Tuesday, December 27, 2011

Portfolio annual review

I am on leave for the whole week so let me start by reviewing the portfolio. Considering that there have been several additions to the portfolio, it would be convenient to measure the performance of the basket of stocks that were held at the end of last year, and those very same stocks now.

On this basis, I did very badly. I ended 2010 with SGD 45,350 and of of just now, those very same stocks are now worth SGD 33,313, or a 27% decline in value. Since running this blog for about 3 years, this is the first non-market beating performance recorded. No wonder they say that it is bear markets separate the boys from the men.

The stocks that lost the most dollar value were Etika International and GMG Global, with both stocks losing at least 40% of their price year-on-year. Etika International made a steady decline after announcing its one-for-one bonus and adjusting it. The same story for GMG Global, which announced a one-for-one rights issues not so long ago.

I still have about SGD 4,500 locked up in C&O Pharma. I received the physical certificate about two weeks ago and had to read their announcement again because I was unsure if there will be money credited. So far, my understanding is that the money will only be credited much later in January or February. Once I have access to this money, I may plough them back into Etika International or research into more small caps.

Overall, 2011 was a very humbling experience in the stock market and it really thought me the importance of not over extending yourself. The problems that we face right now is the very long tail of the global financial crisis which the Europeans are unable to get a grip on due to the structure of the EU.

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