It’s April already?
Moving away from my big, shove-it-all-in style of investing in the past, I have decided to adopt a ‘nibbling’ approach. Investing in small amounts, spreading out over different stocks allows me to diversify my allocations over TIME.
This method allows me to have ample cash on hand, and at the same time, allows me to add on to more positions over time. I do not have to wait for the perfect valuation or market drop to push my chips in. I can just build my portfolio, bit by bit, whether the market goes up or down. ( Of course, theoretically-speaking, we should be buying more aggressively in a bearish market and more cautiously in a bullish market.)
Here are a list of nibbles that I have decided to take up for the month of March 2016
Yup. I can’t ignore this tech behemoth anymore. Amazon continues marching toward worldwide dominance. Amazon Web Services (AWS) has been the rising star in Amazon’s multi-hydra-head business over the recent year. I took a nibble at Amazon at $568.27 after its 15% drop from its peak price. This monster still has lots of room to grow.
MasterCard was the 2nd US stock that I bought when I shifted my portfolio to US stocks early last year. The market pull-back has allowed me to add on to this solid business again. I am a big bull on digital payments and MasterCard is currently the 2nd biggest player in the game after VISA. Nibbled at $87.55. It’s my 2nd largest holding, currently making up 10% of my overall portfolio. (Biggest holding is Priceline at 12%.)
CapitaMall Trust (C38U)
Shifting my portfolio to US stocks made me miss having dividends. My fingers got itchy. After eyeing Frasers Centrepoint Trust and Capitamall Trust for some time, I have decided to snap up CapitaMall Trust instead. I wrote about it here. Another nibble at $2.15. Looking to build up my portfolio with more REITs soon.
Chipotle Mexican Grill (CMG)
This is the one stock that I will be eyeing throughout 2016. Chipotle has recovered from its nasty norovirus attack. But now it’s an uphill battle for them to win their customers back. For a restaurant to attract customers, there needs to be some initial store traffic to serve as social proof. Diners are wary of empty-looking restaurants. Chipotle tried to entice diners back with free burritos but apparently the fear has not worn off yet and the campaign did not do too well. Recent reports of 2 sick Chipotle staff being sent home also made the news, causing its stock price to fall further. Nibbled at $500.
Kingsmen Creatives (5MZ)
Kingsmen took a big hit with their luxury retail segment. But… after looking at their overall results… they don’t seem thaaat bad. I feel that the luxury retail segment could just be a cyclical issue that will recover in the future. Besides, the management seems confident in their Exhibition and Museums segment. This confidence is also evident in their share-buybacks. The last time Kingsmen bought back their shares was during the 2008 crisis. Nibbled at $0.63.
This was one of the stocks that I still held on to from my earlier years in investing before my style changed. I bought it for its strong financials and cheap valuations in 2014. Sadly, the total returns since then has been a meager 13.86%. The business has been struggling for years ever since the PRC players started eating into their market share for consumer electronics. After holding this company for 2 years, I still do not completely understand what it does. I only know that their business is a grind… They have always been struggling to maintain revenue and margins for the longest time.
This stock represented too large a concentration in my portfolio and I have decided to sell half of it at $0.425. It doesn’t make sense for me to hold a large portion of something that I don’t really understand. That money would be better off being invested in stronger companies that I understand like MasterCard, Priceline or Google.
I have been on the lookout for small-caps after most of the ones I invested in last year are starting to look less rosy (Solar City, Sierra Wireless, GoPro). <<< I am still holding on to them though.
However, my searches have turned up empty. Hence, I just make do with the best deals available. Seems like most of my portfolio consists of mid-large caps now.
What about you? Spotted anything interesting lately? Let me know in the comments below!
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