@R - wishing you a happy CNY 2024 and your well deserved big ang pow
Ask you a question (especially with the big ang pow in mind), does it really matters whether LHT is a "value trap"?
What I meant is if LHT does not give out the big ang pow, then does it means that it is a "value trap"?
From my perspective (even thou I'm really contented with Ms Yap ang pow), I do not ruled out LHT being a "value trap".
What I meant is most of my counters (except MMH) were based on value investment (what else? MOS law), and the key risks (to me law) would be it's a value trap.
At least, that's what I reminded myself and pay attention to the business (more that it's stock price).
Other than the risk of value trap, I also reminded myself not to be too carried away.
Basically, there are 2 ways how a stocks can grow to become more than 20% of a person portfolio.
- The easy way and the hard way. In the easy way, there is nothing need to be done, the particular stocks automatically balloon above 20%.
- In the difficult way, as the stock price goes down and the perceived MOS increase, one keep buying on the way down - until a particular stock cross the 20% holding marks.
So, other than the risk of value trap, I reminded myself not to double down or buy on the way down. I mean, it's not that I'm not confident about the stock but rather I see this as a risk - a risk that I'm wrong.
Therefore, if I do not buy on the way down, the opposite would be something I do - buy on the way up.
It's actually quite simple.
Suppose, there is a (under-)value stocks and all the stars are aligned for a buy signal - I will initiate first purchase.
Then, something happens and the stock started to turn aka price goes/going up, then I will go for second purchase. Exactly opposite, if the price drop then I will not buy (even the MOS getting better and better).
Again, when the price continue to goes up, sometime I will buy more and sometime I just leave it alone and just monitor for the possibility of "value trap".
Of course, the question is what would you do when you realised that it is a "value trap"?
Gratitude and once again wishing you a peaceful and prosperous 2024!
Enjoy