My Investment Portfolio (February 2023)
STI ended February weaker, with STI down around 3% this month. Again, interest rate had been a concern to the market, with investors now expecting a faster than expected pace of hike to tame inflationary pressures going forward. Interest rate is also expected to remain higher for longer.
For my top 30 holdings this month, it had been a busy month. There were quite a few companies reporting this month and it is still ongoing as some have yet to report their full-year financial results at the time of writing. Samudera Shipping, Hong Leong Finance, Sing Investment & Finance, Bonvests, Hotel Properties, Far East Orchard, LHT and Sembcorp Industries all declared higher dividend payouts. New entry Delfi also reported with a higher dividend payout and a set of result that beats market expectations. More muted results were reported by iFAST, Singapura Finance and EnGro. Global Testing meanwhile, did a lower capital reduction payout as compared to last FY. Haw Par and Singapore Land Group did deliver a decent set of results, but didn't increase their dividend payout. GK Goh meanwhile, received a takeover offer from the controlling shareholder.
I have bought the following companies from the market this month - Asia Enterprises, Chuan Hup, Credit Bureau Asia, F&N, Frasers Property, GK Goh, GuocoLand, Heeton, HL Global, Hong Leong Asia, IPC, Isetan, Koda, Koh Brothers, Low Keng Huat, Mandarin Oriental, Metro, MYP, OUE, OUE Lippo Healthcare, PEC, Shangri-La Asia, Sinarmas Land, Sing Holdings, Singtel, TC Auto, Teho, Wing Tai and Yeo Hiap Seng. No sale trade was done.
I have participated in the following scrip dividend scheme - Sabana Reit.
I have accepted the following voluntary delisting/cash offers this month - Sabana Reit (partial offer).
As markets starting to get volatile again, I have slowed down my purchases this month. Next month, I will continue to go through the remaining full-year results of companies with financial year ending 31 December 2022 that I have missed out in February. With much to digest, I don't think I will be very active in the market next month. Also, with companies having finished reporting their results, I expect a much quieter market in March.
My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 28 February 2023)
Top 30 Holdings (Sing$ Denominated shares)1. iFAST
2. Hongkong Land
3. Jardine Matheson
4. DFI Retail Group
Top Holdings (HK$ Denominated shares)
1. Shangri-La Asia
Top Holdings (Aust$ Denominated shares)
1. AV Jennings
1. Streettracks STI ETF
3. CapitaLand Integrated Commercial Trust
5. Best World
My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation
2. Alpha Professional Holdings Ltd (formerly known as Z-Obee Holdings Ltd)
My Australia Stock Portfolio
1. GPS Alliance Holdings Limited
My Unlisted Company Portfolio
1. Iconic Global Limited
2. Dongshan Group Ltd (formerly known as Greatronic Limited)
3. General Magnetics
4. Fastech Synergy
5. Memory Devices
6. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
7. FM Holdings
8. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
9. FerroChina - Under Liquidation
10. FirstLink Investments
11. NEL Group
12. Jets Technics
13. Guangzhao Industrial Forest - In liquidation - Compulsory winding up (Insolvency)
14. Hongwei Technologies Limited (In Provisional Liquidation)
15. FDS Networks Group
16. Aussino Group - In Liquidation - Creditors' voluntary winding up
17. China Oilfield Technology
18. China Milk Products Group - Under Liquidation
19. Pacific Healthcare
20. Eratat Lifestyle - In Liquidation
21. Fung Choi Media - In Liquidation
22. DMX Technologies - In Liquidation
23. Europtronic Group
24. China Sun Bio-chem Technology
25. Attilan Group
26. Transcorp
Labels: Portfolio
posted by ghchua at 4:03 PM
11 Comments:
Hello GH,
Have been a long time never to meet you physically in an agm/egm setting. What is your estimated chance to remain as a private GK Goh shareholder? Or you will accept the delisting offer?
Thanks,
Ryan
Hi Ryan,
Nice to hear from you again.
