|(Total cumulative dividends of S$191, 948)|
Top 12 Holdings (30 Jun 2021)
Portfolio Cost: S$520, 015
Portfolio Market Value: S$745, 963
Portfolio Overall Unrealized Profit: +S$225, 948 (+43.5%)
Portfolio XIRR (FY2021): +18.92%
Dividends Collected (1H 2021): S$14, 881
Current Warchest: S$26, 300
(*All figures are accurate as of 30 Jun 2021)
Portfolio Actions in 2Q 2021:
- Partial divestment of PropNex. Took profit at $1.53
- Accumulated more Alibaba on the Hang Seng exchange
- Initiated positions in AMD and TSMC
- Initiated position in CapitaLand China Trust
- Applied for the Mapletree Industrial Trust preferential offering with excess
Unwavering Focus On Quality Big Tech
It was a hectic quarter for sure! There was a short period of inflation scare back in May when some investors panic sold their tech counters. Covid infection rates have been falling in the US and Europe. More countries are ramping up their nation-wide vaccination campaigns. The jobs recovery in the US has been gaining steam. US president Biden has proposed a massive $2 trillion infrastructure bill. As a result, investors fear the US Fed is considering to hike interest rates earlier in 2023, maybe even in the second half of 2022, in order to prevent hyperinflation. The tech and REIT sectors saw a short-lived sell off. Of course, I took advantage of this to BTFD. Buy in May and stay stay stay! ^^
Since the 1980s, the interest rates have never returned to its previous high after every recession. The rates just kept going lower. Sure, the US Fed might be planning to hike rates in 2023. If 2020 has taught me anything, is that the future has plenty of curveballs in store for us. Before the interest rates can return to the 2019 high of 2.5%, another crisis of some sort will emerge again. Then the US Fed will have no choice but to cut the rates back down to zero. Maybe the flames of the US-China trade war is rekindled? Maybe the covid virus mutates into something deadlier? Nobody knows.
Needless to say, I 'fast hand fast leg' grabbed the opportunity to load up on quality tech stocks. Have a plan and execute it. Alibaba at HK$210 is just too good a deal to pass up on! I have also entered fresh positions in AMD and TSMC. The Industrial Revolution 4.0 is already happening and the pandemic has accelerated the pace of tech adoption. I believe the chip/processor is a critical piece of this revolution. Almost everything important in our lives run on chips these days. Smartphone, laptop, PC, smart TV, refrigerator, coffee machine, smart watch, car, plane, data centre servers etc.
Next, we need the software to operate these chips. So, when it comes to my overall strategy of investing in tech, I focus on hardware, software and infrastructure. Companies like Apple, Microsoft, AMD, TSMC, Tesla are Alibaba are some of the best and largest in Cloud computing, operating systems, productivity software, chip design & production, artificial intelligence, e-commerce, fintech and gaming. Microsoft Windows or Apple Mac OS? We cannot escape! Take your pick. All the laptops, PCs and tablets sold by brands such as Dell, HP, Lenovo, Asus, Acer and Razer come pre-installed with Windows. The MacBook, iMac and iPad come pre-installed with the Mac OS.
Pivoting To 'New Economy' Assets
After hardware and software, another area to focus on would the infrastructure which enable tech to grow. We have the telcos, cable network companies and data centres. Data is known as the new 'oil'. I am glad Ascendas REIT and Mapletree Industrial Trust (MINT) continue to pivot towards data centres. Whenever they raise funds to acquire more new economy assets such as data centres and logistics warehouses, I would happily oblige. It is the same reason why I entered CLCT as its REIT manager has stated that they are looking to acquire more business parks, logistics facilities and data centre in China.
Some Singapore investors claimed that we must diversify into foreign stocks to get more growth from overseas markets. But actually one can collect rental income from US, Europe, Australia and China by simply investing in AREIT, MINT and CLCT.
Tech Is The Great Engine Of Change
Dividend Tech Warrior