Glad 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 might need seen the replace I offered in my YouTube neighborhood lately:
My dad continues to be in hospital.
I’ve but to learn the feedback I’ve obtained in latest days on YouTube as I’m not feeling very sociable.
Nevertheless, recognizing the indicators of oncoming despair, I made a decision to do some running a blog.
Running a blog is therapeutic to me.
I’m positive there are various readers who’re very involved for me and would ask me to not fear about updating the neighborhood.
Don’t fret.
I’m doing this as remedy for myself.
So, 2024 has ended and on the funding entrance, it has been sort to me.
The inventory costs of DBS, OCBC and UOB have outperformed.
As they type greater than 45% of my portfolio, this has an enormous optimistic affect on my portfolio’s market worth.
The beneficial properties 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 worth has shot by means of the roof.
It will look like 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.
Nicely, I can’t and do not need to give recommendation however the causes I gave for promoting again then are nonetheless legitimate.
Centurion Corp suspended dividends through the pandemic and was gradual in restoring dividends despite the fact that they emerged from the pandemic with a stronger stability sheet.
Nevertheless, that they had no bother 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 an extended monitor document 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 should always see one other pandemic.
Our native banks have proven themselves to be extra shareholder pleasant too.
They’re ready and prepared to reward shareholders pretty, if not generously.
At all times 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 if you’re inquisitive about discovering out extra, have a learn.
Not an enormous deal, actually.
My funding in Alibaba now varieties lower than 0.5% of my portfolio.
My focus continues to be on passive earnings era and Alibaba does not fairly match the invoice.
As a retiree who is dependent upon dividends from his investments for a residing, Alibaba is an fascinating and considerably speculative place.
Nothing extra.
I talked about this my YouTube neighborhood not too way back as nicely,
If Alibaba ought to see its inventory worth decline 5% to 10% from right here, I’d in all probability add to my funding however it could stay a really small funding.
In my final weblog submit, I recognized a weak uptrend with a gently rising help line but when that have been to interrupt, Alibaba’s share worth might go decrease.
A retest of HK$72 help stage shouldn’t be unimaginable 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 stage didn’t cut back in 2024.
DBS, OCBC and UOB actually did all of the heavy lifting in 2024 as they paid increased dividends.
In 2025, I count on passive earnings to return in decrease because of 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 stage wouldn’t shock me.
In fact, we might see increased 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 implies they’re non-recurring however that might be ok to supply some reduction.
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 this point providing to pay 100% increased lease than the grasp tenant which vacated the property.
Oh, I may even have to recollect to high up my CPF MA earlier than the tip of the month.
That is $4,000 to be put aside.
Danger free return of 4% p.a. and the curiosity earned pays for my medical insurance coverage.
In fact, when you’ve got 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 readily available.
I’ll solely dismantle it once I see Mr. Market being overly pessimistic and providing to promote shares of companies I like on a budget.
All of us may be and needs to be financially safer.
If AK can do it, so are you able to!
