After the planning, comes the execution.
Over the past week I have sold some of my holdings to build my cash buffer. Besides what are being sold below, I also divested Keppel DC Reit and Boustead. I still think these are good businesses to have but I just like my remaining counters more.
A loss of about 8k is realised for this series of transactions. While I could have waited for a better price, I figure that it might not happen during the rest of this year. So I decided to set up the stage instead, such that my plan could be initiated next year.
With this, I think I am done for the year in terms of buying and selling*.
Asset Allocation
Based on the latest figure, the image below shows the current asset allocation.
Cash & Equivalent
Most of my cash will be parked at Singapore Savings Bond, UOB One and OCBC 365. The interest from the latest issue of SSB looks enticing. Going to apply for some and will definitely apply more in future tranches as interest rate is expected to continue to rise.
CPF excluding CPF-R
I have included CPF as it is an integral part of my plan and I could access it just 7 years later. The amount excludes the prevailing CPF-R amount. This amount will continue to enjoy the prevailing interest of 2.5% and 4.0% of CPF-O and CPF-S respectively. I will decide nearer to 55 if I plan to shield my CPF-S, if this is still possible then.
Investment including CPFIS
Investment includes both cash and CPF. All my cash are invested in stocks, while I have invested in both stocks and unit trusts with CPF due to the 35% stock limit. I will review if I want to continue with my unit trust investment at the end of this year.
With the cleansing, my current portfolio consists of 38 counter. The goal is for this portfolio to deliver an average return of 10% going forward.
| Income (Reit) (34%) | Income (Non-Reit) (28%) | Growth (35%) | Future Growth (3%) |
| Ascendas REIT | HRnetGroup | AEM | Fiverr |
| Capitaland China Trust | Micro-Mechanics | iFAST | InMode |
| Frasers Centrepoint Trust | OCBC | Raffles Medical | nCino |
| Mapletree Commercial Trust | SGX | Airbnb | Novocure |
| Mapletree Industrial Trust | Sheng Siong | Apple | Roblox |
| Mapletree Logistics Trust | The Hour Glass | Arista Networks | Semler Scientific |
| Parkwaylife REIT | UMS | Atlassian | Upstart |
| Venture | Crowdstrike | ||
| DocuSign | |||
| Intuitive Surgical | |||
| Microsoft | |||
| Shopify | |||
| Tractor Supply | |||
| Twilio | |||
| Veeva System | |||
| Zscaler |
I am expecting my income counters to provide a return between 6% to 8%. Current dividend yield for this group is around 4.4%, so hitting 6% on average should not be a problem. As for the growth counters, I am looking for at least 12% return. The growth of individual counter will vary and definitely non-linear. Over a decade, this group of companies should be able to increase their revenue/profit/cash flow by two to three times.
The last group of businesses are US small-cap and mid-cap businesses. With the exception of Roblox (US$25B), their market cap are less than US$10 billion. Based on my perception and limited knowledge, this group has good potential with growing total addressable market. So if they can execute their plan well, they would be huge in time to come and hence they will be my future 10-bagger or more. Of course, they could turn out to be duds with many things that could go wrong. Hence, my positions in them are very small at the moment.
Looking forward to the above companies upcoming results!
* just saying. every time I thought I am done, I end up buying or selling more. I might cut 3 to 5 positions from my portfolio but current thinking is to only do it from next year onwards.
Towards Financial Independence 