Portfolio Update September 2018
Hi everyone, this month was pretty volatile with the ongoing trade tension going on coupled with FED increasing the interest rate. STI time weighted returns about -8.9% since the start of the year. My portfolio was not spared either with most counters in the red.
Recently, I have been reading / rereading books on Index investing and was particularly confused on my investment strategy going forward. Most of the books I read, mentioned that most of the professionals on wall street could not even beat the S&P 500 over the long term. Even Warren Buffett himself challenged anyone who could try to beat his portfolio of low cost index funds over the period of 10 years. This led me to think that I should just invest in indexes. However, I am in favour of having a passive stream of income from my stocks too. To get the best of both world, I have decided to own both a index portfolio and an income portfolio.
1. Index Portfolio
Asset Allocation would be 80% stocks and 20% bonds. Of which 75% in IWDA and 25% in STI ETF.
2. Income Portfolio
This portfolio has not been doing very well as compared to the index portfolio. Having attended Fifth Person course and reading up on books, I realised that my individual stock picking skills have much to improve, especially at the price point that I enter at. That being said, I will continue holding onto these companies as I see the value in them in the long run.
Til then Happy Stocking!
Recently, I have been reading / rereading books on Index investing and was particularly confused on my investment strategy going forward. Most of the books I read, mentioned that most of the professionals on wall street could not even beat the S&P 500 over the long term. Even Warren Buffett himself challenged anyone who could try to beat his portfolio of low cost index funds over the period of 10 years. This led me to think that I should just invest in indexes. However, I am in favour of having a passive stream of income from my stocks too. To get the best of both world, I have decided to own both a index portfolio and an income portfolio.
1. Index Portfolio
Asset Allocation would be 80% stocks and 20% bonds. Of which 75% in IWDA and 25% in STI ETF.
2. Income Portfolio
This portfolio has not been doing very well as compared to the index portfolio. Having attended Fifth Person course and reading up on books, I realised that my individual stock picking skills have much to improve, especially at the price point that I enter at. That being said, I will continue holding onto these companies as I see the value in them in the long run.
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