2015 Year-End Financial Report

This is the 2015 year-end financial report of my “syarikat sendirian berhad” (private limited company) by assuming I am the CEO (or CFO?) of my personal financial life.

Asset growth

The asset includes all my savings, investments (stocks, mutual funds, ETFs) and Employee Provident Fund. It has grown significantly. The growth was mostly due to active income (even though I only worked for a few months this year).

By looking at the number, this year’s growth rate (46.73 %) is higher than last year’s which takes me by surprise. I cannot believe this is possible given that Ringgit depreciated a lot this year.

The following is the detail of contributors for this growth:

Well, it is mostly due to the fact that the value of Ringgit depreciates that my net worth increases more. I have saving in Euro. Even though both Ringgit and Euro depreciate in value during this year compared to the strong USD, it is a matter of which currency depreciates more. It is for this reason that my total saving converted to Ringgit increases more than last year. This shows the power of diversification. In this case, diversification in currencies.

Diversification is the only “free lunch” in finance. – Modern Portfolio Theory

I like free lunch.

Diversification is protection against ignorance. – Warren Buffett

I am quite ignorant, I admit. The more I read, the more I feel I don’t know about the market. I need to read more (nevertheless).

Dividend growth

Year Total (RM) Growth (%) Monthly avg. (RM)
2015 8173.54 92.54 681.13
2014 4245.09 430.96 353.76
2013 799.51 66.63

The dividend income almost doubled (92.54 %) compared to last year. It is near the Malaysian old minimum wage which was set to RM 900 per month by the government (OK, it is still short of RM 120 to make it RM 900).

With that, the market value of my stock portfolio has also reached another meaningful milestone for me since last week when I last checked. This was another surprise. 🙂

This year’s dividend income (month-by-month)

There are three months (respectively in May, September and December) where the dividends exceeded RM 1000 mark. I hope that one day the dividends will exceed the one-thousand-ringgit mark for all the months. By then, I will be like living in paradise everyday. :p

The total accumulated dividends since June 2013 till now are RM 13218.14 and they are all re-invested back to the stock market.