My Lazy Man Portfolio

Recently there have been several articles on the “Permanent Portfolio”. Not to be outdone, I’ll write about my own “Lazy Man Portfolio”. There is no need for complicated mathematical formulas, spending hours on charting and various tools or gouging your eyes out on reports and numbers.

Warning: this is not for the faint-hearted. If you are not ready for it, do not read the rest of the section.

 

 


 

 

 

In case you are wondering what kind of strategy this is, it is NOT. I’m just using this term to describe my own very boring portfolio. Opps, I hope I did not dash your hopes. I already put a warning didn’t I?

A breakdown of my Lazy Man Portfolio

First REIT
My longest and best performing stock. AK71 blog about this frequently and that is where I get the information I need. A big thank you to him.

Hong Leong Finance
Was my worst performing stock until recently where the dividends help to defray the loss. Nothing to shout about. I’m expecting it to do badly this year due to a curb on car loans and increase cost for SMEs. No intention to sell and will diligently collect my dividends for many moons.

Ascendas India Trust
Held since IPO. Currently my worst performing stock. Even after so many years of dividends, I have yet to break even. I will hold onto it for now since the market is still generally bullish but it will be the first to go as soon as I smell Mr. Bear coming.

Sabana REIT
I believe it’s still the only Muslim REIT and doing pretty well.

CapMallA3.8%b220112
Its bonds. Again nothing much to rant about. Collect dividends and forget.

IHH Healthcare Berhad
Khazanah, the investment holding arm of the Government of Malaysia is a major shareholder. Enough said.

Mapletree Greater China Commercial Trust
My most recent addition. Bought this due to strong interest – my visitor count was a good gauge. Coupled with the persistent low interest rates, tightening of car loans and property, there will be an increase in the number of cash rich people wanting to put their money somewhere.


As you can see my humble portfolio consists of mainly dividend stocks. In terms of returns, it is damn pathetic. I remembered the last time I calculated XIRR, it was just a little higher than the bank’s interest rate. No thanks to the mistakes I made in the past and also because I have not been buying heavily into stocks since 2010. I bought a few IPOs since then and they have all done well, but the majority of my funds are held as cash.

I feel the market is over priced. There are definitely some hidden gems but it will take some effort to dig them out. My strategy is simple. Build up my war chest and buy stalwart stocks during a recession. When the recession will come I don’t know yet. Will I have the guts to buy in? I also don’t know. And at what price? It’s anybody guess.

PS: I’m buying shares under my company employee stock option scheme. It is not reflected in my CDP and I find it difficult to calculate P&L. Do you guys add that into your overall portfolio?

Comments

  1. says

    Hi Derek,

    Wah! You use your visitor count to help determine which stock to buy into? I guess it is just like how LP uses his cbox to get a feel of sentiments on the ground. It makes good sense. :)

    I am happy that First REIT has performed so nicely. There is definitely something to be said about buying an undervalued stock and waiting for Mr. Market to give it a fairer price. It did take years. ;)

    There are still bargains to be found now. They are just harder to find and probably not in REITs. I hope that I have found one in Marco Polo Marine.

    Even so, I am not throwing in everything plus the kitchen sink. Like you, I am keeping some powder dry. :)

    • says

      Hi AK,

      Yep, but of course strong interest doesn’t equate demand. It’s still a gamble or should I use a nicer name – calculated risk?

      I’ve held on to First REIT since its IPO, and over the years subscribed to their rights. However it wasn’t all that rosy. I wasn’t sure of the stock and wanted to sell it on several occasions. It was until I read somewhere “never sell your winning stock” and coincidentally, that’s when you came in with your analysis.

      Hmm… is shipping back? My friend was talking about Courage Marine. Being true to my lazy man portfolio, I hope you don’t mind if I ‘fish’ the information from your blog.

      When the time is ripe, do share where you sprinkle your powder ya.

      Cheers!

  2. says

    Hi Derek,

    For various reasons, I was not comfortable with MGCCT. I didn’t blog about it and just directed readers to Drizzt’s blog since he did a write up on it. I just told myself to listen to WB and that IPOs are rarely good value for money. Yah, just being lazy. ;p

    As for shipping stocks, there are so many segments in shipping. Some will do better than others. I think Mr. Market has already repriced the OSVs sector. In this space, Marco Polo Marine’s valuation is considerably cheaper than its peers. Technically, however, it is looking a bit tired.

    Dry bulk carriers could improve given more time but to go back in now could be too early. Some don’t mind being too early and wait for a couple of years. Anyway, some could argue that I went into Marco Polo Marine too early too. ;)

    Anyone is welcome to fish in my pond called ASSI but don’t expect to get a fish every time. You could get an old smelly boot too. Fair warning. ;p

    • says

      Hi AK,

      No worries. At the end of the day, we make our own decisions and should not blame others. But if things turn out well, I will definitely show my gratitude.

      Cheers!

  3. Soonachai says

    Dear Derek

    I believe your portfolio is aimed at generating passive income rather capital appreciation and you are looking at a very long time frame with the stocks you are holding on.

    Aim for all the good dividend stocks and the money will work hard for you. I can see you retiring with a big smile on your face.

    In comparison, my portfolio consists of only 2 dividend stocks (i.e those with 5% yield) and they make up 13% of my portfolio only. am still waiting for a good entry point for dividend stocks. Intend to push this up to at least 70-80% :)

    Cheers
    Soonachai

    • says

      Dear Soonachai Weettarrapong,

      If I’m not wrong your portfolio is 70-80% growth stocks? Let’s wait patiently for the time to come. And when it does…..Huat Ah!!

  4. YK says

    Never give me credit on 1st reit? :)

    I strongly recommended first reit back in 2007. and i am still keeping First reit since than.

  5. YK says

    I actually do not like Mapletree China. Good for stagging but not good for keeping long term.

    There is a BT article today. Title is “Investing In Reits: There is no free lunch. It uses MGCCT as a case study

    The reason why i dont like it is stated in the article :)

    • says

      Master Y,

      I wanted to keep your identity a secret. Thanks for your recommendation and I think it won’t be long before I see your name in the top 20 shareholders of First REIT.

      Noted on MGCCT. I believe there is still some upside and will be monitoring it closely.
      I couldn’t find the article on BT. Can you direct me or capture a screenshot?

      Cheers!

  6. says

    Hi Derek

    You must have been holding a huge gain from First Reit since it is almost a quarter of your portfolio.

    Nicely done and love to see your updates further.

    B

    • says

      Hi Han Siang,

      Yes but like all stocks, the buy in price is very important and also what type of ETF. I’m looking at STI ETF but its too high a price now and liquidity is very low.
      Cheers!

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