Year 2021 was another exciting year for me in stock market investment. Many lessons and experiences are worthy to be recorded. Let's start from lessons with negative return to positive.
1. Top loser: Glove counters
Without be specific, for those who held glove counters at the beginning of year 2021 until the end of the year, the experience is very hard and valuable. From the mixed of opinions about Glove industries until the recent EPS that clearly shows how quickly supply-and-demand can be balanced in a short period of time in this world. As there is a possibility that the supply will more than the demand, the PEs of glove counters are in historical low level. This shows that Mr Market is pessimistic about the near future performance of glove counters as many new players have joined the parties recently. However, if the price (or valuation) is cheap enough while the products are demanded in the future, this may be a better option to buy related shares instead of kick-start own glove business for those who want to kick-start a glove business now. (p/s: as my quota for glove counters is full, I have no plan to in more in current situation/valuation).
As an individual who needs to wear mask, we experienced the price of mask from RM80++ per a box until RM12+- in few months. This is the benefit of economic scale for consumers!! Hopefully with economic scale, glove industries players can continue to produce affordable gloves with good net profits for their contribution to this world.
2. Potential: Steel counters
Recently, the increase of steel price caused related players who are well positioned have reported attractive profits. Nevertheless, with relatively low PEs in Steel counters, Mr Market may still believe that the increase of steel price are temporary. Due to relatively low PEs and well balance sheet, I still hold my steel counters even though they are around 25% discount from their recent peak prices. Nevertheless, I will keep find sufficient convincing reasons to divest this investment from time to time.
(p/s: similar investment situation happens to plantation counters)
3. Top Winner: Defensive
Consumer counters were the top winners in my portfolio 2021. They were not only providing steady dividend incomes during this uncertainty period; but also achieved attractive capital gains. As the interest rate is still low now, I still have no plan to realize these unrealized gain from my portfolio as the dividend yield is still much much higher than interest rate now.
4. Overall of my portfolio
Even though the net unrealized return from my portfolio 2021 was in net -2.34% loses on 31/12/2021, overall it should be positive after including dividend incomes and other realized profits. Hopefully next year my investment performance will be sustained as what I did in last decade.
Without be specific, for those who held glove counters at the beginning of year 2021 until the end of the year, the experience is very hard and valuable. From the mixed of opinions about Glove industries until the recent EPS that clearly shows how quickly supply-and-demand can be balanced in a short period of time in this world. As there is a possibility that the supply will more than the demand, the PEs of glove counters are in historical low level. This shows that Mr Market is pessimistic about the near future performance of glove counters as many new players have joined the parties recently. However, if the price (or valuation) is cheap enough while the products are demanded in the future, this may be a better option to buy related shares instead of kick-start own glove business for those who want to kick-start a glove business now. (p/s: as my quota for glove counters is full, I have no plan to in more in current situation/valuation).
As an individual who needs to wear mask, we experienced the price of mask from RM80++ per a box until RM12+- in few months. This is the benefit of economic scale for consumers!! Hopefully with economic scale, glove industries players can continue to produce affordable gloves with good net profits for their contribution to this world.
2. Potential: Steel counters
Recently, the increase of steel price caused related players who are well positioned have reported attractive profits. Nevertheless, with relatively low PEs in Steel counters, Mr Market may still believe that the increase of steel price are temporary. Due to relatively low PEs and well balance sheet, I still hold my steel counters even though they are around 25% discount from their recent peak prices. Nevertheless, I will keep find sufficient convincing reasons to divest this investment from time to time.
(p/s: similar investment situation happens to plantation counters)
3. Top Winner: Defensive
Consumer counters were the top winners in my portfolio 2021. They were not only providing steady dividend incomes during this uncertainty period; but also achieved attractive capital gains. As the interest rate is still low now, I still have no plan to realize these unrealized gain from my portfolio as the dividend yield is still much much higher than interest rate now.
4. Overall of my portfolio
Even though the net unrealized return from my portfolio 2021 was in net -2.34% loses on 31/12/2021, overall it should be positive after including dividend incomes and other realized profits. Hopefully next year my investment performance will be sustained as what I did in last decade.
Everything is uncertain in this dynamic world. Thus, portfolio investment is suitable for me who aims to have a good sleep while protecting the purchasing power of my hard earned money. All the best to my reader too.
That's all for today. More fascinating articles and sharing will be updated weekly in Xaivier Blog. So, you are welcome to subscribe our feed to receive our weekly updates
Written by: Xaivier Chia
That's all for today. More fascinating articles and sharing will be updated weekly in Xaivier Blog. So, you are welcome to subscribe our feed to receive our weekly updates
Written by: Xaivier Chia
P/S: The above sharing is solely based on personal insight and information that believed to be reliable. Your valuable feedback are very welcome.
