1) Always cut losses and let profits run. Never let losses run!
2) Never argue with the market; emotions have no place in investments.
3) Patience is key: Don't go looking for action. Action will find you if you let it.
Decide whether you are an investor, or a speculator.
I am 100% an investor. I'm not using my portfolio to get rich. I'm using my portfolio to stay rich AFTER i've gotten rich, which I haven't achieved yet. I'm just practising now to be ready for when that time comes!
If you are an investor, buy stocks with good fundamentals and hold them. Profit-taking are for speculators. Selling Super group at $3.90-$3.95 was the first mistake of my investment portfolio. Only sell when there is a reason to; ie a change in management or direction of the company that isn't to your liking. Just because you want to lock in your profits isn't a good reason to sell.
Tuesday 10 December 2013
Saturday 30 March 2013
Portfolio
Ever since my dad taught me everything i knew about investing today, I've been in the business of investing for 3+ years now (since I was 19 years old). Surprisingly, when i talk to my finance-savvy pals about it, they usually expect me to have dealt in at least 20 stocks since i started, due to the length of my "investing career" thus far. This couldn't be further from the truth.
My healthy portfolio stems from following the greatest investor who ever lived; Warren Buffet. Buy into companies that have potential for growth; unless there are changes to the company, (like management for example), leave it there for the long term.
I don't understand why so many people invest in companies with poor fundamentals; they are probably technical analysts. For me, the only point of TA is to quantify the amount you buy or sell. And if you buy a company with good fundamentals, even if it dips over a week or two, that shouldn't make a difference to what you saw when you bought it in the first place.
Buying is easy; its the selling that's the hard part.
Currently, throughout my four years, i have only sold 4 stocks; I have bought 6 thus far.
My best performer is without a doubt, Super Group LTD.
Bought in 2010 for $0.68; Sold (a bulk of it) in 2013 for 3.94.
Profit: 479%
My best performer in terms of amount earned over time is definitely Thomson Medical, which was the first stock i sold. Bought in 2010 for 0.68 also (like Super Group), Within a matter of months, Peter Lim offered to buy the shares at $1.75.
Profit: 157% over 9 months
There was also warrants of COSCO, but less was earned as compared to Thomson due to the risk of warrants brought about by the limited time frame; even though it showed a higher profit %, I wasn't about to risk much of my money on warrants.
Profit: 350% over 9 months
Finally, the last stock i sold was Hi-P, which was far less glamorous than the other 3; bought at 0.65, i sold it last year at 0.885.
Currently, i hold stocks of Sarin Technologies LTD and Haw Par Corp LTD, as well as the remaining Super Group shares i have.
Experienced investors will probably note the time at which my purchases were made (and probably nod knowingly to themselves). Yes, the timing was perfect. Which is why its better to start investing young; you can afford to wait for good timings. And timing is everything in investing.
My healthy portfolio stems from following the greatest investor who ever lived; Warren Buffet. Buy into companies that have potential for growth; unless there are changes to the company, (like management for example), leave it there for the long term.
I don't understand why so many people invest in companies with poor fundamentals; they are probably technical analysts. For me, the only point of TA is to quantify the amount you buy or sell. And if you buy a company with good fundamentals, even if it dips over a week or two, that shouldn't make a difference to what you saw when you bought it in the first place.
Buying is easy; its the selling that's the hard part.
Currently, throughout my four years, i have only sold 4 stocks; I have bought 6 thus far.
My best performer is without a doubt, Super Group LTD.
Bought in 2010 for $0.68; Sold (a bulk of it) in 2013 for 3.94.
Profit: 479%
My best performer in terms of amount earned over time is definitely Thomson Medical, which was the first stock i sold. Bought in 2010 for 0.68 also (like Super Group), Within a matter of months, Peter Lim offered to buy the shares at $1.75.
Profit: 157% over 9 months
There was also warrants of COSCO, but less was earned as compared to Thomson due to the risk of warrants brought about by the limited time frame; even though it showed a higher profit %, I wasn't about to risk much of my money on warrants.
Profit: 350% over 9 months
Finally, the last stock i sold was Hi-P, which was far less glamorous than the other 3; bought at 0.65, i sold it last year at 0.885.
Currently, i hold stocks of Sarin Technologies LTD and Haw Par Corp LTD, as well as the remaining Super Group shares i have.
Experienced investors will probably note the time at which my purchases were made (and probably nod knowingly to themselves). Yes, the timing was perfect. Which is why its better to start investing young; you can afford to wait for good timings. And timing is everything in investing.
Tuesday 7 August 2012
Fifth post: SARIN TECHNOLOGIES LTD
SARIN TECHNOLOGIES LTD
Cons
Luxury goods are usually the first to be affected in times of economic stress
Pros
Despite the recent problems surrounding China, USA and Europe, Sarin has managed to remain steady
Possibly one of the strongest balance sheets in SGX with low number of shares
Look out for
Multiple breakthroughs in share price since June
Cons
Luxury goods are usually the first to be affected in times of economic stress
Pros
Despite the recent problems surrounding China, USA and Europe, Sarin has managed to remain steady
Possibly one of the strongest balance sheets in SGX with low number of shares
Look out for
Multiple breakthroughs in share price since June
Fourth post: SUPER GROUP LTD.
SUPER GROUP LTD.
