Mad Selling in a Over-Cautious Mood

Well, I guess I may have done it again. I may have succumbed to the falling market and my over-cautious mood last week.

I have sold C&G, Techcomp, Tuan Sing and UE at low prices and even loss-making prices. On hindsight, my portfolio may have performed better if I have not sold them.

On hindsight, I do not even have to sell most of them in the first place if my margin of safety is larger. Since I may not own them in the first place. Hence, I decide to increase my required margin of safety before I should buy a stock. A higher margin of safety should also help in lowering number of trades.

Well, let's hope that a higher margin of safety works out for me.

Comments

musicwhiz said…
Hi thinknotleft,

Yes, perhaps a larger margin of safety is preferred, especially for companies with low margins or weak franchises. Mr. Market's mood swings are getting more and more erratic these days. My advice is to just ignore him. If you know you got a good company at a comfortable price, there is no reason to sell to him when he is manic-depressive.

Good luck ! :)
ThinkNotLeft said…
Hi Musicwhiz

Thanks for your comment. Yes, theorectically larger margin of safety is preferred for companies with less moat.

After a few years in the market, I think I am starting to be tired of Mr Market. That is, Mr Market is getting more and more boring. That may be a good thing, since investing books always show great investors describing investing as boring or "watching paint dry".

Your blog has taught me a good lesson. That is, investing in great companies can be done in Singapore and can be quite profitable. As I picked up my investing skills partially from Wallstraits, I tend to think that investing in great companies is hard in Spore.

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