Last month was the 8th anniversary of my investing journey. A journey packed with ups and downs. I still remember buying CMT, Suntec & Starhub in 2009 as a wide-eyed beginner, like it was just yesterday. Honestly, this portfolio I have built exceeds way beyond my expectations. It seems like yesterday when I just achieved my $200k milestone ( https://www.nextinsight.net/story-archive-...). Interesting to see how my portfolio has evolved over the last 4 years.
‘Badges’ big and small were earned. Euro debt crisis (PIIGS), Grexit turmoil, U.S. debt ceiling crisis, Arab Spring, Japan's earthquake & subsequent Fukushima nuclear accident, Fed QE Taper Tantrums, Hong Kong ‘Umbrella Movement’, Brexit, Fed rate hikes, Trump election victory, China market crash (still remember the circuit-breakers being triggered on consecutive days), O&G crisis.
Nevertheless, I focused on growing my portfolio & dividend income through all these fears and so-called ‘crises’. All the while, taking those analysts’ and experts’ reports with a spoonful of salt. Things are seldom really bad or really good. As long as we keep earning, saving & investing, the compounding effect will reward us over the long-term.
As 2017 comes to an end, I must say this year is set to be one of the best years for my portfolio’s total returns. Unlike 2016, there was no roller-coaster ride (except the occasional colourful war of words between Trump & Kim). My portfolio grew from 3 contributing factors.
1) Sustained rally in the 3 local banks 2) Unexpected recovery of REITs since the lows of December 2016 3) Fresh injection of capital + re-investment of dividends received
As I am heavily vested in S-REITs and banks, my portfolio outperformed the STI slightly with a time-weighted return of +23.4% in 2017. My best-performing stock would be DBS, almost +60% y-o-y total returns. Worst-performing stock would be RMG with a -21.8% y-o-y decline. As I returned to my roots and started re-building my income portfolio, its size grew steadily from $388k in June to $426k now. Collected $20.7k dividends in total, which translates into $1,725 per month.