Thursday, October 11, 2012

Portfolio Review - Oct 2012


The purpose of BC portfolio is to receive stable income (hence seldom buy or sell, and we selected the stable stocks) and at the same time making comparison against my friend's single stock position and the one who park the fund in Bank's FD. The is how we manage risk by creating a portfolio to protect our capital against choppy market.

We started with RM242,000 on 19 Jun 2011, purchase only three stocks:






NameCost Price
(RM)
Total shareMarket Value
(RM)


Maybank8.809,00079,200.00

Maxis5.5014,80081,400.00

Arreit0.9189,20081,172.00

Total

241,772.00







As of 4 Oct 2012, the position look like this:







NameMarket Price
(RM)
Total shareMarket Value
(RM)


Maybank9.059,00081,450.00

Maxis7.0014,800103,600.00

Arreit0.9389,20082,956.00

Total

268,006.00








On the income side (total dividend):








Dividendsen


Fr last Q

26,144.00

Maybank6/4/1236.005,328.00

Maxis9/28/128.007,136.00

Maxis6/29/128.007,136.00

Arreit10/8/121.801,605.60

Arreit6/29/121.811,614.52

Total

48,964.12








Comparison with my friend's Single Stock:














NameMarket Price
(RM)
Total shareMarket Value
(RM)


NameMarket Price
(RM)
Total shareMarket Value
(RM)


Jobst2.3686,430203,974.80

Maybank9.059,00081,450.00







Maxis7.0014,800103,600.00







Arreit0.9389,20082,956.00







Total

268,006.00












With this BC portfolio, the capital is almost protected and we manage to grow it from RM242,000 to RM268,000. Whereas holding a single stock of Jobst, due to market down trend the capital now only worth RM203,974.80. Though our intention is not to sell any stocks in near future, however, if we were need to do that due to what ever reason, we can liquidate more funds with our BC portfolio.


Let look at the total dividend received comparison for Single stock and BC portfolio:













Dividendsen RM



DividendsenRM

Fr last Q
4,321.50


Fr last Q

26,144.00

6/29/121.501,296.45


Maybank6/4/1236.005,328.00

9/28/121.501,296.45


Maxis9/28/128.007,136.00


Total6,914.40


Maxis6/29/128.007,136.00







Arreit10/8/121.801,605.60







Arreit6/29/121.811,614.52







Total

48,964.12












The BC portfolio's dividend is almost 7x highest than single stock holdings.

The other friend who put the money in Bank's FD, his return is only RM7,744 (principal of RM242,000 with 3.2% FD rate p.a.).

Future plan: We intend to purchase additional shares of the 3 stocks if market drop, or add one more stock to further diversify our holding of stable income portfolio.



2 comments:

  1. The income figure very impressive indeed :)

    ReplyDelete
  2. Hope you will benefit from it as well!

    ReplyDelete

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