Stock prices of DBS, OCBC and UOB have been rocketing higher!
How do I feel?
I have mixed feelings, really.
I would like to add to my investments in all three banks but not as their stock prices make new highs.
What am I doing?
Just waiting.
I will simply do nothing and collect dividends.
Filling up my war chest and taking things easy.
Money in my war chest will go to buying more 6 months T-bills in the meantime.
I expect the T-bill cut-off yield tomorrow to be around 3.8% p.a.
This is a pretty decent return for something that is risk free and volatility free.
I don’t see any need to take on price risk especially when stock prices are going higher.
Uncle Warren Buffett said before that we should avoid doing this:
“Buying a stock merely because you think it’s going to increase in price.”
For my current investment in DBS, OCBC and UOB, my favorite holding period is forever.
Of course, if we are trading, then, we might sell some if we think prices are going back down.
More from dear Uncle Warren Buffett.
“Time is the friend of the wonderful company, the enemy of the mediocre.”
“Only buy something you’d be perfectly happy to hold if the market shuts down for ten years.”
This, perhaps, explains why I sold some of my investments in the past and increased my investment heavily in DBS, OCBC and UOB in recent years.
If AK can talk to himself, so can you!
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A simple strategy.
