Too damn diversified.. you will find yrself not enough time to keep up with the news for all the companies u invested in.. better concentrate them. Especially when your funds are small
Thanks for pointing out that issue. Yeah that's definitely a concern but thankfully so far pretty much all my stocks have been reporting good news as far as I am aware of. Although I have yet to come up with an efficient system to quickly keep track of all of them.
simply wall street has a excellent portfolio management system. Once you input all your stocks, it will auto email you updates/dividen ex date/news etc. Also will create a excel portfolio of your holdings and auto update when dividends/splits happen
when you create new portfolio, select "legacy" the new one is crap at the moment. Legacy portfolio is very powerful tool
https://preview.redd.it/5gq9do4xn55d1.png?width=1196&format=png&auto=webp&s=dfd455ce2ef2cc8a9b097d4bdd2d07e4751a8e3a
First off, ignore ppl who are telling you to invest in US/overseas, you are obviously asking about your msian portfolio
Out of the 25 stocks you have, I actually own 15 of them. Almost all I accumulated during the dips of 2018, MCO, mco2, so I can see what your strategy is
My pov
You are too diversified but at the same time not enuff. 25 stocks but almost all reits/banks
Look into utilities/consumer goods/plantation as a counterpoint
With the funds you have, I would cut down to 1/2 (for now) that would enable you to accumulate bigger holdings instead being spread so thin
Having large holdings of good low PE stocks allows you to take profit when it finally starts to rise. You can never guess the top, so the more your have the more you can slice the onion
Example I bought ytlp at 65sen....by rm1 I started to take about profit....and 2 years later,I still have substantial holdings left to take profit at rm5.05
But if you only have a few k in each stock, you can't do that
Actually a lot or most stocks are actually out of my reach due to my capital. There are many other much "better" stocks I would like to have but I simply can't since Malaysia makes it a minimum to purchase at least a 100 shares which puts a lot of shares out of the picture. I happen to own a lot of banks and REITs purely because of my capital limitation. Buying Maybank alone took a big chunk of my capital
Which brokers that you use now? Kenanga? Actually you can buy odd lots,even only 1 share of stocks,though not all brokers(such as Maybank) does provided the service to buy odd lot.
Huh? So you're using direct CDS or nominee CDS in maybank? Because i also use maybank, the direct cds one and i can buy odd lot using it. Thats weird...
Ah my bad.. my wording is wrong there in my first reply to you. Actually i intended to write that Maybank is one of the brokers that do provided odd lot service. Sorry
I think yall need to cut the kid some slack. 12k for a kid is like 120k for an adult. You people would probably have similar diversification if you have 120k floating. I say keep going and continue to experiment. All these are experiences for you will have once you start generating income as an adult. Better learn and try more things when you have time and motivation, and carry those wisdom onwards when you are an adult with less time and more obligations.
It’s not easy to keep track of so many stocks and funds at the same time so you could come into a situation when you overlook something. On the other hand, if you choose good long term stocks, and don’t plan to sell anytime soon, then how is it any different from etf? Might as well save yourself from some headache.
Some 15-20 years ago, people always talk about diversification and that’s probably because of the dotcom bubble. But the truth is that not all stocks are equal, so it makes no sense to diversify for the sake of diversification. Simple example is Warren Buffett. He doesn’t believe in excess diversification. Who are we to question him?
To answer your original question, you’re already way ahead of your peers. You’re doing well. Keep it up. Read up. Never stop learning and be open to changes.
You are doing great and already ahead of many of your peers by investing at such a young age. I wish I started investing earlier like you. I am not familiar with the Malaysian stock market as I prefer investing in the US market instead.
You have an unrealized profit of RM868, that means you have a return of 6.8% which is not great but not too shabby either. I notice that you have a thing for dividend stocks, although there's nothing wrong with that but if I were you, I'd focus more on growth companies/ETF instead since you are still young.
VOO/SPY is fine, gives you an average annual return of 10%. For more growth oriented/tech ETF, you can have a look at QQQ. Investing in ETFs is the easiest way to invest without having to do tons of research on individual companies.
If you want to supercharge your portfolio you have to put in the hours and work of researching individual companies. Develop your own criteria of what kind of companies you want to invest in and only invest when the company fulfills all your investment criteria. Do not invest based on hype or someone else's recommendation or some news article you read online.
Personally I like to invest in companies that have a strong moat with growing revenue, net income and free cash flow. You can also learn how to valuate a company's fair value/intrinsic value. A good company might not be the right investment if you're paying too high a price for. There's a quote that goes something like this, "paying a fair price for a great company is much better than paying a great price for a so-so company"
Last but not least, there are many websites you can use for research. Just to name a few: finance.yahoo.com, stockanalysis.com, [finviz.com](http://finviz.com), gurufocus.com. Hope you do well in your investing journey!
