The Year Ahead - Review/Reflections for 2009 and Investment Strategy for 2010
I remember I wrote this same reflections and strategy piece at around the same time during last year with a heavy heart. During that time, many critics appeared in the "comments" section of this blog, questioning my investment strategy and approach. However, I stand firm on my investment approach and I can say that I had came out of this recent financial crisis in one piece. You might not be able to see it, but having gone through various crisis since I started my investment journey, I can certainly relate back and learn from every lesson.
2009 had been a great year for equity investors. There is no doubt about it. Staying almost 100% invested throughout the year meant that my portfolio had participated in full the market upside since March 2009. I have not made a single sell trade in my portfolio throughout 2009 except for some rights entitlements. Basically, I hold my portfolio dear to ride out 2009 and also added more funds into it via subscription of rights issues, scrip dividend scheme, warrant conversions and direct purchases from the market using dividend payouts, proceeds from M&A activities and of course income from my corporate life.
What will be my strategy for 2010? No change, I am afraid. I am not one person who likes to change often. This also relates back to my personal life as well. I am not comfortable making big changes and I normally like to stick around with a plan if it continues to work. 2010 will still be a year whereby I continue with my diversification and Buy/Hold strategy. However, there will be some minor changes with respect to the stocks that I will bring in or add into my portfolio. I will be using more value investing approach in 2010 as I suspect this year will be a stock picking market. Not all stocks will perform well in 2010 and it might be a year whereby stock picking skill counts. With that in mind, I will try to overweight those stocks which I think are undervalued and has potential to do well in 2010.
I shall end this post by wishing all readers a Happy, Healthy and Wealthy 2010!
posted by ghchua at 12:19 PM
8 Comments:
Hi GH Chua,
Happy New Year!
Cheers,
Musicwhiz
Hi Musicwhiz,
Nice to see you dropping by at my blog. Happy New Year to you too. :)
Hi ghchua,
Taking this opportunity to thank you for answering my queries in 2009, and looking forward to 2010 to learn from you.
To remain stedfast in equities investments during those periods of uncertainties was not easy. I had my fair share of shock and doubted my investments in the equity market. Nonetheless, I did not quit and my investments return positively.
Every bit of your sharing each month has helped me to understand a little better in this type of investments. I am still learning but I don't dare to think I could attain your level of investment approach and strategy.
Hi Everlearning,
Glad that my sharing had helped in your investments. No worries, I am also learning everyday when managing my portfolio. As your nick had suggested, life is an ever-learning process. So, keep on learning and all the best to your investments in 2010!
hey you must be a HNWI...
im sorry if i am new but you are buying both funds and individual stocks? wouldnt it be a drag on performance when you do sell off?
Hi Singapore Stock Picker,
Nice of you to drop by here. Nope, I am not a HNWI. I am just a normal retail investor holding a salaried job during the day time.
I am having funds in my portfolio because of CPF-IS restrictions. Only 35% of CPF-OA can be invested in stocks and therefore I invested the remaining in funds and also used my CPF-SA monies to invest in 3 balanced funds.
Hope that the above clarifies.
Hi ghchua,
Happy New Year! I must say you are one of the most patient local investor who have lots of discipline towards equity management that I've come across. Personally, I have to admit its not easy to learn your style but its definitely insightful to read your views/comments. Hope you could write a book in future. Good luck!
Hi David,
Thanks for your comments. A Happy New Year to you too!
Personally, I think having an investment plan is one of the way to cultivate patience in investing. A plan is just like a road map for one and when there is storm out there, the map will guide you through the "forest". Which is why I always stressed in most of my posts here - Ignore market noises and continue with your investment plan every month.
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