Passive Income Update: November 14

I like to call myself a buy-and-hold long term investor. But as the year draws to a close, I find myself behaving more like a trader. Heck, there’s actually 4 transactions this month! I know that’s not a lot to many of your but I seriously can’t recall any month when I have been more active in my trades.  🙂

On 20th Nov, I bought 2 lots of ST Eng @$3.36 to average down on my earlier position. There’s some bad news with regards to their aerospace division but I reckon that a P/E of 18 for such a defensive business that could still be growing was hard to beat. I also bought 7 lots of Kingsmen @$0.93 yesterday for a business that is steadily improving and I thought the stagnant prices offer a comfortable entry point.

I also bought 1 lot of Dairy Farm@$9.04 on 2nd Dec. This is a business that I have always wanted to be a part-owner of since 4 years ago and even though the price I paid isn’t exactly cheap at a trailing P/E of 24, I do expect/hope earnings would increase at a rate of between 12-15% per annum for the next decade as the company increases it presence in the S.E.A region.

On the same day, I also sold my 2 lots of Singtel @$3.91. I reckoned that the upside was pretty limited, especially when I contrasted it to Dairy Farm. Nonetheless, it has been a good ride so far and it garnered an annualised return of about 12% over the past 4 years. To be honest, I was only expecting a long run return of 8% or thereabouts when I bought it.

I only realised the magnitude of my exposure to oil prices during the past month. As oil prices tumbled from about US$80 in mid Nov to below US$60 right now, the share prices of some of my stocks like Semb Corp, MTQ and Boustead have followed south. I have actually averaged down on Semb Corp and MTQ not too long ago and this is an invaluable experience and lesson on “what’s cheap can get cheaper”.

There’s tension between further averaging down and limiting my exposure to oil-related stocks and I shall be monitoring developments closely. From my understanding of economics, one should really sit up and ponder when a cartel like OPEC decides not to defend the price of a product that’s largely perceived to be inelastic in demand.

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Dividends received in November 14: $845.60

Spindex: $528

First Reit: $161.60

PLife Reit: $116

SGX: $40

Dividends received YTD: $6,725.80

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Details of my updated portfolio are shown below.

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Stocks (As at 15th December 2014)

Stock Share Amt Share Price Valuation Dividend Est. Income
Vicom 4,000 $6.400 $25,600 $0.2250 $900.00
Kingsmen 17,000 $0.920 $15,640 $0.0400 $680.00
Boustead 9,000 $1.700 $15,300 $0.0700 $630.00
ST Engg 4,000 $3.350 $13,400 $0.1500 $600.00
Wilmar 4,000 $3.230 $12,920 $0.0800 $320.00
OCBC 1,200 $10.430 $12,516 $0.3400 $408.00
Semb Corp 3,000 $4.120 $12,360 $0.1700 $510.00
Spindex 24,000 $0.515 $12,360 $0.0180 $432.00
Dairy Farm 900 $11.800 $10,620 $0.3000 $270.00
MTQ 10,000 $1.030 $10,300 $0.0440 $440.00
First Reit 8,000 $1.265 $10,120 $0.0752 $601.60
PLife Reit 4,000 $2.400 $9,600 $0.1075 $430.00
SGX 1,000 $7.580 $7,580 $0.2800 $280.00
Challenger 16,500 $0.455 $7,508 $0.0252 $415.80
M1 2,000 $3.570 $7,140 $0.2100 $420.00
LKH 10,000 $0.670 $6,700 $0.0300 $300.00
Super Grp 4,000 $1.105 $4,420 $0.0450 $180.00
Total $194,084 $7,817.40

Others (As at 15th December 2014)

Asset Valuation Est. Income
OCBC 360 Account $50,000 $1,500
CIMB Star Saver $12,080 $96
Total $62,080 $1,596

Total Valuation = $256,164

Total Est. Annual Income = $9,413.40

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    16 thoughts on “Passive Income Update: November 14

      1. My 15 HWW Post author

        Hi Rachael,

        No problem! This type of posts takes really little effort in comparison to others.

