As discussed below. Here is an update of the portfolio, which is based on an opening value of $100,000. Although prices of most of the stocks in the company have fallen lower in line with the market, dividends and interest from the outstanding cash positions have been chipping away at the loss and the fact that the equity cash allocation is 65%- 35% has cushioned the performance of the portfolio to stand at just -2.93% at time when the KLCI is standing at around -8.5% from a year ago.
In reality, the portfolio is actually performing better than that, as I have been adding to positions on a monthly basis, which has averaged down the price of the stock over time in this bear market. However I have not quoted this average price, preferring to stick with just the opening price for simplicity’s sake. I hope you can see that every little thing you can do to make the cost of holding shares cheaper over time the helps the portfolio get itself into a position where it can take into account of any stock market rally.
In addition today I disposed of Penta in favour of KKB, and raised my allocation to 70%-30%. Over the course of this year I intend to increase this to 100% cash.
Happy trading!
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