Will I “ALL IN” into Just One Stock for My Retirement Portfolio?

I believe many Singaporeans have read the interview regarding a Singaporean who sold his HDB and used all the proceeds to buy just one SGX listed company- Singapore Post.

I am not here to judge him, because I am in no position to do that. Is he wrong?  Maybe not, because I have heard of individuals and even YouTubers who kinda “all in” to one stock like Tesla, or some individuals who “all in” to cryptocurrencies as well.  So, I believe he is not the only one who did this, only probably the one who is public about it.

So which stock will I choose if I were ever 'forced' to put all my money into just one stock?  I will do things a little differently here, and instead, give top 3 choices of mine, 1 exchange traded fund (ETF), 1 real estate investment trust (REIT) and 1 company share.

1 ETF: Vanguard 500 Index Fund ETF (VOO)

VOO tracks the performance of the top 500 companies in the US.  This is a conservative approach, because by itself, VOO is a diversified investment, definitely a portfolio by itself.  It will never go to zero value, because whenever a company underperforms consistently, it will be dropped out of the S&P 500, and a better upcoming company share will replace it.  However, one small downside for me is its low dividend yield of only 1.45%, which is further diminished by the 30% withholding tax.  Some may recommend CSPX instead, which is Ireland-domiciled and hence has lower withholding tax, and it automatically reinvest all dividends.  However, do note that the expense ratio of CSPX is much twice that of VOO, which adds up long term.  For someone who prefers to dollar-cost average (DCA) into the share, VOO may be a better option.  Long term performance of the VOO is about 13.8% compounded annual returns for the past 10 years, which is definitely a good ETF for anyone's retirement portfolio.

1 REIT: Parkway Life REIT

Personally, Parkway Life REIT is definitely my top pick, as I had discussed my reasons in this post.  I believe in the ageing society, healthcare is indispensable.  Being the landlord of the 3 main private hospitals in Singapore, namely Mount Elizabeth, Gleneagles and Parkway East, these healthcare service providers are relatively stable and thus provide stable rental income to the REIT.  Long term wise, the share price of the REIT is also well supported and has increased by 4 times since IPO.  All these years, many people has mentioned that Parkway Life REIT is overvalued, but its strong manager and sponsor and superb performance has consistently allowed it to trade at a premium valuation.  The only downside to the REIT is its low dividend yield of around 2.45%, which is currently even lower than the risk-free Singapore Savings Bond (SSB).  So, why don't we just buy the risk-free SSB instead of the lower yielding REIT?  That is because after 5 years of holding on to the REIT, the dividend yield based on my average cost is approximately 3.5%, which will continue to rise when I continue to reinvest the dividends collected to lower my average cost.  This may not be attractive to everyone, but for me, I just have high conviction in this REIT, and I am more than happy to continue holding on to it.

1 Company Share: Singapore Technologies Engineering/ Microsoft

I admit, I cheated. I am going to pick 1 company share from SGX, and 1 from the global market.

Singapore Technologies Engineering

I am definitely a supporter of Singapore Technologies Engineering, that is why it is the largest non-REIT share in my portfolio, as shared in this post.  Being involved in the defense sector, and with Temasek as its largest shareholder, it is one of the most stable company listed on SGX.  Of course, it is not without volatility as it is also involve in the aerospace, engineering and maintenance business.  These sectors are affected by macroeconomic factors etc, but the defense business will be a good support to the overall business.  In addition, it has a rather satisfying 4% dividend yield, which provides a good, consistent quarterly income for me.

Microsoft

I was actually torn between Alphabet and Microsoft for this spot, but after much thoughts, I went with Microsoft.  Microsoft is a global leader in the technology sector.  Microsoft office are my daily staples for work, and it's cloud business Azure is the main profit generator currently.  Despite the poor dividend yield of 0.85%, which is not what I am chasing after for US-listed shares due to the high withholding tax, the high prospects of growth in Microsoft's business is definitely one not to be missed.  Together with Apple, Microsoft is one of the most well-liked stock held by major funds, which is clear to many in the recent bear crash.  Its share price has only dropped by approximately 24% from its high in 2021, which is little compared to more than 50% drop in share price of companies like Meta and Netflix.  I believe Microsoft has more room to grow, and so does its share price.

These are my "All-In" picks if I am ever forced to make a decision.  However, that is not going to happen anytime soon as I am currently happy with my personal portfolios (SGX Dividend Income Portfolio and US Growth Portfolio).  Will just continue to remain diversified, and dollar cost average into the market with the little cash I have.  Barista FIRE, here I come...!