In my previous article
comparing the 3 local banks’ impressive Q4 2019 results and explaining why we should own the banks instead of letting banks own our money, I mentioned that
“I am biased towards accumulating more OCBC shares for long term at around their Net Asset Value price of $10.50 as they offer scrip dividend reinvestment consistently every year. This allows us to leverage on the power of compounding effect to grow our money till we retire as we can reinvest the dividends collected from OCBC shares back into OCBC at no cost.”
Today, I saw the share price of OCBC plummeted another 6.5% and decided to add on 1,300 shares to my existing holdings in SRS portfolio.
I could have waited for the bottoming of the markets which theoretically should take place at the climax of this whole Coronavirus crisis. The lowest prices of OCBC occurred before 2000, 2003 and 2009 at below $5. But I decided to not time the market and just catch the falling knife as this will be an ultra long