First trades

Below are the first trades for the portfolio. All stocks were priced low compared to their net current assets at the time of purchase.

Company Ticker Date Price P/NCAV
Boom Logistics Ltd ASX:BOL 2014, Jun 0.13 0.57*
QC Holdings, Inc. NASDAQ:QCCO 2014, Dec 1.67 0.67
Hengxin Technology HKG:1085 2015, Mar 1.38 0.45
Tiemco Ltd TYO:7501 2015, Mar 577 0.50
I-O DATA DEVICE TYO:6916 2015, Mar 630 0.53

Includes Plant & Equipment

… And so it begins

On this blog I will document thoughts and trading for my new portfolio. I have a general idea of the strategy I want to explore, nothing is set in stone and things will likely change over time.

In recent years I have spent a great deal of time analyzing and reading up on securities and companies. I have gained a fair deal of experience from this and also had some good performance. However, I feel my stock-picking has been too random I have frequently doubted choices and made unnecessary or poor trades.

In an attempt to give myself more peace of mind as well as a structured approach to investing I have decided to start this portfolio.

My strategy

  • Purchase price is important for long-term performance. Focus on objectively cheap companies, e.g. net-nets and low p/b.
  • Evaluate investments on a annual basis. Day to day price changes is usually noise, the intrinsic value of company don’t change much from one day to another.
  • Don’t over-analyze. Stuff will happen and I will not be able to foresee half of it. Mitigate the risk by diversification and looking for high margin of safety.

The goal is to gradually build a portfolio of at least 20 holdings. The basis for the stock-picking will be quantitative screening followed by qualitative analyzes of short-listed companies. Will look for bargains on as many stock markets as possible.