December is the month that many would take a look into their portfolio performance, reflect and plan for the coming year. December is also the month that many are extremely busy on their works, family and vacations. Despite, being a student, it's the same here! The weather in Japan is getting really cold ranging from sub zero to -5 throughout the day with thick piles of snow forming.
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| Look at the thick snow! |
Ok, time to go into the topic.
Oh wait. Just a moment. Before dabbing in too much.
Would you believe if I tell you that my biggest return till date is from cryptocurrency?
Sure! Why not?
In this post, I will be writing on the performance of my SGX equities portfolio, Cryptocurrency performance and Overall Portfolio performance. As cryptocurrency is part of my portfolio, I think it is fair for me to include it in for the overall performance. At the same time, it's just days more before the start of a new year, I believe that there will not be any big movements nor trading that will occur, hence the summary is done today.
Based on my earlier target to channel $15/day into my war-chest/investment portfolio. This sum will come up to $5,475. However, I've achieve this goal in August and have since revised the goal to $7,350. Today, in this post, I will announce that I've hit the goals I set for myself in 2017. *confetti throw*
As of today (19/12/17), my total portfolio value stands at S$7,584.66.
This sum here is 103.19% of my target, which suggest that I have exceeded my target slightly by 3.19%. Having that said, I'm contented on the performance this far.
Caution: Lengthy post ahead.
1. SGX Equities Performance
Anyway, back to the topic, despite STI surging past 3,4XX. My SGX equities portfolio under-performing the market and is in RED! (if I exclude dividends received). The performance is positive if I factor in dividends received and yes, it's really pathetic.
This is due to some heavier weighting counters in my portfolio that is currently red such as ComfortDelGro, FEO and Wilmar. Another factor is also due to the relatively short duration of time that I'm in the market.
For CDG case, this is pretty much a value and contrarian play, as explained in my previous post on CDG. At the price today, I do see some value presenting itself and will likely pull the trigger to average down more when it hit the price I have in my mind.
FEO on the other hand is an asset play with no guarantee that the value will realize anytime soon. For asset play, patience is needed. I've initiated this position 2 months ago, hence a small dip for an asset play is nothing to be shouting at.
Wilmar, is a counter that is attracting most of my attention now. The recent fall back to my initiation price is very very tempting for me to accumulate more shares from them. I do see the shiny, bright and attractive value at the current price and will be happy to accumulate more shares from them.
Another thing to note is that I've excluded dividends from Singtel & AA REIT. The shares are in XD but payment of dividends have yet to be received, hence they will not be factored in.
The following are the details of my equities portfolio ending 19/12/17:
Total Capital Injection = S$ 5,882.09
Total Value of Portfolio = S$ 5,776.34
Total Dividends received = S$111.23
Value (including dividend) = S$ 5,887.57
Unrealized P/L (excluding dividends) = -S$ 105.75 (-1.80%)
Unrealized P/L (including dividends) = +S$ 5.48 (+ 0.93%)
The compound annual growth rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer than one year. Hence, having that said, it might not be a very good idea to calculate my CAGR base on the relatively short time frame and none of my investment has exceeded one year.
However, I'm still going to do it.
CAGR's calculation:
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| Formula extracted from investopedia.com |
Personally, this is my first time calculating CAGR, hence please correct me if there's any mistake spotted. Taking my total capital injection as beginning value and based on my first stocks bought in Feb 2017, I arrive with this equation below:
CAGR = (5887.57 / 5882.09)^(1/0.83)-1 = 0.11%
If anyone notices, the CAGR is exceptionally low due to the extremely small gains as well as the duration of holding.
XIRR wise, is the internal rate of return. They are used in capital budgeting measuring the profitability of potential investments. For now, I'm reading more on how I'm going to do the calculations and to more. Having that said, I've pulled out the XIRR from stocks.cafe for reference.
Pathetic isn't it? Haha.
Read:
FY2017 Full Year Dividend
Accumulating CDG
Portfolio Update - Far East Orchard
Portfolio Update - CDG & Wilmar
2. Cryptocurrency Performance
For this section. Read at your own discretion. You may skip this section and not continue if you're someone that is "anti-crypto" and/or thinks that it is inappropriate for one to include their crypto returns in their portfolio performance review.
