Outperforming the STI

About 1 month ago, I longed a basket of 11 stocks.  Read 1st Post and 2nd Post for the entries.  There was an update about 2 weeks ago Update.

I am underwater for 3 of my stocks.  The truth is that I am slightly disappointed.  I like the fundamentals of these 3 stocks.  If you have followed my calls, apologies.

• Tat Hong,     down -1.64%
• SuperGroup, down -1.70%
• GuoccoLand down -1.85%

However, I am, very pleased to report that as a portfolio of 11 stocks, I am up........9%.  Not bad for a month's holdings, huh?  This time round, my percentage of picking winning stocks is more than 70%. ( if I sell the entire portfolio today ;-)

In spite of the above positive results, what pleases me most is that the re-affirmation of the strategy of trading a portfolio.
For example, the outstanding performers are:

• Far East Orchard,   up 23.77%
• Ho Bee,                  up 19.77%
• Ezion,                     up 16.32%
• Bukit Sembawang, up 13%
• Keppel Land,         up 12%

Of course one can argue that if I had put all my money on Far East Orchard, I would be up 23.77% instead of 9%.  But this is on benefit of hindsight.  Do I know on 3rd Dec 2012, which stock would be going up?  What if I put all my money on Guoccoland?

As my own fund manager, one of my objectives is to outperform the STI..  Did this portfolio outperform the STI during this time period?  I am very pleased to report........a resounding YES.  The STI grew only 3.7% during this period.  But be warned that my portfolio is very heavily weighted towards the Real Estate Industry.

Diversification, or spreading the risk, is a good strategy  to increase expectancy of my trades.  In the long run, the probability of winning consistently is increased.