Investment Portfolio

This page will provides the overall details of my investment portfolio.

Last Updated: 15 February 2017.

Investment Policy Statement

Objective: Financial Independent (FI) by 40. FI means having enough passive income to cover my family’s expenses excluding wants like holidays and hobbies. Passive income will be generated from a combination of rent, interest and dividend income.
Philosophy: Value Investing. Invest in assets that provide the most value in terms of return relative to risk. Return includes time taken to research and manage investments. I don’t believe in superannuation so I completely ignore it.
Asset Allocation: 65% Equities. 35% Real Estate. No bonds, don’t need the stability at the moment. Flexible with allocation somewhat. Allocation to equities may decrease and be replaced with cash depending on market cycles. Consider rebalancing once a quarter.
Accounts: Use of a discount broker with the lowest fees. Real estate will be restricted to Australian residential properties.
Target Allocation: Equities Allocation. 50% low-cost Index ETFs, 30% Listed investment companies (LICs) and 20% Single Stocks. Having have my equities allocation in index funds reduces the time burden. LICs require a bit more time to manage but a geared towards capturing opportunities in market inefficiencies. Single stocks allocation allows me to still select stocks that are substantially undervalued every now and then.

Equity Investment Criteria

Based on my investment policy above. I have three categories in my equities allocation: Low-cost Index ETFs, LICs and Single stocks. I will list the investment criteria for each that I will follow.

Low-cost Index ETFS: Try to buy at monthly lows. No attempt to time medium to  long term market cycles.
LICS: Buy when share price is lower than the pre-tax net tangible assets of the LIC. No attempt to time medium to  long term market cycles.
Single Stocks: Only buy when stock is trading at a 20% discount to valuations.

I suspect the funds I have allocated to single stocks will sit in cash for extended periods of time. This cash will be used to invest heavily during market corrections/crashes.

Investment Performance Snapshot

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Investment Portfolio Updates


Disclose:: I am/we are do not own or intend to purchase any of the stocks lists in this article in the next 72 hours since the last updated date.

Disclaimer: : I wrote this article myself, and it expresses my own opinions. I am not receiving any compensation for it. Please note that all investments carry some risk. You should be aware that the value of your managed investment may not increase as quickly as expected, if at all, or that the value may go down.  I have no business relationship with any company whose stock is mentioned in this article.