Sunday, 6 March 2016

My Portfolio – Recent Actions

STI Index, from its low of 2,532 points on 21 Jan 2016, has climbed lightning quick to 2,837 recently. This jump is mainly within the last week or so. I grab the opportunity to take profits for some of the stocks I own.  

As mentioned in my last few Portfolio updates, I had been pretty active acquiring shares when STI first dropped below 2800 and later below 2630 since the start of the year.  

Read:
My Portfolio – Recent Actions
Bought DBS and OCBC today! How I hedge my bets!
STI goes below 2630 - Second benchmark breached, Scoop Again!
STI goes below 2,800 - Eat Slowly, Be Patient, and Don't Get Indigestion

My Recent “Sell” 

Since 2016
Price bought
(incl. fees)
Price Sold
(incl. fees)
% change
Valuetronics (BN2)
0.378
0.414
9.5%
DBS (D05)
14.285
14.690
2.8%
OCBC (O39)
7.897
8.780
11.2%
SGX (S68)
6.904
7.520
8.9%
Singpost (S08)
1.625
1.550
-4.6%
Wingtai (W05)
1.542
1.625
5.4%
Global Logistic (MC0)
1.625
1.760
8.3%

Still reasonably tasty profits within a short time, considering brokerage fees inclusive!

My way of managing both the up and downside

For GLP, the above table only show the sale of shares bought during 2016, which I profited. Last year, my average bought price for GLP is 2.10. I am pretty sceptical about the recent rally of GLP from a low of 1.60 to high above 1.90 (~16% increase). Therefore, I did another partial sold down at 1.905 for those units bought in 2015 as well. 

This is my strategy of risk management. If GLP were to next drop below 1.905, I will buyback more shares. If it is to continue rally, my existing holdings will benefit. In this way, I manage both the upside and the downside.

The same strategy will apply for Super Group. I had sold minor stakes in Super at 1.01 this week to incur lesser losses (compared to Super when its share price was 0.7-0.8) for those shares I acquired in 2014 at a high price of above 1.40. When price were to fall back to the 0.7-0.8, I will acquire more!

Final Thoughts

I actually feel that the recent rally has NO strong correlation to the foreseeable improvement in the forward outlook of the economy. It can possibly be overbought in a manner too fast! Possibly some doings of larger fund institution, I do not know?

Did I sell at the right time? I do not know either!

All I know is I am comfortable now to take some profits and to use it to mitigate my paper losses for those shares acquired in 2015 and 2014 at a much higher pricing. This is also a good way to pare down holdings of certain shares which has been otherwise too high in its percentage of the total portfolio. 

Overall, I am not very convinced that the recently announced stimulus package of China or Europe is going to help too much the current state of global economy.

Moreover, this current action for me is more for stocks I am employing for short term trading. I still own quite a handful of stocks that are mainly for long term which I do not intend to sell. Two good examples of a quality stocks I owned in my opinion, are Raffles Medical and Coca Cola Amatil (ASX).  

Hence, overall, I am still a long term investor, but will employ short term tactics when I see the need for myself. 

I am now >65% cash (i.e. for equity-cash portfolio) and my watchlists are already carefully crafted in advance, waiting patiently before the opportunity to pounce! 

11 comments:

  1. I start to worry?

    Smile or Grin?

    haha...

    ReplyDelete
    Replies
    1. Rolf,

      Relax lah. It's a complimentary tip of my hat to you.

      Most newbies may have a hard time understanding your actions. But with time they will. Once they get their first -50% drawdowns ;)

      coconut and you have done similar things. Taking money off the table as the market goes up.

      It's not so weird once we realise its a symmetrical move as to buying when the market goes down ;)


      Delete
    2. Hi Jared,

      Thanks for the compliment but I am not up to it lar...

      Just follow my gut feeling and like what CW says, patience, guts and a little bit cash.



      Delete
  2. Rolf,

    Definitely u can throw the value investor tag out of the window ... Lol

    ReplyDelete
    Replies
    1. Hi SI,

      Better not to use my own tag, bcos only that is suitable for me.

      I think both long and short term investing is important to create wealth... sounds familiar.

      Half half lar. I still holding on to several stocks with big stakes that is meant for long term.

      Delete
  3. how much % are u vested
    and how much % are u in cash now?

    ReplyDelete
    Replies
    1. Hi Felix,

      I am a bit kiasu, I mentioned >65% cash and less than 35% vested!

      The 15% can be used for trading?

      I try to have at least 50% cash/flexi bonds in hoping that if ever the market keep tanking, I will be able to deploy the cash smartly.

      Delete
  4. Hi Rolf,

    Just as long as your are earning money, it doesn't matter what strategies you take! But thank you for explaining your methods to us :)

    ReplyDelete
    Replies
    1. Hi Jes,

      Thanks for dropping by and u r welcome.

      It may not even earning money, but mitigating overall paper losses?

      Delete
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