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Stock prices of DBS, OCBC and UOB have been rocketing higher!
How do I feel?
I have mixed feelings, really.
I would like to add to my investments in all three banks but not as their stock prices make new highs.
What am I doing?
Just waiting.
I will simply do nothing and collect dividends.
Filling up my war chest and taking things easy.
Money in my war chest will go to buying more 6 months T-bills in the meantime.
I expect the T-bill cut-off yield tomorrow to be around 3.8% p.a.
This is a pretty decent return for something that is risk free and volatility free.
I don't see any need to take on price risk especially when stock prices are going higher.
Uncle Warren Buffett said before that we should avoid doing this:
"Buying a stock merely because you think it’s going to increase in price."
For my current investment in DBS, OCBC and UOB, my favorite holding period is forever.
Of course, if we are trading, then, we might sell some if we think prices are going back down.
More from dear Uncle Warren Buffett.
"Time is the friend of the wonderful company, the enemy of the mediocre."
"Only buy something you’d be perfectly happy to hold if the market shuts down for ten years."
This, perhaps, explains why I sold some of my investments in the past and increased my investment heavily in DBS, OCBC and UOB in recent years.
If AK can talk to himself, so can you!
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A simple strategy.
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18 comments:
Huat ah!
Hi Yv,
I also like that say.
Huat ah! :D
Hi AK,
Recent Tbill at 3.8%. Seems not too bad also =)
Hi Ak
I dont understand the second line . Can you explain in layman?
Time is the friend of the wonderful company, the enemy of the mediocre."
Hi Rellangis,
I said the same thing in a recent YouTube video.
Pretty decent for something that is risk free and volatility free.
Peace of mind is priceless. :)
Hi SgFire,
A wonderful business will become stronger over time because of their positive attributes.
A mediocre business will just shuffle along and try to stay above water.
Over time, it could find itself sinking. -.-"
Thank you for your explanation
Hi AK:
Thank you for sharing your insights.
Do you worry about concentration risk on 3 banks? Any other good companies to diversify and are as resilient as banks? The likes of raffles medical, micro mechanics, they have all gone through good times but are now facing tough times.
We planted the crops and now we reap the harvests.
Oh, how i wish i got more capital during the planting seasons.
Ah well, better than nothing.
Hi SgFire,
Just talking to myself, of course. ;)
Hi ValueHunter,
You might have missed this YouTube video I produced recently:
RISK FREE way to becoming a MILLIONAIRE by investing only in 3 stocks?
Just talking to myself, of course. ;)
Hi TDT,
Waiting for the harvest in Q2 and Q3. :D
Now, I just wait as my stockpile gets bigger over time. ;)
Would you still consider buying into the three banks at current prices and with the impending interest rates cuts on the horizon. Even though the valuations of the banks are not stretched.
Hi cow138,
As I am already substantially invested, no hurry to add. Otherwise I might buy some to get a foot in the door. ;p
Thank you for your sharing
Hi Wilson,
Welcome. :)
Talking to myself, as usual. ;p
This might be weird but right now I am learning to swap over to dividend investments from crypto. So I do have some money from it to start off in making a portfolio in Singapore. Is it worth going into say the banks+sreits to start the ball rolling or would buying maybe sreits only due to the low prices and wait for the bank stocks to go down?
Hi Fiona,
I am not allowed to give investment advice and I don't want to either. ;p
I am only talking to myself here in my blog and if you picked up some ideas, do your own due diligence before leaping. :)
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