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

So May has came and gone now. We are almost at the end at the circuit breaker period which means most of the Singapore economy will start to open up soon.

For the whole of May, 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: SEA, Booking, Lendlease, Syfe
Take Profit: N/A

Mrs Budget
Position Added: Syfe
Take Profit: N/A

This month, Mr Budget bought into 3 counters, and these counters should probably be familiar names here at Mr and Mrs Budget. The first counter is SEA – the counter that Mr Budget sold off in March and now bought in again at a higher price.

 What a stupid move missing out on so much. Although Mr Budget took profit (18%) in March and bought back in earlier 2 weeks ago at a much higher price, the counter is now at a 33% profit in just 2 weeks. The profit would have been +120% if he did not sell his initial position.

SEA is really quite an amazing counter as it is investing in 3 main growth areas – gaming, e-commerce, and fintech.

Rather than waiting for the counter to drop and buy in again, the strategy now is to accumulate whenever there is a price weakness, than risk losing out on the upside. SEA is now part of Mr Budget’s coffee can portfolio too.

The second counter that Mr Budget bought in is Booking – a counter that Mr Budget has mentioned a few times here.

Bookings is the dominant player in the OTA space, and has various strategic holdings such as in Grab, Didi, and Meituan. In the short to medium term, travel won’t go away, and Bookings is probably the most well capitalized company to ride on that rebound.

Our entry price is not the lowest as we wanted to time the market even more, but we realised that the current price may never come back. Hence we entered a small position and will accumulate more if there are any future price weakness. 

The third counter Mr Budget bought in was Lendlease REIT – and this is just to average down on our initial purchase.

The good news is that with the Circuit breaker ending soon, all retail Reits are staging a rebound in price. The price level in May is probably the last chance for us to average down our holdings

Mrs Budget on the other hand, did not make any purchase as she is looking to build up her cash position. However, both Mr and Mrs Budget did continue our monthly contribution to our roboadvisor Syfe. 

The market had also rebounded a fair bit and our positions entered during the circuit breaker gave us a decent rebound onto our portfolio value:

AIMS AMP+20%
Capitamall Trust+15%
Ascendas India Trust+24%
Keppel Pacific Oak US REIT+43%
Lendlease REIT+19%
Alphabet+25%
SEA+33%

We are slowly thinking and accepting that this is a V shape recovery, although we are still quite reluctant to accept that.

Stock market seems very disjointed with what is happening with the economy. We would have deployed more of our war chest if we truly believe that this is a V shape recovery.

But on hindsight, the government has really helped stabilize the economy by a fair bit – with the GDP forecasted to fall up to -7% this year, the 4 budget announced by the finance minister totalling up to 20% of last year’s GDP can more than cushion the impact of the GDP loss this year.

In any case, we are quite happy with our purchases past few weeks, and if there are any price weaknesses in the counters that we are eyeing, we are happy to pick up more purchases along the way.

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$690,000, including CPF but excluding our property and mortgage. This is up from S$650,000 last month.

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

Mr Budget War ChestS$95,000
Mrs Budget War ChestS$40,000
Mr Budget Home Loan War Chest (pending)S$50,000
Mrs Budget Home Loan War Chest (pending)S$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. SGX
  5. DBS
  6. Mastercard
  7. SEA (bought)
  8. Booking (bought)
  9. Adobe
  10. Amazon
  11. Square
  12. Facebook

Stay safe everyone, and happy hunting! We’d be happy to also hear your recent purchases too so that we can keep an eye on them too.

Monthly Tracking

Looking to invest via Syfe? You can use our referral code: SRP6X8B8Y when you create an account.

We would both get $10 to $100 depending on your first deposit amount, and you’d receive your bonus within 5 business days.

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