Saturday, 7 December 2013

SGX Purchase - Balancing my stock portfolio

My post last month mentioned that the cost for my SGX  will come down to zero within the next three years.  However, this is not going to be as I have added one more lot of SGX at end of last month.

The purpose of adding SGX is to balance my portfolio.  My portfolio was set up using SGX, SPH and Starhub as foundation stocks, while Reits and other dividend stocks are supporting casts.


For the purpose of diversification and not to tie down the well being of my portfolio to the fortune of any single company, my three foundation stocks should not exceed 20% of the overall portfolio.  On the other hand, the supporting casts should not exceed 10% of the overall portfolio.

One of my friend is holding Starhub in about 80% of his stock portfolio.  While Starhub is a good company, he is bearing unnecessary risk by concentrating too much in a single stock - meaning putting too many eggs into a single basket.  He is also working in Starhub, so his career and investment are all tie together with Starhub.

We do hope Starhub continues to do well in the coming years!

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9 comments:

  1. CreateWealth88887 December 2013 at 15:48

    His big position in StarHub due to his stock options?

    ReplyDelete
  2. Money Honey8 December 2013 at 09:47

    as compared to my "rojak" stocks pick and funds allocation, you have planned it well with your funds allocation strategy. also, wise choice on your foundation stocks and supporting cast. you are indeed ready for 2014 an beyond.

    ReplyDelete
    Replies
    1. Passive Income Farmer9 December 2013 at 04:42

      Thanks. Though I still have long way to reach financial independence.

      Farmer.

      Delete
  3. Anonymous8 December 2013 at 20:47

    SPH is in a dying business unless it does well with its non-core business. May need to monitor closely and substitute it for something else over the longer term. Starhub may also be in the same situation given direct streaming competition vs cable TV, and also Telco's being just utility pipes

    ReplyDelete
    Replies
    1. Passive Income Farmer9 December 2013 at 04:45

      Hi,
      SPH is an old stalwart and not ready to die yet. I agree that SPH and Starhub need to be monitored closely.

      Farmer.

      Delete
  4. Unknown4 June 2014 at 23:14

    Needful information regarding the SGX, SPH and Star hub, as well.But from where I can get Best SGX stock picks to trade in Singapore market??

    ReplyDelete
  5. Unknown21 January 2015 at 21:34

    MALAYSIAN shares ended higher on Wednesday with the Kuala Lumpur Composite Index adding 19.98 points to close at 1,770.09.Some 2.16 billion lots. sgx trading

    ReplyDelete
  6. SGX stock trading11 June 2015 at 03:13

    Fetch some interesting market updates regarding SGX capital market here.

    ReplyDelete

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