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| Saturday, September 29, 2007 |
| Briefly looking back |
I used to pyramid my holdings (buy more when increasing). While it seems to be working (Cosco, CAO, OKP, TW, Rotary for example) I do feel that the diminishing returns with each topping up is not effective. I just feel it ain't right offsetting the profitable initial holdings with the later ones, which are less profitable. One can be very critical in my portfolio by saying that it is over diversified and much of the profits are eaten up by transaction costs. Come to think of it, it makes lots of sense, even though I defended my decision by saying that since my time horizon is more stretched, transaction costs would not be that significant as I am looking at the longer trend.
At the moment, maybe I'm really holding too much counters. My risk per position might be too small thus resulting in small positions all over. Maybe I should reduce to around 10 counters instead? This is one which I need to think through. But the balance of risk, return, costs incurred is making management very intricate.
I think at the moment, my portfolio seems ok. I've formulated my long term counters (untouchable for the foreseeable future) and my trading counters seems to be alright as well. My data entry has been shelved due to studies. So I guess, I have to really wait till year end to compare historical data. |
posted by Nenix @ 11:49 AM   |
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| NenixDreams Fund |
| Fund launchprice on 1st August 2006= $1
Target for 2007 = Beat STI index
Current price of NDF as of 1st Oct 2007 = $1.58
Current price of STI as of 1st Oct 2007 = $1.54
Difference with STI index is 0.04
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