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Showing posts from June, 2018

Time in the market & Timing the market

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They sound like opposing terms but can we have the best of both worlds? Answer is CAN... I am a believer of both concepts and Uncle8888's  Pillow Stocks Strategy . The whole process starts from (1) picking the right stocks (I am a lousy value investor, therefore I tend to pick 10-20 stocks from across the sectors instead of focusing on a few of supposedly good value ones), (2) protecting our capital by reaping the capital gains from the gems after some time even though we won't know for sure how long that will be, (3) staying vested at 'zero cost' to reap dividends (beauty of pillow stocks strategy). How much we reap, in terms of dividends and capital gains, depends on our  time vested in the market . On the contrary, we should be regularly weeding out the money-losing stocks (in my opinion, sell when the stop-loss price is hit even if the stock pays dividends) to invest in the money-making ones to ride the test of time. When investing in  the right stock

Yet another case of 'diworsification'

https://www.channelnewsasia.com/news/business/hyflux-singapore-court-supervision-faces-major-challenges-10260230 Let's see how things will pan out after reorganization for the once-star homegrown Hyflux. I kind of believe that the founder (Olivia Lum) would have the tenacity to pull through, given the way she 白手起家。 I am not vested in Hyflux. Just a thought that we must stay alert at all times in our investments and hope that the ones affected by the woes will see this as a lesson learnt. Staying alert means paying attention to new business ventures and the resulting debts/earning, as well as the impact on the company's cash-flow. (Keep your eyes peeled to any news.) So your alarm bell would ring somewhere before a price landslide goes to 10% and beyond. Even though as minority shareholders we have no means to control the business direction and its management, we cannot simply take our stake for granted and rest on our laurels. #my200thpost ***

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The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein. This blog may contain affiliate links to external sites.