2021 has started with a BANG and market has continued to rise from 2020 and into the new year.
Since the pandemic, I had changed the way I invest. Basically, I step out of my comfort zone and change the way I invest.
I will say I did well since the change in strategy and I am moving ahead with this strategy into 2021.
The bottom is a new account I open as of Jun 2020 and I have returned over 31% (as of 17 Jan 2021) – which I felt happy about. It is not all beautiful as I did cut losses on some companies I held. But basically, more wins than losses helped me achieved a satisfactory return.
The strategy that I engaged in is shown below. In general, I will invest in a group of Dividend SG Companies that will bring about a stability in my portfolio, while I invest in Growth Companies and Cash-like feature companies in the US.
I deem it as dual engine because:
- I expect US Companies to be volatile but on a long term uptrend.
- SG Companies to provide stability.
- Nevertheless, if SG companies also started to be on a uptrend, then the overall portfolio will rise much faster.
- However, depending on your appetite, you can take a higher risk by allocating more to US companies, or lower risk by allocating more to SG companies. I prefer a 30 (SG) to 70 (US) allocation.
- This assume that I deem SG Companies as lower risk than US companies. This is because I dealt with more SG Companies than US companies throughout the last 10+ years I invested and I know them better.
In 2021, I also had a new rule – no discrimination against methods or companies. This meant that I will be engaged in short term/event driven investment as well if the thesis made sense – Macy and NIO worked well for me in this aspect.
Currently my portfolio has about 20 companies (excluding 5 left-over/no choice/waiting to be sold companies).
Within these 20 companies, there are 7 SG Listed Firms (Which I will be focusing less on):
1. 2 Retail REITs
2. Stable Food Producer that I held for some time.
3. Singtel that I mention at the end of 2020.
4. Wireless Connectivity Product Manufacturer
5. Service Company in the construction sector (Event Driven)
6. Supermarket with a Short-term thesis
The remaining are US firms, which consist of:
1. 3 Cash-like feature companies – GAM.
2. DIS which I went out and in again.
So, what I have are 9 other companies that are not mentioned but I will probably be writing about in the days to come.
Thus, if you are interested, stay tune to the update from Financial Mall.
The above is re-produce from TUBInvesting Blog with some amendments.