Today, I have logged on to my portfolio (Luckily, I still remember my password), I realise that something.
My Scenario 1: -
All counters have been kept for more than 3 years since the last day I bought.
My Scenario 2: -
I don't manipulate the stocks, neither do I top up any shares in more than 3 years.
My Scenario 3: -
All counters I own are blue chips.
8 Stocks that I have possessed for more than 3 years. (Please bear in mind that some of those have been held for more than 10 years)
2. Public Bank
4. Top Glove
I conclude that most of the stocks have slight changed since the last day I bought. Seriously, I don't recall the exact price three years ago. I make a close assumption.
Take an example,
1. F& N - From RM 18 --> RM 24++
2. Public Bank - RM 16++ --> RM 19.90++
3. QL - RM 4.20 --> RM 4.70++
4. Top Glove - Cannot recall --> too many bonus issues
5. Harta --Cannot recall --> few bonus issues
6. Kossan -- Cannot recall - few bonus issues
7. MKH --> RM 3.5++ --> RM 3--
8. Digi --> RM 4.40++ --> RM 5.10++
I skim through as much news as possible in few hours. I conclude that: -
1. You won't earn much if you buy blue chips with high PE. (F&N, Public Bank, Digi, QL)
2. You continue to hold the stocks with negative growth, the share price will slump. (Shares price of Kossan, Top Glove and Harta have dropped substantially)
3. Worst still, you continue to hold cyclical industries, you will make a lost. (MKH)
Needless to say, I don't know whether I have made a profit or lost for the 8 counters I have owned.
I quickly read more articles about the latest hot topics:
All furniture companies have surged at least 100% in last two years. (I missed the boat because I don't buy any stocks in three years)
All automation companies have surged at least 50% in 2017 since January. (Pentamaster, Willow and etc). I miss this boat also.
Needless, If you want to invest in the stock market, you must do adjustment from time to time.
PE must be lower than 10 times.
ROE must be higher than 10 times.
DY must be higher than 3 percent.
DON'T CHASE PENTAMASTER, WILLOW. Those stocks have been increasing for more than 50% even though there are the hottest counters lately. Worst still, PE for the above counters are higher than 10 times (which is higher than my criteria)