In the past few months, I continued to increase the percentage of my shares in my overall portfolio. In April, I wrote in my blog post Rolf’s Updates – My Priorities in Life – Health, Finance, Family, Friends & Hobbies – 2020 1Q , that excluding properties and CPF and jewelleries; I had 51% Cash, 28% metals, 15% shares, 5% bonds, 1% crypto. Currently, my portfolio as follows.
Basically 3 categories:
· Cash + Bond – 37%
· Shares – 36%
· Gold, Silver and Crypto – 27%
The strategy of these 3 categories is to have flexibility to withstand all periods of the market situation. For e.g. if there is stock market crash, I assume the precious metals pricing will rise. I can then profit from the sale precious metals and use the proceeds to buy the cheaper stocks. If the stock market peak, precious metals will be unloved and I will sell my shares to accumulate more of it. I also have sufficient cash to keep on accumulating cheaper shares or other assets if relevant. Also, I am a believer of cryptocurrency but I keep the percentage low to minimize risk. If prices of crypto crash, I will accumulate more of it too.
I keep a huge percentage of cash and easily liquid-able bonds. It sounds really silly as cash gives very low or no returns. But frankly, it is not the case for me, as I derive say two or more percentage of return. My OCBC365 savings account provides more than 2% return of interest with my salary, bills, spending tagging to it. My bonds are all more than 2.5% return on average.
But the bigger factor of my larger cash holdings is due my individual household situation. I have a huge household of 4 studying children with huge expenses. Aside from my own family, every month we also support my parents-in-law, my domestic helper, 4 adopted World Vision children and pastoral families in poorer countries.
My relative base is huge, and there are lots of commitments in weddings and events which requires “red packet”. My aunties, uncles and cousins are generally less financially sound too, and each time when there are gatherings, I will slot money into their pockets. Now, with my wife resigned, the burden each month for me is even bigger.
Lastly, my accumulated cash can also be use to pay down my lumpsum of my mortgage every two years when I re-financed my loan.
During the next one year or so, I will continue to accumulate shares regularly. If there is another crash, I am also well-positioned utilize the sale proceeds of my precious metals and cash to take advantage of the cheaper shares.
My strategy for shares is to hold for long term for now. In my earlier years of investments and even recently, I always took profit too early even when the company fundamental is still sound. I had learnt my lesson and will not do that anymore.
Invest in US and HK stocks
In the past, I am only fixated to Singapore stocks. This pandemic opened my eyes that I need to buy growth stocks in USA and HK. I also explained in my earlier article : Why STI Index investing is not as lucrative, and long term future is not bright?
Categories of Stocks
Growth Stocks – I am bullish on Tech and Data stocks and China. I firmly believed they are the future. Despite their high prices now, I think they have more room for further growth. Will continue to add.
Unloved Stocks – I bought Tripadvisor for this reason and will continue to find and put other stocks in this category.
Dividends Stocks – Will continue to accumulate SG REITs or dividend stocks into my basket.
Energy Stocks – I think that they are cheap now, and will continue to add, when relevant.