My portfolio.
1) Public Bank
2) YTL Power

Please pay full attention on your entry price. It matters the most. But if you decide to keep it as your plan 20 years, any sooner the better.

rayloo

what would be a 'fair' entry price for PBB?

$4.50

??? Lets wait long long....

Unless the share split

So the approach for this kind of counter is you dump your money there, let it be, no need close monitoring and wait for the dividend?

I tag PBB below RM6 as fair value. Obviously and notoriously our price is overpriced. Studies indicate that our banks book value is the highest among the region.

I take the risks that PBB distribute high dividends, so that I would reduce the cost significantly after few years.

thanks rayloo

Aye.
CIMB : 6
PUBLIC : 5
Maybeng -:4-5
HL, RHB : 3-4
Other small bank - all below 3

Is this sensible? Mean not wise to invest until they drop to stated price? Is that possible? Thank you
Pardon me for my innocence, as my portfolio inclines to finance sector

In fact it is the best to invest only when it comes to at least near to the intrinsic value, to reduce the risks. You see Warren Buffet does not spend until market declines to the price he wants, he waits like crocodiles under the river for many years patiently until its prey approaches. Before that we can accumulate our bullets. Make every shot counts.

I waited quite some time, then I entered PBB at RM7 at the begginning of the year. I think by next year the dividends received would make my entry price reseonable. For those with low diviidend yield I do not dare to use the strategy. I will insist to wait until the price meets my target price.

Just to share.

This post has been edited by rayloo: Oct 7 2009, 07:41 AM

What did WB do with his cash-on-hand during market hike? Say if you got 250K on-hand now but those high dividend counters are not close to theirs book value, where do you park your money? Where can I get the info of one's industry P/E for benchmarking purpose. Thank you

This is a very interesting idea, WB I am not sure, maybe under his pillow. But if I were you to have RM250K now, I would allocate some in ASM or ASW, REITs, and some to speculate property in cash term plus some in FD. Maybe other sifus have better idea to share ?

You can have those P/E from newspaper stock page.

Hmmm if not mistaken, at one time WB's company Berkshire had almost USD40 bil of cash which was not in use. His shareholders and analyst complained about it because they say it is not generating income. I believe his answer to them was something in the line of there wasn't anything good which was worth buying at current prices. And that he rather not buy anything than buying something he might regret later on.

warren buffet likes to park his money in bonds

I was told we should not park all our money into 1 industry lest something happens to it. I have RM 25k to put into my dividend counter portfolio (brand new and just started).

When parking money into dividend counters, what is the best amount to allocate per company? Thanks.

i wud rather concentrate on 1 n buy them in stages coz 25k is relatively small unless u talking abt 100k then diversify to 3 ctrs will be sufficient.

25k, I would divide into 3 company and enterning twice.

REIT, Finance, Others.

This post has been edited by ante5k: Oct 27 2009, 01:25 PM

Ok so 25k for 1 counter and build up to a 100k of 3 counters?

Showhand to one very high div counter. Then you can sleep for 10 years earning div, but have to keep up with the news la