Cons
Market heavily dominated by leader Nescafe
Pros
SuperGroup has expanded aggressively and looks to have a great future
Board manages to keep number of shares steady resulting in continuous rise in share price
My portfolio
Bought at .68, current price 2.17
Original plans
To sell after 2nd dividend collection in 2012
New plans
Hold; SuperGroup shows no signs of slowing its growth
2Q12 report might possibly help me with my plans for this company
Tuesday 17 July 2012
Third post: COMFORTDELGRO CORPORATION LTD
COMFORTDELGRO CORPORATION LTD
Cons
Price regulated heavily, unlikely to show any large profits
Pros
Price fluctuates consistently between about 1.4 to 1.6 (although it shows signs of a breakthrough (due to new assets in buses)currently at 1.62, meaning I have missed the boat this time round).
Possible price check estimation
Buy at 1.4
Sell at 1.6
Cons
Price regulated heavily, unlikely to show any large profits
Pros
Price fluctuates consistently between about 1.4 to 1.6 (although it shows signs of a breakthrough (due to new assets in buses)currently at 1.62, meaning I have missed the boat this time round).
Possible price check estimation
Buy at 1.4
Sell at 1.6
Monday 16 July 2012
Second post: SAKARI RESOURCES LIMITED
SAKARI RESOURCES LIMITED
Cons
High borrowings (refrain from investing too much)
Profit dropping since March reflected by share price dropping since March due to reduced demand from China & coal prices
High number of issued shares due to reverse takeover
Pros
Shares remaining constant in number now = high number doesn't really matter
Company is managing to produce a profit due to careful management of finances even in hard times
High dividends
Look out for
Multiple breakthroughs in share prices since June, possibly due to improvements in the China economy or adjustments in the coal/oil/natural gas market.
Possible price check estimation
Buy at 1.4-1.5
Sell at 2.5-3
EDIT: Cancel this watchlist item. Fresh information from remisiers.org has revealed a risk of competition bet. coal and shale gas which could result with a drop in coal prices.
Cons
High borrowings (refrain from investing too much)
Profit dropping since March reflected by share price dropping since March due to reduced demand from China & coal prices
High number of issued shares due to reverse takeover
Pros
Shares remaining constant in number now = high number doesn't really matter
Company is managing to produce a profit due to careful management of finances even in hard times
High dividends
Look out for
Multiple breakthroughs in share prices since June, possibly due to improvements in the China economy or adjustments in the coal/oil/natural gas market.
Possible price check estimation
Buy at 1.4-1.5
Sell at 2.5-3
EDIT: Cancel this watchlist item. Fresh information from remisiers.org has revealed a risk of competition bet. coal and shale gas which could result with a drop in coal prices.
First post: Overview
Currently: 35% of complete portfolio in shares. 65% in cash (in banks)
Target: 33% in shares, 33% in cash/currency, 33% in government bonds (7+% yield)
Attributes of shares (not in order of importance)
1) Profit margin (net profit/ revenue)
2) Annual earnings per share (increasing annually unless external reasons like oil prices rising for oil companies)
-Annual profit (increasing)
-Outstanding shares issued (unchanged) - if increasing = undesirable, since it means annual earnings per share will be reduced.
3) Assets vs liabilities (borrowings/debt most important to see if company will survive in hard times)
4) Cash flow in (if from profits or from borrowings/selling properties) - the latter is undesirable
5) New management/ policy/ products
6) Management abilities (check administrative expenses; if they are low/high compared with similar companies. check announcements, if the directors say the truth)
Watchlist
- SARIN TECHNOLOGIES LTD
- THE HOUR GLASS LIMITED
- SUPER GROUP LTD.
- RAFFLES MEDICAL GROUP LTD
- TECHNICS OIL & GAS LIMITED
- SAKARI RESOURCES LIMITED
- HAW PAR CORP LTD
- COMFORTDELGRO CORPORATION LTD
- VENTURE CORPORATION LIMITED
- HI-P INTERNATIONAL LIMITED
- CWT LIMITED
- SINGAPORE AIRLINES LTD
Watchlist for recession times
- VICOM LTD
- ORCHARD PARADE HOLDINGS LTD
Target: 33% in shares, 33% in cash/currency, 33% in government bonds (7+% yield)
Attributes of shares (not in order of importance)
1) Profit margin (net profit/ revenue)
2) Annual earnings per share (increasing annually unless external reasons like oil prices rising for oil companies)
-Annual profit (increasing)
-Outstanding shares issued (unchanged) - if increasing = undesirable, since it means annual earnings per share will be reduced.
3) Assets vs liabilities (borrowings/debt most important to see if company will survive in hard times)
4) Cash flow in (if from profits or from borrowings/selling properties) - the latter is undesirable
5) New management/ policy/ products
6) Management abilities (check administrative expenses; if they are low/high compared with similar companies. check announcements, if the directors say the truth)
Watchlist
- SARIN TECHNOLOGIES LTD
- THE HOUR GLASS LIMITED
- SUPER GROUP LTD.
- RAFFLES MEDICAL GROUP LTD
- TECHNICS OIL & GAS LIMITED
- SAKARI RESOURCES LIMITED
- HAW PAR CORP LTD
- COMFORTDELGRO CORPORATION LTD
- VENTURE CORPORATION LIMITED
- HI-P INTERNATIONAL LIMITED
- CWT LIMITED
- SINGAPORE AIRLINES LTD
Watchlist for recession times
- VICOM LTD
- ORCHARD PARADE HOLDINGS LTD
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