Monday, August 20, 2012

Portfolio Update: 17 Aug 2012

Since the last update 2 months ago, stocks have gone substantially higher. For example, Wellcall has gone from RM1.90 to RM2.63. During the last 2 months, I have sold Oldtown at RM2.20 (see below). For Oldtown, I have made 90% over less than a year, buying it at RM1.15 and selling at RM2.20. During the period, it has paid 6.5% dividend as well. While comparatively against some of the consumer stocks it is still lower, I felt that the action of the major shareholders in trading the stocks may have affect it in the short run. Despite that, I still have much respect over their abilities to build the business to what it is today. Look around for the similar type of business, you will not be able to find a local franchise as strong as the one that they have built.


Anyway, here are the latest holdings, where I bought 2 shares ICap and Genting. Basically, these are the two stocks that did not enjoy such a run probably because of some of the reasons which I have highlighted earlier - Icap for its non-dividend payment while Genting has been lagging in terms of performance over the last year.

The total value of portfolio is about RM80,000 now.


Against Bursa Composite and Fixed Deposit, the performance of my small portfolio has beaten them over the last 1-1/2 year. If you look below, Bursa's Composite has done relatively well against Fixed Deposit - hence its proven do not bother about putting your money in the bank, as giving your money to your banker basically says you are asking your bank to make money for themselves using your money. Why should you? Even if you just follow the Composite stocks, you will do better over the long run.


With the sale of Oldtown, I have some RM14,627.07 in cash. So stay tuned.

18 comments:

eKimkee said...

Good job, Felicity!

jack-max said...

There was ton of undervalue stocks right now. Felicity selection always one of the best. Good job!

Benson said...

Thx for sharing, u r great investor.
For ur info, I am a beginner with 2 years experience in trading, keep losing money, stock tht i bought previously include MEGB, NAIM, HSL,BJMEDIA, KSTAR & Genting, learn lot of stupid mistake. Really a painful experience for young investor like me.

felicity said...

HI Benson, Keep on the learning process as long as we must remember to take this as a learning process.

Benson said...

Last time most brokers all put high target price for stock tht i mentioned like MEGB, thought i can buy at cheaper price and earn more, who knw, keep dropping.
Currently, just holding HSL,NAIM and Genting Singapore.The other 2 still ok, just Naim lost around 45%, do u think i should sell? Thx a lot ya.

jack-max said...

I also have MEGB. When the bad news spread out, I sold all of my shares. I loss about 14% just from my portfolio. It was totally 35k. But I decide sell most of my stocks and keep only good company with great fundamental. I learn from my mistake. You should too. Even though you are not asking me. Try to analysis all stocks you are holding. Then compare them with competitor. Re-balance your portfolio and use other investment to cover your loss. For example, cover your loss using FD, bond, emerging market, forex, etc... Felicity is ultra sifu, if he suggest, you should 100% listen.

Benson said...

It seems hard to deal with stock, external factors may suddenly make thing worse, just like the MEGB case. I think for beginner like me,better look for REIT and big cap companies. Luckily my p.smallcap help me cover some loss, earning more than 10% yearly.

felicity said...

I think sometimes portfolio has to be rebalanced. Benson, you are from Sarawak? - seems you do have Sarawak listed companies as in HSL and NAIM. On first glance they do not seem to be bad companies but construction and properties are very cyclical. One has to know properties and construction to be buying these companies. Unfortunately, I am not one who understand this sector well except that in buying good brand name is important.

As for Genting Spore, despite the setback recently, they do have a very strong asset and strong cashflow generation.

No I do not make right choice all the time. Important thing is I learn to make less silly mistakes than

Benson said...

Hi Si fu, actually i am from Johor, bought HSL n NAIM bcz last time this 2 stock was top election pick for Sarawak, i trust bank report too much bcz i am beginner, tht was my mistake. Tht was also one of my first trading after get my first salary. Serious bleeding for Naim so far, genting sp entry price is 1.4 and HSL 1.6. I read books from top guru like Benjamin graham n warren buffet, they suggest investor to buy undervalue stock, so i keep finding "problematic" stock tht drop a lot, lastly i am bleeding. Recently, i lost in wilmar, bought at around 3.5, due to quarter earning tht drop too much until 70%, i so nervous and sold at 3.10, another bleed for me. I dont knw until when i will bleed, making stock investing a traumatic experience for me. My friend is laughing at me, why nt just put as FD.

felicity said...

I had the same symptom as you. Me too read a lot, Buffett since school days. If you look at Buffett, he has somewhat moves quite a bit away from undervalued stocks.

Probably some of Peter Lynch's books are better to suite Malaysian style of investments.

As for following analysis, I was an analyst before, hence I cannot say bad things about them. The problem with being analyst is that since it is a full time job, we were needed to recommend even though we are not sure. We could not say we do not know.

My blog I will tell you I do not know if I do not know. And I am not under pressure to write (unless I have some opinion about something) unlike analysts who are needed to produce reports.

Benson said...
This comment has been removed by the author.
Benson said...

Hi Felicity, how i hope can follow your blog earlier.
Mind to share what top aspects tht u look for choosing a great company to invest? Thx a lot ya.

eKimkee said...

MEGB, I also invested before, I feel that the CEO talked too much craps but show nothing. I've cut loss for this shit quite some time ago.
HSL & Genting are gems. :)

Benson said...

Hi sifu, i think GENM will post lower quarter profit and price may drop temporary, is it ok to enter at below 3.30? I just worry if opposition win in coming election,then this stock may be affected.

felicity said...

Hmmm, the biggest challenge with Genting Group is that it has so many subsi under - Genting Berhad, Genting Msia, Genting Spore, Genting Plantation. Genting Malaysia is the one owning Malaysian casino, UK and US. Problem is US and UK are yet to really make money but yet they spent to much money into it. I would think it is for the group's future.

I do not think the govt would do anything even if there are changes in ruling party. That just do not seem right.

Genting Malaysia is affected by RWS. How far will it drop, we do not know.

Benson said...

Si fu, actually i just knw basic of reading financial stuff like p/e, roe, book ratio, profit margin and so on, do u got any recommendation on wat boook should i read to further enhance my ability in reading financial report? I dpend too much on bank report actually. Thx ya.

felicity said...

Read this -

http://www.berkshirehathaway.com/letters/letters.html

easy to read, free and very informative.

Benson said...

Thx again, i hope more young investor will come across to ur great website. ~Sharing is caring~