2017 has been a good year for the stock portfolio returning a 37.69% increase in its value through capital appreciation and dividends received.
At 37+% returns, it is the best so far in this short stocks investment journey since July 2013, the CAGR for 3 years since 2015 stand at 16.59%, 2013 and 2014 was not included as all the formal calculation started from 2015. 2013 and 2014 was -0.1% and 28.29% respectively.
I started stocks investing in July 2013 buying REITS and changing to value investing towards the end of the year.
2014 was also a good year, with Lantrovision, PNE industries, Spindex and TSH leading the way. There were a lot of buying and selling as i slowly started to figure out my investment style through the silly mistakes made throughout the year.
Slowly through 2015 and 2016, the buying and selling slowed down significantly, as value investing is mainly buy and hold with a good safety margin, as long as the business fundamentals remain, i will continue to hold, and when the price continue to drop, opportunities arise for me to scoop more up, lowering the average buying price.
In 2017, Sunright was the biggest winner for us, followed by Multi-chem, both of them contributed 71.6% of the overall profits! Each taking up about 20% of the portfolio.
3 sales were made, Tiong seng was sold off at 0.375 with a good profits since purchased in 2015. Captii and AP Oil were brought and sold with a slight profit in 2017, only time will tell if the decision to sell it off is a good or bad one.
I ended the year with 20% of the portfolio in cash, which is more or less an ideal amount for a value investor. With new capital injected in 2018, i will be looking hard into the local stock market to see if i can spot any value stock.
The past few screenings with Google and FT has resulted in no stock shortlisted, the monthly article(The Cheapest Stocks in the Singapore Market Currently) by fool.sg offers some good suggestion too, as the screening by S&P Global Market Intelligence is better than the free ones i used.
I am using the NAV method to track the portfolio returns, which is really great, i can easily keep track of individual portion of the portfolio, as i am investing for my family as well, so units are issued whenever capital are injected into the portfolio, capital injected and withdrawals does not affects the returns of the portfolio.
This year, funds was withdrew for the family holiday to Taipei, which is something that i will be implementing moving forward, to reward ourselves every now and then throughout the whole investment journey, i find it mentally enriching and motivating as well, as the investment journey can be mundane, and with proper balancing, the portfolio can continue to grow well while profits can be set aside for family activities and expenditures.
It seems like the local stock market are getting more expensive, and as the cash on hand in the portfolio increases, do i look overseas, invest into growth stocks, loosening the safety margin, or perhaps it is a tell tale sign of something else.
One thing for sure, i will continue to stay invested as always.
Wishing everyone a happy new year and may 2018 be a good year for all of us.