Monday, January 23, 2017

New Investment Strategy 2017 - Growing Passive Income

I have come a long way since I first started investing in SG equity in 2008. With capital injection, my portfolio has grown to an amount where I think it is time to change strategy to focus on generating passive income. In the past, I am more of a risk taker, investing in companies where I think is under valued and have potential to grow. As of now, I can't really afford the time like I did in the past to study through the company financial report and decide how much capital to put into the company. Hence, starting in 2017, I have decided to adopt a medium risk approach to focus on growing passive income by re-balancing my portfolio as below:

  1. 50% Equity, 50% Reits/Trusts
  2. Portfolio Yield to be 1.50% in 2017, 2.50% in 2018, 3.75% in 2019.

The ultimate aim is to grow the passive income to a size where the dividend received can partly be re-invested into the portfolio and hence grow more dividend, making the portfolio self sustainable and return back the cash initially injected into the equities.

I have my shares of ups and down. From Noble Group boom in 2009 to JB Food spike because of Sam Goi investment, to Straits Asia Resources privatization, to making a wrong call on Linc Energy which is currently suspended and undergoing liquidation, to NBG being delisted from NYSE due to Greek political issues. Along the way, some hard lessons are also learnt which I think makes me a wiser investor going forward.

At the end of 2016, my portfolio is as below:

Equity consists of 91.76%, while Reits/Trusts consists of 8.24%.
Yield is at a miserable 0.76%.

2016 is not really a good year for me as I took the pain to dispose some of the junk stocks in my portfolio (bought in the earlier years) to raise cash for the rights that are proposed for some of the Reits/Trusts. That leave Linc Energy as the final junk that I will need to deal with later. For STI wise, 2016 ending was flat compared with 2015 ending, seeing not much action while US Dow Jones was reaching record high. Lets hope that SG STI can perform better in 2017. May the Lord also continue guiding me in making wise investment.

I shall update more when I have the time after I had done the re-balancing transactions. Chaos

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