Saturday, August 22, 2009

How am I going to operate this blog?

 Dear Reader;

Please read this post carefully as it lays out the guidelines on which I am going to operate this blog. I also encourage you to keep it as one of your reference links since I will update it if I changed some of the guidelines.

1. Portfolio.

This is a long only portfolio aimed for long term investment. Most of the holdings have been held for more than three years now. I generally only sell a holding if it rises way above my calculated value or if I realize I make a mistake calculating. In very rare situations, I will sell a holding below my calculated value to buy something else much cheaper. I don't think I have done that so far, but I can't rule out the possibilities.

I will not use stop loss orders or some of the fancy trading techniques. And I think I have no clue on how to get rich quickly.

This is a real portfolio and all the transactions recorded are real. Besides some home equity and cash operating my household, this portfolio is all my investment. I will not make major investment outside this portfolio.

I believe three years is a very minimal test of performance. And any reasonable time frame should be at least a whole cycle including both bull and bear markets. I will use S&P 500 as my yard stick and I will only buy securities ordinary person can easily get in US.

While I want to update you as soon as possible, I can only try my best to post my transaction and the reason behind it within three weeks after the fact. For obvious reasons, I will not post my thinking on impending transactions. I am not a full time blogger. If this status ever change, I may shorten the lag time. Therefore, I don't encourage people to duplicate my portfolio. The most important thing is to show people how to fish not to fish for them.


Ads are provided by Google/Adsense. I would like to raise some money so that I can home my blog in an independent website one day. Because of the matching techniques Google is using, I am afraid  that some of the Ads will be contradicting the goals set up in my “Why I created this blog? “. And some of the Ads will be irrelevant. Once I have my own website, I can better control the Ads. But certainly I will remove any of the Ads are harmful to my readers using the Google filter. Please inform me any offending Ads and I will remove them within a week of reporting. I don't want my reader be ripped off by any of the Ads.

3.Other topics I may cover.

I will update my blog two or three times a week. Since I don't do a lot of transactions, I will post some topics relevant to my investment process, such as: the bad practice in the financial industry, where to learn good investments and which broker to use. I may also post some book reviews on the books I read. I am an active reader reading thirty or forty books a year. I will also tell you how to buy good investment books cheaply. If any of the readers want me to comment on something, as long as it is relevant and I have some knowledge on it, I will comment. Please email me.

That's all for now. Enjoy my blog!



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