CY09 portfolio

[CY09]

1st Quarter portfoilo took a beating and I registered a negative 14% decline.

However, I have added XMH, Penguin and SFIG during this downturn and sold KSH

Penguin (64%)
KSH (10.5%)
Fischer (6.22%)
SFIG'' (11.35%)
XMH (1.4%)

[CityFarmer]

1st Quarter portfoilo took a beating and I registered a negative 14% decline.

However, I have added XMH, Penguin and SFIG during this downturn and sold KSH

Penguin (64%)
KSH (10.5%)
Fischer (6.22%)
SFIG'' (11.35%)
XMH (1.4%)

Just complete the account, I am lucky to achieve +5.7% in 1Q 2015.

XMH, very few people are interested on this counter, which I am monitoring closely. What price are you getting in, 20 cents?

[CY09]

Hi Cityfarmer,

I got in at 0.21 and 0.205 (only got 1900 shares at 0.205). Its interesting because the company generates sufficient cashflow from operations to support its dividends and loan repayments and the business it purchased for power generators seems to be good.

I am also looking at some other like TTJ, MTQ, sunningdale

[CityFarmer]

Hi Cityfarmer,

I got in at 0.21 and 0.205 (only got 1900 shares at 0.205). Its interesting because the company generates sufficient cashflow from operations to support its dividends and loan repayments and the business it purchased for power generators seems to be good.

I am also looking at some other like TTJ, MTQ, sunningdale

Yes, XMH is very interesting company, with its current business model, and the recent M&As. At 0.21, the dividend yield is 5.7%. We may discuss further on the stock over the company thread.

Thank you

[CY09]

Routine update.

I have made two new additions to my portfolio these month and they are Colex (at 0.25) and TTJ (at 0.32). TTJ was the larger purchase of the two. The main reason for their purchase is because their free cash flow yield are in the region of 15% and are low to no debt companies.

Part of the purchase was funded from the sale of SFIG shares which were bought at 0.255.

[CY09]

Nothing to post on my portfolio.

As its the time of the year again where graduates enter the workforce and worry about their future and savings. Here is a simple illustration for them (and everyone else of course) which espouses the importance of financial education.

Two individuals, Mr Brillant (Mr. B) and Mr Normal (Mr. N), have graduated and now work at Livic Services at age 25. Being the brilliant man Mr. B is, he is remunerated with a higher pay of $3,850 per month. While normal Mr. N enters Livic Services with a starting pay of $3,450 per month. As Mr N earns lower than Mr. B, Mr N is only able to save 30% of his pay, while Mr. B is capable of saving 40%. Both individuals get a 4% pay rise annually at Livic.

However, Mr. N has an ace and that is his accumulated financial knowledge which was rarely taught in school. As a result, majority of the cohort (including Mr. B ) does not have much knowledge in this domain. As a result, Mr. N is able to manage his savings better and obtain a return of 7% on his savings through investing in Index funds, cash-flow generative businesses and avoiding the pitfalls of investing in damaging financial products. Mr. B, on the other hand, puts his faith in a friend who has become a MA at Dam Bloody Smart Bank. His MA friend introduces Mr. B to a suite of investment products and investing in "stock flavors of the month". This nets Mr. B an annual return of 4.5% (much higher than CPF's weighted average returns). Isn't that great

From this simple illustration, lets tabulate the outcome. At age 45, due to his higher saving rate and pay, Mr. B is financially ahead as he has amassed $77,720, while Mr. N is close behind at $68,728. Things change however at 55, where Mr. N is now ahead at $176,157, while B is at $174,037. From then on Mr. N is forever ahead and this gap continues to widen despite Mr. B's higher pay and savings rate. At age 60, Mr N is ahead at $270,218 while Mr B, $248,941.

This illustration serves to highlight two points. When one is starting out, our portfolio is of a small value, therefore funding more for wealth accumulation through saving makes a bigger impact. However, this advantage narrows as one's portfolio balloons and when our portfolio is substantial, the knowledge in avoiding the pitfalls of mismanagement of one's money becomes more important.

[brattzz]

thankfully, the "ace", accumulated financial knowledge are easier to access now than previous,

A good read of this forum kicks in a lot of value punch!

[CY09]

Have divested SFIG as I do not see the anticipated IPO being completed by end July

In the meanwhile, will be looking at how the proceeds can be deployed into other businesses. I am looking forward to seeing TTJ's results as it is likely to be weak and may be an opportunity to accumulate. For Penguin, it will be important to see how much inventory will be reduced in the next upcoming q2 results. If Penguin is still stuck with a high inventory level, my suspicion is that its build-to-stock program has resulted in high inventory of boats in its storage.

[dzwm87]

I am always intrigued by people publishing their entire portfolio publicly. Nothing against that but personally, it sets up a subtle obligation to account for your portfolio construction. It can be a good check but sometimes it lead to irrational decision.

Not trying to say divesting SFIG is bad but more on a general sense. Either way, I don't think it value adds.

[weii]

Noticed that dzwm87 shared a quote from the late Sir John Templeton, I shall share more on Sir John Templeton.

Sir John Templeton, coined “the world’s greatest stock picker of the century” by Money magazine was only right 66 percent of the time. So if the greatest stock picker in the world needs to be diversified to protect against losses, the average investor can surely benefit from the practice of diversification too.

“Diversification should be the corner stone of your investment program. If you have your wealth in one company, unexpected troubles may cause a serious loss; but if you own the stocks of 12 companies in different industries, the one which turns out badly will probably be offset by some other which turns out better than expected.” July 1949
(Source: http://whatwouldjohntempletonsay.com/200...ification/)

How strong personal character defines investment decisions: http://whatwouldjohntempletonsay.com/201...#more-1113