When we first decided to teach investing and charge for it, we were afraid to be viewed as “just another trainer who gets rich by teaching”. We do not expect you to trust us right from the start. We know we have to prove our worth. We know credibility is a very valuable asset which is slow to build but fast to lose.
We always believe in walking the talk. Before we even started teaching the CNAV strategy, we had the intention to create a fund so that we can track the performance and show results. Nonetheless, results take time to build and the earlier we start the better. And we have incorporated a business to hold the CNAV portfolio and subject it to audits when required.
In Aug 13, the Fund invested in the first CNAV stock. 9 months have passed and it is timely to review the results.
The market has been kind to us and I must say we are enjoying the better times. There will definitely be bad times where even good stocks get punished, and the portfolio goes into a drawdown. Although the STI has not really move much, many of the CNAV stocks had performed. Overall, the Fund has made 17.7% gain (inclusive of dividends and factored commissions) over the past 9 months. The individual stock performance in terms of percentage gain and loss is shown in the picture.
We are in the midst of building the portfolio and adding stocks gradually. More developments will be released subsequently.
We are not trying to compete with others by posting the results. And we are definitely NOT saying we have the best investment strategy. But we believe many higher returns strategies are more risky, and require a higher level of knowledge, experience and temperament to execute, and most retail investors would falter. On the other hand, we believe CNAV is more suitable for retail investors which allows them to be fairly correct with their stock selection. Investment works in the premise of roughly correct, and not precisely wrong. The best strategy is not the one with the highest return. The best strategy is the one which a person can apply and make money.
DISCLAIMER: The stocks mentioned in this article is for illustration only. Please do not treat the information as a recommendation to invest.
Hi
It’s great of you to post the fund holdings in public. This will serve as good evidence of your strategy. However, would like to suggest you also put the holdings of the fund and time where the stock was entered. That will give greater transparency. I believe in your whole list of stocks there are a handful that are undervalued according to your criteria, but what makes you choose these to put in the portfolio? Thanks.
What I can say it depends on a few things
– Amount of capital. If there is insufficient capital, we need to prioritise to the best ideas, and at the same time maintain a certain degree of diversification.
– To prioritise, we weigh qualitative analysis on things like alignment of management-shareholder interest, free float, quality of assets, level of debts etc.
Hi alvin, any chance of running another cnav workshop for noobs out there ?
Sure Ben. You can check out http://www.bigfatpurse.com/vimc/ for more details.