My Q1 2008 grades

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(Update Apr 2) Another news to make myself feel better, Chinese A share mutual funds declined 22% on average (read this Chinese news from Money-Courier). For comparison, Shanghai Composite index dropped about 34%, from 5261.56 to 3472.71 in the period. Note that index is not a good benchmark index because it’s skewed by some big cap stocks such as PetroChina (601857.SS).

(Original Apr 1) I was a decent student in elementary school, but from time to time I did get bad grade in an exam. The tough part for me was getting the report to my mom 🙁

The most miserable quarter
I’m sure lots of money managers will share my “most miserable” comments. My little portfolio shrinked about 25.23% from Dec 31, 2007 to March 31, 2008. Thanks to my bone headed bets on LFT and CROX stocks. For comparison: “In the first quarter of 2008, the Dow fell 7.55% and the S&P 500 index lost 9.92%. The Nasdaq was by far the worst performer among major U.S. equity benchmarks in the first three months of the year, dropping 14.07%.” (source: Business Week). To make myself feel slightly better, note GOOG and AAPL dropped about 33% and 25% in the same time period, respectively.

Lesson learned
1) In early Jan. I told my wife I need to unload LFT and CROX, so that I can sleep well in the night. I finanally was able to pull the trigger on them (LFT in Jan and CROX in Feb). A bit too late (CROX went from 75 to 19 in 3 months). But I’m glad I fufilled my words to my wife on this one (see below what if).

2) Trading cost: 7*45 = 315, not significant, but still sizable. Looked at other discount brokers such as TradeKing, IB but have not decided to switch. I will reduce trading times and increase the size of trading (make more sure bets), to reduce the trading cost.

Good things
Finally I was able to get back to In value I trust. I also got back to more solid stocks such as CHL, RIMM, SYT. And I was able to take some profits when I saw opportunity (don’t want be a pig).

What if I hold the all stocks in Dec 31 2007?
One thing for sure, it will be worse.

# shares share price (Mar. 31, 2008) subtotal
CROX 170 17.47 2,969.90
LFT 465 18.88 8,779.20
MR 236 28.94 6,829.84
Cash (see below) 1,511.29

Total 20,090.23, a 30.99% loss from Dec. 31, 2007 (see below).

My actual portfolio balance 21,768.87 (14,535.81 CHL MR RIMM SYT + 7,233.06 cash) as of Mar. 31, 2008; it was 29,114.01 (27,602.72 CROX LFT MR + 1,511.29 cash) as of Dec. 31, 2007.

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