What Have We Done This Month Towards Our Financial Goals – April 2020

So April has came and gone now. 33% of 2020 is now over.

For the whole of April, both Mrs Budget and myself had been mostly staying at home due to the circuit breaker.

While everyone else is doing a monthly portfolio update, we thought it is more meaningful to document what we have done this month towards our financial goals.

Mr Budget
Position Added: SPH REIT, Centurion, Alphabet
Take Profit: Fu Yu, Accordia Golf Trust, Keppel Infrastructure Trust

Mrs Budget
Position Added: SPH REIT, Centurion, Alphabet 
Take Profit: N/A

This month, we bought into 3 counters, namely SPH REIT, Centurion and Alphabet.

For SPH REIT, we believe that the Reit, which is trading below its NAV, may reward its unit holders in the long run due to several reasons – exposure into students accommodation and SPH is slowly realising that it is morphing into a property player. 

Similarly for Centurion, while it may be in the news now for not so good reasons, the counter is still undervalued, and once COVID is over, the price may go up again due to its defensive accommodation nature.

We previously sold off Centurion and bought back in straight after to lower down our entry price further. We spoke about SPH REIT and Centurion in our previous update 2 weeks ago too.

For Alphabet, we have been eyeing this counter for a while now – the parent company of Google is probably the dominant player in the online advertising space, and with its recent battered down share price, we took a position in Alphabet which we will keep for very very long.

To replenish our war chest further, Mr Budget sold off his holdings in Fu Yu, Accordia Golf Trust, and Keppel Infrastructure Trust. To be honest, the selling off are all speculative play, as we foresee the prices to drop further in the next few months. If the price level fall back to lower than our entry price, we will pick them up again for cold storage. 

So the equity purchase movement this month is really just a recycling of our existing holdings into new counters which are trading at below NAV, and these stock purchases are funded by the selling off of 3 existing share counters.

There were some positions which Mr Budget sold off last month which he deeply regretted now: his positions in Amazon, SE, as well as AXXN – all of which he entered at excellent prices and are all now back to their all time high.

The market is really irrational and are not reacting to all the negative news in the economy, so hopefully the prices will come back down for him to pick them up again.

If it doesnt, it’s a really good lesson for Mr Budget to not let go of winning counters in the future and to just let the winners run. That’s probably one of the many lessons learnt from this market sell down.

The market had also rebounded a fair bit and our positions entered last month (Keppel Pacific Oak +27%, Ascendas India Trust +10%) gave us a decent rebound onto our portfolio value.

Overall, the portfolio of Mr Budget has now broken even, which means everything is at cost to Mr Budget now. What this also means is that we are now back to zero since started investing 2 years ago.

However, we think that the market will continue a slow decline over the next few months, and our view is still that we will see further market correction.

That said, in case we are wrong, we are continuing to invest, cautiously, over the next few months.

Our net worth continue to grow this month, due to contribution from our salary as well as the rebound of stock prices.

Our combined net worth is now at S$650,000, including CPF but excluding our property and mortgage. 

With the various transactions, here’s an update on our war chest:

Mr Budget War ChestS$100,000
Mrs Budget War ChestS$40,000
Mr Budget Home Loan War ChestS$50,000
Mrs Budget Home Loan War ChestS$150,000

As our war chest has been increasing, and our cash position % is getting slightly larger than what we would ideally like, hopefully we are able to deploy our war chest soon. Counters on our watch list:

  1. Ascendas REIT
  2. Keppel DC REIT
  3. IREIT Global
  4. Suntec REIT
  5. SGX
  6. DBS
  7. Mastercard
  8. SEA
  9. Booking
  10. Adobe
  11. Amazon
  12. Square
  13. Facebook
  14. Fu Yu

Stay safe everyone, and happy hunting!

Monthly Tracking

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