I conceded defeat. I have underestimated the extent of selling panic, so much so that I keep buying and buying. Yes, I have somehow reached my target of being more than 100% invested. Probably in the weeks to come, I will put my tiny bit of savings year-to-date into this lowly valued market.
It is interesting to note that my portfolio has fallen around 33% from its highest point in mid-Jul. And this is worse than the 25% fall I suffered last year. However, emotionally wise, I seem to feel less pain compared to last yaer. Is this a form of adaption to extreme volatility or am I not out of dreamland of thinking that the stocks will recover? Or perhaps I do not see money as important as before despite my portfolio having grown larger. As usual, I do not know.
Anyway, my portfolio has 30% in Hongwei. And none of the 30% is bought at the current low price of $0.305. I think that Hongwei is my best pick of this correction, similar to my pick of CG Tech in the 2006 June correction. However, as always, my views may be wrong (or dead wrong). Its really up to you to decide what you want.
In closing, I shall recall Graham's Mr Market analogy. That one should treat the market as an offerer of prices and ignore him until you wish to trade with Mr Market. And for the past two weeks, I am happy to buy from the pessimistic Mr Market. I suppose that extreme volatility is bread and butter (or even honey) to a value investor.
Note: Mr Market analogy may harm you if you are playing with excessive short-term leverage.
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