Thursday, May 1, 2008
Turtle Portfolio Update - May 2008
Turtle added $ 888 savings for the month of May. While it is seems to be gratifying and a boost to ego to mention MUI Industries is still up by 23%, I realize that this is meaningless. If I really want to take a longer view then I should stop measuring performance by quoted stock price alone. The alternate measurement will be business performance. The companies shall remain in my portfolio as long as
(i)it is well manage or
(ii)did not lose any competitiveness when facing difficult conditions like recessions.
(iii) no extreme optimisms - prices running way ahead of fundamental
Those companies showing signs of mismanagement or any industry dynamics is no longer favorable will be on my watch list - a candidate to be sold at anytime.
$2,800 cash in hand would warrant for one purchase, however, if I did spend this amount, I will have to wait until early September for the next purchase.
Traditionally, May - October is the weakest period for equities, this is where the saying comes from:Sell In May and Go Away. However, given the pessimisms of equity market for the last few months, the US Institutional money has turned bullish for equities and the US dollars but bearish on commodities such as gold and oils. Also, bearish treasuries. Have this feeling earlier for short term market rally and oil price due for corrections.
This is a bad news to Turtle because he will no longer able to buy at cheaper price. Looks like I may have to sit and wait again until the price come down to my target.