What I did with my new found wealth (2011)
2011 was a tough year for my investment portfolio. The stock market was hit by the Tsunami in the first quarter and the Euro Zone problem in the second half of the year. At the start of the year, my fixed income was yielding more than 20K per month and I decided to venture more into equities to diversify my portfolio.
With my main focus on building up my passive income, I decided to buy into REITS listed in Singapore. Some of the REITS and equities that I accumulated are as follow:
REITS
1. Areits
2. Ascott Residence Trust
3. Mapletree Ind Trust
4. Cache Logistic Trust
5. Mapletree Log Trust
6. CDL Hospitality Trust
7. Suntec Reits
8. K-Green
9. Mapletree Commercial Trust
Dividend Stock
1. Singpost
2. Sats Airport
When the Tsunami struck in March, my equities portfolio suffered a lost of about 300K and I was wondering if my equities investment strategy was a mistake. Luckily, I stood my ground and the stock market fully recovered by end April. Gaining more confident in my stocks choice, I began accumulating even more equities. This wrong sense of confidence cost me dearly when the stock market dipped in August. The period from August to October was the most painful period of my life. I had never lost so much money in my life and it really hurt. I applied the same strategy of not cutting lost until October.
In October, I attended a market outlook seminar organized by one of my bankers and they were predicting a further slide of about 20% to 30% by the end of the first quarter in 2012. At that time, I had researched intensively on the Euro zone problems and arrived at the same conclusion that the Greek will eventually default. Thus I sold more than 50% of my equities on strength in late October. I was relieved when the market dipped again as predicted in the last quarter.
Still nursing my wounds, I decided to focus more into bonds again. By the end of December 2011, I had added the following bonds to my fixed income portfolio:
1. Guccoland, 3yrs, 4%
2. Cheung Kond Bond, perpetual, 5.13%
3. Banyan Tree, 3 yrs, 5.5%
4. Ascott Reits MTN, 4 yrs, 3.8%
5. DBS Pref Share, Perpetual, 4.7% (secondary market)
6. GLP Perpetual, 5.5%
When the year came to a end, I was more at peace with my investment portfolio. I decided to count my loses for the year 2011. At the end of the year, I was back to square one. I broke even! How is this possible? My equities portfolio was about 12% in the red. When I counted all my dividends from the fixed incomes and equities, I was able to break even with a tiny little profit!
At the end of 2011, I think I understood the meaning of diversification. My whole portfolio consist of properties, equities and fixed incomes. 2011 was a lousy year for equities but my fixed income and properties did quite well and more than make up my lost in equities. My average passive income for 2011 was more than 40K per month.
In 2012, I hope to achieve a passive income of 50K per month.
With my main focus on building up my passive income, I decided to buy into REITS listed in Singapore. Some of the REITS and equities that I accumulated are as follow:
REITS
1. Areits
2. Ascott Residence Trust
3. Mapletree Ind Trust
4. Cache Logistic Trust
5. Mapletree Log Trust
6. CDL Hospitality Trust
7. Suntec Reits
8. K-Green
9. Mapletree Commercial Trust
Dividend Stock
1. Singpost
2. Sats Airport
When the Tsunami struck in March, my equities portfolio suffered a lost of about 300K and I was wondering if my equities investment strategy was a mistake. Luckily, I stood my ground and the stock market fully recovered by end April. Gaining more confident in my stocks choice, I began accumulating even more equities. This wrong sense of confidence cost me dearly when the stock market dipped in August. The period from August to October was the most painful period of my life. I had never lost so much money in my life and it really hurt. I applied the same strategy of not cutting lost until October.
In October, I attended a market outlook seminar organized by one of my bankers and they were predicting a further slide of about 20% to 30% by the end of the first quarter in 2012. At that time, I had researched intensively on the Euro zone problems and arrived at the same conclusion that the Greek will eventually default. Thus I sold more than 50% of my equities on strength in late October. I was relieved when the market dipped again as predicted in the last quarter.
Still nursing my wounds, I decided to focus more into bonds again. By the end of December 2011, I had added the following bonds to my fixed income portfolio:
1. Guccoland, 3yrs, 4%
2. Cheung Kond Bond, perpetual, 5.13%
3. Banyan Tree, 3 yrs, 5.5%
4. Ascott Reits MTN, 4 yrs, 3.8%
5. DBS Pref Share, Perpetual, 4.7% (secondary market)
6. GLP Perpetual, 5.5%
When the year came to a end, I was more at peace with my investment portfolio. I decided to count my loses for the year 2011. At the end of the year, I was back to square one. I broke even! How is this possible? My equities portfolio was about 12% in the red. When I counted all my dividends from the fixed incomes and equities, I was able to break even with a tiny little profit!
At the end of 2011, I think I understood the meaning of diversification. My whole portfolio consist of properties, equities and fixed incomes. 2011 was a lousy year for equities but my fixed income and properties did quite well and more than make up my lost in equities. My average passive income for 2011 was more than 40K per month.
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| Portfolio: 2011 |
In 2012, I hope to achieve a passive income of 50K per month.
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