2022 Investment Review

2022 was marked by significant uncertainty, market shocks, recurring pandemics, rising global inflation, geopolitical conflicts, energy crisis and so on. All of them make investing appear challenging. As investors, we are struggling to figure out the impacts of uncertainty factors and enormous changes. It is essential that we learn from both our losses and our gains together. With the end of the year approaching, it is a good time to review our portfolio.

My investment performance in 2022 is as follow:

My rate of return in 2022 is negative 14.59% and I have won NASDAQ by 17.77%.

I have done 57 trades in 2022 of which 27 are profitable trades, 27 are break-even trades and 3 are lost trades which made my winning rate to be 47.37%.

My top 5 most profitable stocks are as follow:

1)$VENTURE CORPORATION LIMITED(V03.SI)$ 

2)$CapitaLandInves(9CI.SI)$ 

3)$CapLand IntCom T(C38U.SI)$ 

4)$AEM HOLDINGS LTD(AWX.SI)$ 

5)$SINGAPORE EXCHANGE LIMITED(S68.SI)$ 

The 3 stocks which I have lost money are as follow:

1) Nanofilm

2) Keppel DC Reit

3) ZIM Integrated Shipping Service

I have bought Nanofilm at S$6.19 in August 2021 under the influence of my colleague and the stock analyst. I have tried to dollar cost averaging (DCA) a few times when the share price continuously dropping. When the share price has dropped by 20% from my cost price, I have decided to sell it in Jan 2022 to cut loss. I am not sure whether it was a blessing in disguise, if I have waited until today then I sell the share, the share price would have dropped to 77% below my cost price. 

It took me almost 1 year to recover back all the losses from Nanofilm from investment profits and dividends income. After going through the painful lesson, I have learned the following:

1) To diversify. (Do not put all the eggs in one basket)

2) Invest quality stocks with wide moats (moat refers to a company's ability to maintain competitive advantages to protect its long-term profits and market share from competitors.)

3) Be patience as investment is a long-term process which cannot make us rich overnight like gambling or buy lottery.

4) Do not listen/follow blindly our friends/colleagues/stock analysts.

5) Do our own research such as checking the historical prices, revenue growth, earning per share, dividend & dividend yield, market capitalization, price-to-book value (P/B), price-to-earnings (P/E) ratio, earnings per share (EPS), return on assets (ROA), return on equity (ROE), etc

6) Set target price to buy or sell

7) Use only spare/extra cash to invest.

8) Read news

Most of the stocks in my portfolio are REITS such as the following:

1) CapLand Ascendas Reits (A17U)

2) CapitaLandInvest (9CI)

3) Keppel DC Reits (AJBU)

4) Keppel Reit (K71U)

5) Frasers Centrepoint Trust (J69U)

6) Mapletree Logistics Trust (M44U)

7) Mapletree Industrial Trust (ME8U)

8) Mapletree PanAsia Commercial Trust (N2IU)

The reasons why I invested in REITs is because of their high-yield dividends as they are required by law to pay out at least 90% of their taxable income to shareholders each year. I have been continuously receiving the dividends regularly every quarter or twice yearly from the REITs which is an excellent passive income source. It has been a turbulent year for the REITs due to the surge in utilities costs, high inflation and aggressive rate hikes, the share price of the REITs has been greatly affected. Even though the shares prices have been fallen drastically, I will continue to hold on to it as a long-term investment as I believe the share price will go up again when the economic has recovered.