Welcome back folks.

This is the last portfolio update for 2020.

I have been doing a lot of adjustments and trades in this portfolio for the last few months and December was no different.

The portfolio is now done with its “soft launch stage”, and will now officially run for 10 years from 1.1.2021 to 31.12.2030.

Now, lets move on to the Dec 2020 update and my goals for 2021.

Source:- Cimb I-trade- Account

Summarized analysis

  1. I have increased the capital for this portfolio to RM 300,000. (It was RM 250,000 until last month).
  2. The portfolio is now at an unrealized loss of RM 31,148. This is the highest unrealized loss since inception, thanks to the crash of glove related stocks in Bursa.
  3. My biggest holding in this portfolio is Supermax, at an unrealized loss of RM 24,678. Lets see if there will be a rebound in 2021. (Wont hesitate to average down if prices crashes even lower in 2021)
  4. On a positive note, the realized gain is at RM 28,395 (Nov- RM 19,599). The huge increase was mainly due the disposal of shares in CSC Steel and Jaycorp (again). I also had the opportunity to do a short trade on MYEG.
  5. Sold all 20,000 shares in CSC Steel at RM 1.22 (cost- RM 0.995) per share 14th December, and realized a capital gain of RM 4,500. In addition, disposed off 15,000 shares of Jaycorp at RM 1.68 (cost RM 1.48) per share for a capital gain of RM 3,000. (I have since reinvested in Jaycorp, again !!!!)
  6. A total RM 1,320 in dividends was also received from CSC steel, and since I sold Jaycorp after dividend Ex date, and received RM 975 in dividends on 30th December.
  7. For MYEG, it was never in the portfolio in November. 10,000 shares was acquired at RM 1.63 per share on 2/12/2020, and duly sold off at RM 1.88 per share on 14th December 2020. Total profit for the 12 days holdings were RM 2,500.
  8. In addition, I also sold off a number of shares in my portfolio for much smaller losses. I cleared off Favelle Favco, MBMR, Matrix and Cimb from my portfolio, in order to free up some capital and to buy shares in new companies in my shortlist.
  9. In the month of December, I added positions in LPI (Insurance), UDPT (Plantations), FPI (Manufacturer of speakers), Top glove, and Panasonic. All companies are expected to be good dividend paymasters.
  10. The total cash balance available for redeployment in 2021 is RM 75,537. Its gonna be an exciting 2021, will be on the look out for opportunities.
Source: Cimb itrade account: Total realised gain till to-date.

Dividend highlights and Reinvestment of profits.

  1. Total dividends collected since portfolio inception is now RM 10,304 (November- RM9,329) . The only dividends collected this month was RM 975 from Jaycorp on 30th December. Happy with a five figure dividend in 2020, but fell short of meeting my target of RM 12,500.
  2. To conclude, The total realised profit from this portfolio is RM 28,395 (cap gain) plus RM 10,304, is RM 38,699. I did a rough calculation on the transaction costs in incurred since I started this portfolio and I derived a rounded up figure of RM 3,000. This leaves me with a total net profit of RM 35,699.
  3. I have already reinvested these profits to buy some “free” shares, and have added positions in some (defensive) dividend stocks to make used of compounding gains.
  4. They are Hup seng, Attrium Reit, and Kip Reit. I have highlighted them in red for me to keep track of the “free shares” for the next 10 years.
  5. Total invested in these shares amount to RM 34,840. (Refer to table for more details).
  6. Below is a summary of all the dividends I collected for the whole of 2020.
Breakdown of all the dividends collected for 2020, since portfolio inception in March 2020

Conclusion

I have to admit that I have done too many trades and transactions in this portfolio, all which was part of my experimentation stage. I did go overboard with this one.

Moving forward, the number of trades will reduce a lot. Although I will not hesitate to lock in any capital gain that may arise, to reinvest the profits in new dividend entities in my watchlist.

So, Lets discuss about 2021.

My total dividend target for 2021 is RM 15,000. (5% of RM 300,000). I will modify the goal if I am to increase the capital amount next year.

As usual, I do not have any targets for capital gain, because I will take them as a sweet bonus. (Silently hoping to lock in some capital gain next year).

In addition, I also hope to get compounded dividends from Hupseng and the 2 Reits in my portfolio.

Its not going to be a large amount, but I am very excited about this, because beginners get to see how gains can be used for compounding.

On a side note, I am still finalizing another portfolio to be presented in this blog.

Currently, leaning towards unit trusts, since not many of my blogging friends are not writing about this. Will give you an update next year.

Finally, here we are at the end of a yet, another exciting year. Happy new year to all readers, and hope you have learned a thing or two from my sharing.

I wish you all the best for 2021.

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