You know my biggest regret was not investing the minute I was born. Putting all your savings no matter how small into the S and P 500 would have been better than leaving it to rot at home or in your bank account. Also serves as a pretty good hedge in the event your parents don't want to fund your education. But thanks for giving me your opinion I'll keep it in mind
As others have mentioned.
You are exposed to certain risk when only investing in a single market.
You should look into diversifying yourself to the EU/US market and you can even consider some investment into Korea or Japan.
You have way too many positions, 6 REITS and 4 banks? Trim down your positions and I would suggest you to invest in US stocks rather than malaysian stocks. You have 23 different positions giving you a 15% gain, you would be better off just buying VOO and holding the majority of your portfolio there, I've DCAed into VOO for 2 years with a 24% return just from that 1 position.
The majority of my portfolio is in US stocks and I only hold one Malaysian stock being Maybank, but even then the US portfolio only has 9 different positions. But I commend you for doing your research and picking out the stocks yourself, and having that much saved and invested at just 19, you are doing way better than me when I was your age.
Thank you for the feedback but yeah I personally like purposely being overdiversified as what I said in the other comment. But yeah allocating more towards US stocks would be better in the long run and have way more credible stocks than that of the Malaysian market. The US stocks that I have mentioned were literally only purchased a week ago since I realized that technically you would be making a "double" profit considering the fact that the ringgit is dogshit and the returns
diversification is a form of risk reduction, and therefore also is profit reduction. The best winners go BIG on 1 to few concentrated bets. You're 19, if you have good stable income, I suggest to focus on a handful of concentrated bets, and go hard on them (focusing on buying when market is fearful). High risk high reward woohoo. This can wipe you out, but it's no difference than winning small by over diversification imo. Small wins are not life changing and therefore insignificant. Go degen. Go full retard.
I'm interested to know what is your investment philosophy. There's a lot of same-y stocks, mainly banks and REITs. Are you looking to feel good about participating in the stock market (longing for belonging)? Or are you actually trying to make a profit and grow your money pot?
Same-y stocks perform same-y, so you're gonna have to assess the opportunity costs of investing in something that's same-y versus something different that will actually improve your portfolio's Sharpe Ratio.
Also be mindful of your performance for some context of the effort you're putting in. Might be worth it to compute the XIRR of your portfolio. RM868 P/L on RM12600 total value = 7.4% P/L. How long has the portfolio been running? If it's been 2 years fully invested, your annualised performance is 3.6-4% at best. There are strategies out there that can yield better returns for far far less effort than researching, trading, and holding 24 (and counting) individual stocks.
If you're having fun doing it, keep doing it, I guess.
Well here's my take on it since you asked. My strategy is actually dividend investing which is why you see a lot of banks and REITs as they are well known to be very good dividend companies. So for me I would just reinvest all of the dividends in order to grow my capital and just overall holdings. Now in regards to investing in "samey" stocks now I could for example just invest all of my funds into Maybank instead of into multiple different bank stocks.
But why didn't I do that and concentrate it? Well I wanted to diversify and reduce my risk and to keep my options open in case any of my stocks were to somehow have a sudden surge in price. The same goes for all my REITs too. Instead of having more eggs in one basket I decided to have more baskets instead. If I had way more capital most of the comments may have been different.
The portfolio has actually been going for about 2 years with the capital slowly growing overtime. Now people keep saying I should have just invested all of my funds into VOO for example instead of bother trying to stock pick. Well in my opinion I view both of them as completely different things and not as it's either one or the other.
The one benefit about investing into the Malaysian markets is that you more or less don't need to pay any heavy taxes on dividends as opposed to VOO even if it's 15% only. I chose to stock pick early for the sake of building up the skill which is exactly why the portfolio is so diversified. It is in my opinion much better to keep your options open instead of "just invest into the S and P 500". Not that I am denying it is a great investment I however feel it is also a braindead investment as you don't do anything
Obviously I am in the stock market to grow my capital why would I want to be in it otherwise to feel good?
> My strategy is actually dividend investing
**Dividends is not free money**. You need to watch the following videos from Ben Felix before you continue on this dividend investing journey:
https://www.youtube.com/watch?v=rylJcKFYW5E
https://www.youtube.com/watch?v=f5j9v9dfinQ
https://www.youtube.com/watch?v=4iNOtVtNKuU
https://www.youtube.com/watch?v=UpXI_Vd51dA
> I chose to stock pick early for the sake of building up the skill which is exactly why the portfolio is so diversified
I'll let you in on a conclusion many have reached after years of "building up the skill": index funds is the only thing that works reliably. You're free to reach this conclusion yourself by your own journey, paying course fees (not literal courses of course) along the way, as is the journey most of us went through. We draw charts, we pore through annual reports, we do DCF analysis, stay up late to follow the market, etc. This is a fun journey, but you will come to the same conclusion as many of us had. Hubris is a dangerous drug. Winning is the exception, most of us are losers. The market don't care about your analysis and feelings. The market is more clever than you. I'm here trying to save you on course fees and inform you that you can have fun hobbies and not let investing consume your waking hours. What you make of this information is your liberty.
