Portfolio Performance in 2017

2017 will be over soon! I hope everyone manages to meet their 2017 new year resolution if not you have about 2 weeks to do so :)

I believe we will not be buying/selling any more stocks as the year ends so let's take a look at how our portfolio did for the year of 2017.

The overall performance of our portfolio since 2014 is 8.98% (time-weighted return) and 9.60% (XIRR). Yay! We are easily contented, our return is positive and higher than bank/CPF SA interest :) If you are wondering what is the difference between time-weighted return and XIRR, do read this article by common fund. In short, XIRR takes cash flows into account while time-weighted return does not so the way they are calculated is different.

From the graph, you can tell that we have been consistently underperforming the market (benchmark against STI ETF) so do not follow what we buy/sell for better performance. lol. On a more serious note, I blame it on the first year when I started investing trading/speculating on penny stocks without any financial knowledge and broke Warren Buffett rule number 1 - Never lose money.

These are our time-weighted return, monthly volatility and max downdrawn benchmarked against STI ETF over the years. The year of 2014 was ridiculous -14.17% vs STI ETF 5.69%, can you imagine how much of catch up has to be done? 2015 was the turnaround year where I started reading and learning from books and blogs after paying some expensive tuition fee. We went on to beat the market return for the year of 2015 and 2016! Unfortunately, we could not get a turkey. The time-weighted return for 2017 is 16.02% vs STI ETF 21.46%!

The monthly volatility is pretty close to STI ETF and the lower the better. As our portfolio grows bigger and we grow older, the same percentage represents a larger amount of money. Volatility is not good for the heart. Not too sure how to interpret the max downdrawn but you can refer to this article by Investopedia.

The XIRR for 2017 is 14.85% with a capital flow of $94,428.15! Capital flow is the amount of capital that is being injected or withdrawn from your portfolio where the dividends collected are considered as capital withdrawn. We would usually redeploy the dividends collected back into the market hence the actual capital injection is around $84,000. If you are thinking we can do this because we earn big bucks and get demoralized. Please do not! I would like to say we are just extremely thrifty and without any debts. Our rate of saving/investing is at 70-90% of our salary for this year. Both of us are still staying with our parents and they are still feeding us. lol. How much can an accountant (4 years experience) and an IT guy (2 years experience) earn? There is a reason why I am called Kiam Pok Ong (KPO) which meant stingy in hokkien, not K-PO/kaypoh (busybody) which I suspect some readers think that way.

Our portfolio gave us a total dividend of $10,950.63 at an average yield of 4.47%. That is $912.55 passive income per month! The dividends received in 2016 is very high due to the privatization of Saizen REIT (payout in the form of dividend before delisting this year) and a capital distribution by TSH. Unfortunately, the yield of 4.47% is below our target/expectation of 5% and there was a bump by both Saizen and Croesus Retail Trust this year.

Stocks.cafe is even smart enough to project the dividends we will be getting for next year assuming everything remains constant. Seems like it is still at a low 4%, probably need to go back and hunt for REITs. 

Based on our 10 years plan to accumulate a $1,000,000 portfolio for extremely early retirement (age 36), our target for this year was $217,340 and I am proud to say we have exceeded that target with flying colors. The current market value of our portfolio is $293,858. Our next year conservative target is $357,268. Our yearly target is pretty conservative as we believe our expenses will be growing exponentially year on year. We will be getting married next year. Yay! Going on a honeymoon trip to the United States in Suites and getting our BTO house in 2019 which means more $$$ flying away... We have yet to budget for baby/babies too so plan will change! Plans are made to change :)

Let's hope 2018 will be a great and better year for everyone and your investment!

This is not a sponsored post but if anyone of you is investing and not tracking them, you should! If not you will never know how you are doing or learn from your mistake. I will highly recommend you to use/try stocks.cafe which is an intelligent portfolio manager with stocks data for Singapore, Malaysia, Hong Kong and the United States + many reporting features such as what I have shared above.

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