Sunday, September 20, 2009

My Investment Objective

I will refocus my blog to trek my stock investing.

My objective: To reach $700,000 in stock investment by 55, excluding CPF and House.

Learning Objective: To show people that you can build wealth for retirement even if you start off with a small amount of capital.

Start Point: I have invested close to $10,000 in capital as end Sep-09, buildup earlier in Feb-09.

Strategy: While putting some money for my life neccesities, annually I will inject at least $4,000 into the portfolio.

My 1st 6 months holdings in order of acquisition:

Genting SP
FJ Benjamin
China Milk
TPV Technologies
GMG Global

I have since sold
SPC: There was a takeover bid by PetroChina. Made a 135% return on capital on that 1 lot and used the money and averaged up on Biosensors, Genting, UOB-KH and GMG Global. My first and best investment to date. It had a strong balance sheet and oil was set to recover. If PetroChina didn't takeover, I would have reached that price in a longer time. Holding period of 4 months.

China Milk: Sold all 2 lots it because it started moving away from selling bull semen but into OEM milk production. Lower margins means earnings will slide. I like the China needs to drink milk story but I am not confident about holding so long. Use proceeds to average up on Elite KSB . ROC 51%, Holding period of 5 months.

Genting SP: 3 lots. Sold it because of rights issue. Used proceeds to buy more Etika International. Will take a while for the casino to register gain. I think I was scared away by the negative reports and looking at how the F1 seems to be a failure, I gather that the casino might be subjected to the whims of the economic cycle. ROC 58%, holding period of 5 months.

My current holdings look like this

5 Asiatic
3 Biosensors
7 Elite KSB
10 Etika International
4 FJ benjamin
20 GMG
2 TPV Tech

If i re-invest the proceeds, of about $700+, I will hit $10,000 in terms of additional capital invested . I can use $10,000 as a portfolio to measure against other type of similar investment products.

Right now, I am thinking between getting more Asiatic or just AusGroup. Asiatic is very illiquid while Ausgroup is a Aussie/Energy play which should give me good exposure.

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