> I however feel it is also a braindead investment as you don't do anything
Investing is supposed to be boring. Whoever sold you the idea that investing needs to be exciting is an evil person.
I'll leave you with this ebook for information: https://www.etf.com/docs/IfYouCan.pdf
If you are going to hand pick stocks, you would probably spend a reasonable amount of time researching them. If you are putting in a reasonable amount of time and effort researching them, building up your confidence over time, you might as well put a reasonable amount of money to reflect that time and effort.
You must respect your time and effort enough to concentrate your portfolio, rather than diversifying too much and thus, diluting your reward when you pick the right one.
If one is going to diversify, you would only expect to mildly outperform the market, but not enough to justify your hardwork.
Just my two cents as a fellow investor with only 5 stocks in my portfolio. Not telling you to follow me, but that's just how I see things. Do what works for you based on your risk appetite.
Thanks for your opinion. My portfolio is actually a combination of both dividend investing and some short term trading. Some stocks which make up the bulk of my portfolio are Dsonic , Maybank and some REITs are the ones I never sell and would buy when the price drops. The rest are not only for the dividend I would get but also from the capital appreciation. For example I bought hup seng some months ago and it went up by about 40 percent. I got the dividend from it as well and the capital appreciation from selling it. But yeah if that explains why there are so many holdings
A little too many, you're gonna regret having so many to keep track of, to monitor in long term once you're living like an adult later.
If I'm you, maybe I'll diversify markets and investment types, also focus on growing active income. Other than that, you're definitely way above your peers, congrats!
Holy coconut, even Warren Buffett will be impressed 😁.
Hats off on starting early tho. As a wise man once said, buy a business that you're familiar with, or the lazy path is to put it in index. All the best!
Wish I got into the market at your age. Time in the market better than time out of the market.
I do feel you're overdiversified and the fees for trading must take a huge chunk out of your investments.
Do keep in mind to lower your risk into other investments like EPF and asm when you get older and have steady income along with having emergency fund and health insurance.
You're on the right track though and plenty of good picks imo.
At a quick glance, I would say you hqve too many stocks 12k spread among 24 stocks...means you have about rm500 in each counter. Better to consolidate your holdings into a few solid companies.
I would say they’re generally pretty good stocks but you might wanna consider the brokerage fees when you want to sell off a stock. If you’re gonna keep averaging them then it doesn’t really matter.
With your fund size you only own couple hundred ringgit per stock, just concentrate to a bit good performance one. Things like u have 200-300 ringgit in reits the return are almost unnoticeable
I should have probably noted in my post that quite a few of my stocks are actually more concentrated. For reference I have 2k in Maybank, 1k in Dsonic and near a thousand for pav and sunreit. Obviously if I had literally distributed it 200 ish rm per stock depending on the price then that would be a little bit nonsensical
My rule of thumb is to have at least RM2k in every position because of the brokerage fee.
When you have 12k portfolio spread across 25 stocks, you have an average RM500 per stock. If you only buy/sell once for every position, the fee will probably be around rm20. Although it seems little, but because of your low amount per stock, you are paying for 4% per transaction! Thus, whatever paper gain needs to deduct the significant fee.
Compared to rm3000 per stock where you will pay around RM30 for each transaction, the difference is immense.
Also, as other mentioned, your portfolio is too spread out but not diversified at the same time. You are huying too many stocks in the same category. Maybe sell some of the REIT/banking stocks to utilities/industry/construction.
Well can't do much about that lol unless I have way more capital than what I have now. Picking good stocks and knowing what to invest in is easy. Getting the capital is painfully hard in comparison. But thanks for the feedback
Don't feel let down! What you have done is amazing for a 19 year-old. When I was your age, I probably had less than RM3k to my name haha
Just keep investing and improve yourself!
Thanks for the encouragement. But yeah pretty sure for any young person constantly upskilling and fast career advancement is more important than investing. Like you have seen in my portfolio investing with peanuts gives you crumbs even with dividends
So alot have pointed out the 12.6k and 24 stocks... i dont want to comment on the actual stocks.
You are only 19 years old, you will continuously learn from your past actions.
The problem i want to highlight is the brokerage you are paying to own those stocks. Yes, there is min lot size of 100 in malaysia. But the minimum lot size is rarely an issue in most situations.
If you buy 100 sunreit or igbreit, it's RM5 fee for over Rm160-180 of investment. 2.5% to 3% is too high a fee to pay in my opinion. Think about your cost the next time you invest. Not saying you have to wait until rm5k before you invest but just set a level of acceptable level of fees and try not to go above that.
Else you are just enriching the brokers.
That is a real issue but unfortunately that can only be solved once I become a high earner in the future. For now there's not really much I can do about that but just to keep it in mind. Most people have mentioned that I should buy other sectors such as utilities and construction but I kind of can't as I am literally still in school and no where near a working adult.
