Financial Freedom SG

Took a while to rebuild my portfolio of stocks and shares after selling a big chunk of it to finance my property purchase nearly two years ago.

It currently looks something like the pie chart you see on your left.

I took the opportunity to take profit for the index stock that I have been buying for a few years and also sell off stocks which made some money and those with losses.

So the ones left were mostly money making. Right now after almost two years, Elec & Eltek and Hyflux are the loss making counters while the rest show gains.

The portfolio as a whole, including the loss making counters, is showing a profit of more than 30%, excluding dividends earned, which isn’t too shabby but nothing to shout from the rooftops either.

The strategy going forward for me is to continue with the monthly dollar cost averaging into the STI ETF and the Infinity US 500. I’d be looking at stocks specifically when there is a bonus or when funds materialises. There should be a sum coming when we sell off our current flat which will be invested back to stocks and shares. This will help earn dividends which can be reinvested or used to pay the housing loan for the new property. The focus for new stocks purchases will be on dividend paying stocks which will be in the local telcos, REITs or bank stocks.

When the new funds comes after the sale of our current property, I’d probably sell off the loss making counters and look to add one or two company/ETF/index fund to the portfolio while keeping the list at about 10 different positions.

In a way, my portfolio is a aggressive because we don’t have bonds in there, but my focus is very much to build up the portfolio without the drag of bonds which I’d only add later when I’m about 10 years from retirement. The only worry is I am over invested in one counter, OCBC, as more than 1/3 of my portfolio is there. Once additional funds come in, I’d probably rebalance the mix by investing more in other counters or the newer counters.

Nothing much else has been going on as I’ve not been monitoring the investments very closely, except adding to the OCBC position when there was a rights issue last year which has since appreciated.