The Edge Singapore’s 2024 virtual global portfolio features 10 stocks that cater to investors of various risk profiles. The stocks selected this year have been subject to rigorous subjective fundamental analysis, and the selection incorporates lessons learned over the years since the portfolio’s inception.
To recap, the virtual global portfolio was incepted on Jan 24, 2020, with 10 stock picks which were equally allocated to a US$100,000 virtual portfolio. Our returns for 2020, 2021, 2022 and 2023 were 98.1%, 13.1%, –9.8% and 25.8% respectively, with the performance since inception significantly ahead of any comparable benchmark with 25.7% CAGR.
As mentioned in the previous issue, the 2024 portfolio will be constructed in a similar way as the previous portfolios, where 10 stocks are allocated equally, wherever possible. The 2024 portfolio’s start date was Feb 23, which is the day the stock picks were published online, using closing prices. After accounting for all returns and cash, the portfolio’s starting value was US$254,407 (about $341,790). The Table shows the allocation for the 10 stocks for our virtual portfolio. Our 2024 portfolio will not account for transaction costs and exchange rate fluctuations in tracking the performance. Dividends and capital changes to the stocks, on the other hand, will be accounted for in tracking the performance of the portfolio, as per the previous instalments.
Separately, Grab Holdings reported its results for the 4QFY2023 ended December on Feb 22. The company’s operating metrics improved y-o-y, as its gross merchandise value (GMV) and monthly transacting users rose by 9% and 12% respectively. Its on-demand GMV, which is the sum of its mobility and deliveries segment’s GMV, also improved by 18%, while the company’s partner and consumer incentives fell by 1% and 5% respectively for the same y-o-y period.
Grab’s share price for the trading day fell by 9.7% despite a 30% increase in y-o-y revenue for the quarter, with positive adjusted ebitda and positive-adjusted free cash flow. This was mainly due to a less optimistic outlook for its FY2024 by management compared to analyst estimates. The company’s share price would have likely dropped further if it was not for the authorisation of its first share repurchase programme of up to US$500 million. We believe that Grab is now more undervalued as it has a cheaper price tag along with improving fundamentals.
See also: F1 stocks: Who’s on pole?
We will have the flexibility to buy, sell, add or reduce stocks in the 2024 portfolio based on our discretion when their investment cases have changed or they have achieved their target prices. However, we will explain and justify before making changes. Readers can also follow the trackable virtual portfolio on EdgeInvest if they wish to utilise the information from our latest stock picks and portfolio changes for their own investment research and also for portfolio transparency purposes.
See also:
- Altria Group: Light up your portfolio with this undervalued stock
- Anicom Holdings: Make this stock your pet love
- Autodesk: CAD company designed to lead the market
- CrowdStrike Holdings: Keeping faith with this winner
- Games Workshop Group: Game-changing model maker that’s no fantasy
- Grab Holdings: Grab on for a ride as corner may have been turned
- Mondelēz International: Here’s where to dunk your money for sweet returns
- Nippon Paint Holdings: Growing steadily even as the paint dries
- Playtech: Wager on this stock amid a gaming supercycle
- Sunny Optical Technology Group Co: Strong earnings visibility for this optoelectronics player
Disclaimer: This is a virtual portfolio for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy or sell stocks, including the stocks mentioned herein. This portfolio does not take into account the investor’s financial situation, investment objectives, investment horizon, risk profile, risk tolerance and preferences. Any personal investments should be done at the investor’s own discretion and/ or after consulting licensed investment professionals, at their own risk.
