Bad Timing

"The greatest right in the world is the right to be wrong" - Harry Weinberger

What a shock to learn that Temasek Holdings sold all its Bank of America shares in the first three months of this year, resulting in estimated losses of between US$2.3 billion and US$4.6 billion. After all, outgoing CEO Ho Ching reiterated that the investment fund takes a long term view, at least 10 years and up to 50 years.

The Fear factor of BoA being nationalised which might cause the value of it's shares plunging to near zero might have the decision makers in Temasek biting the bullet. The selling of such a huge stake might have caused the share price of BoA to plunge from US$14.81 to a low of US$2.53 in just two months.

The timing of the purchase and sale of the investment is really bad despite Temasek having the brightest, well paid analysts and fund managers. What they lack is experience and foresight, they have stick out their hand to catch a falling knife.

There is a thin and blur line between gambling and investment, we hate to call ourselves gamblers because it's such a derogatory word to describe a profession, we would rather call ourselves investors/traders taking calculated risk.

We have liquidated all our positions and profit to date for the account is S$6,704.00