Category: Investment Lessons

Rule 2 Timing is most important

There was an investment in Sydney Airport Holdings Ltd on ASX made in November 2014. It’s an airport services counter and has appreciated by 165.63% over 4 years.

SYD:ASX

SYD:ASX

There was another investment in Auckland International Airport Ltd on ASX made in February 2015. It’s an airport services counter and it has appreciated by 149.18% over 3 years.

AIA:ASX

AIA:ASX

Then there was another investment made in Qantas Airways Ltd on ASX made in January 2018. It’s an airline counter and has appreciated by 132.65% in just over 5 months. This took a much shorter time.

QAN:ASX

QAN:ASX

It is important to know when to enter and even more critical to know when to exit. You will not however know for sure exactly when it is the right timing. You may have set a target plan e.g., X percentage gain over N months or years when you enter. Then you should track it to see that it is on the correct course. If it is not, then you would have picked that wrong timing to enter. If it is on the correct track, follow it and it is critical make the exit when it has reached the target (X percentage gain) that you would had planned earlier. Don’t be greedy.

Rule 1 What goes up must come down

Rule #1
What goes up must come down, vice verse and soon or later

There are exceptions to the rule, that I observed or that the cycle is too long for me to see it change, the point of inflection.

There is an investment in UOB Ltd on SGX made in April 2009. It’s a banking counter and appreciated by 34% over 9 years.

UOB Ltd U11:SGX

UOB Ltd U11:SGX on 14 June 2018

There is another investment in Apple Inc on NASDAQ made in June 2014. It’s a technology counter and appreciated by 107.72% over 4 years. Both have upward trend in Stock Price but obviously the technology counter grew at a much faster rate than the banking counter.

Apple Inc AAPL:NASDAQ

Apple Inc AAPL:NASDAQ on 15 June 2018

Now then next is an investment in A-Sonic Aerospace Ltd on SGX made in January 2015. It’s a disappointing Aviation and Logistic Supply Chain Management counter. It has decreased by -73.25% over 3 years.

A-Sonic BTJ:SGX

A-Sonic BTJ:SGX on 13 June 2018

The following proof the saying what goes up must come down.
This was an investment in M1 Ltd on SGX made in February 2010. It’s a telecommunication counter and has decreased by -18.4% has over 8 years.

M1 Ltd B2F:SGX

M1 Ltd B2F:SGX on 14 June 2018

What should have been done? Stopped the loss?

About Investment Lessons

These are stories about my investments made in the past. Hopefully it will teach you one thing or two about investing. Most of the investment were in equities. It have both good stories and bad ones too. The world is round and what goes up must come down.

The stories are random is order but I’ll try keep the dates as accurately as possible (to the nearest month or year).

I don’t claim to be an investment guru. What worked for me, may not work for others. Most of the time I may be just lucky or just fortunate to be in the right time. After years of investing, I have learned about patience, about doing my homework (reading up on financial statements and trends).

 

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