Tuesday, December 13, 2016

Investment rules for myself to obey in 2017

I realized I have been rather trigger happy. I am going to set these rules for myself for 2017

1) Any buy entries must fulfilled one of the three investement theories. A cyclical recovery play, growth drivers play or strong FCF, negligible debt yield plays.
 
2) All entries must come with a potential exit plan with potential reward. POTENTIAL reward should not be lower than 35% in a entry, to accord for the macro risk that this bull market it marching into its 9th year. 

3) 2017 to exit when potential is met regardless of how well market/ sentiments is doing. 

4) If there is no potential buys that meet the above one or more 3 criterias, than 2017 should be the year where cash goes to 50% of portfolio. 

5) Final most important rule: Obey all rules and accept opportunity cost loss, aka money not earned. Treated it as emotional/ zen training test. 

I have been trimming dead leaves (borrowing and adapting from Farmer), I have sold Lippo Mall Retail Trust and M1. Cash is slightly above 40% of portfolio with the sale and small capital injection of 2K (winks)
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15 comments:

  1. la papillionDecember 13, 2016 at 11:40 PM

    Hi SI,

    Mine is also about 40% after trimming some. Have not cash injection for 2 months cos of no work haha :)

    I think you'll still break some rules haha! If that happens what will you do?

    ReplyDelete
    Replies
    1. SillyinvestorDecember 14, 2016 at 12:02 AM

      LP,

      Hmm... why u so no faith in me! Sobz ... if I break the rules I will chop finger!!

      Buy some lady fingers so they become my "fingers", then I chopped some ...

      If I don't break it, u treat me coffee??

      Actually, quite easy not to break the rules la, how do we define40% potential gain? We assume the best lor lol...

      Delete
  2. la papillionDecember 14, 2016 at 12:05 AM

    Haha, break the rules doesn't mean won't make money ;) Sure, treat you coffee is anytime one, no need conditions :)

    ReplyDelete
    Replies
    1. SillyinvestorDecember 14, 2016 at 6:28 AM

      True, totally agree.

      I am just wondering what I am settling for 20-30% profit with potential 50-70% fall, aka bear arrival.

      Can bull run another 2 years? Maybe ... I start to think I am rather silly. Lol

      I cannot pick stocks like most bloggers or professional, so I think I can just hope to do slightly better when durian season comes. I need not a big fat bear to start accumulating again

      I think if sTi goes to 2500-2600, more cash will properly be going down quite quickly

      Delete
  3. Singapore Man of LeisureDecember 14, 2016 at 3:18 AM

    Somebody is finally doing spring cleaning!

    Get rid of dead leaves and weeds ;)

    I'll be surprised if you can spot any potentials that can go up 35% in one year amongst the big caps for 2017.

    Penny stocks, well, maybe ;)



    ReplyDelete
    Replies
    1. Createwealth8888December 14, 2016 at 4:48 AM

      2017 is Bull into its 8th years run. Steady!

      Delete
    2. SillyinvestorDecember 14, 2016 at 6:23 AM

      Smol,

      I am not actually looking at a 1 year time frame for 35% gain. I am thinking about for the catalysts to pend out ... I thinking of the no. Of years a company might do well.

      I do think 2-3 companies are potentials for 40% gain when all catalysts (including good earnings play out)

      Delete
    3. SillyinvestorDecember 14, 2016 at 6:24 AM

      CW;

      If we count 2009 as the start of bull run; since march 2009 is the bottom, 2017 is the 9th year

      Delete
    4. Singapore Man of LeisureDecember 14, 2016 at 5:44 PM

      Sillyinvestor,

      Oh! 35% gain is without a time frame???

      Then I take it back.

      Like that, every stock has the potential for a 35% "gain" if we wait long enough...

      ;)

      Delete
    5. SillyinvestorDecember 14, 2016 at 11:04 PM

      Smol,

      There are some rotten fishes that I bought at too high a price. What to do? Throw them away, or buy salt and salt them and eat them much later.

      LMIR is a salted fish ...

      Eat with porridge every morning good. Lol.
      I have Lee metal also another salted porridge

      Delete
  4. BDecember 14, 2016 at 4:05 AM

    Hi SI

    So strict rules?

    Keep on refining the process. Sometimes standard SOP process may not necessarily work well. I'd rather you be adaptive yet self awareness of what you are doing ;)

    ReplyDelete
    Replies
    1. SillyinvestorDecember 14, 2016 at 6:30 AM

      B,

      Strict? Hardly ??

      I am quite free spirit ... as u can see I mostly all agar agar du...

      So within the rules, the are plenty of room to manipulate and perhaps also loopholes to exploit hahahahaha

      I just dun want To be in the situation where u have no cash at all when STI is at 2400

      Delete
  5. yehDecember 14, 2016 at 5:57 AM

    your rule can also become my rule. hahahaha

    ReplyDelete
    Replies
    1. SillyinvestorDecember 14, 2016 at 6:31 AM

      Yeh,

      Hmm... u mean u want to follow my rule too? Sure man, must pay me royalties ok lol.

      Your shifu will be jealous when he read this a not muhahhahaa

      Delete
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