The red in my portfolio – Comfortdelgro down 15.45%

I have blogged quite a few posts about my buy in to ComfortDelgro (CDG) and why I thought it was a good buy. albeit being overvalued when I calculated the company’s actual intrinsic value.

Today, I would have to eat my words. And it is indeed because I chose to pay a premium for the stock in the beginning at $2.33.

As of the closing price since Friday, the price dropped further by 15.45% from my buying price to $1.975, and thus has significantly affected my portfolio returns, although overall returns still remain green. This is also the first time that I saw a two-digit decrease in percentage points in my portfolio.

Interestingly, I am undeterred and nowhere close to suffering from loss aversion just yet. As I read back the blog posts to remind myself of the reasons why I chose to stay invested, it is still relevant and the fundamentals of CDG has not changed up to this point of time. Therefore, it is most likely that I would stay vested for some time.

I have also mentioned before that I would cheer and accumulate more shares in the event that CDG share prices decline. Unfortunately, I can’t cheer just yet, and I should elaborate why.

With the current situation, I have two options.

  1. Stay with my holdings at $2.33 and continue to collect a decent dividend yield of 4.42% to 4.46% as calculated using 2016’s and 2017’s dividend yield respectively, which I was initially satisfied with and why I bought it at $2.33 in the first place.
  2. Wait for the price to drop even lower and average down to a target price of $2.05 and a dividend yield of 5%.

Option 2 is actually not that difficult to achieve with the current price, and I have done my calculations for it. However, I need it to come down to a range of $1.9x and below before I would be willing to average down. Otherwise, I would continue with Option 1 and adopt buy-and-hold. I don’t need the money now anyway and I have sufficient funds for other potential investments.

You might be reading this and going bananas especially if you are in the same situation as me, because now, I only wish that the price would go much lower. “Are you crazy, Miss Niao?! Better cut your loss before you lose everything!”

If anything, I think right now, there is more upside for me when the price declines. I stand strong with me being able to sustain from any pain if I should see it drop even to 50%, and this is also something which I’ve mentioned before. By then, I think I would cheer even louder, unless of course if I do see a valid change in their annual reports and fundamentals. Till then, Option 1’s the way to go!

More ComfortDelgro related posts here.

Thanks for reading!

Miss Niao xoxo

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Author: Miss Niao

Hello! I blog about financial matters and things that average people can do to have a better retirement. I want to inspire people to take control of their money and have a better understanding about it. If you are interested to know more, follow me @ missniao.wordpress.com! :)

24 thoughts on “The red in my portfolio – Comfortdelgro down 15.45%”

  1. Hmmm probably will see further weakness in the share price over medium term (no real catalyst to solve their main taxi biz) …. although may have a short-term bounce soon (oversold)…

    That’s the problem with investing in individual stocks — you take on unsystematic risk i.e. company risk.
    Which of course theory will say you minimize by not having >5% of your portfolio in any 1 company…

    Unless you eat, sleep, breathe the company inside out, & you know their businesses & plans better than your own face …. then maybe can take more concentrated bet!! 🙂

    Personally I’m too lazy & weak of heart to handle the hard work & excitement of individual stocks investing … hence mostly ETFs for me (London, HK & some US — those on SGX mostly too illiquid for me).

    The only companies I own on SGX are 2 of the local banks … and even then I bought during recessions, so that I can basically just buy & forget — if they collapse it means S’pore also collapse.

    Liked by 1 person

    1. I believe ETFs are good enough to get vested already. 😉
      Everyone has their own risk tolerance and what they can accept. You are right to say that I am taking more risk, but I would argue that it isn’t uncalculated. :p
      Just buy and hold, like forever, and buy more when the next recession comes! 🙂

      Like

  2. Well, I am in the same ship as you. It is painful to watch how it spiralled down rapidly in the last 2 weeks. I reckon it that it will drop further … the sentiment around is really bad. I will try to get some now and more later if I can afford 😁

    Liked by 1 person

    1. Certainly, I know how you feel about the pain, because I was actually quite anxious when it declined a hell lot (like 7% within a day). And because it’s my first time experiencing this so I didn’t really know how to deal with it.
      As blogged, I think we should be more positive about the current situation actually. 🙂
      And I thought you got out already! :p

      Liked by 1 person

  3. Hi missniao,

    S&P500 suffered the following single day losses during the great financial crisis.

    2008-09-15 -4.71%
    2008-09-17 -4.71%
    2008-09-29 -8.81%
    2008-10-07 -5.74%
    2008-10-09 -7.62%
    2008-10-15 -9.03%
    2008-10-22 -6.10%
    2008-11-20 -6.71%
    2008-12-01 -8.93%

    Single stocks could have fallen 2-10 times more than S&P500.
    If you are worried, with just a single stock falling double digits %, you won’t be able to handle an entire portfolio that fall by double digits %.

    Cheers!
    Matthew

    Like

      1. Hahahahhaa Matthew… I tried reading it but I understand nuts because I have no knowledge about TA. :p Only thing I could conclude from the article was that there is a high probability that the prices will tumble further.
        So maybe you are trying to tell me without words not to worry! :p

        Like

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