Philosophy
I come to realise that if I am buying individual stocks, I should strive to buy the best business and not buy value stocks.
It is not that value stocks don't work. They work but they need a lot of stock positions to work, as some value stocks may turn out to be duds. If I want to buy value stocks, it is better to buy value stock ETF, so that I will not be overly affected if the value stocks I hold turn out to be dud.
Market
The US market fell further, after the Sep Fed meeting and people realised that the Fed is serious on raising rates till inflation is tamed.
My buy plan is to buy stock ETF and selected US stocks in tranches, as market decline. Not buying HK stocks, as my stock portfolio is heavily tilted to HK shares
Purchases made recently:
- VWRA (global stock etf) bought at $94.5
- Googl bought at $99
- BKNG (Booking) bought at $1,755
I am also selling non-core position to shore up cash.
Sales made recently
- Occidental Petroleum sold at $63.7. (Slight profit, as I bought at $60)
- Micron sold at $50. Partial sale to reduce stake to acceptable position. (Loss, as I bought at $58).
Cash Account
As I plan to buy US stocks in future, I need US dollars. I converted some cash to USD at Interactive Brokers (IB). IB provides interest rate of 2.58% (BM - 0.5%) for USD cash > $10K. If Fed raise interest rate in future, IB's interest rate should rise accordingly.
CPF investable Global Stock ETF
Many years ago, when I was in my last year of university, I lament that I cannot use CPF-OA to buy gobal stock etf, which will have lower expense ratio compared to unit trust
Now, times have changed. One can use CPF to buy global stock etf in Fundsupermart or Endowus etc.
I look around and it seems cheapest to buy Infinity Global Stock Index Class C using CPF-OA at Fundsupermart. Because it does not carry any annual platform fee and its annual management charge is 0.2%.
If US market fell 40%-50%, it is time for me to use CPF-OA warchest to buy this index fund.
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