Sale of Portfolio

Over the past week, I have been selling off my portfolio. This was due to a couple of reasons. Firstly, I felt that I had learnt alot over the past 3 years and wanted to restart and retrack my portfolio and performance. Secondly, there was a significant cash infusion which I wanted to inject in and track. Lastly, I wanted to return my dad’s investment three years back, without which I would not have enough funds to invest, and learn from the market as a result. Thankfully, I managed to give him back the initial investment, with an additional 9% on top as returns, with no fees charged.

On the 26/8/16, I sold off my stakes in Riverstone Holdings at $0.885, Sheng Siong Group at $1.07, Kingsmen Creatives at $0.645 and CapitaCommercial Trust at $1.56. On the 30/8/16, I sold off DBS Group Holding at $15.24 and on 07/9/16, I sold AIMSAMPI Reit at $1.405. Lastly, on 23/9/16, I sold off ISOTeam Ltd at $0.39. After accounting for stock splits and dividends, my returns for the stocks are as shown:

Date Bought Date Sold Stock Total Returns
2/5/14 26/8/16 Kingsmen Creatives  -23.42%
7/5/14 26/8/16 Riverstone Holdings  137.88%
5/9/14 26/8/16 Sheng Siong Group  67.19%
5/9/15 26/8/16 CapitaCom Trust  11.60%
10/2/16 30/8/16 DBS Group Holdings  17.69%
17/2/14 07/9/16 AIMSAMPI Reit  27.66%
12/5/15 23/9/16 ISOTeam Ltd  27.15%

Riverstone has been a very good run for me. I had sold it off at different prices, netting me gains ranging from 100% ~ 175%, with a total average gain of 137.88%. It is also my first two-bagger. I would consider buying it again if the stock price becomes cheaper, as I felt it is harder for it to grow at such breakneck pace like it used to before.

Sheng Siong has been a steady performer and dividend payer during the past few years. Its has been consistent in its revenue and profit growth, and the nature of its business gives it a protective moat against the performance of the economy. Similarly, I would consider adding this again if the stock price becomes attractive in the future.

CapitaCommercial Trust was a relatively short term investment in my porfolio. I had held it for slightly more than a year, and seen its share price fluctuate during this period. At one point, it was trading at ~$1.30, (which was quite a far bit below my entry price of $1.50), which goes to show that even if you bought it at a relatively higher price, the advantage of dividend investing is that the dividends would still add up if you held it for long.

Kingsmen Creatives was a blip in my portfolio. Its recent business performance was lacklustre, resulting in the drop in profits and thus, share price. However, the generous dividends received over the past 3 years helped to cushion my total losses, which would have been much worse otherwise. The nature of the business is largely tied to the retail industry in Singapore, which hasn’t been in good shape for a couple of years. A lesson learnt from this is that there is a higher element of risk in investing in businesses which have lumpy earnings from contracts compared to those which deal with daily necessities, like supermarkets, cigarette makers, etc. The earnings may be high in a hot season, and wither when the industry shrinks or dries up.

DBS Group was a good trade, as it was clearly undervalued when I first bought it at $13.34. Back then, it was trading at a good discount to book value, and was offering dividend yields of ~4%. It was a compelling buy to me, as I felt it had a strong business and brand to boot. This is another stock I would be tracking closely in the near future.

AIMSAMPI Reit was the longest lasting stock in my portfolio, and it has not disappointed me. Its stock price rarely fluctuated, and it consistently gave me ~8% a year in dividends. Its management has been running the business well, and this would be a stock I would like to add to my porfolio in the near future when prices become more attractive.

ISOTeam Ltd turned out well, and I would also be tracking this stock closely. It has shown a strong growth in revenue and earnings, and has a competitive moat in its business. Its growth prospects look bright, but one has to be careful with overpaying for such growth especially since its revenues are contractual in nature.

With that, I am now not vested in any equities. I will be taking some time off to reflect on the past 3 years, and look forward to restarting my portfolio in the near future again. The Best is Yet to Be!