It’s a new year and with the latest updates (here and here) on my evolving (hopefully not flip-flop) investment philosophy, there will also be a change in the format of this monthly update. Don’t say I didn’t warn you beforehand.
And yes, I have stopped calling it “passive income” even though my approach is definitely more “passive” than before. A portfolio is more apt since there will be 3 sections for the foreseeable future and here’s a short and quick explanation on each of them.
1. Core Portfolio
|Asset||Avg Price||Amount||Current Price||Valuation||Allocation|
The above will be the core portfolio going forward. I know I have not revealed the percentage allocation for each type of asset and don’t worry, the last post in the investment mini-series should be out in the next couple of weeks!
I am trying to increase this portfolio to $200,000 hopefully by the end of 2017 or even earlier! If the market (especially the US market) drops substantially, the process would be faster as I can then pick up more of Berkshire Hathaway B shares, which I am using as a proxy for the US market.
*The two numbers are in USD
2. Local Stock Portfolio
I was debating with myself if I should continue publishing this but well, why not? Hopefully, this list will be trimmed to around 10 by the end of this year. I actually sold off my Jardine C & C a couple of weeks ago @$35 (and heck, it went up to $40 in the next week!). If I included the STI ETF, the stock portfolio actually eked out a small $1k to $2k gain over the previous month.
There is a chance I could maintain a $50k to $100k high-yield portfolio to make up the lower yield of the core portfolio but I am still thinking about it. More diversification by picking non STI-constituent stocks? A small REIT portfolio? Or just 5 core small-caps? Or maybe it’s just too much hassle?
3. Emergency Funds
I blogged about our $100k emergency fund a month ago and since I am having a tough time getting myself to buy the recent SSB launches, I have parked the somewhat stable FCL 3.65% bonds over here.
A voluntary top up to my CPF accounts as a self-employed is on the cards and in light of the recent weakness of the CAD dollars, I might be making a trip to Raffles Place Change Alley soon!