Portfolio Update – August 2018

Its that end of the month once again as we review our performance.

SymbolCompany NameAverage PriceMkt PriceProfit / Loss %
SCCSemirara Mining29.509229.00-1.73%
CLICebu Landmasters4.85884.59-5.53%
FBSan Miguel Foods and Beverages62.189999.0059.19%

The Good

The good news is that, MER and FB are my top performers. I have made an analysis of FB previously, and is proving to be a good investment. Currently, the portfolio is up 18.12% against the performance of the PSEI -8.21% and against the Popular Growth stock 2.74% all percentages return are year to date.

To summarize:

  • Value Investing Philippines: +18.21%
  • PSEI: -8.21%
  • Popular Growth: +2.74%

We are also expecting dividends next month. 🙂

A screenshot of our top performer for this month. When its time to sell these stocks, I shall reveal the profit/loss. That is if you can wait for a long time 🙂

The Bad

SCC is an under performer. But I still believe that its an undervalued stock. CLI is a sleeping stock. But the real company behind it is all but that. Its a great company and will still hold on to it.

What I Learned

Its important to remember that performance in the short term does not really matter. What is important is the long term. If you’re going to expect a bagger stock, it goes to show that you have to wait for it to become a bagger. There may be speculative stocks out there that can go 1000% in just a few weeks. Either a new telco or a new business going mass housing. All of this is speculation, since the price today that reflected that 1000% increase where value is yet to come from future business. In other words, the increase in prices are discounted from the “expectations” of the people. We are not speculators and we try to avoid that. What we try to do is find a company with present value and know if that value today is reflected to the price today. If the intrinsic value is well above the market price, with a margin of safety, we buy and hold.

Book Reflection

I have also read a book today about the contrarian investing and about the Efficient Market Hypothesis. The hypothesis said that the market is efficient and they proved that the technical analysts are nothing more than making coin flips when trading. They also tried to disprove fundamental analysis, where most mutual fund managers can not beat the index and is reduced to the same as having a coin flip. The technical side, I do believe somewhat. But the fundamental side, I think I know the reason for the underperformance. Its the fees. I mean, how could you explain Warren Buffett? Surely that’s not a coin flip. The guy beat the index 60 years in a row.

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