Reflections and My Top 10 Positions
Where should I start?
Prior to March 20, I primarily invested in SG firms. My portfolio suffered a 40 percent decrease as a result of the covid-19 pandemic.
I've been concentrating on the US market since May/June 20. As of March 21, my portfolio had broken even and had returned around 15%.
But then "Bill Hwang" shows up, and my portfolio suffered a gunshot wound that can be recovered in a short period of time.
However, I later became a Tencent and Baba shareholder. After that, we know what happened.
My portfolio is currently severely in the red, with losses perhaps approaching 50%. Worse than the March 2020 decline.
After all, the most crucial aspect of being an investor is to evaluate and comprehend what may have been done better.
1. Lack of Focus on Financials
It still makes sense based on the qualitative way I examined companies – by understanding their business, competitive advantage, competitors, and TAM.
However, there was a lack of focus on the companies' financials and valuation.
Therefore, it is time to get back to basics.
2. Lack of Patience
I don't like having idle cash lying around. So if the surplus cash hangs around for too long, I tend to look for the next investment.
I knew cash is king. But I still raced to buy at times, believing in my deep dive and the company’s product or service.
Maybe I was too early in the investment. After all, just because a product is good does not imply that it can be profitable.
I should have probably waited.
3. Never Gotten into Crypto
I'm glad I didn't get into Crypto. So there were no losses as a result of that.
It's not that I don't trust them or blockchain. It was far too complicated for me.
Nonetheless, I invested in Hut 8 Mining, a Bitcoin mining company. The position is now also in red.
In short, my company reviews should have been more comprehensive, and I should have been more patient in my purchases.
With that, here is an update on my portfolio's top 10 positions:
1. Alphabet (GOOG) - 21.9%
2. Bukit Sembawang (B61) - 17.5%
3. Digital Turbine (APPS) - 15.7%
4. Tencent (0700) - 11.8%
5. Alibaba (9988) - 5.7%
6. Palantir (PLTR) - 5.4%
7. Tesla (TSLA) - 4.6%
8. Hut 8 Mining (HUT) - 4.3%
9. FuboTV (FUBO) - 2.9%
10. Olam Group (VC2) - 2.8%
In comparison to my last update in March 2022, when I had 15 positions in total, with the top 10 positions contributing 83%, I now only have 12 positions, with the top 10 positions contributing more than 92%. In addition, cash position stands only at 3%.
Regardless, I will continue to invest and stay vested while building on my conviction.
Stay tuned for the next write up!
to be honest I think you are lost... how can u have both TSLA and BABA... at the end of the day you must go back to your roots... what kinda investor are you?
ReplyDelete????? Why not both tsla and baba.. ??? Dont see why they cannot be in the same portfolio..
DeleteHi Master Leong,
DeleteThanks for the comments. I wun say I am lost because I have both TSLA and BABA. I have my reasons to buy into both at the start if you ever asked me, but I think the conviction for both is not as high as it should be.
TUB
Of course you are lost. Read your “about me” page which claims your style of investing, and then look at the counters in your portfolio now.
DeleteI think Master Leong is alluding to your self-proclaimed investment style at the top of your page. You claim to be contrarian with a school of thought to focus on small caps rather than big tech firms. You can’t get much bigger than Tesla, Baba, Alphabet and Tencent
Deletei think u are quite a good investor, been following your blog.. cheer up.
ReplyDeleteI dont agree with the crypto part, many have lost money (i lost 90% from ATH). Not saying that you cant make money, but its not a cure all
I think just macro market environment changed rapidly, but may have not reacted quick enough on that one. Like rate hike forcing a rotation out of high beta tech into value; China tech clamp down, Covid, Russia/Ukraine war, Rising Geopolitical tensions, etc. Past 2 years have been better for nimble players rotating fast enough. Maybe u need to read up more on macro.
sometimes luck play a part in investing, will get better.
I don't know how you read about my points on crypto. I am still not against/biased towards crypto. I just want to say, because of the current crash, my never entering it at that starting point is a lucky shot for myself. Because I have wanted to buy into it before and its because the troublesome that I didn't go for it.
DeleteI think traditionally using macro news as a criteria on investment is not absolutely correct. But I don't want to say this is wrong too because my portfolio is red. Nevertheless, I think its probably better to go back to basic.