Investment plan for the coming year

RichDad · 1 Investment plan for the coming year Sat Jul 09, 2011 12:42 am

RichDad

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My investment plan for the year starting with the next ASI uptrend (expecting it very soon)

I started emptying my portfolio bag mid May and by the end of May my portfolio bag was almost empty except for an illiquid which I could not average. And my cash bag was full. Mid June I got rid of that illiquid too and cashed all the stocks I had as I did not have any long term stocks. But in the forth coming year which for me starts with the next ASI uptrend I'm planning to better manage my PF than the last time.

My plan

20% of my portfolio for long term (for me more than one year) - VONE, RICH, BUKI, LFIN, SAMP, RCL, BFL, LOLC

40% for medium term (six months to one year) - FLCH, KGAL, CTLD, CDB, CSD, CSEC, BALA

20% for short term (less than six months) - Illiquids, other time to time range bounds and speculative shares which fluctuate based on the momentum

10% for averaging purposes and other speculative needs

6% for IPOs

4% to tackle unplanned and unexpected opportunities in the market

What's you plan?

chamith · 2 Re: Investment plan for the coming year Sat Jul 09, 2011 12:54 am

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Sounds like a plan. Very Happy

thambi · 3 Re: Investment plan for the coming year Sat Jul 09, 2011 5:54 am

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good luck bro !!
looks like solid plan

Quibit · 4 Re: Investment plan for the coming year Sat Jul 09, 2011 8:48 am

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Good plan!!. If you fail to plan you plan to fail..
What's your plan B?

smallville · 5 Re: Investment plan for the coming year Sat Jul 09, 2011 9:41 am

smallville

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FLCH is better on long term and another good one will be HSIG.
You can consider REG, HUNT on short term base as oppose to illiquides and speculatives..
My plan is only med-short terms from last month on wards.. No BUY / SELL recommendations intended in this post.

ISURU · 6 Re: Investment plan for the coming year Sat Jul 09, 2011 10:48 am

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RichDad wrote:My investment plan for the year starting with the next ASI uptrend (expecting it very soon)

I started emptying my portfolio bag mid May and by the end of May my portfolio bag was almost empty except for an illiquid which I could not average. And my cash bag was full. Mid June I got rid of that illiquid too and cashed all the stocks I had as I did not have any long term stocks. But in the forth coming year which for me starts with the next ASI uptrend I'm planning to better manage my PF than the last time.

My plan

20% of my portfolio for long term (for me more than one year) - VONE, RICH, BUKI, LFIN, SAMP, RCL, BFL, LOLC

40% for medium term (six months to one year) - FLCH, KGAL, CTLD, CDB, CSD, CSEC, BALA

20% for short term (less than six months) - Illiquids, other time to time range bounds and speculative shares which fluctuate based on the momentum

10% for averaging purposes and other speculative needs

6% for IPOs

4% to tackle unplanned and unexpected opportunities in the market

What's you plan?

Remarkable! Seems to be a great help to me in order to plan my strategy even. +rep from me.

player · 7 Re: Investment plan for the coming year Sat Jul 09, 2011 11:02 am

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Quibit wrote:Good plan!!. If you fail to plan you plan to fail..
What's your plan B?

plan B-never hold shares in a bleeding market

my idea- don't make future plans,do scenario planning. Wink

Leo_pold · 8 Re: Investment plan for the coming year Sat Jul 09, 2011 11:51 am

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I will go for 30% long term, 30% medium, 20% short, 10% IPO and 10% for unaccepted.
But with the current market, it's best to have at least 50% IPO as they are the commonest things we see around..
(just a joke, my plan is the former one, not the latter)

RichDad · 9 Re: Investment plan for the coming year Sat Jul 09, 2011 1:49 pm

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Thanks chamith and thambi, what's your game plan?

