Portfolio Update: Defensive Shares
Boring Portfolio
Stock: US$77,621.98
Cash: US$364.85
Total: US$77,986.83
I have added to the portfolio an additional company, an FMCG company with a strong brand name, with the last of my ballast (cash reserve). It is interesting how the cash reserves enable me to buy in as the market continued to tank, acting as the stabiliser that it was meant to be. It is very unfortunate though, that I have run out of ballast.
Could I have predicted this and set aside a larger amount of ballast? No - predictions are for prophets and market lizards, and I am not the former, nor do I want to be the latter. The system simply gave me the ability to buy when the general fund manager, mandated to be fully-invested with little spare cash, has to follow the lowering tide.
QQQ Portfolio
Stock: US$52,204.20
Cash: US$22,964.30
Total: US$75,168.50
This portfolio was meant to be used to show how the system (I do not take credit for it - it was developed by a fine gentleman, now deceased, and I happened to be his student) worked, using a more aggressive stock but a less aggressive mix of ballast and firepower.
The portfolio has fallen from its original USD100k to USD75k, but the real pudding lies in the fact that, from the original 920 shares of QQ, the portfolio has 1670 presently. As the market continued to move down, the system actually added shares, in anticipation of the time when the market will move up and the shares gain in value.
I suspect this system is going to be very useful for dividend-bearing shares, though the movement in such shares are generally very little - which means the ballast is likely to see little action.
Stock: US$77,621.98
Cash: US$364.85
Total: US$77,986.83
I have added to the portfolio an additional company, an FMCG company with a strong brand name, with the last of my ballast (cash reserve). It is interesting how the cash reserves enable me to buy in as the market continued to tank, acting as the stabiliser that it was meant to be. It is very unfortunate though, that I have run out of ballast.
Could I have predicted this and set aside a larger amount of ballast? No - predictions are for prophets and market lizards, and I am not the former, nor do I want to be the latter. The system simply gave me the ability to buy when the general fund manager, mandated to be fully-invested with little spare cash, has to follow the lowering tide.
QQQ Portfolio
Stock: US$52,204.20
Cash: US$22,964.30
Total: US$75,168.50
This portfolio was meant to be used to show how the system (I do not take credit for it - it was developed by a fine gentleman, now deceased, and I happened to be his student) worked, using a more aggressive stock but a less aggressive mix of ballast and firepower.
The portfolio has fallen from its original USD100k to USD75k, but the real pudding lies in the fact that, from the original 920 shares of QQ, the portfolio has 1670 presently. As the market continued to move down, the system actually added shares, in anticipation of the time when the market will move up and the shares gain in value.
I suspect this system is going to be very useful for dividend-bearing shares, though the movement in such shares are generally very little - which means the ballast is likely to see little action.
Comments
Post a Comment