Reflections

Hmm the reason why I am writing this post is because about 2 weeks ago, after SATS posted a weak Q1 FY19/20 financial results which saw a 14.4% drop in profits, share price of SATS dropped by an incredible 10% from $5.40 to $4.91, to make things worse it fell even further to around the $4.80 region because of ex-dividend. All my stocks which were in the green suddenly came tumbling down, not only wiping out all my gains but also left me with a depreciation in value.

Obviously the first instinct in me was to panic and want to sell all my stocks so that I can cut all the losses. But LUCKILY I didn’t, instead I took a deeep breath and calm myself down.

What I am trying to say is I was so fixated by the fall in price I almost forgot the reason why I bought into those stocks in the first place. I bought those stocks because I believe that despite a financial crisis, the company will not fold but bounce back stronger and the depreciation in value of its share price is only temporary. Obviously I know that share prices can never always be on the uptrend, there will be times whereby it drops in its value but that does not mean I should be panicking. The only reason to ever divest your holdings in a company is if they consistently post weak financial results.

My investing horizon is about 5-8 years, rather than panic-selling my stocks when the price falls, I should take the chance to buy more. Afterall there is no right time in investing. I can’t possibly time the market and hold onto the cash waiting for the right price to come.

Hopefully this serves as a reminder to me that I should never lose sight of my investment objectives. While I did painstakingly earn all these money, I feel like I am at the age whereby I have to make mistakes and try to find out if things actually work or not.

If buying more into the company that I believe is good when share prices are low proves to be a mistake then it shall just be a costly mistake for me.

Side note, I really learnt that I should have taken profits when I can and never wait for the profits to be wiped out.

Thanks for reading, have a great day ahead:)