Friday, September 12, 2014

I Sleep Like A Baby

I did quite a few portfolio changes here and there since yesterday.

I have been feeling uncomfortable holding Singapore Shipping Corp for quite a while now, especially since price fell quite a bit after it went XD. It's just 2 lots, I know, no big deal. However, I believe in % gain and loss, not the absolute amount. If I can manage my 5k portfolio well, I will have no problems handling it when it is 50k and with smaller lot sizes as well! I seized the chance to get out at breakeven and I realized a minuscule capital gains loss because of transaction costs.

I have instead used half that capital to redeploy into SingReinsurance. Nothing too interesting about this company really, but I feel a lot more comfortable with this stock instead.

I've been scanning my watchlists and quite a few of the property related tickers look quite attractive, but I am expecting all the talk about lower property prices to affect the stockholders of these companies and make them bail out at the bottom. I am strongly resisting the urge to pick up some of these names. I think late 2015 might be a better time.

The past 2 days have seen the precious metals sector get smashed quite low. I have happily picked up the pieces and I can now report that of my entire investment portfolio, I now have a 10% allocation to physical bullion. I know it sounds silly to allocate quite a bit to precious metals, but after reading so much about the problems our modern financial systems have, I have to say that I am now very zen about everything. Like seriously.

I have reviewed my portfolio from a step back, and I think I am quite pleased with how it is constructed and my asset allocation exposure that I have now. Could things have been done better in hindsight? Of course. However, I don't think that I have made any grave mistakes yet, so that is a good thing. I'm most definitely playing defensive now, but in a smart way of course. I am very content with my all my positions now.


It's almost a bit weird how un-emotional and un-panicky I am these days. This is a huge contrast to when I first started "investing" in forex in my early days. I would stay up for hours at night looking at the currency pairs swing up and down and I would feel so emotionally attached to my trades.

Perhaps it is all the reading and wisdom that I have been leeching off from many more experienced investors than me, but I am no longer afraid of holding a position that is in the red. Things take time to turn around. Anyway, buy it cheap, buy more if it's cheaper, sell it high! Even if my portfolio tanks right now, I know that I have done my due diligence and I am aware of the risks that I am taking.

I suppose that is the benefit of having a well-thought of investment plan and strategy.

3 comments:

  1. When our portfolio is small, we go for %. When our portfolio is very large, we go for absolute.

    :-)

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    Replies
    1. Yes, small portfolio look at absolute numbers will feel like no point. I am waiting for the day when my portfolio is big enough that even a low % is a big absolute number! :D

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