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Equity portfolio strategy

Having read articles n exchanging experience, I believe the ‘solution’ is dependent on the following factors: 1. Age. The younger, the higher the risk appetite. 2. Capital base. Usually smaller at onset. Key is to start young and allow compounding to take effect. 3. Portfolio concentration vs diversification. There’s merits in both approach, depending on circumstances 4. Experience/knowledge. This can be built via reading, attending seminars, having investment groups, experimenting (trying out different tactics). As with younger age and smaller capital base, growth strategy should be preferred via: - Portfolio concentration (or limited stock holdings < 5) - Selecting small to mid cap companies - fulfilling blue ocean (like Amazon, Netflix, Alibaba in their early days), undervalued companies (Low P/NTA, Low PEG) etc. - In-depth studies in financials/prospects. While building the upside, be mindful of the downside risks.  This should be complemented with regular savin...
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Cash strategy

Rather than placing excess funds in Low interest account, it pays to make effort to pursue an active/passive cash strategy. Active strategy entails taking advantage of fresh fund promotion by rotating between banks for different period (2-3 months). Usual fresh fund promotion banks include Standard Chartered, Maybank, HSBC as well as UOB etc. Reading T&C is important as missing out on critical pre-condition may disqualify the deposit as fresh funds. Other active strategy include step up features (includes salary crediting, GIROs, card spendings) to build stickiness. DBS, UOB, Ocbc, HSBC all have such features. Passive strategy will include FD placement (searching for best rates) or placement in no-frills but higher interest account (CIMB). Cash strategy should be used to complement Investment strategy, I.e. by allowing us to earn higher interest income while awaiting investment opportunities at attractive valuation.
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