As the year of 2018 draws to a close, I am taking a look back at the progress of the passive income journey I had for myself. Some things I gotten right…some were purely stupid mistakes on hindsight, and some were learning experiences. As I type this post, thoughts about investing ran through my mind. Some parts of investing I had done right, some were wrong mistakes that cost me money, but thankfully I survived this 6th year of investing so far. What are these issues? I go through them in the next paragraph below:
Buying Good Investment Counters
One part of my investing journey that I had gotten right is my purchase of Capitamall Trust. The leading retail real estate investment trust (or REIT) had been doing Asset Enhancement Initiatives (or AEI) for Tampines Mall and Westgate, which will be completed in 4Q18. In addition to that, Funan will be opening in 2Q19. So when all these properties are ready to commence business operations, theoretically speaking, the distributable income and DPU will rise. That should lead to a higher demand for this share, causing a rise in share price. Already, the REIT counter had risen to $2.28 as of 18 Dec 2018. My purchase price is less than $2.00, so my return of investment on my capital has been a good 16.23%. And that’s before taking into account dividends. Dividend yield is about 5% so as you can see, I had been making very good returns on this counter. If you are interested in this stock, the website link is here.
The existing shares of Suntec Reit that I am holding for now 6 years have been doing pretty well too. At a price of $1.83 as of 17 Dec 2018, I have a unrealised capital gain of 21.17%. And that is excluding the culminative yield of dividends that I received over the past 6 years. The link for Suntec Reit can be found here.
2 months ago, I bought MapleTree Commercial Trust to add in my portfolio. Since its only 2 months, its a little too early to tell how the stock will be doing. At a price of $1.70, I am already making capital gains of 3.66%. Its website link can be found over here.
Cutting my Losses by Selling Losing Counters
Another part of my investing journey I had gotten right is to have the guts to admit I have made a mistake and cut my losses. I had sold my Duty Free International shares when I had reached my risk tolerance. The shares are now trading at $0.198. Thank God that I made the right decision to sell them when the price is higher.
As mentioned earlier in this blog, I had sold of my Thai Beverage shares as I had reached my risk tolerance of -10% capital loss. Now the shares are trading at $0.59. I am thankful that I did not average down the cost of my shares like some other newbie investors do or I would be crying to the bank now.
Other Learning Experiences from my Investing Journey
I had also sold off my Sheng Siong shares earlier this year. The reason is that I do not want to stomach another 10% price loss as I had experienced in other shares.
Looking Forward Ahead
This year of 2018, I had made modifications to my investing portfolio. Here are the list of counters I had right now as of 18 Dec 2018:
- Suntec Reit
- Capitamall Trust
- Mapletree Commercial Trust
- Frasers Centrepoint Trust
- Lion-Phillip S-Reit ETF
As you can see, I am overweight on Singapore REITs or S-REITs. The reason is that I believe prime properties in land-scarce Singapore are limited in supply and there is demand for such good rental space. I am not forcing my opinion on you guys. My wish for this year Christmas for you guys reading this post is simple. It is to find out what works for you best in bringing passive income to your table and continue to enhance it to bring even more income on your table. As you can see from my blog posts, I have made mistakes in my investing journey and learnt from it to become a better DIY investor. I truly believe other people like you have their own journey in creating passive income and hopefully with some year-end reflection, can become more successful in your own journey. Hopefully, one day when you made it to retirement, you can then share your life story to the younger generation who will learn from the mistakes you made and inspire them to be successful as well.
Merry Xmas in advance to you guys.
Thanks for reading.
How did you do for this year 2018 in your passive income journey? Share your thoughts in the comments section below!