My Trading Adventure
Interesting buy-n-hold strategy
CP TEH
Publish date: Fri, 23 Sep 2011, 12:17 AM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Taken from i3investor
I'm a novice investor, but i disagree. Even in a downturn, you can buy and hold.
In 1998 i used around RM17-18K and bought 1 lot each of 30 penny stocks.
I remained passive for almost 13 years and just left the portfolio alone. (Passive Buy and Hold strategy).
One third of those stocks died (delisted, consolidated etc).
One third did almost nothing (did not appreciate much etc).
One third did very well.
Portfolio value now at current market price is around RM60K.
(This does not include the Cash i received from dividends or the payouts from Amcorp and NSTP etc etc over the last 13 years).
In the last 2 months i decided to finally clean up my portfolio (after alot of nagging from my remiser for the last 13 years).
I sold all the laggards and used the money to switch to the top 100 counters by market capitalisation.
(I did of course pick a couple of riskier counters for some high risk, high gain exposure).
I have never punted & only invest for the longer term and i only use cash to play. (I don't understand the market well enough to punt).
I have almost completed readjusting my portfolio and will soon go back to my Passive Buy & Hold Strategy.
All i know is, is that, even when the market is going down, there are opportunities for small time investors to take advantage of .......
22/09/2011 11:06
Note : The above is taken from i3investor when someone placed a comment for my early morning posting. I will want to comment on her INTERESTING strategy. Then, readers could put in their views.
What do you think of his/her strategy?
Do share with me your views. RM16k to RM60k in 13 years.
TEH
I'm a novice investor, but i disagree. Even in a downturn, you can buy and hold.
In 1998 i used around RM17-18K and bought 1 lot each of 30 penny stocks.
I remained passive for almost 13 years and just left the portfolio alone. (Passive Buy and Hold strategy).
One third of those stocks died (delisted, consolidated etc).
One third did almost nothing (did not appreciate much etc).
One third did very well.
Portfolio value now at current market price is around RM60K.
(This does not include the Cash i received from dividends or the payouts from Amcorp and NSTP etc etc over the last 13 years).
In the last 2 months i decided to finally clean up my portfolio (after alot of nagging from my remiser for the last 13 years).
I sold all the laggards and used the money to switch to the top 100 counters by market capitalisation.
(I did of course pick a couple of riskier counters for some high risk, high gain exposure).
I have never punted & only invest for the longer term and i only use cash to play. (I don't understand the market well enough to punt).
I have almost completed readjusting my portfolio and will soon go back to my Passive Buy & Hold Strategy.
All i know is, is that, even when the market is going down, there are opportunities for small time investors to take advantage of .......
22/09/2011 11:06
Note : The above is taken from i3investor when someone placed a comment for my early morning posting. I will want to comment on her INTERESTING strategy. Then, readers could put in their views.
What do you think of his/her strategy?
Do share with me your views. RM16k to RM60k in 13 years.
TEH
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Discussions
Be the first to like this. Showing 10 of 10 comments
does the compound annual growth rate of 10.1% is good enough compared with the risk premium? i think is a poor strategy...
2011-09-23 09:34
are you mean from 1/3 of RM17-18K, it grew to RM60k with penny stocks?
2011-09-23 10:10
I have to admit that i was very lucky on some counters selections
Eg. I originally bought KCHB (Kedah Cement) @ RM1.21 in 1998 but something was happening to the stock and in Feb 2000 i sold it and bought YTL Cement @ RM2.60.
That 1 lot YTLCmt in 2000 became 4.16 lots today just by passively holding it ....
Amcorp became AMMB plus Cash
NSTP became Media plus Cash
And the list goes on ....
(I still have all the original contract notes)
Recently, i readjusted my portfolio because i also had Sindora (1 lot became 1.067) and EPIC (1 lot became 2 lots)
So i decided to sell early and change counters ....
Luck also played apart ....
I did research the Passive Buy and Hold Strategy and there are alot of "gurus" who say that this strategy does work in the Long Term .....
2011-09-23 10:34
Forgot to add ....... my dead counters include :
Pan Global, Rekapacific, Gula Perak, Sri Hartamas etc.....
2011-09-23 10:39
Opps it was AMFB that became AMMB (on 10/3/2005 and was called AHB then)and cash payment was RM3.90 per share
I think Amcorp only paid up cash when it was privatised
Also i sold KCHB @ RM2.40 and only topped up RM200++ when i changed counters ....
Note : I normally immdediately sell something and buy something else .... Eventhough i normally go in too early (or too high) on a buy, it doesn't make much of a difference to me because, to me, i'm not really using money on the trade. It's just an offset.
(Mr.Wong, my YTLCmt shares are almost enough to recoup the entire initial outlay i spent on building this portfolio, the rest of the shares are just icing on the cake ......
Although the current price is dropping like a stone, i am still holding on to those shares .....
I credit it to "pure dumb luck" or beginner's luck ....)
2011-09-23 13:28
Honestly, longer time frame is good. But, knowing to SELL when it is peak ... how about keep ALL your cash NOW and when market collapses, BUY like no tmr and HOLD till you laugh? Seriously, your strategy flawed in many ways but if u r happy with it and also GAINING you money, why not? cheers.
2011-09-23 13:37
I admit, my stategy is flawed in many ways and i think i need to point out that when i used this strategy, the the Index was fluctuating between the 300-500 level.
This strategy may not work at today's market levels ......
2011-09-23 14:08
If based on RM17.5k until today RM60K, your average return is 10% I shall say not too bad neither too good...
2011-09-23 23:31
If 17.5k/3 = 5.83k then your average return will be 20%, slightly away from warren buffer 26% :)
2011-09-23 23:32
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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287% in 13 years.... Airasia from march 2009 to july 2011 close to 300%
2011-09-23 08:40