Children's Day Investment Policy?

With effect from this Children's Day - 5 Oct 2012, i am going to make some minor adjustments to my investment criteria for the SRS portfolio.

If you have been following my blog, I have built up a portfolio of dividend policy paying REITs and stocks in the last 2 months but i am still holding on to quite a bit of cash. (About 40% of the portfolio). 

I am pretty cautious of adding new positions as the market seemed to be forming a "Yield Bubble" and in all cases, bubbles are unsustainable. To be honest, i am quite tempted to take profit on my positions in Starhub and Cache as the yields have came down quite a bit following the run-up and the stocks may not be trading at cheap valuation. In any case, let me ponder on them more but i have put price alerts on them at certain price supports. The weekly charts of both counters are presented below from where i bought them.

Starhub

Starhub has served me well from my entry point of around 2.08 and has risen 76%. The current yield has dropped below 6% and the company has taken on more debt. I will still stay with the counter but will not hesitate to get out of this when the time comes. 

Cache

Children's Day Policy

I am going to expand my investment criteria beyond yields and include blue chips and growth stocks into the portfolio even if the yields may not be attractive. The reason for doing so was that i was looking back at some of my trades and i actually bought some growth O&G and blue chip stocks in June and July but never had the patience to let these stocks run its due course. Some of the interesting growth stocks are Ezra, Ezion, Midas, Osim... the list is long but the yields from them may not be attractive. 

By creating a portfolio of growth, blue chips and dividends stocks, it can perhaps stomach the volatility better and at the same time, allow the growth and blue chip stocks to run its full course. I call it the Children's Day Policy to perhaps create this portfolio with my kids investment horizon in mind. One thing i don't want to happen though is to trade the stocks in this Portfolio. This is not a trading portfolio. This is a Invest more Trade less portfolio.

Anyway, i am not saying you can buy the growth or the blue chips now but i am preparing the change in anticipation of any possible corrections that may be coming along the way to make them attractive again  

Happy SRSing.