Most important investment idea from "Evening with AK."

Producing my latest video on Singapore banks made me think about questions from a few readers during "Evening with AK and friends 2023."

Although they were different questions, I could thread them together as they had something in common.

This could be the most important investment idea participants could take away with them that evening.

Someone asked me if I already had a very large position in a good investment, would I add more to it or look for other investments?

I said I would rather stick with an investment that was doing well and was likely to continue doing well than to go look for another investment which I was unfamiliar with.

I likened it to having a good wife who took good care of me and cooked for me everyday.

In such a situation, why would I go look for a mistress who might not know how to cook and I might have to cook for her instead?

Why look in far off places for gems when we could find them in our own backyard?

There were members of the audience who asked if they should invest in US REITs and a couple of healthcare REITs listed in Singapore.

I could have answered those questions using the same analogy.

We don't want to diversify just because we think diversifying is a good idea. 

As Peter Lynch once said, we could end up "diworsifying".

We are likely to find it easier to make better decisions and far less likely to make mistakes when we compare a potential investment with a good investment we already have in our portfolio.

See the "wife and mistress" analogy?

Of course, as an investor, we could be polygamous, so to speak.

A member of the audience asked me what should he do with investments suffering paper losses?

He further told me that they were not paying dividends and could end up asking for more money from their investors.

That sounded like a nightmare that's worse than Tesla or Alibaba. It sounded like GRAB.

Sometimes, we must simply bite the bullet, accept that we made a bad decision and get a divorce.

Sometimes, to be fair, it was not a bad decision to begin with but things changed for the worse over time.

A divorce could be costly but it isn't the end of the world.

Pick up the pieces and life goes on.

Then, a member of the audience asked why did I put money in Lion OCBC HS Tech ETF since it did not pay a dividend?

I am quite sure I blogged the reasons why I did it but to thread it with the theme of this blog, I would have some fun now.

Sometimes, although investors are polygamous, we might get bored with having the same partners.

So, we go out looking for fun.

When we go out looking for fun, please remember to keep it that way.

"Milk the cow to drink the milk but don't bring the cow home."

Translated from a Chinese saying.

Don't let something which is supposed to be fun become something "ma fun" which means "troublesome" in Chinese.

I know what some might say.

"It's complicated."

How difficult is it to drink milk outside and not to bring the cow home?

In my opinion, it becomes "complicated" if the cow is brought home.

Before I get carried away, back to the ETF.

So, the ETF was something I bought for trading because its price became too enticing to ignore.

Fortunately, I made money not once, not twice but thrice doing it.

I even said in one of my blogs that it reminded me of why I did so much trading in my younger days.

So, do you see the common thread?

Something to chew on for the weekend, maybe?

Now, a nice way to end this blog is to remind myself why would I want to add to my already significant investments in Singapore banks?

I will remind myself why with my latest YouTube video.

Hope you Like the video. Hint, hint! ;p

If AK can do it, so can you!

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Hope you enjoyed "Evening with AK."
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