Sit on your hands

Over the last 1-2 weeks, the value of my portfolio dropped by around 10%. This reminded me of 5-6 years ago, when my portfolio suffered a paper loss, and I panic sell. Now, whenever I feel the urge to panic sell, I sit on my hands and don't look/think about my stocks. After a day or two (or longer), I look at my stock holdings , and try to convince myself that their long term growth is intact. If I can't, then it's probably time to sell. 

Warren Buffet punch card rule.

Net Worth Growth Rate

I started tracking the family's net worth in 2016. Just now, I was wondering about the growth rate over the years.

The growth rate will probably get slower as my income will be contributing lesser and lesser as the family's net worth increase.

Assuming a per year growth of 15%, I will reach FIRE in 9 years, which is the year 2030. Let's hope I don't need that long.

The goose that lays the golden eggs

According to the Trinity Study, I need 25X (where X is my annual expenses) to retire.

However, I am also interested in one of the points raised in an updated study.

If you choose a reasonable withdrawal rate, you are very likely to end up with much more money than when you started! For instance, a 3.5% withdrawal rate over 30 years with 100% stocks would leave you about six times more money than when you started!

Although I do not live my life for my kids, I do hope that 20-30 years later, my portfolio will be big enough such that my kids are financially secured to a certain extend, such that they can choose how to live their lives. 

If it happens, I will also remind my kids not to kill the goose (the portfolio) such that their kids have a chance to be financially secured too. Maybe I should put everything into a trust then!

-H

Percentage of stock holdings

Below is the % of my stock holdings (SGX and HKEX stocks).

For my stock picks, I mainly follow a friend who is kind enough to share with me his buys. He subscribes to the notion of having around 10 stocks so he can follow them. He buy more of a stock when he is more convinced of his calculations and is even more concentrated than me. I simply follow. 

Those unwilling to put the work in (or don't have a friend to follow) should probably stick to index funds.

So far, this way have worked for me and my net worth have been growing nicely.

Do you guys think that I am too concentrated on certain stocks?

-H

Portfolio Breakdown as of June 2021

This is our family portfolio breakdown inclusive of CPF.

This is the same breakdown without CPF. As our SRS are mainly in stocks (can have SSB + cash), you can see that we are deeply invested in stocks (80%).

-H