Monday, June 18, 2012

Portfolio Update - 18 June 2012

From the last update on 6 April 2012, there were no change in the portfolio. I still maintain the 4 stocks in the portfolio i.e. DKSH, AEON, Oldtown and Wellcall. I have also mentioned why I like these 4 stocks in the previous update.

I believe that if there are no necessity to change the holdings, don't change. In terms of performance, over the period of 507 days since the portfolio was created, it achieved a nice 81.88% return thumping the KLCI (4.11%) and Fixed Deposits at 3.2% fixed rate (4.23%).

You would have noticed that among the 4 stocks, the largest is AEON which only has a RM3.2 billion market capitalization. None of them are KLCI stocks. The other 3 are below RM1 billion stocks. If you follow my blog, this does not mean I do not like large cap stocks but to me sometimes these stocks are dominated by EPF which is the largest fund by far. Their action can move any stocks in Malaysia hence it is difficult to anticipate what their next move be like. Anyway, stocks that are invested by EPF or even Khazanah, although some of them are quality stocks are normally quite fully priced, I believe. I am not saying they are doing the wrong thing as it is not easy to manage a RM470billion fund than managing a RM50k personal fund.

Also, if you check around seldom analysts cover stocks such as DKSH, Wellcall or even Oldtown. In fact, I have read more sell calls for Oldtown than buy call which is rare. Analysts tend to have more buy calls than sell calls as by having sell calls they have nothing to "sell".

This portfolio is not for any reader to follow my call as these are purely my own decision and opinion. Any decisions to buy or sell is entirely up to you. The reason for me to do this is to show that by being diligent and if we have a certain program, stocks may be a better longer term investment than your safer bet of putting money in FD or under our bed. Some people may like gold, some may like properties - go ahead if you think is right. Just that I prefer stocks.

Earlier updates:

6 April 2012

27 May 2011 
6 April 2011
14 Feb 2011 

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