Dear Investors,
Wish you a fruitful year of horse!
latest fund price $1.2516 (-0.0006, -0.048%)
nothing change much in my fund, but the market drop more than 5% in a single month, again it shows my defensive strategy perform better when the market panic.
there is an investor withdraw part of her profit to pay rent in Jan, so there is a HK$20,000 quota being freed, anyone who is interested can take up her space.
the following is the story of the 114% and 80% gain stock within 3 months, good read if you are interested, if not see you next month!
best regards,
Calvin
"Today i want to talk a little bit about how i invest, from time to time people always ask, what is the best investment now? the answer is i don't know, people always ask how can i gain 5%, 10%, 20% every year have no understanding how investment works, and i will have serious doubt to those who make such promise.
There are a lot of "guru", "teachers", "experts", "analyst", always bullshit as they can predict the future, every morning i see them bullshit in my company meeting, on TV, radio, blog, newspaper.... i am amazed there are so many "sheeps" out there really take their opinion seriously and end up being slaughtered everyday throughout the year.
my first rule of investing is that i have no idea of the timing, i buy something good (real good), and it will become good eventually, it could be tomorrow, next month, next year or even 5 years later, my only job is to make sure they are good, then do nothing but wait.
the second rule of investing is that i only invest what i can see, when people shop for actual item, e.g. clothes, cars, food, we all know it is stupid we pay before we have actually look at the items, yet so many investors when they hear there is some opportunites 10000km away from home, gold being found in sounth africa, or some invention that might change the world, they just rush in, they rather invest in alien technology than the supermarket down the corner at their house they see every day
i have a perfect example for these two rules this month, for my last couple years, i see this boring advertising on MTR train almost everyday, it is from China South City 華南城 (HKG:1668), i don't even know who will look at such boring advertment, there is no attraction at all, sometimes I even think why on earth this company so stupid to put this advertment on every freaking train.
one day in 2013 i suddenly pay attention it is actually a listed company! so i went home to do a little bit research and found out this company is a logistic company that is doing extremely well! its stock price have been rise from around $1.5 to $2.8, and her business is so strong and growing fast, suddenly this advertisment doesn't seem so boring anymore.
i brought at around $2.21 at 11/11/2013, when it goes down, and expect it will take 3-12 months for it rise to around $3, then i will be happy.
however one day (16/01/2014) i woke up, the stock opens with $3.5, thats 58% gain over the night, i thought the computer is making mistake, so i check it again, it turns out a large company is investing 15 billions HKD into South China City, once the news hit the market, this stock have gone way up, to $3.5 on the first day, $.4 on second day, and hit $4.99 highest on the third day, i sold my shares at $4.86 and $4.06 for a massive 114% and 80% gain.
it might be a bit lucky because there is no way i know about their deal, yet fundamentally, i follow the rules of buying what i can see, make sure it is good, and expect a good result, and i got it. not bad huh?"
this is the extremely boring and unattractive advertisment on train i talked about, i took a picture to remember after i sold the stock, i bet there are 1 million HK ppl look at this everyday (including most of you who travel to work by train everyday)
this is the extremely boring and unattractive advertisment on train i talked about, i took a picture to remember after i sold the stock, i bet there are 1 million HK ppl look at this everyday (including most of you who travel to work by train everyday)
the chart of the stock
