Interesting Blog
Recently, I have been reading the LT3000 blog (lt3000.blogspot.com). The blog has very interesting articles like the preference to be 100% invested, the philosophy of buying less than perfect companies at very discounted price (e.g. buying a 5/10 company at 3) and having tiny position
Strategy Change
As I mentioned earlier, 8% of my stock portfolio was in Eagle Hospitality Trust before the large drop in Nov 2019. This prompts me to re-think my position sizing, in that I should have a smaller position in Eagle and other stocks.
Moving forward, I will change my position sizing to
- at most 3% of portfolio for reasonably value stocks (0.5 value < price < 0.8 value)
- at most 5% of portfolio for deep value stocks (price < 0.5 value)
The above will be a guide to my position sizing. If I think that the stock carries more risk, I will limit the position size further.
Looking at Stocks
I have been looking at Hong Kong stocks recently, as I find that there are some interesting counters that give rather high dividends and has low PE ratio.
For example, Sun Hung Kai (86) gives more than 7% dividend and is around 6 PE ratio.
