Tuesday, October 23, 2018

My 15% Portfolio - Changes After 3 Quarters

I must have been too busy lately - juggling too stuff and having too many things on my mind.

This is because I realise I have forgotten to put up a post on the update for my portfolio. Thus, here is a short post on my update.

Please do note that this update is as of today, which is already 23 days off from 3rd Quarter 2018.

Prior to taking a look at the changes in my portfolio, let me emphasize on the following:

1. This portfolio review is calculated from 26 Dec 2017 and the aim is to review the total portfolio gain after 1 year.

2. The counter's initial share prices are their respective share prices on 26 Dec 2017.

3. The gain and loss stated is just a simple calculation of the difference in share prices, ignoring the transaction fees.

4. At times, if stated, the gain could include dividends.

5. This review will include my overseas counters in USA and Hong Kong.

End of 2nd Quarter 2018
End of 3rd Quarter 2018
Singapore Telecommunications Limited
Singapore Telecommunications Limited
Chuan Hup Holding Limited
Chuan Hup Holding Limited
Captii Limited
Sold All At 24% Loss
Japan Food Holding Ltd
Japan Food Holding Ltd
The Trendlines Group Ltd
The Trendlines Group Ltd
Starhill REIT
Starhill REIT
HongKong Land USD
HongKong Land USD
Ellipsiz Ltd
Sold All At 25% Loss
Sysma Holdings Ltd
Sold All At 5% Gain
Singhaiyi Group Ltd
Singhaiyi Group Ltd
The Hour Glass Limited
The Hour Glass Limited
Powermatic Data Systems Limited
Powermatic Data Systems Limited
The Walt Disney Company (USA Counter)
The Walt Disney Company (USA Counter)
Quarterhill Inc. (USA Counter)
Quarterhill Inc. (USA Counter)
Win Hanverby Holdings Ltd (HK Counter)
Sold All At 27% Loss

Additional: APAC Realty Limited

Additional: New Big Idea!

Additional: New Big Idea!

Additional: Facebook, Inc. (USA Counter)

Additional: Alibaba Group Holding Limited (USA Counter)

Do note that I do realize that it is almost impossible to make a 15% gain in the current market conditions. In addition, I have continue to sell the companies that no longer fit my strategy even at deep losses.

I had managed to keep my portfolio at 16 companies -  just 1 additional company from my last portfolio update. There are also 2 new big ideas which I will state in the future. One of the existing companies have also been upgraded to a big idea. For the Big Ideas Investing Theory, the current 11 companies contribute to over 70% of my portfolio.

In Short.

Despite my big losses reported for my last 2 updates, my overall portfolio is down at about 6.96%. As per my historical return, I believe that once I continue this strategy for at least 2 years, I will eventually make a gain for the portfolio.

Thank you for reading.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote

Monday, October 15, 2018

A Consolidation of Different Thoughts

Dear Readers,

It has been some time since I wrote my last post. Thus, I will be consolidating many of my thoughts over this time in short articles below in this post.

Happy Investors Despite A Bloody Market

Picture taken from Moltey Fool
STI had went down from over 3100 points to the current 3045 points as of today. Although you still seem to notice people stating that they had exit the market with “many bloody wounds”, but its seem that there are also many people looking forward to this drop.

For myself, I basically went through excitement, panic and indifferent in a few days. Since then, I have stayed indifferent to all the market downturn as I felt maybe there are still many people looking to enter the market.

On the other hand, my portfolio has since dropped about over 6.5% since 26 Dec 2017. This is almost similar with the drop in STI ETF (including dividend). In any case, I am still not performing better than the market. But I believe I will get there.

Anyway, I have added a tab where I will be updating my portfolio performance on a weekly basis for my own tracking. You can see how the performance of my portfolio changes over time.

Summary of Big Ideas Investing Theory

As for the Big Ideas Investing Theory, the following is a short review of what have happens to the companies:
  • Big Idea 1, 2, 3, 5, 7, 8, 9, 10 – Remains in the portfolio.
  • Big Idea 4 and 6 – Sold Fully (read it here)
  • Big Idea 11, 12, 13 – After selling the Big Idea 4 and Big Idea 6, I had re-deploy some cash into these 3 big ideas. Big Idea 11 is an existing company in my portfolio that has been upgraded to a Big Idea. Big Idea 12 and 13 are new additions. I will be writing about these companies in due time.
Currently, there are 11 different companies within the Big Ideas Investing Theory and contributing to over 65% to 70% of my portfolio.

Diversification in Strategy, not Companies

Picture taken from mnacritique
This was something I shared during the last seminar organised by IN.

Previously I use to have over 25+ companies. In my view, that was one of the way to diversify being a value investor. Do note that I was having a smaller warchest to invest with at that time.

After creating the Fundamental Scorecard Website and being somehow influenced by Simple Investor, I decided to consolidate my portfolio. I sold many companies in my portfolio despite making losses.

Even with lesser companies in the portfolio, I still managed to diversify my portfolio via different strategies.

If you have read about the Fundamental Scorecard website and Moat Scorecard via IN, you will know that Simple Investor and I had create 3 different scorecards using 3 different investing style.

By understanding the theories behind each investing style, I am able to diversify simply by investing in the companies that passed each scorecard method. 

