After taking an hour or so reflecting with some early readings from one of Benjamin Graham’s work, I soon realized that I was too easy browsing his award deserving work at first reading, and that one of his theory in common stock investment (way-way back in time-published during the score of 1934) was STILL utmost correct when applied at the current date December 14, 2013. (How magnificent this icon was and still is ~80 years of concrete proof that he was able to deduce such knowledge and more).
--By me not taking seriously his plain introductory statement about technical approaches (analytical technique) to speculative situations which then was mentioned and are proved to be "inconclusive and unsatisfactory"--may I not blame neither myself for the feeling of rancor I sense to have every time I see my Speculative Portfolio? (Most purchases based on TA) nor just my plain ardent behavior when certain point in the line graph was touched by my Speculative Stock and immediately take the purchase/sell order?
Regardless of any reason which I may be able to conclude so as to have my Speculative Portfolio to have betide this snag occurrence in my little investment experience. I must now seek recourse from no one else but from where I first got into understanding how Value investing works and that it (Value Invested Portfolio) may ameliorate what chagrin its contrary had achieved.
There was an interesting prose about having the shift of attention and businesses towards the Wall Street similar to a Gold Rush event. This is surprisingly still be applicable even in a distance of half way around the world and even decently surprising it was stated way back then (1934), most quintessential Filipino working class (like yours truly) would be or had shifted their renewed vigor to initially speculate and concoct up a charting technique that may provide him extensive return--then shortly after joining the game of the “big players” (e.g. Mutual Fund, Equity Fund, Global Investment Fund, etc)—Only to found out that they (and myself) were up against an irrepressible force of the STOCK MARKET's moody behavior itself.
Starting with at least 10% of my savings (after providing home health services as a PT), I was able to start up a small investment. On June 2011, I had purchase my first few shares, without plan, with a mining stock and the short history of my ‘investment’ adventure started.
Looking back during those early ‘trading’ days and until now, I may contently apply myself as one of his mentioned mishandled ‘investment trust’; breaking all of its (my) desired rules when probably during the short bull market years of early 1900’s (2011-2013) and may be applied now as was described by Benjamin Graham himself before (whereby I had to modify it to cater my own limits and were as follows):
From:
1. To buy in times of depression and low prices and to sell out in times of prosperity and high prices.
2. To diversify holdings in many fields and probably in many countries.
3. To discover and acquire undervalued individual securities as the result of comprehensive and expert statistical investigations.
To:
1. To buy in times of depression and low prices and to sell out in times of prosperity and high prices.
2. To diversify holdings in as much different types of industries as I can in the local bourse (Which I then realized that this only works in a Bull Market and that this is not considered 'DIVERSIFICATION'--sadly)
3. To discover and acquire undervalued individual securities as the result of comprehensive and expert statistical investigations (Which I am endeavoring to do so…)
Now that the current local bourse (PSEI) is in its dismal -8.76% just in the span of this month from 6320.96 down to 5,767.13 (which bleeds my Speculative Portfolio to a shameful -17.00%) , it is no disguise that the 6,000 mark that I was talking about previously was just another hole that the sellers easily pierced through and now looking to a much ‘bounced-off’ ~5,700 as an initial support, and a possible secondary support at ~5,565 now marked and determined by a Fibonacci Retracement from the previous high and low from year 2011-2013. (Picture 1)
I guess the only way not to be deluge with this type of ‘bear’ event, whereby there are no uncertainties, and that all the papers led to articles of much about pessimism: “Fears over US Fed taper wipe out PSEi's year-to-date gains,”; “Are Philippine Stocks Heading for a Bust?”, all from respected and credible analysts, specially for the latter—is to use his idle time to try to learn from oneself the discipline in his respective limits and learn more about the documented and proven value-investing principles in the market as much as one can. With conclusion, this brings one to wonder when and where in the future will be an article be printed with something like, “Philippine Index Recovering/Reckoning to Full Blast Again!”
"This too shall pass.." (click for more information about the quote)
--By me not taking seriously his plain introductory statement about technical approaches (analytical technique) to speculative situations which then was mentioned and are proved to be "inconclusive and unsatisfactory"--may I not blame neither myself for the feeling of rancor I sense to have every time I see my Speculative Portfolio? (Most purchases based on TA) nor just my plain ardent behavior when certain point in the line graph was touched by my Speculative Stock and immediately take the purchase/sell order?
Regardless of any reason which I may be able to conclude so as to have my Speculative Portfolio to have betide this snag occurrence in my little investment experience. I must now seek recourse from no one else but from where I first got into understanding how Value investing works and that it (Value Invested Portfolio) may ameliorate what chagrin its contrary had achieved.
There was an interesting prose about having the shift of attention and businesses towards the Wall Street similar to a Gold Rush event. This is surprisingly still be applicable even in a distance of half way around the world and even decently surprising it was stated way back then (1934), most quintessential Filipino working class (like yours truly) would be or had shifted their renewed vigor to initially speculate and concoct up a charting technique that may provide him extensive return--then shortly after joining the game of the “big players” (e.g. Mutual Fund, Equity Fund, Global Investment Fund, etc)—Only to found out that they (and myself) were up against an irrepressible force of the STOCK MARKET's moody behavior itself.
