metro holdings limited

Parted with Metro Holdings after 12 years. Reason for purchase then was its exposure to China properties and I thought whoever made the decision has foresight.

As seen from the image below, my initial purchases were a disaster! Got the shares just before GFC and “ka-boomed” when GFC hit in 2018. Fortunately, my stake was small and since I bought it with CPF, I just buy more and was hopeful that in 10 to 20 years time, the price will recover.

Screenshot 2019-10-17 at 12.46.48 PM

Lucky me, the price recovered pretty fast and being a consistent dividend payer, I have made a total gain of 170% over the holding period. Nothing spectacular over 12 years but sure beats the CPF-OA interest rate.

Initially, I have wanted to trim my holdings by half as I was not comfortable with it taking up a core position in my new combined portfolio from next year onwards. While it still gives a decent dividend yearly (current yield of about 4.8%), I think that the chance of increasing dividend in the next decade is probably not that high.

After toying with the idea a few weeks, I decided to sell all to increase the investible amount for my OA. I can then search for another counter to invest in with that amount. In the mean time, it will just earn the 2.5% interest from CPF-OA.