My investing journey for 2017 has come to
a close and I have hit my target of making at least 30% CAGR. I have had more
winning bets than losing ones.
My solid bets in 2017 were / have been:
- AEM (made 174.8%, profit mostly realised)
- 800 Super (up 131.9%, profit mostly realised)
- Avi-Tech (up 72.3%, about half realised)
- Ezion W200424 (made 68.7% in 5 months)
- China Vast (6166.HK) (a paper gain of 49.8% in 5 and a half months)
- Get Nice Holdings (64.HK) (made 22% in one and a half years)
- HS H ETF (2828.HK) (a paper gain of 21.9% within 14 months)
- China Starch (3838.HK) (a paper gain of 18.7% within 4 months)
- Japfa (made 17.5% within a month)
- Hanwell (made 16.9% within 2 weeks)
- Noble (made 10.6% within 3 days)
There are valuable lessons to be learnt
for me to keep improving. The two important ones are:
Lesson 1: Have more patience to keep my multi-baggers
It can be easy to spot a multi-bagger but it is difficult to hold it all the way till it reaches almost its peak so as to clinch the greatest profit possible. It definitely calls for skills, knowledge, gumption and patience. AEM is one such stock as it has surged about 5.4 times (or an ROI of 440%), including the one-for-two bonus issue but excluding dividend, after I started my first purchase in January 2017. I divest the bulk of my position and at the close of 2017, made an ROI of only 174.8%, which, on hindsight, could have been much better if I have had just more patience to keep it before its earnings performance starts to deteriorate.
Lesson 2: Improve on speed in spotting growth stocks
This is the area that I have been trying to
improve so that I could have better diversification and that I will not miss
the chance to buy growth stocks at more attractive prices. I believe I have
some good results and improvement with my hard work, skills and knowledge
gleaned over the years.
Most of the time, the investing journey
is rather monotonous. But there is no short-cut other than working hard and
adopting all the effective knowledge and skills so as to beat the rest of the market
participants in this cruel arena.
Albert Einstein: “Compound
interest is the eighth wonder of the world. He who understands it,
earns it … he who doesn't … pays it.”
It thus makes more sense for me to make my money work hard for me and only when I meet my ROI target will I enjoy this journey.
It thus makes more sense for me to make my money work hard for me and only when I meet my ROI target will I enjoy this journey.
I have also formulated my new strategies
for 2018.
Strategy 1: Apply my new win-big-lose-small method
The December’s vacation has given me a
clear mind to come up with a new method to increase the probability of buying
win-big-lose-small stocks. From my back testing of this method, it should bring
my ROI to be around 50 percent. Let’s see.
Strategy 2: Increase my war chest
To me, the war chest has to be more than just money reserved for emergency. It has to include lots of spare cash to take advantage of extreme pessimism in the market when others are fearful. The second half of 2018 is probably the time for my war chest to be lucratively deployed.
Strategy 3: Get ready to short-sell some euphoric stocks
The gradient of a bearish decline can be
4 times that of a bullish market climb and there is a higher chance for the
global markets to enter a bear market in 2018. During a crisis, shrewd
investors cannot be doing nothing and just wait for the storm to be over.
I hope I have the wisdom then and have
been ready to clinch the golden opportunity to short-sell some irrationally
exuberant stocks and to pick up great stocks at bargain basement prices after
the dust has settled and with the cues from some important leading indicators.
Conclusion
Hard work + research + knowledge + skills
+ patience --- these old-fashioned tenets will still be the key pillars of my
investing weaponry. Successes beget more successes and I can only be more
motivated.
2018 = 饿灵要发, and I look forward to a very exciting and prosperous 2018.
