Wednesday, 10 January 2018

My 2017 New Year Resolution - Stick Strictly To KYY's Golden Rule

Publish date: 

2017 will arrive in a few more days. 

These few weeks, I have been busy cleaning up my portfolio. US will have a new President on 20 January 2017. So far, this guy has been quite erratic, saying a lot of crazy things that send shiver down my spine. I want to free up some capital just in case there is a major sell down and I can bargain hunt. 

As I review my portfolio, I notice a pattern : those stocks that I bought following KYY's Golden Rule, I am very reluctant to sell even though in the face of uncertainties introduced by Donald Dumb. 

On the other hand, those stocks that do not comply with KYY's Golden Rule, I find them really hard to keep. Every time there is any sign of trouble with the market, I keep thinking of hiving them off. 

One good example is Canone. I bought the stock after it released strong set of result in recent quarter out of itchy fingers. The stock does not really comply with KYY's Golden Rule. I finally disposed of it few days ago. 

Did I regret buying into Canone ? Yes, I did. On hind sight, the purchase was an unnecessary transaction. It does not fit into my investment philosophy. The buying and selling resulted in unnecessary losses.  

Bad !!!  

I vow that in the coming year, every time before I press the Buy button, I will ask the question : Does This Stock Comply With KYY's Golden Rule ? If the answer is NO, I should not proceed. 

Specifically, I would like to avoid buying into a stock because "it looked like already reached rock bottom. Just buy and hold for few years, sure can make money". No profit growth no talk !!!

I believe adhering to this principle will help me to avoid unnecessary trading (bad news for my Remisier) while at the same time, buying into stocks that give me peace of mind. My experience so far is that every time I have peace of mind, I will be able to hold on to the stock for long term until it deliver a satisfactory return. 

This is my 2017 New Year Resolution.

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