2018 - Focus

2017....

My portfolio return for 2017 only achieved 11.2% , yes I missed my 2017 target of 15% return. Though at one stage it exceeded 20% return but the not so encouraging 3rd quarter results of some companies in my portfolio have almost halved it. :(  In the mean time, I have raised my cash level to more than 50% over the last 3 months.

All of us have different forecast and expectation on how equity market will be in 2018 while some believe in staying fully invested. For 2016 & 2017, my approach has been such that whenever I find a good company that looks undervalued based on my own valuation, I will take position and sell it when it get close to its fair value. Yes, sometimes sold too early or bought too early...well, I believe I am not alone here.

So, I am planning to take a different approach in 2018. Unless and until I see a really deep in value company, I will not take position so easily for the remaining 50% cash reserve. I know many will not agree with me on this and most super investors opined that one should not time the market because no one has done that right all the time, though some may have done it right once or twice. There will be opportunity cost involved if the market performs totally opposite of what I expected. I want to be "speculator" in 2018, speculating on the market dip for deep value buy. My stock selection criteria remains the same, only good company that appears undervalued..no speculation on company's fundamental. I am not sure if I can stand this real test of my patience by not doing anything with idle cash earning low returns from FD..  :)

Whatever your approach or strategy  is in 2018, I wish all of us achieve what we target.
Happy New Year !

2018--->