This is just my thought process and I wanted it to be recorded down.
In addition to what I wrote in the last post, I had a few more thoughts:
1. Every Counter Will Drop in a Market Downturn.
When there is “blood on the ground”, every counter will be on a downtrend. The only difference is drop more or drop less. Cash will become the main call option at that point.
2. Diversify Less.
This is my main problem. I am trying to reduce my counters to have a more concentrated portfolio. I still preferred a portfolio of 15 to 20 counters.
3. Invest in Great Companies at Fair Prices, not Fair Companies at Cheap Prices.
In order to have a more concentrated portfolio, I have to invest only in Great Companies at Fair Prices. This was stated by Warren Buffett and repeated to me by Simple Investor SG. Eventually this will reduce my portfolio from falling too much in a major downturn.
4. Why Should Someone Subscribe To Fundamental Scorecard website during a Major Downturn?
Firstly, it is to give confidence to a subscriber to purchase at that point in time. As the share price of a counter falls, a retail investor’s target price will start to shift. Hitting the purchase button is a burden.
Friends started asking me at what share price should they purchase Singtel? Then I asked them instead, although there is still a possibility that Singtel could hit below $3 (Just look at ComfortDelGro and M1), but does it matter if you purchase it at $3.3 or $3.37 if you are keeping it for at least the next 2 to 3 years?
At that point, I believe every retail investor will need some help to guide us along and I believe Fundamental Scorecard website is a solution.
If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the website for more information and sign up here!