, SGX reported their strongest quarterly earnings in a decade, with net profit exceeding $100 million.

With my 3-month summer break ahead, I aim to do more in depth analyses of companies on my watchlist, and continue build a diversified portfolio.

Take a look at my latest portfolio here: My Portfolio


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MY PORTFOLIO






Updated as at 11/05/18

After much consideration, I've decided to reveal the current holdings in my portfolio. My portfolio is a low five-figure sum, which I have accumulated from my savings, National Service allowance and working part-time jobs.

I started investing in mid-2015, while I was in National Service. Looking back, mid-2015 was probably the worst time to start, as the markets began to decline due to the sharp fall in oil prices and fears of a hard landing for the Chinese economy. I'd concede that when I first started buying shares, I had close to zero knowledge about doing due diligence. All I did was to base my analysis on P/E or P/B ratios. I definitely wasn't ready, and consequently got badly burnt by the downturn in oil and gas sector.

It was a humbling experience to be taught a lesson be Mr Market, and one thing I learnt was that we should never underestimate the power of the markets to work against us. Nonetheless, I believe that learning a hard lesson early was exactly the wake-up call that I needed. Over the past three years, I have spent a lot more time reading investment books to continually improve my fundamental analysis.

I am still in the process of rebalancing my portfolio, as it is still heavily skewed towards the financial sector, given that our 3 local banks make up a huge proportion of the STI ETF. Therefore, the percentage of cash that I'm holding is somewhat on the high side. Sectors I'm looking at include property, utilities, industrials, healthcare and consumer staples.

Briefly, here are the reasons why I've invested in these companies:

DBS Group Holdings

DBS comes in top among our local banks, and I like their drive to embrace technology to improve their banking services. DBS was award the World's Best Digital Bank last year, and was also the first mover to introduce e-payments in Singapore. I attended DBS' AGM earlier this year, and I must say that I was really impressed by CEO Piyush Gupta's vision to keep DBS competitive by integrating technology with banking services. 

My initial purchase price was higher, but after opting for the scrip dividend scheme for a few rounds of dividends, my average price has decreased to $15, which gives me a yield of close to 8% annually.

In early 2017, I sold off half of my shares at $19, which on hindsight was too soon.

STI ETF

I purchased this after reading the book 'A Random Walk Down Wall Street', which was about the merits of passive investing through index funds. This a more of a long-term position, rather than leaving these funds in fixed deposits with near zero interest rates. I was fortunate to have made my decision in mid-2016, which gave me a good entry price. I'm currently receiving a dividend yield of more than 3% annually.

My reason for allocating a portion of my portfolio to ETFs is because I view them as an 'insurance', if my stock picks underperform, I still can fall back on getting an average index return, which is still rather decent. I am considering diversifying my ETF allocation too, keeping an eye on emerging markets ETFs or a REIT ETF.

Post on REIT ETFs: Should we invest in REIT ETFs?

SGX 

I purchased SGX in November 2016, after Trump's presidential victory, as I had expected the rise in volatility to boost trading volumes in our local market, which has been sluggish after the Global Financial Crisis. However, trading volumes have not increased significantly, and SGX faces several challenges, including the threat of investors leaning towards passive strategies instead of active investing and low IPO activity. This is probably a vicious cycle, as the lack of action in our local market further deters companies from listing here, such as Razer and Sea (formerly Garena).

Nonetheless, I am getting a yield of 4% based on my cost price of $6.99.

Jumbo Group

When Jumbo's share price fell to $0.54, I felt that was a reasonable valuation for a company with good growth potential, as they seek to expand in Asia. More details can be found in my earlier post.

Post on Jumbo: Jumbo at 52-week low

Far East Orchard 

I believe the improving sentiments for our local property market, as evident from the increasing number of collective sales, would benefit FEO, which has been trading far below its net asset value. More details can be found here.

                         2) Update on Far East Orchard

Hanwell Holdings Limited

From an assets-based valuation perspective, I believe that it an opportunity invest in a company with a huge cash pile, providing us with a good margin of safety.



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