The new stock has to do with M2M. Get it? No?
As I clean up my portfolio of mediocre businesses, I am transferring my cash into businesses that have competitive advantages to latch onto future trends, or simply businesses whose products and services will be used many years into the future. This requires me to try and gaze into the future, look at the signs around me, and try to see where our world is headed. Sounds pretty much like gazing into a crystal ball, or forecasting, (which I strongly oppose by the way) , but I base my future bets on personal observations, data compiled by (analysts – don’t know how true is that), reading lots of articles on the internet and raw gut feel.
This is the first time I am trying out this approach to investing and I won’t be surprised by the horror that other investors will express when they see my picks for the Bf Gf Portfolio. After investing in the SGX market since 2010, I am tired of constantly tracking my stocks to see if they have reached my base case valuation, then selling them, and then looking for other places to park my money. I find this process pointless and though I had a pretty okay run, I worry about the time when my luck runs out.
The BfGf Portfolio will comprise of stocks that are aimed for future growth and based on future trends. They must be scalable, have a chance to be a global hit, and must have a competitive advantage over their peers – or you can say, an economic moat. I am looking at businesses that own a large size of the present market share which I believe will be a sign of dominance, but at the same time, still have a long way to grow. Of course, I will pick businesses that are financially sound.
For businesses that aren’t unique or are subjected to macroeconomic or project cycles, I don’t even want to look at them, even if they may be be 50% “undervalued” by market standards. Being an entrepreneur, I know how terrible it is if your business isn’t unique. It’s a game of Hungry Hungry Hippos where you and your competitors try to gobble up as much revenue from each other as possible. It’s a slow, painful purgatory of ups and downs but zero growth overall. So don’t tell me about companies that make cardboard boxes, companies that do electrical cabling, or property developers or construction companies. I won’t touch them anymore!
Also, as valuation is still a weakness in my investing game, I plan to counter or reduce this risk by taking only small bites out of these stocks, then add more to it at different times of the year, or when I am super confident that the stock is “cheap” by my standards. No more big, shove all-in bets like how I did in the past. Rash behaviour and overconfidence will lead to my downfall. This portfolio will be diversified to reduce concentration risk.
Enough of my rambling! Have you guessed what stock I bought yet? Aiyah, I will reveal when I got time to post a detailed analysis to stimulate your brain and draw your comments or well-meaning advice!
Meanwhile, you can keep track of the Bf Gf Portfolio by subscribing to us below.
Don’t worry, we got no time to spam you. The only condition is you much watch the Bf Gf Portfolio for the next 10 years. Steady ?
PS: By the way, I hate this shitty M2M band.
P.P.S: ROCK NEVER DIES \../