This will be a very short post.
Today, I did some reshuffling to my holdings in my portfolio.
1) Basically I sold half my holdings of CapitaLand Shares (for a small amount of profit, 4%), and bought some ISOTeam and Sarine Technologies shares. Overall cash war-chest increased.
2) Rational for doing so:
- I have been wanting to offload the fundamentally weaker counters (CapitaLand being one of them), to increase war-chest.
- The share prices of ISOTeam and Sarine Tech have dropped recently. However their prices did not fall below the estimated intrinsic value (so did not buy a lot). However, I believe they are strong growth counters with acceptable low debt level.
“If I’d bothered to ask myself, ‘How can this stock go any higher?’ I would have never bought Subaru after it already went up twentyfold. But I checked the fundamentals, realized that Subaru was still cheap, bought the stock, and made sevenfold after that.” Peter Lynch
Sarine Tech’s share price drop could be due to the ‘dark clouds’ over the rise of the synthetic diamond market, which probably cause the rough diamond prices to increase overall for most of 2014, out of sync with polished diamond prices market trends.
There are actually 2 schools of thought here. Perhaps I shall analyze further into it on another day.
Slow process of weeding out the weak.