2019 Investment Reflection, Performance and 2020 Investment Strategy

Just few days before we bid goodbye to 2019, it is time for me to reflect on my investments and performance in 2019. You may refer to my 2018 investment reflection here. 

2019 Investment Reflection 

This is my second year into investing. 2019 has been a great year for most investors as it’s a bullish year for us with REITs flying to new highs in 2019. 

As mentioned in my previous investment reflection, I bought my first two REITs in October 2018 namely Mapletree Logistics Trust and Frasers Logistics and Industrial Trust. Both REITs made good profit and it’s very tempting for me to realise the profit. I wrote in that post that I sold Mapletree Logistics Trust for 6.2% profit and I had the intention to board again once it reaches my first purchase price of $1.19. Fast forward to one year later, I did not board as the share price was heading upwards. I was fixated at only buying at my target price without taking into account the change in interest rate environment.

Many REITs investors will look at P/B ratio and dividend yield when deciding on the price to board. I think this year just proved to us that looking at these two ratios is useless and will just make any investors miss the boat unless one is flexible when it comes to price. I believe that it will be better to look at the yield spread as the movement of REITs depends on US Fed Rate and its dividend yield itself. 

Lesson Learnt: Try to avoid price anchoring as this will increase the chance of you “missing the boat”. Take into account financial news that will affect share price movements. For example, changes in interest rate affect both lenders (Banks) and borrowers (REITs).

Lesson Learnt: Profits may be tempting but do not sell your golden goose unless there is something wrong to it (loss of revenue/profit etc). 

2019 Investment Performance

The information below are powered by Stocks.Cafe. You can follow me here for latest portfolio update.

 20192018Overall
Time-weighted returns26.15%-4.97%19.88%
XIRR24.49%-4.07%12.73%
Profit & Loss SGD 1,791.17SGD -187.83SGD 1,603.34
Dividends$161.51$192.5$354.01
YTD Portfolio Performance
Overall Portfolio Performance

2020 Investment Strategy 

From Jan 2020, I will be embarking on a new investment strategy of buying S&P 500 ETF with FSMOne ETF RSP. I have been planning to diversify into overseas stocks for a good few months and I haven’t been able to execute it until recently when FSMOne introduced its ETF RSP. You can refer to the article here. The reason why I have chosen FSMOne for buying into overseas ETF is because of its cost in the long run. The cost in the long run will be cheaper for FSMOne since it charges by order transaction, where the minimum commission is $1 or 0.08%, whichever is higher. On the other hand, Robo-advisors such as the popular Stashaway, Autowealth or Smartly charge retail investors by asset under management. Many are concerned about the US dividend tax withholding of 30%, in my opinion, many buy into US stocks not for the dividends but for capital gains. If one is looking at dividends, they should continue to look out for dividends stocks in Singapore. 

Buying into S&P500 ETF will be my permanent investment strategy. For a start, I will be setting aside about $250 every month for the next 6 years for this strategy before increasing the amount once I got my degree and full time job.  

For 2020, I will continue to keep a look out for dividend stocks specifically REITs when they had a nice run up this year. I expect some corrections in the coming year but I do not think the price will be corrected to a low in 2018. Learning from my mistakes made this year, I will try to set my price targets higher compared to 2018 low albeit at a comfortable level for dividend yield and P/B ratio.

 

 

3 Comments Add yours

  1. Robin says:

    Hi!
    Any reason you’re choosing FSMOne and not Saxo to buy into US/overseas stocks?
    i am hving difficulty choosing between the two!
    Saxo seems like a more reputable company that’s been there for years, and FSMOne seem pretty new.

    Would love to hear your thoughts!
    Thank you

    Like

    1. I am buying IVV on a regular basis so I want it to be done automatically.

      Like

  2. Anonymous says:

    I wish I had started investing when I was this young. Keep it up! Added you on stocks.cafe – rteo

    Like

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