This will be a quick update for the month of November as there’s not much changes to update for the month.
We have seen the overall market continues its upward strong momentum, in particular within the US market and the cryptocurrency where the major caps are making its new all time high.
This is despite the Federal Reserve warning about a potential tapering to the reserve rate which the market was already expecting, thus creating no surprise element in the market.
The Chinese market hasn’t really seen much change to its fortune despite the regulatory news dwindling down in the past recent weeks. This is good for investors because we now know that they are likely controlled by a bunch of technical chartists who are waiting for the right time to send its share price soaring back. For now, it pays just to be patient and do nothing.
For the month of November, I have added just one new entry which is a position on China East Education (HKG: 0667).
Price action has been really weak in recent times despite some good news coming out from China and the company has also been buying back its shares so I guess the weakness in sentiments will persist for a little while more. Nevertheless, it’s a small position build-up for now which can increase depending on how the situation goes.
I have also been playing on a few option plays in the past recent weeks which I managed to build some income while waiting and also reducing my leverage accordingly.
Networth Updates:
Net worth didn’t move much for the past recent months and this month it was down due to further continued weakness on Chinese stocks.
I understand that if you are in the same boat as me, it can be frustrating to see your peers advancing well ahead as the US market continues its bullish momentum but I think it will be quite silly to make the changes now to the US market when it is that extended.
At the very best, you can write a few puts or calls in the US market while earning the premium while waiting for your core portfolio to rebound back. We are barely less than a year since all the regulations come into play so give it a while to play out.
Tiger TFF Live Show
I was lucky to be invited to the Tiger TFF event which runs throughout the rest of this week.
For those who missed out on my live show yesterday, you may find the repeat telecast link here.
In the 1-hour event, I spoke about the different portfolio strategy and which sectors I think is the way to move forward. I also spoke about embedding both value strategy into growth investing and how an investor can be mindful of when overpaying too much for a particular company.
Brian how do you walk around with the weight of your massive balls? You’re the only one around with 97% of your portfolio in China.
Hi Ben
I guess this allocation will not last forever and it will slowly dwindle down once I divest a few eventually. My time horizon is not a long time, I’m just waiting for recovery to take place.
I respect your honesty in disclosing your trades, no matter which way they go. The man in the arena indeed. All the best.
Hi Brian,
Your portfolio will cross the million dollar mark when china rebounds. Wish you all the luck. Im in the same boat as you – currently holding 6200 shares of HK listed 9988 at avg price of HKD179.
Hi Spawner
Too early to say and celebrate right now, but I think there’s a good chance of it happening. I’m gingerly cautious yet bullish on it. Finger cross and all the best to us. You’re holding at a great entry price.
Hi Brian,
what if you are wrong this time? what if China market does not recover in 1 year? with the chinese government, you never really know what’s going on behind the scene. all you read are western news. do you read chinese news to understand what is going on in china? could western news be biased or skewed?
Hi Jalan
I’ll pinch my 12 years of experience in the market guts if I’m wrong.
My guess is the worst is behind us, and the recent moves up and downs are all technical chart driven. We would see a big move soon after.
sorry but I don’t understand what you mean by you will pinch your 12 years worth of experience?
Haha, I can’t explain it either. I guess there are chances where it might go wrong (like most US concentrated investors do too) but I’ll take those chances for now in Chinese tech companies.
I see.. hope you get it right, you are one of my most respected bloggers. Temasek Holdings have started trimming as well. Wish u all the best!
Brian is probably going to do well long term, am fairly certain of that
I would say that it is difficult to keep enterprise and innovation down by restrictions. Ultimately they will slowly move up
COI- I took positions in the Chinese tech funds during August- September lows and am just under water now. I might add more if they revisit the previous lows