Hi everyone! We are now at the final month of 2020. How’s everyone holding up?
As with our monthly updates, here are what we’ve done in November with regards to our personal finance.
Position Added: Amazon, PayPal, Tesla, Syfe, Bitcoin
Take Profit / Cut Loss: MTQ, OUE Commercial, Keppel Oak REIT, SPH REIT
Position Added: Amazon, PayPal, Syfe, Bitcoin
Take Profit: Keppel Oak REIT, SPH REIT, AIMS AMP, Mapletree NAC Trust
November is probably one of our busiest month this year, where we did a fair bit of portfolio restructuring as mentioned in our recent update.
In accordance to our new investment thesis where we will be moving heavier into US growth stocks allocation, we have taken the opportunity to reduce our Singapore holdings.
For Mr Budget, we cut our losses on MTQ and OUE Commercial, which amount to almost a 40% capital loss even after dividend consideration.
There are two reasons why we cut our losses. The first one is that, for both counters, it would have to grow more than 80% from the current position for us to break even on our cost. It is hard to imagine both the counters recovering 80% from the current price level given the new economic environment.
The second reason is that, there are better opportunities that we can deploy this capital on. We deployed the capital onto US stocks and the capital gain on the US stocks had almost cover the losses on these Singapore counters.
Mrs Budget and I also took profit on Keppel Oak REIT (+40% in 8 months) and SPH REIT (+5% in 7 months) to fund our US stock purchases.
For our new purchases, both Mrs Budget and I added on Amazon and PayPal. Mrs Budget did not add into Tesla as the price was deemed to be too high, but Mr Budget averaged up on his tesla holdings.
We also continued our monthly DCA into our roboadvisor Syfe.
On top of our regular investments, we also took the opportunity to add Bitcoin into our portfolio when the price came down to US$17,000 earlier last week.
Net Worth Updates
Our net worth registered a huge spike this month due to the rally in US stocks.
Our combined net worth is now at S$934,000, including CPF but excluding our property and mortgage. This is up from S$846,000 last month, a change of +S$88,000!
This is a huge monthly change, with more than half of these increase coming from our investment gain. Our US portfolio gained more than S$50,000, with PDD, Tesla, and PayPal making the bulk of it. Our Singapore and crypto portfolio returned about S$20,000 and the rest of the gains are from our employment and CPF, along with other miscellaneous income.
The gain is frankly quite scary because we think that the market is slightly too optimistic now. We expect some pullback in terms of our net worth in this coming few months and are holding out on our cash in hand to take up any pullback opportunities.
When we saw the gain this month, we did a double take on the gain too, as the market returns are way above our active employment income. If our portfolio can consistently generate this kind of return, I’d say we will be very very happy.
And if you have been following updates from other financial bloggers, everyone seems to be enjoying the rewards of the STI index rebound and the US stock rally. A lot of euphoria around.
War Chest Update And Watchlist
With the various transactions, here’s an update on our war chest:
|Mr Budget War Chest||S$60,000|
|Mrs Budget War Chest||S$60,000|
Counters on our watch list:
We have deployed a fair bit of our cash into the US market and to bitcoin, slightly more than what we’ve hoped for. Hence for now, we will probably only be buying stocks only when the pull back comes.
Specifically, we are waiting for the pull back, if any, from the crypto market as well as pull back on Tesla after their SP500 inclusion.
Ideally too, we’d like to also increase our cash holdings as it is now only at S$60,000. Slightly scary that more than half of our net worth is vested in the market now haha.
We’d also like to inform our readers (that’s you!) that moving forward in 2021, we will be introducing new premium content for readers who are interested in more regular updates from us.
We have not firmed up the details yet, but as a premium subscriber of Mr and Mrs Budget, you will have early access to our trades and investments as soon as we make them. There will be a monthly subscription option and a pay per view option, at roughly the cost of a McDelivery meal.
For our normal readers, you will still get a monthly update (like this article) where we note down our investments and trades of the month. We have been doing this since the start of this publication.
However, there are some feedbacks that these updates can be a bit late as we only make an update the following month, after which the counters and stocks would have moved up by 10-20%.
Hence for premium subscriber, you will be informed earlier on our trades as soon as we make them. Normal readers will enjoy all the content as they have been enjoying them all these while and nothing will change. 🙂
We will be giving out some free lifetime premium membership access to our readers when we launch it next month in 2021. Do drop your interest along with your email in the comment section below or simply drop us an email at firstname.lastname@example.org indicating your interest. Eligible readers will be notified via email.
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