We are coming to the end of March 2020 and this is time to look at my stock portfolio. I have never expect the COVID-19 outbreak to have such a significant impact on the world wide economy which caused all the stock markets to plunge into a sea of red. I guess it was too early when I assess the impact of the COVID-19 outbreak with the previous outbreak as the stock market was still relatively stable at that time.
From 11th March 2020, this is the period whereby the impact could be felt and the worst is the Straits Times Index Fell 6.03% Due to Oil Price War between Saudi Arabia and Russia. I have sold off The Hour Glass and Kingsmen Creatives at reasonable prices when I read about the impact of COVID-19 to retail and entertainment industry. I feel that the risk of these two stocks will be impacted the most when shoppers avoid malls and attractions such as NERF experience are closed.
Taking opportunity of the market crash, I have bought OCBC Bank and Singtel as the dividend yield has turned attractive. Of course, I am expecting dividends to be cut but the dividend payout should turn positive when the economy recovers. There are other blue chips whereby the current prices are attractive but if you look at my stock portfolio, I have already own a couple of them such as ST Engineering. The others such as SBS Transit, VICOM can be found in my wife’s stock portfolio.
The stock prices of REITs have fallen as much as 58% this month. As I have a limited war chest, I have nibbled at US Manulife REIT and keep the rest for deployment in tranches in upcoming months.
Last, I will like to share the investment lessons I have learnt during this crisis.
Even though we had bought some shares at the prices prevailing before the fall, we welcomed the decline because it allowed us to pick up many more shares at the new panic prices.
Berkshire Hathaway shareholder letters, 1990
Keep calm and continue investing!