Hate me please. Why is this young kiddo so lucky? Beginners luck is still helping him! Wait. There's many others with far better performance out there - Be it hodlers or traders!
Anyway. Pertaining to my previous post on my month review as a cryptocurrency trader, I've revealed that I've successfully book 100% profit from the crypto-world and this amount of USD is sitting happily in my DBS Multi-Currency Account. This account is originally created for my overseas attachment program. But right now, I've found another use for them!
Having that said, with the funds in cryptocurrency reduced significantly, it makes it much harder to book significant profit from trading. A 10% profit for a $200 investment is merely $20, which is extremely insignificant comparing to a 10% profit from a $1,000 investment - Account size really matters. As such, I've changed my game play and is hodling onto crypto which I feel is under-value. (Yes. I'm not diversified)
In my previous post, I've also explained briefly on the withdrawal and reason for doing so. The withdrawal has booked 100% profit of the table and the remaining funds in crypto are basically free-hold. It's true that I've been losing out a hell lot of possible profits for the recent weeks due to the withdrawal of funds. But, I do not regret on my decision. Having to play with "free-chips" beats anything. It would be really interesting if I'm able to show people that how much I'm profiting from the market with merely USD 200 of free chips.
But remember - Not profiting DOES NOT EQUATES to losing money.
Why is this guy stupid or out of his mind? Withdrawing his funds from a surging bull market? He's gonna lose out on so much! Whatever.
Below is the summary of details for this segment, ending 19/12/17 (based on USD=1.3381):
Total Capital Injection (USD) = USD 500.00
DBS MCA Funds (USD) = USD 1019.97
Value of Crypto-holdings (USD) = USD 331.44
Total Value (USD) = USD 1,019.97 + 331.44 = USD 1,351.41
Total Capital Injection (SGD) = S$ 684.70
Total Value (SGD) = S$ 1,808.32
There will be 2 different P/L in SGD and USD. The difference is due to forex spread. Nonetheless, I will be taking the results for SGD for computing.
P/L (USD) = +170.28%
P/L (SGD) = +164.11%
Now this is really really explosive. Similarly, for the fun of it, allow me to calculate the CAGR for this section. At the same time, I doubt that the crypto world will have that many years more for such exponential growth too.
Taking my beginning value at S$684.70, holding for one month. Ending value at S$1,808.32.
CAGR = (1808.32/684.70)^(1/0.083)-1 = 120,676.41%
Read: A month as a cryptocurrency trader - Results
3. Overall Portfolio Performance
The overall portfolio performance is an overview of both cryptocurrency investment and equities portfolio. The performance is greenish here due to the bout in cryptocurrency. Yes it's beginner's luck. Nonetheless, I'm thankful for what that had happened.
I heard it's really difficult to cash out from crypto. Did you really manage to cash out your gains from cryptocurrency? Yes.
Total sums and Overall performance:
Grand Total (Capital Injection) = S$ 5,882.09 + 684.70 = 6,566.79
Grand Total (Value) = S$7,584.66
Unrealized + Realized P/L ($) = S$5.48 + 1123.62 = S$1,129.10
Unrealized + Realized P/L (%) = (7584.66/6566.79)-1 = +15.50%
STI has return 21% till date from the start of 2017. Hence, with this performance you see here. I'm unable to beat the market in 2017.
Assuming the holding period throughout is 10 months (based on my first investment):
CAGR = (7584.66/6566.79)^(1/0.83) -1 = 18.96%
This concludes my overall portfolio performance for this year.
As I'm really new to this, kindly suggest to me on how I'd be able to further improve on this performance review so I'd be able to include it in the performance review post next year.
The year of 2017 have been rather rewarding in some way. And soon, we will be entering 2018. In the coming post, nearing the end of December, I will be writing about the review & reflection of 2017 along with the resolutions of 2018.
Hope everyone is having a good holidays now :)
Hi Sleepydevil
ReplyDeleteWow the snow is really thickish there!!!
Congrats on achieving higher than your intended target, I think that alone is a success by itself.
The crypto has pulled up and a big success for you, so you belong to the super huat group of camp.
I think you'd do well in 2018 with now your experience under way.
Looking fwd to more sharing from you.
