With my main focus on building up my passive income, I decided to buy into REITS listed in Singapore. Some of the REITS and equities that I accumulated are as follow:
REITS
1. Areits
2. Ascott Residence Trust
3. Mapletree Ind Trust
4. Cache Logistic Trust
5. Mapletree Log Trust
6. CDL Hospitality Trust
7. Suntec Reits
8. K-Green
9. Mapletree Commercial Trust
Dividend Stock
1. Singpost
2. Sats Airport
When the Tsunami struck in March, my equities portfolio suffered a lost of about 300K and I was wondering if my equities investment strategy was a mistake. Luckily, I stood my ground and the stock market fully recovered by end April. Gaining more confident in my stocks choice, I began accumulating even more equities. This wrong sense of confidence cost me dearly when the stock market dipped in August. The period from August to October was the most painful period of my life. I had never lost so much money in my life and it really hurt. I applied the same strategy of not cutting lost until October.
In October, I attended a market outlook seminar organized by one of my bankers and they were predicting a further slide of about 20% to 30% by the end of the first quarter in 2012. At that time, I had researched intensively on the Euro zone problems and arrived at the same conclusion that the Greek will eventually default. Thus I sold more than 50% of my equities on strength in late October. I was relieved when the market dipped again as predicted in the last quarter.
Still nursing my wounds, I decided to focus more into bonds again. By the end of December 2011, I had added the following bonds to my fixed income portfolio:
1. Guccoland, 3yrs, 4%
2. Cheung Kond Bond, perpetual, 5.13%
3. Banyan Tree, 3 yrs, 5.5%
4. Ascott Reits MTN, 4 yrs, 3.8%
5. DBS Pref Share, Perpetual, 4.7% (secondary market)
6. GLP Perpetual, 5.5%
When the year came to a end, I was more at peace with my investment portfolio. I decided to count my loses for the year 2011. At the end of the year, I was back to square one. I broke even! How is this possible? My equities portfolio was about 12% in the red. When I counted all my dividends from the fixed incomes and equities, I was able to break even with a tiny little profit!
At the end of 2011, I think I understood the meaning of diversification. My whole portfolio consist of properties, equities and fixed incomes. 2011 was a lousy year for equities but my fixed income and properties did quite well and more than make up my lost in equities. My average passive income for 2011 was more than 40K per month.
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| Portfolio: 2011 |
In 2012, I hope to achieve a passive income of 50K per month.
These little "ah ha" or zen like enlightening moments are great huh?
ReplyDeleteEh? Loans? I better don't get you into trouble by asking, just in case you got no license. LOL!
You are your own family office. One man outfit?
I'm working towards that too; albeit in a more micro scale :)
These 'ah ha!' are indeed great but I hope they don't cost too much :(
ReplyDeleteThe loan refer to the housing mortgage I took in late 2010. I grew my investment portfolio in 2011 through leverage. I am not sure if my investment pie chart is misleading as I consider loan as part of my investment portfolio. I am truly lousy when it come to financial terms and presentation.
I do consider managing my portfolio a full time job and I spend about 2 to 3 hours each day on it. I spend the rest of my time enjoying all the little joys of life. If I am bored, I will start analyzing different business opportunities in detail. Maybe I should study the business opportunity in 'loans' ;)
Wow! :) You are my idol!
ReplyDeleteYour $50k passive income this year is my dream goal, though I am still far from it. This year maybe only get around $25k monthly from my portfolio.
Anyway, if I were in your position, I would just concentrate on bonds and use the cashflow to fund the equities purchase and property purchase.
Right now, I have to risk my principal on equities because I need the capital gain for me to make the switch to $50k monthly passive. i.e., I'm on wealth accumulation mode, not yet wealth preservation.
Have more to learn from you! Keep up the good blog.
WJ
ReplyDeleteYou are right that I should concentrate mostly on bonds and use the extra cash flow to reinvest in bonds, equity or property. I am now heading in this direction and hope it will suit my style.
I used to owned a EC (The Rivervale) when I started working but it effectively delayed my private property investment journey by at least five years. When the five years restriction is up, I was too eager to sell and made a lost of about 20%. However, the 'new' condo that I bought has appreciated by more than 100% based on today valuation. I lost some but gain some in return. I like to expand my property portfolio but the 10% buyer stamp duty really put me off :(