Our 2023 portfolio started on Jan 30 with US$202,154 ($263,670), as noted in the previous issue. The Table below shows the allocation for the 10 stocks for our virtual portfolio, which we have attempted to equally allocate, using closing prices from Jan 30. Note that as per our previous portfolios, we will not account for transaction costs and exchange rate fluctuations in tracking the performance of our portfolio. Dividends and capital changes to the stocks, on the other hand, will be accounted for in tracking the performance of the portfolio.
The Edge Singapore 2023’s global virtual portfolio features 10 stocks, selected using an approach based on lessons learned from the previous selection of stocks over the years. The general strategy used was to filter stocks that had underperformed their respective benchmarks over the past year. Subsequently, these stocks, which are fundamentally sound (at least cash flow-profitable), were subjectively valued and the ones that were trading most below their intrinsic value were picked.
To recap, our portfolio of 10 stocks was incepted on Jan 24, 2020, and returned 98.1% for the year (see Issue 917). These 10 stocks were equally allocated to a US$100,000 virtual portfolio. Our 2021 portfolio returned 13.1%, while our 2022 portfolio returned –9.8%. It must be noted that in both 2021 and 2022, the portfolio still outperformed several comparable benchmarks.