Hi B,
DeleteThank you for dropping by as well as the kind compliments!
The crypto has indeed pulled a great success for my portfolio and helps greatly in my portfolio performance in 2017. Your portfolio too has a very respectable return for 2017!
Nonetheless, as my equities portfolio is performing badly for 2017, it somehow pulls the performance down. Having that said, I belong to both the camp of huat crypto team as well as the suffering team.
Indeed, I am really grateful that I manage to attain my target that I have set for myself this year. As of now, Im still learning along the way from the market and wise seniors like you :)
Hi Sleepy Devil,
ReplyDeleteGood job for the year.
Sometimes it is funny that our black horses will outperform and come out top in our portfolio.
Hi Frowns88,
DeleteThank you for dropping by and the kind compliments! Indeed, it is surprising that the smallest investment turns out to be the heavyweight champion today. The market is truly unpredictable!
Chanced upon your blog post recently, it’s interesting to know that you’re in Japan too! The autumn is Japan is undeniably beautiful. Now, piles of snow is racking up here. Which part of Japan did you visited?
Also, venturing into the US markets is something I’d like to explore, possibly in the coming years when I have a bigger funds in place. I’ve been looking at the market recently and it is a very different world from our local SGX market.
Hope that 2017 is a good year for you too! :)
Hello Sleepydevil,
ReplyDeleteI'm a 21 year old nsf whom started the year with an 5fig portfolio allocation of 40% cash 35% stocks (mainly etfs and sgx) and 25% crypto. However as I approach the year's end my portfolio allocation has appreciated to 11% cash 19% stocks and 70% crypto. (Most of the crypto gains would be due to entering the crypto market at an early point of time)
I would like your thoughts on what you would do if being placed in a similar position. Would u consider to profit-take and reallocate the crypto gains back into the other holdings?
Hi Unknown,
DeleteThank you for visiting my blog! It’s really nice to hear about another prudent individual at this age range!
My situation is somewhat similar to you, just that I do not have that massive return as you have from crypto due to my late entry.
For my case, the funds in crypto started out weighing about 11.3% of my portfolio. As of today, along with the retuns, the value is roughly 25% of my portfolio, having the greatest weightage among all my other investments!
In my honest opinion, today, it is still considered “early” for the development of crypto and many fresh funds is still coming in. However, for my case, I’ve withdrawed my capital as well as booking some profit along. Not that I view that there is a crazy bubble or it’s gonna burst anytime, whereas it’s more to having free chips and free hold crypto under my arm. Having that said, I might be losing out on huge amount of potential gains from the ever-surging bull market, but the game play now is completely different. I might be progressively withdrawing my funds out when it hits a certain amount to lock in some gains in the coming months. If one fine day, the bull comes to an end, I’m well to tell myself and people that I’ve benefitted from it. But well...
Peace of mind is priceless. Every different investors have a different risk appetite and their own set of risk assessment. Some will able to take huge risk and those who done so is able to reap great returns when the market is in their favor.
Perhaps, you can take a look and assess your risks today to get yourself an answer for the given question. There is no right or wrong answer for this question and the leaning bias you’re on will be the primary factor for the loss/gain you’re reaping in the coming duration :)
Hi Sleepydevil,
ReplyDeleteCongrats and great job!
Hi UN,
DeleteHahaha! Thank you for the complients! I’m flattered!! :p
On the other hand, I’m still looking forward to your continuous part of your earlier post and probably a sneak peek into your performance this year. I believe you’re reaping some handsome rewards there quietly!
wa your Cryptocurrency portfolio is doing so much better than STI equities!
ReplyDeleteHi MIN,
DeleteInterestingly, even till this point, I’m flabbergasted. This is truly a black horse here. From one of my smallest position, to the biggest position till date (tho not all the funds in “crypto-funds” are invested).
But, as time passes by, I’m losing out on the huge amount of potential gains due to the funds that are out when the crypto market continue to surge to it’s new all time high.
For STI equities, I sincerely hope that this lesson will be a rewarding one along the way. Not exactly the monetary wise, but more to the knowledge acquired along the way. There’s still many many many more things that I’ve yet to learn, and I look forward to learning more from wise seniors like you in the future!! :)