Starting with at least 10% of my savings (after providing home health services as a PT), I was able to start up a small investment. On June 2011, I had purchase my first few shares, without plan, with a mining stock and the short history of my ‘investment’ adventure started.
Looking back during those early ‘trading’ days and until now, I may contently apply myself as one of his mentioned mishandled ‘investment trust’; breaking all of its (my) desired rules when probably during the short bull market years of early 1900’s (2011-2013) and may be applied now as was described by Benjamin Graham himself before (whereby I had to modify it to cater my own limits and were as follows):
From:
1. To buy in times of depression and low prices and to sell out in times of prosperity and high prices.
2. To diversify holdings in many fields and probably in many countries.
3. To discover and acquire undervalued individual securities as the result of comprehensive and expert statistical investigations.
To:
1. To buy in times of depression and low prices and to sell out in times of prosperity and high prices.
2. To diversify holdings in as much different types of industries as I can in the local bourse (Which I then realized that this only works in a Bull Market and that this is not considered 'DIVERSIFICATION'--sadly)
3. To discover and acquire undervalued individual securities as the result of comprehensive and expert statistical investigations (Which I am endeavoring to do so…)
Now that the current local bourse (PSEI) is in its dismal -8.76% just in the span of this month from 6320.96 down to 5,767.13 (which bleeds my Speculative Portfolio to a shameful -17.00%) , it is no disguise that the 6,000 mark that I was talking about previously was just another hole that the sellers easily pierced through and now looking to a much ‘bounced-off’ ~5,700 as an initial support, and a possible secondary support at ~5,565 now marked and determined by a Fibonacci Retracement from the previous high and low from year 2011-2013. (Picture 1)
I guess the only way not to be deluge with this type of ‘bear’ event, whereby there are no uncertainties, and that all the papers led to articles of much about pessimism: “Fears over US Fed taper wipe out PSEi's year-to-date gains,”; “Are Philippine Stocks Heading for a Bust?”, all from respected and credible analysts, specially for the latter—is to use his idle time to try to learn from oneself the discipline in his respective limits and learn more about the documented and proven value-investing principles in the market as much as one can. With conclusion, this brings one to wonder when and where in the future will be an article be printed with something like, “Philippine Index Recovering/Reckoning to Full Blast Again!”
"This too shall pass.." (click for more information about the quote)
References/Sources:
1. "Citiseconline Quotes." Citiseconline.com.ph. December 14, 2013. <https://www.citiseconline.com.ph/Final2/quotes/STOCKINFO.asp>
2. Colombo, Jesse. "Are Philippine Stocks Heading For A Bust?" Forbes.com. December 14, 2013.<http://www.forbes.com/sites/jessecolombo/2013/12/12/are-philippine-stocks-heading-for-a-bust/?utm_source=followingdaily&utm_medium=email&utm_campaign=20131213>
3. "My Stock Query." Mystockquery.com. December 14, 2013. <http://mystockquery.com/>
"This too shall pass." Wikipedia.org. December 14, 2013. <http://en.wikipedia.org/wiki/This_too_shall_pass>
4. Graham, Benjamin and Dodd, David L. (1988). Security Analysis. United States of America: McGraw-Hill Companies, Inc.
5. Siegfred O. Alegado. "Fears over US Fed taper wipe out PSEi's year-to-date gains." Gmanetwork.com. December 14, 2013. <http://www.gmanetwork.com/news/story/339522/economy/business/fears-over-us-fed-taper-wipe-out-psei-s-year-to-date-gains>
1. "Citiseconline Quotes." Citiseconline.com.ph. December 14, 2013. <https://www.citiseconline.com.ph/Final2/quotes/STOCKINFO.asp>
2. Colombo, Jesse. "Are Philippine Stocks Heading For A Bust?" Forbes.com. December 14, 2013.<http://www.forbes.com/sites/jessecolombo/2013/12/12/are-philippine-stocks-heading-for-a-bust/?utm_source=followingdaily&utm_medium=email&utm_campaign=20131213>
3. "My Stock Query." Mystockquery.com. December 14, 2013. <http://mystockquery.com/>
"This too shall pass." Wikipedia.org. December 14, 2013. <http://en.wikipedia.org/wiki/This_too_shall_pass>
4. Graham, Benjamin and Dodd, David L. (1988). Security Analysis. United States of America: McGraw-Hill Companies, Inc.
5. Siegfred O. Alegado. "Fears over US Fed taper wipe out PSEi's year-to-date gains." Gmanetwork.com. December 14, 2013. <http://www.gmanetwork.com/news/story/339522/economy/business/fears-over-us-fed-taper-wipe-out-psei-s-year-to-date-gains>