Slight Switch in Investment
I made a slight switch in investment. Since April, I started to buy a fixed dollar amount of ETF (e.g. AVGS) every month.
My aim is to increase the allocation to systematic active ETFs (e.g. AVGS, IFSW) over time. This is because
1) I find it hard to beat market returns and I don't want to spend too much effort.
2) It is hard to find quality stocks that I have conviction in and are available at reasonable prices. (Conviction is hard, when I find that I don't know many things.)
3) Systematic active ETFs have a higher chance of beating the market than myself. And they are more diversified and need less effort.
Sales
In last three to four months, I have sold my entire positions in several stocks:
- Travelsky (cut loss at 10% loss)
- Kuaishou (poor 1Q results)
- China Kepai (did not declare interim dividend)
- GlobalX Asia Semicon ETF (cut loss at 15% from peak)
- Best Mart (lacks conviction)
- Nameson (poor results)
- HRB (lacks conviction, sold after some gains)
Purchases
In last three to four months, I have purchased ETFs such as HIDR, SEDY, AVGS and IFSW.
Also, I have purchased stocks like BYD, Capita Ascendas Reit, HS Tech ETF and Booking.
Other thoughts
The book - Stock Market Maestros - is worth a read. It showcases how different good fund managers execute based on their investment philosophies.
Pico Far East latest quarter results showed that their Middle East business are affected by the Iran War. But businesses in other regions (e.g. America) makes up for it. At current price ($2.25 HKD; less than 7 PE), Pico Far East seems a worthy buy to me. But I did not add to my current position, as I feel that my current position in Pico is enough.
Some commented that Baba are undervalued at current prices. But I did not buy the stock. Because I lack conviction in it. I prefer Tencent, which I already have a position in.
What is conviction? I define conviction as that I will continue to hold the stock when its share price drops 10%, 20%, 30% etc, if the business conditions don't change much.
I think that the current high earnings of memory stocks are unsustainable. Nonetheless, I do not know if their share prices will drop or rise further. I also don't know whether AI is a bubble, why STI etf prices are rising etc.
