Friday, August 01, 2008

My Investment Portfolio (July 2008)

July was another quiet month, with not much for me to write about. Having said that, a few takeover offers were announced. I have accepted the takeover offer for SNP and delisting offer for Transmarco. I am still holding onto my Pokka Corporation (S'pore) Ltd shares despite offeror Pokka Corporation extending the offer deadline and holding around 87% of the shares on last count. I will fight till my last "soldier" to resist the offer. Hope that other minorities will hold out as well to keep Pokka Corporation (S'pore) Ltd listed. The future prospects of Pokka Corporation (S'pore) Ltd is certainly bright and the 66cts offer from Pokka Corporation is a raw deal in my view.

Unisteel Technology is also slated for delisting after shareholders approved the scheme of arrangment.

I have also subscribed for Lorenzo and Hiap Hoe rights issues. Got some excess rights shares as well. :)

For the coming month, I certainly have some cash to invest, having accepted two offers. I will subscribe for MapleTree Logistics rights issue, while the remaining cash will be re-invested back into the market. I will identify some targets to buy into. There is no hurry for me to utilize all the available cash holdings as the market is weak and I can take my time to invest slowly but surely into the market. There are certainly many bargains available to be picked.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 1 August 2008)

Top 30 Holdings (Sing$ Denominated shares)
1. Raffles Education Corp
2. Noble Group
3. Cosco Corp
4. SGX
5. SembCorp Marine
6. F&N
8. Jaya Holdings
9. Hersing
10. Unisteel Technology
11. Jardine C&C
12. KS Energy
13. CapitaMall Trust
14. Keppel Corp
15. SPC
16. ComfortDelgro
17. Parkway Holdings
18. CapitaLand
19. Straits Trading
20. Bukit Sembawang Estates
21. Food Empire
22. Wheelock Properties
23. Keppel Land
24. K-REIT
25. SembCorp Industries
26. Pacific Andes
27. CitySpring Intrastructure Trust
28. Eng Wah Organization
30. Cerebos Pacific

Top 5 Holdings (US$ Denominated shares)
1. Jardine Strategic
2. Dairy Farm
3. Hong Kong Land
4. Mandarin Oriental
5. Jardine Matheson

Top Holdings (HK$ Denominated shares)
1. Tan Chong International
2. Fortune REIT

Top Holding (Aust$ Denominated shares)
1. AV Jennings

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. CapitaMall Trust
5. SingTel

My Hong Kong Stock Portfolio (listed on SEHK)
1. Peace Mark Holdings

My Unit Trust Portfolio:



Blogger cif5000 said...

Notice that Mermaid Maritime got struck of your list.

8:37 AM  
Blogger Jess said...

just curious about your portfolio now. Are you still holding on to it, or have you "chicken out" already?

5:44 AM  
Blogger ghchua said...

Hi cif5000,

I am still holding onto Mermaid Maritime. It is out of my list because its share price didn't perform as well as the others and therefore could not make it into my top 30 holdings this time round.

7:23 PM  
Blogger ghchua said...

Hi jess,

Certainly, I am holding onto every single stock in my portfolio last month. The only stocks that were sold are those that were involved in takeover offers and delisting deals. I don't see any reason to sell any stock in my portfolio.

7:25 PM  
Blogger Jess said...

great, i thought you have sold every of your holding due to market crash...

you may be holding on to some useless paper at the end of the day.

12:55 AM  
Blogger ghchua said...

Hi jess,

Yeap. At the end of the day, you win some, you lose some. But most important fact you need to remember is that one can only lose 100% at most in a stock. But the upside can be 100%, 200%, 500% or even more.

Which means, the odds is on your side when having a diversified portfolio.

8:09 PM  
Blogger Jess said...

i totally disagree with your view...

if a ship is going to sink and the captain is running away, you will still be holding on to the mast and sinking with it...

that is how i see your investing method is...

you should be more proactive in reading the ship distress signal and act upon it...in this case, you will not get drown be it one, two or 10 counters, etc.... ;-)

12:18 AM  
Blogger ghchua said...

Hi jess,

Getting "drown" in one, two even 10 counters will not really affect my portfolio returns greatly. This is because I am holding a diversified portfolio of more than 500 stocks.

Which is why I don't really take a pro-active approach in following those companies that I am holding.

12:58 AM  
Blogger cif5000 said...

...and i thought that 30 stocks are diversified enough...hats off

7:56 AM  
Blogger ghchua said...

Hi cif5000,

Maybe I was not clear enough. The 30 stocks is my top 30 holdings. It doesn't mean that I am holding onto 30 stocks only.

7:05 PM  
Blogger cif5000 said...

Yup, I understand the Top 30 concept.

500? Are you also counting the companies in the Unit Trusts that you hold?

8:31 PM  
Blogger ghchua said...

Hi cif5000,

Yes. I do hold more than 500 SGX listed companies. They are not my unit trust holdings, which is displayed separately on Fundsupermart's portfolio page that I had set up.

