Ever-ready Shopping List

It is very common for most regular shoppers to write down what they would like to buy, especially during special sale. Are you doing this as well? When you write down a list of items to buy, did you put the price and quantity as well? Have you bought something during a sale which may not be on your list but merely because it appears cheap? Worst, you have bought something during a sale and realised later that it is of no use or things you hardly use.
Well, I usually don't prepare a shopping list in advance as I do not buy many items even during sale. Hence, I could remember very well what I need and at what price. In stock market, however, the scenario is slightly different, when the market appears to have a big sale, most people are rushing to the exit instead of jumping in to get the best sale.
In the last few years, I often prepare a list of 5 to 10 companies that I wish to include in my portfolio (with expected quantity & price) and I will start buying when the price is right. To me, here are the benefits of having this list:-
1) a pre-allocation sum to each stock to avoid over/under allocation on a particular stock/industry.
2) to avoid buying any company that is not on my list but appears cheap due to sharp drop. Yes, many years ago, I had bought companies that I have not thought of buying but because the price has dropped so much suddenly, I bought them based on instinct and greed that it will rebound faster. When the price fell further, I felt uneasy as I did not perform any analysis on the company and not sure what I was getting into. I have ended cutting loss in few cases.
3)  I can stay focus with what I have been waiting for and not let my emotion and fear stopping me to a great buying opportunity. Of course some may suggest just buy blue chips during big sale, yes, it may be a simple strategy - but still, there are so many of them and what price is deemed attractive? Will you buy Nestle if it drops from Rm80 to Rm60?? Or is it better to look at small cap stock like RCE Capital with very attractive metrics?


I don't know when the buying opportunity will come, but the more important question is - when it comes, am I ready to push myself to enter when most people is rushing to exit the same door? Having this shopping list helps me to stay focus on where and what to look for when there is fire sale. Of course, most important of all - the fund must be ready too!