Q3 2020 Report - Managing $$ Myself is the BEST!
Lucky for you I have no more mood to ramble endlessly and we'll just go straight to the point.
2. Robo-investing (Stashaway
Anyway in case you are new here. Quarterly report is meant to track the performance of the different investment strategies / asset class that I have picked up to try and determine which is the better one for me. More explanation can be found here 👉👉Different investing strategies (scroll down to the 2nd half)
Now if you recall, back in my Q2 report (which was in my Facebook messy Notes). My self-managed portfolio was the worst performer to date, being the only one in the red compared to others.
Sooo, after days of tidying up my excel table and wrangling with line graphs. I can finally present to you Q3 to date performance benchmarked against S&P500 index!
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| YTD performance of the different strategies |
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| Composition of Investment |
1. Self Managed Portfolio
I am very glad to report that my self managed portfolio has caught up and beat the other strategies becoming the best performer of all at +11% by end Q3 2020. It peaked at about +20% before being hit quite badly in the September Market correction as I fail to hedge properly against the drop. But remember, drawdown is part of the phase in investing, as long as we are invested in good companies, we are relatively safe.
At least this proves that all my effort did not go to waste.
Current distribution of the portfolio
2. Robo-investing (Stashaway
)
Robo investing continues to perform quite decently so far, experiencing drawdown of much smaller magnitude as compared to S&P500. Quite a no brainer, just let them do the investing for you. But for some reason I do not really like this, probably because of the lack of control from my side, they basically will adjust the portfolio regularly to suit market condition, that is actually a good thing. Do note that they do charge 0.2% ~ 0.8% management fee per annum depending on your account size. You want free management fee for 6 months? use this LINK
3. Dollar Cost Average ETF (US & China/HK Market index ETF)
My favourite strategy so far. requires the least brain power. Performance so far at 5+% nothing impressive but less risky, and you are almost guaranteed to make money in the long run. Again, if you want details how this is done go HERE
4. Passive dividend investing (SGX)
The worst performer this quarter at -5%, However, I am not worried because, I only have OCBC and UOB banks for now, and it is highly unlikely that they are going to drop much further, their PBV is at an all time low. In fact quite confident it will go back to pre-covid level in few years time.
I still need to buy DBS and also looking to add some REITS which is looking very attractive at the moment such as Cromwell reit (CNNU), China capital retail (A8U8), and First Reit (AW9U). This is not a recommendation! I am still not sure how to valuate REITS yet, I just look at their PBV and dividend yield.
I do hate the commission fee of local brokers though, but doesn't seem that there is other way around it if I want the stocks to be in my CDP account. Let me know if any of you has better way to avoid the minimum 25$ commission per transaction.
CONCLUSION
So the best way to invest (for now) seems to be managing the portfolio myself. Of course it is not easy, lots of time and effort is needed to make sure I don't miss any good buying opportunity, scanning for potential trades. But like everything in life, effort with the right education will brings you result. I do hope I can beat the index before the year end.
Remember whatever method you believe in, STAY INVESTED, It is a long and slow process and so far this is the only way i know not-filthy-rich people like me can ever hope to beat inflation, and eventually retire comfortably.
Remember Ferry is not a licenced financial advisor so do your own due diligence! Provided data are purely based on historical records and may not guarantee future results. Follow my methods at your own Risk!
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