Returns of my One-Fourth Fund after 10 Years

Ten years ago (22-Sep-2014 to be exact), I started my One-Fourth fund. 

The One-Fourth fund was started after the big hoo-ha about the 10 million population planning figure for Singapore by 2030. This was back in 2014. 

https://www.straitstimes.com/politics/ge2020-10-million-population-not-a-goal-but-a-planning-parameter-says-liu-thai-ker

After the news came out, a lot of people were upset by the number. However, some investment articles suggested stocks to buy given the supposed huge influx of people. Since there are more people, the investment article suggested stocks in the following industries:

• Telco
• Transport
• Bank
• Finance

After all, when people move into Singapore. They will need these essential services, right?

Based on the above, I selected the below 4 stocks based on Sharpe Ratio:

• Starhub
• ComfortDelGro
• UOB
• SGX

The 4 combinations above gave the highest Sharpe Ratio, which means the highest returns divided by volatility. The plan was that I will dollar-cost average into these stocks twice a year, and I will rebalance the stocks each time such that all 4 stocks hold equal value. 

This fund took a lot of hits along the way, and it was negative for most of the time. For Starhub, it was in overall decline throughout the years. For ComfortDelGro, ride-hailing services like Grab came to prominence, which led to a gradual decline in ComefortDelGro stocks.

I dollar-cost averaged from 2014 till 2020. It is only recently I recouped my losses with the stellar run in STI.

I recently crunched the numbers and found that the CAGR of this fund is 3.50% (see above). Again, this is after 10 years. 

Nothing to shout about, but I just want to share to show that some stocks (ie. blue-chip stocks) are worth holding, just need time to recover.