Final post for 2018 probably~
fully divested today, my last tiger general... sad to let it go but I have to follow my research, my analysis and my plans.
in 2016 there was much fears of rate hikes, reits were sold down badly and I took the opportunity to picked up 5 highest quality reits with best track records which I named the 5 tiger generals.. on average I paid below 1 times book value, yield on cost was around 6%+ , total capital committed was around 150k, about 30k average on each reit.
then came the big recovery in 2017 in which reits gained a whopping 20% and I started to slowly take profits on my reits position, slowly divesting one tiger general at a time.
On average I made a capital gain of a about 15% excluding dividends so overall I am quite happy with my picks and returns in this segment.
Looking forward I have a bearish outlook on reits, which I may be wrong. I have written much in my past posts in details. https://www.investingnote.com/posts/1039890
I still hold two small and in-significant reit position on $Mapletree NAC Tr(RW0U.SI) and $CapitaR China Tr(AU8U.SI) which I wrote about previously, these 2 reits make up less than 3% of my portfolio.... they are more of a value play as they trade at 15% discount to book and 7% yield.
On the flip side, I do not have telcos, I not have much dividends stocks anymore... my focus now is mostly on small cap fast growers like $HRnetGroup(CHZ.SI) $PropNex(OYY.SI) and large cap slow growers like $OCBC Bank(O39.SI) $JMH USD(J36.SI)
So I am currently mostly into grow stocks and today I added more propnex averaging up as I felt positive of the recent insider buying spree as both CEO and his family member aggressive open market purchases at 55 and 58 levels is a very good sign. I also wrote much in details about propnex as I believe its a solid small cap pick, similar to how I picked hrnet
STI most probably already bottomed out at 3100 level, so I am done shopping being 100% fully vested and will not be posting much for the rest of the year, will just hold and ride it out and wait for STI to recover past 3300 healthy levels.
Lastly I will be very busy for the remaining 2018 as I will mostly be overseas as I venture into a new area, agriculture related business in Vietnam as I believe with the trade war, many orders will shift out from china and into asean countries such as Vietnam, Thailand, Malaysia etc
Real life recent example
I recently bought a pomelo farm,
Location 2 hours north from Hanoi
Cost about 30k SGD
Size about a football field, slightly bigger
Comes with a 2 story high but slightly old building which serves as a house/domintory for the worker
Hired 2 workers to do the cropping and harvesting, wages about $200 sgd each
Based on my business analysis, conservatively a pay back period of 3 years
This biz was sold to me by an old couple, they wanted the lump sum to go back to hometown for full retirement
so my time there mostly will be scouting for bargains in the agriculture segment to buyout and manage, hopefully after half a year when stable already let it auto pilot.
Have a good year ahead, see ya guys in 2019 ^_^