Friday, December 23, 2016

How much have I earned and lost in 2016?

How much have I earned and lost in 2015?

My objective for 2016 was to aim for a $10,000 of investment and interest income, with $12,000 being stretch target. Unfortunately, I did not hit my target. Income for the year was $9,700 but I also netted a loss of $2,100, which means my nett is $7,600. I realised losses because I decided to cut loss for 1 stock.

One of the biggest mistakes in 2015 was probably betting big on Keppel Corp, 75% of my portfolio then. I really liked the property assets they hold, so I bought a lot. I will remember this lesson for the next few years of my life -- never bet big big because I don't have the luck. I had to start looking at stocks that paid 6-10% yield to cover the shortfall from Keppel Corp, and had to keep diversifying my purchases (which could be a blessing in disguise). Keppel Corp now forms 30% of my portfolio and I had promised myself not to buy anymore of it no matter how tempting, and work towards doubling my portfolio size by end 2020 to reduce Keppel Corp to 15% of portfolio.

Excluding Keppel, my capital gain is +11.5%, excluding dividends, and I would have beat the market.

Including Keppel, my capital gain is -9%. Portfolio capital gain + dividends is -2%, so I didn't beat the market because of my big big bet on Keppel.

I sold my shares in Sembcorp Industries (profit), Keppel TT (profit) and Tiong Seng (loss).

The overall dividend yield with respect to capital is 5.2%, and 6.2% if I exclude Keppel, which means I met my 5% target. I probably will never hit 7% with Keppel forming 30% of my portfolio yielding just 3.5%.

Objective for 2017: Maintain existing portfolio and receive $10,000.
Stock to cash (exclude emergency funds) allocation ratio: 50:50.


Learn -> Earn -> Save -> Invest

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