On the investment front, some of my recent picks this year have done well....even the bad picks of last year are looking brighter.
Top 3 picks:
Venture Corp + 23.64%
Capitaland + 15.41%
CWT Ltd + 13.37%
As a portfolio manager, nobody knows our needs better than us. If we don't take responsibility and exercise discipline, we could find ourselves in a lot more trouble when the tough times hit. This is when I often think about the past and know that given the game is so hard - it is best to avoid the losers.
After all, even Warren Buffett's two rules underline the fundamental that as long as you don't lose money - it is a great sunny day. You live to fight on.
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As a relatively young working adult, I believe it helps to reflect on things often and while being young means time is on your side - It always pays to be humble, and continue to learn. The most pertinent warning comes from this 2007 TNP article I chanced upon recently.
BURNT BY STOCKS - I LOST $700,000 IN 3 MONTHS
Student
on winning stock market streak, then he loses dad's life savings
Lesson points:
1. Money doesn't come "easy"
If you think money is easy to be made, you may be sorely wrong - people may be right for the wrong reasons and wrong for the right reasons. The game is never in your control - the day you think you are 'master of the universe' - that's a very dangerous day
2. Never borrow money to invest
Markets can stay irrational longer than you stay liquid. If you do not have the holding power, you cannot ride out a storm.
3. It is an emotional game
Mastering control over fear and greed is necessary to do well. Otherwise just stick to regular investment in index funds.
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With this lessons in mind, I am cognizant that some rethinking and rationalizing of my portfolio is necessary.
My strategy
1. Reassess the worse case scenario (maximum downside that any asset could have)
+ This is defined as the point where you will bet the house (but someone else's blood is on the
street)
street)
2. Managing the cash/bond portion of the portfolio (having a larger portion in this segment will reduce volatility)
+ The goal is target quarterly re-balancing to 60-20-20 (Equity-Bond-Cash)
3. Take some profits off the table to manage risk (Rome wasn't build in a day and neither is personal wealth)
+ Bird in hand is worth two in a bush. My father often told me profit is (paper profit - unrealized)
but losses are actual losses as it may never 'come back'.
but losses are actual losses as it may never 'come back'.
All the best.
TFG
