The sharp drop in the market at the beginning of August is already a distant memory after just two weeks. Such is the volatile nature of the stock market.
While my portfolio has nearly recovered to its July levels, I have always focused more on the long-term performance than short-term fluctuations.
This morning, I took a look at my portfolio allocation on StocksCafe (referral code:TFI) and was quite pleased with what I saw. I’m happy to share that all ten of my top holdings are in the green, with only four of the top twenty in the red.
A bit of context on the portfolio. While I have owned some stocks like Parkway Life REIT (SGX:22PU), iFAST Corporation (SGX:AIY), OCBC Ltd (SGX: O39) and Apple (NASDAQ: AAPL) for much longer, this specific portfolio only started in January 2020.
Therefore, the indicated performance covers the past four years and eight months. A quick check on StocksCafe shows the portfolio’s XIRR at 9.4%, which is slightly below my 10% target but comfortably above my minimum expectation of 6%.
Some of you might be thinking, “Why bother? Simply get a better return by investing in SPDR S&P 500 ETF (NYSE: SPY)?”
While I agree that SPY is a solid choice, it doesn’t align with my investment goals of generating both regular income and capital appreciation.
I will only benchmark my US stock portfolio return against SPY. After recovering from the 2022 crash, I’m glad to report it’s caught up with SPY’s returns.
There are other reasons why I chose to invest in individual stocks, which I have outlined in my previous post.
As for the four underperforming stocks, I remain confident in their long-term prospects. Combined with their consistent dividends, I expect them to contribute positively to the portfolio over time.
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