Hi everyone! Happy new year again and hopefully 2021 has been a great start to you!
As with our monthly updates, here are what we’ve done in December 2020 with regards to our personal finance.
Position Added: Razer, Unity, Palantir, Airbnb, ARKG, Syfe
Take Profit / Cut Loss: DBS, AIMS, Frasers Commercial Trust, Capita Retail China Trust, Bookings.
Position Added: Unity, Palantir, Airbnb, ARKG, Salesforce, Baba, Syfe
Take Profit: DBS
December is another busy month for us, and we continued to restructure our portfolio towards more US growth stocks. This represents the biggest portfolio restructuring that we have done in our investment journey where there was a six figure total transactions across our portfolio.
For Mr Budget, we averaged up on Razer and initiated a position on Unity to ride on the future gaming space boom. As we also previously mentioned, we had taken part in Airbnb’s IPO offering. To fund the Airbnb stock purchase, Mr Budget took profit on his position on Bookings, which returned him +25% since his investment in May this year.
Mr and Mrs Budget both also invested in Palantir and ARKG as we previously highlighted in our recent updates.
Here are some reasons behind the purchase of our stocks in December:
|Stocks||Reasons of Purchase|
|Razer||Gaming set to grow 12-15% over next 5 years. Razer looking into fintech space + moving into software and service space|
|Unity||Gaming set to grow 12-15% over next 5 years. Unity is a game engine for developers – similar to how Google doc is to a writer and excel is to a finance manager.|
|Palantir||Palantir’s CEO: “our technology is 5 years ahead of everyone else”.|
|Airbnb||Circulating our travel allocation from Bookings to Airbnb. Airbnb is a strong covid recovery stock.|
|ARKG||Cathie Wood: “The next amazons will be from the genomic space”. It is also hard for us to individually invest into genomic companies so we chose an ETF.|
|Baba||Price level dropped to a year ago / pre covid levels. BABA is still growing at a tremendous clip.|
We also continued our monthly DCA into Syfe.
We have funded most of our US stock purchases by selling our Singapore holdings. Mrs Budget funded her US stocks via her home equity loan. Mr Budget had closed his positions in DBS, AIMS AMP, Frasers Commercial Trust and Capita Retail China Trust.
Net Worth Updates
Our net worth continued to reach its all time high as we saw the US stocks continue to rally. On top of that, we have also see a resurgence in our ETH value as well as some returns from our bitcoin investment a month ago.
Our combined net worth is now at $988,000, including CPF but excluding our property and mortgage. This is up from S$934,000 last month, a change of +S$54,000!
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$20,000, with PDD, Tesla, Crowdstrike, SE 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.
What we have realized the last 2 months is that, you really need to give time to your stock counters and holdings to mature and provide you with strong returns. While we have made a lot of purchases last few months, all of them will be in cold storage and we will only sell them when the growth slows down or when the fundamental changes.
We also 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.
War Chest Update And Watchlist
With the various transactions, here’s an update on our war chest:
|Mr Budget War Chest||S$20,000|
|Mrs Budget War Chest||S$10,000|
We have deployed most of our cash into the US market and into crypto, slightly more than what we’ve originally planned. Hence for now, we will probably only be buying stocks only when the pull back of 10-15% comes. We will also likely not be initiating any new positions on new counters unless they are very compelling, as further diversification will result in non-meaningful positions and non meaningful returns.
To also increase our cash holdings, we will also be selling our Singapore stocks. That’s because our cash level has dipped below our comfortable threshold.
New Discord Channel
For our readers, we have mentioned that we will be introducing premium features this year. For now, what we have done is that we have created a new discord channel where we are posting our live trades, and host various discussions on stocks and finances.
Over the past few days, we have started inviting some of our readers in and have had some great discussions on personal finance. For now, the channel will be free to join, but we may limit access to it in the long run. We are also trying to invite other investors who are focusing on growth investing so that we have more vibrant discussion.
So if you are interested to be updated on our active trades, and to say hi to Mr Budget and just talk with us, you can join the channel here. 🙂 Come say hi to us there!
And happy new year again!