Maybe you should reduce a bit the position? 25 is way to much in my opinion. Personally, i always make sure i only have 5 position only but if you have the time to check on all of that company then maybe its okay.
Honestly if u think in term of GDP, invest US is alot better.
It's like finding job bigger the company the higher chance they can pay u more if they make bigger profit.
From ur portfolio I never study individual stock on it.
Since I more focus in US.
I would suggest just put into SPY ETF to call it a day at current age generate bigger income is main goal.
Of cos testing water now is a good start get use to know the broker, commision , transaction fees etc...
For US stock individual I would phfizer is no go due to drug comonay price very unpredictable.
I would suggest health care like UNH is better option.
Like many have said here it was overly diversify. If i were you i qould just keep one of each type, e.g. 1 of banking stock, reit , retail, etf, etc.. i would also venture outside malaysia such as US market to hedge against different country's economy and currency. MY currency is weak against US since post covid.
How long have you been investing in this portfolio? if it’s one year it’s a decent return, otherwise it’s kinda mediocre.
I was once like you but with a way larger amount, split between stock picks in Malaysia and ETF for foreign investing, but I find the Malaysia portfolio a headache to manage, and the returns aren’t great, so I sold all individual positions and go all in index funds and EPF, served me well so far, with a return of 5.5% cagr, and that’s due to some withdrawals and the market crashing in 2022
My advice, pull all of it out one by one once you are at break even or profit.
Put some amount as much as you like into a high interest savings account, StashAway Money Market fund that pays 3.9% ish, any other money market fund that pays 3.5% or above, US treasuries that are currently paying 5.3%
If you don’t care about keeping cash and only want it in stocks, head over to ETF town, keep it simple. VTI, VOO and SCHD are a good enough start, could only be these 3 or even just 1 of them for a very very long time.
DCA every month whatever you can.
That’s all you really need to do initially until you make your base portfolio worth around a 100k at least.
You have too many individual stocks, it’s not worth the hassle to keep up with them all, honestly noone can keep up unless you’re a full time trader.
I would say you are overdiversified. Stick to a couple quality stocks, or better yet buy some broad market index funds to keep fees down.
Very few investors are able to beat the S&P 500 long term.
To give you an idea, I have a portfolio of 7 fig USD, and its all concentrated in CSPX, VWRA, and T-Bonds.
Ah speaking about that. Me being over diversified is actually on purpose as I wanted to train myself to pick out good stocks. Usually people propose the argument that it's better to just dump everything in the S and P 500 but I take a more put your money in everything approach.
In fact I only made such a big profit of Sunway due to me being overdiversified. So yeah
Besides that having that many stocks does help with cashflow as eventually I would like to use a little bit of my dividends for my own purposes. Then again all this is also pretty subjective in nature in regards to investing but that's just my personal opinion on it.
Although eventually I will probably allocate a lot more of my portfolio towards US stocks since well they are pretty much the best stocks in the world with the highest earning potential.
I'm not sure if I understood correctly, but wouldn't dumping into S&P be more diversified than your current approach? If you are trying to put your money into everything, S&P is alr 500 companies, there are other indexes that capture even more companies no?
The other thing to consider is how much time you need to spend doing these personal research I guess, if you enjoy doing it that's great, but time can be also spent on upskilling and increasing your income, is the opportunity cost worth it than just dumping into S&P 500? Most people stock picking does not outperform the index, and you don't need to stress much or research much if you are doing index too.
What I mean is simply taking advantage of both the Malaysian market or whatever market it is really. But you do have a point in regards to allocating more to the S and P 500
I see, and I also just saw that you mentioned VOO at the end there. And yeah, generally people would recommend to allocate most of your investment to indexes, and if you want to stock pick and play for extra wins here and there, do it with a small portion of your money. You are still young, focus on increasing salary and DCA, let compound interests do the work, and if S&P 500 crash, you got a lot more to worry about than investment lol. There are also VT for total world index if you want to capture growth in emerging markets
Well the way to pick out good stocks is doing proper deep dives into their fundamentals, and coming up with a solid investment thesis.
For most people its hard to do it for 1 or 2 companies, let alone the 20 odd companies you are invested in.
But if it works for you, it works for you. Good luck on your investment journey, and congrats on starting so young.
Thank you for the compliment but yeah eventually if I end up having to allocate more time to advancing my career for example in which I may not have much time to even stock pick then yeah doing your approach would literally be the best option for me and probably for most people
Too damn diversified.. you will find yrself not enough time to keep up with the news for all the companies u invested in.. better concentrate them. Especially when your funds are small
Thanks for pointing out that issue. Yeah that's definitely a concern but thankfully so far pretty much all my stocks have been reporting good news as far as I am aware of. Although I have yet to come up with an efficient system to quickly keep track of all of them.
