IFCA

The fund manager make a killing from this stock.  From the low to its peak, the stocks actually performed 1400%.  Assume, the fund size is RM100m and she put in 5% in this stock, i.e. RM5m, her portfolio will end up RM70m, and assume the rest of her portfolio is doing 8%, her portfolio size will be added RM65m + 7.6m = RM72.6m.  Her portfolio will improve from RM100m to RM172.6m or a 72.6% return.  However, the said unit trust gain about 20%.  I guess this is call diversification.

If she is patience, courages and convicted to this stock, she would have done better, or perhaps it was due to unit trust restriction in regulation, she has to diversified into 30 or more stocks.

Of course, it is easier said than done.  For individual, a mere RM75,000 can be turned into RM1.0 million.  

THEME STOCKS

1. Still hot?

Exports - furniture, tech, glove, others

Construction 

2. Don't touch

Oil and Gas

3. Not doing well

Property

Palm oil

Banking

Telecommunication providers

4.  What next? Readers and experts in i3, please share......

SO, HOW TO MASTER THE ART OF INVESTING?

Patience

Courage

Conviction

You will gradually come to this point when you are investing:

1. patiently in one or two stocks (that means this stock make up 75% of your portfolio)

2. have the courage when others think otherwise or when the market crashes

3. conviction to this stock even if it drop 20-50% in the near term and patient to wait for the recovery, even the quarterly result is not positive.

Investing is learning process, not fixed, because the game is dynamic and changes over time.  

Whatever you do, don't be caught bear-in-bull-disguise.