Hello everyone! Its the end of yet another month, and hopefully January has been great for everyone!
As with our monthly updates, here are what we’ve done in January 2021 with regards to our personal finance.
Position Added: Tesla, Bitcoin, Ether
Take Profit / Cut Loss: Adobe, Airbnb, Mapletree NAC Trust, Capitamall trust, Ascendas I trust, Prime US REIT
Position Added: Bitcoin, Ether
Take Profit / Cut Lost: Nikko AM, Keppel Corp, ComfortDelgro, Capitamall trust, Ascendas I trust, Prime US REIT, Airbnb, Amazon
In early January, just a few days after the year started, we did a final repositioning and concentration on our portfolio before going on a stock diet.
For both Mrs Budget and myself, we trim down further our holdings to raise funds to put into higher conviction future stocks that we have.
We took the opportunity to take profit on our Singapore stocks which we managed to pick up in the middle of COVID-19 which has now rallied – CapitalMall Trust, Ascendas India Trust, Prime US REIT.
We also reallocated some funds away from our existing positions in Airbnb, Adobe and Amazon. This is in line with what we mentioned in our December update, that we will be selling away our Singapore stocks to raise our cash position.
With the funds raised, we doubled down on our crypto holdings, both bitcoin and ether, as well as averaging into Tesla. As a result, our portfolio is even more concentrated now and it is easier for us to track all the stocks that we are holding.
While we have sold off a lot of darling stocks that we are holding, such as CMT, AIT, Airbnb, it is not that those are bad stocks – it is just that we have higher conviction on the Tesla and crypto thesis, and that the future potential rewards for holding these stocks are much higher.
For Tesla, in its recent earning call, Elon seemed to be very confident about its full self driving capability, and once they achieve that, their stock price will probably skyrocket again, and it really seems like Tesla is a category winner in the EV software space.
Ken or Chicken Genius did a recent video just yesterday and it is definitely worth a quick watch:
For crypto, the longer the coins survive, the lesser the perceived risk investors have – and in fact, more and more funds are joining in. I think we are just scratching the surface of the potential of crypto in the future and there are even more legitimate use cases and adoption right now.
We may probably do a separate article on crypto and the signs that it is here to stay.
In 2021, we have stopped our DCA into Syfe temporarily as we try to raise more funds to increase our cash reserve.
Mrs Budget also took the opportunity to top up her CPF as our annual habit, while Mr Budget is holding that off for the moment due to lower cash % in hand. If you have some spare cash, do consider topping up your CPF!
Net Worth Updates
Similar as last month, our net worth continued to reach its all time high as we saw the US stocks and crypto continue to rally before pulling back a bit towards the end of the month.
Our combined net worth is now at $1,070,000, including CPF but excluding our property and mortgage. This is up from S$988,000 last month, a change of +S$82,000!
That means we’ve officially crossed the S$1,000,000 joint net worth mark! The next goal is definitely to cross the individual one million dollar mark!
This is a huge monthly change, again with more than half of these increase coming from our investment gain. Our US portfolio gained more than S$30,000, with SE, Tesla, Fastly, Palantir making the bulk of it. Our crypto holding also returned gained about S$20,000 and the rest of the gains are from our employment and CPF, along with other miscellaneous income.
As we regularly mentioned, these are all paper gains and we expect some pullback in terms of our net worth in this coming few months as volatility in the market builds up.
We are in the midst of building up our cash in hand, though that is a bit challenging now as we have upcoming expenses. The ideal case for us is that US market continue to rally for another 3-6 months while we build up our cash savings, and then we deploy it in quarter three.
February 2021 Outlook
For the month of February, we probably wont be making any further changes to our portfolio. We are done selling off the counters that we were holding on. What’s left now is our high conviction stocks. For stock purchases, we are keeping a close lookout for any buying opportunities for Tesla as Mrs Budget looks to initiate her position on the stock.
We have funded our crypto wallet with some capital to buy more bitcoin and ether should it fall to our price target. If it doesnt, then it will just sit that until the price movement breaks away from the current sideway movement.
Otherwise February will likely be a month with not much investing.
Mr Budget also bought an expensive watch for himself as a gift, his first ever watch purchase. This is after much painful consideration as he realized that he is actually no longer young but entering a middle age. There are various milestones also which coincide with this purchase – one of which is that he recently managed to convert his Malaysia license to a Singapore one.
Hence his cash level is almost at a 2 years low. Not so budget after all. Maybe it’s time to get a new domain name. Mr Spendthrift?
Also in case you miss our last article, POEMS has an ongoing promotion which allows you to purchase US stocks (trades under USD2000) at zero fees! You should definitely check it out. 🙂