Wednesday 23 December 2015

Review of 2015

2015 has not been a kind investment year. For this year, investing returns is negative 19.2% (due to the fall in Penguin and writing off fully China Fishery's value).

Despite the negative investment returns, overall value of my portfolio has increased by $19,000 to the region of $238,000. This is due to my tendency of saving a high proportion of income earned from work; this shows why at a young age, saving is a good habit because the magnitude in loss/gain from a small portfolio will be outweighed by the savings we add to it. 

However, as we get older, inadvertently our portfolio gets larger. Then investment returns becomes a greater influencing factor than savings. Hence,  that is why investing should start from young - we can afford to make investment mistakes, learn from them and not suffer the large magnitude of losses, which would have taken place when we are older.

For 2016

Nothing much will change. My prospecting of undervalued gems will still revolve around the company's cash flow generation ability. My expectation is that the O&G sector and their demand derived companies will continue to struggle due to the oil downturn. In addition, the office and retail sector will be affected by the over supply, especially when Guoco Tower opens in 4Q 2016.

On the blog front, I hope to come across interesting articles which will be worth sharing with readers as well as penning some saving habits articles instead of the usual company analysis.

Despite the gloomy economic outlook, this should not be an excuse for another year's of negative investment return. The twin pillars of investing and saving should work their magic and achieve a portfolio of $280,000

1 comment:

  1. Very admirable to see that you will be comfortably crossing the quarter mil mark in 2016. Keep up the good work!