And the takeover news is in...
And the takeover news is in...
Company Update: First Service Holding
For subscribers who are sick of my musing on First Service Holding (FSH), this will be the last.
FSH and Sunac Services Holdings (SSH) had just did a joint announcement that SSH will be taking over FSH for HKD 2.617.
From my average price of HKD 0.914, the share price is up 135% since my entry in May 2021 and I had sold.
While this post may seems like a congratulatory pat on my own shoulder, this is not what it is meant to be.
I had not been cognisant on the risk originating from Evergrande impending collapse and had taken undue risk when I did not unwind FSH position (read my previous article on decision making).
Remember that I am the lucky patsy.
FSH has always been a small weight in my portfolio as this is a small and new company listed on the HKEX. It meant that even if FSH turn out to be zero, my overall portfolio will still remain alright.
Staying in the game is as important or more important than winning the game.
The psychological problem I am facing is that I do not know how my subscribers are sizing their position.
As I dwell occasionally into the micro-cap space in China, I do wonder if I am being responsible in sharing these illiquid and riskier investment ideas…
Maybe I should just stick to the bigger companies…
If you have an opinion on the above, do drop me a note in the comments.
Hi Wee Hiang, thanks for sharing the lessons learnt in such short journey investing in FSH and very glad that the wait is fruitful after much anxiety and uncertainty.
You're concerned about how your subscribers are sizing their position and I would like to share my take as a subscriber.
I am well aware that buying FSH was a bet since day one as you've repeatedly highlighted. Should I choose to invest, I always has a small weight in mind and limit myself to not more than than half your purchase amount, and I cap a max investment amount of between $5K to $15K.
In this way, if the trade turn sour, my portfolio will not be badly affected.
So far the betting odd has been quite good and I am comfortable to continue such venture.
Hope my feedback is helpful.