Rolf’s Suey Portfolio Thus Far in 2022 and My Advices!

Thus far 2022 has not been as a wonderful year as I have hoped for. Not only did stock market crashed rapidly in just two months, the Russia – Ukraine war is taking away innocent civilian lives.

Aside from dollars and sense, life is still decently good for me as my family are all kept safe and healthy. I am surrounded by many good friends with same interest in sports and leisure. Work wise, travelling is going to start again and market has visibly picked up, amid not as fast as we wanted.

How my portfolio fares and my action?

As of End Feb, my portfolio (excl. Property & CPF & ILPs) is down 17% as I am painstakingly cut losses by selling stocks to hold more cash. My paring down started since a few months back. That said, if I did not sell earlier, the wounds would have been excruciating. So overall I think it is a wise move.

For e.g. I sold one of my biggest holdings, Sea Limited at $280 to realise profits. I further curtailed at $200, before nibbling back at $130-135 and as we speak, I also just added below $100 last night. At $97 now, the stock price has been brutally slashed from the October 2021 peak of $370. Still, Sea’s price is still substantially higher than that of pre-pandemic $40+.

This is how wildly the US stock market can swing. Definitely not for the faint hearted.

My portfolio mix

Added more gold and oil and gas stocks recently. As of end Feb, I am currently holding 42% cash and 14% of precious metals. This 56% of keeps me well asleep at night even during a time of uncertainty and war, and ready to pounce at equities on sale.

From the 44% equities, I am also holding on to 10% of oil and gas stocks.

Still a believer of tech and hedging works

My stock portfolio mix is still very heavy on tech and green stocks. This is a major culprit of the overall portfolio losses. Yet, I am still a believer in their future and intend to buy more at lower pricing if situations allow.

During the bulls, having gold and silver sounds stupid. I was ridiculed for holding the “useless metal”. For me it is more like a hedge.

Now it is beginning to serve it’s purpose. At least not all your portfolio are down in one direction. And you can sell the gains to buy the “dirt cheap” stocks or for emergency even in time of bear.

Don’t let stock movement gets all over in your head

Just one year ago, my stock portfolio is almost all green sitting at very good paper profits. This is also the time when you will hear many naively boasting how share investment is the best and did all the analytics to justify.

How about now? Where are they? Are they still as boastful?

Not overly critical about the egoistic attitude, just clear evident that this is part of growing up.

Of course when my stocks are in green paper gains, I am pleased with my performance but I am also lucid to know that stock movement can be double-edged swords. End of the day, my advice is not to let stock movements get too much into your head. It is definitely not easy and I have known of those who gets depression and health deteriorates as stock market crashed.

Property investment!

Last year I also bought my property. In one year, it is sitting on more than 20% paper gains based on the latest transactions. It sounds nothing fantastic compare to the multi-baggers stock during the bull, but you need to be aware of the absolute value and not just percentage.

20% of S$1.5 million is 300K. 20% of 5 million is 1 million. Less the stamp duties and other taxes for owner-occupied property, it is still greater gain than the typical 100K portfolio who need to go through mood changes, and not “every Sunday” you will hit multi-bagger jackpot.

What’s more in property is you can enjoy bigger space and nicer environment with loved ones! It is after all the place where every day you are in it! Can we stay in your stocks? Can our stock paper gain bring any intangible benefits for your family members? Perhaps only satisfy our own ego? What’s good in property is also there is hardly any room for your itchy fingers to press buy/sell anytime you like, just as in shares. Most of the time the frequent buy/sell in shares is also when you will suffer the most pain and regrets later!

Of course like many things there are flip side because most are leveraging and in situation of recession, may lose income and may force to sell your house. So far, this kind of force sell situation is quite rarely heard among my peers in the last 2 decades though.

Luxury watches!

Lately, I also started to look more at luxury watches and research into it. Both as a lover of watches and also as an investor. Just like self-occupied property, it is a kind of investment that you can enjoy and experience the ownership tangibly. Furthermore, you do not need to endure the adrenalin pumping cyclical movements of stocks or crypto.

The prices of luxury watches such as Patek, Rolex and AP has only been in uptrend and can easily be multi-bagger as well. For e.g. a Hulk Submariner bought a decade back can have price that is 3 – 4x more today. There are many more examples, but like any other investments you need to do your research on the right model. As we speak, I also just added additional Rolex into my possession. Love it!