As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 24 September 2016

Singapore Blue Chips and STI ETF

Read? Position Sizing and Diversification

Quote from SMOL :

Here we go:
Is owning 30 stocks in a portfolio diversified enough?
Especially if 40-50% of that portfolio is geared towards financials?
And you have no clue what is Narrow Country Focus risk?
We have a little issue here. Think Grasshopper not PowerMaths?
As retail investors, many of us may not have that kind of war chest to chase ALL 30 blue chips in our local stock exchange, SGX; but we may have enough resources to chase after X or XX by position sizing. It will achieve reasonable diversification across industries and sectors.
Does Grasshopper mean Singapore's listed companies only do business in Singapore selling char kway teow, laksa, chicken rice arh?
OIC. He meant STI ETF and poked the preacher :-)

1 comment:

  1. CW,

    Once again you any old how put words in my mouth. I am poking the "bei kambings" who are too lazy to learn about Low Cost Passive Indexing from the right sources...

    A shepherd can say what he wants. That's not the problem. Even today in the 21st century, if a shepherd says the Earth is flat, there will be sheep who will believe that also. It's true because my shepherd says so!

    Just because STI ETF is "low cost" does not mean it would automatically fit the criteria for a low cost passive indexing strategy ;)

    Very simple test to show up the fallacy.

    If a Malaysian investor and an Indonesian investor are both convinced and interested to pursue a low cost passive indexing strategy using dollar cost averaging, would you recommend both of them to buy our STI ETF?

    Or would you recommend the Malaysian the KLCI ETF and the Indonesian the JSX ETF?

    Why not the S&P 500 ETF?

    Why not the Global Market Cap ETF?

    Or would you only recommend STI ETF to both of them since that's the only thing you familiar with?

    Ever wonder the father of low cost passive indexing John Bogle never recommended his US clients to buy our STI ETF?

    How about Warren Buffett?


    Sometimes a little knowledge can do more harm than no knowledge...


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