Screenshot 2019-11-06 at 10.54.37 PM

Last week, I subscribed to a new service by Motley Fools named Rising Stars 2020. The idea is to buy at least 25 good US small-cap and micro-cap companies, in hope that a handful of them will drive the overall return of this portfolio in long term. A ballpark  figure is doubling the return every 5 years which translates to CAGR of 15%.

Since I am in the process of resetting my portfolio from 2020,  I decided to give this a try. However, as this is riskier to me, I will limit it to 10% of my portfolio. As I am paying for the services, I do not intend to do much research and am likely to just follow their recommendations. Also, since each company is going to take up such a small position in my portfolio, I will not track their performance individually in my portfolio. Instead, I will take it that I am investing in a “US micro-cap fund” and track the overall performance of this “fund”.

Having no intention to put in any more money for investment this year, I sold the following counters to raise some cash for this project.

  • Tencent at HK$321, taking a loss of 16.5%. I still think that the long term prospect of this giant is good. However, I decided that besides Singapore market, I would only deal with the US market for at least the next few years.  This will make tracking less tedious as I only have to work with one exchange rate.
  • Nvidia at US$203, for a profit of 11.5%. Bought at the end of last year when it plunged and finally recovered recently. It was a punt that turns out well.
  • Texas Roadhouse at US$58.0, for  a profit of 2.0% (including dividend).  I just like this counter less than the other counters that I am holding.