Annual Portfolio Review (2013 – 2014)

It has been a year (14/6/13 – 14/6/14) since I have started my journey in investing. During this year, I have made many mistakes and have learnt a few painful lessons.

In the past year, my portfolio has made a loss of -5.06%. I have to admit that this is a bad performance as compared to the STI index, which has increased around 4.17% in the same period. My portfolio was badly hit by my investment in Food Empire, which crashed due to the rising tension between Russia and Ukraine. That gave me a large loss of -28.95%. Another rare incident occurred to my investment in China Minzhong, in which I was lucky to escape unscathed when short-seller Glaucus Research issued a fraud report against it. The breakdown of my positions are shown in the table below.

Annual Portfolio Review (2013 - 2014)

Looking back, I made the error of investing in companies which I had no competence in understanding and committed the mistake of overtrading.  In the last year, I invested in 10 companies of which I am currently only holding onto 4. My holding period was an average of 3-4 months for most stocks, which went against the principle of holding for the longer term. In addition, I was too hasty in my due diligence and followed the direction of others when I was too lazy to perform my own analysis.

In the coming year, I hope to improve my performance by trading less, preparing more and seeking a greater margin of safety before investing. Throughout the recent year, I now understand that the key in successful investment is one’s temperament. Controlling my urges and fears is one area I hope to improve on as well.



Divestment of Yongnam Holdings

On 28/05/14, I divested my stake in Yongnam Holdings at $0.24. Including the dividends of $0.006 received, the total loss was -1.24%. The decision to divest was made due to its lack of convincing contract wins, and because I felt that the compensation plans of the company seemed abit excessive. Moreover, I felt I was hovering on the edge of gambling, as I was hoping for positive news from the award of the Hanthawaddy International Airport to pump up its share price despite these few red flags. If the award was indeed given to Yongnam and its partners, we would possibly see a strong surge in the share price. However, I do not fancy this uncertainty, as my mentality regarding this investment is currently similar to one of gambling. As such, I have exited this investment at a small loss.