Loading up on my War Chest

I have previously done a post about ‘spring cleaning’ my stock portfolio on 5 March 2017 (read here). With equity valuations looking a bit rich, I reckon it would be good to raise the percentage of my cash holdings.

DeathtoStock_Meticulous-09.jpg

On 11 Feb 2017, I did a short post on an update to my portfolio. The percentage of my Savings & SRS (cash) then was at 13%. Earlier on 4 Sept 2016, the percentage of Savings then was only at 8% (read here).

I recently sold my Super Group shares (at $1.295 a share), just a couple of days prior to receiving the package pertaining to the delisting of Super Group (the realized profit at approx. 16% of the amount invested, excluding dividends received). Although the selling price was lower than the $1.30 delisting price, it was not a lot.

The stock price of Super Group has been hovering at around $1.30 for quite some time (regardless of overall market performance). I first started buying

I first started buying Super Group shares in June 2014- only selling once in April 2015 (small amount). I have been all the while accumulating. So in total, it has been less than 3 years. 16% for 3 years isn’t a lot – but then Super Group is one of my biggest holdings, and I am glad that it turned profitable at the last ‘minute’ due to the privatization offer.

“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”
Warren Buffett

Well. time to say goodbye I reckon (even if I don’t sell the shares, the company will probably be delisted soon).

Anyway, now my cash holding has increased significantly – which is at 31%. It hasn’t been at this percentage for a long time.

This percentage is even greater than the percentage of my stock holdings (27%). I would say, the risk exposure to any market corrections or crash is at around 29% of my net worth (Stocks + Unit Trust), and maybe some of the Insurance Cash value. The rest will probably not be affected.

Net Worth.jpg

Having said that, the passive income from stock dividends will be super low this year.

For the time being, I probably won’t sell any more stocks. I am pretty happy with most of my stock holdings for now. These are stocks that I can sleep soundly with, and ‘forget’.

Well, for the stock that I don’t really like (eg. Golden Agri) – the unrealised loss is still a lot…. I do think that in the long term, as a cyclical stock, CPO prices will rise.

 

 

About apenquotes

Born in 1976. Singaporean Chinese. Married with a son.
This entry was posted in Portfolio. Bookmark the permalink.

2 Responses to Loading up on my War Chest

  1. xYz says:

    if you dont like golden agri, why do you even wanna buy? :p

    • apenquotes says:

      Good question. Hahahah

      There was a time long ago when Palm Oil stocks were the craze.
      I first bought Golden Agri in Feb 2008. Start really accumulating in end 2010 / beginning of 2011 onwards.
      I guess I didn’t study the fundamentals and didn’t expect the drop would be so acute and for so long. My thinking processes back then wasn’t the same as compared to now.

      Our vision when looking back is always 100%… but with stocks it is never the now or past, it is always the future. Its fundamentals back then wasn’t all that bad, and it was not a tiny company (even now) – worth billions. But when the industry tank, fundamentals went with it… it is how much lower can it withstand. A lot of small Palm Oil companies perished. Unless there are scandals, the ‘net assets’ – prime ‘real estate’ is actually worth a lot. It is like how KC Lau view Jaya Tiasa (read here).
      I wasn’t thinking too much about the near future when I started buying. Thinking how strong it can stand the crash.

      However, there are some things that I do like about it, eg. almost 50% held by Widjaja Family through Flambo International Ltd, its upstream expansion in China.

      Now it is hard to sell with the deep loss (but then again, ppl are starting to buy Palm oil stocks these days), and it also serves as a reminder to me about cyclical stocks. Which is why I am so wary of O&G penny stocks (back when O&G crashed) – how long prices can stay low.

      Most of the stocks I like, are growth stocks with strong fundamentals (they are simple to evaluate and serve as good long term buy and hold stocks), a close second are dividend stocks with ok fundamentals. However, occasionally I will study and think about investing in companies on the brink of turnarounds. I called this the Needle in the Haystack investing.
      Nothing to do with fundamentals. It is like ‘cigarette butt’ investments – with potential turnaround stories. At one time was looking at Cheniere energy and Keryx Biopharmaceuticals Inc.

Leave a Reply

Your email address will not be published. Required fields are marked *