Monday, March 23, 2020

Added more OCBC to SRS portfolio

In my previous article comparing the 3 local banks' impressive Q4 2019 results and explaining why we should own the banks instead of letting banks own our money, I mentioned that 

"I am biased towards accumulating more OCBC shares for long term at around their Net Asset Value price of $10.50 as they offer scrip dividend reinvestment consistently every year. This allows us to leverage on the power of compounding effect to grow our money till we retire as we can reinvest the dividends collected from OCBC shares back into OCBC at no cost."

Today, I saw the share price of OCBC plummeted another 6.5%, at 25% off the book value and decided to add on 1,300 shares to my existing holdings in SRS portfolio. 

I could have waited for the bottoming of the markets which theoretically should take place at the climax of this whole Coronavirus crisis. The lowest prices of OCBC occurred before 2000, 2003 and 2009 at below $5. But I decided to not time the market and just catch the falling knife as this will be an ultra long term investment and I will continue to add on to OCBC shares using dollar cost averaging in 2021, 2022, every year and so on. If I get to see $5 again, I would definitely activate some of my war chest in Fixed Deposits and Savings bonds to add on more.

My next plan of action is to capture some more of the branded Reits that I currently own. Capitaland Mall Trust and Mapletree Commercial Trust will be my top choices. I am also comtemplating letting Mapletree logistics Trust or Industrial Trust join my family. This will be another lifetime opportunity to acquire Reits on the cheap. We should deploy our ammunition and unlock our war chests slowly to enjoy possibly further discounts and also in case there are rights offers by the Reits.

I will stay calm, stick to plan, slowly and steadily build the portfolio in the quest for financial freedom while eating, working and sleeping well during these tough times. In time to come, the crisis will be over and life will still go on.

Thanks for reading.

With Love & Peace,

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