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Tuesday, September 3, 2019

New Quest: Breaking 100k passive in 2020

Recently went on another shopping spree with the capital recycled from the Ascendas Htrust sale.

I kept saying pace yourself, pace yourself dude, don't spend it all in one place. But when the market is offering a ton of discounts, it is hard to say no.

I have decided the year 2020 should be that year when i finally breach the 6-digit passive income benchmark.  

Sometimes I picture myself hopping into a time machine and going back to say hello to the 25-year-old me in 2007. Fresh out of Uni, with a massive $800 to my name sitting in a POSB Savings Account, and about to embark on a 12-year long journey in a hellish, soul-crushing, and perspective-altering career.

What would I say to him? Would he believe me if I told him, thanks to me, he would be able to sit on his ass and do absolutely fuck all, and still make 100k a year in 2020?

The 25-year-old me would probably see it as a ticket out of employment. Poor sod, I might have to break the sorrowful news that even District 1, 99-year condos cost above 3k psf now.  And therefore, despite a 6 digit passive, a job remains necessary, for the time being.  Would have loved to see that jaw drop. LOL.

Back to reality. To even have a remote chance of breaking 100k passive next year, there is a ton of tough work to be done. And it begins now in September 2019:

Summary of purchases


AMMO
Passive Income
AIMS APAC
-195k
+13.9k
CRCT
-11k
+0.8k
HK Land
-27k
+0.9k
DBS
-24k
+1.2k
TOTAL
-257k
 +16.8k (around 6.5% yield)


Overall in August, I added a total of 136,000 shares of AIMS APAC @ an average price of 1.42, increasing my total AIMS APAC holdings to 257,400 shares. It remains my second largest holding after FCOT, but only trailing slightly.  But because AIMS provides a higher yield than FCOT, it is expected to be my biggest passive income contributor for 2020. The estimated passive income from AIMS APAC alone is about 26k per annum. This amount is also notable because it actually exceeds my first year take home pay.   Eat that 25-year-old me.



Subscribed to CRCT preferential shares and applied for excess. Received a total of 8100 shares @1.44. Increased my holdings from 35000 shares to 43100 shares.



Bought 3,500 shares of HongkongLand @ US$5.57.  I know right. Ouch. But cautiously optimistic. I believe in the pragmatism of HK-ers to resume the business of making a living. Don't agree with violence but I can empathize with the bleeding heart idealism. We were all young once.



Added 1000 shares of DBS @ 23.98. It is D-Bloody-S with a 5% yield. It is self fucking explanatory. This is consistent with my investment philosophy of accumulating blue chip bank shares at 5% yields. I now hold 2000 DBS shares. I am usually reluctant to add more because DBS does not exactly align with the objective of an income investor.  But at 5%, it is foolhardy to pass up. The idea is to constantly accumulate blue chip bank shares at acceptable yields and gradually increase its weightage in my portfolio as I grow older (when portfolio survivability in a black swan economic event becomes increasingly important).


So far quite pleased with my purchases.


Of course I kept a chunk dry ammo. And September is typically a good month for me in terms of reinforcements.  Bonus is coming in and it is also a traditionally strong month for dividends.  More FIREpower!!!! Hah.

Onward to FI brethren.





6 comments:

  1. Your portfolio is inspiration given that im around your age. One thing that puzzles me, you mentioned you as fresh grad took home <26k. Yet your capital injection each year is 140k?

    Do you have some other side business that help supplement the shortfall?

    ReplyDelete
  2. hi, thanks for dropping by.

    Indeed, my first year take home was less than 26k. But that was in 2007.

    The capital injection only began 4 years ago in 2015. By then, I had been promoted a couple of times, and was pulling a respectable salary.

    ReplyDelete
    Replies
    1. Tks for replying.

      Wow from earning 26k a year to like 160k a year in 8 years.
      that's 30percent increment a year.

      very impressive! keep it up

      Delete
  3. Hi.


    May i know what is your total invested capital? All the capital from your salary or selling of property (not from stock market).

    Thanks!

    ReplyDelete
  4. To get $100k as dividend implies total capital invested roughly in the range of $2m with 5% yield as a simple calculation. Even if you can get 10% yield, that at least needs $1m. Boy, you are so rich!!

    ReplyDelete
  5. I think it will be more impressive if he can tell what is his return on equity per annum. Not so much on his networth or salary level!

    ReplyDelete