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
Goodbye Cambridge Industrial Trust
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.
Is there a reason for holding comfortdelgro since it will also be affected by uber?
Similar to M1 being affected by fourth telco?
I would like to know what’s your take on Sheng Siong if I have a long term investment horizon say 5 years+. I currently hold that and wondering if I shall stay with it.
Hi Scott, you can read more on My Personal Analysis of Sheng Siong Group Ltd. I like this company because so far it has maintain debt free. Challenges will be against competitors like Dairy Farm and Giant who are competing with more supermarket stores in saturated Singapore.
So far Sheng Siong has done well and have ventured into the China market. I will say the CEO has good foresight. Sheng Siong is a growth company and not for short term investors. Based on the above, you should decide at which point you are satisfied with the profits to sell or continue holding further.
My Sweet Retirement