Do you always know why you made certain decisions and did certain things?
These following activities occurred outside of my core index portfolio (I call it my “play money”) which I thought are worth sharing. I had deliberately omitted my buy/sell prices since they weren’t important to what I’m conveying.
Selling Saizen Early
I was one of the “lucky” beneficiaries when Saizen REIT assets were eventually acquired by Triangle TMK. It would have been a great counter to hold on for the dividends, so whether it is lucky or not, no one will know. Anyway, when the announcement was made public, its share price surged and I sold it way back in November 2015.
True, I could have probably collected more dividends and made more money by holding on to it just a little longer. I sold it early because holding on involves opportunity cost, and I thought the money could be better deployed elsewhere.
I got lucky, I guess. January 2016 came and I went “shopping” with the money.
Prior to the stock market dip, I had short listed a few counters based on my criteria and indicated a target price (I would receive a notification alert when that happens) whereby I would make a purchase.
The stock market sale came, and Starhub was one counter which I had accumulated a tiny bit of. Problem was that I got lazy before the purchase, and I didn’t reconsider the reasons which I had based my decisions on.
After buying – I know, dumb right – I went to read the annual report and didn’t like what I saw. Considering that the entrance of the 4th telco is probably coming soon as well, I didn’t like the risk and promptly flipped Starhub like roti-prata and sold it shortly after.
Always Consider “Why”
Making a mistake is bound to happen sooner or later. By recognizing the reasoning behind my decisions, it made it easy for me to acknowledge my error/negligence and move on.
When things work out well, fine. If not, be ready to cut it loose!
But hey, it was fun times! Just when I was thinking “oh crap”, the stock prices kept on going up for some reason. The stock market can be pretty irrational in the short term, huh?
Soldiering On With Index Investing
A great share by a fellow indexer led me to this amazingly insightful podcast featuring Jack Bogle – a pivotal figure in the world of index investing. Indexing would not be the way it is now, if not for him. Go on and listen to it, even if you’re not a fan of indexing, because it is still interesting to listen to the man himself. Check out his Bogleheads XIV presentation as well while you’re listening!
Bloomberg View columnist Barry Ritholtz interviews Jack Bogle, Founder of the Vanguard Group, Inc., and President of the Bogle Financial Markets Research Center. He created Vanguard in 1974 and served as Chairman and Chief Executive Officer until 1996 and Senior Chairman until 2000. This interview aired on Bloomberg Radio.
Something which had started off on a whim has grown to a massive Facebook group with 328 members (as of today). Interested in index investing? Join now!