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.
Didnt you guys just bought some of the ETFs you just sold?
That’s correct. We bought the SPDR STI ETF (ES3) and Nikko AM STI ETF (G3B) using automated monthly investing with Maybank Kim Eng, POSB Invest Saver and OCBC BCIP. These ETFs we buy every month are held at the banks or their nominees.
The ETFs we just sold were held in both of our Stan Chart Online Equities Trading Account. We wanted to clean up some of our investment holdings because the local and foreign ETFs were overlapping quite a bit. This would make it easier and more straightforward to manage since each of our Stan Chart Online Equities Trading Account will be used for specific ETFs purchases that do not overlap from now on. Besides, it doesn’t hurt to realise some of the profits on the ETFs we have purchased since 2016.
Hi,
Yes ETFs are the way to go for busy investors. Several stocks & shares bloggers have painted the wrong picture of picking winning stocks can easily be done, but in reality (researches have proven), for most of us, it is best to invest in ETFs.
Most bloggers also shared winning trades, but not losing trades. I hope readers also understand that our character, personality, financial position and goals matters in what stocks we invest and hold. Hence it does not mean that if A is good at picking stocks, B bought into the same stocks will make money. I happen to have a friend who is so good at investing but I cannot replicate his success. I already accepted the fact the we are different and have different investing styles. I just have to find the style which is most suited to me.
Yes, it’s difficult to make gains consistently with stock picking especially when you don’t have the time to do the necessary research & analysis. Agree that replicating a successful investor’s trades does not translate into making the same gains since we don’t get the full picture of his/her strategy. We just have to find an investing style that suits our individual characteristics and this can take a long time to develop.