Skip Navigation Links
How I diversify my investments
01 May 2021 (345 views)

I have $3 million invested in Singapore, Hong Kong, China and American stocks.

The key components are:

Cash $300,000
Tesla $500,000
Remaining $2,200,000 is invested in about 20 stocks - average of $100,000 per stock.

About 75% of the remaining stocks are being held for long term value. They have a low price earning ratio (below 10 times) and a dividend yield above 3%.

The remaining 25% are speculative growth stocks. They are now mostly at 50% of their recent peak. Nevertheless, I still monitor these stocks closely and may sell them at a loss.

I consider that my portfolio is well diversified. If there is a severe stock market crash, I will invest the cash holdings.  I will hold on to the stocks that have long term value. However, I may sell the speculative stocks.

For the time being, I avoid the market index ETFs, e.g. USA, China or Singapore. They have a high PE ratio (above 15 times) and low dividend yield (less than 2%).

I prefer to select the shares of blue chip companies that have a low PE ratio and a good dividend yield (i.e.based on my criteria of long term value).

Note - I am sharing my thinking. Do not take this as investment advice.
 


How I diversify my investments
[Back] [Print]


I have $3 million invested in Singapore, Hong Kong, China and American stocks.

The key components are:

Cash $300,000
Tesla $500,000
Remaining $2,200,000 is invested in about 20 stocks - average of $100,000 per stock.

About 75% of the remaining stocks are being held for long term value. They have a low price earning ratio (below 10 times) and a dividend yield above 3%.

The remaining 25% are speculative growth stocks. They are now mostly at 50% of their recent peak. Nevertheless, I still monitor these stocks closely and may sell them at a loss.

I consider that my portfolio is well diversified. If there is a severe stock market crash, I will invest the cash holdings.  I will hold on to the stocks that have long term value. However, I may sell the speculative stocks.

For the time being, I avoid the market index ETFs, e.g. USA, China or Singapore. They have a high PE ratio (above 15 times) and low dividend yield (less than 2%).

I prefer to select the shares of blue chip companies that have a low PE ratio and a good dividend yield (i.e.based on my criteria of long term value).

Note - I am sharing my thinking. Do not take this as investment advice.