I am more active at sgfunds.com. Discussions on my portfolio and blog can be found at:

Note that it is quite long so do take your time to read through if you are interested to know more about my investment strategies.

2:13 AM  
Blogger Jess said...

by having diversified into 500 counter only implies 2 things:

(i) you are not sure what you are investing in that is why you choose to invest in all counter.

(ii) you can be buying over the entire SGX, or even HSI, NASDAQ, NYSE, etc, or even the whole world but, it would not be useful if majority of the counters tanks.

Your entire overhead, the transcation will already "eat" up a substaintial portion of your capital.

from the above, i think you are not having a wise investment choice since you are getting back to ground ZERO again once all counter tank.

why not, you tell us what counter you are not vested in so that it is easier.

3:59 AM  
Blogger cif5000 said...

Thanks, I am going thru' the sgfund thread. Yes, it is long but very interesting.

8:55 AM  
Blogger Jess said...

chua, do you agree?

7:31 AM  
Blogger ghchua said...

Hi jess,

As for your questions:

(i) I didn't choose to invest in all counters. I only invest in most of these counters. Yes, I am not sure what to invest because one cannot be absolutely sure in any investments. But I do overweight in some counters and it is not a equal distribution across all the counters. Which means, I am more sure in some counters than others.

(ii) I think your point on transaction costs is very relevant. But having said that, you must understand that I don't have a lot of money to invest every month. Therefore, the only way for me to get into the market and stay almost 100% invested at all times is to buy into the market in bits and pieces. Therefore, transaction costs takes up whether I add more into one counter every month or buy different counters every month.

I am also having a strategy of receiving dividends every month and paying my bills. As for your point of "majority of the counter tanks", the biggest risk of having a focused portfolio is not worrying about the counters falling in share price, but rather the company going under. This risk can be reduced by having a diversified portfolio.

I suggest you read through my link above at sgfunds.com if you wish to know more about my investment strategies. You can also welcome to join in the discussion there.

8:31 PM  
Blogger Jess said...

frankly speaking, i m waiting for all counters to tank to ground ZERO and i would want to see how long can you tahan.. ;-)

3:46 AM  
Blogger ghchua said...

Hi jess,

You know that it is impossible for that to happen. By having a diversified portfolio, I have diversified away unsystematic risk in each individual company like mismanagement, business failure, accounting scandals etc. As I've said before, these are actually the real risk of a company that only a diversified portfolio will be able to reduce that. Movements in share price is not the big risk for me.

And I did not borrow to invest (i.e. no margin), did not do any contra trades etc. Therefore, the monies in the portfolio are from my spare cash which I can afford to hold on for long term.

9:13 PM  
Blogger Jess said...

well said and i hope this time will be a different experience for you.

You are putting too much faith and hope in the market and you will be surprised this time round and i am sure you will.... ;-)

i would be very interested to see if your portfolio grow faster (due to buying at low cost) or contract faster (due to downturn) ;-p

5:17 AM  
Blogger ghchua said...

Hi jess,

Well, "this time will be different" had always been coined by market "experts" in each major crisis. We have wars. We have oil shocks. We have Asian Financial Crisis. We have SARS. We have 911 etc. Yes, each time, each event is different. But as in each major crisis, the market have come back stronger after major crashes.

The key to successful investing is really to ignore market noises and adopt a long term investment view. Consistent investing is also one of the key merits of long term investing, which means one is buying the market consistently whether it is high or low. Meanwhile, one can collect dividends while staying invested.

It is just a simple and yet efficient way of participating in the market for long term investment goals.

8:15 PM  
Blogger Ryan said...

This comment has been removed by the author.

9:15 PM  
Blogger Ryan said...

Hi jess,

ghchua is building for himself his special "unit-trust" with minimal turnover (the high inital commission costs are spread over his lifetime, 2.5% divide by 50 yr = zero!).

Plus, he will receieve all the dividends to himself for re-investing. John Bogle's book on "Common Sense in Investing" shows that in a typical mutual fund, less than 10% of the dividends went back to the investor ie. investors only benefit from capital gains. And dividends contribute to almost 50% of one's investment returns!

With ghchua's "unit trust", he will get a safe market return (10% -20%) over 50 yrs (my guess is 12 -15% over 40 yrs) and most importantly it fits to his investment strategy and lifestyle :)

9:19 PM  
Blogger Jess said...

how did you know, ryan?

2:16 AM  
Blogger Bella said...


I am currently doing a project on the privatization of Pokka Corporation, and was wondering if you still have the Offeree Circular (dated 11 July 2008) - as I am unable to source it from SGX or Pokka itself.

It would be of great help if you can send it to me. :)

Do let me know.

Thanks in advanced!

My email is: bellaksl92@gmail.com

10:50 PM  

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A self-directed investor, looking to invest for retirement needs and bypass all those expensive financial planners/insurance agents. Investing is fun, profitable or most important of all, knowledge gained is useful for the rest of your life!

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