Market continues to stay nervous and volatile from external factors. My portfolio continues to stay in the red, ranging from -8% to -13% over the past month. I expect it to go down even further in the coming weeks due to Russia-Ukraine tension. Based on past plan, I should have used another portion of my opportunity fund this or next week. However, as I am exploring the possibility of giving up my regular pay check some time next year, I decided to preserve my cash for the moment.
Most companies have reported their latest quarter results. Too lazy to write about them individually, especially when I have 57 counters! In general, I am satisfied with what was reported so far. Nervy Mr Market has punished counters that did not meet their expectation or those who gave lower guidance. However, to me the numbers reported look good as the companies are growing their revenue and/or free cashflow at a good rate. If they can continue to grow at the guided rate for the next 2 to 3 years, then I am sure the price will then go up again.
The current turmoil shows how diversification has worked for me and how starting with a small position in counters that I am not as familiar or confident with has helped to reduce the damage. I will illustrate this with two images.
The first image shows the average performance of my top 27 counters by position (85% of portfolio) since I first bought them. As seen from the number, they have done reasonably well despite the current blood shed. With NFLX and SHOP being whacked recently, they have registered double digits loss. However their impact on the portfolio is limited. On a side note, my conviction on SHOP is still high and will continue to hold on to my stake.
The next image is not as pleasing to the eyes. These are counters which I think they have good potential but am still unfamiliar with them or lower conviction. So I only started with a very small position with each of them and that have reduced the damage. I am still hopeful of some of them but if I need to raise cash, some of these might have to go.
Finally, I am currently planning to hold on to all counters for the moment. Depending on the outcome of my intention next year, I might shave some fats from my portfolio towards the end of the year or next year.