Random Commentaries on the Portfolio

Recently I’ve been thinking about consolidating my portfolio. However I cannot fully maximize my capital allocation efficiencies because I have not studied every single worthwhile company listed on the HK stock exchange, therefore the portfolio is still not operating at its full capacity. It has under-performed the HSI recently but that is little to my concern in the short term. Last month due to sudden cash inflows I had to average up some of my stock picks rather than my preferred method of averaging down.

Onto consolidating the portfolio, I am currently thinking about a number of ways:

1. Take profits for 3328.HK and invest that into some higher yielding assets which I already own or will own a significant position. Currently 3328.HK is still under its fair value and it will most likely perform well if I sell at around this price.

2. The recent correction for 477.HK tempted me to buy some more of it but I still believe this price is a tad too high for my risk appetite. Averaging up to around $0.62-$0.64 will put extra strain into the portfolio.

3. 2698.HK has been completely ignored by the markets recently despite the massive surge in 2678.HK’s price. Fundamentally it is definitely not as good a quality as 2678.HK but its share price is far stabler than 2678.HK. Reducing its position at current price seems almost a very dumb move.

4. 3336.HK I deeply regret averaging up too high but there is little I could do. I will not add anymore to this company as it has reached my maximum threshold for this particularly risky company.

5. 3398.HK also reached its maximum threshold, probably just another cigar butt that has somewhat of a good dividend yield, we will see later in the year. I contemplated a lot about building this into a core position but I just had to pass. It’s retail brands are nothing close to amazing and it’s too much of an export oriented textile manufacturer. However the Ting family seems to be quite powerful in their hometown, similar to Weiqiao’s Zhang family in Shandong.

6. I am still searching for bonanza companies to deploy my remaining cash, I try not to reach over six companies at any one time. I also need to build up my confidence to put at least 30% of the portfolio into one single company.

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