Known Issues in My Current Portfolio and My Action Plan to Fix Them

Throughout the years, I made some mistakes. I have learnt the lessons from the mistakes, and also also addressed them accordingly to prevent the same mistake from recurring.

However, the following problems has been inherited until today. I have been gradually reducing the problems, but it still need some time to fix them permanently.

  1. Over-diversification

    a. In the early days, one mistake that I made is over-diversification. Even though my stocks are performing very well, but my fund was actually limited. Thus, the return of each stock is not great in money value.
    b. To maximize the return in money value, 
        i) since 2011, I have stopped investing money in some stocks, but still holding them, such as BAT and PETGAS.
        ii) I sold off all PELIKAN, SPSETIA, BERNAS, STAR, MAGNUM, MOX and few more in the previous bullish markets.

  2. Too many sins business, such as BAT, JTINTER, GAB, CARLSBG

    a. All of these stocks exposed to very tight regulation, especially tax.
    b. My plan is
        i) to sell of BAT after I get the final dividend, then just focus on JTINTER.
        ii) GAB and CARLSBG are both correlated. As of now, I will treat them as one company.

  3. Too many over-valued stocks

    a. Emotionally, I am quite reluctant to sell off some of my over-valued stocks. In fact, I can use the money to invest in growing stocks.
    b. By end of 2014, number of stocks in my portfolio will be reduced to less than 10. Besides BAT, I may sell off DIGI, SIME, PETGAS, AIRASIA, etc…. Let see how the stocks perform along the way.

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