29 Nov 2020
Should I withdraw what I have invested around $7.5k in OCBC BCIP RSP which is currently $6k now if I withdraw, to invest using stashaway or syfe? What are your thoughts?
29 Nov 2020
Life Alchemist at School of Hard Knocks
Hmm, I looked through the 20 counters in OCBC BCIP RSP here. For me, I will cut my losses, because these are traditional businesses that would face further headwinds. In fact, I'm in a similar situation as you, but you're in a better position as your loss is only $1.5k.
When we look at whether the stock price will increase, the underlying foundation of the business is very important.
Are they facing increased competition?
How many competitors are eating their lunch?
Are their revenues dropping like bat sh*t?
Are their businesses global?
Do they have high capital expenditures / maintenance?
What is their business model - Do they take on a lot of debt, build, sell, then collect the money a few years down the road?
How is their cashflow?
No doubt they can withstand going into insolvency, but the thing is growth will be very slow and lagged. In my books, not growing much is riskier in this fast-changing world.
After I realised this, never mind the few thousands in losses, but I'm getting out.
I find the longer you drag this out, the longer this is a heavier opportunity cost because every month you DCA into these stocks that are lagging.
“Time is the friend of the wonderful business, the enemy of the mediocre.” — Warren Buffett.
I'm not sure about Stashaway/Syfe, if they can give you the returns you're looking for to cover the losses.
However for me, I did it before with individual stock - cycled my capital out of First Reit (before it dropped further) to a HK stock and the profits have already covered the losses.
Last time, I don't understand Sunk Fallacy Cost but now I do. Haha.
Investing is a journey and sometimes, we stumble and fall in order to learn. We won't know until we're experiencing it. It will take some time to digest all this. I took 3 years. Hope you don't have to take too long.
Hope this helps!
View 1 replies
07 Sep 2020
Bachelor of Business Management at Singapore Management University
If you are convinced that doing so will be a better optimal use of your capital, I don't see why not. I have cut losses on assets that isn't making me money, reinvesting it elsewhere and gaining back the loss I had on that particular loss-making asset. Looking back, that was the best move I made in awhile, considering that the asset as of now is still not doing well.
Sure, the pain is hard to swallow. But if you are able to discover another opportunity elsewhere, and you're convinced it will reap higher benefits, I would take the risk if I am in your shoes. It would be better if Stashaway/Syfe yields a higher beta compared to your current RSP. Meaning if overall market rises, Stashaway/Syfe will have a higher % change relative to your RSP.
I would say hold on till you at least break even!!! If not you’re losing 1.5k and never getting it b...
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