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.
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.
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:
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.
Hi. Do you think you can do better than Stashaway , Syfe , etc? Frankly I am thinking of just going robo and focus on other aspects of life.
Give it one or 2 more years to see if its consistent? I would consider passive investment as well
Jason Tan says
How is the STI +9.2% this year? My uncle said it’s only about 3%
Anyways I liked your blog because I myself also invested in Far East H and Eagle H. I kinda in favor of Far East H. If you like U may also explore OCBC/ Aims APAC because the shares also operate in a DRP manner like Far East H .
I bought Eagle at 0.655 when it was cheap and it dropped to 0.44. NO cut loss, I added the same amount of stock I bought at 0.655 when price was@ 0.465 then i resale at 0.550*. Still down about 100-200 bucks.
Now the Auditor has got fired from Long Beach. The news was not really big surprisingly.
I’ve added back the shares at 0.545 immediately when the auditor got fired.
Hi, thanks for sharing your experience and views. Yes, I am aware of the news that the auditor got fired. I am more concerned about the insiders cashing out.
Anyway, the ETF started at 3.117 and ended at 3.276. Also distributed 0.12 dividends.
Your blog is really good do keep it up.
I’m still new to your site though.
Just wondering would you be trying Forex?
Thanks for reading my blog. I have no idea how forex trading works, so i will skip that.