Tuesday 1 November 2016

Strategy Report: November

Focus back on Singapore: GLP

In the past few months, I have been focusing on adding foreign stocks and ETFs to my portfolio for diversification and also because I was worried about a weakening S$ and STI underperformance.

However, as I mentioned a few posts ago, STI ETF at $2.85 is a reasonable entry point, and if STI is hovering around 2,800, there could be individual stocks worth adding. If the stock derived a lot of its revenue from overseas, that would be even better. GLP is one such stock.

On 31 Oct, GLP dropped under $1.80. Those who HWZ posts will know that some call GLP a FIFO stock. Meaning you should buy on the dips. My entire holding of GLP was bought under $1.80. After it crossed $1.80, I didn't buy anymore but prepared to sell some if it hit $2. However, since it went under $1.80 again, I bought some more at $1.78 and got ready to average down. 

My overall strategy is to buy a low price so that I can hold for a long time and collect dividends. In contrast, there were some people that didn't buy GLP when it was under $1.80 but instead waited for it to shoot up and followed the trend. Following the trend is fine if you are able to sell when there is a reversal, but not many people can do that. 

I experimented with some FIFO of GLP but 0.18%/0.20% comms does eat into the profits. Maybe stick with FIFO of US stocks where the comm is 0.08% or less.




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