Posted by Erudite > 2020-04-20 23:20 | Report Abuse

Tq

Posted by gohkimhock > 2020-04-20 23:52 | Report Abuse

good write-up bro. For small time retail investors, I will always advise to concentrate the fund on 1 to 2 counters only. Study the financial statements properly and do not speculate.

Posted by Armada An Quantum Leap Stock In 2019/2020 > 2020-04-26 12:34 | Report Abuse

This article can be a must article to collect, to remind me the Investing Diversity .

Posted by zhangliang > 2020-04-26 14:38 | Report Abuse

Interesting read. likey!

Posted by qqq33333333 > 2020-04-26 15:45 | Report Abuse

defend and attack..........


diversification as defense........but all defend no attack, how long can win?

Posted by Junichiro > 2020-04-26 16:42 | Report Abuse

The best option is sell off early n cut loss. I do not think diversication can help in face of the big global plunge.

Posted by stklearner > 2020-04-26 16:57 | Report Abuse

Since diversify, sell early, cut loss, helps to protect against unexpected big loss, i try to do all n see how, tq

Posted by Armada An Quantum Leap Stock In 2019/2020 > 2020-04-26 18:09 | Report Abuse

Agree Junichiro sifu,

I hv been practising it since 2H2019
It work out extremely good to me.

Teamview sifu s article on how to successfully plan for a diversified portfolio equally important to benefit from a sector Chain.

Posted by Junichiro > 2020-04-26 19:40 | Report Abuse

Hi, I am not sifu. The truth is if u are flush with cash when the KLCI plunged to the bottom, u would have make money by buying some dirt cheap shares. When u are flush with cash, u would be more comfortable taking a bit of risk.

Posted by WenFx > 2020-04-26 20:38 | Report Abuse

He (Armada An Quantum Leap Stock In 2019/2020) called many people as sifu.
btw, he bought high and keep to low, all risk taken. Brave guy

Posted by Armada An Quantum Leap Stock In 2019/2020 > 2020-04-26 20:58 | Report Abuse

Agree Junichiro,
A realisation for 70% of the initial ,upon share price appreciate by 60% or above... a very good cut win point .

Posted by Armada An Quantum Leap Stock In 2019/2020 > 2020-04-26 20:58 | Report Abuse

If, not i wud not able to gain big from armada.

Posted by qqq33333333 > 2020-04-26 21:31 | Report Abuse

diversification as defence..... not true..... since all the stocks are correlated

Posted by qqq33333333 > 2020-04-26 21:32 | Report Abuse

the real important decision is cash or shares

Posted by WenFx > 2020-04-26 22:43 | Report Abuse

I thought we lost 70% because of Armada??
Gain big 50% is last year, but this year over lost about 70%


Posted by Armada An Quantum Leap Stock In 2019/2020 > Apr 26, 2020 8:58 PM | Report Abuse

If, not i wud not able to gain big from armada.

Posted by Junichiro > 2020-04-27 09:29 | Report Abuse

A fund manager has to diversify because he is managing other ppl's money. He is paid to do the job. Nobody paid him to keep all the investor's funds in cash. At times when he should have disposed his entire portfolio, he is not able to do so. Hence, he has to diversify.

Whereas, when we are managing our own money, why is there a need to diversify ? Diversification does nothing to protect you from a loss since the whole market is going deep down.

"The nature of risk" by Justin Mamis, a former executive at the NYSE is good reading. I think you download it in the net for free. I still have this hardcover book in my library.

Posted by Junichiro > 2020-04-27 09:49 | Report Abuse

A fund manager has other means to cut risk other than diversification.

It was reported in Nov 2019 in WSJ that Ray Dalio's hedge fund has placed a bet north of $1 billion that global stocks will fall by March 2020.The position is made up of put options that could pay out to Bridgewater Associates if the S&P 500, the Euro Stoxx 50, or both drop in value (Put options are contracts that grant investors the right to sell stocks at a predetermined price by a specific date.)

Posted by zhangliang > 2020-04-27 16:23 | Report Abuse

Wah u all talk like expert. How normal retailer can buy derivatives ? And buying derivatives super risky. Don’t simply teach people if don noe. Best to be humble to learn. Qqq333, sure can hold cash, hold gold hence the article wrote there diversification of asset class man. Already written there y u repeat wat people say. Aiyoooo

Posted by gohkimhock > 2020-04-27 17:02 | Report Abuse

hold construction and building materials counters.

Posted by Philip ( buy what you understand) > 2020-04-29 23:17 | Report Abuse

In my humble opinion it is always far more important to buy what you understand than to diversify for diversification sake.

The key word here being understand. If you don't understand the business, diversification can easily lead to DIWORSIFICATION.