02 January 2015

A Review of My Investment in 2014

The culmination of 2014 marks my 8th year since the start of my investment journey, and the 6th year since investing directly in the stock markets. Ok, so I'm a late starter. But better late than never.

[I shall not count those early years of insurance linked policies since my National Service days. Those were just done in a blind and oblivious manner. Lost years!]

Despite the ups and downs (State of the Economy - 2014), the STI has achieved over 6% in 2014. With dividends included, the total return would be in the region of 8-9%. 

My stock investment has returned an IRR of 10.3% for 2014, inclusive dividends. This compares poorly compared to the previous years' returns of 21.6% (2013) and 39.0% (2012). 2014's performance has therefore dragged down my long term IRR from 20.6% (5 years) down to 17.3% (6 years). Still, it hasn't been too shabby, and it did outperform the benchmark STI, if only marginally.

Bought:
  Capitaland
  Hong Kong Land
  Japan Foods
  Kingsmen Creative
  Second Chance
  Tat Hong
  The Hour Glass
  Lyxor Europe 10 ETF

Rights Issues Subscribed:
  OCBC

Sold:
  Soup Restaurant

Dividend income was only $10,723 for 2014 from the stock portfolio. But it has been increasing at roughly $2,000 per year. It would have been higher, except that I took up a lot of script options instead of receiving cash dividends.

The initial $3,000 that started this journey from eons has morphed into a diversified six-figure portfolio that is well on the way to the eventual target to achieve financial independence. Time and discipline are key.


Hope you've also had as good a journey as we welcome 2015. May the year ahead continue to be a prosperous and healthy one for everyone!

2 comments:

RetailTrader said...

You are doing well in growing your portfolio. Keep it up!

Lizardo said...

RetailTrader,

Thanks for the kind encouragement. Your trading strategy seems to be working for you as well.