Reflection for 2020 and Equity Portfolio Updates (31 Dec 20)

1. Friend of StocksCafe

I finally decided to subscribe to become a "friend" of StocksCafe and gave up on my attempt to track dividends manually on Excel spreadsheet which is causing too much grief over the years. Time to fall in along with modern times. It turns out that StocksCafe is extremely easy to use and allows one to keep many different portfolios. The dividends feature also ease the mammoth effort to track it manually as well as give a projected dividend forecast for the next 12 months in it.

While StocksCafe allows data import, I decided to take the easy way out for this migration and just key all equities at the high level by assigning an average cost as the first transaction for the respective purchases. So effectively from 1 January 2021, my profit and losses with dividends will be tracked on board by StocksCafe.  

Highly recommended to all as the more I use it the more I love it. Thanks Dr Evan Koh for starting StocksCafe and sharing the intellectual work for this great site/App. 

2. Purpose of posting Portfolio updates is more for own references as well as sharing.

Sometimes, I find it easier to refer back to the internet for summary snippets of my historical portfolios especially during lunch break or travelling on the public transport rather than booting up my laptop to access the information. Hence the information is more tailored for my own reference. I have no intention to show the detailed profit and loss for each of my own holdings as I think it is overall meaningless given my main investment philosophy is to hold long term and have sustainable passive income from dividends - please also refer to pt 3 below.

3. Weird that folks on HardwareZone Forum are criticizing bloggers using Margin Financing

One day, I was looking through my blog statistics and surprised to see a surge in traffic from HardwareZone forum. It turns out that some folks are bashing bloggers who are using margin financing and as a matter of fact, passing condescending remarks in their posts.  

First and foremost, I am sure everyone knows that using leverage is a double edged sword. For me, I remain mostly invested throughout the March'20 market crash COVID mayhem- I do not own a magic crystal ball unlike the folks on HardwareZone forum who can time the market perfectly and then proudly proclaiming that bloggers with margin financing are unable to take advantage of the March'20 low. But I did deploy and divert additional cash into the market during Feb'20 to June'20 period as well as did partial sell off to buy into blue chip banking stocks and other stronger REIT such as Mapletree Commercial Trust. I see another 20%-30% upsides over my existing portfolios over the medium term once the market recovery plays out. 

For those who are not comfortable with the use of leverage, then simply stay far far away from it. For those who wanted to know more, then I will personally recommend the Early Retirement Masterclass by Christopher Ng. 2 years back, I attended a seminar by Chris. Employment of leverage is not a gamble as many folks on HardwareZone believes. Chris's methodology has been backed up with back-testing and personally tested during the 2008 GFC and he is constantly refining his techniques and system. In fact, one of the very intellectual and smartest people I have ever met. I say it and I say again, if you think that leverage is akin to "playing with Russian roulette", then just stay away from it- there is no need to be very upset at what others are doing. 

4. Eagle Hospitality Trust- Saga continues and no progress.

This is one of my worst investments to date. Apparently, there were already unpaid local taxes issue even before the IPO. Coupled with fraudulent authorization by non-executive directors to pick up liabilities on behalf of lessee that were unauthorized by the Board of Directors and also wasted lead time by the 2 main ex-directors locking in a special deal with only 1 potential rescuer in the initial stage (not open to public for tender of proposal), there is just too much conflict of interest by these 2 ex-directors who owns the REIT Manager. The breaches of the Securities and Future Act also lead to the eventual removal of the REIT Manager by MAS.

After the last EGM on 30 December 2020, it is back to square one for stapled securities owners of Eagle Hospitality Trust. I can understand the frustration of all owners....but rationality needs to prevail. Either choose to resume operations with a new REIT Manager or liquidate.  But to choose neither is very strange indeed.

Please see: "Results of EGM Of Eagle Hospitality Trust- Disastrous EGM and Back To Square One"

5. Sold off most of my equity holdings in Suntec REIT

I have sold off most of my holdings in both cash and margin portfolios for Suntec REIT (average cost around S$1.17 per unit) and retained only a small stake of 3,000 units for diversification purpose & future upsides. I am worried over the office rental reversion for Singapore office as well as the convention centre MICE businesses. The retail component is also inextricably intertwined with the office and MICE traffic. 

The main difference between Singapore and US commercial offices is that US has already adopted work from home a decade back whereas the many bosses of Singapore Companies only realized through this COVID period that their workers can still meet deliverables from home and this represented cost savings in hefty office space rental in commercial buildings. As I am already building up stakes in CapitaLand Integrated Commercial Trust (CICT), I decided to pare my stake down in Suntec REIT. 

6. New REITs purchased in December 2020.

Added United Hamsphire US REIT for its tenants that deals mostly with groceries and has long WALE as well as Manulife US REIT which has proven itself resilient in the face of COVID in US.

Parting thoughts:

Well, that's all the updates and thoughts for now. HAppy New Year folks! Best wishes for the new year and good health always to all!