The Value Portfolio - Recent Actions and Views
I’ve been too busy at work and have no time to blog.
When it’s the time to blog - Everything turned red. Thus, I end up using the time to review my portfolio and the potential companies I can invest in.
This time round I will list down all the companies I have a stake in:
- ISDN Holding Limited
- Sin Ghee Huat Corporation Limited
- PNE Industries Limited
- Chuan Hup Holding Limited
- LHT Holdings Limited
- TTJ Holdings Limited
- Accordia Golf Trust
- M1 Limited
- Singapore Telecommunications Limited
- Sapphire Corporation Limited
- SEMBCorp Industries Ltd
- Macquarie International Infrastructure Fund
- Suntec Real Estate Inv Trust
- Oversea-Chinese Banking Corporation
- SATS Ltd
- CH Offshore Ltd
- Maxi-Cash Financial Services Corp Ltd
(I have been told by many gurus that I am too risky when I realise my holdings in my previous post. Hopefully this revelation will ease their worries. In addition, I will proceed to explain why I invested in each individual companies when I have more time – After the BLOODBATH ease.)
From my previous post, you can see that I have divested all my holdings in HTL International Holdings Limited (Even if it is a value stock, the business really doesn’t seem to worth the time). Currently I am still holding to about 40% of cash.
I intend to divest all my “In-The-Money” companies (Maybe SATS, M1) to improve my liquidity and maybe some of those companies that I deem are Overweight in my portfolio (Yet to fully review).
I decided on the above actions is because:
- STI/Singapore Stock Market does not seem to be rebounding any time soon. My stocks are either in red or near my initial buy price. Selling these “In-The-Money” Companies will improve my liquidity and in future I may be able to buy them at an even lower price.
- Each individual stock buy/sell price spread is getting too wide, even for those heavily traded stocks. The trend seems to be going down.
- I have heard it more than once that there is going to be a major correction in Sep soon. (Yes, it is still not major yet.)
- World events are not smooth sailing ANYWHERE – China Stock Mark, Chinese Yuan depreciating, China PMI going down (Maybe due to all of the public cash stuck in assets?), Greece PM resign (WTH… I thought that is over?), North Korea/South Korea Tension, US intention to increase Interest Rate by year end (It’s not confirm, is it?), DOW JONES falling about 2000 points in 3 months, SIBOR Rate has started to rise (do you feel that your housing loan instalment is rising?), List firms and even Govt Statboard are issuing bonds to the public (when did you this kind of frequency previously?).
- Finally – Many Fund Houses are keeping a lot more Cash at this moment (like they are predicting something major is going to happen soon…Read James Moniter).
- I am selling these blue chips only after receiving the most recent declared dividends.
However, I am still not in a hurry to sell all my stock holdings (and I have still yet to panic and can sleep well at night.) because:
- Many of the business that I invested in are companies with CONFIRMED recurring income (esp the blue chips). Some other companies are also value plays and averaging down will put me in a better position.
- If you have invested in a good company, why sell? You should only sell if the company you invest in has changed its fundamentals OR you no longer see it the same way (new revelations).
- I am a value investor and I believe in my views. If you are easily swayed by the market chats, you should never invest or even trade in this market. An investor must have his own views and stand by them if you think you are right (NEVERTHELESS, if you read that you are wrong, and YOU ARE REALLY WRONG, you should accept and move on. You must be able to separate the noises from the correct views.)
Lastly, I will end with the advice I always gave to my friends whenever they intend to enter the market, “It must be your disposable cash and you must be able to accept to lose all these cash. In this way, if the market falls, you will still be able to sleep peacefully at night.”
If you cannot accept any market correction of another 30% to 50%, please keep the money by your side.
Any actions stated above are only for my own portfolio. Please do your own diligences before you enter or exit any investment.