*Official* SGXcafe Thread

TheIntelligentInvestor

TheIntelligentInvestor

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starfish.starfish said:
Coool, based on your experience you think market on uptrend now that's why you start to re-enter?
Also how many stocks do you think it's a comfortable level? I saw you have 29 stocks on hand right now.
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Hi starfish, I guess we won't know what the market will trend this year or next. In Jan-Feb this year when STI dropped to 2500, there were quite a number of companies with good earning and dividends record selling at attractive prices. Market timing is hard, whether it has bottomed or more to drop in the coming months depends on so many factors. Anything can happen. In short, don't time, buy only when there is value.

I understand diversification is good to a point. Most books will recommend 15-20 stocks. I am still comfortable with my current portfolio. Once the initial research is done, maintaining doesn't really take up a lot of time. In fact, there are 10 more stocks that I would like to own but their price are on the high side now. Btw- nice portfolio of 20 stocks you have, SATS is on my wishlist.
 
TheIntelligentInvestor

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StockBot said:
tii I notice your top 2 positions are bank pref shares
what's your intended % of portfolio in fixed income securities?

how old are u? because those with higher age tend to get more pref shares/bonds
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Hi StockBot, the plan is to reduce the number of pref shares. I have already unloaded quite a bit since Jan and more is to come. I am late 40s, I guess you can tell from the number of pref shares that I hold. Lol.
 
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TheIntelligentInvestor said:
Hi StockBot, the plan is to reduce the number of pref shares. I have already unloaded quite a bit since Jan and more is to come. I am late 40s, I guess you can tell from the number of pref shares that I hold. Lol.
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I see your portfolio like 1/4 fixed income, i think that's very reasonable for your age

why u selling off your pref shares instead of holding them for long term?

the yield is very attractive on DBS Bk 4.7% NCPS (SGD) & OCC 5.1% NCPS (SGD)
 
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tinky123 said:
had trouble understanding them too. gotta read multiple times but a bit catch no balls for VAR. others still ok
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all these are advance stuff, if dont understand nvm
start from the basics first
portfolio diversification
balance between growth stocks, dividends stocks
balance between blue chips, small caps
 
Darkzi0n

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tinky123 said:
had trouble understanding them too. gotta read multiple times but a bit catch no balls for VAR. others still ok
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assuming VaR = 10%
it means 99% of the portfolios with similar characteristics to ur portfolio is expected to lose less than 10% in value.
 
wahkao3

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tinky123 said:
had trouble understanding them too. gotta read multiple times but a bit catch no balls for VAR. others still ok
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not important
just need to know how to go for low risk, high return opportunities

the rest is just financial engineering to justify analyst's pay
 
SeekingPrivateReturns

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tinky123 said:
had trouble understanding them too. gotta read multiple times but a bit catch no balls for VAR. others still ok
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actually hor, when i study finance in uni, the prof also never really explain what the value of var mean. But we are taught that the lower the value of standard deviation, the less total risk the overall portfolio carries. (VAR is just squared of std dev)

Therefore, for a level of (historic) returns, standard deviation should be as low as possible. A portfolio that yield 5% returns and has 10% VAR is inferior to a portfolio that yields 5% but has 7% VAR.

Some investors really strive for this low-risk-portfolio-concept like evankoh and you can see his VAR is really low compared to the average.

Hopefully what I said is accurate based on what I learnt in uni. Anyone more seasoned may correct me as well. I'm all for learning. Cheers~
 
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SeekingPrivateReturns said:
actually hor, when i study finance in uni, the prof also never really explain what the value of var mean. But we are taught that the lower the value of standard deviation, the less total risk the overall portfolio carries. (VAR is just squared of std dev)

Therefore, for a level of (historic) returns, standard deviation should be as low as possible. A portfolio that yield 5% returns and has 10% VAR is inferior to a portfolio that yields 5% but has 7% VAR.

Some investors really strive for this low-risk-portfolio-concept like evankoh and you can see his VAR is really low compared to the average.

Hopefully what I said is accurate based on what I learnt in uni. Anyone more seasoned may correct me as well. I'm all for learning. Cheers~
Click to expand...

since VAR is squared of std dev, so it is also variance right?
 
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