Heartlandboy.com recently celebrated its one year anniversary. One of the motivations in starting a personal finance website was to have some form of public monitoring Heartland Boy’s investment portfolio. This indirect accountability adds a higher degree of responsibility when Heartland Boy manages his portfolio. Given that 2016 is behind us, let’s review if starting Heartlandboy.com has allowed Heartland Boy to improve his investment performance. This is Heartland Boy’s stock investment review for 2016.
Stock Investment Review Against STI Benchmark
Since starting his first investment in 2014 Heartland Boy has kept a record of all of his investments.
|Fiscal Year||Heartland Boy||STI||Comparison Against STI|
In 2016, his overall portfolio registered a return of 9.5%, nett of all dividends and transaction fees. This marks the second consecutive year that Heartland Boy has beaten the market. Note that Heartland Boy uses the STI as a benchmark to measure the performance of his portfolio. Thankfully, his active stock selection is working out well thus far. This justifies the time that he spends on analyzing the counters.
For readers who are keen to know how Heartland Boy managed to eke out a paltry gain of 9.5% in 2016, here is a in-depth analysis of Heartland Boy’s public portfolio.
Investment Review Of Stocks On Heartland Boy
Throughout 2016, Heartland Boy has written initiation reports to explain why he had purchased these stocks. The following table is a summary of how these stocks had performed in 2016. *For simplicity, note that the table assumes that the stocks were purchased on the date of the initiation reports and held till the end of the year without incurring any transaction fees.
|Stock||Price As At Date Of Article Published On Heartlandboy.com||Closing Price As At 30 Dec 2016||Dividends Declared Since Date Of Article||Returns Including Dividends|
|Micro-Mechanics||0.84 (26 Dec 2015)||0.865||0.06||+10.1%|
|Innovalues||0.78 (31 Dec 2015)||1.01 (Privatisation)||0.026||+32.8%|
|Croesus||0.775 (20 Feb 2016)||0.835||0.088 (including nil paid rights)||+19.1%|
|Sunningdale||0.98 (20 March 2016)||1.10||0.05||+17.3%|
|Sarine||1.68 (13 April 2016)||1.80||0.0425||+9.7%|
|QAF||1.10 (12 June 2016)||1.39||0.01||+27.3%|
|CNMC||0.49 (31 July 2016)||0.435||0.004||-10.4%|
|Lippo Mall||0.37 (7 Aug 2016)||0.37||0.0171||+4.6%|
|Dutech||0.48 (18 Sep 2016)||0.445||–||-7.3%|
Heartland Boy’s Exit Strategy For Stocks
- the technical analysis shows a clear downtrend or
- fundamentals of the business has deteriorated or
- price dips more than 10% from his initial purchase price
Furthermore, Heartland Boy started to announce his trades after he joined InvestingNote in August 2016. The table below captures the realized and unrealized gains of Heartland Boy.
|Stock||Price As At Date Of Article Published On Heartlandboy.com||Heartland Boy’s Exit Price||Dividends Collected By Heartland Boy||Heartland Boy’s Realised and Unrealised Returns (Based on 30 Dec 2016)|
|Micro-Mechanics||0.84 (26 Dec 2015)||–||0.06||+10.1%|
|Innovalues||0.78 (31 Dec 2015)||0.96 (18 May 2016)||0.026||+26.4%|
|Croesus||0.775 (20 Feb 2016)||–||0.088 (including nil paid rights)||+19.1%|
|Sunningdale||0.98 (20 March 2016)||1.05 (30 Sep 2016)||0.05||+12.2%|
|Sarine||1.68 (13 April 2016)||1.69 (30 Sep 2016 and 7 Nov 2016)||0.0425||+3.1%|
|QAF||1.1 (12 June 2016)||–||0.01||+27.3%|
|CNMC||0.49 (31 July 2016)||0.41 (16 Dec 2016)||0.002||-15.9%|
|Lippo Mall||0.37 (7 Aug 2016)||–||0.0171||+4.6%|
|Dutech||0.48 (18 Sep 2016)||0.48 (2 Nov 2016)||–||+0%|
Of the 9 stocks initiated by Heartland Boy, all registered positive gains except for CNMC and Dutech. That’s a hit rate of 78% and collectively, they returned an average of 11.5%. If you had followed Heartland Boy on InvestingNote, only CNMC would have been in the red. The hit rate would be 89% but the average return would decline to 9.7%.
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Reflections Of Stock Investment 2016
Investment is one of the pillars that Heartland Boy depends on to achieve financial freedom by age 40. As a retail investor, Heartland Boy sets himself a stretched target of beating the index by 10%. Unfortunately, 2016 was a very volatile year. Record-breaking events such as BREXIT and the US Elections panned out in ways that caught experts off-guard.
Heartland Boy has failed his annual target yet again since he only outperformed the STI by 6.7% in 2016. Indecision and hesitancy caused Heartland Boy to miss out on multi-baggers such as Best World and Health Management International. Having these stocks would have dramatically altered the performance of his portfolio. However, Heartland Boy is not a wistful person. Instead, he is an ever optimist. He can only look towards a better 2017.