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12 January 2021 - DBS, probably my best investment till date

I started Investing back in 2015 when I was still in University and I knew nothing about it. I read up here and there and thought that I was able to enter like a pro. Only after a while then I know that I am actually just gambling. Back then I don't have a stable part time job and my incomes were from multiple stream from teaching tuition, working as teaching assistant and also getting bursary. 

I remembered I bought my first 100 shares of DBS at 18 ++ dollar in 2015. Together with DBS, I bought various shares that cost about 20 cents due to my limited warchest. Then the news of Brexit started and then Trump and Hillary started to fight it out. I saw my portfolio gone down quite a bit and I basically panic sell everything other than DBS. Before I knew it, it went to 12+ or 13+ and it was bad experience for me as I was just a University graduate. All my other holding basically made a loss of about 10 - 15 %. Finally few days after Trump victory, DBS went up and I sold them at 15 ++ thinking that the recovery was just temporary. Little will I know that the recovery was here to stay and a bull market started. 

After graduation, I started to work almost immediately. I graduated in May 2017 and started working in June 2017. Upon receiving my paycheck, I started to nibble on stocks market again. This time round, I started to read up before jumping in. I entered DBS, OCBC and some other stocks somewhere in late 2017. I could remember my price for DBS was at about 22 SGD and i kept them for dividend. When the price hit around 30 SGD in 2018, I was still holding onto them thinking that it would go higher. Subsequently, somewhere in 2019 I offloaded a portion of my DBS and then before we knew it, the March 2020 crash came. I took the chance to enter at various point at 100 shares at a time. I remembered there was 20 SGD and 18 SGD. However, when the news of DBS bank investing in Lakshmi Villas Bank, I took some profit and trim my position in DBS. 

Till date, I have collected 1304 SGD as dividend and my average price for remaining DBS is at 20.34 SGD per share. Based on the price of 27.42 SGD per share (at time of writing), it would mean that my unrealised gain from DBS would be 7.08 SGD per share. The profit is certainly tempting for me take as I am quite skeptical about the market now. Based on current NAV of DBS at 19.614 SGD, it would mean that my current average price would be somewhere near. However, the current price of DBS would mean that the price/NAV would be around 1.328. With the dividend cap recommended by MAS, DBS would likely follow it and till the date they are able to go back to previous dividend, taking the current profit don't seem to be a bad option. 

The gain from DBS had greatly caused my SG portfolio to enter the deep green zone. The unrealised gain plus my past profit would mean that DBS provided me with the best investment return till date in term of percentage (not counting BTC). The price movement since the start of 2021 was simply to great to be ignore. Prior to the start of the year, I was thinking of holding onto DBS for dividend but it seems that things had changed in just a week. There seems to be FOMO and I may want to reduce some position and take some profit for now. This will likely apply to my other stocks holding mainly which I invested during the 2020 crash. 

Nonetheless, I believed DBS will continue to carry on strong and I will confirm add more position if the price move toward a position that I am comfortable with. 

As usual, the above is just my thoughts. It is not a buy/sell call and not investment advice. 

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