HIDDEN GEM SYSTEM AUG 2020 PORTFOLIO UPDATE

“Within 4 months, the OVERALL Portfolio have slash the losses by half, from -66.4% in April 2020 to -37.5% in Aug 2020”

Today I am back with Episode 4 of my HGS Portfolio Update Aug 2020. If you are still following up to this part, I salute you, as I realize up until this point, HGS stocks have start to see an uptrend & the OVERALL PORTFOLIO recovered quickly (within 4 months, have slash the losses by half, from -66.4% in April to -37.5% in Aug 2020. That is almost a 50% increase by not doing anything, not even averaging down on those stocks.

“So lets find out what happen in detail“

OVERALL portfolio

• Went up 7% from -44.6% to -37.5%, highest return so far in the last 4 months
• Mainly due to SLP going up by 11.7% from -50.3% to -39% & ULICORP going up 7% from -87% to -80%
• This is what WARREN BUFFETT mention, stock market is about wealth transfer from the IMPATIENCE, to those who are  PATIENCE. (*LOL, kononnya/apparently didn’t do anything, but apparently, not doing anything is also a SKILL, do you agree?)

HGS Portfolio

• Went up by 3.4% from 2% to 5.4% (not much increase)
• DNEX is the biggest PULL upwards, increasing by 10.8% from 24.3% to 35.1%
• But PADIN was the biggest LOSER, dropping additional 2% from -10% to -12% month on month

“So here is my realization”

REALIZATION

At this point of time , I didn’t realize my MID CAP stocks, totaled 83.5% of my entire portfolio, which was 1 of the reason why my portfolio became much more volatile than I envision it to be. Based on my risk profile of MODERATE, MID CAP vs BIG CAP is suppose to be 50%/50% (meaning if you have RM 100k in stocks, best practice for a MODERATE PROFILE person, is to have RM 50k in MID CAP stocks & RM 50K in BIG CAP Stocks) but now my Portfolio is more of a MODERATE AGGRESIVE profile person

“Here is how I define MID CAP vs BIG CAP stocks”

P.s , this is how I define MID CAP stocks vs BIG CAP stocks, in case some of you are wondering

• for me , I define MID CAP stocks as companies that have Market Capitalization of RM 200 Mil to RM 2 Bil
• I define BIG CAP stocks as companies that have Market capitalization of 2 Bil & above.

“So what did I learn?”

LEARNINGS

1 of the trend I notice that is similar between stock investing & running a business, is that , both commonly need to ‘Do Nothing’ when we are face with a LOSE-LOSE situation. What do I mean?

In business, sometimes it is better not to do anything , especially during the lockdown, because when there is no activity on the outside, & government doesn’t allow it, it is better to stay low & chill to wait out when times are better.

“Is IGNORANCE a BLISS or a BURDEN?”

It is sort of like , when you try to surf the WAVE, you need to know not to SWIM against the TIDE (or else you will get too tired & drown). Instead, just float until when you see the WAVE heading towards you , then you start to surf the WAVE. (which is a better strategy)

This is what I notice in Stock Investing as well. When the crash happen in Mar 2020, most emotional investor would have sold their position & take back what ever remaining, realizing the LOSSES. But I learnt from the great investor, we need to control our emotions (I know we are all human, & if we can control our emotion, it makes us less human). Because when we do, we make better investment decision. So, to a certain extent, I only realize now after reviewing my portfolio on a month to month basis, looking back.

“Do share with me your thoughts”

Maybe in this case IGNORANCE is truly BLISS. But don’t take my word for it, it was also because of this IGNORANCE, that caused me to lose 50-80% of the 2 stocks in the first place. What do you think? Do let me know, is IGNORANCE a BLISS or BURDEN?

*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.