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Many people ask how can they retire from work earlier and be financially comfortable like me? Of course, I tell them investing for income ha...

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My investment portfolio, market value and position sizing.

Sunday, February 19, 2017


Tachikawa City, Tokyo, was ranked the third most desirable city to live in due to its easy access to central Tokyo. Croesus Tachikawa consists of three basement floors and eight floors above ground. 

I feel that I have been blogging a bit too much recently and it is probably a good idea for me to go offline for a few days.

So, it won't just be blogging that I am avoiding but everything else that requires me to go online to do as well. Hence, I won't be replying to comments and emails either.

Before I go offline in another few hours for the next few days, I should respond to a request from a reader.

Reader:
"I know you won't reveal your portfolio's details. You also won't tell us the size of your portfolio and the average yield."


Now, I know some bloggers share full details of their investment portfolios. I don't know their reasons for doing so. They probably feel comfortable with sharing in detail but I don't.

After some thought, I decided I am comfortable enough to share the sizes of my investments in bands just like how companies disclose remuneration of top executives in their annual reports.


Aqualine Golf Club in Tokyo, an AGT asset.


Based on current market value:

From $350,000 to $499,999:
AIMS AMP Cap Ind'l REIT


From $200,000 to $349,999:
ACCORDIA Golf Trust

CROESUS Retail Trust
FIRST REIT


From $100,000 to $199,999:
ASCENDAS H-Trust

QAF Limited
WILMAR Int'l

All other investments in my portfolio have market values of less than $100,000 each, with many of them being lower than $50,000 each.

Without revealing specifics, this gives an idea of the relative sizes of my investments.


Wilmar went into the sugar business in 2010.

Why did I decide to share in such a manner after refusing to reveal anything more specific for so many years?

I have said before that position sizing is important and how we size our investments should depend on our own circumstances and not someone else's. 

If someone we respect and trust invested $40,000 in a stock, it does not mean that we should too.

We should size our investments in such a way that if it should go wrong, it would not set us back too much. If we should get it wrong, it should not take us a very long time to recover.

So, for example, taken on its own, to most people, it might seem like I have a very big investment in Accordia Golf Trust. However, in relation to the size of my entire portfolio, it is actually not that big.

I have refused to share my portfolio in detail all along because I know some people might just replicate it but probably on a smaller scale. So, I still refuse to do it.

After all, apart from our circumstances, we should also size our investments based on our motivations and beliefs. 

My portfolio suits me. It might also suit some other people but it definitely doesn't suit everyone else.

So, why did I choose to share in such a manner after refusing to reveal anything more specific for so many years? You tell me.

Until my next blog, be good. Practice prudence, pragmatism and patience. Farewell for now.

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