When the RM 100,000 is fully invested, we should have about 30 stocks in the portfolio to reduce company specific risk. This is the number recommended by major finance literature which I personally agree to. In that sense, our each investment is in the block of about RM 3,000 per counter.
The first stock we will go into is Media Prima Bhd. We believe this is a Value stock with stable business model (TV and publishing). our main attraction is the indicative dividend yield of 7.1%. We will lock in 2 lots at the price of RM2.24 (Closing price on 17 Sep 14).
We will be showing our portfolio on regular basis to let you know how we perform! (please note that we do not take into transaction cost in this virtual portfolio)