Thursday, October 24, 2013

My stock portfolio as of 24 oct

Was wondering if I should let readers know my stock selection, and I realized many bloggers have it, so here goes.

I invest mainly for yield, and is willing to hold for the long term. I do not consider an investment a bad investment simply because the current price is lower than my average purchase price. I consider it a bad investment if the "story" I have about the company changes for the worse and I made a judgement mistake either in the business assumptions or valuations.



Lee metals is a small company that give higher yield, but also come with higher risk, since it's business is cyclical and it balance sheet is not actually rock solid. I expect at least 7% yield till 2014.

Nam Lee is in net cash position with projected yield of 5.8%, I will review this counter and might sell this if the next quarter confirms that it is still burning cash, and is earnings deteriorates further.

SPH is a stalwart with dividend yield of around 5%

If lippo-malls and Sabana fundamentals do not change, it should yield  above 8% till 2015 at least.

Yangzijiang would probably yield 4-5%, but with golden agri, I invested in them more for capital gain. YZJ is one of my favorite, both a yield and growth play, but not a long term counter due to the cyclical business.

Noticed I mentioned that I invest for yield, I deliberately left out the word "passive income". This is because with the exception of SPH, I do not intent to hold any of the counters for the long run, e.g. more than 5 years. I have a horizon of 2-3 years for most counters. I will review them as and when the "story" changes, if the story is getting better, it might be longer than 3 years, if not, it might be less than that. I am not dogmatic in my approach.

Do note that this is not a buy or sell call, you need to do your own research. 

I have money set aside for investing in bear market, I have several insurance; H&S, life, endowment plans, Critical illness term plan for myself and my family before I invest in the stock market. I have a stable job, and has also set aside money for my kid school needs, and other expenses before I invest. Prudence is encouraged. Take care of risk, before taking care of rewards.

I do not use my CPF for investment, I treat them as compounding bonds purchases, although I do transfer money from OA to SA. I might use it for investment only during ultra-bear market. (e.g. more than 50% fall in market, and will most probably do it tranches, even then)

Comments are welcomed. 


  1. 7 counters are considered as too less?
    Any watch list?
    Btw, personal view, your margin of safety isn't so significant, ready for next crisis.

  2. Hi Ah John,

    My watchlist is too long,

    anyway, there are

    LKH, Wingtai, SimLian, CES,

    SGX, UOBkayhian


    SUntec, Acendas,

    Sinamars Land

    PNE industries, Sin Gheet Huat, Asia Enterprise, CDW

    I find either the price too high, or the industry outlook unfavorable to enter.

    As for margin of safety,

    All my counters are less than 1 year old, I just "cleanse" my portfolio. I used to own a lot more s-chips, the most recent one that I sold being Anchun.

    As I say, I will not be overly worried if any of the counters were to fall 10%, any amount more than that, will trigger accumulation.

    I have been waiting to accumulate on all my counters on further weaknesses, and only have opportunity for Lippo, and YZJ.

    I have confidence in their earnings over the next 2-3 years, of course, My "story" might not turn out well, I believe I pay a fair price for all counters, although I would not say they have wonderful MOS now. It should appear when the catalyst pend out over the 1-2 years.

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