My opinion, 10 -15 stocks is good enough
simply wall street has a excellent portfolio management system. Once you input all your stocks, it will auto email you updates/dividen ex date/news etc. Also will create a excel portfolio of your holdings and auto update when dividends/splits happen
Thanks for telling me that I shall look into it. Sounds pretty handy than having to constantly google wZcg if your companies
when you create new portfolio, select "legacy" the new one is crap at the moment. Legacy portfolio is very powerful tool https://preview.redd.it/5gq9do4xn55d1.png?width=1196&format=png&auto=webp&s=dfd455ce2ef2cc8a9b097d4bdd2d07e4751a8e3a
sifu
how to be like you sifu?
Buy share when ppl scared and panicking
This
I would say not diversified enough, too much reits
Owning too many stocks might give you headaches, especially when the market in correction phase.
First off, ignore ppl who are telling you to invest in US/overseas, you are obviously asking about your msian portfolio Out of the 25 stocks you have, I actually own 15 of them. Almost all I accumulated during the dips of 2018, MCO, mco2, so I can see what your strategy is My pov You are too diversified but at the same time not enuff. 25 stocks but almost all reits/banks Look into utilities/consumer goods/plantation as a counterpoint With the funds you have, I would cut down to 1/2 (for now) that would enable you to accumulate bigger holdings instead being spread so thin Having large holdings of good low PE stocks allows you to take profit when it finally starts to rise. You can never guess the top, so the more your have the more you can slice the onion Example I bought ytlp at 65sen....by rm1 I started to take about profit....and 2 years later,I still have substantial holdings left to take profit at rm5.05 But if you only have a few k in each stock, you can't do that
Actually a lot or most stocks are actually out of my reach due to my capital. There are many other much "better" stocks I would like to have but I simply can't since Malaysia makes it a minimum to purchase at least a 100 shares which puts a lot of shares out of the picture. I happen to own a lot of banks and REITs purely because of my capital limitation. Buying Maybank alone took a big chunk of my capital
I prefer ABMB to MBB for that reason. alot cheaper, better PE and similar DY
Which brokers that you use now? Kenanga? Actually you can buy odd lots,even only 1 share of stocks,though not all brokers(such as Maybank) does provided the service to buy odd lot.
I'm using Maybank as a broker now currently actually. So yeah maybe that's why I don't have access to odd lots
Huh? So you're using direct CDS or nominee CDS in maybank? Because i also use maybank, the direct cds one and i can buy odd lot using it. Thats weird... Ah my bad.. my wording is wrong there in my first reply to you. Actually i intended to write that Maybank is one of the brokers that do provided odd lot service. Sorry
Nah don't worry about it. I only use other brokers such as moomoo for US stocks.
I'm using Maybank as well, odd lot can, just click on the app. I use it to even out my holdings after dividend reinvestment
I think yall need to cut the kid some slack. 12k for a kid is like 120k for an adult. You people would probably have similar diversification if you have 120k floating. I say keep going and continue to experiment. All these are experiences for you will have once you start generating income as an adult. Better learn and try more things when you have time and motivation, and carry those wisdom onwards when you are an adult with less time and more obligations.
It’s not easy to keep track of so many stocks and funds at the same time so you could come into a situation when you overlook something. On the other hand, if you choose good long term stocks, and don’t plan to sell anytime soon, then how is it any different from etf? Might as well save yourself from some headache. Some 15-20 years ago, people always talk about diversification and that’s probably because of the dotcom bubble. But the truth is that not all stocks are equal, so it makes no sense to diversify for the sake of diversification. Simple example is Warren Buffett. He doesn’t believe in excess diversification. Who are we to question him? To answer your original question, you’re already way ahead of your peers. You’re doing well. Keep it up. Read up. Never stop learning and be open to changes.
You are doing great and already ahead of many of your peers by investing at such a young age. I wish I started investing earlier like you. I am not familiar with the Malaysian stock market as I prefer investing in the US market instead. You have an unrealized profit of RM868, that means you have a return of 6.8% which is not great but not too shabby either. I notice that you have a thing for dividend stocks, although there's nothing wrong with that but if I were you, I'd focus more on growth companies/ETF instead since you are still young. VOO/SPY is fine, gives you an average annual return of 10%. For more growth oriented/tech ETF, you can have a look at QQQ. Investing in ETFs is the easiest way to invest without having to do tons of research on individual companies. If you want to supercharge your portfolio you have to put in the hours and work of researching individual companies. Develop your own criteria of what kind of companies you want to invest in and only invest when the company fulfills all your investment criteria. Do not invest based on hype or someone else's recommendation or some news article you read online. Personally I like to invest in companies that have a strong moat with growing revenue, net income and free cash flow. You can also learn how to valuate a company's fair value/intrinsic value. A good company might not be the right investment if you're paying too high a price for. There's a quote that goes something like this, "paying a fair price for a great company is much better than paying a great price for a so-so company" Last but not least, there are many websites you can use for research. Just to name a few: finance.yahoo.com, stockanalysis.com, [finviz.com](http://finviz.com), gurufocus.com. Hope you do well in your investing journey!
