noob1001 asked 1 year ago
Hi coaches
I have heard from your recent sharing that you’re paring down your holdings in the US given the high valuation. May I know what do you look at when you plan to pare down your holdings? And typically when you pare down, what would the quantum be like as you also mention that we should all stay invested ?
1 Answers
Victor Chng Staff answered 1 year ago
Hi Noob1001,
During periods of high valuation, we focus on the valuations of the companies we own. We typically trim positions in stocks with valuations at +1 standard deviation (SD) or higher. The extent to which you trim depends on your strategy—some people trim 20% of their position, while others reduce more. We usually trim our initial capital during the first stage to ensure our base is covered.
During periods of high valuation, we focus on the valuations of the companies we own. We typically trim positions in stocks with valuations at +1 standard deviation (SD) or higher. The extent to which you trim depends on your strategy—some people trim 20% of their position, while others reduce more. We usually trim our initial capital during the first stage to ensure our base is covered.
noob1001
replied 1 year ago Thanks, Victor.
Would it be fair to say that if u have not made at least 100% from the stock, you would hold it on then? Because otherwise, it’s not possible for you to trim down your initial capital.
Victor ChngHi Noob1001,
Selling depends on valuation, not on reaching 100% gain. If the amount is too small, focus on the three-tranche selling strategy, which is the same approach used when buying a stock in three tranches.
noob1001
replied 1 year ago Thanks, Victor. And happy CNY
Welcome Noon1001, Happy CNY
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