    1. B

      Hi 15hww

      Wow thats quite some transactions out there in nov. Looks like you have been keeping your bullets and unleashing them quite a bit recently.

      I am interested in Dairy Farm as well. I think they hv a strong regional position. Maybe i will think about it after you initiated a position.

      1. My 15 HWW Post author

        Hi B,

        There was a bit of cash recently after the divestment of the Sharebuilder Plan. And really wanted to diversify a little away from oil and commodities. =)

        Defensive businesses with potentially reasonable growth rates aren’t common and I feel Dairy Farm is one of them.

    2. La papillion

      Hi 15hww,

      Slow down,cowboy! Buy slowly. The bear market will last longer than the bullets u have. U don’t want to be in the greatest sale in your life with no cash to participate lol!

      How about limiting your buys to one or 2 per month? That way, you’ll be swing only when the odds are really really in your favour.

      1. My 15 HWW Post author

        Hi LP,

        When I was buying in late Nov and early Dec, I really wasn’t anticipating a bear market. Even now, I still think the market will not drop >10% but I could be proven very wrong, of course. =p

        This is my last month of sabbatical so did a little bit more research. As a result, a few more trades than usual. Probably after I start work, there would be less time on the hands and more likely, I will go back to the norm of having at most a buy or two every month. =)

        Once I go back to earning a salary, should be able to accumulate a bullet every two months? I guess I should still have a fully loaded revolver at this stage. =p

    3. Halcyon Tomorrow

      Facing the same tension as you now with regard to oil stocks exposure. Averaged down on Keppel Corp, Boustead and bought into Sembcorp Industries too early on in the fall.

      I’ve decided not to average down further as of now, as I think i have a large enough oil exposure in my portfolio. Not to mention that I do hold small positions in Royal Dutch Shell and BP >.<

      1. My 15 HWW Post author

        Hi Halcyon Tomorrow,

        On hindsight, many averaged down too early. Just look at the number of bloggers who took a bite when Semb Corp was trading at around $4.50.

        I guess for most people who average down, it’s wise to spread it over at least a few counters across different industries. Diversification against a black swan event.

    4. Jeffrey

      wow! another impressive portfolio for me to work towards. By the way how did u only get 900 shares from Dairy Farm? as i thought the minimum purchase is by 1 lot size.

      1. My 15 HWW Post author

        Hi Jeffrey,

        I am happy if I am able to inspire you like what others have done. =)

        Somehow, for Dairy Farm, the lot size is 900 shares. Have no idea why it’s like that but I guess it has something to do with it being denominated in USD? Do inform me if you find out. =)

    5. KT

      hi Mr 15 HWW,

      I chanced upon your blog recently and am taking my time to read the ‘founding’ articles that you wrote when you set up the blog 2 years ago. I must say I thoroughly enjoy your articles – they are refreshing in a blogosphere inundated with consumerism and materialism themes. I agree with and applaud your semi retirement journey. It takes a lot for a 28 year old earning a good living to take a voluntary sabbatical in this day and age (esp in Spore!). I think you are wise beyond your years and wish you all the best in your new role (do keep us updated soon on your new assignment!)

      P.S the most recent Sunday times ‘Me and my money’ column features a painter Aaron Gan who’s also ‘retired’ at a relatively young age to focus on his passion. For once I think the paper has written a good piece on someone who thrives on little, instead of the usual ‘I made my millions from property/stocks/business’ profile.

      1. My 15 HWW Post author

        Hi KT,

        Thanks for your kind words and encouragement.

        Sometimes, I do wonder why I spend considerable effort and time on this blog. Quite obviously, part of it is benefiting me as I get to pen down my thoughts and improve my writing. But it’s really heart-warming when I see comments such as yours. Shows that others appreciate and benefit from this blog too. =)

    6. KT

      Actually, years ago, i went through the same as what you did. I quitted a good paying job without anything lined up, I didn’t even have a back up plan. Just go with your gut feel and trust that things will turn out alright. All the best.

      1. My 15 HWW Post author

        Hi KT,

        Thanks for your well-wishes. Judging from your comments, I think things turned out well for you! =)