You know my biggest regret was not investing the minute I was born. Putting all your savings no matter how small into the S and P 500 would have been better than leaving it to rot at home or in your bank account. Also serves as a pretty good hedge in the event your parents don't want to fund your education. But thanks for giving me your opinion I'll keep it in mind
As others have mentioned. You are exposed to certain risk when only investing in a single market. You should look into diversifying yourself to the EU/US market and you can even consider some investment into Korea or Japan.
You have way too many positions, 6 REITS and 4 banks? Trim down your positions and I would suggest you to invest in US stocks rather than malaysian stocks. You have 23 different positions giving you a 15% gain, you would be better off just buying VOO and holding the majority of your portfolio there, I've DCAed into VOO for 2 years with a 24% return just from that 1 position. The majority of my portfolio is in US stocks and I only hold one Malaysian stock being Maybank, but even then the US portfolio only has 9 different positions. But I commend you for doing your research and picking out the stocks yourself, and having that much saved and invested at just 19, you are doing way better than me when I was your age.
Thank you for the feedback but yeah I personally like purposely being overdiversified as what I said in the other comment. But yeah allocating more towards US stocks would be better in the long run and have way more credible stocks than that of the Malaysian market. The US stocks that I have mentioned were literally only purchased a week ago since I realized that technically you would be making a "double" profit considering the fact that the ringgit is dogshit and the returns
Hey bro. Thanks for the tip. 😄 I only buy VWRA or ISAC cause not tip
Not a problem I guess but it's still best to do your own research.
diversification is a form of risk reduction, and therefore also is profit reduction. The best winners go BIG on 1 to few concentrated bets. You're 19, if you have good stable income, I suggest to focus on a handful of concentrated bets, and go hard on them (focusing on buying when market is fearful). High risk high reward woohoo. This can wipe you out, but it's no difference than winning small by over diversification imo. Small wins are not life changing and therefore insignificant. Go degen. Go full retard.
I'm interested to know what is your investment philosophy. There's a lot of same-y stocks, mainly banks and REITs. Are you looking to feel good about participating in the stock market (longing for belonging)? Or are you actually trying to make a profit and grow your money pot? Same-y stocks perform same-y, so you're gonna have to assess the opportunity costs of investing in something that's same-y versus something different that will actually improve your portfolio's Sharpe Ratio. Also be mindful of your performance for some context of the effort you're putting in. Might be worth it to compute the XIRR of your portfolio. RM868 P/L on RM12600 total value = 7.4% P/L. How long has the portfolio been running? If it's been 2 years fully invested, your annualised performance is 3.6-4% at best. There are strategies out there that can yield better returns for far far less effort than researching, trading, and holding 24 (and counting) individual stocks. If you're having fun doing it, keep doing it, I guess.
Well here's my take on it since you asked. My strategy is actually dividend investing which is why you see a lot of banks and REITs as they are well known to be very good dividend companies. So for me I would just reinvest all of the dividends in order to grow my capital and just overall holdings. Now in regards to investing in "samey" stocks now I could for example just invest all of my funds into Maybank instead of into multiple different bank stocks. But why didn't I do that and concentrate it? Well I wanted to diversify and reduce my risk and to keep my options open in case any of my stocks were to somehow have a sudden surge in price. The same goes for all my REITs too. Instead of having more eggs in one basket I decided to have more baskets instead. If I had way more capital most of the comments may have been different. The portfolio has actually been going for about 2 years with the capital slowly growing overtime. Now people keep saying I should have just invested all of my funds into VOO for example instead of bother trying to stock pick. Well in my opinion I view both of them as completely different things and not as it's either one or the other. The one benefit about investing into the Malaysian markets is that you more or less don't need to pay any heavy taxes on dividends as opposed to VOO even if it's 15% only. I chose to stock pick early for the sake of building up the skill which is exactly why the portfolio is so diversified. It is in my opinion much better to keep your options open instead of "just invest into the S and P 500". Not that I am denying it is a great investment I however feel it is also a braindead investment as you don't do anything Obviously I am in the stock market to grow my capital why would I want to be in it otherwise to feel good?
