Completely happy New Yr!
One other quarter is behind us and it’s time for one more replace.
In case you are following me on YouTube, you may need seen the replace I supplied in my YouTube group lately:
My dad continues to be in hospital.
I’ve but to learn the feedback I’ve obtained in current days on YouTube as I’m not feeling very sociable.
Nevertheless, recognizing the indicators of oncoming melancholy, I made a decision to do some running a blog.
Running a blog is therapeutic to me.
I’m positive there are a lot of readers who’re very involved for me and would ask me to not fear about updating the group.
Don’t be concerned.
I’m doing this as remedy for myself.
So, 2024 has ended and on the funding entrance, it has been variety to me.
The inventory costs of DBS, OCBC and UOB have outperformed.
As they kind greater than 45% of my portfolio, this has a giant constructive affect on my portfolio’s market worth.
The features greater than make up for the losses in IREIT International and CLCT.
In fact, all of those are simply on paper.
So, simply saying as I’m positive some readers, no matter their causes, would have an interest to know.
All positions are nonetheless producing earnings for me.
Some have requested me what ought to they do with their funding in Centurion Corp because the share value has shot by means of the roof.
It could appear to be I’ve made a mistake by promoting my funding in Centurion Corp and utilizing the cash so as to add to my investments within the native banks so many moons in the past.
Properly, I can’t and do not wish to give recommendation however the causes I gave for promoting again then are nonetheless legitimate.
Centurion Corp suspended dividends through the pandemic and was sluggish in restoring dividends despite the fact that they emerged from the pandemic with a stronger stability sheet.
Nevertheless, that they had no hassle with instantly rewarding their administrators generously.
So, I made a decision so as to add to my investments within the native banks as a substitute as they’ve a protracted observe report of rewarding shareholders throughout good and unhealthy occasions.
Their very sturdy stability sheets compared to Centurion Corp’s assist to make sure that their dividends wouldn’t be suspended if we must always see one other pandemic.
Our native banks have proven themselves to be extra shareholder pleasant too.
They’re in a position and keen to reward shareholders pretty, if not generously.
All the time revisit our causes for investing in a sure entity and if the entity is unable to ship anymore, it’s time to let go.
So, promote, maintain or purchase would rely, to a big extent, on our motivations.
I believed I’d finish 2024 with out making any buy however I ended up shopping for extra of Wilmar and likewise nibbled at Alibaba.
I talked about this in my final weblog submit and in case you are concerned about discovering out extra, have a learn.
Not a giant deal, actually.
My funding in Alibaba now kinds lower than 0.5% of my portfolio.
My focus continues to be on passive earnings era and Alibaba would not fairly match the invoice.
As a retiree who depends upon dividends from his investments for a dwelling, Alibaba is an fascinating and considerably speculative place.
Nothing extra.
I talked about this my YouTube group not too way back as properly,
If Alibaba ought to see its inventory value decline 5% to 10% from right here, I’d in all probability add to my funding however it might stay a really small funding.
In my final weblog submit, I recognized a weak uptrend with a gently rising help line but when that had been to interrupt, Alibaba’s share value may go decrease.
A retest of HK$72 help degree just isn’t inconceivable since we might be seeing the formation of a head and shoulders sample which might give us an eventual draw back goal of HK$72 or so.
My charting abilities are a bit rusty.
So, watch out for tetanus.
Now, the numbers:
Q4 2024: $28,734.99
FY 2024: $ 234,439.46
This is kind of the identical as FY 2023 which delivered $231,495.19
Regardless of having offered most of my funding in Sabana REIT in 1H 2024, passive earnings on a portfolio degree didn’t scale back in 2024.
DBS, OCBC and UOB actually did all of the heavy lifting in 2024 as they paid larger dividends.
In 2025, I anticipate passive earnings to come back in decrease attributable to a a lot smaller funding in Sabana REIT and likewise the anticipated 25% discount in DPU from IREIT International as they reposition their Berlin asset.
A 4% or 5% discount in 2025 passive earnings on a portfolio degree wouldn’t shock me.
In fact, we may see larger dividends from DBS, OCBC and UOB in 2025 as they’ve extra capital which might be returned to shareholders.
May very well be particular dividends which suggests they’re non-recurring however that may be ok to offer some aid.
As soon as IREIT International will get their Berlin asset up and working once more in 2026, earnings era ought to obtain a leg up because the property has attracted 2 tenants to date providing to pay 100% larger hire than the grasp tenant which vacated the property.
Oh, I may even have to recollect to prime up my CPF MA earlier than the top of the month.
That is $4,000 to be put aside.
Threat free return of 4% p.a. and the curiosity earned pays for my medical insurance coverage.
In fact, when you have been following me for a few years, you’d know all about this.
Let the federal government pay for our insurance coverage.
Lastly, I’ll keep my T-bill ladder and strengthen it at any time when I’ve spare money available.
I’ll solely dismantle it after I see Mr. Market being overly pessimistic and providing to promote shares of companies I like on a budget.
All of us could be and needs to be financially safer.
If AK can do it, so are you able to!
