Thursday 30 July 2015

Thoughts about my Portfolio

Hi All,

It has been quite a while since I posted on this blog. The reason for this is because I have been really busy, preparing for my studies that is about to begin really soon!

Anyway, during this time, I have been thinking about investment strategies that I could be using during my time in University. I am looking for a simple and effective strategy to deploy such that I can have a chance of achieving 15% or more annual return over the next 5 years. After much searching, I believe I'd found it!

CNAV Strategy

I happened to chance upon articles about Alvin Chow's Value Investing Master Class; judging from their raved reviews about his course and the fairly priced charges, I decided to give his course a try. (I am not advertising for Alvin's course but merely expressing my thoughts about it)

In his course, he outline this simple strategy searching for CNAV stocks and explained about how these stocks have the ability to generate approximately 15% returns over the long term. It seemed simple enough to use and he even came up with criteria for a screener to reduce the amount of time that we have to spend searching for these stocks.

For obvious reason, I will not go on too much about the techniques of how to calculate the value of these stocks but rather, encourage those that are interested to find out more to give his seminar a shot.

In short, Alvin's CNAV strategy takes its root from Benjamin Graham which involves looking for stocks that are neglected by most investor and as a result, are often trading cheaply. The strategy focuses a lot on the balance sheet of the companies and leaves little room for forecast. This adds a layer of protection for the investors as it takes a lot of guesstimate out of the equation when we are analysing the companies.

Portfolio Management

Building on, I will be screening for companies using Alvin's strategy once every quarter. This will reduce the amount of time I will have to spend on stock pickings and let me concentrate on my studies. Only if the company passes the CNAV screen then will I be putting in much more analysis into the company. I expect myself to be able to find perhaps 1 or 2 good ideas every quarter. After that, I just have to be patient and wait for the stock price to reach my target price before initiating a position.

I plan to hold about 20 stocks in my portfolio; each position going up to a maximum of 5% when I initiate a position. However, if the stock price starts to run and increase dramatically, I will allow the position to reach 15% of my portfolio before I will decide to do some trimming.

Conclusion

In the future, I will constantly update my portfolio on this blog and also talks about ideas and my ways to improve the CNAV strategy to suit myself more. Stay tuned.

Please do comment down below as well to let me know if there is anything that I can do to improve on my portfolio selections as well as position sizing and management. I still have much to learn from everyone! :)

By the way, for those who are unfamiliar with Benjamin Graham's strategy, I will be doing a post on it next week if I can!

7 comments:

  1. achieving 15% or more annual return over the next 5 years?

    from 2015 to 2020?

    Super!

    Read? King Wan - My CNAV Analysis (Take 2)

    ReplyDelete
  2. Hi young man,

    To be successful in investing is not just like that. It is hard work, otherwise, everyone will be rich. I was there before and my two cents worth of thought

    ReplyDelete
  3. Interesting philosophy! To be slightly more encouraging, at least u r trying something new each time!

    Read more n do more! Fail more, learn even more!

    Eventually u realise its even more important to have a strong character urself n understanding the business of a company than just all the analysis, although the analysis is still impt.

    Read

    http://www.rolfsuey.com/2016/02/rolfs-investment-philosophy-part-1.html?m=1

    U can also read part 2 from the link of part 1!



    ReplyDelete


  4. تعد شركتنا افضل شركة صيانة مكيفات بمدينة جدة حيث توفر لكم الشركة خدمات ممتازة وراقية
    شركة صيانة مكيفات بجدة
    بالاضافة الي قيام الشركة بعمليات التنظيف علي اكمل وجه ونقدم لكم خدمة تنظيف المكيفات بشكل راقي جدا
    شركة تنظيف مكيفات بجدة
    ونحن كاسم كبير نقوم بخدمات كشف التسربات بمكة ونقوم بالعمل بافضل الاجهزة ونمتلك افضل الفنيين المتخصصين
    شركة كشف تسربات بمكة
    كما يتوافر في الشركة خدمات العزل بكل انواعها واحجامها وتعد ايوان افضل شركة عوازل بجدة لما توفره لعملائها من

    خدمات علي مستوي عالي وراقي جدا
    شركة عوازل بجدة




    ReplyDelete