Everyone knows the narrative for this quarter and I shan’t add on to that. Last year, I decided to reboot my portfolio from 2020 and if I have liquidated my portfolio then, this would be the best time to re-build it. Alas, I did not do that which means it is likely that this new portfolio will start with a negative year.
Looking at the past 5-years record (part 1, part 2, part 3), there were two occurrences when my portfolio started negatively – 2000 to 2004 and 2015 to 2019. For the former, I ended with a -13% return for the period and for the later, a 100% return.
How will the upcoming 5-year period ends with? While I can’t predict the future, I stay hopeful that it would end up in the positive region unless we enter a period of depression.
Return for the Quarter
BM: Benchmark (SG – ES3, US – SPY)
Portfolio is down 18.3% for the quarter, slightly ahead of ES3 (-23%) and SPY (-19.4%) Looking through the counters, I am still confident of their long term business prospect and it is unlikely that any of them will bankrupt due to the current situation.
Summary of Actions Taken
Since the beginning of the drop, I have dipped into my opportunity fund a few times (deployed, sale, 2nd, attraction) to buy into the drop. I did a consolidation of my purchases and the table shows the top 5 purchases (77%).
*CPF-OA
Besides the above, I have also bought 20,000 shares of STI ETF with CPF-OA at an average price of $2.61. While I did not buy them at the bottom, I am satisfied with my average purchase price and believe they will do well in 3 to 5 years time.
Coming Up
It would be interesting to see the impact of the situation on the companies’ businesses in the upcoming quarters and how they try to mitigate the situation. Dividend are expected to be cut and they should especially if there is a huge impact to cash flow.
I do not know how the market will move for the rest of the year, so I am just going to keep to my plan. Another 25k that I can deploy if portfolio drops beyond 30% and sufficient OA for me to continue to buy more ES3.
Hope that the health crisis will be over by end of the year and life can be back to normal again for all.
Towards Financial Independence 