AMENDMENT #2: 2011 Share Investment Review

Today is the last day of 2011. How do you feel?

I believe most of us feel excited, neither because of 2011 is ending nor 2012 is coming, just because it's New Year and we have few holidays to enjoy. Since it is the year end, it's time to review my local share investment portfolio.

Portfolio review is always good to know how well we did, where we did wrong and right, and how we can improve further for the coming years.

This year return is doing very badly compare to my target return. No doubt, 2009 and 2010 are the fruitful years for many of the investors. I'm not sure how you guys doing this year. I only have 8.3% return this year, compare to my target of 15%. In fact, a few percents was coming from the past few trading days. My 2010 return was 13.1%.

My sincere apology. After review my portfolio again, I noticed I have used the incorrect method to calculate my return. I took the total of my return divided by total cost of every trading made. This is wrong because I re-use the same cost to sell counter A and buy counter B. I should take the total investment I put into my CDS instead. No wonder I only have 8% return last year!!!


After correction with dividend and minus out brokerage fees, my actual return was 11.6%. If I sum up with the total net dividend I've collected in 2011, my total annual return was 15.2% 16.3%! I'm actually achieved my target of 15%!  Hooray! 


(Note: The return has yet to minus the brokerage fees, which is very minor.)

There is one experience anonymous from the newspaper claimed that he has 40% 43.8% return this year. If it is true, I salute his return. If we look at KLSE index gap for 2011, it is only 0.8%, not even 1%. So 40% 44% return for this year is really outstanding and successful. His strategy is focus on 3 to 4 stocks only, invest in warrant and invest those cold stock that normally investors do not interested.

Of course, there are rooms for me to improve my strategy, including cut loss on those counters which making loss with no prospect, increase the number of lots once target is lock down, try to avoid non-blue chip IPO counter, don't catch the falling knife, and finally don't buy something that I don't understand.

The most critical mistake I've done is invested in MEGB and MUDAJYA. They really impacted my 2011 return a lot, more than 30% net loss. On the other hand, the highest return counters would be AMEDIA, JTINTER and SUNREIT, ranging from 28% to 35%, excluding dividend.

I have increased my total portfolio investment fund 100% this year, including the return from last year. I hope I can increase another 50% for 2012 with the return from this year. I hope this can force me to save more and make me achieve my financial freedom goal faster.

For 2012 target, after a thorough review on my fund size, trading strategy and capability. I decided to keep it at 15% get a 18% 19% return this year. I hope I won't disappoint myself again with the lesson learned over the past 2.5 years. In fact, I'm greedy and I want to set it higher, but I'm just not up to the standard yet.

I'm not a winner or loser this year, but I do hope I will be continue to be a real winner in 2012. 

How about yours? I do hope you have a good year for 2011 and even a better one for the coming 2012. 

Happy New Year, folks!