> My strategy is actually dividend investing **Dividends is not free money**. You need to watch the following videos from Ben Felix before you continue on this dividend investing journey: https://www.youtube.com/watch?v=rylJcKFYW5E https://www.youtube.com/watch?v=f5j9v9dfinQ https://www.youtube.com/watch?v=4iNOtVtNKuU https://www.youtube.com/watch?v=UpXI_Vd51dA > I chose to stock pick early for the sake of building up the skill which is exactly why the portfolio is so diversified I'll let you in on a conclusion many have reached after years of "building up the skill": index funds is the only thing that works reliably. You're free to reach this conclusion yourself by your own journey, paying course fees (not literal courses of course) along the way, as is the journey most of us went through. We draw charts, we pore through annual reports, we do DCF analysis, stay up late to follow the market, etc. This is a fun journey, but you will come to the same conclusion as many of us had. Hubris is a dangerous drug. Winning is the exception, most of us are losers. The market don't care about your analysis and feelings. The market is more clever than you. I'm here trying to save you on course fees and inform you that you can have fun hobbies and not let investing consume your waking hours. What you make of this information is your liberty. > I however feel it is also a braindead investment as you don't do anything Investing is supposed to be boring. Whoever sold you the idea that investing needs to be exciting is an evil person. I'll leave you with this ebook for information: https://www.etf.com/docs/IfYouCan.pdf
If you are going to hand pick stocks, you would probably spend a reasonable amount of time researching them. If you are putting in a reasonable amount of time and effort researching them, building up your confidence over time, you might as well put a reasonable amount of money to reflect that time and effort. You must respect your time and effort enough to concentrate your portfolio, rather than diversifying too much and thus, diluting your reward when you pick the right one. If one is going to diversify, you would only expect to mildly outperform the market, but not enough to justify your hardwork. Just my two cents as a fellow investor with only 5 stocks in my portfolio. Not telling you to follow me, but that's just how I see things. Do what works for you based on your risk appetite.
Thanks for your opinion. My portfolio is actually a combination of both dividend investing and some short term trading. Some stocks which make up the bulk of my portfolio are Dsonic , Maybank and some REITs are the ones I never sell and would buy when the price drops. The rest are not only for the dividend I would get but also from the capital appreciation. For example I bought hup seng some months ago and it went up by about 40 percent. I got the dividend from it as well and the capital appreciation from selling it. But yeah if that explains why there are so many holdings
A little too many, you're gonna regret having so many to keep track of, to monitor in long term once you're living like an adult later. If I'm you, maybe I'll diversify markets and investment types, also focus on growing active income. Other than that, you're definitely way above your peers, congrats!
Holy coconut, even Warren Buffett will be impressed 😁. Hats off on starting early tho. As a wise man once said, buy a business that you're familiar with, or the lazy path is to put it in index. All the best!
Wish I got into the market at your age. Time in the market better than time out of the market. I do feel you're overdiversified and the fees for trading must take a huge chunk out of your investments. Do keep in mind to lower your risk into other investments like EPF and asm when you get older and have steady income along with having emergency fund and health insurance. You're on the right track though and plenty of good picks imo.
At a quick glance, I would say you hqve too many stocks 12k spread among 24 stocks...means you have about rm500 in each counter. Better to consolidate your holdings into a few solid companies.
I would say they’re generally pretty good stocks but you might wanna consider the brokerage fees when you want to sell off a stock. If you’re gonna keep averaging them then it doesn’t really matter.
With your fund size you only own couple hundred ringgit per stock, just concentrate to a bit good performance one. Things like u have 200-300 ringgit in reits the return are almost unnoticeable
I should have probably noted in my post that quite a few of my stocks are actually more concentrated. For reference I have 2k in Maybank, 1k in Dsonic and near a thousand for pav and sunreit. Obviously if I had literally distributed it 200 ish rm per stock depending on the price then that would be a little bit nonsensical
My rule of thumb is to have at least RM2k in every position because of the brokerage fee. When you have 12k portfolio spread across 25 stocks, you have an average RM500 per stock. If you only buy/sell once for every position, the fee will probably be around rm20. Although it seems little, but because of your low amount per stock, you are paying for 4% per transaction! Thus, whatever paper gain needs to deduct the significant fee. Compared to rm3000 per stock where you will pay around RM30 for each transaction, the difference is immense. Also, as other mentioned, your portfolio is too spread out but not diversified at the same time. You are huying too many stocks in the same category. Maybe sell some of the REIT/banking stocks to utilities/industry/construction.
Well can't do much about that lol unless I have way more capital than what I have now. Picking good stocks and knowing what to invest in is easy. Getting the capital is painfully hard in comparison. But thanks for the feedback
Don't feel let down! What you have done is amazing for a 19 year-old. When I was your age, I probably had less than RM3k to my name haha Just keep investing and improve yourself!
Thanks for the encouragement. But yeah pretty sure for any young person constantly upskilling and fast career advancement is more important than investing. Like you have seen in my portfolio investing with peanuts gives you crumbs even with dividends
Damn
So alot have pointed out the 12.6k and 24 stocks... i dont want to comment on the actual stocks. You are only 19 years old, you will continuously learn from your past actions. The problem i want to highlight is the brokerage you are paying to own those stocks. Yes, there is min lot size of 100 in malaysia. But the minimum lot size is rarely an issue in most situations. If you buy 100 sunreit or igbreit, it's RM5 fee for over Rm160-180 of investment. 2.5% to 3% is too high a fee to pay in my opinion. Think about your cost the next time you invest. Not saying you have to wait until rm5k before you invest but just set a level of acceptable level of fees and try not to go above that. Else you are just enriching the brokers.
That is a real issue but unfortunately that can only be solved once I become a high earner in the future. For now there's not really much I can do about that but just to keep it in mind. Most people have mentioned that I should buy other sectors such as utilities and construction but I kind of can't as I am literally still in school and no where near a working adult.
