Friday, December 31, 2021

Portfolio Summary for December 2021

As of 31 December 2021

CDP

Security# sharesPrice S$%
DBS70032.667.87
OCBC Bank1,50011.405.89
SGX1,2009.303.84
SATS3,9003.895.23
ST Engineering4,1003.765.31
CapitaLand Invest5,4003.416.34
Singtel6,1002.324.87
Powermatic Data5,0002.945.06
Micro-Mechanics1,3003.381.51
ComfortDelGro11,2001.405.40
Sheng Siong13,0001.466.54
Genting Singapore11,7000.7753.12
TheHourGlass15,4002.0410.82
HRnetGroup21,9000.8056.07
China Sunsine31,0000.4855.18
HC Surgical35,5000.556.73
Silverlake Axis60,8000.2755.76
Kimly27,0000.4153.86
CL Int Com Trust8352.040.59
Portfolio Value = $290,330

Trade Actions
- None

SRS

Security# sharesPrice S$%
OCBC Bank90011.4012.68
SGX1,3009.3014.95
SATS2,2003.8910.58
ST Engineering1,7003.767.90
Singtel2,0002.325.74
ComfortDelGro6,9001.4011.94
Sheng Siong8,7001.4615.70
HC Surgical19,5000.5513.26
Silverlake Axis21,3000.2757.24
Portfolio Value = $80,885

Trade Actions
- Bought 3,600 shares of ComfortDelGro Group.

Commentary:
We have finally come to the end of a tumultuous year. When the shadow of the Delta variant is almost behind us, there arose yet another more infectious Omicron variant of the COVID-19 virus. Luckily, the Omicron variant is not as lethal as expected. Coupled with a high rate of vaccination, the downside impact is mitigated to an extent. Nevertheless, the virus is constantly mutating, and we will never know what may come in Year 2022.

Fortunately, human affairs are more predictable. The U.S. and Russia have started engaging in talks rather than military manoeuvres, so the chance of an armed conflict in Europe is unlikely at this point [news]. U.S. Fed Chairman Jerome Powell has been endorsed for another term. The Fed has clearly signaled its intention to end the bond buying [news] and will raise interest rates soon. This bodes well for banks who have been facing NIM pressure, but bad news for mortgagors. The MAS has cautioned about the rising debt level in Singaporean households [news]. A rate hike also spells trouble for companies deep in liabilities. Look no further than China's Evergrande as a poster child of what may happen to companies who mismanage their borrowings. This is one reason why I steer clear of most REITs and have a preference for companies with minimal debt or are debt-free.

For myself, I have finished the last instalment of my son's endowment plan, which means my future income can be freed up for other use (like bullets for my investment portfolio!) I completed my CPF and SRS Top-ups in December too. I just found out that I have hit the cap for my CPF Special Account (SA) and Medisave Account (MA) in 2021. Come 2022 when the ceiling is raised further to $192,000 for SA and $66,000 for MA respectively, I will be making another contribution before the Lunar New Year. The aim is to maximize the income tax relief.

Investments-wise, I have been disciplined in following my rules this year. I stuck to only companies on my watchlist (regardless of how appealing those cash-burning unicorns and cryptocurrencies appear to be!) I waited patiently for the stocks to fall from their sky high prices before taking small bites at a time. I consider myself a weirdo investor - Lofty valuations of my portfolio doesn't make me happy. On the contrary, I feel excited when stock prices plunge, because it means I get opportunities to add on my positions. For months when there wasn't any buying opportunity, I saved up the money. So far, I have managed to rebuild a sizeable war chest. I hope to be able to deploy it in 2022.

In summary, 2021 has been a satisfactory year for me in terms of investment and working towards my goal of financial freedom. While I faced psychological stress due to juggling Work-From-Home arrangement and my children's Home-Based Learning, I am glad my family managed to stay safe and healthy. As the population achieves herd immunity, my hope for 2022 is that the COVID-19 virus will become no deadlier than the seasonal flu, and that we can regain some semblance of life prior to the pandemic (e.g. no requirement for outdoor mask wearing). I also hope to travel overseas again.

Have a wonderful New Year, my friends!

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