Summary of March 2020 Transactions

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!

Summary of February 2020 Transactions

Today is a special day (29th February 2020). Instead of the usual 28 days, we have 29 days in this month of February 2020, which is also called the leap year. We are also in the second month of the COVID-19 outbreak where it causes disruptions or instability to the current economy.

Earlier this month, the stock market seemed to have ignored the impact of the COVID-19 to the economy. This is based on my observation on the Straits Time Index (Read more: Impact of COVID-19 to Straits Time Index) However, just a few days ago, I observed that the stock market started to react to the impact of the COVID-19 outbreak. It is hard to tell whether the downtrend is short term or long term. The Straits Times Index (STI) closed at 3,011.08 yesterday.

The current situation has proven that we should always have some form of emergency funds that can tide us over 6 months or more should we get retrenched due to financial crisis. Thus, I continued to purchase Singapore Savings Bonds monthly even though the interest rate has fallen. The average interest rate of March Singapore Savings Bond is 1.71% if you hold it for 10 years. Singapore Savings Bonds currently makes up 17% of my entire investment portfolio.

I did not make any stock purchases this month but definitely I am looking around as the stock prices of many counters in my watchlist has fallen this week and they provide an attractive dividend yield in the long run. Some examples are Singtel, SPH REIT, Suntec REIT, Mapletree North Asia Commercial Trust.

Singtel

Closing Price: S$3.00, Current Dividend Yield: 5.83%

SPH REIT

Closing Price: S$1.01, Current Dividend Yield: 5.54%

Suntec REIT

Closing Price: S$1.70, Current Dividend Yield: 5.59%

Mapletree North Asia Commercial Trust

Closing Price: S$1.10, Current Dividend Yield: 6.57%

 

Last but not least, here is a quote from Warren Buffet.

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

– Warren Buffet

Warren Buffett

 

Summary of January 2020 Transactions

We started the first month of the year 2020 with the Wuhan Virus. With the recent outbreak, many stocks have been sold down due to investors panic. Two REITs that I have noticed with properties in China are CapitaLand Retail China Trust and Sasseur REIT. (Read more: CapitaLand Retail China Trust and Sasseur REIT Closes Malls Due to Wuhan Virus)

I have not found any good picks yet. In fact, I am looking at Frasers Commercial Trust but the stock price has not yet came down to a satisfactory level that I will add more of it to my stock portfolio. In times like this, I think investors with a ready war chest will grab the opportunity to buy quality good stocks are cheaper prices.

I continue to purchase Singapore Savings Bonds even though the interest rate has came down. One of my goal for 2020 is to purchase 8K worth of Singapore Savings Bonds.

I have started my fitness routine however this was disrupted by a sudden flu followed by high fever earlier this month. I am glad I recovered before Chinese New Year. In the month of January, I managed to stretch myself to run a total of 40.49km. This is slightly more than my target of 25KM per month.

With the outbreak of Wuhan virus, Health is also Wealth. Don’t you agree?