My Reflection on 2023 Investments

I'm not one who likes to cry over spilled milk, though there have been a number of investment mistakes which I would hope to undo if I could go back in time.

Firstly and foremost is my misplaced trust in a cryptocurrency platform where I had deposited my fractional bitcoin to earn attractive interests, but it declared bankruptcy after suspending withdrawal over alleged mismanagement of creditors' funds and is now undergoing liquidation, where I would expect to suffer a significant haircut. Although it is only a fractional bitcoin, I would have made a handsome profit based on prevailing price had the crypto been held in my wallet. This is a clear example of being penny wise but pound foolish by failing to adhere to the advice "Not your keys, not your coins" in the unregulated world of cryptocurrencies. If time would reverse, I would certainly acquire my hardware wallet, rather than entrust my crypto to a lending platform. Haiz, if Tiger Brokers were to have offered cryptocurrencies on its trustworthy platform, I would not even have bothered to consider other alternative platforms ......

Secondly is my too-early averaging down on Chinese technology equities that have crumbled under regulatory crackdown, losing more than half of the market capitalizations since their heydays and collectively having more than a trillion vaporized. I had grossly underestimated the scale and impact of the regulatory measures during their earlier days, even though I believe that they were necessary to promote long-term competitiveness and sustainability of the Chinese technology sector. I'm still optimistic of the long-term prospects of the technology industry in China with its giant and growing market, though if I could go back in time, I would be more patient in my dollar-cost averaging, as what is cheap could become even cheaper and according to our legendary investor Warren Buffett, “The stock market is a device for transferring money from the impatient to the patient.”

My most regrettable miss in the first half of this year is $Tesla Motors(TSLA)$ . after I procrastinated too long and missed the boat when the stock plunged to as low as $102 early last year. With growing global awareness of climate change and increasing tightening of emissions control by countries plagued by pollution, I've been optimistic of the electric vehicle industry in general and especially of Tesla in specific, given its technology leadership, first-mover advantages and market dominance. At the same time, I was overly concerned over its rich valuation and was hoping for the stock price to fall below $100 before I would buy into the counter. However, the stock has proved to be resilient and recovery from its bottom has been fast and furious. Hence, if I could travel back in time, I would certainly have added Tesla shares to my portfolio.

I've a number of winners in my portfolio too, such as $NVIDIA Corp(NVDA)$ and Microsoft that have become my multibaggers even before their spectacular rises in stock prices last year over the hype on artificial intelligence that has taken over the technology world by storm, with almost every technology company jumping onto the AI bandwagon and launching its AI initiatives and applications to grab a piece of the cake. My most profitable stock has been Nvidia which has appreciated over 5 times in value and just last year joined the trillion-dollar club. I plan to continue holding onto this mega winner, as my holding period is forever for a fundamentally strong company. With increasing hype on artificial intelligence and Nvidia’s industry leadership and market dominance in AI chips, I believe that the stock will be able to grow from strength to strength and scale to greater heights over time and its best has yet to be. I'm glad that I've let the winners run last year and my only regret has been not adding more of these winners before the emergence of the AI frenzy.

I added $Meta Platforms, Inc.(META)$ last year after its CEO Mark Zuckerberg announced it to be the Year of Efficiency which has witnessed aggressive and relentless cost-cutting measures including massive and consecutive layoffs and restructuring by the social media platform. Meta Platforms’ share price had plummeted the year before after a series of disappointing earnings results on the heels of rising costs from its venture into metaverse and growing competition from the likes of TikTok. I'm glad that I've not given up hopes on Meta Platforms and that its reinvention and restructuring have rejuvenated the social media platform, helping the stock to regain its past glory. My only regret is not having put more money where my mouth is, despite my conviction on Met Platforms over its turnaround.

Once the rising stars and prides of our nation, $Sea Ltd(SE)$ and $Grab Holdings(GRAB)$ have dismayed with their continual prioritizations on expansion over profitability. With rising and intensifying competition, and not helped by prevailing slowdown in demands for e-commerce, online gaming and food delivery amidst lifting of COVID-19 restrictions, the duo will be under immense pressure to stay ahead of competition and remain relevant post pandemic. I should have taken profits during their heydays, but now I'm counting my losses. Hence, it is obvious what I would have done if I could turn back the clock.

This topic by Tiger Brokers is great, as it allows me to reflect on my mistakes, so that I could learn from them and become a better investor over time. With robust employment data and expectation that the Fed will start easing its monetary policy this year amidst signs of cooling inflation, hopefully the bull run last year will continue its momentum in 2024.

Nevertheless, as lingering fears of an impending recession continue to worry some investors as the prevailing interest rates remain restrictive and as lagging effects of the previous rate hikes fully propagate through the economy, I’m prepared to deploy my war chest should there be bloodshed in the market, as I remain optimistic of the long-term prospects of the broad market and am confident that it will prevail over any short-term recession and emerge stronger over time.

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