Background

Bursa markets have been very decent for me since I came back to Malaysia markets after the Covid pandemic in April 2021.  As many of you know, my investment objective is a modest +9% per annum, and I am happily beating that target.

I am very happy with my dividend stocks, REITs and other long term stocks that pays me good and generally rising dividend income overall.  These stocks I plan to continue holding over the long term, as I feel Bursa stocks still have legs to run.  In a few short years time (may be sooner), they will provide me with passive income for the longer term (until they become euphoric per my long term trend channel). 

At the same time, as a full time employee in highly engaged career that I enjoy very much, and as a part time investor/trader that I also enjoy very much, I believe that it is important to keep finding bull markets to trade.  And what excites me are the opportunities overseas particular in the US markets where there is the widest range of instruments including not only certain kind of global leading tech stocks, but also ETFs, inverse ETFs, leveraged ETFs together with their widest range of Options on both bull, market neutral and bear side (I have traded the US market for nearly 2 decades now and except for AIG, are generally happy with my results).  I like it that Mr Buffett has started to divests and holding record level cash for Berkshire - it means we may be near a US market top (give and take say 9 to 24 months if history is a guide) and it's time for me to start re-adjusting myself to US markets, not only on stocks, ETFs and leveraged ETFs but also Bullish option strategies (short term), Market Neutral strategies and eventually Bearish Option strategies that will profit when markets eventually crashes.  

As such, the bigger plan is to shift around 40% of my local portfolio to US gradually over the above timeframe (say the rest of this year and 2025).   This means I need to reduce my positions by at least half (I now have well 66 different stocks including trading and have already closed a few positions prior, I need to close another 34 stocks to get 40% cashed out).  So, over this period, I will close all non-core positions, and keeping only the core positions which are my long term dividend stocks, long term REITs and other long term plays.  The process have already started a few weeks ago, today, I just closed TAANN and wanted to share that with you.

I know many traders here looks at Quarterly Reports and reacts to that. For TAANN (and many of my positions) I must admit that I did neither of these things.  In fact, I hardly monitor TAANN at all, except once in a while looking at its charts.   Here are a summary of my trades.

TAANN Summary Entries and Exits

The 3 red triangles denoted my entries - the first entry was small to get a feel, the 2nd and 3rd entries are larger and better.

There are only 2 sales denoted by the smileys - the first is a small sale after the peak, and the second is near the downtrend line resistance to sell everything.

I am actually still long term bullish on TAANN but with the plan to divest 40% of my portfolio to shift to the US, I had to make tough choices.  So many good stocks to retain, and TAANN is a nice sound fundamental stock too but at the end of the day, TAANN made the list to cut and so, we closed.

TAANN Results

Over this period, I collected 3 dividends.

Including dividends, total returns = 26.2% per annum CAGR which is a nice returns, exceeding my 9% per annum target.

Excluding dividends, total price returns = 16.8% per annum CAGR, which is decent too.

Summary and Conclusion

When you have to reduce your position, it's actually very hard to choose amongst good ones.  

I actually like TAANN but tough choices must be made and at the end of the day, this has to go.  This is not unlike Mr Buffett who still thinks that AAPL is a good business, even though he divested most of it.   

With recent divestments, I have also progressively bought more USD at cheaper rates.  I have successfully done 3 rounds of DCI to buy USD cheaply than spot rates and cheaper than today's 4.16.  So far, all 3 DCIs were fully funded by Bursa profits.   I still have a couple of DCI outstanding waiting at 4.12 and 4.075 but odds are they may expire worthless as the USD/MYR after touching a low of 4.095 has now shot back up to 4.16 as I write this.  We will continue to do more DCIs at lower prices to convert more till end of this year and next year, at least once a month if not more.   

As for the future outlook for TAANN, I think there's good odds that it will break above the downtrend line resistance and if so, for those of you who are still long TAANN, good luck!

Disclaimer:  As usual, you are fully responsible for your own trading and investing decisions.