Dear all, the theme for 2017 is to retreat when the market is good. There are various investment mistakes, but we are glad they are not crippling. As mentioned in 1H report, we sold YZJ and Venture for 30% and 40% profits. They turned out to be a 2 baggers and 3 baggers respectively. We are yet again humbled by the market and acknowledge our lack of competency in using trailing stop to protect our profits. We apologized.
Yet, it’s not all doom and gloom. Our total portfolio size has increase from 85K to 106K. Last year we have vested capital of 42K worth 44K. As of today, we have 39K of vested capital worth 41K. We recently exited Lee metals at negligible profits, and hold cash. Total cash holding is 65K.
It was a Bull year for STI, we could have done better, but will never throw prudence out of the windows.
There were many reports about sustained rally in the market, driven by strong economic recovery and the US tax remake boast.
The fact that we are holding 65% cash mean we see more risk than opportunity ahead. We could be wrong. If for no other compelling reasons, the fact that we are 9 years into this bull, we would think a pullback should be inevitable and happening soon, as valuations are hardly attractive at current level, although there are pockets of gems which we hope to exploit if it conincides with the general correction of market.
In the 2H of the year, we sold Lee metals, some of silverlake axis for a small profit, and bought M1 and Raffles Medical Group.
Dividend collected for the whole year is $2170 as compared to $3849.
However trading gain in 2017 was $4700 as compared to NIL in 2016. And we are please that unrealized profits for portfolio remain in the green for 5%.
Total returns on Assets in 2017 is 6.5%.
We expect lower returns in 2018.
Beneficiaries added include Sian Chay Medical Insitution and Thöng Chai Medical Insitution.
Company hope perhaps to do some direct volunteerism in some small ways in the year ahead.