Friday, December 27, 2013

2013 Annual Portfolio Review (27 Dec) and Command & Conquer

With just 2 more trading days remaining, the year 2013 will be over, paving the way for a new 2014. The year 2013 has been a fruitful one for me, not only has it seen improvement to my market performance, but more importantly, invaluable knowledge and experience gained in income investing. I am glad that I took my first steps to start my investment journey since the beginning of the year.

Including dividends received, the total returns of my current portfolio for the year is more than 7%. The below computation excludes dividends/gains/loss from divested stocks.

This is in fact the 1st time that I've seen positive returns (average over a year) on my portfolio. Before I began my investment journey, My trading performance was largely inconsistent even with trading systems to help. It almost seems that success of particular trades was largely luck-driven, and I felt that the odds were stacking against me. Some days I was excited with several gains, only to be wiped out by one big loss (probably due to whipsaw or loss-cutting). That said, I do not think it is wrong to do trading, just that successful trading requires large amount of time commitment to verify setups and monitor your positions, which is generally challenging for people with a full-time job/family commitment to handle.

Many years ago, I remembered playing and enjoying one of the PC games, Command & Conquer. Those who have played it will know that resources (money) was the critical advantage to win the game. Without  resources advantage, you will not be able to build structures/train troops or at a much slower frequency (which results in being overwhelmed by your opponents later on in the game). The Supply Drop Zone was an advanced US support structure that helped to bring in extra battlefield funds. However, the structure also consumed high base power resources and a potential weakness of a long delay between supply drops.

Now having built one Supply Drop Zone will not seem to have any significant advantage initially, due to the resources spent to build and maintain it, and long wait before the next drop arrives. But as you build more and more Supply Drop Zones slowly, you will observed the waiting time between each drops shortens. Eventually, the drop frequency increases to a point that there is a constant arrival of fund drops, and exceeded any amount of resources spent.

I find that this seems to be pretty much akin to the mechanism of how the passive income builds up as the invested portfolio grows over time.

In year 2014, I shall be looking forward to collecting my monthly dividends (except Jan and Apr) based on my current portfolio:

Feb 2014: Sabana REIT, First REIT
Mar 2014: CitySpring, Tai Sin, Hafary
May 2014: Sabana REIT, CitySpring, UMS, First REIT, AscendasHT
Jun 2014: QAF
Jul 2014: UMS, Hafary
Aug 2014: Sabana REIT, CitySpring, First REIT, SingTel
Sep 2014: QAF
Oct 2014: UMS
Nov 2014: Sabana REIT, CitySpring, Tai Sin, First REIT
Dec 2014: UMS, Hafary, AscendasHT

*Note: Above schedule is forecasted based on year 2013 dividends. There is no gurantee that the companies will decide to follow the schedule/maintain the same dividends.


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