When I Sell

Similarly, during the seminar, someone also asked us a question of when I sell. For me, the answer is simply selling the number of shares that is on and above my core holdings of the company, assuming nothing fundamentally has change, when the share price increases above my intrinsic value.

For example, I have 5000 shares of core holdings for Singtel at 3.40 and I believe the intrinsic value of Singtel is $3.40. When the share prices falls drastically to $3.20, I bought an excess holdings of 3000 shares in Singtel. When the share price rises to $3.50, I sold all my excess holdings of 3000 shares of Singtel. In this way, my core holdings’ average share price will eventually get lowered every time I buy below my intrinsic value and sell above m intrinsic value.

Buy Core Holdings: 5000 x 3.4 = 17000
Buy Excess: 3000 x 3.2 = 9600
Initial Average Price: 26600 / 8000 = 3.325
Sell Excess when Share price Rises = 3000 x 3.5 = 10500
New average price = (26600-10500) / 5000 = 3.220

Furthermore, I will sell all my holdings of a company, including core holdings, in the event (1) Fundamentals has change, or (2) New and BETTER Opportunities Arises.

Basically, that's all my thoughts for now. I will be writing about the new big ideas in the next few posts. 

I hope you look forward to them. Thank you for reading.

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Wednesday, October 10, 2018

The Road Less Traveled To Destination Unknown

This post was actually named as "Crazy Crazy Asian". This is because I am not rich YET. But I am sort of crazy.

That is what some of my friends said about me.

Firstly, they commented that there is no logic in my recent choice of employment.

"So you went from a bank to a FI and now a fintech... this is not a path one will take."

Next, they asked me, "how did you find time for all these other stuff I am doing?"

Other stuff: Being a blogger, an investor, intending to have a fund, a co-founder to fundamental website, doing all sort of seminar, and also all these collaboration.

Finally they commented that every crazy move has a plan. But my moves seem to be all over the place.

After hearing about all these comments and some self reflection, I do realize that I am quite CRAZY.

Thus the term - "Crazy Crazy Asian".

I do seem to be taking on the road less traveled. In fact, I believe only a few traveled.

But where is the destination? Why am I doing all these?

At the start, my aim was to eventually be a Crazy Rich Asian. I tried all sort of possible way to earn extra income. But it was in vain.

Then I eventually start to blog to just share some of my investing journey.

But as I blog, I started to learn too. Then as I share, a hobby became a passion. Then I realize I seem to be "okay" at it. Then I thought I should try to start to earn from this passion.

As time passes by, investing has become something that is so intertwined in my life that I believe my destination will have something to do with it.

Therefore, I thought of a dream plan not long ago - which I hope can be my destination and lead me to possibly becoming a Crazy Rich Asian.

The dream plan is:

I will teach with a database of methods for you to subscribe to. Eventually I will also somehow start my private fund.

Thank you for reading my post.

With that I like to apologise for the lack of post once again, I will try to come up with a better one soon!

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.

Tuesday, October 2, 2018

Big Idea 4 & Big Idea 6 - SOLD!

I have officially disposed all my positions in Big Idea 4 and Big Idea 6. Since I have already sold, I will reveal what Big Idea 4 and Big Idea 6 are.

Big Idea 4 is…Ellipsiz Ltd.

In my last post, I have stated that “In 2 months’ time, it will announce its full year results and more answers on the use of its cash pile could be reveal in its financial report. Therefore, I will decide then on what to do with this company….”

After the release of the annual report and receiving a reply from the investor relations, I have decided to offload all my position in Ellipsiz Ltd at a loss. Nevertheless, do note that this loss was based on my re-entered price. I had previously made a 280% gain on the company prior to selling all at its peak.

So what were the factors that caused me to sell off this Big Idea?

1. Annual Report
Abstract from Latest Annual Report
In the above abstract, it seem like the Lums are intending to use this company as their investment holding firms. Other than investing in Kalms, they had yet to do anything else with their cash hoard.

In my opinion, the strategy seem to be a bit directionless. It sounds like “I will invest in any undervalued opportunities”. It is not a wrong strategy but I believe there are other better/more established investment holding firms for me to invest in.

2. Reply From Investor Relations
My Question

Their Reply

If you read through the reply, you will probably get the W** feeling. "Say like never say". Maybe even they do not have an answer?

Thus, the above factors made me consider my holdings in Ellipsiz Ltd seriously and I decided its time to offload the company fully.

Big Idea 6 is… Sysma Holdings Ltd.

I did not talk much about the company because StockResearchAsia has already wrote a lot on the company.

Despite the positive vibe in the blog posts by StockAsiaReport, I still decide to sell the company due to the following:

1. Dividends below expectations

Despite having so much cash, the company only increased the dividend from 0.5 cents to 0.8 cents. I was expecting a much higher dividend payout but I guess the management had other plans.

2. Lack of Catalysts

I do not foresee any other catalysts in the next year for the company, other than using its cash to acquire other companies. Furthermore, with so many en-bloc condo purchases by the developers, I do not foresee Sysma Holdings Ltd having significant opportunities in its niche market - the construction of GCB projects.

3. Other Opportunities

Better opportunities in other construction companies has arise and the time seem right.

Thus, in view of the above reasons, I decided to sell all of Sysma Holdings Ltd at a slight profit!

Please do your own due diligence before you take any action on the above counters.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! 

We have also released the Moat Scorecard with InvestingNote. Do take a look!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote.