Despite the recent rate hike, the market continued to hitting new high. Since the beginning of this year, I have been reviewing my current portfolio, selling the weaker ones and taking some profit on the strong counters. After the last GFC, I felt that it is better to realise some hard profits and keep them in my pocket than to see them vaporising on paper.
Last week, I finally took the hard decision to cut loss on my Kepcorp. This was a counter which I bought at quite a high price, and when it corrected, I should have adhered to my usual cut loss of 20%, but I didnt and thus a price to pay. I have taken the decision to cut loss so that I can redeploy the capital to other counters that I am watching now.
At the same time, I have also taken profit on UMS. The stock price awoken due to more investors taking notice on this counter and buying it for its' decent dividend (I presumed). I was told to leave the party when it gets crowded, although after I sold, it went up some more. UMS was a counter which I hold since 2015, and over the years, it has given me pretty good dividend. With the recent run up, I pared down my holdings and left with just 1/3 of it. The remaining 1/3 is at ZERO cost to me now, thus even if the share price corrects, I can still sleep well at night. Once again, this also tells me that both 'Timing the market' and 'Time in the market' are equally important.
Lastly, as the market continue to rise, it has been challenging to find value in the market. I am looking at a few (some can be found in my list using the Greenblatt formula) and will be sharing shortly.