March 2022 – Portfolio Transactions and Updates

JC Project Freedom Journey Towards Financial Freedom

On the 10th of March, my itchy fingers clicked on the buy button. I bought 200 shares of 9618.HK JD.com at HKD 235/shares and 200 shares of 700.HK Tencent at HKD 384/shares. JD.com announced results in the evening. The fateful night dropped 16%. I will share more of this result in a separate post. For the last few months, I did not do any options trade.

In short, the general expenses rose 89% due to share-based compensation expenses and fulfillment costs went up 10.7%. The firm incurred USD 816.2 million net loss in the fourth quarter, compared to a net profit a year ago. The quarterly revenue grew 23% year over year which is the slowest growth. The market does not like all this negative news.

Source: Tradingview

In summary, I feel like an idiot buying at the wrong timing. This has been a horrible month for investors as Russia invades Ukraine. The market plunged south. Oil price goes up, inflation goes up, ordinary lives suffer as a result. I pray that China will not show up on Taiwan’s shores, it will cause a greater divergence in the world forces.

Analysts are recommending avoiding loss-making companies. Everyone is selling tech stocks. Everything is falling to the ground. Everything needs a hard reset. I have around SGD350k left as financial ammunition. The rest are fully vested in businesses and loans to a friend. Overall portfolio drops around -11%. My paper loss is an amount close to a BMW price in Singapore. I don’t drive. I take public transport and do not own a condo. This feeling sucks. I could have enjoyed a BMW or paid for a condo down payment. Stingy scourge saves all the money to put in the stock market and does not enjoy life. That’s me.

I will continue to practice dollar-cost averaging to buy ETF, China stocks, and continue to buy more growth stocks (big cap). Our time horizon is long. There is time for the business to compound and grow.

I have experienced many crises.

2008 – Global Financial Crisis – I saw my small net worth drop 40%
2008 – 2012 European Crisis
2011 – Japan Fukushima nuclear crisis
2015 – Chinese stock market crash
2020 – COVID-19

Whenever there is a crisis, I just close my eyes and continue to invest. Whenever I get my salary, I will just throw it into the stock market. This is the way.

Mando Way This Is The Way GIF - Mando Way This Is The Way Mandalorian GIFs
source: tenor.com

The bulk of the financial ammunition will be kept for VT (Vanguard world ETF). I am getting old and I want to have more time for other things. I think putting them in VT is easier. I don’t need to stock pick and it is diversified. I don’t think VT will drop to 0 during my lifetime. I never expect oil prices to drop to 0 but I have seen it before. Nothing is impossible. That’s why it is called Black Swan.

Source: EIA

Nobody knows what the future will hold. Nobody has the crystal ball. Growth stocks may not be performing at the moment but that does not mean there won’t be the next Amazon among them. It is about the time horizon of your investment. That’s why it is important to have a portfolio to diversify the risk and different permutations with age groups. When you are older (say for example 55 years old) and your portfolio is sufficient for your retirement, why will you want to take more unnecessary risks? It is important to derisk and shift more money into lower-risk investment tools. You need to understand your life stage and what your financial situation is.

While we may be feeling upset about portfolio losses, we need to be grateful that we have our health, our family, food and can sleep peacefully at night. While in another part of the world, hospitals were destroyed, civilians are running out of food and water, running from invasion. There are many things to give thanks for. Pray for Ukraine, pray that Russia will stand down and peace to return to the world. We still have the COVID-19 virus lurking around, causing havoc to many lives in the world.

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