Long-term returns reveal stocks worth holding amid volatility

Temasek Holdings' portfolio shows how investors choose stocks amid wild price swings

SGX, whose return has nearly doubled to 11 per cent from a 10-year average of 5.8 per cent, is one of the firms in Temasek's portfolio that have managed to keep total returns in positive territory.
SGX, whose return has nearly doubled to 11 per cent from a 10-year average of 5.8 per cent, is one of the firms in Temasek's portfolio that have managed to keep total returns in positive territory. ST FILE PHOTO
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Market volatility usually obscures the historical performance of individual stocks, especially in a recession-driven sell-off, but smart investors keep their focus on the bigger picture.

While everything seems to be falling into a sea of red, they know to keep an eye on certain key measures such as annualised total returns - including capital gains, dividends and distributions over a given period - to assess which shares are worth holding despite wild price swings.

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A version of this article appeared in the print edition of The Straits Times on May 08, 2020, with the headline Long-term returns reveal stocks worth holding amid volatility. Subscribe