Heartland Boy 2019 Stock Performance Review

2019 is behind us and it is time for an annual review of Heartland Boy’s stock portfolio. The metric used to measure the stock performance would be Internal Rate of Return (“IRR”) and the relevant benchmark is the Singapore Straits Times Index (STI Exchange Traded Fund). Having a benchmark is important as it allows Heartland Boy to track and compare his active investment strategy. Heartland Boy will also be including his cash component when calculating his stock performance. Returns will include both realised and unrealised transactions. Without further ado, let’s get straight down to business.

Diagram 1: Heartland Boy’s Investment Track Record Vs STI

From the table shown in Diagram 1, 2019 was another disappointing year for Heartland Boy. For the third year running, he has trailed STI’s returns. There is now serious thoughts of switching over to passive investing completely. His overall XIRR since beginning 2014 stands at 1.7% as compared to STI’s 3.2% over the same period. Here is the detailed breakdown of the individual equity counters that contributed to his set of results in 2019.

Diagram 2: All equity transactions for Heartland Boy in 2019

There were some interesting lessons that he learnt when investing in 2019, which should make him a better investor going forward.

1. Cut Loss On Eagle Hospitality Trust

Heartland Boy purchased Eagle Hospitality Trust at $0.555 but sold it at $0.475 a few days later as it triggered his stop-loss of 15%. Given the stock price of EHT today (which has since recovered to around S$0.55), it may seem foolish of him to have cut loss so quickly. However, the stock plunged to a low of $0.42 the day after he cut loss. The emotional rollercoaster would have been one hell of a ride to embark. On hindsight, he would probably still do the same thing as being disciplined about his investment process was the painful lesson that he learnt last year.

2. No Circle of Competency In Mining Stocks

Heartland Boy had invested in mining stocks and realized capital losses on all occasions. Specifically, he had invested in Geo Energy and CNMC Goldmine twice over different periods and lost monies. This led him to conclude that no matter the amount of time he spent on research and due diligence; he simply has no circle of competency in this area. Therefore, he would avoid this industry going forward as Warren Buffett advised investors to always stick to their core competencies.

As we approach 2020, it seems like signs of a recession are looming over the horizon. Therefore, it is very important to thread with caution. Here’s a list of stocks that are interesting Heartland Boy at the moment:

Diagram 3: Heartland Boy’s shopping list for 2020

That’s it for the review of his stock performance in 2019!

Disclaimer: The information contained herein is the writer’s personal opinion on his blog and do not constitute an investment advice, an offer or solicitation to subscribe for, purchase or sell the investment product(s) mentioned herein.