Reviewing My Portfolio: Strengthening My Conviction In Diversification

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First half of 2024 have passed and previously I did a quick review of my portfolio in the 1st quarter and 2nd quarter in my earlier posts.  I classified my portfolio into 3 components, namely SG REITs, SG Non-REITs and US Growth.  An overview to the performance of my portfolio for the past one year is shown below:

Things to note:

1)     SG REITs' performance seemed stable, but that is due to consistent injection of small amounts of capital through dollar cost average (DCA) into the portfolio along the way.  Without the capital injection, I believe the drop will be quite significant, especially when the performance of the Mapletree family of REITs (which were supposedly the blue chip REITs) were way below expectations, and their share price has not really found a bottom.

2)     SG Non-REITs' performance were quite stable for the first half of period under review.  The spike in value on week 42 is due to large capital injection and portfolio rebalancing to include Development Bank of Singapore (DBS) and United Overseas Bank (UOB) into my portfolio.  Thereafter, the strong performance of Singapore Banks and Singapore Technologies Engineering helped boosted my portfolio value to new highs. 

3)     US Growth's performance has been spectacular, with the big tech companies hitting new highs time after time this year.  The plunge in market value between week 23 and 30 is solely due to partial liquidation of my portfolio (which I regretted to this day).  If I did not sell any shares during that period, I believe the portfolio value would have been up by more than 50%.  Nonetheless that was the decision I made at that time and I shall take it as a lesson learnt.  By the end of first week of July, all the stocks in the US Growth Portfolio are in the green!  

I am writing this post because recently the bashing of dividends investing has returned.  As a self-proclaimed dividend/income investor with more than 40% of my portfolio (based on market value) in REITs, I would like to highlight that, indeed, REITs are definitely underperforming now, and one can even say that REITs have crashed as compared to US stocks, which are hitting new all time highs.  However, everyone has their own investing philosophy and methodology.  Why the need to bash others' methodology?  I do not understand their mentality.  Personally, I would like to emphasize the importance of diversification, and my portfolio's overall performance has showed over the past year, diversification has allowed my portfolio to remain resilient, and even register some capital appreciation, and at the same time compound my annual dividends along the years.  What is most important is that I am currently comfortable with my portfolio.  Yes, it is not a multi-bagger because I did not all-in Nvidia, neither did I go all in passive and diversify via ETFs, but that's just what I am comfortable with (sounds like what a loser might say?  Well treat me as a loser then, I do not really care as it is my money, my emotions that I have to deal with, not other's).  To some, this post may seem like a self consolation because if I have injected all my capital into US Growth Portfolio instead of into the REITs when the rising interest rates cycle starts, I would achieved a more astounding growth in my portfolio value.  Well, I do not deny that, but I know myself.  I am not one that can win big in the markets, and historical trades have told me that when I go speculative, I get burnt.  Win some, and lose some, with dividend income is what worked for me, and it definitely helps me sleep well at night, not having to worry about flash crashes, though I will also not be a millionaire overnight.  I guess for me myself, I know what works for me best and what does not.  I would say, I like the way it is now.  Slow and steady, compounding towards my goal.  

Latest updates:

In the latest speech by Jerome Powell, he sounded rather dovish, and that helped the markets to expect more than one rate cut in 2024 (yup same old story of expectations versus reality).  Personally I will just treat these positives as bonus, and will not buy or sell according to these news.  Nonetheless, the positive sentiments among investors generated by Jerome's speech has caused a mini rally in REITs, which is definitely a welcomed move since my REITs portfolio has been 'suffering' in the drought for a very long time!  This has helped my portfolio market value to reach a new high of SGD 563K (got to keep this as record here because as always, once my portfolio hit a new all time high in market value, some form of correction will occur)!  For now, Barista FIRE, here I come!

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