The STRIDE Blog

#5 Little Acorns: Timing is Everything in Value Investing

stride-5-little-acorns-timing-is-everything-in-value-investing-socialThe good news is my portfolio is up 3.69%. I am understandably happy about this. It signifies great progress since November, when I started out as a value investor.

The bad news is that the one that got away from me back then has got away from me again: I still don't own shares in Being Co Ltd and it is still on the up and up.

Amongst the stacks of stuff I'm learning about value investing is that, once you've bought shares that represent great value in a fundamentally sound business, you can pretty much relax.

Another is that the idiom, 'timing is everything,' applies just as much to effective portfolio management as it does to comedy, wine production and the perfect ski jump. Since I bought my initial fifteen holdings, my portfolio management 'style' has involved almost 100% watching. According to everything I've read, this is exactly as it should be.

But almost never acting doesn't mean never acting. The art of perfect timing lies in minimal activity at the optimal time. In my world that means when it's time to act, I need to learn how to make the right thing happen fast.

Being in the right place at the right time

Being Co - the one that got away once before - has escaped me again. It did, very briefly, dip below STRIDE's consider buy price. I started preparing to tell my broker to snap it up but dawdled and let other things take priority over sending that email. By the time everything was in place for the purchase the price had already risen again to above the consider buy, making it a hold. The window of opportunity had opened to me, and I let it slam in my face. Again.

This stock has already leapt up 40% in value since I bypassed it in November and it's still on the rise. I was annoyed the first time I missed a time to buy. Now it's happened a second time, I'm even more annoyed. Some might say 'third time lucky', but I don't believe in luck.

With the STRIDE timing engine in my toolbox, there really is no excuse to have missed this again. The fault here lies completely with me. I wasn't paying enough attention and didn't act quickly enough. But I like to think I learn from my mistakes and if this opportunity does arise again, I will be ready for it.

10 Week Summary

New additions to my portfolio are listed below. I am still working to my original slice model of $4000 per slice, aiming for 20 slices. However, I bought these through my NISA which carries much lower fees of 1%, allowing for a greater number of smaller slices.

Ikyu Corporation (TSE : 2450) provides online reservation services for hotels and restaurants in Japan. It also offers online shopping services. The company was founded in 1998 and is headquartered in Tokyo, Japan.

Credit Acceptance Corporation (NASDAQGS : CACC) provides automobile dealers financing programs, and related products and services that enable them to sell vehicles to consumers. It advances money to dealers in exchange for the right to service the underlying consumer loans; and buys the consumer loans from the dealers and keeps various amounts collected from the consumers. The company markets its products directly to a network of independent and franchised automobile dealers in the United States. Credit Acceptance Corporation was founded in 1972 and is headquartered in Southfield, Michigan.

Biggest gainer - C-QUADRAT : +35.74%

Biggest loser - Polar Capital Holdings: -18.26%

Current overall portfolio value: $108,226.28

Here's my portfolio update email from 16th January. Compare with my last update

- See more at: http://www.stride.ws/blog/little-acorns-portfolio-beats-market-by-5#sthash.YMD5Sblr.dpuf

Biggest gainer - C-QUADRAT : +35.74%

Biggest loser - Polar Capital Holdings: -18.26%

Current overall portfolio value: $108,226.28

Here's my portfolio update email from 16th January. Compare with my last update

- See more at: http://www.stride.ws/blog/little-acorns-portfolio-beats-market-by-5#sthash.YMD5Sblr.dpuf

Biggest gainer - C-QUADRAT Investment AG: 39.14%

Biggest loser - SEAL Inc Bhd: -19.45%

Overall portfolio value: $109,195

Below is my latest update email. Compare this with my last post here

Biggest gainer - C-QUADRAT : +35.74%

Biggest loser - Polar Capital Holdings: -18.26%

Current overall portfolio value: $108,226.28

Here's my portfolio update email from 16th January. Compare with my last update

- See more at: http://www.stride.ws/blog/little-acorns-portfolio-beats-market-by-5#sthash.YMD5Sblr.dpuf

LA_email_30.01.15

Topics: Portfolio Management, Little Acorns Portfolio

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