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TKL's investment strategy
19 Apr 2021 (895 views)

I have $3 million invested in the stock markets in Singapore, Hong Kong and America.

In this post, I share my investment strategy in investing in these markets.

a) My primary strategy is to invest in stocks based on long term value. Currently, 70% of my portfolio is invested in these stocks. These are stocks that have a low price earning ratio (below 10 times), a good dividend yield (above 3%) and a high market capitalization (above $5 billion SGD).

I have a special preference for blue chip China stocks that are listed in Hong Kong. The prices in HK represent a discount of 30% or more from the prices in China. They give extremely attractive value.

b) I invest 30% of my portfolio in growth stocks. These stocks have the potential to increase its price by more than 50% in the near term future, based on rapid changes to its business.

For the value stocks, I will keep them for the dividend yield and the growth of its stock price over the years. Even if the stock price goes below my cost, I do not worry about it. I am more focused on its growth over the next three years or longer.

For the growth stocks, I monitor the stock prices daily. If the price moves up by 50%, I will sell my stocks. I will reinvest in these stocks when the price correct to a lower level. 

I will have a price range for the growth stocks, based on its growth potential and the past price range for the stocks. I will usually invest in these stocks when it has corrected by about 30% from its previous peak. 

Tan Kin Lian

 


TKL's investment strategy
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I have $3 million invested in the stock markets in Singapore, Hong Kong and America.

In this post, I share my investment strategy in investing in these markets.

a) My primary strategy is to invest in stocks based on long term value. Currently, 70% of my portfolio is invested in these stocks. These are stocks that have a low price earning ratio (below 10 times), a good dividend yield (above 3%) and a high market capitalization (above $5 billion SGD).

I have a special preference for blue chip China stocks that are listed in Hong Kong. The prices in HK represent a discount of 30% or more from the prices in China. They give extremely attractive value.

b) I invest 30% of my portfolio in growth stocks. These stocks have the potential to increase its price by more than 50% in the near term future, based on rapid changes to its business.

For the value stocks, I will keep them for the dividend yield and the growth of its stock price over the years. Even if the stock price goes below my cost, I do not worry about it. I am more focused on its growth over the next three years or longer.

For the growth stocks, I monitor the stock prices daily. If the price moves up by 50%, I will sell my stocks. I will reinvest in these stocks when the price correct to a lower level. 

I will have a price range for the growth stocks, based on its growth potential and the past price range for the stocks. I will usually invest in these stocks when it has corrected by about 30% from its previous peak. 

Tan Kin Lian