Quibit, I have a contingency plan. If I see a 'one for the life time opportunity' in the market, I will lease back my car and get that money to grab that opportunity.
Also if I see any short term opportunities in the market I might shift a percentage from med term to short term.
You are spot on, I put that quote on the wall in my room. Failing to plan is planning to fail. Bravo!
What is your plan.

smallville, Yes FLCH is a good long term hold with their future earnings potential. There strategic move towards hydro power, real estate and commercial development, Leisure is quite impressive. The main shareholders of Fee Lanka Capital Holdings are Free Lanka Capital Ltd. (70 %), Browns Investments Ltd. (4.12%) and Perpetual Holdings Ltd. (4.27%) makes this a secured long term investment.

HSIG's direction towards MICE, adventure, eco-tourism from traditional culture and heritage tourism is interesting. There profits are growing and the dividend was fair. The tax benefits they got in the last year gives them an edge over others. But still my HSIG valuation is lower than the current prices and technically it might have some range bounds.

I collected some HUNT at 825 and planning to collect more in a pyramid. Thanks for suggesting REG I've never touched REG before, I noticed that it's now in the 163 resistance which is a good deal.

Thanks Isuru. What's your plan?

player scenario planning should always be backed with a solid long term plan. For me scenario plan is always a plan B.

Leo good luck.

Quibit · 10 Re: Investment plan for the coming year Sat Jul 09, 2011 3:14 pm

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My plan B is to invest in listed debenture that would give me a guaranteed return. If market continues it's downward trend then it's likely that most money will get switched to debt instruments. I would like to get their before the others. If you invest in debentures at 10% p.a interest, you recover your investment in 10 years. This is almost like buying a share that carry PER of 10x.(this is assuming that there is no earnings growth that would result in a lower PER).

Ask yourself the question as to why you should invest in stocks that are 20x PER which equal to 5% p.a return when you could buy debenture with a coupon rate of 10% p.a on it.

But you got to watch out for junk bonds! (like what happened to Vanik bonds)!!

RichDad · 11 Re: Investment plan for the coming year Sat Jul 09, 2011 4:24 pm

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Thanks Quibit. You have a good rational.

50% of my wealth is in share market and the rest invested in other four 'middleman' businesses. I will consider shifting a part of share market money to bills and bonds if it can't give me at least 40% p.a.

Also I'm planning to invest in gold and real estate too. Recently I found an attractive offer by the government to buy lands in Mulathiv to cultivate cashew. If you step out and open your eyes there are a hell of a lot investment opportunities!!

optimistic · 12 Re: Investment plan for the coming year Sun Jul 10, 2011 9:22 pm

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cultivating cashews can be a headache sometimes according one of my friends who has acres of cultivated cashew lands. but it can be a very profitable venture. it is seasonal isnt it? the main problem arises with poachers. since the areas can be very vast, taking care of your crops can be hassle, because there comes times when you cant trust your own security personnel. i heard they have to use physical force to scare them entering their lands. and then seek legal actions vice versa. plantations are very good business as long as you are there to investigate the outputs of your crops.

i have plans set on cinnamon, mango, lemon, spices etc. i think growing flowers is also attractive.

rijayasooriya · 13 Re: Investment plan for the coming year Sun Jul 10, 2011 9:39 pm

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This plan is good for a millionaire.
Can someone come with a plan for small investers except running behind rallies and speculative shares?

RichDad · 14 Re: Investment plan for the coming year Sun Jul 10, 2011 11:12 pm

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optimistic wrote:cultivating cashews can be a headache sometimes according one of my friends who has acres of cultivated cashew lands. but it can be a very profitable venture. it is seasonal isnt it? the main problem arises with poachers. since the areas can be very vast, taking care of your crops can be hassle, because there comes times when you cant trust your own security personnel. i heard they have to use physical force to scare them entering their lands. and then seek legal actions vice versa. plantations are very good business as long as you are there to investigate the outputs of your crops.

i have plans set on cinnamon, mango, lemon, spices etc. i think growing flowers is also attractive.

Thanks for the valuable inputs optimistic! I will definitely consider it in my investment analysis in cashew. Yes administration part will be not fun. I have a relation in the area and planning to appoint him as the care taker of the crops.

Of course spices is a very profitable venture. Not only cultivating but also being a middleman in a export supply chain is very profitable.
If you start cultivating I'll consider being your buyer Smile