Not withstanding 2018 has not been a profitable year for me, I have made several forward strides in my investment journey. Some of them are:
- I am fully invested now. Thus, cash is limited for any major change in investment strategy.
- I have built a portfolio that I am confident it will deliver 5% dividend yield a year.
- I tried out shares margin financing and successfully lifted my dividend yield. The total dividends received in 2018 is the highest that I have ever had.
- I have grown my index portfolio to more than double its value compared to start of the year by sticking to my regular monthly investment plan.
- I have maxed out my SSB entitlement
- I have received a lot more readers to my blog this year than previous, average views per month has doubled. The number of followers has also doubled. (Thank you to all of you!)
My game plan for 2019 is to continue to grow my index portfolio, collect dividends and maintain a 5% yield portfolio, subscribe SSB to the new max and increase average views per month in my blog further.
What I want to avoid doing this year is making a lot of trades. I want to be more an income investor than a trader especially now that I am fully invested and portfolio is yielding 5%. I started tracking the number of trades I made this year (thanks to the user-friendliness features offered by StockCafe, you must try it if you have not done so) and I aim to reduce the number of trades by 50% from this year.
I have lost money in 2018, like many local bloggers who had revealed it in their blogs and I am sure many other silent market investors too.
Using STI ETF as a proxy, the index declined by 11% but if you include dividend income, then the loss is reduced to 7.7%. A point to make here: The importance of dividend cannot be underestimated.
Some fellow bloggers also reminded me that it is not a good year but it is NOT a crisis year. Investors who have been in the market long enough would have seen worse.
For young and new investors, do not lose heart. If you have bought good dividend paying companies and you are not using borrowed money to invest, you can sleep well and ride out the market volatility.
I like to share two lessons that I learnt over the years :-
- Do not ever feel the panic to sell … that’s the worst thing to do in the market downturn.
- Stay invested through periodic and continuous investment in good companies during good and bad times and they will pay off
Take care folks and a Happy New Year to you and family.