2022 started on a high but soon got dragged down over worries of Russia's troop built up at Ukraine border (threat of war) and a more aggressive Federal interest rate hike. Putin finally put his invasion plan into action on 24-Feb-2022 and with it, caused the sharp increase in Crude Oil Price. With Russia's miscalculation of a quick war and facing massive casualty rate, the situation has potentially turned into a prolong War of Attrition, with the Ukrainians putting up a good fight with weapons supplied by NATO and the Americans. Due to Russia-Ukraine war, the food, crop and oil price escalated, potentially halting global GDP growth as the world comes out from the shadow of COVID-19 lockdown, and in the worst case scenario, bringing some countries back into recession again.
Let us spend the next few mins in prayer for the people of Ukraine. May God bless the safety of the Ukrainians. May God in His will stop the Russian act of aggression and bring peace to the land once again. May God also in His mercy provide the displaced people strength and hope in the midst of suffering. Amen.
DJI ended at 34678, an decrease of 1660 points (-4.56%) compared to 4Q 2021. For Singapore, STI ended at 3408, an increase of 285 points (+9.12%) compared to last quarter. Singapore market largely outperform DJI due to the exposure to bank equity counters (DBS, UOB and OCBC accounted for 43.3% of STI weightage), which rises in expectation of increase in Federal interest rate. For this quarter, not much actions from me except taking the opportunity to accumulate more shares during the correction period for potentially good companies with room for growth:
Transaction 1: Bought 1 batch Man Utd shares in January.
Buying at a low price of $14.17, potentially looking to sell off at around $20. Now with the sale of Chelsea looming in the next few weeks, the final bid value could be used as a reference comparison of how much Man Utd is worth. At the minimum, Man Utd should be valued on par with Chelsea, if not more.
Transaction 2: Bought 3 batches Grab shares in January and March.
Investors seem to not have confidence in Grab, dumping its share when it reported its first financial result, which is below estimations due to massive incentives given to their driver and delivery partners during the quarter period. On the other hand. I bought in and average down as I believe Grab should be doing ok once they start monetizing their Ads Platform and start their digital banking operation in 2022. Time will tell if I am right. Anyway, my position in Grab is not big.
Transaction 3: Bought 1 batch Danaher shares in January.
Accumulate good company during the correction period. This counter is a free cash flow generating machine. I believe its share price should shoot up once they start acquiring companies again.
Transaction 4: Bought 1 batch Mapletree Industrial Trust shares in March.
Planning to accumulate and keep MIT shares for the long term as they have a good track record of raising their NAV and DPU.
That is all for now. See you all in Q2 2022 update and thank you for reading thus far.
