Saturday, January 8, 2011

Portfolio as at end Dec 2010

My portfolio, as at end Dec 2010, contains the following stocks:
Guocoleisure, Eratat, Heeton, Hiap Hoe, Techcomp, Qingmei

Sold: Valutronics, Roxy, Bright World, Ziwo
Bright World is sold at its mid-30s cents before its rise to 50 cents. All the stocks are sold to raise cash to buy other stocks.

Bought and Sold: China Gaoxian (GX), Hotung
Have bought GX in October and dispose the entire position in late December at lower than 35 cents. Missed GX's run-up to 40+ cents. Hotung is a short-term play, which was bought at 12 cents and sold at 14 cents.

Bought: Guocoleisure and Qingmei
Guocoleisure is bought due to the presence of insider's purchase. Qingmei is bought after it is ex-dividend, and due to its low PER.

Added: Eratat, Heeton
Have bought more Eratat and Heeton shares, since both counters are relatively more undervalued as they have not run up as far as GX.

Portfolio Composition
Eratat is my largest holding as at Dec 2010, while Qingmei has become my second largest holding. Heeton is my third largest holding.

My 2010 portfolio return is 78%, which is roughly half of my 2009 return. My four most profitable stocks in 2010 are GX, Broadway, Techcomp and Eratat. I find it noteworthy that on a per unit basis, my portfolio unit price has surpassed its previous high in 2007. (Otherwise stated, my portfolio returns are computed using unit value method.)

In 2011, my return is likely to less than half of my 2010 return. Furthermore, I am likely to hold a higher cash level in 2011 given the higher valuations.

Lastly, I feel that property stocks holding high-ended property projects are likely to have good returns in 2011. Nonetheless, I will take this view with a pinch of salt, since I am not an expert in properties.

Monday, January 3, 2011

Book Review: The Age of the Infovore

Book Review: The Age of the Infovore

‘The Age of the Infovore’ is written by Tyler Cowen, an economics professor. The book is available in NLB.

This book is thought-provoking but frustrating to read. The book belongs to those categories of books that read like a boomerang. That is, the book does not conclude or drill down to a few points. Rather, it keeps on expanding your perspective. The book may be easier on the mind, if the author treats each chapter as separate pieces and not as pieces relating to autistic strengths.

Anyway, the interesting points:

a) Autism’s cognitive strengths include:

i) strong in ordering knowledge in preferred domains

ii) strong in observing small pieces of information in preferred domains

b) These strengths are relevant to our internet world, when we see that large amounts of information are being ordered and processed to meaningful bits. For example, our favourite bookmakrs, Google search, Facebook, Twitter etc.

c) When access is easy, we prefer the short, small version. When access is difficult, we prefer the extravagances and masterpieces. For instance, if we are going to travel long distances for something, that something have to be worth our travelling time and while. However, when access is easy, we want to try more new stuffs. To try more new stuff, the new stuffs have to be smaller, so that they can be accomplished with less time.

d) Education can be consumed online without face-to-face interaction. However, online education is not well-received. This is because we prefer to have face-to-face interaction (e.g. attend lectures, attend tutorials). Having face-to-face interaction and people around us may help us better focus and be more motivated to absorb the knowledge.

e) Sherlock Holmes seems to be an autistic.

f) There is neuro-diversity around. Hence different people may have different taste for art, music and different ways of perception.

g) A country with a culture that tends to obey rules and follow unspoken codes tends to be more successful economically.

Apr - Jun update

The market is back to its high recently, especially with Reits choinging. I don't hold a lot of Reits. Nonetheless, the sale of some s...