Investment

Portfolio Update – Mid 21

Disclaimer: This is not an investment advice. I am not a CFP by training so I do not recommend an investment, do not sell products, and are not affiliated with any of the financial tools providers.

Kinda bad timing, all of this, seeing as lock-down put thousands of families into financial hardship. So yes, it’s okay to pause on funding retirement, it’s okay to dig into the saving funds, it’s okay to drag the loan repayment. It’s not my intention to add any financial stress to you. Please reach out for help if you are.

Background

I lost my work increment and bonus last year and this year. But I am fortunate to still have my job now and the basic pay is sustaining my expenses. I can halt savings but I am not going to let the #kerajanaangagal ruin my life without a fight. My school teacher taught me that as a non-Bumi rakyat, my only chance to minimize the impact of bad governance is to be financially independent. And sadly, it’s extremely true for all rakyat today.

On financial planning, I handle my investment manually to reach FI latest by age 45 (I use this calculator). This means I actively save and spent the weekend reading personal finance books, news, and blogs. I also join some investment groups to hear their views on the market.

Due to the nature of my job, and now the pandemic, I keep a high level of emergency funds to sustain a bare lifestyle. The remaining is invested in old-school dividend-paying blue chips, Global ETFs, and bonds. There are no speculation funds, although I recently join the crypto babes. I also pay a minimal but comprehensive insurance policy. I have no dependents, so I could buy everything at the lowest coverage tier (against the insurance agent recommendation). Bronze instead of Platinum.

Update of portfolio ( the previous post here)

Portfolio-wise, I definitely improved the allocation from the house of conservative (cash hoarding) towards actual investment. I don’t measure the overall returns, it’s all too depressing for me to think about a decade of missed opportunities. I hope that time is still my friend.

The fiasco of Serba Dynamic makes me think twice about value investing. Quite often, a company with solid business falls from grace after few years due to bad management. It reminds me of what Munger and Buffett said: All the early business failed but we made so much out of it. There must be an exit plan when we invest.

Unlike most people, I don’t track EPF as part of my portfolio. Nevertheless, I have been more active in handling EPF funds this year, from withdrawing to investing the unit trust provided. I have invested rather heavily in Public Bank Global Select Fund as I like the high average return over 10 years. I also love the list of equity that the fund is holding. Is it unwise to invest in this all-time high market?

Dividend returns

Received a total of RM3257 from Brusa between Jan-Jun 2021. That’s an average of RM 542 a month, excluding dividend reinvestment.

The portfolio’s latest addition is SCIENTEX. I have been following this company since early 2018 but my fear of investment in a not-known name has only lead to opportunity loss.

Also increase a few shares in TNB at RM9.8, not that they have superior management but it’s a monopoly cash cow.

Starting on crypto for DeFi

A completely different kind of “investment”. What if I wake up to a world where everyone on earth wants to use crypto but not a government-printed currency? Funding RM1000 into this fund.

International equity

Every day, the changes in our cabinet policy encourage me to invest in international equity. I use StashAway to reach the global markets (22-30% risk factor). I have also an exact copy of the Stashaway portfolio in EToro. EToro is easy and awesome to use. However, Etoro’s deposit and withdrawal policy change very frequently. I wonder if I will be able to safely withdraw the funds.

Here are some of the newly added equity in my international portfolio. My investment in this is very small. At USD 50-100 each.

  • Travel play: Delta Air & Norwegian Cruise
  • Cloud computing and technology play: ADT, Google, DXC, Baidu

Goals for second half of 2021

  • Save up for RM3000 PRS investment
  • Higher monthly average dividends
  • Find a new passive income source or a better-paying job.

Leave a Reply

Your email address will not be published. Required fields are marked *