Chim, for me for performance wise, I only calculated at the end of the year sum up realized gain and loss plus dividends divided by capital; simple calculation for me.
Position sizing, usually it will be around max 20% for one counter; I have occasions that I increased it to 25-30% when I averaged up when the pick was correct.
What if I am wrong? It depends on what went is wrong? Fundamentally market is weak or the company itself got a big problem? If it is the latter, I will probably cut loss and run. Below are my style for selecting stocks, it may or may not need to hit all 3, just to guide me when I screen my stocks.
(1) Normally I don't buy highly geared companies, low or no debt works best for me most of the time so the chance of company liquidity problems are usually low. Many companies gone bust due to liquidity issues.
(2) Get paid while I wait for market to appreciate the value of the stock, so at least 3-4% dividend while waiting.
(3) Low 0.5-0.7x PB or P/NTA provides enough margin of safety, I don't even need it to go back to 1x to make capital gain ultimately.
My strategy is if I know what I am buying, I will stomach the risk better. So far it works for me as I am building my first pot of gold, will it change? Perhaps when it reaches a meaningful size, I will tend to diversify more and size is smaller to protect capital.
Some of you say if your portfolio is not beating STI might as well buy into STI ETF why waste time do active investing?
For me I am not a fund manager, I don't have to beat any performance indicator, what I have to do it to make sure it meets my objective for example enough dividends to pay for my cash flow expenses which index ETF is not used for such objectives, perhaps a REIT ETF could do the trick, I have not compared the returns for the REIT ETF in SGX so can't say much yet.
Keeping it simple with clear objective in kind is always my stance.
Reply to @hk1 : Okay understand now, we are different league one . @Amethyst bro will be interested in AAA bond at 6% yield. You all can discuss in depth! Hahaha
risks and rewards using percentage or dollars to calculate which is better?
Reply to @bensontan : i think depends on timeframes and time horizons. I don't imagine a very short term trader will use %.
thanks for sharing. interesting.
Chim, for me for performance wise, I only calculated at the end of the year sum up realized gain and loss plus dividends divided by capital; simple calculation for me.
Position sizing, usually it will be around max 20% for one counter; I have occasions that I increased it to 25-30% when I averaged up when the pick was correct.
What if I am wrong? It depends on what went is wrong? Fundamentally market is weak or the company itself got a big problem? If it is the latter, I will probably cut loss and run. Below are my style for selecting stocks, it may or may not need to hit all 3, just to guide me when I screen my stocks.
(1) Normally I don't buy highly geared companies, low or no debt works best for me most of the time so the chance of company liquidity problems are usually low. Many companies gone bust due to liquidity issues.
(2) Get paid while I wait for market to appreciate the value of the stock, so at least 3-4% dividend while waiting.
(3) Low 0.5-0.7x PB or P/NTA provides enough margin of safety, I don't even need it to go back to 1x to make capital gain ultimately.
My strategy is if I know what I am buying, I will stomach the risk better. So far it works for me as I am building my first pot of gold, will it change? Perhaps when it reaches a meaningful size, I will tend to diversify more and size is smaller to protect capital.
Some of you say if your portfolio is not beating STI might as well buy into STI ETF why waste time do active investing?
For me I am not a fund manager, I don't have to beat any performance indicator, what I have to do it to make sure it meets my objective for example enough dividends to pay for my cash flow expenses which index ETF is not used for such objectives, perhaps a REIT ETF could do the trick, I have not compared the returns for the REIT ETF in SGX so can't say much yet.
Keeping it simple with clear objective in kind is always my stance.
Reply to @hk1 : Okay understand now, we are different league one . @Amethyst bro will be interested in AAA bond at 6% yield. You all can discuss in depth! Hahaha