: the following is written by me and me alone. It is written after digested the above posts by ksir and etc.
: skip this post if you demand facts and not able to read fiction/stories written by me.
my dear friend,
allow me to express my gratitude as I know and appreciate all your concerns.
live is never easy especially 2015,
market is volatile,
my health also affected during this trying period,
i'm glad that things are turning better as I continue to fine-tune my process.
to quote one of our value buddies:
"Journey of a thousands miles begin with a single step"
I had taken a bold steps 5 years ago and become a full time investor.
I didn't leave because it was hard.
I left because it was no longer worth it.
I wanted to learn a lot.
I wanted to enjoy what I do.
I wanted full control of my time.
I wanted to start to enjoy my life again.
I wanted to commit to my other activities.
I don't really have a view on the market.
I wanted to focus on the process than return.
I do not like to predict where the market will move.
I just want to buy good stocks at reasonable valuation.
That's why I did not calculate my portfolio returns aka no spreadsheet.
I would like to position my portfolio accordingly so that it can adopt to different market conditions.
My key is to stay fully invested at all time regardless of market condition.
Having an investment plan is one of the way to cultivate patience in investing.
My plan is to stay invested (fully if possible), and re-invest my dividend into existing portfolio.
I started by gathering a portfolio based on wide spread of stocks.
Then, I systematically isolate out those problem stocks:
- less promising
- under performing
Instead of selling these problem stocks in one go,
I prefers to reduce their stakes,
and gradually remove from my portfolio.
It's a robust
out of the markets;
no market "noise
I reminded myself to have
the will to last.
The next part of my strategy is much harder to execute:
Add onto better ideas.
Knowledge is only useful when applied.
I need to gain more confident
in overweighting better ideas.
Being a full time investor means more time to:
- relevant articles from internet & library
b. go thru AR/circulars
- look deeper
c. attend AGM (once a year except close monitor)
- ask questions to gain more insights
d. networking with fellow investors
- share and learn
- less lonely journey
As part of fine-tuning in overweighting better ideas,
I decided to adopt value investing strategy:
- under value
- good cashflow
- reward shareholder consistently
I started to overweight under value stocks.
I brought more small & mid cap value stocks.
I also started to closed out positions in overvalued counters.
Agile money management: know your stories and tasks, do sizing and prioritize them
As I no longer get a regular salary, my main source of income and investment fund come from dividends.
In fact, most of my trades were re-invested dividends.
Every month, I need to know how much cash I got,
subtract my expenses,
get all cash invested,
and more importantly:
When I begin my journey, I thought,
participating in right issues means add to existing stocks at a discount
save on the brokerage
I done some fine-tuning.
I would like my stake in REIT to be less than 10% of my portfolio.
REIT is prone to call for right and I have to folk out $$$ (disruptive).
Part of my fine-tune also includes increase stake in blue chips.
A quick recap:
My aim is to setup a robust and income generating portfolio that avoid major "failure".
It should not required:
a. staring at stock market
b. active management
It should allow me to:
a. sleep better at night
b. have peace, rest and recovery
puzzle which was always in my mind.
It was triggered
again when I read ST just now and actually prompted me to write to our value buddies.
Samuel Chan interviewed Mary Buffett:
Q What has been your biggest investing mistake?
A Being too cautious, not buying something when it was cheap and then regretting and buying it at a higher price.
Since I adopted value investing, this questions is always looming at the back of my mind.
I enjoyed a stabilize
portfolio by introducing more value stocks
at the expense of not been buying growth
The good things about my portfolio is preservation
of capital and dividend yield.
The downside -
unable to participate fully if growth stocks rally further.