22 and 23 May 2013 are two dates that are important in investment learning. On 22 May, the price of Comfort Delgro was floating around $2.18 to $2.19. The price touched $2.20 on a very short time basis. This price has not been seen in the history of the company.
On 22 May 13, I had placed on queue to sell some shares of Comfort Delgro at $2.20. It was to me a reasonable price. Just 1 cents above the then current market price and in fact, it breached $2.20 briefly but unfortunately I was not at the front of queue and I failed to sell.
On 22 May 13 night (US day), chairman of Federal Reserve, Bernanke made a speech to US Congress and the Dow ended up in negative territory. Subsequently on the next day, Singapore STI came plunging and lost more than 1.7% (-61.20 points). Comfort Delgro was not to be spared, it plunged to $1.925. A drop of more than 13%. If I had successfully sold the share at $2.20, it would have been a good profit. However, timing and luck were not on my side.
Similarly, a week earlier, I had sold some shares of Singapore Post at $1.365. On 23 May 13, the price of SingPost was down to $1.35. Timing was on my side.
While investment guru Mr Warren Buffett had said that a sound investment strategy is independent of time and investor should look at long term strategy, it was inevitable that timing does play an important role in a profitable outcome.
It was reported in the news that Singapore Labour Foundation (SLF) was actively liquidating their inventory of Comfort Delgro shares that caused the plunge.
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