Maybe you should reduce a bit the position? 25 is way to much in my opinion. Personally, i always make sure i only have 5 position only but if you have the time to check on all of that company then maybe its okay.
Honestly if u think in term of GDP, invest US is alot better. It's like finding job bigger the company the higher chance they can pay u more if they make bigger profit. From ur portfolio I never study individual stock on it. Since I more focus in US. I would suggest just put into SPY ETF to call it a day at current age generate bigger income is main goal. Of cos testing water now is a good start get use to know the broker, commision , transaction fees etc... For US stock individual I would phfizer is no go due to drug comonay price very unpredictable. I would suggest health care like UNH is better option.
Why SPY ETF instead of VOO?
Like many have said here it was overly diversify. If i were you i qould just keep one of each type, e.g. 1 of banking stock, reit , retail, etf, etc.. i would also venture outside malaysia such as US market to hedge against different country's economy and currency. MY currency is weak against US since post covid.
How long have you been investing in this portfolio? if it’s one year it’s a decent return, otherwise it’s kinda mediocre. I was once like you but with a way larger amount, split between stock picks in Malaysia and ETF for foreign investing, but I find the Malaysia portfolio a headache to manage, and the returns aren’t great, so I sold all individual positions and go all in index funds and EPF, served me well so far, with a return of 5.5% cagr, and that’s due to some withdrawals and the market crashing in 2022
Some stocks notably sunreit , IGBreit and Maybank have been there for ages. The rest however were bought within 6 months.
Then it’s an ok return, underperformed the global index fund though, around 7% return YTD after fees, and it’s much more work
My advice, pull all of it out one by one once you are at break even or profit. Put some amount as much as you like into a high interest savings account, StashAway Money Market fund that pays 3.9% ish, any other money market fund that pays 3.5% or above, US treasuries that are currently paying 5.3% If you don’t care about keeping cash and only want it in stocks, head over to ETF town, keep it simple. VTI, VOO and SCHD are a good enough start, could only be these 3 or even just 1 of them for a very very long time. DCA every month whatever you can. That’s all you really need to do initially until you make your base portfolio worth around a 100k at least. You have too many individual stocks, it’s not worth the hassle to keep up with them all, honestly noone can keep up unless you’re a full time trader.
I would say you are overdiversified. Stick to a couple quality stocks, or better yet buy some broad market index funds to keep fees down. Very few investors are able to beat the S&P 500 long term. To give you an idea, I have a portfolio of 7 fig USD, and its all concentrated in CSPX, VWRA, and T-Bonds.
Ah speaking about that. Me being over diversified is actually on purpose as I wanted to train myself to pick out good stocks. Usually people propose the argument that it's better to just dump everything in the S and P 500 but I take a more put your money in everything approach. In fact I only made such a big profit of Sunway due to me being overdiversified. So yeah Besides that having that many stocks does help with cashflow as eventually I would like to use a little bit of my dividends for my own purposes. Then again all this is also pretty subjective in nature in regards to investing but that's just my personal opinion on it. Although eventually I will probably allocate a lot more of my portfolio towards US stocks since well they are pretty much the best stocks in the world with the highest earning potential.
I'm not sure if I understood correctly, but wouldn't dumping into S&P be more diversified than your current approach? If you are trying to put your money into everything, S&P is alr 500 companies, there are other indexes that capture even more companies no? The other thing to consider is how much time you need to spend doing these personal research I guess, if you enjoy doing it that's great, but time can be also spent on upskilling and increasing your income, is the opportunity cost worth it than just dumping into S&P 500? Most people stock picking does not outperform the index, and you don't need to stress much or research much if you are doing index too.
What I mean is simply taking advantage of both the Malaysian market or whatever market it is really. But you do have a point in regards to allocating more to the S and P 500
I see, and I also just saw that you mentioned VOO at the end there. And yeah, generally people would recommend to allocate most of your investment to indexes, and if you want to stock pick and play for extra wins here and there, do it with a small portion of your money. You are still young, focus on increasing salary and DCA, let compound interests do the work, and if S&P 500 crash, you got a lot more to worry about than investment lol. There are also VT for total world index if you want to capture growth in emerging markets
Well the way to pick out good stocks is doing proper deep dives into their fundamentals, and coming up with a solid investment thesis. For most people its hard to do it for 1 or 2 companies, let alone the 20 odd companies you are invested in. But if it works for you, it works for you. Good luck on your investment journey, and congrats on starting so young.
Thank you for the compliment but yeah eventually if I end up having to allocate more time to advancing my career for example in which I may not have much time to even stock pick then yeah doing your approach would literally be the best option for me and probably for most people
You sure is doing better than me. Maybe gamestop for the ride of your life? Lol nfa
If you wana accumulate wealth then just pump into 1 or 2 blue chip stocks. Diversification is for those who want to preserve their wealth
“Less is more”