Monday, February 27, 2017

Anchoring Bias Saved Me from QAF

It has been a while since I blogged about my thoughts, instead of the regular updates on my portfolio.

Today saw a surprising strong sell-down in QAF right from the market open. The decline was as much as -11% on the day's low and closed -9% at $1.415, compared to previous day's close at $1.555.with more than 4.5M shares changing hands:

I was invested in QAF in Dec 2013 at $0.825. If my memory serves me correct, I think 1 of my reasons for buying into QAF was a consistent dividend of 6% yield-on-cost from a sound non-Reits business. It went well with my income-investment, and so I bought it.

Since then, its fundamentals improved significantly over the 3 years+ invested and it was reflected in its share price, and turns out to be the top winner of my portfolio currently. What kept me from increasing my exposure to QAF was the low yield based into the current price, although I understand that the current price is supported by its improved fundamentals.

It happens that the market will have mood swings once in a while. At the current price, I will continue to hold and collect my dividends.

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