Friday, October 31, 2008

My Investment Portfolio (October 2008)

There are some major changes in my top 30 holdings this month, due to the massive volatility experienced in stock markets around the world. As a result, some of my holdings had fallen out from the top 30 list because of the downward movement. However, I believe that markets will recover in time to come as the financial markets need time to heal its wound from this current crisis.

As usual, I have added some holdings into my portfolio this month, especially from the bombed-out oil and gas sector as oil price hits bottom. New entries in my top 30 holdings this month include Singapore Food Industries, Hong Leong Finance, and Viz Branz. I have added into Hong Leong Finance and Viz Branz this month while Singapore Food Industries moved up because major shareholder is reviewing their position in the company. A stake sale might be expected.

Going forward, I will continue to buy stocks on weakness. With REITs and shipping trusts declaring dividends, I should have more funds to re-invest back into the market in the coming month and in December. I will seize this opportunity to buy more stocks on weakness, while holding onto my current portfolio tightly to ride through this crisis.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 31 October

Top 30 Holdings (Sing$ Denominated shares)
1. Raffles Education Corp
2. SGX
3. Noble Group
4. F&N
6. Hersing
7. SembCorp Marine
8. ComfortDelgro
9. Parkway Holdings
10. CapitaMall Trust
11. Hong Leong Finance
12. Jardine C&C
13. Singapore Food Industries
14. Cosco Corp
15. Jaya Holdings
16. SMRT
17. Ascendas India Trust
18. CapitaLand
19. Eng Wah Organization
20. Straits Trading
21. Keppel Corp
22. WBL Corp
23. Viz Branz
24. Food Empire
25. CitySpring Intrastructure Trust
26. SingTel
27. Bukit Sembawang Estates
28. Cerebos Pacific
29. Wheelock Properties
30. SBS Transit

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
3. CapitaMall Trust
5. Eng Wah Organization

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

My Unlisted Company Portfolio
1. JK Tech Investment
2. Automated Touchstone Machines Ltd
3. Iconic Global Limited
4. Greatronic Limited

My Unit Trust Portfolio:


Thursday, October 09, 2008

Follow Through Your Investment Plan

Today, I encountered a comment from an investor who said that he felt that markets are too volatile currently and he will do dollar cost averaging at a "better time".

Below is the definition of Dollar Cost Averaging:
Dollar cost averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts.

Obviously, what the investor said above is not dollar cost averaging. He is trying to make purchases depending on market conditions. Which means, if he sets out to do dollar cost averaging initially, he is not following through his plan.

A lot of investors got panic lately and abandon their investment plan due to current market conditions. There is a saying - "If you fail to plan, you plan to fail". I would like to add that if you don't follow through your plan, your plan will fail no matter how good it is.


Monday, October 06, 2008

Stock Markets Are Leading Indicator

Dear readers,

A lot of people had asked me - Since every other day we heard and read reports that so-and-so bank is failing, why are you still investing in the stock market?

This is because stock markets are leading indicator. Which means, what you are seeing now (like bank failures, credit tightening, slowing economy, recession etc) are the outcome of this crisis. These events are the effect of this crisis, and not leading to this crisis. Bank failures doesn't lead this crisis. Slowing economy doesn't lead this crisis. This crisis started long before that. Therefore, the events that you are reading in the news and papers are in fact lagging indicators.

Since stock markets are leading indicators, one should not be afraid of investing in the markets when there is bad news all around. Because the valuation of the stock market would have reflected all these bad news by now. What we are concerned are signs of recovery, not effect of this crisis. Once there is a sign of recovery, the markets will rally even if the economy might not be in good shape. And if you wait until then, you might have missed the boat.

What should an investor do then? The key is to stay invested at all times and ride out this crisis. Try not to monitor the markets every minute because it is stressful and not productive. Have a diversified portfolio, continue with your investment plan and sleep well at night.



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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