Tuesday, April 2, 2019

I Sold All Of It!


I had sold off ALL OF MY POSITIONS in The Trendlines Group Ltd.

Initially, I believed my losses to be more than 50% due to my excel tracking. But after I calculated, the losses is about 40% instead after holding for about 1.5 years. Nevertheless, it is still a major hit to my portfolio.

The main reason why I decided to take the losses was due to a few reasons:

- I want to have more cash for my margin REIT strategy (Do note I do not add funds to my portfolio. Thus, if I had a new idea, I will probably need to sell an old idea.)

- It is not really about the company. Having already written numerous pieces of the company, I still believe it is a good company. But it is probably not suited to investors living in Singapore whom believes significantly in dividend. Thus, when the company did not release any dividend during the Full Year Report, I decided it was time to breakup with it.

- My new investment enlightenment/philosophy – The importance of certainty and comfort-ability. As I have share to my Telegram group:
  1. Be Certain - Be certain of what company you are investing in. Know it's business, know its moat against its competitors, know how it earns and spent money, etc.
  2. Be Comfortable - After being certain, you have to be comfortable in owning the company. Any noise will not make u think too much, unless fundamental changes.
Thus, do note that I was certain of the company, but uncomfortable to continue to hold it die to its opportunity cost. I foresee it will take at least another year to see some sort of returns given back to investors. 


Therefore, with the above reasons, I hope I explain myself on my decision to sell all my holdings in The Trendlines Group Ltd.

In the next article, I will probably write about my thoughts on the use of margin and my margin REIT strategy.

Please do your own due diligence before you invest/exit in the above counters.

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4 comments:

  1. You have made the right decision. There is no point in sticking with the company which hasn't paid the dividend during the full year.

    ReplyDelete