Unfortunately, due to the structure of the deal and the current Companies Act, there is no chance of one remaining as a private GK Goh shareholder after the offer closes. It is either that the company continue remain listed or they secure more than 90% to compulsory acquire the remaining dissenting shareholders and delist the company. This is because they are using another vehicle just to do this offer and GKG Investment Holdings Pte Ltd (which holds 62.89% of GK Goh) had undertaken to accept the offer.
I think the offer is decent, as they are offering close to GK Goh's NAV. Therefore, I will accept the offer if the acceptance rate is close to 90% as it means that they will compulsory acquire your shares anyway when they hit 90%. It is too early to make a decision now as the IFA report is still not out yet.
Yes, let's wait for IFA and hope to chat with you again very soon :)
Hi Mr Chua,
May I know your thoughts of DFI Retail Group? Financials don’t look great but things seem to be improving. May I ask your view on them?
Many thanks
Hi Lyonnais,
The set of result by DFI Retail Group was weaker than expected, mainly because of impairment loss in Robinsons Retail. If you just look at their 2H22 operating performance, they are profitable and already shown some recovery in their businesses.
I think things are looking up for DFI Retail Group going forward, with China and Hong Kong reopening. However, the rate of recovery is a factor to consider too. Plus, they are investing highly into digital transformation, which remains to be seen whether they are spending too much. Higher costs, inflation and competition with impact their business too, especially Grocery Retail division, where consumers are more price sensitive.
It seems to me that your investment strategy is greatly influenced by Hendrik Bessembinder study that a small minority of outliers (super performers) push up the stock market average return and thus drive much of the return.
Reference: https://einvestingforbeginners.com/traditional-overdiversification-wisdom/
In your attempt to include the super performers in your portfolio, you will cast your net wider (include both value and selected growth stocks) and have a large portfolio (at least 80 individual stocks). In addition, you will rarely sell your winners. Any comments on Andrew Sather's article on 15-20 stocks are not enough?
Hi weii,
I think the article that you have provided is written in US context. In Singapore, there is no product that can duplicate my portfolio that is available in the market. For ETFs, we have only STI ETF here. Therefore, over diversification for me is by design, because not only I want market return, I also want to add some alpha into my portfolio, which explains why I have most stocks outside STI. And because of liquidity issue, you can't simply only hold 15-20 mid and small cap stocks listed on SGX.
If you want to deal with small and mid cap stocks on SGX, I think 15-20 is simply not enough. For some stocks, there is not even a single share done on most days. Therefore, rather than limiting by number, I think casting your net wider will allow you to find more super performers, while most of the others will do ok if you screen them before buying. Of course, initially, I made a lot of mistakes like s chips etc, but as time goes by, I find that I have been making lesser mistakes and diversification allows you not to sell your winners too early, because you know that no matter how well they run, they would not form a significant part of your portfolio.
After that, you can fine tune your portfolio by overweight some stocks that you are more confident, while still maintaining a diversified portfolio.
The important part is to stay invested and not to hold too much cash at any one time. Frankly speaking, I rarely hold more than 2% in cash for my portfolio. Try to stay almost fully invested at all times.
Hi,
Spreading the fund in many baskets is a cushion/buffer for one's route to Financial Independence and having the option to Retire Early.
WTK
Hi WTK,
I guess I couldn't agree more with you. But different strokes for everyone. Some investors might prefer a more concentrated portfolio to take advantage of market opportunities and volatility. There is no one perfect solution for everyone, but one must know yourself in order to implement the best strategy for oneself.
Hi Ghchua,
Yes. One has the tendency to ask others the best strategy. Frankly, the answer is on oneself. This is an example of looking for the correct answer whilst the answer is within one. One will have to assess himself or herself and review on the type of strategy that suit him/her best. There is no perfect and immediate answer. Time might be the test in letting one know the correct strategy. Avoid comparison and it will cloud one's judgement. I believe that as long as one maintains the belief of himself or herself, he/she will find the answer eventually.
WTK
Hi WTK,
Well said. I couldn't have expressed it any better. Thanks for sharing with us your views here. Very much appreciated.
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