Saturday, November 30, 2013

My Investment Portfolio (November 2013)

STI closed down to 3176 points by the end of November 2013. It was a lacklustre month for the S'pore market despite Dow hitting new highs. Low volume and lack of direction had been the characteristics of the local market this month. The Thai demonstration towards the end of the month had further dampened interest in the market.

For this month, I have attended the following AGMs/EGMs/briefings - Southern Packaging, Jason Marine, F&N, Sunright, Sinopipe, Vicplas, Khong Guan, Mermaid, CSE Global, Xpress and TTJ.

For my top 30 holdings, except for Old Chang Kee, no major movements as it had been a quiet month in terms of corporate actions and news flow.

I have bought the following companies from the market this month - Azeus, BBR Holdings, Chemical Industries, Chip Eng Seng, ComfortDelgro, Dutech, Eastern Holdings, GK Goh, Hanwell, Haw Par, Hwa Hong, Isetan, KSH, Lantrovision, LC Developments, LHT, Lian Beng, NSL, Penguin, PM Data, PNE Industries, SBS Transit, Southern Packaging, Stamford Land, Teck Wah, Union Steel and UOB Kay Hian. There is no sale done this month.

I have accepted the following voluntary delisting/cash offers this month - Synear, ConscienceFood, People's Food and Pertama. I have also participated in the following scrip dividend schemes - Aspial, TEE International and United Overseas Australia.

I have subscribed to the following rights issues - CapitaRChina and GRP. I have also converted the following warrants to shares - Ntegrator.

December 2013 is expected to be another quiet month for me, except for a few EGMs and AGMs. I will reflect on this year in a nutshell and also derive my investment strategy for 2014. Hope to share with all of you out there soon.

My S'pore Stock Portfolio - Top Holdings, cash investment only (correct as at 29 November 2013)

Top 30 Holdings (Sing$ Denominated shares)
1. Bukit Sembawang Estates
2. Sarin Technologies 
3. United Engineers
4. UIS 
5. Jardine C&C
6. Superbowl
7. Haw Par 
8. Old Chang Kee
9. Metro Holdings
10. Aspial 
11. SGX
12. F&N
13. Bonvests 
14. OSIM International
15. Sing Investment & Finance 
16. A-REIT
17. SembCorp Marine
18. Noble Group  
19. CapitaMall Trust 
20. Far East Orchard
21. The Hour Glass
22. Hotel Grand Central
23. Hiap Hoe
24. Hong Fok
25. Low Keng Huat
26. Hong Leong Finance
27. Singapura Finance
28. GK Goh
29. MTQ Corp

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

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

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

Top 5 Holdings (CPF OA investment)
1. Keppel Corp
2. Streettracks STI ETF
3. CapitaMall Trust
5. Challenger Technologies

My Hong Kong Stock Portfolio
1. Peace Mark Holdings - Under Voluntary Liquidation

My Australia Stock Portfolio
1. GPS Alliance Holdings Limited

My Unlisted Company Portfolio
1. Automated Touchstone Machines Ltd
2. Iconic Global Limited
3. Greatronic Limited
4. General Magnetics
5. Fastech Synergy
6. Beauty China- Under Liquidation
7. Memory Devices
8. Jurong Tech - In liquidation - Compulsory winding up (Insolvency)
9. FM Holdings
10. Japan Land - In liquidation - Members' voluntary winding up
11. Zhonghui - In liquidation - Compulsory winding up (Insolvency)
12. FerroChina - Under Liquidation
13. FirstLink Investments
14. NEL Group
15. KXD Digital Entertainment - In liquidation - Compulsory winding up (Insolvency)
16. Shanghai Asia Holdings - In liquidation - Members' voluntary winding up
17. Jets Technics

My Unit Trust Portfolio:


Monday, November 11, 2013

Managing a portfolio of 500+ stocks - The Process

Dear all,

How do you manage a portfolio of 500+ stocks?

I think this question came out quite often during my conversation with many people out there and also comments on my blog postings. Therefore, I have decided to write this blog entry to response to some of the queries out there.

Previously as a Test Development Engineer, I was required to run more than 3000+ regression test cases for my product across various platforms. Nobody asked me how I managed to do so and I was surprised that many people felt that having 500+ stocks is one too many. Imagine running 3000+ test cases!

I had actually posted some of the commonly asked questions on my portfolio in this blog entry entitled - "Questions, Questions, Questions......" a few years ago. For those readers who might miss out the last time round, you can refer to the link below for reference:

Of course, there had been a slight change in my strategy since 2007. Previously, I just diversified across a whole basket of stocks and let the market decide which are the ones that would appear as my top holdings. Since I turned full-time, I have adopted a slightly different strategy of overweighting my better ideas.

There is no secret in managing a portfolio of 500+ stocks. Just like running 3000+ test cases, you need to have a process in place. One of the most important concept to me is partitioning. Partition means breaking up your stocks into categories. Another word for this is called grouping. Basically, as an example, I partitioned my stocks into 3 major categories:

1. One group which require close monitoring
2. One group which you can monitor once in a while
3. One group which you do not need to monitor at all.

So, there you have it! Your stocks are now fall in place in one of these categories. Basically, you can ignore stocks in 3. as these are mostly ones that are insignificant in terms of weightage of your portfolio as they are "bombed out" stocks. Stocks in 2. have potential but you really do not need to look at them at all times as they are mostly in the middle part of your portfolio, whereby it is not so significant. Your core holdings in 1. which you need to look closely at, and most possibly need to add onto them every now and then.

You can of course have your own grouping methodology and you do not need to follow my example. What I want to show here in the above example is that having a process in place is more important than the number of stocks in your portfolio. Because if you have a process and you manage your portfolio based on your process as a guideline, everything will fall in place nicely and you won't get off-track easily even if you have a list of 500+ stocks.

In my previous life as a Test Development Engineer, I focused mainly on those problematic test cases that always fail on the first run. If you have a portfolio of 500+ stocks, you should focus on those that matters most to you in terms of portfolio weightage.



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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