HIDDEN GEM SYSTEM SEP 2020 PORTFOLIO UPDATE
HIDDEN GEM SYSTEM SEP 2020 PORTFOLIO UPDATE
“What is going to happen, when the moratorium is over?”
September 2020 was D-month! Why? Because the bank moratorium was ending & everyone is worried how would they survive October 2020 without any assistance. Thank fully most of the industries have open up as we were into RMCO. And this was before the Sabah Election outbreak that cause us to go back to MCO
“If only I knew……”
“If only I knew”, but isn’t this a famous 1 liner that all investors resort to. Haha….Biggest problem for all investors is, we don’t have a crystal ball to predict what is going to happen in the future. In this case, I only realize that September 2020, probably is the lowest point my portfolio will be after the stock market recover since the March 18 2020 crash.
Knowing what I know, I would have put more during September 2020. But then again, if everyone knew, then there won’t be so many losers in the stock market. Because after this month, my portfolio kept going up…..If only I knew (*Haha)
“Here are this month’s highlight“
Highlights
OVERALL PORTFOLIO
- The OVERALL portfolio drop 7.6% from -37.5% to -45.1% which so far is the largest drop when I look back from from April 2020 to September 2020 (even as we speak from April 2020 to Feb 2021)
- This is mainly due to SLP dropping about 10% from -39% to -47.6%
- And ULICORP dropping 4+% from -80% to -84.5%
- Even SCICOM dropped 6.3% from 14.5% to 8.2%
HGS PORTFOLIO
- The HGS portfolio drop by 9% from +5.4% to -3.6%
- This is mainly due to DNEX having the biggest drop of 32.3% from 35% to 2.7%
- AJI drop 3.4% from -2% to -5.4%
- The only positive stock is PADINI, climbing 4.8% from -12% to -7.2% (although it is still in the NEGATIVE territory)
“Can Dollar Cost Averaging be applied to stocks?”
LEARNINGS
So, my learning this month is, if my cashflow is not so tight, every month I would do a Dollar Cost Averaging (DCA) or more appropriately be Ringgit Cost Averaging (RCA). For those of you who are not familiar , I included another link here for your reference.
What I would/should do moving forward, is every month at a predetermine date (for eg, every 9th of the month), based on those stocks which I have bought, once it fulfill criteria 1 & 2, do 3 & 4. What do I mean? haha, here it is
1) Is the company/stock still fundamentally sound & profitable? If yes, proceed to 2
2) Is the company/stock still under valued based on the HGS System? If yes, proceed to 3 & 4
3) Continue to buy MORE lots, when the price is LOWER than before I bought in (& still lower than my target price)
4) Continue to buy LESS lots when the price is HIGHER than what I bought in
The whole rationale for the strategy above, is to keep the average price of my stocks LOW.
“Sounds easy, Do it for yourself & see if you face these challenges”
CHALLENGES
DCA or RCA is not without it’s challenges. Few of the problems I constantly face while using this strategy is
1) Not discipline / Emotionally affected – Most times, and I bet most investors would agree. When comes time to do the RCA, tricks will play in my mind when keying in the order. Because I want to get the best buck for my purchase, I will try to buy lower than the closing price on that day, and in the end, I miss out on the buying opportunity because I couldn’t match my order. And when the price goes up, I will feel like kicking myself.
2) Forgetful – Because I am juggling so many things constantly, not only with work, but with family priorities as well, I keep forgetting. By the time, I notice to do the RCA, the price would have move up & I kick myself for not doing RCA when it was down.
3) Amount too small causing brokerage fees too high – Tried doing RCA once but when the investment amount is so small that the brokerage fees was more than 5% of my investment amount, it feels like Unit Trust. And this is 1 of the biggest problem causing Unit Trust portfolio to lose money.
“So, what do you think?”
Do let me know , do you use DCA or RCA? Are these the same challenges you face too?
*DISCLAIMER – All stocks listed here are not a recommendation. The article is written purely for the purpose of education and journaling only. The content of this article is an expression of my opinion and should not be taken as professional advise. If you are seeking for professional advise, please consult me personally . You should do your own research and/or seek expert’s advice when doing your investments.