Portfolio Transactions (July 2020)

Updates for my portfolio for July 2020

Update on two things I am working on right now. 

The project I am working on is in a niche that I realised there's more and more competition in the space. I think it might end up the same fate as my book but it is probably still fruitful as it helps my friends and I get to learn new things. I finished the outline and doing some editing now.

I have submitted my side gig assignment and I have received quite a lot of feedback which reveals a large gap of what I don't know and things to improve/work on. Even doing the first assignment, I realised I have learnt quite a bit. Let me try to address their concerns and see if I can get it out. I think it will probably take me some time until I can produce a decent quality like the ones wish to achieve.

There's probably another piece of news I am anxious about, but I am in a 50:50 as I would expect it comes with a huge drain of time and steep learning curve. But as they say, take it a step at a time.

• Sell PSQ 21 Calls at 0.15
• Reasons 
• Just getting some spare change.
• Might considering to just take those losses and go. But I haven't figured out what would I switch it to.
  

• Buy Ping An Insurance Group at 83.4
• Reasons 
• I was actually looking at Chinese banks but I was concerned about regulation. I kinda prefer it like how Hong Kong and Singapore regulate the financial sector which builds trust and security. So I added Bank of China (HK) previously.
• Interestingly, I found something perhaps more comparable what we have here in the finance sector but it isn't in the banking sector. In fact, it is in the insurance sector.
• Ping An seems to be one of the more profitable one with increasing market share using technology to expand their ecosystem as well as premium.
  
• Similar to my idea of riding on China's growth, there's more to this:
• China has the largest protection gap globally
• China is experiencing ageing population and a fast growing middle class
• China also has a lower than average insurance penetration and density
  
• I bought it at fair valuation of about 2 PB which is slightly below the 5 year fair range of 2.14 PB (1.2 to 3.4 5 year range).
• That being said, doing all these analysis, I kinda wonder if I read too much and drank kool aid with confirmation bias. Well, time will tell. 
• You can read more from my full article here: https://seekingalpha.com/article/4373133-ping-insurance-buying-opportunity
  

That's all for my money for now.

The markets are undecided due to various things such as the coronavirus and potential trade war between the US and China again.

The market ended with a fall nearing the end of July.

The local Singapore banks might get a decent valuation again and I hope to add more (both for CPF and Cash). Silverlake Axis is finally recovering though not significant enough. Hopefully, we get a deeper correction and I can initiate more positions in the payment/finance as well as tech segment to buy (it seems harder day by day, tech is like so insanely strong).

Conclusion

Tech has pushed VT YTD into much better results, despite the other sectors lagging.

My portfolio YTD is now down ~10%, with the long term XIRR now -1%, probably due to weakening FX from HKD and USD.

I am actually questioning myself for the past few months about the viability of my portfolio.

My cash position is currently at about 9.6%. Probably keep an eye out for opportunities while conserving cash (there's still a balance transfer the size of about 10% of my portfolio ready).
 

Related Posts:

• Portfolio Transactions Update (June 2020)
  
• Portfolio Transactions Update (May 2020)
• Portfolio Transactions Update (April 2020)
• Portfolio Transactions Update (March 2020)