Friday, December 30, 2011

How did Jac fare for his picks for 2011?

This is extracted from my post on 18 February 2011.
These are the companies that I have chosen to invest in.

The companies here are not listed in order of merit.
1. Popular Holdings. Singapore
2. Cerebos Pacific. Singapore
3. Walt Disney. US
4. Starbucks. US
5. McDonald's. US
6. Citigroup. US
7. OCBC. Singapore
8. UOL. Singapore
9. Duke Energy. US
10. Las Vegas Sands. US
Reasons for choosing these 10 companies:
1. Popular is strongest bookstore group in the heartland. Dividend yield can be 6% a year.
2. Cerebos Pacific. High dividend yield of about 7% to 8% per year.
3. Walt Disney. Acquire Marvel to be the company with the biggest number of cartoon characters. Growth stock.
4. Starbucks. Number 1 coffee in US. started to open stores in Japan and India. Opening into single serve area.
5. McDonald's. World number 1 fast food chain. Who does not know McDonald's in Singapore? My children eat their hotcakes or burgers once a week.
6. Citigroup. Growth stock. Balance sheet has improved under the leadership of Pandit.
7. OCBC. Growth stock with dividend yield of about 3.5%. It's growing presence in Indonesia.
8. UOL. Growth stock in residential, commercial and hotels sector. Great leadership Wee Cho Yaw.
9. Duke Energy. going to acquire progress energy to become biggest energy provider in US.
10. Las Vegas Sands. Growth Stock. Building one more casino in Spain.

So how do I fare for the whole year of 2011?
I shall use the share price on 03 January 2011 to gauge the winners and losers.
Let us look are the Singapore shares first.
1. Popular
    Price on 03 Jan - $0.165     Dividend for 2011 - $0.01
    Price on 30 Dec - $0.163     Loss - $0.01

2. Cerebos Pacific
    Price on 03 Jan - $5.25       Dividend for 2011 - $0.32
    Price on 30 Dec - $4.96       Gain - $0.03

3. OCBC Bank
    Price on 03 Jan - $9.41       Dividend for 2011 - $0.30
    Price on 30 Dec - $7.83       Lost - $1.28

4. UOL
    Price on 03 Jan - $4.52       Dividend for 2011 - $0.15
    Price on 30 Dec - $4.00       Lost - $0.37

Singapore blue chips lost 17% for the year 2011, while this Singapore portfolio makes a loss of 8.4%. This portfolio actually beat the STI index by 8.6%.

Now let us see the US stocks
5.   Walt Disney
      Price on 03 Jan - US$37.82       Dividend for 2011 - US$0.60
      Price on 30 Dec - US$37.36       Gain - US$0.14

6.   Starbucks
      Price on 03 Jan - US$33.25       Dividend for 2011 - US$0.56
      Price on 30 Dec - US$46.17       Gain - US$13.48

7.   McDonald's
      Price on 03 Jan - US$76.60       Dividend for 2011 - US$2.53
      Price on 30 Dec - US$100.74     Gain - US$$26.67

8.   Duke Energy
      Price on 03 Jan - US$17.86       Dividend for 2011 - US$1.00
      Price on 30 Dec - US$22.00       Gain - US$5.14

9.   Citigroup
      Price on 03 Jan - US$49.00       Dividend for 2011 - US$0.03
      Price on 30 Dec - US$26.39       Lost - US$22.58

10. Las Vegas Sands
      Price on 03 Jan - US$45.59       Dividend for 2011 - US$0.00
      Price on 30 Dec - US$42.79       Lost - US$2.80

The price for 30 Dec is correct as at 1am Singapore time. There will be some changes to be made the the trading ends in the US.
As for the US side, the blue chips were flat for the year 2011. This portfolio make a gain of 5.73%.

In total, the mixed portfolio has made a profit of 8.33% while the indexes made a lost of 17%. This means that this portfoliio has beaten the indexes by 25%. Consider a job well done for the novice investors.

Although I use closing price on 3 Jan 2011, it does not mean that I buy on that day. This date is chosen for calculation only. In real life, value investors have a personal valuation of the company. We only buy the shares when the stock has taken a beating, else we will just sit back and do not take any action. After the Japan earthquake and the downgrade of US credit, many share has been affected and prices nose dived. That was the time when the value investors took action. 

My personal US portfolio included some shares above, has increased 35.6% in value for the year 2011. I sold my Citigroup shares just before they did a reverse split and I reinvest the money into another stock and I am still holding on to Starbucks. That's the reason why I did not lose any value although Citigroup has lost 46.1%.

My personal Singapore portfolio included some share above, has increased 5.3% in value for the last quarter of 2011. I only started buying Singapore shares in September for the year 2011. That is why I am quite happy with the 5.3% growth in just one quarter.

I am looking forward to increase the value of my invested capital by at least another 15% in 2012. I hope you can do that too. 

In my next post, I will talk about the old couple's portfolio and how they have fared for the year 2011.

Happy investing and have a wonderful new year.


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