If you have been following my blog posts, you will know that I have made 3 sell transactions this month. I have sold off Sheng Siong, Cambridge Industrial Trust and MobileOne Limited (M1). My investment thoughts have slightly change a bit this month and I shall share with you why this is so.
Previously, I have been accumulating stocks which means I have always been buying but not selling. Most of the stocks that I have accumulate are either REITS or business trust because that is where the accretive dividend yield is. One of the thing I missed out doing is housekeeping. When more and more stocks get added to my stock portfolio, I find it hard to manage. Certain stocks in my portfolio has under performed but I am not aware. Thus, this month, I decided to do some housekeeping and also reduce the number of stocks in my portfolio. The ideal number of stocks is around 20.
For the reasons i am selling off the selected stocks, you can read them here
Second, by holding on to under performed stocks, we miss out in opportunity cost. But hey, I sold Sheng Siong not because it has under performed but the possibility of slower growth in the near future. One of my regret is not selling M1 when it reaches its peak but like the saying goes “You win some, you lose some”. I am satisfied with the dividends I received from M1 over the years. The meaning of opportunity cost means I can take the money and profit from the above sell transactions to invest elsewhere, thus growing profits further.