Due to the Covid-19 Situation in March 2020, I managed to "Kio durian" and those stocks that I have picked have since recovered and resulted in a profit for me. These gains were about 20 - 30 % on average and allowed my portfolio to increase significantly.
I often asked myself on why I did not go big on US stock in 2020 when they were on a bargain but chosen to invest in SG instead. I have no regrets as I don't believed in 10 x 20 x in just a few months. A 20 % gain a year is already something that is very satisfying for me.
Why I offloaded majority of my SG listed stocks.
Firstly, I offloaded CapitaLand due to the proposed restructuring as I know I will end up with odd lots if the offer proceed as planned. Secondly, my average price was about 2.8 SGD per shares and I sold them at about 3.8 SGD which meant that my profit is 1 SGD per share. Looking at the 10 years chart of CapitaLand, I don't have the confident that the value will go past 4.0 SGD and proceed even higher. If I am to hold onto CapitaLand, I will likely be sitting on a roller coaster with the price bouncing between 3 - 4 SGD. Though Dividend will be given yearly, I feel that the profit of 1 SGD per share will make more sense.
Previously, I have strong conviction of it going even higher and my TP was 1.4 SGD. My average price was rather low as they were from Covid-19 crash and thus the profit was about 0.50 SGD per share. Though, I believed some day YZJ will sail to 2 SGD per share but it may be a very long ride.
I offloaded my REITS slightly earlier for capital gain. My initial plan was to keep REITs for dividend but I have found a better way for passive income which is to perform "Covered Call". Thus, the 5-6 % dividend no longer make sense to me. Furthermore, REITs may have rights issue which is something I want to avoid badly.
So where do I place my money ?
This is gonna sound lame but I place my money in ETF for SG market. Though dividend is lesser but they are stable.
I have added my position in HK and US market. For both market, I keep the companies that I invested in to be less than 10 so I don't need to read so many reports. In order to generate passive income, I also only invested in companies that have options tradable.
My passive income is now higher than previously by performing "Covered Call" as compared to collecting dividend. I am still learning and hope to learn more from proper channels.