I’ve went and done it. Yeap. Spent it. Bought it. Whatever you call it. After many weeks and days of scouring the market and keeping tabs, i finally spent a big amount on accumulating some of the stocks that i personally feel are a value buy and a value add to my portfolio.
Within a month, i spent SGD 13,000 on stocks. 2 from the SGX, and 1 from the USX. I’ll cut straight to the point – Capitaland, Manulife US REIT, and American Express.
These are counters that i love, and have been eyeing for quite awhile. Albeit just slightly above the price that i wanted to capture them at, i still made the buy action.
Now, no matter how i tried to rationalise the market, the odds are there will be a drop in the near future, perhaps not as big as the one in March, but still a drop. So why did i still make these buy actions? Well, there are a few reasons.
1. Gut Feel. That visceral feeling in me that said “buy it”! I’ve been bitten quite a few times from not trusting my gut but instead trusting logic, and this time round i am going to trust myself.
2. Long-term. I’m not going into these 3 counters to make a quick buck, but instead im ready to hold onto them for a few years. They are strong stocks with good management, excellent balance sheets, strong dividend and distributions, and so on.
3. For my overall long-term vision. With these investments, i currently have 20% in the stock market and the rest in bonds, liquid cash, etfs and so on. Over the next 1 year, i plan to have 50% in total in the stock market. As a student with not much monetary obligations (for now), i have the capacity to weather through bad times and i do not foresee myself needing this 50% that i will be investing in the stock market over the next 3 years. This is the perfect time for me to increase my exposure and to take on more risk, i will not be able to do so in the future once i settle down and have more financial obligations.
4. Opportunity to average down. Although i strongly believe in the saying “money not made is money not lost”, i also believe that i would be a fool to consistently throw away opportunities that come my way. Should the market go up, great! But should it go down, sure, i’ll average down in tranches and invest in counters that i feel are worth accumulating.
And that’s about it for today’s post. Please share with me what do you guys think? I love hearing about your opinions and comments!
P.S. I’m looking to accumulate more of United Hampshire REIT & Singtel.
(I know i know, i am contradicting my previous post, but i did mention to buy in tranches!)