Another sale event following up from the big one last week. The proceeds are not as high but what is significant about this one is that we are selling some of our ETFs. I have mentioned before that our portfolios structures are messy and uncoordinated because of inexperience and lack of clarity in our strategy. Our investment approach developed over time and although our buy transactions are more targeted now, it doesn’t change the fact that the foundations of our portfolios are weak and unwieldy. We have taken this run-up in equity markets to clean up some of the mess. Over time, there should be a clear focus on ETF investing with both of our portfolios (held mostly in banks and eventually robo-advisory firms) reflecting that.
Other Sell transactions for Mar 2017
Sale proceeds after transaction costs: S$17,492
Realised profit/(loss) excluding dividends collected: S$700 or 4%
Realised profit/(loss) including dividends collected: S$1,400 or 8%
This result is worse than the unrealised profit/(loss) performance on our ETF portfolio. Not forgetting we are still stuck with a number of loss-making positions especially on the oil & gas and telecommunication counters. It’s annoying when this happens. I might as well have saved myself all that trouble of researching, analysing & monitoring the various counters and just pushed our cash funds into the ETFs.
It’s a good thing we are still relatively young and have time to make the necessary corrections to our investing strategy. I can’t imagine having to make changes when we are older, have even more financial commitments and lower ability to take financial & career risks. Anyway, we still have a long way to go in our portfolio re-construction efforts but the benefits should materialise eventually.