Mentor to the rescue - I meet my mentor and my friend in the broking firm I was working in, during 2008. I could still remember that vicom was below 1 dollar then. I told him to look at some of the stocks that I was holding and asked him to take a look at them as the valuation was very low.
He noticed one thing in common with them all of them are listed from China - all of my stocks purchased than was S-chips they were purchased due to the low valuation. Some of them were even net cash companies. (however, we all know what happened next which I do not wish to illustrate further).
Lesson learned - If the market priced it cheaply it is often cheap for a reason, mispricing would not be there for a long time.
I decided to switch to companies that give solid dividends during the crisis and i had to cut the losses of the shares that I purchased as I was in very early, during the bull market I managed to lose only a small portion of my net worth after all I think the amount of my money put in increases by 3 fold within 2 years if you all have vested into the S-chip than u know what I mean .
I was very lucky then to have met my mentor and also to have switched out to stocks that give out great dividend than Suntec REITs was giving out a 15% yield then. ( i could still remember when Suntec REITs managed to refinance their debts to a lower rate (HSBC) I was confident that the dividend income would hold. I maxed margin then, 3.5 x leverage with income coming in to shore up my credit even more. Margin finance was at 4% to 6% than. Again I was very lucky as I am managing a small portfolio of close to 100k to 200k than with saving at 8 to 10k a month I was not married then and I had very minimum commitment. So the market recovered and my portfolio increases to the pre-crisis level of close to 350k at end 2009.
the recovery was fast and furious and deleveraging was done in 2010. My portfolio has been deleveraged to level at 30% debt to equity level max. Currently my debt level was even lower at
only 15%. debts to assets level.
Looking back i was really lucky - 1) to have switched out to dividend stocks and also to have income coming in to cushion off my debt level fast. (they was no chance to answer margin call we simply let the house sell us out however when the income came in again the subsequent month the leveraged was by a factor of 2.5X again) .
Disclaimer
1) This Blog is intended only for the use of personally portfolio tracking and sharing of ideal. All the investment advice or stocks picks shared shall be view as only my personal opinion only. I do not warren the truth or accuracy of the information shared and likewise all investment should be consulted by your personal financial advisor as i do not have an understanding on your investment objective nor your investment Risk appetite as such i shall not be liability for any of your losses whatsoever howsoever should you decide to invest in any things discussed in this blog.
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