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My approach towards investing
30 May 2022 (545 views)  

My approach towards investing can be summarized by one key principle - to invest in undervalued stocks. 

They fall in the following categories:

a) Blue chip stocks with price earning ratio (PER) less than 10 times and dividend yield higher than 4%

b) Stocks selling at more than 50% discount to their asset values, and they are not highly leveraged.

c) Growth stocks trading at more than 50% discount to their peak and have the potential to be profitable within the next two years.

I monitor my portfolio daily and share the overall portfolio gains (or loss). I also make special analysis of specific stocks that have moved well or badly.

During the past six months, my portfolio has been hit by the following factors:

a) War in Ukraine, which had lasted longer than I expected, and there is no near term prospects of a settlement.

b) The prolonged lockdown in China to combat covid. This has lasted longer than expected. 

c) The high inflation in several countries (due to several factors) and the attempt now to increase interest rate to bring down the inflation rate.

I did not anticipate that these three events would last as long as they did. This has cause serious damage to my portfolio. From a gain of over $1 million in October 2021, it had dropped to a loss of $31,000 on 24 May. It has since recovered to a gain of $170,000 on 28 May 2022.

During this time, I remained committed to the strategy of investing in undervalued stocks. I do not try to take short term trading based on technical price movements. I am not good in this strategy.

I do not believe in selling stocks that have dropped to depressed values. They severe drop is due to investors who bought on margin and are unable to meet the margin calls. They are further depressed by the short term activities of short sellers.

I post my daily portfolio results for people who are interested to monitor the results of my investing strategy. I do not expect them to agree with my approach all the time. 

My daily report invite some criticisms from "smart people" who post their views mainly with the benefit of hindsight. I do not welcome their air of arrogance and smartness. They should spend their time to manage their own investments, and adopt their own strategy. 

They are welcome to share their views of the investment market going forward, and give their reasons. 

I believe that I did not do well during the past six months. I am sure that some other investors have done better. But I also believe that other investors have done worse.

Tan Kin Lian
 


My approach towards investing
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My approach towards investing can be summarized by one key principle - to invest in undervalued stocks. 

They fall in the following categories:

a) Blue chip stocks with price earning ratio (PER) less than 10 times and dividend yield higher than 4%

b) Stocks selling at more than 50% discount to their asset values, and they are not highly leveraged.

c) Growth stocks trading at more than 50% discount to their peak and have the potential to be profitable within the next two years.

I monitor my portfolio daily and share the overall portfolio gains (or loss). I also make special analysis of specific stocks that have moved well or badly.

During the past six months, my portfolio has been hit by the following factors:

a) War in Ukraine, which had lasted longer than I expected, and there is no near term prospects of a settlement.

b) The prolonged lockdown in China to combat covid. This has lasted longer than expected. 

c) The high inflation in several countries (due to several factors) and the attempt now to increase interest rate to bring down the inflation rate.

I did not anticipate that these three events would last as long as they did. This has cause serious damage to my portfolio. From a gain of over $1 million in October 2021, it had dropped to a loss of $31,000 on 24 May. It has since recovered to a gain of $170,000 on 28 May 2022.

During this time, I remained committed to the strategy of investing in undervalued stocks. I do not try to take short term trading based on technical price movements. I am not good in this strategy.

I do not believe in selling stocks that have dropped to depressed values. They severe drop is due to investors who bought on margin and are unable to meet the margin calls. They are further depressed by the short term activities of short sellers.

I post my daily portfolio results for people who are interested to monitor the results of my investing strategy. I do not expect them to agree with my approach all the time. 

My daily report invite some criticisms from "smart people" who post their views mainly with the benefit of hindsight. I do not welcome their air of arrogance and smartness. They should spend their time to manage their own investments, and adopt their own strategy. 

They are welcome to share their views of the investment market going forward, and give their reasons. 

I believe that I did not do well during the past six months. I am sure that some other investors have done better. But I also believe that other investors have done worse.

Tan Kin Lian