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Tea with FunShine: Investment Philosophy.

Tuesday, March 8, 2016

This is a guest blog by Funshine:

My Investment Philosophy

1. Bought OCBC 2 years ago before the rights issue. Traded it a little during that time ๐Ÿ˜Š
2. Been buying all the way from $9+ till $7.69. Haven't booked my losses yet as I closed my books during June 2016.

3. Sitting on 15% lost on OCBC. To me there is no such thing as paper lost. Paper lost is only for people that wants to make themselves feel better so that they can wallow in self-pity.

4. Rather than indulge yourself in self-pity, might as well sell if you see no potential in the stock and transfer the funds to a better assert.

5. 23 April 2015 is the first day of operation for OCBC in Yangon. I hoped it will be a catalyst of growth in 5 years time.

6. Great Eastern results have not been too good from the last I read. OCBC is the parent company of Great Eastern.

7. Will increase till I have a 5% stake in SG banks based on my current portfolio.

8. Meanwhile been thinking for almost one quarter now to whether push one of my holding to 3.33% of my portfolio on a company that is investing in Ghana.

9. Pushing and confirmed going to increased my position to 6.67% of my portfolio on a country that is vested in Russia. That one, my time horizon will be 24 years if the company fundamentals does not change.

10. The Russia decision I at least ponder for 1.5 years, can't remember reading how many articles on it and I have been trying to speak to Russia people.

11. Investing is a lot of hard work. Although timing and luck plays a very big part. However, you can't be lucky and have perfect timing all the time if the duration is 20 years. I have friends that were so confident and one bad trade, they turn around and need to borrow money from me.

12. If you want quick money, go to a Casino or visit Singapore Pools. I spend $6 last week at Canada Lottery. The prize money is $60 million and one person won it.

13. If you can't afford to take the risk, please put in FD or buy Endowment. Even better just put in CPF.

14. When friends ask me what to buy, my opening statement is that this is not a good question. They will be stunned as suddenly I am rebuking them. I do that so that I can protect my friends.

15. My second response is I lost $30k from asking that question.

16. My next question to them is:
A) Why do you want to invest?
B) Why not just put in the bank?
C) Is this your spare cash?
D) What companies do you know?
E) Can you wait 20 years if we have a very weird and prolong bear market?

17. If I am pleased with the answer and the person have a bit of knowledge on Mr Market, my next question will be, are you an:
A) Dividend Income Investor
B) Growth Investor
C) Trader

18. As all three requires very different skill set.
A) Needs to plow through tons of reading and Fundamental Analysis
B) Macro Econs view, Govt Policy, Consumer taste and competitors need to be considered
C) Technical Analysis

19. However the most important skill to have which I am a firm believer of is IP. Investor psychology.

20. I have seen people with above normal IQ level but they lose big time in stocks market.

21. You are fighting with yourself as you embrace Mr Market. Mr Market may be your best friend at times. However, the next day, he can slapped you silly.

22. Do you have the temperaments for it?

23. I am very glad that my studies in Psychology and Management have given me a better footing.

24. Working for more than 10 years in social services has increased my mental resilient level and I got to know myself a lot more.

25. Lastly I believe in two things for investing or trading. Nothing is easy for the unwilling. What you do in your free time will determine how successful you will be.

26. If you have below average returns or worst then FD and you do not self reflect and ask why?

27. Please... Put your money is FD, CPF or Endowment. It will be better for you. You are responsible for your own money. Not someone else.

28. Thanks for reading. Going off to my Taiji class now to quieten my mind.

29. Keeping pace with Mr Market is not easy. On a 6 months break from work, living prudently and strangely I am traveling round the world. It's a oxymoron as traveling round the world and living prudently does not match. Oh well...

30. Best of luck or God bless as you continue your journey with Mr Market.

A bit about the writer - FunShine
The writer hopes that his personal account will be a good read for people hoping to take small steps towards different degree of financial freedom.
FunShine has been working in the Community and Social Service Sector for over 10 years. It has always been an interesting sector to work in.
He has decided to take a 6 months break and live prudently, surviving on his dividends and interests for his personal expenses.
FunShine does not want to compete with the Joneses and is contented with his lifestyle.


Breakfive said...

I read your posts and generally , i am agreeable with your investing ideas.

However, i am not so keen of SG banks idea at this point. Arent you worried about their NPL ? I sense that there is a still potential NPL not captured for SG banks.
Eg from property side in SG if the property prices continue to slide and SG regulations still apply, poor performance of SG listed companies in Oil and Gas ?

They will survive .. but these NPL have a habit of wiping dry the earnings of banks !

AK71 said...

Hi Breakfive,

There will always be NPL. Of course, the question is whether it would become an alarming number. Given the headwinds now, it seems that DBS and OCBC are more exposed to greater risks than UOB.

However, whether NPLs would balloon is anyone's guess. I think that if we were to buy in at a bigger discount to NAV, we would have a bigger margin of safety. So, I bought more DBS shares at $13.40 recently.

Mr Funshine said...

Wonder to sell in April and come back or not.

Bad feeling I sense. Oh well. Will hold on to my dividend stocks. Just need to monitor My growth and trading stocks.

I recently bought Australia banks. Hope to sell it when AUD goes up and when the stock price goes up.

Anonymous said...

I think ocbc is a subsidiary of GE, and not the other way round. It depends how comfortable you are with handling your $, if have <, try to spend <. There's no need to impress others. Just be responsible to yourself, in how you use your own $.


Anonymous said...

I think ocbc is a subsidiary of GE, and not the other way round.
Its best to be prudent and responsible in handling your $, to the best interest. If have < $, try to spend <. There's no need to impress others.
Try to live within own means and be comfortable with it. There's no best method to grow $, only the way which suits individual.


Breakfive said...

Sell in April, buy back when it bounce ?

All the best for your trades ! The good thing is that the bank trades should be in the money and you can sell to earn your profits..

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