Saturday, 26 April 2014

ASX Sharemarket Game (Part 2)

So, it's been 2 months into the game and my portfolio has had a 4% climb in 'value'. This is weaker than it was last month. This is because i hold quite a few tech-stocks and as we've seen over the last few weeks they have experienced sharp sell off in the US (Particularly NASDAQ stocks). While you can't completely attribute this to the fall in those stock such as Real Estate.com (REA) and Carsales (CRZ) it's definitely played a role. I've had to sell my bad performing stocks (largely because the time-period for this game is so short). My top performers G8 Education and TPG Telecom were also the stars of my portfolio last month. Given the opportunity, I'd probably buy more of TPG. I manged to climb in and purchase REA at a good price (but wouldn't buy this if the money was real as i think the stock is priced for perfection). I've fallen in ranks but i hope to regain them by the end of the game.

Given the short-time period of the game, I've had to dance a bit in and out of stocks (which is something i highly dislike). What I've learned and will be applying next time the game comes round is to have less diversification. Initially, i started with 9 stocks, which i believe is too much. Ideally, i would only want to hold one stock but this isn't allowed for the game (as they wish to encourage diversification). Next time, I'll only want to be holding around 5 stocks.

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