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My portfolio during a period of market downturn
29 Jan 2022 (643 views)  

I share my approach towards investing my portfolio during this period of market downturn.

I have a portfolio size of $3.7 million SGD.

It is invested as follows:

Singapore stock - 13%
Hong Kong stock - 48%
US stock - 27%
Futures and cash - 12%
Total - 100%

Most of my Hong Kong stocks are of China companies. They provide a dividend yield of over 3% and a price earning ratio less than 10 times. They are described as value stocks.

Most of my US stocks are growth stocks. Tesla stock represents 43% of the US stocks  or 11% of my portfolio. Tesla is a profitable company with a PE ratio of around 100 times. While this ratio is high, the earnings are projected to increase by more 3 times over the next 3 years, which will bring the PE ratio to around 35 times.

The remaining stocks are growth stocks, which are not profitable yet. They have sufficient cash resources to last them for more than 3 years. During this time, they are likely to see breakthrough in their development and marketing of new products, and may see an explosive growth in their stock price. However, this is speculative. 

Some of the stocks have a cash per share that is higher than the stock price. Their goodwill (i.e. marketing and intellectual property) are not reflected in the stock price. The current stock prices are grossly undervalued. 

I am prepared to wait for the next three years for the market to recover and for the value of these stocks to be reflected in the stock price. 

As I do not have any leverage, I am able to hold on to the stocks for several years. There is no need for me to sell the stocks at the current depressed market.

Tan Kin Lian
 


My portfolio during a period of market downturn
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I share my approach towards investing my portfolio during this period of market downturn.

I have a portfolio size of $3.7 million SGD.

It is invested as follows:

Singapore stock - 13%
Hong Kong stock - 48%
US stock - 27%
Futures and cash - 12%
Total - 100%

Most of my Hong Kong stocks are of China companies. They provide a dividend yield of over 3% and a price earning ratio less than 10 times. They are described as value stocks.

Most of my US stocks are growth stocks. Tesla stock represents 43% of the US stocks  or 11% of my portfolio. Tesla is a profitable company with a PE ratio of around 100 times. While this ratio is high, the earnings are projected to increase by more 3 times over the next 3 years, which will bring the PE ratio to around 35 times.

The remaining stocks are growth stocks, which are not profitable yet. They have sufficient cash resources to last them for more than 3 years. During this time, they are likely to see breakthrough in their development and marketing of new products, and may see an explosive growth in their stock price. However, this is speculative. 

Some of the stocks have a cash per share that is higher than the stock price. Their goodwill (i.e. marketing and intellectual property) are not reflected in the stock price. The current stock prices are grossly undervalued. 

I am prepared to wait for the next three years for the market to recover and for the value of these stocks to be reflected in the stock price. 

As I do not have any leverage, I am able to hold on to the stocks for several years. There is no need for me to sell the stocks at the current depressed market.

Tan Kin Lian