Summary of August 2015 Transactions

Strait Times Index August 2015

As my mindset shifted from being a value investor to an income investor, I made a drastic decision to update my portfolio. Given the current market turmoil, it was certainly a wrong timing to sell but I knew that some of my holdings are bought purely on speculation few years ago and if I did not sell now, losses will compound. I sold Amara Holdings, Boustead Projects, K1 Ventures and Second Chance Properties Ltd. I am not saying these few stocks are not good but it is just that I did not understand or did my home work on them prior to buying them. E.g. I bought Second Chance because of its high yield but I did not study in depth into its fundamentals.

The STI fell below 3000 this month. Some stocks in my portfolio fell more than 30%, however diversification saved my portfolio. Certain stocks in my portfolio held the fort well and prevented my entire portfolio from entering the negative zone. They are ComfortDelgro, M1 and Sheng Siong Group Ltd. (Read my analysis of Sheng Siong here)

Having received dividends from existing holdings and spare cash from selling off the above stocks, I grabbed the opportunity of the oversold market and bought SMRT, ST Engineering, Mapletree Commercial Trust and Television Broadcasts.

Given the uncertainty of Fed Interest Rate hikes and further China economic weakness, there will be more opportunities for an oversold market. Shall monitor and buy on beaten down growth stocks that pay good dividends.

 

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