Time passes very quickly and before we know it we are already in the final month of the year.
It has been a love hate experience this year with Covid restricting the ability for most of us to travel and reunite with some of our families who are overseas.
I was originally scheduled to return back to visit my parents but due to circumstances and the new Omicron variant, it makes the visit an uphill task to battle (despite the announcement of VTL).
Nevertheless, December is usually a month where I take it easy with my work so subsequently I am also on leave to take a break until the 3rd week of December where I will resume work.
From an investment front, I have received tons of messages across my email and comments section especially after a few companies have reported their earnings.
Most of the messages were concerns and worries with the overall market in general, given that the Fed will be starting to raise interest rates as soon as the next Fed meeting in March next year.
There were also a few concerns pertaining to Chinese stocks and I think these worries have been escalated over the past few months due to the poor share price performance of the underlying stocks.
My only message is I remain confident of the overall CCP clampdown situation which I believe will benefit the overall sector in the longer run and the numbers that are coming out from the earnings and guidance, and I am extremely happy with the valuation Mr. Market has given to us.
While the politician’s job is to govern and the economist’s job is to speculate, I am here to deduce the information that is available to me at the given time and make decisions that I believe provides the best risk reward in a given situation.
If you look across my portfolio for this month, I have continued to add shares to some of the companies aggressively by adding to some of the positions.
First up, I sold half of my JD positions on the 24th Nov at $89.5 and used some of the proceeds on averaging down more Baba shares at $133 that very same day. I have also added a small position for Stone Co which I like the numbers and wanted to monitor it a little bit more.
I continued to add more Baba shares this week at $127 and $123 respectively.
I have also added a lot more Tencent shares by increasing them when it managed to drop to HKD 450. This has become my second biggest position after Baba at 16% weightage allocation. Like Baba, I remain confident that Tencent has a strong business moat and model which can create both organic and VC-alike acquisition growth in the coming years to come.
I have also added a little bit more Huya shares after its earnings after it’s shares dropped below $8. I do think this is also a steal in the making and I actually like the recent earnings they have released.
On other news, I have also applied for the IPO of the Digital Realty REITS for my Singapore dividend portfolio which the results will only be out by tomorrow. Will keep updated on how the allocation goes but I am not hopeful to get any.
Net worth went down by quite a bit this month despite the ongoing capital accumulation on these stocks.
If there is one thing I like about this year, it is that the ongoing Chinese calamity allows me time to accumulate more shares and positions into a portfolio that I am building over time.
While it’s nice to see a nice uptrend to the overall networth over time, I am comforted by the fact that I am able to continue adding shares at a pace that is just right for me. If this continues over the next 1 year, you can be sure that I will continue to add onto these company shares. As the saying goes, there are no better times than to accumulate your positions over time when there are bloods on the street.
My only message is this – Do not fret so much about what is going on in the market because you are buying a quality company. Ignore the noises, and enjoy the holidays, and most importantly take good care of your health. That’s how you go on and build on better wealth in the future.