Wednesday, November 19, 2008

What should i invest now? Get real confused by following the Gurus!

See below for the current portfolios of investing GURUs. Warren buffet, Boone Pickens and George Soros. Each is regarded as having been successful in investing and experienced ( read: old) enough, having been through market ups and downs to be considered credible in their stock selection. But alas, just look at their porfolio allocations and at first glance, be terribly confused .Warren Buffet seems to be underweight in Oil & Gas, but Boone and Soros is overweight in these. Warren Buffet seems to be overweight in consumer goods ( staples) but Boone and Soros are underweight. Look at the finance allocation and you will again see the difference. So, who should we follow? (of cos follow SGDividends portfolio lah...we overweight in utilities but the GURUs underweight in it!Shiok.....just joking, don't follow us pls, use your own brain..)
George Soro's Portfolio

Boone Picken's Portfolio

Warren Buffet's Portfolio
Actually when we think further, it kinda makes sense to us. The reason for the seemingly stark difference especially between Warren and the other 2 could be due to the time horizon and investment philosophy. Warren Buffet did say before he goes for value companies which just happen to appear more often in bad times. Boone and Pickens could be those who times the market and they are making a bet that Oil & Gas, will make a comeback which we think so too...its just basic economics of limited supply and increasing demand. And think of it, do you think OPEC will let the price fall too much? Come on.....
SGDividend's portfolio ( Singapore and foreign shares)
Anyway, above is our humble portfolio currently. We overweight on Telecommunications and Utilities due to its near recession proof demand due to them being considered necessities. Also they give stable dividends during this time. We keep some in Oil & Gas and basic materials ( include agriculture) as we believe it will rebound, not in the near term though....maybe in at least 1 years time...We are also moderstely overweight on Industrials especially those whose business have some sort of recurring income and are exposed to Infrastructure spending. We slightly underweight healthcare cos we don't think it has much scope for future expansion ( as compared with the other sectors)chiefly because its labour intensive. Property is obvious not the time to move in yet...lah. Wait for much more retrenchments. We are waiting for some banks to follow DBS!And then once banks have taken the lead...............................................
Anyway the morale of the above story is......have your own view as everyone is different!And that's why there is a market!
Important: The objective of the articles in this blog is to set you thinking about the company before you invest your hard-earned money. Do not invest solely based on this article. Unlike House or Instituitional Analysts who have to maintain relations with corporations due to investment banking relations, generating commissions,e.t.c, SGDividends say things as it is, factually. Unlike Analyst who have to be "uptight" and "cheem", we make it simplified and cheapskate. -The Vigilante Investor, SGDividends Team



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