My decision to sell off k1 Ventures is not because of the stock performance. In fact, it has always delivered consistent good corporate results because it is well managed by a team of experienced management. Since 2005, it has been giving out dividends and returning capital reductions to its investors. I stand corrected, but any investors who bought this stock in 2005 would have gotten back their principle capital. So the track record for k1 Ventures is there.
Cash is King
I could have kept the stock and collect dividends for the next few years. But recent events has made me decided to liquidate my CPF investments in k1 Ventures, which has substantial investments in the United States. The Korean tension, Boston explosion and the poison letter to President Obama gave me the “uh-oh” feeling that something nasty is brewing in America. k1 Ventures’ company and stock performance are closely related to the US recovery. For the past one year, the stock has risen about 77% (from $0.09 to $0.16). So any derail in US recovery may cause the price to tumble again.
Against this uncertain back-drop, I reckon it is better to liquidate my CPF investments and prepare to invest if there is an economic crisis. Many readers had asked me what is my investment portfolio and urged me to share my net worth in this blog. My answer is that besides this “investment” in k1 Ventures, I did not invest in any stocks, bonds, forex or precious metals. In the past few years, I had been building up my war chest and quietly waiting for a crisis to invest.
I hope the opportunity has arrived.