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