Portfolio strategy/guideline

(09-09-2014, 07:29 PM)wahkao Wrote: for me, i research though all 800 stocks on SGX. And then cherry pick the best ones.

might as well do like ghchua.

gh already completed his experiment. now into phase 2...


Earth day - save the world everyday.

Right now my portfolio is:

50% Core positions of long term dividend value growth stocks

15% Peripheral positions of long and short term value growth stocks

35% Cash + dividends not yet received

The only reason why I have 35% cash is because I sold a core position that was 20% of my portfolio. Before then it was 70% Core and 15% cash.

Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

Actually, I always thought that focusing on the business was the key aspect of value investing. Don't get too obsessed over the unrealized gain % or "multi-baggers". My policy is - if the business is doing well and is not over-valued, I continue to remain a shareholder.

(21-06-2015, 11:32 AM)Musicwhiz Wrote:

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

Actually, I always thought that focusing on the business was the key aspect of value investing. Don't get too obsessed over the unrealized gain % or "multi-baggers". My policy is - if the business is doing well and is not over-valued, I continue to remain a shareholder.

Thanks for the advice.

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

Now that's really an emotional way to look at things... not a good thing when it comes to investing.
$1 earned from a "2 bagger" = $1 earned from a "1 bagger" = $1 earned from picking up a coin on the streets
It is still a $1.

Unrealized gain or even previously realised gains shouldn't have any impact on your portfolio decisions.

(21-06-2015, 04:13 PM)GFG Wrote:

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

Now that's really an emotional way to look at things... not a good thing when it comes to investing.
$1 earned from a "2 bagger" = $1 earned from a "1 bagger" = $1 earned from picking up a coin on the streets
It is still a $1.

Unrealized gain or even previously realised gains shouldn't have any impact on your portfolio decisions.

Hmm. Not sure how it's emotional though. Just trying to rebalance my portfolio and focus on my winners. Anyway, thanks for that.

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

A measurement of performance, should includes both realized and unrealized gains, shouldn't it? The XIRR and NAV methods include both.

(21-06-2015, 04:22 PM)Bubbachuck Wrote:

(21-06-2015, 04:13 PM)GFG Wrote:

(21-06-2015, 10:18 AM)Bubbachuck Wrote: Keep your winners and sell your losers:

Hi buddies, I'm planning to sell my loser and want to buy more of my best winner to make it my core holding. However, I'm hesitant because it will dilute my unrealized gain (%) because I'm nearing my first 2 bagger experience. I am confident that this will still do better in the long run. Just like to ask your opinion, does the unrealized gain (%) matter to you just to have "multi-bagger" in your portfolio?

Now that's really an emotional way to look at things... not a good thing when it comes to investing.
$1 earned from a "2 bagger" = $1 earned from a "1 bagger" = $1 earned from picking up a coin on the streets
It is still a $1.

Unrealized gain or even previously realised gains shouldn't have any impact on your portfolio decisions.

Hmm. Not sure how it's emotional though. Just trying to rebalance my portfolio and focus on my winners. Anyway, thanks for that.

Hi
It's emotional cos you're hesitant to buy what you perceive to be a winner, just to avoid diluting your winner's return.
A decision whether to invest more into this winner should be based on current factors. What's the value currently, and what's the price U can get it at now? How does your unrealized returns in this company affect its future prospects, or whether your current investment will be a good one? It doesn't at all.
Your decision should not be affected by your previous investment, whether it's a multi bagger Win or even a multi bagger loss.
Admittedly, this is hard to understand and even harder to practice, I myself m not immune to being emotional.

For eg. Many studies have shown that ppl are more willing to risk losing "profits" from successful earlier investments, rather than lose the same quantum if there's no earlier profits
Reason being ppl perceive these profits as something additional.
Which is why I gave the analogy that a dollar earned in any way is = $1.

Yes, portfolio rebalancing is part of investing n managing capital. That's not the point I m making. What I m saying is simply that if "avoiding diluting the multi bagger return" is a factor in deciding whether you should invest more, that's definitely emotional.