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2800 or individual shares?

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  1. #11

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    Quote Originally Posted by pin
    I bought 700 low, thinking of selling high!

    2888 is another story altogether and is more of a cut losses situation.
    Your post made it seem like you're really happy with 700 and inclined to hold it, since it went up, and unhappy with 2888 and inclined to sell it since it went down. All you need to do is sell your loser (2888) and put the money in your winner (700) and this is exactly buy high, sell low.

    Human psychology is extremely poorly equipped to deal with investing. If you start making active investment choices you can fall into many traps. This is why 95% of actively managed funds underperform the index, and those are the 'professionals'
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  2. #12

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    Quote Originally Posted by cendrillon
    Your post made it seem like you're really happy with 700 and inclined to hold it, since it went up, and unhappy with 2888 and inclined to sell it since it went down. All you need to do is sell your loser (2888) and put the money in your winner (700) and this is exactly buy high, sell low.

    Human psychology is extremely poorly equipped to deal with investing. If you start making active investment choices you can fall into many traps. This is why 95% of actively managed funds underperform the index, and those are the 'professionals'
    Lol, I said "I may sell off a bit of Tencent though." But yes, I agree this chopping and changing isn't going to help me "grow" my wealth.
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  3. #13

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    Quote Originally Posted by pin
    Lol, I said "I may sell off a bit of Tencent though." But yes, I agree this chopping and changing isn't going to help me "grow" my wealth.
    I think as humans we are pack animals. It was useful when we lived in the jungle because being in the middle of the pack helped us to survive and as the descendents of those who survived it's now programmed into us. The problem is that those instincts are exactly the opposite of what you should do when investing.

    Buffett said something quite profound on this

    I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy
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  4. #14

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    Quote Originally Posted by shri
    Hasn't the bulk of the 2800 performance come from less than 10 shares?
    Yes. The top 10 make up 60% of the index. And is almost entirely China exposure.

    This bucket of lose stocks seems at odds with the overall strategy of tracking global indices. What are you trying to get out of it, as in what is its purpose ?

    * edit: I'm not saying these are bad stocks. I own several and in big size. Just asking what they are designed to add to the overall initial strategy.
    Last edited by jrkob; 12-09-2017 at 05:31 PM.

  5. #15

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    Quote Originally Posted by jrkob
    Yes. The top 10 make up 60% of the index. And is almost entirely China exposure.
    JR I understand your concern about not getting enough diversification with HSI but in terms of risk somehow I find holding HSI at a PE ratio of 15 more comforting than S&P 500 at 25. What are your thoughts on this?
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  6. #16

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    Quote Originally Posted by jrkob
    Yes. The top 10 make up 60% of the index. And is almost entirely China exposure.

    This bucket of lose stocks seems at odds with the overall strategy of tracking global indices. What are you trying to get out of it, as in what is its purpose ?

    * edit: I'm not saying these are bad stocks. I own several and in big size. Just asking what they are designed to add to the overall initial strategy.
    To clarify, these are stocks I have owned and have done so for quite some time (some of them going back several years), so not really initial. As you all know I'm re-evaluating many things and one of these things is should I hold on to these or sell them.

  7. #17

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    Quote Originally Posted by pin
    Point taken, however a lot of worldwide ETFs will include Hong Kong as part of their developed market. But like I said, I'm still deciding how to structure things. And yes the above are all good dividend paying shares.
    Many of those worldwide ETFs might have high correlation with Tracker and probably not getting benefit of those little individual gems you already have for long time! (jrkob probably explained somewhere the problem with developing/emerging market ETFs is not only about liquidity/market makers but the way those indices are constructed)..
    Besides, not sure how true is the golden rule of 'keep major chunk of your money where your mouth is', never discussed in detail..

  8. #18

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    Quote Originally Posted by nivantj
    Besides, not sure how true is the golden rule of 'keep major chunk of your money where your mouth is', never discussed in detail..
    I've been thinking about this quite a bit lately. As you said conventional wisdom is to put about half of your stocks in the index of the country where you live and the other half in an international index. The point being that your cost of living is highly correlated with the economy (and in theory the stock market) of the country you live in.

    I buy into this to a point. If the HSI takes a big drop bankers aren't getting huge bonuses, Chinese investors aren't as flush with cash and so on.

    However since I own the property I live in that cost is already hedged out. I'm also a pretty frugal so my other major costs are food and clothing, who's prices are probably more correlated with the cost of oil than the HSI.

    With all that said the HSI seems much better priced in terms of PE ratio than the S&P 500 and the tax situation with dividends is much better as well.

    What's your approach @nivantj?
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  9. #19

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    Quote Originally Posted by cendrillon
    You realise what you're describing is a buy high, sell low strategy right?
    Or a running your winners strategy.

  10. #20

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    Quote Originally Posted by TheBrit
    Or a running your winners strategy.
    Has anyone actually backtested this 'strategy' to see how it performs historically in terms of risk normalised return?

    My guess is people do this kind of stuff because it sounds good not because there's any principled study behind it.

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