I have spent some time over the last few days reviewing my twenty largest investments in individual equities. The list is set out below showing the percentage of our household's total net worth is invested in each of them. All but one of the top twenty has show positive returns (with a handful having more than doubled when dividends are taken into account). Only one is at or slightly below break even (Sinolink). Most have increased their dividends over the last few years.
At the moment, I cannot think of a reason to sell any of them (which I hope is not a case over overvaluing what I own) and am tempted to add to a few (CKI, Fairwood, Ping An and NWS in particular).
As far as watching the basket with the biggest assets are concerned, this basket looks very good to me. In some respects, I am fortunate in that almost all of my loss making investments involve much smaller amounts of money and I will be commencing my review of those later this week.
||% TOTAL ASSETS
Could I ask why you're tempted to purchase more NWS and Ping An?
Thanks for the question and apologies for the delay in replying.
NWS offers a good yield and is slowly transforming itself from a stogy infrastructure company into something which is heavily invested in the sorts of services which I expect to be in high demand in China going forward - water treatment and health care being two areas. It's the sort of stock that lets me sleep well at night.
Ping An was trading well below the brokers' target prices and is operating in an area which should continue to benefit from the rise of China's middle class. Since I posted, most brokers have confirmed their buy/overweight ratings (e.g. Morgan Stanley has a target of HK$81) but one broker (Nomura) has downgraded to underweight with a HK$56 target. The possible need for a capital raising to support continued growth may be weighing on the share price.
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