Sunday, September 12, 2010

Review Investment Strategy - some thoughts

As I celebrated my 52th birthday last month, It came to my mind that its time to take stock and review the few important aspects of my life: Career/Retirement, investment/finance. Let's talk about investment first.

By the grace of God, the world economy came out from the financial crisis pretty fast. In the same manner, my investment portfolio survived the crisis. Today, the value more than doubled from the pre-crisis level. As at this month, I have achieved an important investment milestone. Right now, I am resisting the temptation to set another higher target for myself, as this will mean no end to this cycle.

On the other hand, I could stay relatively unaffected by the financial crisis because I have a stable job with good income. This enable me to continue investing when market crashed in 2007/08/09. Now that the investment time horizon is getting shorter, and should there be any change to the career plan, investment plan will need to be adjusted accordingly. In the coming months, I will:

1. Slow down share buying further. Only go for stocks with good dividend payout.
2. Review my stock portfolio and get rid of stocks that are not performing (my definition of not performing is not moving in stock price, and not paying or only paying very little dividend. )
3. Build up more cash portion.
4. Look for opportunity to invest in good corporate bond with high yield (like the recent NOL bond with yield >4%)

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