SRS Strategy and Portfolio

As mentioned in my IPO blog yesterday, I updated the investment strategies for all my blogs and today i cover the SRS strategy. You can find the updated strategy here and it will be constantly updated over time.

Let me reiterate the key concepts and mindset so that you can appreciate it better.

• Fundamentals - Stocks are chosen primarily using fundamental analysis in terms of valuation, macro outlook and earnings potential.
• Longer time horizon - The stocks are held over a longer time horizon and not intended for short term trading. 
• Volatility - is actually not appreciated. I would prefer to see the share price creep upwards over time.
• Cut loss - Protecting my downside or my profit is a must and equivalent to saying "I am wrong or Thanks for the ride up" depending on the situation. In any case, I would rather lose face than lose my capital! The rule #1 of Warren Buffet. I will keep my cut loss level to between 8-10%
• Passive income versus capital gains. I am hoping to strike a balance between investing in stocks for the dividend income and investing in them for pure capital gains.
• Targeted returns - My targeted returns for the portfolio is actually quite simple and straightforward. I hope to achieve portfolio returns of between 5% to 15% annually.
• When to sell ? - I will sell the stocks when they hit the "intrinsic value" or when the valuations become too rich (or if i loses patience)..

Stocks that i missed out from my SRS accounts

I missed a few stocks that i was monitoring closely in December. They are UG Healthcare at 23.5 cents and Chip Eng Seng at 85 cents. No point crying over spill milk. Stocks that are in my watchlist include Nam Chong, CWT and Ezion. These are the stocks that "passed" my FA analysis in late December last year. The thesis should still hold. 

My current portfolio

My current portfolio consist of yield stocks. I will add some fundamentally strong stocks when the time is ripe.

Yield stocks

Keppel DC REIT 15,000 shares at $0.965 (data center REIT which i blogged about)

Keppel REIT 50,000 shares at $1.205 (office sector still the bright spot but this is highly geared and i may rebalance it later)

Cash ~$82,918

Ok so long for now. Happy SRSing.