Guru's Portfolio
ghchua's Investment Strategy
I always stress that one should adopt a portfolio view when constructing a diversified portfolio. If your portfolio is overvalued, you should seek to add more undervalued stocks to bring it back to fully valued or under-valued levels.
How do I manage to keep track of so many stocks? My answer is that there is no need to keep track at all. Since I hold a diversified portfolio, any one stock that tanks will have little impact on my portfolio. So, no worries if there is a profit warning on one of my holdings. I just collect dividends every month and seek to re-invest those dividends or use them to pay for my monthly expenses.
Do I go in and out of the market? No, I strive to be 100% invested at all times - be it bull, bear or range market. The opportunity cost of not being invested is higher than trying to get into the market at the right time. Some people might think that they do not want to be in the market when it is going down. But remember that not all stocks go down in a bear market. If your portfolio is well-constructed, it should not go down as much as the STI. Also, you collect dividends and add more holdings in your portfolio when stocks are down.
For yield, look for sustainable earnings and low price. For capital gains, look for explosive growth, a good story, or if the stock is irrationally undervalued. There are quite a number of gems in the market that are both dividend and growth stocks.
If you look at yield alone, these large-cap stocks offer good yields - SPC (6%), Cerebos (7.5%). There are smaller-caps that offer better yield - MIIF (7.6%), Kim Eng (5.8%), UOB KH (7.8%) and GK Goh (7.7%).
I always stress that one should adopt a portfolio view when constructing a diversified portfolio. If your portfolio is overvalued, you should seek to add more undervalued stocks to bring it back to fully valued or under-valued levels.
How do I manage to keep track of so many stocks? My answer is that there is no need to keep track at all. Since I hold a diversified portfolio, any one stock that tanks will have little impact on my portfolio. So, no worries if there is a profit warning on one of my holdings. I just collect dividends every month and seek to re-invest those dividends or use them to pay for my monthly expenses.
Do I go in and out of the market? No, I strive to be 100% invested at all times - be it bull, bear or range market. The opportunity cost of not being invested is higher than trying to get into the market at the right time. Some people might think that they do not want to be in the market when it is going down. But remember that not all stocks go down in a bear market. If your portfolio is well-constructed, it should not go down as much as the STI. Also, you collect dividends and add more holdings in your portfolio when stocks are down.
For yield, look for sustainable earnings and low price. For capital gains, look for explosive growth, a good story, or if the stock is irrationally undervalued. There are quite a number of gems in the market that are both dividend and growth stocks.
If you look at yield alone, these large-cap stocks offer good yields - SPC (6%), Cerebos (7.5%). There are smaller-caps that offer better yield - MIIF (7.6%), Kim Eng (5.8%), UOB KH (7.8%) and GK Goh (7.7%).
posted by Sleeplesserf at 8:28 PM
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